Stock Market Live: GIFT Nifty Trades Below 25,200; Zydus Life, Cupid, Adani Enterprises, Yatra In Focus

Citi On Bajaj Finance

• Maintains 'buy'; target Rs 8,257 with 13% upside

• Bajaj Finance to hold 88.7% in Bajaj Housing which contributes 8% to market cap

• Earnings growth of 22-25% expected being 12-13% of consol earnings and 16-18% of consol Net Worth

• Valued at 3.3 times FY25E PBV and 2.9x FY26E PBV pre-issue

• Basis a 30% discount, BAF trades at 5.4 times / 4.3 times FY25/26E standalone Net Worth

Morgan Stanley on India Chemicals

• Upgrades PI Industries to Equal-weight with revised target of Rs 4,300/share; downside 6%

• Strong volume growth and new product traction in PI

• Downgrades Aarti to Under weight; downside 9%

• Pricing pressures in Aarti Industries may limit earnings

• Rated Over weight to Deepak nitrite; upside potential 13%

• Revised target price of Deepak nitrite reflects upside risk with clarity on new investments

IPO Update – Kross

• Sets IPO price band at Rs 228-240/share

• Bid for issue to open on September 9 & close on September 11

Source: Company Statement

Dalmia Bharat Arm To Acquire Stake In Truere Surya

Arm Dalmia Cement in pact to acquire 26% stake in Truere Surya for Rs 44.8 crore

Source: Exchange Filing

Havells India Starts Commercial Production At Unit

• Starts commercial production of cable at Karnataka facility

• To expand cable manufacturing capacity in Karnataka facility to 4.6 lakh kms/year

• To expand capacity in Karnataka facility with additional investment of around Rs 450 crore

Source: Exchange Filing

Sonata Software Arm Completes Merger With Encore Software

• Merger of Encore Software Services with Sonata Software North America completed

• Encore Software Services is an arm of Sonata Software North America

• Sonata Software North America is an arm of company

Source: Exchange Filing

Morgan Stanley On India Equity

• There are many sources of correction for this strong bull market

• This does not mean that the bull market is over,

• Thinks India is only past the halfway mark

• But a correction will test money in the market

• Valuation, on its own, is never a reason for stocks to correct

• But elevated valuations become a catalyst when other fundamental and sentiment events unfold.

Two fundamental events to keep an eye are:

• A potential growth slowdown as for the first time since COVID-19

• State-level profligacy causes the mix of state-level spending to shift adversely towards redistribution with concomitant risks to inflation

Two technical risks to monitor are:

• Possibility that the retail bid on equities shifts to the primary market as equity issuances surge

• Even though India remains poorly correlated to global markets, such correlations can change quickly if there is a sharp sell-off outside India, especially in the US.

Global Cues

• U.S. Dollar Index at 101.7

• U.S. 10-year bond yield at 3.83%

• Brent crude 0.62% lower at $73.29 per barrel

• Nymex crude 0.74% higher at $69.82 per barrel

• GIFT Nifty was 0.30% lower at 25,171.00 as of 07:51 a.m.

• Bitcoin was down 2.65% at $56,671.09

F&O Cues

• Nifty September futures up by 0.02% to 25,354.55 at a premium of 74.7 points.

• Nifty September futures open interest up by 7.23%.

• Nifty Bank September futures up by 0.38% to 51,834.1 at a premium of 145 points.

• Nifty Bank September futures open interest up by 0.06%.

• Nifty Options Sept. 5 Expiry: Maximum call open interest at 26,000 and maximum put open interest at 25,000.

• Bank Nifty Options Sept. 4 Expiry: Maximum call open interest at 53,000 and maximum put open interest at 51,000.

• Securities in ban period: Aditya Birla Fashion And Retail, Balrampur Chini Mills, Hindustan Copper.

Trading Tweaks

• Ex/Record Dividend: Hikal, Parag Milk Foods.

• Ex/Record Buyback: Transport Corporation Of India.

• Ex Dividend: MAS Financial Services, Prince Pipes and Fittings.

Bulk Deals

• AU Small Finance Bank: Westbridge AIF I sold 108.95 lakh shares (1.46%) at Rs 676.06 apiece.

• Signature Global: DKL Broking & Infra Llp sold 23 lakh shares (1.63%) at Rs 1444.27 apiece and Credible Nivesh Limited sold 17 lakh shares (1.2%) at Rs 1432.2 apiece.

• Exicom Tele Systems: Rare Enterprise sold 15.85 lakh shares (1.31%) at Rs 348.6 apiece.

• Orient Cement: Parth Infin Brokers Pvt Ltd bought 13.47 lakh shares (0.65%) at Rs 307.15 apiece.

• Goldiam International: Rashesh Bhansali sold 10 lakh shares (0.91%) at Rs 340 apiece.

• Rama Steel Tubes: SKSE Securities Ltd bought 141.12 lakh shares (0.9%) at Rs 10.51 apiece.

• Matrimony.Com: NK Securities Research Private Limited bought 1.12 lakh shares (0.5%) at Rs 820.68 apiece.

