Newsletter: 13th December 2024

₹13,500 Crore Jet Deal

Aaj Ka Bazaar

Wall Street indices closed mostly higher, with the S&P 500 gaining 0.82% and the Nasdaq Composite surging 1.77% to hit the 20,000 mark for the first time. The rally in tech stocks, driven by hopes of looser regulations under Donald Trump’s presidency and optimism around AI-driven earnings growth in the coming quarters, showed no signs of slowing. However, the Dow Jones edged down by 0.22%. These movements were supported by the US inflation report, which solidified expectations of a Federal Reserve rate cut next week. Asian markets largely tracked the gains from the US markets, closing in positive territory. Japan’s Nikkei rose by 1.5%, while Hong Kong’s Hang Seng and China’s CSI 300 added 0.12% and 0.14%, respectively. Indian benchmark indices are expected to open on a muted note but may gain momentum and turn positive, reflecting the global cues. In stock-specific news, ACME Solar Holdings secured the 250 MW FDRE Project W Firm and Dispatchable Renewable Energy in an e-reverse auction conducted by NHPC at a Rs. 4.56 per unit tariff. Additionally, a greenshoe option could potentially double the project’s capacity to 500 MW, increasing ACME Solar’s total capacity to 6,970 MW.

Markets Around Us

BSE Sensex –80,966.46 (-0.40%)

Nifty 50 – 24,495.10 (-0.22%)

Bank Nifty – 53,139.60 (-0.14%)

Dow Jones – 43,871.29 (-0.10%)

Nasdaq – 19,915.98 (-0.59%)

FTSE – 8,311.76 (0.12%)

Nikkei 225 – 39,394.86 (-1.14%)

Hang Seng – 20,079.46 (-1.54%)

Sector: Aerospace & Defence

HAL Signs Deal for Sukhoi Jets

Hindustan Aeronautics Ltd. (HAL) shares are in focus after signing a ₹13,500 crore deal with the Ministry of Defence to deliver 12 advanced Su-30MKI jets. These jets will include 62.6% locally sourced components, bolstering India’s self-reliance in defense. The aircraft, to be built at HAL’s Nasik division, will enhance the Indian Air Force’s operational capability. HAL has already secured ₹40,000 crore in manufacturing orders this year, and analysts expect further defense contracts in Q4FY25, making it a key player in India’s defense sector.

Why it Matters:

This deal emphasizes India’s push for self-reliance in defense through indigenous manufacturing. It strengthens the Indian Air Force’s capabilities while showcasing HAL’s growing role in securing major defense contracts. Analysts predict more orders, solidifying HAL’s importance in the sector.

 NIFTY 50 GAINERS

HINDUNILVR – 2353.65 (0.37%)

NESTLEIND – 2231.60 (0.34%)

ADANIENT – 2512.55 (0.34%)

 

NIFTY 50 LOSERS

JSWSTEEL – 981.55 (-2.41%)

TATASTEEL – 147.34 (-2.28%)

SHRIRAMFIN – 3187.85 (-1.85%)

Sector: Financial Services

CRISIL Gains on Strategic Investments

CRISIL shares are likely to rise further on December 14 after its board approved a ₹33.25 crore investment to acquire a 4.08% stake in Online PSB Loans. This deal aims to enhance CRISIL’s market presence by supporting fintech-driven loan platforms. The acquisition, pending standard conditions and final agreements, is expected to close within 45 days. CRISIL recently reported a 12.8% YoY rise in Q2FY25 net profit to ₹171.55 crore, and its stock remains near its 52-week high, showing strong investor interest.

Why it Matters:

CRISIL’s acquisition of a stake in Online PSB Loans strengthens its foothold in the fintech lending sector, aligning with growth opportunities in digital financial solutions. This strategic move is set to diversify CRISIL’s offerings and boost market confidence.

Desh Duniya Bazaar

Around the World

Asian stocks fell sharply on Friday, mirroring Wall Street losses amid caution before the Federal Reserve meeting next week. Chinese markets declined as updates from a key legislative meeting disappointed investors, failing to announce aggressive economic stimulus. The Shanghai Composite dropped 1.8%, while Hong Kong’s Hang Seng lost 1.9%. Japan’s Nikkei 225 fell 1.3%, and other Asian indices also struggled. Meanwhile, South Korea’s KOSPI rose 0.3% amid political developments, while India’s Nifty 50 and Malaysia’s FTSE KLCI showed mixed trends. Global investors remained cautious on central bank policy signals.

