Daily Market Highlights JUL 12

5 Daily Market Highlights JUL 12

Previous Day Market

Nifty Closed At 15,689 Down By 38  Points

Sensex Closed At 52,386 Down By 182  Points

Tata Steel scaled another 4.5% on Friday after CARE Rating upgraded its long-term credit rating outlook for Tata Steel from Negative to Stable. The stock is already trading at a 52-week high level of Rs.1,247 per share. Some of the factors that went into this upgrade were improved performance in Q4, revival in steel demand, higher steel prices, cash stash generation and substantial deleveraging improving debt coverage indicators. Even the loss making European operations is expected to turn to operating profits shortly.

SBI MF will coordinate distribution of the fifth tranche of pay-outs to the unit holders of the 6 shuttered funds. This tranche of pay-out will be Rs.3,303 crore taking the total pay-out till date to Rs.21,080 crore. That is approximately 84% of the AUM of the fund on the date it was shut, almost 15 months ago. As the funds get distributed, proportionate units will also be extinguished. The entire activity started gaining momentum only after Supreme Court intervened and appointed SBI MF to monetize assets of the funds.

Ujjivan Small Finance Bank will initiate steps for amalgamation of its holding company, Ujjivan Financial Services with the bank. The decision came after RBI allowed SFBs to amalgamate on completion of 5 years of business. Since most holding companies are subjected to holding company discount, this move will be instrumental in improving the valuations of the group overall. Of course, this is subject to the approval of the RBI, based on regulatory and supervisory merit. Equitas SFB will also look to merge Equitas Holdings.

Godrej Properties will invest over $1 billion in next 2 years to acquire and develop new projects as part of its target to revive the sinews of growth. The company has highlighted in its latest annual report that it had emerged as India’s largest developer by value and volume of sales in tough times. In fiscal 2020-21, the company saw sales bookings grow by 14% to a record level of Rs.6,725 crore despite adverse impact of the COVID pandemic. Godrej overtook Macrotech which clocked sales value of Rs.6,000 crore in FY21.

The shareholders of Federal Bank approved the motion to re-appoint Shyam Srinivasan as the managing director and CEO of Federal Bank for another 3 years till September 2024. According to a statement put out by Federal Bank, even RBI has approved the decision. Under Shyam Srinivasan, Federal Bank adopted the 3-pronged “Simple, digital, contactless” strategy to drive growth and be in sync with the times. The shareholders at the AGM adopted the audited financial statements and approved 35% dividend for FY21.

Foreign portfolio investors or FPIs withdrew Rs.2,249 crore from Indian equities in the first 7 trading days of Jul-21. This could, of course, be attributed to profit booking by FPIs at peak levels of the markets. It may be recollected that in Jun-21, FPIs had infused $2.35 billion into Indian equities while the FPIs were net sellers in Taiwan and South Korea. It is also estimated that this sell-off in equities could be a result of FPIs keeping liquidity for big-ticket IPOs this month like Zomato, Aadhar Housing, Nuvoco Vistas Cement etc.

For the week ended 09 July, 6 out of the 10 most valuable companies on Nifty depleted value of Rs.92,147 crore. The big market cap losers for the week were TCS and Reliance Industries. Among the major value losers, TCS gave up Rs.43,575 crore, Reliance Industries Rs.35,501 crore, HUL, Rs.9,140 crore and Infosys Rs.1,982 crore. ICICI Bank and SBI also saw minor losses. Among gainers, HDFC Bank added Rs.11,689 crore, Bajaj Finance Rs.8,333 crore and HDFC Rs.3,910 crore. Sensex was down 98.48 points in the week.

It promised to be a data packed week as big data points like CPI inflation and WPI inflation for Jun-21, IIP growth for May-21 and Trade data for Jun-21 will be announced. In addition, the week will also see data on bank credit and deposits as well as the forex reserves for the previous week announced. Among other big triggers during the week, the Rs.9,375 crore Zomato IPO will open during the week while some big guns like Infosys, Wipro, HDFC AMC, LTTS, L&T Infotech, HDFC AMC and others will announce Q1 results.

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