The trends of the major indices in the course of the week's trading are given in the table below:
Indian stock markets ended the week on a subdued note, with both benchmark indices closing lower on Friday. The BSE Sensex fell by 264.27 points or 0.31%to close at 85,571.85, while the NSE Nifty declined by 37 points or 0.14%, ending at 26,179. Despite the day's losses, both indices managed to gain more than 1% over the week, reflecting the overall positive sentiment in Asian markets.
The week's performance was largely influenced by developments in China, where broad economic support measures triggered a rally in Asian markets. Chinese equity markets, in particular, saw sharp gains as the country's central bank announced stimulus measures to boost their economy. This positive momentum in China had a spillover effect on other Asian markets, including India.
In the commodities market, crude oil prices remained under pressure, with Brent crude hovering near the $70 per barrel mark. This trend in oil prices is being closely watched for its potential impact on inflation and economic growth in oil-importing countries like India.
On the domestic front, investors are looking forward to the second-quarter earnings reports, anticipating improvements in the earnings outlook for Indian companies. The upcoming earnings season is expected to provide crucial insights into the health of various sectors and the overall economy.
Metal stocks experienced a significant upswing on Tuesday following China's announcement of stimulus measures for its struggling economy. The People's Bank of China (PBOC), the country's central bank, declared on Tuesday that it would reduce the reserve requirement ratio (RRR) for banks by 50 basis points, or half a percentage point. PBOC also announced a reduction in the seven-day reverse repurchase rate from 1.7% to 1.5%. These measures are aimed at boosting economic activity in China, which has been experiencing a slowdown. The recent economic deceleration in China had negatively impacted its demand for metals, leading Chinese steel producers to export their products at lower prices to global markets. This, in turn, had adversely affected the performance of Indian steel companies due to weak steel prices. In response to China's stimulus announcement, the Nifty Metal index rose by over 2.5% on Tuesday, emerging as the top-performing sectoral index. Several major metal and mining companies saw significant gains, including Tata Steel, NMDC, Hindalco Industries, Steel Authority of India and Vedanta.
News
The Securities and Exchange Board of India (SEBI) slapped a penalty of Rs8 lakh on Brightcom Group (BGL) for failing to make timely disclosures to stock exchanges. SEBI conducted an examination in the matter of Brightcom Group for the alleged violation of provisions of LODR (Listing Obligations and Disclosure Requirements) rules. SEBI initiated proceedings against BGL in the matter and issued show cause notice on 31 May 2024.
Gillette India received a letter from its distributor, Procter & Gamble Bangladesh (P&G Bangladesh), notifying termination of the distribution agreement with the company.
New Ventures/ Capacity Expansion
Ramco Cements carried out de-bottlenecking of cement grinding capacity resulting in increase of capacity from 1.5 MTPA to 2 MTPA at its Kalavatala Plant, Kolimigundla Mandal, Nandyal District, Andhra Pradesh. In addition, at its Valapady Grinding Unit, Salem District, Tamil Nadu, the company has carried out de-bottlenecking of cement grinding capacity resulting in increase of capacity from 1.6 MTPA to 2 MTPA.
Vodafone Idea (VIL) concluded a mega $3.6 billion deal with Nokia, Ericsson and Samsung, for supply of network equipment over a period of three years. The deal marks the first step towards the rollout of the company’s transformative three-year capex plan of $6.6 billion. The capex programme is directed towards expanding the 4G population coverage from 1.03 billion to 1.2 billion, launching 5G in key markets and capacity expansion in line with data growth. The company continued with its existing long-term partners Nokia and Ericsson and also onboarded Samsung as a new partner.
Oil and Natural Gas Corporation’s (ONGC) wholly owned subsidiary -- ONGC Videsh (OVL) together with the state oil company of the Azerbaijan (SOCAR), bp, MOL, INPEX, Equinor, ExxonMobil, TPAO, and ITOCHU, signed an addendum to the existing production sharing agreement (PSA) for Azeri-Chirag-Deepwater Gunashli (ACG) field in the Azerbaijan sector of the Caspian Sea.
Cressanda Railway Solutions wholly-owned subsidiary -- Cressanda Retail Solutions has entered into an exclusive distributorship with Bharatiyam Distribution (BDPL) for the sale and distribution of Campa and associated products within the northern zone on Indian Railways. This distributorship covers the sale and distribution of Campa, other aerated drinks, energy drinks and juices across the northern zone of Indian Railways which spans five major divisions including Delhi, Ambala, Lucknow, Ferozpur, and Moradabad. This covers the states of Haryana, Chandigarh (UT), Uttar Pradesh, Himachal Pradesh, Punjab, Delhi, Jammu & Kashmir, and Uttarakhand.
EaseMyTrip entered into an exclusive partnership with PhonePe for launching its Hotels segment on the platform. This collaboration aims to enhance the user experience by providing seamless access to millions of domestic and international hotels.
Uno Minda’s subsidiary -- Minda Onkyo India has entered into a technical license agreement (TLA) with Hyundai Mobis, Korea. The TLA is for manufacturing of licensed products i.e. speakers.
