Weekly Market Report from 2nd September to 6th September 2024
The Indian stock market witness weakness in this week after 3 week gaining streak. Key indices Nifty and Sensex closed at 24,852 (fell by 1.17 pct) and 81,183 (fell by 1.24 pct). Weakness in global markets forced Indian markets to trade lower. BSE Mcap stood at Rs. 460 trillion and NSE Mcap stood at 456.82 trillion.Globally investors were worried ahead U.S. jobs report that could influence the magnitude and pace of the Federal Reserve’s interest rate cuts.Indices Movement in weekly basisThe Bombay Stock Exchange (BSE) Sensex tumbled 1.43 pct on to 81,183 during the week ended September 06, 2024. Nifty also ended red, fell by 1.52 pct to 24,852. Nifty Smallcap 100 plummeted by by 0.16 pct to 19,276, Nifty Midcap 100 fell by 1.32 pct to 58,501, Nifty Bank closed down by 1.51 pct to 50,576. On sectoral basis the NIFTY Consumer Durable, and FMCG, jumped by 0.53 pct and 0.18 while other sectorial indices ended red. Nifty PSU Banks, PSE, Energy, OilGas, Metal fell by 4.73 pct, 3.81 pct, 3.53 pct, 3.21 pct and 2.60 pct respectively.FII Flows during the Week Foreign Institutional Investors (FIIs) were net buyers in the equity segment this week, with gross purchases of Rs. 1623.52 bn and gross sale of Rs. 1513.70 bn, leading to a net inflow of Rs. 109.81 bn. In the debt segment, FIIs were net buyers, buying Rs. 138.17 bn and selling Rs. 61.95 bn, resulting in a net inflow of Rs. 76.22 bn.CommoditiesGold – On Friday, gold futures ended higher largely due to fear over global recession, lingering Middle East tensions and Fed interest rate cut uncertainties. Gold futures for October delivery grew 0.13 pct, to Rs. 72,014 on the MXC. Gold futures for December delivery grew 0.19 pct, to Rs. 71,917Crude – Crude oil prices rose after a report stating that OPEC postponed plans to boost production next month. Prices of crude oil futures for September delivery inches up by 0.53 pct, to end at Rs. 5,841 on MCX. Prices of crude oil futures for October delivery grew up by 0.4 pct, to end at Rs. 5,807 on MCX.Top Gainers and Losers this week (NSE F&O stocks)Stock NameClosedGainersSBI Cards800.8510.71%Gujarat Gas667.009.89%ICICI Lombard2261.705.60%J.K. Cement4697.955.48%Hero Motocorp5743.755.29%Stock Name Closed LosersVodafone Idea13.3514.64%BHEL263.809.21%Dixon Tech12063.88.41%Indus Tower423.107.72%Canara Bank103.387.31%Outlook for coming weakWhat will be eyeing upcoming week is an India IPP and CPI, due on August 12th. GST Council will meet on September 9, in New Delhi to present a roadmap for the compensation cess. At the global level, investors are looking to US, consumer inflation expectations on September 09, Inflation rate on September 11, Initial Jobless Claims on September 12.NewsIndia’s HSBC manufacturing PMI for the month of August came at 57.5 which was below July level of 58.1, however it is above long-term average of 54, indicating a substantial improvement in operating conditions. Business outlook for the year ahead moderated slightly in August, driven by competitive pressures and inflation concerns.China’s manufacturing PMI fell to 49.1 in August from 49.4 in July as per NBS. Factory activity fell for the 4th consecutive month, as production fell after rising in the previous five months (49.8 vs. 50.1). Furthermore, new orders (48.9 vs. 49.3 in July), foreign sales (48.7 vs. 48.5), and purchasing levels (47.8 vs. 48.8) all fell for the 4th straight month.US S&P Manufacturing PMI came 47.9 in August, down from 49.6 in July as sales continued to fall amid increasing reports of demand weakness. The latest reading was the lowest since last December and shows a 2 consecutive month of deteriorating manufacturing sector conditions. While US ISM manufacturing PMI came at 47.2 in August, higher from 46.8 in June but below expectation of 47.5. The result extended the weak momentum for manufacturing in the US economy, underscoring the impact of elevated interest rates by the Federal Reserve in the sector.DAC approves 10 capital acquisition proposals worth Rs 1.45 trillion for Procurement of Future Ready Combat Vehicles, Air Defence Fire Control Radars, Dornier-228 aircraft, Next Generation Fast Patrol & Offshore Patrol Vessels to enhance defence preparedness. Of the total cost of AoNs, 99 pct is from indigenous sources under Buy (Indian) and Buy (lndian-Indigenously Designed Developed and Manufactured) categories.The Ministry of Coal has issued allocation orders for 3 coal minestoNLC India Limited, Gujarat Mineral Development Corporation Limited and TANGEDCO respectively. Of these three coal mines, one is fully explored coal mine and two are partially explored coal mines. These mines are expected to generate an annual revenue of ~Rs. 29.91 bn calculated on the basis of PRC and will attract Capital Investment of ~Rs. 45 bn.The ministry of Steel has kept target of 500 mn tonnes domestic steel production target by 2034. The ministry is expecting industry to find new and better ways towards low emission, high productivity and high quality to make India an irresistible steel manufacturer in the world. As per reports, India’s crude steel production stood at 144.30 mn tonnes in 2023-24. The 500 mn tonnes of target is ~3x of the current production.Hindustan Aeronautics Limited (HAL) has received order from cabinet committee for procurement of 240 aero-engines (AL-31FP) for Su-30 MKI aircraft