Market Highlights: Sensex ends 240 pts lower snapping 11-day gain streak; IT, Metal tank; HDFC Bank, Airtel drag

India's benchmark stock indexes fell on Monday, taking a breather from a record-setting run, as investors digested economic developments in China and looked ahead to policy decisions from top central banks, including the U.S. Federal Reserve.

The Nifty 50 fell 60 pts to end at 20,133, while the Sensex lost 240 pts and closed at 67,600 with the latter snapping a 11-day winning streak.

Titan, Powergrid, M&M, and NTPC topped the charts as they gained more than 2.5%. Hindalco, HDFC Bank, Airtel and Infosys dragged and were among the biggest laggards.

PSU Bank index zoomed around 4% with Auto, Consumer Durable and FMCG also ending with decent gains. Realty, Media, Metal and IT shed the most.

World shares fell while the dollar firmed on Monday as growth concerns tested investors' mettle ahead of a week brimming with central bank meetings in countries including Norway, Sweden, Switzerland, Britain, the United States and Japan.

Tokyo markets were closed for national holiday. South Korean shares fell 1%, dragged down by heavyweight chipmakers on worries about a weak recovery in demand. The won strengthened, while the benchmark bond yield rose.

Chinese shares closed up amid signs of stabilisation in the world's second-largest economy, while property and technology stocks dragged the Hong Kong market.

China's blue-chip CSI 300 Index ended 0.5% higher, while the Shanghai Composite Index edged up 0.3%. Meanwhile, Hong Kong's Hang Seng Index and the Hang Seng China Enterprises Index declined 1.4% and 1.6%, respectively.

European shares fell following declines on Wall Street last week, as investors gear up for Federal Reserve’s rates decision.

UK's FTSE 100 slipped on Monday in choppy trading as investors awaited key central bank interest rate decisions this week, while shares of Mondi rose after the paper and packaging firm agreed to sell its largest plant in Russia.

Kody Technolab IPO: The initial public offering (IPO) of software development services company Kody Technolab Ltd is witnessing strong response from investors. The Kody Technolab IPO opened for subscription on September 15 and will close on September 20, 2023.

Kody Technolab provides software development services including staff augmentation, AR development and implementation, enterprise mobility, digital transformation, business analytics and intelligence, artificial intelligence robotics IT consulting, Internet of Things (IoT) services, and IT consulting services, among others to a diverse set of industries. (Read More)

Adroit Infotech shares have proven to be a lucrative investment for positional shareholders in recent months. Despite being a micro-cap stock with a market capitalization of approximately ₹60 crore, it has displayed significant upward momentum over the past month. Its share price has surged from around ₹20.60 to ₹35.35 per share, marking a remarkable increase of over 40% during this period.

This strong performance suggests that Adroit Infotech, a small-cap stock trading below ₹50, may still have further potential for growth. Investors and market participants will likely be keeping a close eye on its future performance and prospects.

The Centre on Monday approved a series of welfare measures for agents and employees of Life Insurance Corp. of India (LIC), such as increase in gratuity limit, eligibility for renewal commission, term insurance cover and a uniform rate of family pension.

The measures follow amendments to LIC (Agents) Regulations, 2017, that proposed enhancement of gratuity limit, and uniform rate of family pension among others.

The move will benefit more than 1.3 million agents, and over 100,000 regular employees, who play a pivotal role in the growth of LIC and deepening of insurance penetration in India, the finance ministry said in a statement. (Read More)

Shreyas Shipping & Logistics (SSL) made an announcement on Monday regarding the revision of the indicative share delisting price by its promoter.

Transworld Holdings Ltd (THL), the company's promoter, has expressed its intention to acquire SSL shares from investors at an increased indicative price of ₹375 per share, as stated by SSL in a press release.

Transworld Holdings had previously obtained in-principle approval for the proposed delisting of SSL from the Indian stock market exchanges BSE and NSE on September 7. (Read More)

Chinese stocks listed in Hong Kong began the week with losses as persistent concerns about the health of the property sector offset optimism spurred by signs of stabilization in some other parts of the economy.

