Nifty, Sensex Trending Higher After a Volatile Week - Weekly Closing Report
Moneylife Digital Team 07 June 2024
The trends of the major indices in the course of the week’s trading are given in the table below:
 
 
The Indian stock market experienced significant volatility throughout the week, with major shifts in investor sentiment driven by the general election results and the Reserve Bank of India's (RBI) policy decisions.
 
On Monday, the market witnessed a remarkable rally ahead of the election results, recording its strongest trading day in three years. The optimism was fuelled by exit polls predicting a resounding victory for the Bharatiya Janata Party (BJP) and its National Democratic Alliance (NDA) partners. The broad-based rally affected all market capitalization segments, with public sector stocks and Adani group being the biggest gainers.
 
However, the market faced a massive selloff on Tuesday, the day of vote counting, as the BJP fell short of a majority. The Sensex plummeted 5.74%, while the Nifty tumbled 5.93%, erasing gains accumulated over the past four months. The unexpected election outcome triggered fear selling, and sectors that had outperformed in the past five years, such as power, capital goods, real estate, and industrials, may not continue to do well in the near term.
 
On Wednesday, the National Stock Exchange (NSE) created a world record for the highest number of transactions in a single trading day, handling 19.71 billion orders and 280.55 million trades. The rally was fuelled by key allies pledging their support to form a new government following a narrow win for the NDA led by Prime Minister Narendra Modi. The NSE Nifty 50 index ended the day 3.4% higher, registering its best percentage gain since February 2021.
 
On Friday, the Sensex rallied nearly 1,700 points to hit a life-time high, as the RBI raised its forecast for FY25 GDP growth to 7.2% while keeping rates unchanged for the 8th consecutive term. The anticipation of stability within the coalition government and the RBI's upward revision of its growth forecast fuelled a broad-based rally, with the Indian market surpassing its previous record high set on exit-poll day.
 
New Ventures/ Capacity Expansion
Biocon received US FDA approval for Micafungin, used as an antifungal medication to treat fungal or yeast infections. The drug has an approximate market size of $330 million annually in the US.
 
Adani Ports and Special Economic Zone’s (APSEZ) wholly owned subsidiary -- Adani International Ports Holdings Pte (AIPH) has signed a 30-year concession agreement with the Tanzania Ports Authority to operate and manage a terminal at the Dar es Salaam Port in the east African country.
 
REC has received approval from board to raise borrowing limit in foreign currency to $24 billion form $20 billion. The overall borrowing limit in Indian rupees was however retained at Rs6 lakh crore. The board also approved raising up to Rs1,45,000 crore through private placement of unsecured/secured non-convertible bonds/debentures.
 
JTL Industries has completed Phase 1 expansion at its recently acquired subsidiary, Nabha Steels and Metals. It is set to deliver a production of 5,000 metric tons per month of HR coils, the raw material for the production of ERW Steel Pipes. Further, the second expansion phase is expected to commence shortly, scaling up the production output and adding more products to its portfolio offerings.
 
NTPC has started Commercial Operations of the second and last part capacity of 33 MW out of 90 MW Anta Solar PV Project at Anta, Rajasthan, with effect from May 31, 2024. With this, the total installed and commercial capacity of NTPC on standalone and group basis has become 59168 MW & 76048 MW respectively.
 
Mphasis entered a partnership with Classiq to commercialise industry solutions powered by Quantum. The company aims to speed up the adoption of quantum solutions for enterprises by integrating them into its operations.
 
Infosys entered a partnership with Nihon Chouzai, a Japanese dispensing pharmacy chain, to expand healthcare access in Japan with enhanced online medication guidance services and payment solutions.
 
Punjab National Bank signed an agreement with Indian Infrastructure Finance Co (IIFCL) to provide long-term financial assistance for infrastructure projects.
 
Reliance Industries subsidiaries completed the registration of sub-lease agreements for roughly 3,750 acres of land, including development rights, for 43 years. The deal, valued at Rs13,400 crore, involves land obtained from Navi Mumbai IIA, in which City and Industrial Development Corporation (CIDCO) holds a 26% stake. The sub-leased land will be used to develop an integrated industrial area.
 
Indian Oil Corporation has signed joint venture (JV) agreement with Sun Mobility, Singapore. The JV shall undertake and operate Battery Swapping Business related to deployment and operation of BAAS for SFEVs in India. The JV ratio will be 50:50 between Indian Oil Corporation & Sun Mobility.
 
SJVN will start power generation from its under-construction 900 MW Arun-3 hydro-electric project in Nepal from 2025. More than 74% of the project works have already been completed and the remaining works are going on in full swing. The project has the potential to generate 3924 million units of electricity every year.
 
LTIMindtree expanded its partnership with SAP, a leading provider of enterprise application software, to deliver innovations for complex manufacturing industries. The collaboration aims to tackle the unique challenges of this sector, offering streamlined solutions that enhance efficiency, reduce costs and ensure seamless upgrades. 
 
Roto Pumps commenced commercial production of Downhole Pumps at its new state of the art manufacturing facility at Greater Noida. The product category is Progressive Cavity Pumps. The product will cater to domestic and international markets.
 
Container Corporation of India (CONCOR) and Shipping Corporation of India (SCI) have signed Memorandum of Understanding (MOU). The Shipping Corporation of India is currently the only Indian Shipping Company operating break-bulk services, international container services, liquid/dry bulk services, offshore services, passenger services.
 
Persistent Systems launched GenAI Hub, an innovative platform designed to accelerate the creation and deployment of Generative AI (GenAI) applications within enterprises. This platform seamlessly integrates with an organization's existing infrastructure, applications, and data, enabling the rapid development of tailored, industry specific GenAI solutions.
 
Orchid Pharma received Drugs Controller General of India (DCGI) approval for the manufacturing and marketing of its invented New Chemical Entity Active Pharmaceutical Ingredient (API), Enmetazobactam.
 
Health Product Regulatory Authority of Ireland has issued EUGMP certificate to Concord Biotech’s unit II (Valthera facility) located at Dholka in Ahmedabad, Gujarat. 
 
Heritage Foods launched a new range of pure ghee laddus under the brand name ‘TRULY GOOD’. In addition to the ghee laddus, the company introduced a new range of kids' ice cream in fun ball formats under its Alpenvie Premium Ice cream Brand, in three exciting flavors: Banana Strawberry, Cotton Candy and Bubblegum. 
 
Uno Minda entered into a technical license agreement with Suzhou lnovance Automotive, China (lnovance Automotive) for manufacture and sale of select high voltage category electric vehicle products for passenger vehicle and commercial vehicle in India. The select electric vehicle products include Charging Control Unit (CCU), EV inverter, EV motors and next-generation 3-in-1 electric drive systems (e-Axle). 
 
Order Wins
Bharat Heavy Electricals (BHEL) has received an order from Adani Power for supply of equipment and supervision of erection & commissioning for 2x800 MW power project based on supercritical technology at Raipur, Chhattisgarh. Boiler and turbine generator are to be manufactured at BHEL’s Trichy and Haridwar plants respectively. The size of the order is greater than Rs3500 crore excluding GST. 
 
KP Green Engineering received new orders from multiple clients amounting to Rs351.35 crore
 
Ahluwalia Contracts (India) has secured orders worth Rs2245.15 crore. Out of the total, the order worth Rs2157 crore (Excluding GST) is from India Jewellery Park, Mumbai for Design, Engineering, Procurement and Construction (EPC) for Construction & Development of Gems & Jewellery Park in Mahape, Navi Mumbai and order worth Rs 88.15 crore (Excluding GST) is from Daffodil Hotel for Civil work for Park Hyatt Goa Pocket at 131 Arossium Village Taluka Mormugao Distt South Goa. 
 