Block Deals

• Cyient DLM: Citigroup Global Markets Mauritius Pvt Ltd bought 2.59 lakh shares (0.32%), while Morgan Stanley Asia (Singapore) Pte. – Odi sold 2.59 lakh shares (0.32%) at Rs 732.35 apiece.

• KPI Green Energy: Citigroup Global Markets Mauritius Pvt Ltd bought 1.57 lakh shares (0.26%), while Morgan Stanley Asia (Singapore) Pte. – Odi sold 1.57 lakh shares (0.26%) at Rs 886.6 apiece.

• RBL Bank: Citigroup Global Markets Mauritius Pvt Ltd bought 9.28 lakh shares (0.15%), while Morgan Stanley Asia (Singapore) Pte. – Odi sold 9.28 lakh shares (0.15%) at Rs 227.79 apiece.

• Sula Vineyards: Citigroup Global Markets Mauritius Pvt Ltd bought 2.28 lakh shares (0.27%), while Morgan Stanley Asia (Singapore) Pte. – Odi sold 2.28 lakh shares (0.27%) at Rs 487.9 apiece.

• Tourism Finance Corp: Connecor Investment Enterprise Limited . sold 11 lakh shares (1.18%), while Legends Global Opportunities (Singapore) Pte. Ltd. bought 11 lakh shares (1.18%) at Rs 178.4 apiece.

• Medi Assist Health Services: Aditya Birla Sun Life Mutual Fund bought 13.11 lakh shares (1.86%), while Bessemer India Capital Holdings Ii Limited sold 94.9 lakh shares (13.49%) at Rs 611.7 apiece. Goldman Sachs Funds – Goldman Sachs India Equity Portfolio bought 11.55 lakh shares (1.64%) and HDFC Mutual Fund bought 31.06 lakh shares (4.41%) at Rs 611.7 apiece. ICICI Prudential Mutual Fund bought 8.2 lakh shares (1.16%) at Rs 611.7 apiece and Novo Holdings A/s Sold 5 lakh shares (0.71%) at Rs 611.7.

• Mediolanum Best Brands: Mediolanum India Opportunities bought 0.79 lakh shares (0.11%), Smallcap World Fund Inc bought 20.59 lakh shares (2.92%), and Societe Generale bought 1.63 lakh shares (0.23%) at Rs 611.7 apiece. On the other hand, Sundaram Mutual Fund bought 1.63 lakh shares (0.23%) at Rs 611.7 apiece.

Two Holding Companies Sell Stake Worth Rs 611.10 Crore In Medi Assist Healthcare

Listing

ECOS (India) Mobility & Hospitality: Shares of the company will be listed on National Stock Exchange and BSE on Sept. 4. The public issue was subscribed to 64.26 times, with QIB portion subscribed 136.85 times), NII portion 71.23 times and retail portion 19.79 times.

IPO Offering

• Gala Precision Engineering: The IPO has been subscribed 52.21 times on the second day. The bids were led by non-institutional investors (132.93 times), employee reserved (117.89 times), retail investors (44.21 times) and institutional investors (5.06 times).

• Baazar Style Retail: The public issue was subscribed 40.66 times on day three. The bids were led by institutional investors (81.83 times), non-institutional investors (59.43 times), employee reserved (35.36 times) and retail investors (9.12 times).

Stocks to Watch

• Cupid: The company is looking to expand B2C pie substantially moving forward. It is on a target to reach 1 lakh touch points by the end of 2024. The company is also planning to partner with Blinkit and Zepto for better e-commerce presence. It also plans to launch almond hair oil in four SKUs among other products this month.

• Sarda Energy and Minerals: The amalgamation of SKS Power generation with Sarda Energy and Minerals was completed with effect from Sept. 3. The company also added that with effect from Sept. 1, the authorised share capital increased to Rs 2,555 crore.

• Route Mobile: The company received an order from the Office of Assistant Commissioner of State Tax Maharashtra for GST demand amounting to Rs 5.34 crore. This includes GST of Rs 3.22 crore along with interest of Rs 1.79 crore and a penalty of Rs 32.3 lakh pertaining to input on IPO/QIP expenses.

• GIC: The government will sell up to 6.8% stake via offer for sale between Sept. 4 and Sept. 5. The government will sell a 3.4% stake via a base offer, with an oversubscription offer for 3.4%. The floor price has been set at Rs 395 per share.

• Zydus Lifesciences: The company has provided clarification regarding the warning letter received from the US FDA. The letter points out concerns with the injectable manufacturing facility in Jarod, Gujarat. It is currently addressing these concerns and taking necessary corrective and preventive measures as requested by the US FDA.

• Torrent Power: The company has entered into a fresh MoU with the Department of Water Resources, Government of Maharashtra, for the establishment of pumped storage projects with a total capacity of 5,600 MW instead of 5,700 MW.

• Yatra Online: The company is to acquire Globe Travels for Rs 128 crore.

• MOIL: In August, the company achieved its highest-ever production of 1.24 lakh tonnes. For the first five months of the current financial year, it produced 7.24 lakh tonnes, a 7% increase compared to last year. The company sold 5.92 lakh tonnes during this period, which is similar to last year despite tough market conditions and fluctuating international prices. Revenue from operations grew by about 11% from April to August 2024.

• AU Small Finance Bank: The bank has submitted an application to the Reserve Bank of India to seek approval for voluntary transition from a small finance bank to a universal bank.

• Cipla: M. K. Hamied has resigned from the position of vice chairman and non-executive director of the company with effect from the close of business hours on Oct. 29 due to age and health.

• NHPC: The company signed a MoU with the Maharashtra Department of Water Resources. The agreement includes setting up pumped storage projects and renewable energy projects with a total capacity of 7,350 MW at locations including Kengadi (1,550 MW), Savitri (2,250 MW), Kalu (1,150 MW), and Jalond (2,400 MW).

• Ashiana Housing: The company announced that by Sept. 1, 168 out of 280 units in Phase 4 of its project in Gurugram had been booked. These units, which cover 282,365 square feet, have a total sale value of Rs 403.5 crore. Phase 4 of the project includes a total saleable area of 495,000 square feet with 3 BHK units and is located in Sector 93, Gurugram, Haryana.

• Adani Enterprises: Adani Global Pte. Ltd., Singapore, which is a step-down subsidiary of the company, has set up a new wholly-owned subsidiary in Shanghai, China, to carry out the business of providing supply chain solutions and project management services.

• GlaxoSmithKline Pharmaceuticals: The company has received an income tax order from the Income Tax Department for issuing an income tax refund of Rs 222.23 crore.

• UPL: The company received a notice that its step-down subsidiary, Advanta Seeds Holdings UK, has acquired a company called Advanta Holdings (Thailand) Limited. Advanta Thailand will be a step-down subsidiary under the Advanta Seed structure, which is part of Advanta Enterprises Limited, India. The company owns an 86.67% stake in Advanta Enterprises Limited.

• Texmaco Rail: Texmaco has completed the acquisition of Jindal Rail Infrastructure Limited, strengthening its position in the wagons market and expanding its capabilities and product range. The final cash payment for the acquisition was Rs 614 crores, at a valuation of 8.1 times the financial year 2024 EV/Ebitda.

• Mangalore Chemicals & Fertilizers: BSE sent a letter to the company stating that it has returned the merger scheme with some observations from SEBI. The company is evaluating the next steps to be taken in respect of this letter.

• VST Industries: BSE and NSE have granted in principle approval for the issuance and proposed allotment of 15 crore equity shares as bonus shares. The bonus shares will be issued in a 10:1 ratio.

• GR Infraprojects: The company has signed a share purchase agreement with REC Power Development and Consultancy to acquire “Tumkur-II REZ Power Transmission” at Rs 6.72 crore, making it a wholly-owned subsidiary of the company. Additionally, the company has been selected as the bidder for a new project involving the establishment of a 400/220 kV pooling station and related infrastructure in Tumkur, Karnataka. As part of the project requirements, the company must purchase shares of Tumkur-II REZ Power Transmission.

Government To Sell Up To 6.8% Stake In GIC At Rs 395 Per Share

GIFT Nifty Trades Below 25,200

The GIFT Nifty was trading 0.34%, or 86 points lower at 25,160.00 as of 06:35 a.m.

Markets in Asia-Pacific region slumped on Wednesday morning, mirroring similar moves on Wall Street a day before, as weak US economic data stoked recession fears.

The Nikkei 225 was trading 1,399.23 points, or 3.62% lower at 37,287.08, and the S&P ASX 200 was trading 162.20 points, or 2.00% down at 7,941.00 as of 06:30 a.m.

Wall Street traders pulled back from risk after a rally that had brought the S&P 500 near its all-time highs. The equity benchmark experienced its steepest decline since the Aug. 5 market crash. A key index of chipmakers dropped 5%, driven by a sharp fall in Nvidia Corp.

On Tuesday, the S&P 500 and Nasdaq composite ended 2.12% and 3.26% lower, respectively. The Dow Jones Industrial Average settled 1.51% down.

The November contract of brent crude was trading 0.31% lower at $73.52 as of 06:33 a.m. The Bloomberg spot gold was trading 0.03% down at $2,492.26.

The Indian benchmark indices closed mixed on Tuesday as the NSE Nifty 50 ended flat and at an all-time high, while the S&P BSE Sensex snapped its 10-session gaining streak.

Nifty saw a marginal increase of 1.15 points to close at 25,279.85, and the Sensex was 4.4 points or 0.01%, down at 82,555.44.

Overseas investors remained net buyers of Indian equities for the third consecutive session on Monday. Foreign portfolio investors mopped up stocks worth Rs 1,735.5 crore and domestic institutional investors turned net buyers after one day of selling and bought equities worth Rs 356.4 crore, according to provisional data from the National Stock Exchange.

The Indian currency weakened by 5 paise to close at 83.97 against the US dollar.

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