The Hang Seng China Enterprises Index slid as much as 1.7% before paring some losses. On the mainland, the CSI 300 Index fell to its lowest level this year before trading up 0.4%. A gauge of real estate shares slumped more than 2%. Distressed Chinese developer Country Garden Holdings Co. faces two more tests Monday: an initial deadline to pay dollar bond interest and the end of creditor voting on its request to extend payment on a yuan note. (Bloomberg)

Master Components IPO: The initial public offering (IPO) of engineering components manufacturer Master Components Ltd opened for public subscription on Monday, September 18.

Master Components IPO is an SME IPO and a fixed price issue. The company plans to raise ₹15.43 crore from the maiden public offer that comprises a fresh issue of 7 lakh equity shares aggregating to ₹9.80 crore and an offer for sale (OFS) of 4.02 lakh equity shares aggregating to ₹5.63 crore.

Master Components IPO price band has been fixed at ₹140 per share. The face value of each share is ₹10 apiece. (Read More)

Samhi Hotels IPO subscription status: Samhi Hotels IPO has been subscribed 1.02 times on day 3, so far. Samhi Hotels IPO has opened for subscription on Thursday, September 14, and will close today (Monday, September 18).

Samhi IPO's retail investors portion was subscribed 83%, NII portion was subscribed 27%, and Qualified Institutional Buyers (QIB) portion was subscribed 1.47 times. (Read More)

Incred Equities views on SRF/ Chemicals: Reduce | TP: Rs1562

Going by present trend SRF is likely to do ₹10-11,EPS in Q2 FY24F

1. Current trends indicate that SRF is unlikely to do more than ₹10-11 EPS in Q2FY24F. There has been some recovery in HFC volumes, but it has been more than balanced by decline in R-410 A. Remember R-410A is mixture of R-32 and R-125

2. There has been decline in spreads of almost all products of SRF. A widespread cut in tire prices doesn’t bode well for the nylon tire cord business of SRF.

3. Please note that while consensus EPS has been cut from 80 to 70 for FY24F however it still needs to come down by at least 30-35%

European shares fell on Monday, following declines on Wall Street last week, as investors gear up for Federal Reserve’s rates decision.

The Stoxx 600 Index edged 0.4% lower as of 8:12 a.m. in London, with tech and consumer products stocks dropping the most. Societe Generale SA declined after the bank’s new strategic plan disappointed analysts, while Nordic Semiconductor slumped after the chipmaker reduced quarterly revenue and margin forecasts.

The main regional benchmark dips after recording the biggest weekly advance in two months. Beyond the nervousness about the Fed this week, gains are also being hit by renewed fears about the health of the Chinese property sector, which dented Chinese stocks in Hong Kong. (Bloomberg)

The subscription status of the Zaggle Prepaid Ocean Services IPO as of day 3 indicates that the IPO has been subscribed 1.18 times overall.

Here's the subscription status for different categories of investors:

Retail investors: Subscribed 3.48 times

Non-Institutional Investors (NII): Subscribed 1.76 times

Qualified Institutional Buyers (QIB): Subscribed 9%

The IPO opened for subscription on Thursday, September 14, and is set to close today. (Read More)

Dutch-listed technology investor Prosus NV and its South African parent Naspers said on Monday Bob van Dijk has stepped down as chief executive officer from both companies.

Van Dijk, who has led Naspers since 2014 and Prosus since 2019, has agreed to remain as a consultant until Sept. 30, 2024, the companies said in a statement.

Ervin Tu will assume the role of interim chief executive of both companies. (Read More)

Yatra Online IPO: The initial public offering (IPO) of Yatra Online which opened for subscription on September 15 has so far received lacklustre response from investors.

The ₹775.00 crore worth Yatra Online IPO will close on Wednesday, September 20. Yatra Online is India’s one of the largest corporate travel service providers and offers integrated travel solutions to corporate clients as well as direct consumers. (Read More)

Tata Steel's share price reached a fresh 52-week high during Monday's trading session. This surge was driven by the news of a joint agreement between Tata Steel and the UK government to invest in advanced Electric Arc Furnace steelmaking at the Port Talbot site. The total capital cost for this project is estimated at £1.25 billion, which includes a potential grant of up to £500 million from the UK government.