Option Traders Corner

Max Pain

Nifty 50 – 24,500

Bank Nifty – 53,300

Nifty 50 – 24,583 (Pivot)

Support – 24,492, 24,436, 24,345

Resistance – 24,639, 24,731, 24,787

Bank Nifty – 53,309 (Pivot)

Support – 53,081, 52,946, 52,718

Resistance – 53,444, 53,672, 53,807

Did you know?

Indian Digital Milestone Achieved

India has generated over 138 crore Aadhaar numbers, transforming digital identity verification. DigiLocker now serves 37 crore users, securely storing 776 crore documents. The DIKSHA platform has facilitated 556 crore learning sessions and achieved nearly 18 crore course enrollments. 

Have you checked our latest Brand Ad

Newsletter: 12th December 2024

Rajkot Blaze Sparks Decline

Aaj Ka Bazaar

Wall Street indices closed mostly higher, with the S&P 500 gaining 0.82% and the Nasdaq Composite surging 1.77% to hit the 20,000 mark for the first time. The rally in tech stocks, driven by hopes of looser regulations under Donald Trump’s presidency and optimism around AI-driven earnings growth in the coming quarters, showed no signs of slowing. However, the Dow Jones edged down by 0.22%. These movements were supported by the US inflation report, which solidified expectations of a Federal Reserve rate cut next week. Asian markets largely tracked the gains from the US markets, closing in positive territory. Japan’s Nikkei rose by 1.5%, while Hong Kong’s Hang Seng and China’s CSI 300 added 0.12% and 0.14%, respectively. Indian benchmark indices are expected to open on a muted note but may gain momentum and turn positive, reflecting the global cues. In stock-specific news, ACME Solar Holdings secured the 250 MW FDRE Project W Firm and Dispatchable Renewable Energy in an e-reverse auction conducted by NHPC at a Rs. 4.56 per unit tariff. Additionally, a greenshoe option could potentially double the project’s capacity to 500 MW, increasing ACME Solar’s total capacity to 6,970 MW.

Markets Around Us

BSE Sensex –81,506.27 (0.02%)

Nifty 50 – 24,615.75 (-0.11%)

Bank Nifty – 53,382.50 (-0.02%)

Dow Jones – 44,030.80 (-0.26%)

Nasdaq – 20,032.76 (1.76%)

FTSE – 8,301.62 (0.26%)

Nikkei 225 – 39,899.82 (1.34%)

Hang Seng – 20,501.14 (1.69%)

Sector: Packaged Foods

Rajkot Factory Fire Hits Gopal Snacks

On December 12, Gopal Snacks shares fell following a major fire at its snacks manufacturing unit near Rajkot, Gujarat. The fire, which broke out on December 11, required 14 fire tenders to contain, with no injuries reported as the site had minimal staff due to a holiday. To mitigate the impact, the company has scaled up production at its facilities in Modasa and Nagpur and is collaborating with third-party manufacturers to meet demand. All assets are insured, and critical systems remain operational with no data loss or IT disruptions, ensuring smooth business continuity. Efforts are underway to restore operations at the affected unit quickly, and the management anticipates no long-term impact on financial performance. The company continues to maintain its position in the market, with its stock trading between its 52-week high and low range.

Why it Matters:

This incident highlights the importance of operational risk management for manufacturers. Despite the fire, Gopal Snacks showcased resilience by leveraging backup facilities and ensuring business continuity. It reassures investors that the company is prepared to handle disruptions without significant long-term financial impact.

 NIFTY 50 GAINERS

TECHM – 1793.80 (1.76%)

INFY – 1994.75 (1.04%)

TCS – 4469.25 (0.94%)

 

NIFTY 50 LOSERS

TATACONSUM – 920.20 (-1.59%)

COALINDIA – 410.90 (-1.45%)

APOLLOHOSP – 7240.00 (-1.37%)

Sector: Pharmaceuticals

Neuland Shares Slide After Block Deal

Neuland Laboratories shares dropped 8% on December 12 after a ₹780 crore block deal, with Smallcap World Fund reportedly selling its 3.8% stake. Around 4.9 lakh shares exchanged hands at ₹15,900 each, a 6% discount to the previous close, causing a sharp rise in trading volumes far above the monthly average. Reports suggest the deal was aimed at raising ₹747 crore for the fund, signaling its exit from the stock. This comes amid a 10% decline in Neuland Labs’ stock over the past week, driven by uncertainty around the US Biosecure Act. The Act, crucial for boosting demand for Indian CDMO firms under the China+1 strategy, failed to pass through a key defence bill, tempering optimism for the sector.

Why it Matters:

The block deal and Smallcap World Fund’s exit highlight significant investor activity, which can impact market sentiment. The broader decline in Neuland Labs’ stock reflects growing concerns over the stalled US Biosecure Act, a potential catalyst for Indian CDMO growth. This uncertainty could affect long-term prospects for the sector.