of the Indian Air Force (IAF) under Buy (Indian) category from HAL at a cost of over Rs 260 bn inclusive of all taxes and duties. The delivery of these aero-engines would start after one year and complete over a period of eight years.Techno Electric & Engineering Company Limited (TEECL) has been awarded a contract to Design, Build, Finance, Operate, and Transfer Edge Data Centers (EDCs) by RailTel Corporation of India Ltd. in 102 cities across India over a twenty-year concession period extendable by 5 years. TEECL plays a vital role in shaping India’s digital infrastructure through its data center vertical. Techno Data Center has a vision to have the largest footprint of data centers across India by FY2030 with an investment of USD 1 bn.Reliance Industries Limited approved 1:1 bonus share. This action will lead to an increase in the authorized share capital of the company from Rs 150 mn to Rs 500 mn. RIL has given bonus shares 5 times, beginning with a 3:5 bonus issue in 1980 and 6:10 in 1983. The last three bonus issues in 1997, 2009, and 2017 have been in the ratio of 1:1.Lemon Tree Hotels announced its latest signing – Lemon Tree Hotel, Gir, Gujarat. The property is expected to open in FY2030. Lemon Tree Hotel, Gir, Gujarat will feature 80 well-appointed rooms, a restaurant, a banquet hall, a meeting room, a swimming pool and a spa. This new venture solidifies company’s portfolio of hotels which delivers exceptional hospitality to wildlife enthusiasts. TCS has expanded its partnership with Google Cloud to offer two new cybersecurity solutions for customers. This partnership aims to strengthen cyber resilience for enterprises across industries and empower them with domain-focused innovation with cutting edge technologies from TCS and Google Cloud.EasyMyTrip announces venturing into the electric bus manufacturing market through its new subsidiary, Easy Green Mobility. Easy Green Mobility will manufacture EV buses, with YoloBus (another subsidiary of EaseMyTrip) serving as its operating arm. EaseMyTrip is investing Rs. 2 bn for extensive R&D, Product Development, and setting up Manufacturing Plant over the span of 2-3 years. The company is expecting 2000 buses capacity by and it will scale up to 5000 buses capacity by coming years.Wabag, wins mega order worth ~USD 317 mn (~SAR 1,190 mn / ~Rs. 27 bn) from the Saudi Water Authority (the SWA). WABAG’s impressive track record and technologically superior proposal were critical in winning this prestigious order towards EPCC of a 300 mn litre per Day (MLD) Mega Sea Water Reverse Osmosis (SWRO) Desalination Plant in Yanbu, Kingdom of Saudi Arabia. DreamFolks announces the launch of its newest service – highway dining for travellers. This service will be available at over 600 outlets along key highways across the country. As highway networks continue to grow and road travel gains popularity, DreamFolks extended its premium hospitality to ensure travellers enjoy exceptional dining at every stop along their journey. This new offering marks DreamFolks’ expansion beyond airports and railway stations to provide enhanced convenience for highway travellers.Auto NumbersAtul Auto August 2024 total sales (domestic + exports) grew by 8.58 pct YoY to 2,834 units against the 2,610 units sold in August 2023. 3W – ICE engine segment fell 8.70 pct YoY while other 2 segments grew by 61.2 pct YoY and 362.5 pct YoY.Mahindra Auto sells 43,277 SUVs, 16 pct growth YoY and total volumes of 76,755 in August 2024. In the Utility Vehicles segment, Mahindra sold 43,277 vehicles in the domestic market, registering a growth of 16 pct and overall, 44,670 vehicles, including exports. The domestic sales for Commercial Vehicles stood at 21,092 units. Total exports of the company improved by 26 pct YoY. Mahindra’s total tractor (Domestic + exports) sales stood at 21917 units, up by 1 pct YoY against sales of 21,676 units in August 2023.Escorts Kubota Limited Agri Machinery Business Division in August 2024 sold 5,614 tractors as against 5,593 tractors sold in August 2023 showing a slightly uptick of 0.4 pct YoY. Domestic tractor sales in August 2024 were at 5,205 tractors up by 0.1 pct YoY against 5,198 tractors sold in August 2023. Export tractor sales in August 2024 were at 409 as against 395 tractors sold in August 2023. Escorts Kubota Limited Construction Equipment Business Division in August 2024 sold 355 machines, declined by 31.7 pct YoY as against 520 machines sold in August 2023. Ashok Leyland’s domestic sales (including M&HCV Trucks, M&CV Bus, LCV) declined by 8 pct YoY to 13,347 units in August 2024 against the sales of 14,545 units sold in August 2023. Also, the total Domestic + Export sales of the company declined by 7 pct YoY to 14,463 in August 2024 against the 15,576 unit sold in August 2023.Bajaj Auto Ltd’s overall total sales for the month of August 2024 stood at 3,97,804 units, showing growth of 16 pct YoY, including exports. In 2W Vehicles segment, the company sold total 3,35,178 units, registering a growth of 18 pct YoY and in commercial vehicle segment company sold total 62,626 units up by 11 pct YoY.Disclaimer: The views expressed in the blog are purely based on our research and personal opinion. Although we do not condone misinformation, we do not intend to be regarded as a source of advice or guarantee. Kindly consult an expert before making any decision based on the insights we have provided.