Welspun Corp’s associate company East Pipes Integrated Company for Industry (EPIC) has signed contracts with Saudi Arabian Oil Co. with value exceeding Rs3,670 crore. The duration of the contracts is 19 months.
 
Rail Vikas Nigam bagged an order worth Rs 440 crore from South Central Railway for the engineering, procurement, and construction of a doubling track for the Aurangabad-Ankai Doubling Project.
 
RMC Switchgears received a significant work order from an Advanced Metering Infrastructure Service Provider (AMISP) for Supply of SMC Meter Enclosures for Smart Meters for the projects in Pashchimanchal Vidyut Vitran Nigam (PVVNL) and Madhyanchal Vidyut Vitaran Nigam (MVVNL). 
 
KEC International (+3.31%) has secured orders of Rs1,002 crore in its Civil business. The company has bagged orders for Residential projects in Northern and Southern India from renowned real estate developers and for construction of official residences and associated facilities for senior Defence officials in India. 
 
GPT Infraprojects has bagged an order valued at Rs547 crore from Rail Vikas Nigam in connection with construction of six lane elevated Kona Expressway in West Bengal.
 
NBCC (India) bagged multiple orders worth Rs491.45 crore.
 
Investments/ Acquisitions/ Fund Raise/ Stake Sale
Amber Enterprises will invest Rs2,000 crore to set up a printed circuit board manufacturing facility in India. 
 
Kalyan Jewellers India will acquire the remaining 15% stake in its arm Enovate Lifestyles (Candere) for Rs42 crore. The company acquired a majority stake in Candere in 2017 to enter the online jewellery market.
 
Maruti Suzuki India will invest Rs450 crore over a span of three years towards commissioning renewable energy projects linked to solar power and biogas. In FY23-24, the company invested Rs120.8 crore in the vertical. The company will increase this investment around four-fold to Rs450 crore spread over three years starting FY24-25. 
 
Tata Motors’ (TML) step down wholly owned subsidiary -- Tata Motors Finance (TMFL) has received approval to merge with Tata Capital (TCL) through an NCLT scheme of arrangement. As consideration for the merger, TCL will issue its equity shares to the shareholders of TMFL resulting in TML effectively holding a 4.7% stake in the merged entity.
 
Lupin’s wholly owned subsidiary -- Lupin Atlantis Holdings SA, Switzerland, has completed the acquisition of two well-known brands, Aarane in Germany and Nalcrom in Canada and the Netherlands, along with the associated trademark rights, from Sanofi. 
 
Nazara Technologies subsidiary and parent company of Sportskeeda.com and ProFootballNetwork.com -- Absolute Sports signed an asset purchase agreement to acquire all of the assets of SoapCentral.com, a premier source of entertainment content in the US.
 
Uflex entered into Power Purchase Agreement and Share Subscription and Shareholders’ Agreement for acquisition of 5.03% equity shares aggregating to Rs9.60 crore in Onevolt Energy.
 
Jindal Stainless acquired 100% stake of Evergreat International Investment Pte, Singapore (EIPL), thereby the company has acquired 54% equity stake in Chromeni Steels (CSPL). 
 
Zee Entertainment Enterprises received approval for raising funds by way of issuance of equity shares and/or any other eligible securities (convertible/nonconvertible) through private placement, a qualified institutions placement, preferential issue for up to Rs2000 crore.
 
Zodiac Clothing Company’s wholly owned subsidiary -- Zodiac Clothing Company SA has acquired 100% equity stake in Zodiac Clothing Company, England and Wales (Target Entity). The Target Entity shall assist in supplying and servicing to new export customers and markets in Europe and UK.
 
Adani Power has been allotted 50,00,000 equity shares of Rs10 each by Mirzapur Thermal Energy U.P. (MTEUPL) on preferential basis resulting in a 99.8% equity stake in MTEUPL. Consequently, MTEUPL has become a subsidiary of the Company. The object is to set up infrastructure facilities/ capacity augmentation of the company.
 
Top Gainers and Losers of the major indices for the week are given in the table below:
 
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