Stock Recommendations, 24 August 2023: Asian equity futures pointed to a cautious opening. Investors will be focused Monday on Chinese interest rates and Beijing’s efforts to bolster the struggling economy, before attention shifts later in the week to a gathering of global central bankers at Jackson Hole, Wyoming.
Contracts for shares benchmarks in Hong Kong and Australia fell while those for Japan were marginally higher.
U.S. stocks gained some ground in the final minutes of Friday’s session in moves likely exacerbated by giant options expiration. But it wasn’t enough to prevent the S&P 500 ending unchanged and the Nasdaq 100 inching down. MSCI Inc.’s global equities benchmark notched its biggest weekly loss since the March meltdown of Silicon Valley Bank.
Meanwhile, Brent crude was trading below $85 a barrel and West Texas Intermediate was above the $81-mark. The yield on the 10-year U.S. bond was trading at 4.25% and Bitcoin was below 27,000-level.
At 5:19 a.m., the GIFT Nifty, an early indicator of the Nifty 50 Index’s performance in India was down onw point or 0.01% at 19,452.
India’s benchmark stock indices ended lower after a slight recovery on Friday as Reliance Industries Ltd. reversed losses to lead the indices after it announced Aug. 21 as the listing date of its financial arm. On a weekly basis, the headline indices dropped for the fourth week in a row, the longest stretch of weekly declines in over 16 months.
The Adani Group company stocks, on the other hand, gained as their total market capitalisation jumped to the highest in over six months intraday.
Overseas investors remained net sellers of Indian equities on Friday for the second session in a row. Foreign portfolio investors offloaded stocks worth Rs 267 crore, while domestic institutional investors turned net buyers and mopped up equities worth Rs 339.2 crore.
The local currency strengthened 4 paise to close at 83.11 against the U.S. dollar on Friday.
Stock Recommendations
KEC International: The company secured new orders of Rs 1,007 crore across various businesses. The deals include construction of a multispeciality hospital in India, 380 kV overhead transmission line in the Middle East and supply of cables in India and overseas.
Ashok Leyland: The company would be issuing a corporate guarantee of GBP 82.10 million or Rs 870 crore to cover the lender facilities of U.K. two subsidiaries— Optare and Switch Mobility.
United Spirits: The company signed an extra-neutral alcohol manufacturing contract with Capovitez for a tenure of three years. It covers provisions such as purchase of grain and sale of ENA, delivery, storage, quality in service, material’s price and payment, confidentiality, etc.
Tanla Platforms: The company’s pact with Vodafone Idea for provision of platform and firewall services will not continue beyond the term limit. This would have a revenue impact of Rs 17 crore and PAT impact of Rs 9 crore on a full-quarter basis post November 2023.
Spandana Sphoorty Financial: Rating agency ICRA has upgraded the ratings and revised the outlook for various instruments. Long-term fund based for Rs 2,105 crore has been upgraded to [ICRA] A from [ICRA]A-, outlook to stable from positive.
Listings
Jio Financial Services: Reliance Industries’ fintech business will list on the Indian exchanges. The special pre-open session for the demerger of RIL resulted in JFSL being ascribed a value of Rs 261.85 per share.
Bulk Deals
GMM Pfaudler: Pfaudler sold 61 lakh shares (13.5%) at Rs 1,352.1 apiece. Geranium Investments bought 37 lakh shares (8.2%), Atreides Investments BV bought 4.1 lakh shares (0.9%) and Infinity Partners bought 3.3 lakh shares (0.7%) at Rs 1,350 apiece.
Jaiprakash Associates: Prarthana Enterprises sold 1.6 crore shares (0.6%) and Jainam Share Consultants bought 1.6 crore shares (0.6%) at Rs 7.96 apiece.
Sterling and Wilson Renewable Energy: Khurshed Yazdi Daruvala sold 10 lakh shares (0.5%) at Rs 345.04 apiece.
Concord Biotech: Norges Bank bought nine lakh shares (0.9%) at Rs 900.05 apiece.
Zota Health Care: Prarthana Enterprises sold three lakh shares (1.2%) at Rs 465.55 apiece.
BF Utilities: Ved Prakash Agarwal bought 2.2 lakh shares (0.6%) at Rs 595.64 apiece.
Shriram Properties: Sammys Dreamland sold 10.2 lakh shares (0.6%) at Rs 73.46 apiece.
SJS Enterprises: Ashish Kacholia sold 1.8 lakh shares (0.6%) at Rs 640.01 apiece.
Insider Trades
Greaves Cotton: Promoter Karun Carpets bought 43,389 shares on Aug. 18.
Paisalo Digital: Promoters Equilibrated Venture Cflow, PRO Fitcch and PRI CAF bought 1.5 lakh shares each on Aug. 18.
GMM Pfaudler: Promoter Pfaudler sold 61 lakh shares on Aug. 18.
Advanced Enzyme Technologies: Promoter Advanced Vital Enzymes sold over 35,526 shares in two tranches between Aug. 16 and 17.
Star Cement: Promoter Laxmi Chamaria sold 21,018 shares between Aug. 14 and 16.
Dr. Lal PathLabs: Promoter Arvind Lal sold 68,329 shares between Aug. 16 and 17.
ADF Foods: Promoter Krish Bhavesh Thakkar sold 10,025 between Aug. 14 and 16.
Sobha: Promoter Puthan N C Menon released a pledge of 33 lakh shares on Aug. 17.
Shilpa Medicare: Promoters Dharmavati Bhutada and Keshav Bhutada released a pledge of 20 lakh and 15 lakh shares respectively on Aug. 11.
Jamna Auto Industries: Promoter Map Auto released a pledge of 65 lakh shares on Aug. 17.
Chambal Fertilisers and Chemicals: Promoter Simon India created a pledge of 85,000 shares on Aug. 14.
AGMs Today
360 One Wam, GE T&D India, HG Infra Engineering, Indo Count Industries, Motherson Sumi Wiring India, VST Industries, Timken India.
Who’s Meeting Whom
- Sheela Foam: To meet investors and analysts from Aug. 23 to Aug 25.
- Aegis Logistics: To meet analysts and investors on Aug. 24
Trading Tweaks
- Price Band Revised From 20% To 10%: Hindustan Oil Exploration.
- Ex-Date Dividend: Finolex Industries, Chambal Fertilizers & Chemicals, Jagsonpal Pharmaceuticals, Reliance Industries, ITD Cementation India, Transpek Industry.
- Ex-date Interim Dividend: Vascon Engineers.
- Ex-date AGM: Finolex Industries, ITD Cementation India, Britannia Industries, GE Power India.
- Record-date Dividend: Jagsonpal Pharmaceuticals, Reliance Industries.
- Record-date Interim Dividend: Vascon Engineers.
- Move Into Short-Term ASM Framework: Spacenet Enterprises India.
- Move Out Of Short-Term ASM Framework: Pix Transmissions, PTC Industries, Reliance Infrastructure, Vascon Engineers.
F&O Cues
- Nifty August futures ended at 19,316.00, a discount of 77.90 points.
- Nifty August futures fell 4.76%, with 10,564 shares in open interest.
- Nifty Bank August futures ended at 43,932.00, a discount of 115.40 points.
- Nifty Bank August futures fell 2.15% with 3,028 shares in open interest.
- Securities in the ban period: Indianbulls Housing Finance, Delta Corp, Chambal Fertilizers & Chemicals, Zee Entertainment Enterprises, Granules India, India Cements,Gujarat Narmada Valley Fertilizers and Chemicals, Hindustan Copper, Steel Authority of India, Punjab National Bank, Manappuram Finance.