Tata Steel's stock price reached an intraday high of ₹134.85 and a low of ₹131.85. The trading day began with Tata Steel shares opening at ₹134.75 apiece on the BSE. (Read More)

Sameer Bhise views on Poonawalla Fincorp Company Update | Correction an opportunity to add: Company Update BUY INR 480 - 

Poonawalla Fincorp (PFL) has corrected over the past month (-9% vs +5% for NIFTY FIN SERVICES, +5% for NIFTY). We believe this is an opportunity to add exposure to the name given continued momentum on business and its strong profitability profile. We observe PFL’s digital lending app is already functional (can be downloaded for iOS and Android users) and should see incremental traction w.r.t to new originations. In our view, this should reduce the origination through fintech partnership mode meaningfully over the coming quarters. We expect 51% CAGR in AUM for PFL over FY23-25E. In addition, as the proceeds of the sale from Poonawalla Housing Finance accrue, it would be prudent from a risk management perspective that some part of such gains are utilized for creating future buffers against exigencies. This would impart comfort to future earnings sustainability in our view. Overall, given stability in mgmt. team led by Mr. Bhutada, we expect PFL to continue delivering on its stated medium-term objectives w.r.t to growth and profitability (EPS CAGR of 50% over FY23-25) and avg RoAs of 4.5% over this period. Maintain BUY with INR480 (valuing PFL at 24x FY25 P/E ad 3.0x FY25E P/B).

The share buyback program of Larsen & Toubro (L&T), the engineering and infrastructure conglomerate, has commenced today. Investors have the opportunity to offer their L&T shares for repurchase in this ₹10,000 crore worth buyback program, and the window for participation remains open until September 25.

L&T had previously disclosed that the buyback would be carried out through the tender offer method, which allows shareholders to tender their shares at a specified price.

The floor price for this share repurchase has been set at ₹3,200 per share, representing a more than 9% increase compared to the closing price on Friday. (Read More)

The Indian economy is developing very fast and the country is poised to become a leader in sustainable technologies, a senior official of American technology firm Honeywell has said.

India is an emerging economy, which provides an opportunity to directly build sustainable infrastructure, instead of building it using legacy technologies that are now being abandoned in places like the Europe in the United States, Honeywell, Corporate Chief Scientist, Sustainability Technologies, Gavin Towler told PTI.

"There are some parts of India, some regions in India now that actually have very high levels of renewable power, and very low levels of fossil fuel intensity. I think India is poised to become much more of a leader in sustainable technologies," Towler said on the sidelines of a company event. (PTI)

Indian power producer NTPC's mining arm will explore overseas sourcing of battery minerals such as lithium, cobalt and nickel, three sources told Reuters on Monday.

The South Asian country, among the world's top greenhouse gas emitters, has been pursuing pacts with other countries to secure key minerals in resource-rich countries such as Australia, Argentina and Chile. India aims to be a net zero emitter of greenhouse gases by 2070.

"We are keen to diversify into critical minerals, specifically lithium, nickel and cobalt," one of the sources in the company said. The sources did not specify which countries India will be talking to, to explore battery minerals sourcing.

The Indian government in July listed identified 30 minerals, including nickel, titanium, vanadium and tungsten as critical to drive its clean energy push. (Reuters)

In early trading on Monday, Bharat Electronics Ltd (BEL) witnessed a substantial increase in its share price, surging by over 6%. This surge was triggered by the company's announcement of receiving orders worth more than ₹3,000 crore. BEL shares soared by as much as 6.85%, reaching a high of ₹145.00 per share on the BSE.

Bharat Electronics secured a significant order amounting to ₹2,118.57 crore from Cochin Shipyard Limited. This order is for the supply of various equipment, including Sensors, Weapon equipment, Fire Control systems, and Communication equipment. These components will be utilized for six Next Generation Missile Vessels (NGMV), which are part of the anti-surface warfare corvettes class designed for the Indian Navy. (Read More)

Avdhut Bagkar, Derivatives & Technical Research, Stoxbox recommends 3 stocks with over 25% upside: 

LINDE INDIA (Linde India Ltd), Upside: 35%

While the index has surged over 70 per cent this year, the momentum still expected to continue in the in the forthcoming months. The “Ascending Triangle” breakout in the July of this year has again pushed the stock in the bullish territory. Subsequently, the stock scaled over ₹5,200, its immediate hurdle, further prompting fresh advance.

The overall trend is headed to ₹8,000-mark, as per the technical layout on the weekly and monthly chart. The support falls at ₹4,800 to ₹4,700 levels. We advise taking a positive strategy on the stock.

POLYCAB ( Polycab India Ltd), Upside: 30%

Post striking a new all-time high at ₹5,333-level, the stock managed to hold ground near ₹4,800 in the recent weakness, which is the breakout mark of the bullish rally. The stock succeeded to reverse around this corner, representing robust support and an accumulating posture that continues to embrace the positive trend.

The stock is heading in the direction of ₹6,300 and ₹7,500, with a price stop loss remaining at 3,450. We advocate accumulating around ₹5,100 and on a dip towards 4,600.

Finolex Industries Ltd (FINPIPE), Upside:25%

The broader outlook clearly validates the support of 200-SMA, presently set at ₹145-mark. The consolidation breakout from the range of ₹200 to ₹155 in early August has elicited a bullish outlook for the coming months.

Also, the positive crossover of 100-SMA with 50-SMA further negates any major drawdown, shows the daily chart. We recommend to buy at the CMP of 228 with a target price of ₹285-level.

Jupiter Lifeline listing: Shares of Jupiter Lifeline Hospitals Ltd listed on the bourses at a premium on Monday. On the NSE, Jupiter Lifeline share price today was listed at ₹973 per share, 32.38% higher than the issue price of ₹735, and on the BSE, Jupiter Lifeline share price was listed at ₹960 per share.

Jupiter Lifeline Hospital IPO opened for subscription on Wednesday, September 6, and closed on Friday, September 8. Jupiter Lifeline Hospital IPO was subscribed 63.72 times on day 3. Jupiter IPO was subscribed 87% on day 1, and the issue was subscribed 3.30 times on day 2. Jupiter Life Line IPO price band has been fixed at ₹695-735 per share. (Read More)

JSW Infrastructure Limited will launch its initial public offering (IPO) with a price band of ₹113 -119 per share which will open for bidding from 25-27 September, the company said on Monday.

The Sajjan Jindal-led port business is looking to raise ₹2,800 crore through the IPO and will be offering a fresh issue of equity shares as there will be no dilution of the promoter’s existing equity. According to the advertisement, Sajjan-Jindal and family trust hold the majority stake as the promoters. (Read More)

Sailesh Raj Bhan has become wary of the exuberance surrounding Indian stocks as a $790 billion rally since late March rambles on.

The chief investment officer at Nippon Life India Asset Management Ltd. says it’s increasingly difficult to find opportunities in the $3.8 trillion market, where benchmarks have just hit record highs. That’s after a focus on high-conviction bets at reasonable prices helped place three of his firm’s equity funds among this year’s 10 top-performing Indian mutual funds, the strongest showing among peers.

“You are in a market where if you think about a stock from an investment point of view, it rises 40% before you even decide to buy it,” Bhan told Bloomberg News in an interview at his Mumbai office. “That is clearly reflective of froth,” said Bhan, who oversees the equivalent of $17.4 billion in equity assets under management. (Bloomberg)

The Indian rupee opened 10 paise higher against the US dollar on Monday. The local unit opened at 83.09 a dollar as against Friday’s close of 83.19.

The US dollar was still near its six-month peak at 105.29 against a basket of major currencies.

The company said, “Vodafone Idea to be acquired by a US telecom giant Soon? Verizon, Amazon, or Starlink, in the race”, which is doing rounds in electronic and social media. e wish to submit that the said News Item is incorrect. The Company is not in any such discussion with any of the named parties.”

Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: The participation of large-cap bluechips across sectors has been giving strength to the rally which has taken the Nifty well above 21000 level. The fact that the fairly valued banking segment has been a significant contributor to the recent rally also is a positive development. PSU banks like BoB, Canara Bank and Indian Bank are even now attractively valued.

The important question is: will the buy-on-dips strategy, which has worked well so far, work again from the present level? The risks are high. There is a ‘triple danger’ looming over markets in the near term: dollar index above 105, steadily rising US 10-year bond now around 4.39% and the Brent crude above $94. These are significant macro risks which the market cannot ignore for long. FIIs refraining from big selling is because of the FOMO (fear of missing out) factor.