Zen Technologies in collaboration with its subsidiary AI Turing Technologies unveiled four remote-controlled weapon and surveillance systems. These state-of-the-art innovations are poised to redefine modern warfare and strengthen India's defense prowess.
Orders
Power Mech Projects received an order worth of Rs226.66 crore from Gujarat Mineral Development Corporation (a Government of Gujarat Enterprise) for operate, maintain and repair 250 (2X125) MW power plant and all its equipment for power generation and transition lineup to 220KV switchyard and others related works. The order is to be executed within three years from the tentative date of start of work as on 16 December2024.
KEC International secured new orders of Rs1,003 crore across its various businesses. Railways business has secured an order for tunnel ventilation system and associated works in India. Civil business has secured an order in the industrial segment for civil and mechanical works for a steel plant in India. Cables business has secured orders for supply of various types of cables in India and overseas.
NBCC’s (India) wholly owned subsidiary -- HSCC (India) has received work order worth around Rs1,261 crore from Ministry of Health and Family Welfare, Government of India. The work order is for establishment of AIIMS in Darbhanga, Bihar. The aforesaid work is in the normal course of business of the HSCC (India).
PSP Projects secured work orders worth Rs554.92 crore. Out of which, the order worth Rs389.29 crore is for construction of Gold Stone Hotel and Commercial Towers at Bangalore. The projects are to be completed within a period of 22 months and 16 months respectively.
Adani Total Gas (ATGL) secured largest global financing in the city gas distribution business. ATGL has entered into an overall financing framework which enables ATGL to secure future funding based on its business plan.
Inox Wind (IWL) signed a consortium agreement with a group of banks led by ICICI Bank for limits of around Rs2,200 crore.
KPI Green Energy received the letter of award (LoA) from Sai Bandhan Infinium for the development of a 66.20 MW hybrid power project under the captive power producer (CPP) segment. The project is tentatively scheduled to be completed by July 2025, in various tranches as per the terms of the order.
Investments/ Acquisitions/ Fund Raise/ Stake Sale
SpiceJet successfully raised Rs3000 crore through its recently concluded Qualified Institutional Placement (QIP), which was significantly oversubscribed by investors.
Coromandel International's wholly owned subsidiary -- Coromandel Chemicals (CCL) received approval for acquisition of 44,094 fully paid ordinary shares of face value of XOF 23,000 per share of Baobab Mining and Chemicals Corporation SA, Senegal (BMCC), representing 8.82% of issued share capital of BMCC, from Baobab Fertilizer Africa (BFA), which is an existing shareholder of BMCC, at a consideration of $3.84 million.
Hariom Pipe Industries received an approval for the raising of funds through issuance of equity shares or any other eligible securities by way of one or more public and/or private offerings including by way of a qualified institutions placement for an amount not exceeding Rs700.00 crore.
HDFC Life Insurance Company will finalize the commercial terms for the proposed Rs2,000 crore debt issuance of unsecured, rated, listed, redeemable, fully paid up, non cumulative, subordinated, non convertible debentures on a private placement basis.
Uno Minda acquired 2,39,05,819 equity shares i.e., 30% stake of Minda Onkyo India (MOIPL) from Onkyo Sound Corporation, Japan, for a total consideration of Rs1.53 crore, as per the valuation price of Rs0.65 per equity share. With this acquisition, now the stake of the company in MOIPL stand increased to 80% and MOIPL has become a subsidiary of Uno Minda.
KPIT Technologies invested 10 million euro in KPIT Technologies GmbH, a wholly owned step-down subsidiary of the Company. The investment is made on September 24, 2024. KPIT Technologies GmbH is engaged in Engineering services predominantly in Automotive sector. Accordingly, the investment is being undertaken by the company in line with its main business.
Mahindra & Mahindra Financial Services raised Rs1250.46 crore through the allotment of 1,25,000 secured, rated, listed, redeemable non-convertible debentures (NCDs) with the face value of Rs1,00,000, per debenture issued at multiple pricing (i.e. at par and premium based on the investor pricing bids) on private placement basis to the identified investors.
Cipla’s wholly owned subsidiary -- Cipla (EU) entered into a definitive agreement for purchase of entire 6.9124% equity interest of Jiangsu Xidi Pharmaceuticals (formerly known as Jiangsu Acebright Pharmaceuticals) held in Cipla (Jiangsu) Pharmaceuticals, China (Cipla Jiangsu), subsidiary. Upon completion of the transaction, Cipla Jiangsu will become a wholly owned step-down subsidiary of the company.
Zaggle Prepaid Ocean Services received approval for the acquisition of 10,66,314 Equity Shares of face value of Rs10 each at a price of Rs300.80 per share (including a premium of Rs 290.80 per share) constituting 98.32% stake in Span Across IT Solutions (Span Across) consequent to which Span Across will become a subsidiary of the company, following the completion of the procedural requirements.
Top Gainers and Losers of the major indices for the week are given in the table below:
