Small and Micro Cap Indices End the Week With Big Losses - Weekly Closing Report
Moneylife Digital Team 10 May 2024
The trends of the major indices in the course of the week’s trading are given in the table below:
 
 
In a rollercoaster week for Indian stock markets, the Sensex and the Nifty 50 rebounded into positive territory on Friday, after five consecutive days of declines. However, the gains were not substantial enough to offset the weekly losses, as the Sensex and the Nifty 50 registered a decline, while the BSE Midcap and Smallcap indices experienced sharper drops of 3% and 4%, respectively. Short covering, fueled by strong overseas market cues, helped key benchmark indices end in positive territory on Friday.
 
The market has been expecting a comfortable majority for the Narendra Modi-led National Democratic Alliance (NDA) in the ongoing Lok Sabha elections. Analysts anticipate policy stability, continuity, and business-friendly reforms if the NDA secures a majority. However, there is a palpable concern that anything short of a substantial majority could trigger short-term panic in the markets.
 
Foreign institutional investors (FIIs) have turned sustained sellers this month, offloading Indian shares worth Rs15,863 crore in the cash segment and Rs5,292 crore in the Future & Option (F&O) segment till Thursday. This selling pressure is attributed to delays in rate cuts, inflationary concerns, moderation in corporate earnings, and premium valuation.
 
On the other hand, domestic institutional investors (DIIs) have turned buyers in all trading days of this month so far. From the data showing sharper declines in the broader market, it appears that high net worth individuals (HNIs) and retail investors have booked some profits and are in a wait-and-watch mode, perhaps responding to the noise relating to uncertainty regarding the election results.
 
News
 
Lupin's results for Q4 and the fiscal year ending March 31, 2024, reveal significant growth. Consolidated net profit surged by 51.91% to Rs368.22 crore in Q4FY24 from Rs242.39 crore a year earlier, while total income rose by 11.70% to Rs4,990.04 crore. For the full fiscal year, net profit soared over 4 times to Rs1,935.57 crore compared to Rs 447.69 crore in the previous year, with total income climbing by 20.44% to Rs20,130.99 crore.
 
Bharat Forge consolidated profits saw a significant surge of 78% during the fourth quarter of FY24, leading to a 15% increase in its stock value to an all-time high on Wednesday. In FY24, the company generated revenues of Rs15,682, marking a notable 21% year-on-year growth. During a recent conference call, Deputy Managing Director Amit Kalyani highlighted various factors that contributed to the company's improved performance compared to the previous quarter. These factors include a substantial influx of orders from businesses relocating from China and Europe to India, positive forecasts from its clients, and successful expansion into both existing and new product markets. The company's share price has surged by 15.87% year-to-date and by 85.3% over the past year. Bharat Forge's board of directors has proposed a final dividend of Rs6.50 per share for the fiscal year ending March 31, 2024, which is set to be distributed on or after August 14, 2024.
 
New Ventures/ Capacity Expansion 
 
HCL Technologies has entered into a global strategic collaboration agreement with Amazon Web Services (AWS) to accelerate GenAI-led enterprise digital transformation.
 
Gulshan Polyols has been granted with a ‘Consent to Operate’ (CTO) under section 25 of the Water (Prevention & Control of Pollution) Act, 1974 and under section 21 of the Air (Prevention & Control of Pollution) Act, 1981 from Pollution Control Board, Assam for its Ethanol Plant (Grain based) unit at Goalpara, Assam.’
 
Caplin Point Laboratories has received Colombia's INVIMA approval for its Softgel Capsules division at Puducherry.
 
Adani Ports and Special Economic Zone (APSEZ) (-2.44%) is eyeing the Philippines' Bataan province to develop a port. APSEZ is planning to open a port in the Philippines due to the nation's stable leadership and environment. It plans to develop a 25-meter deep port that can accommodate Panamax vessels. 
 
Tata Steel’s subsidiary -- Tata Steel Special Economic Zone (TSSEZL) and HHP Five (Hygenco) have inked a memorandum of understanding (MoU) to establish a green hydrogen and green ammonia project at TSSEZL’s Gopalpur Industrial Park (GIP) in Odisha’s Ganjam district.
 
VA Tech Wabag (has launched ‘Blue Seed’ a pioneering initiative designed to foster innovation and support emerging start-ups in the water sector.
 
Gland Pharma has received approval from the United States Food and Drug Administration (USFDA) for Edaravone Injection, 30 mg/100 mL (0.3 mg/mL) and 60 mg/100 mL (0.6 mg/mL), Single-Dose Bags. The Product is bioequivalent and therapeutically equivalent to the reference listed drug (RLD), Radicava Injection, 30 mg/100 mL (0.3 mg/mL) and 60 mg/100 mL (0.6 mg/mL) of Mitsubishi Tanabe Pharma Corporation.
 
Persistent Systems has launched iAURA, a suite of AI-powered data solutions engineered to catalyze business growth
 
Shyam Metalics and Energy has commenced operations at recently acquired Ramsarup plant following its indirect acquisition through its wholly owned subsidiary, Shyam Sel and Power.
 
PNC Infratech has received provisional completion certificate (PCOD) for project ‘Four Laning of Meerut - Najibabad section from km 11.500 (design chainage 11.500 Meerut) to km 39+240 (Design Chainage 39.250 Behsuma) and from km 86.590 (Design Chainage 79.500 Bijnor) to km 112.545 (Design Chainage 105.700 Jalalabad) of NH - 119 (New NH - 34) in the State of Uttar Pradesh under Bharatmala Pariyojna on Hybrid Annuity Mode’ executed by one of its subsidiary companies namely ‘PNC Meerut Haridwar Highways’
 
Thomas Cook (India) has launched its Video KYC with paperless processes, to empower its retail customers. This transformative digital solution aims to bring customers ease and convenience, enabling seamless foreign exchange services from the comfort of their home.
 
Oberoi Realty has entered into a Development Agreement for development and redevelopment of land of around 12,790 square meters, situate at Adarsh Nagar, Worli, Mumbai.
 
Orient Electric has commenced the commercial production from its greenfield manufacturing plant at Hyderabad, Telangana.
 
Mercury Ev-Tech has received approval for the acquisition/purchase of 65% stake in Traclaxx Tractors, equivalent to 5,23,900 equity shares of Rs10 each at a price of Rs10 each, total consideration being Rs52.39 lakh. Henceforth, Traclaxx Tr RattanIndia Enterprises Revolt Motors has unveiled a newly optimized pricing structure for its popular RV400 and RV400 BRZ models.actors will be considered as Subsidiary Company of Mercury EV-Tech.
 
Crompton Greaves Consumer Electricals has commenced manufacturing and assembly operations of its built-in kitchen appliances in its Vadodara manufacturing facility. The new assembly line boasts minimal changeover time, enabling seamless transitions and eliminating downtime.
 
Dixon Technologies’ (India) Subsidiary -- Dixon Electro Appliances (DEAPL) has entered into an Agreement with Nokia Solutions and Networks OY (Nokia) for undertaking development and manufacturing of Telecom products.
 
Tata Elxsi has collaborated with Arm, the global semiconductor design and software platform company to offer advanced solutions on the latest Arm processors, which will help Automotive OEMs and Tier-1s fast track their transition to software-defined vehicles (SDVs).
 
PTC Industries has signed an agreement to incorporate Special Purpose Vehicle (SPV) under Section 8 of the Companies Act of 2013. Further Uttar Pradesh Expressways Industrial Development Authority will provide 2 acres of land to the proposed Section 8 Company for the Defence Testing Infrastructure (DTI) at the Lucknow node of the Uttar Pradesh Defence Corridor. 
 
LTIMindtree has collaborated with IBM to establish a global, joint Generative AI Center of Excellence (CoE) in India, a co-innovation center combining the power of the IBM watsonx AI and data platform and the engineering skills of LTIMindtree.
 
Vardhman Textiles has received approval for the enhancement and modernization of existing Spinning and Fabric Business capacity of the company and also generation of Green Power with a total capital outlay of Rs2,000 crore.
 
Bharti Airtel has deployed additional sites in Sabarkantha district to densify its network. The network expansion project in Sabarkantha was undertaken across 214 villages covering 2.7 lakh population base. Customers in the tehsils of Idar, Prantij, Talod, Vijaynagar under the Sabarkantha district will directly benefit from this network expansion. 
 
Zydus Lifesciences has received final approval from the United States Food and Drug Administration (USFDA) to market Dapsone Gel. Dapsone Gel is used to treat acne and will be manufactured at the group’s topical manufacturing facility at Changodar, Ahmedabad (India).
 
TVS Supply Chain Solutions has won a new business contract from VE Commercial Vehicles (VECV) for managing their in-Plant warehousing and logistics function at their Eicher bus factory located in Baggad, Madhya Pradesh.
 
NTPC’s wholly owned subsidiary-- NTPC Green Energy (NGEL) has signed memorandum of understanding (MoU) with Mahatma Phule Renewable Energy and Infrastructure Technology (MAHAPREIT) for development of Renewable Energy Power Parks and Projects.
 
Order Wins
 
Exhicon Events Media Solutions has won a Sizeable Tender from Nuclear Power Corporation of India (NPCIL), wherein from the June 2024 to April 2025, Exhicon will be conducting a series of 120 events for the Nuclear Power Corporation of India.
 
VA Tech Wabag has secured a repeat order from Office National De L’assainissement (ONAS) of Tunisia. The consortium order entails design, build, operate (DBO), towards a 36 MLD wastewater treatment plant (WTP) valued at 114.22 Million Tunisian Dinars (approximate Euro 34 Million), located at Sousse Hamdoun II, Tunisia. The scope under this order will be engineering & procurement (‘EP') and operation & maintenance (O&M), which is worth about half of the consortium order value.
 
Larsen & Toubro (L&T) has won multiple orders in India and abroad for its power transmission & distribution (PT&D) business. 
 
EMS has emerged as the lowest bidder (L-1) in the tender at UPCL VCVGS Urja Bhawan, Dehradun for Supply, Installation, Testing & Commissioning of Infrastructure Works Loss Reduction on turnkey basis under ‘Revamped Reforms-Linked Results-Based Distribution Sector Scheme, Circle Rural Dehradun’. The estimated order value is around Rs148.11 crore.
 
NBCC (India) has been awarded the work orders worth Rs400 crore by the Court Receiver of Supreme Court of India. The company has got Rs250 crore worth contract for Amrapali Vananchal City, Bhilai District, Chhattisgarh, while it got Rs150 crore worth contract for Amrapali Cosmos, Aluva, Ernakulam District, Kerala. The said works are in the normal course of business of the company.
 
Rail Vikas Nigam has received Letter of Acceptance (LoA) from SER HQ-Electrical/South Eastern Railway for Design, Supply, Erection, Testing and Commissioning for upgradation of Electric traction system from 1 x 25 KV to 2 x 25 KV traction system for Rajkharsawan -Nayagarh-Bolani section of Chakradharpur division of South Eastern Railway to meet 3000 MT loading target. Cost of work is Rs167.28 crore including applicable taxes. The said contract is expected to be completed in 18 months.
 
Investments/ Acquisitions/ Mergers/ Stake sale
 
Vinati Organics has subscribed to the additional 5,80,58,500 fully paid-up equity shares of the face value of Rs10 each at par by way of subscription towards the rights issue of Veeral Organics, its wholly owned subsidiary.
 
Amber Enterprises India has acquired 50% stake through primary investment in equity share capital of Resojet (JV Company) - A part of LCGC Resolute Group, Hyderabad.
 
Craftsman Automation has entered into definitive agreement to acquire the remaining 24% of equity share capital of DR Axion India, a material subsidiary of the company.
 
Bombay Dyeing & Manufacturing Company has received approval for entering into Share Purchase, Subscription and Shareholder’s Agreement along with the Power Purchase Agreement and Option Agreement to acquire up to 26% equity stake in one or more tranches in AMP Energy C&I Twenty Seven (a wholly owned subsidiary of AMP Energy C & I), for setting up captive solar power project in Maharashtra.
 
Entero Healthcare Solutions has received approval to execute the definitive agreements to acquire 80% paid-up equity share capital of Avenir Lifecare Pharma (ALPPL). The business of ALPPL is in line of the business of the Company i.e. wholesale distribution of pharmaceutical and other allied products and the acquisition of ALPPL by the company shall enable the Company to expand its business in the State of Telangana and thereby enabling the company to generate additional business and revenue on consolidated basis.
 
Godrej industries has acquired additional 14% equity stake in Godrej One Premises Management (GOPMPL), subsidiary of the company.
 
Happiest Minds Technologies has signed definitive agreements to acquire 100% Membership interests of USA-based Azure native digital product engineering company Aureus Tech Systems LLC (Aureus).
 
Financial services company Citigroup has sold shares of Vodafone Idea (+0.39%) for over Rs233 crore through an open market transaction. US-based Citigroup through its affiliate, Citigroup Global Markets Mauritius, offloaded shares of Vodafone Idea through a block deal on the BSE.
 
Other Announcements
 
Goa Carbon has temporarily shut down operations at the company's Paradeep Unit, in Odisha.
 
Earning Highlights
 
Century Textiles : Net Sales was Rs1,686 crore in Q3FY24 up 72% YoY (Rs982 crore). Net Profit was Rs20.6 crore in Q3FY24 down 58% YoY (Rs142 crore)
 
SRF: Net Sales was Rs3,570 crore in Q3FY24 down 6% YoY (Rs3,778 crore). Net Profit was Rs422 crore in Q3FY24 down 25% YoY (Rs562 crore).
 
Graphite India: Net Sales was Rs720 crore in Q3FY24 down 12% YoY (Rs815 crore). Net Profit was Rs16.0 crore in Q3FY24 down 45% YoY (Rs29 crore).
 
Hero Motocorp: Net Sales was Rs9,617 crore in Q4FY24 up 14% YoY (Rs8,434 crore). Net Profit was Rs943 crore in Q4FY24 up 16% YoY (Rs811 crore)
 
Jupiter Wagons: Net Sales was Rs1,113 crore in Q4FY24 up 56% YoY (Rs712 crore). Net Profit was Rs104 crore in Q4FY24 up 156% YoY (Rs41 crore)
 
Cams Services: Net Sales was Rs287 crore in Q4FY24 up 21% YoY (Rs237 crore). Net Profit was Rs97 crore in Q4FY24 up 35% YoY (Rs71.6 crore). 
 
Punjab National Bank: Net Sales was Rs28,113 crore in Q4FY24 up 18% YoY (Rs23,849 crore). Net Profit was Rs3010 crore in Q4FY24 up 160% YoY (Rs1,159 crore).
 
Venus Pipes: Net Sales was Rs224 crore in Q4FY24 up 27% YoY (Rs176 crore). Net Profit was Rs25.0 crore in Q4FY24 up 86% YoY (Rs13.4 crore).
 
Capri Global: Net Sales was Rs649 crore in Q4FY24 up 43% YoY (Rs455 crore). Net Profit was Rs82.6 crore in Q4FY24 up 27% YoY (Rs64.9 crore).
 
Top Gainers and Losers of the major indices for the week are given in the table below:
 
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