Investors should exercise caution, particularly in the over-heated mid- and small-cap segments. Safety is in large caps."

Turkey is reportedly in discussions to explore alternatives to the India-Middle East trade corridor plan, as it seeks to bolster its position as a crucial trade route. This development comes in response to Turkey's reservations about the proposed India-Middle East-Europe corridor, which was recently agreed upon during the G20 Summit held in New Delhi.

The India-Middle East corridor is designed to facilitate the movement of goods from the Indian subcontinent, passing through the United Arab Emirates (UAE), Saudi Arabia, Jordan, and Israel, ultimately reaching European markets. This route has been hailed as "strategic" by both the United States and the European Union, as they aim to counteract China's growing influence in global trade. However, this corridor bypasses Turkey, a factor that has prompted Turkey's President, Recep Tayyip Erdogan, to assert that "there can be no corridor without Turkey." Erdogan further emphasized that the most suitable trade route for commerce from the east to the west must include Turkey. (Read More)

Amnish Aggarwal - Head of Research, Prabhudas Lilladher Pvt Ltd on Dabur India (DABUR IN) - Rating: ACCUMULATE | CMP: Rs566 | TP: Rs600

Analyst Meet Update - Sustained focus on Innovations and NPD

Quick Pointers:

§ Healthcare/Home & Personal Care projected revenue at ~Rs50/70bn by FY28.

§ IBD targets double-digit constant currency growth with GM improvement of 300bps and EBITDA margins of 20%+.

We attended DABUR’s Capital Markets Day 2023 wherein the company’s CEO and divisional heads presented their medium-term strategy. DABUR reiterated plans to 1) grow power brands into power platforms 2) premiumize the portfolio 3) enter into new categories and increase TAM (3.2x since 2019) and 4) expand into new variants and formats. Such efforts have yielded results over FY19-23 with market share gains across 90% of the portfolio, revenue growth of high-single digit and increase in share of innovations to 4% (1.4% in FY19). We believe sustained innovation and launches in core segments will help achieved double digit sales growth.

Inflationary headwinds have largely come off and Dabur is looking at increasing ad-spends from 5.6% (FY23) to earlier levels (gradually) to support brands. Recovery in rural markets is a key to accelerate sales growth, as this segment reaps 50% of revenues. We believe scalable opportunities in Badshah, Beverages, new launches like baby care and brand extensions hold key to medium-term growth. Moreover focus on cost reductions through higher freight optimization, lower distance to market, multiple vendors for raw material/cartons etc. will help remove costs from the system and improve profitability. We estimate 15.4% EPS CAGR over FY23-25E and arrive at DCF based target price of Rs600 (45.6xJun25 EPS). Dabur trades at 43.0x Jun25 EPS with 21.2% ROE and 50% dividend payout. Retain ‘Accumulate’.

Foreign portfolio investors (FPIs) have continued their trend of selling off Indian assets in September, resulting in a net outflow of funds. This has been influenced by the relatively subdued performance of the Indian stock market due to rising US bond yields and a stronger US dollar.

According to data from the National Securities Depository Ltd (NSDL), FPIs have sold a total of ₹4,768 crore worth of Indian equities and have offloaded an additional ₹2,968 crore across various asset categories, including debt, hybrid instruments, debt-VRR, and equities. This data is accurate as of September 15.

It's worth noting that the ₹4,768 crore figure also encompasses bulk deals and investments made in the primary market. If we exclude these bulk deals and primary market investments, the net selling figure in the cash segment alone amounts to ₹9,579 crore, as reported by analysts. (Read More)

L&T announces buyback, HDFC Bank to see passive inflows, Jupiter Hospital IPO listing date today, Govt increases windfall tax on domestic crude oil, HAL to acquire Su-30 MKI fighter jets, Tata Steel secures investment package, BEL receives order from Cochin Shipyard, Axis Finance challenges Zee-Sony merger, Independent Director resigns from Dhanlaxmi Bank, Vodafone Idea pays dues to government. (Read More)

Vaishali Parekh, Vice President — Technical Research at Prabhudas Lilladher recommends:

1] Axis Bank: Buy at ₹1027, target ₹1070, stop loss ₹1010.

2] CIE Automotive India: Buy at ₹508, target ₹540, stop loss ₹498.

3] eClerx: Buy at ₹1851, target ₹1940, stop loss ₹1820. (Read More)

Tata Steel today said that the UK government has agreed to support their planned investment of 1.2 billion pounds to improve infrastructure at the plant in Port Talbot.

In a media statement issued on Friday, the company is expected to receive a grant from the UK government of up to 500 million pounds. The partnership is aimed to develop ecologically sustainable steel production and will be the largest investment proposal received by the UK steel industry in several decades. (Read More)

Debt-ridden telecom operator Vodafone Idea has paid RsRs 1,700 crore to the government which includes the dues for the 5G spectrum and other spectrum acquired previously.

“We wish to inform that the Company has today, i.e. 16th September,2023, made the requisite payment of ~ Rs. 1,701 crores (including interest) to the Department of Telecommunications, Government of India, towards 2022 Spectrum Auction Instalment," Vi said in the regulatory filing. (Read More)

On Friday, the Central government announced an increase in the windfall tax applied to the sale of domestic crude oil, raising it to ₹10,000 per tonne. This marks an increase from the previous rate of ₹6,700 per tonne, which had been in effect for the past two weeks. The new tax rates are set to be implemented starting from Saturday, September 16.

Additionally, in a notification issued by the Ministry of Finance, it was stated that the special additional excise duty (SAED) on diesel exports would be reduced to ₹5.50 per litre, down from the previous rate of ₹6 per litre. Similarly, the duty on jet fuel exports will see a reduction to ₹3.5 per litre, down from ₹4 per litre. However, it was noted that there would be no change in the additional duty on the export of petrol, which will continue to remain at zero. (Read More)

IIFL Alternative Research has projected that HDFC Bank is poised to receive passive inflows of approximately $650 million as part of the FTSE's semi-annual index review, which was scheduled for September 15. These modifications are set to take effect from September 18. 

On Friday, September 15, HDFC Bank's shares showed strong performance, registering a gain of over 1 percent. During late afternoon trading on the National Stock Exchange (NSE), these shares reached an intraday high of ₹1,670. This uptick in the leading private lender's stock price was attributed to significant block deals amounting to ₹4,500 crore, as reported by CNBC-TV18. These deals were prompted by passive inflows resulting from an adjustment to the FTSE indices. (Read More)

The initial public offering (IPO) of Jupiter Life Line Hospitals Limited is scheduled for today, September 18, 2023. In accordance with the announcement from the Bombay Stock Exchange (BSE), starting from Monday, September 18, 2023, the equity shares of Jupiter Life Line Hospitals Limited will be officially listed and made available for trading on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE), classified under the 'B' group of securities.

Market analysts are speculating that the opening price of Jupiter Hospital's shares on both the BSE and NSE may surpass the upper price band of ₹735 per equity share. They have suggested that in a bearish scenario, the IPO listing price for Jupiter Hospital could be around ₹950 per share, while in a bullish scenario, it might even reach four digits when listed on the Indian stock market exchanges. (Read More)

Wall Street capped a choppy week of trading with a broad slide for stocks Friday, giving the S&P 500 its second losing week in a row.

The benchmark index fell 1.2%, its first loss in three days. The Dow Jones Industrial Average dropped 0.8% and the Nasdaq composite gave back 1.6%.

U.S. automaker stocks proved to be resilient after members of the United Auto Workers union walked off the job at several plants overnight. Ford slipped 0.1% and General Motors rose 0.9%. Shares in Stellantis gained 1.9% in trading on the Milan Stock Exchange in Italy.

The market posted some gains earlier this week following several healthy indicators on the economy. Wall Street has been watching economic updates ahead of the Federal Reserve's interest rate policy meeting next week. The central bank is expected to hold interest rates steady after spending much of the last two years pushing rates higher in its bid to tame inflation.

Boosting market sentiment this week was a report Thursday that said U.S. shoppers spent more at retailers last month than economists expected. A separate report Thursday morning said fewer workers applied for unemployment benefits last week than expected. (AP)