Desh Duniya Bazaar

Around the World

Asian stocks mostly rose on Thursday, driven by gains in U.S. technology stocks after inflation data boosted expectations of a Federal Reserve interest rate cut next week. U.S. consumer prices grew as expected in November, leading markets to price in a 98% chance of a 0.25% rate cut. Chinese markets gained as investors awaited economic stimulus details from the Central Economic Work Conference. Japan and South Korea saw tech-driven rallies, while Australia’s shares dipped as strong jobs data reduced chances of near-term rate cuts. Mixed performances were seen in other Asian markets, with investor focus split between local and global economic cues.

Option Traders Corner

Max Pain

Nifty 50 – 24,600

Bank Nifty – 53,400

Nifty 50 – 24,639 (Pivot)

Support – 24,585, 24,531, 24,478

Resistance – 24,694, 24,747, 24,803

Bank Nifty – 53,501 (Pivot)

Support – 53,378, 53,180, 53,057

Resistance – 53,447, 53,246, 53,210

Did you know?

Indian Digital Milestone Achieved

India has generated over 138 crore Aadhaar numbers, transforming digital identity verification. DigiLocker now serves 37 crore users, securely storing 776 crore documents. The DIKSHA platform has facilitated 556 crore learning sessions and achieved nearly 18 crore course enrollments. 

Have you checked our latest Brand Ad

Newsletter: 11th December 2024

Highway Boost for HG

Aaj Ka Bazaar

Wall Street indices closed in negative territory on Tuesday as investors awaited a key inflation report that could influence the Federal Reserve’s upcoming interest rate decision. The S&P 500 declined by 0.30%, while the Dow Jones Industrial Average dropped by 0.35%. Gains in the communication services sector partially offset losses in the tech sector. Of the 11 sectors in the S&P 500, only three finished in positive territory, as markets braced for the November CPI report, one of the final major data releases before the Fed’s December 17-18 meeting. Asian markets also reflected investor caution as they awaited US inflation data to gauge whether the Federal Reserve might cut or maintain interest rates next week. Meanwhile, Indian benchmark indices are expected to open on a muted note, influenced by primary market activities and mixed global cues. This is further indicated by the GIFT Nifty, which is trading flat.  In stock-specific news, NTPC Green Energy’s subsidiary, NTPC Renewable Energy, secured a 500-megawatt solar power contract in the SECI auction. The project will deliver solar power at a tariff of 3.52 per kWh.

Markets Around Us

BSE Sensex –81,525.95 (0.02%)

Nifty 50 – 24,627.00 (0.07%)

Bank Nifty – 53,440.25 (-0.26%)

Dow Jones – 44,220.50 (-0.06%)

Nasdaq – 19,688.98 (-0.24%)

FTSE – 8,280.36 (-0.87%)

Nikkei 225 – 39,259.83 (-0.27%)

Hang Seng – 20,270.53 (-0.18%)

Sector: Civil Constructions

HG infra Gains on 763 cr deal

Shares of HG Infra Engineering rose over 5% to ₹1,532 in morning trade on December 11 after securing a ₹763.11 crore highway project from the Ministry of Road Transport and Highways (MoRTH). The project involves upgrading a 63.84-km stretch in Uttar Pradesh under the hybrid annuity mode (HAM) and is expected to be completed within two years. This is HG Infra’s second major order win in less than a month, following a ₹1,110 crore contract for battery energy storage systems announced in November. Despite a 16% drop in Q2 profit to ₹80.7 crore and a slight revenue dip, the company maintained stable operating performance, with improved margins of 24.3%. HG Infra’s stock, up 72% this year, continues to reflect market confidence in its growing project pipeline and operational resilience, making it a strong contender in the infrastructure space for traders and new investors alike.

Why it Matters:

This highlights HG Infra’s strong project pipeline and ability to secure high-value contracts, reinforcing its growth potential. The improved EBITDA margin shows operational efficiency despite revenue pressures, which is promising for investors. The stock’s 72% rally this year reflects market confidence, making it a key player in infrastructure development.

 NIFTY 50 GAINERS

ULTRACEMCO – 12032.00 (2.44%)

GRASIM – 2699.80 (1.68%)

TATACONSUM – 939.10 (1.33%)

NIFTY 50 LOSERS

DRREDDY – 1228.80 (-0.93%)

HCLTECH – 1924.75 (-0.60%)

ICICIBANK – 1322.90 (-0.57%)

Sector: Banking

IOB Shares Surge on ₹1,359 Cr Refund

Shares of Indian Overseas Bank (IOB) rose 3.4% to ₹38.85 in morning trade on December 11 after the bank received an income tax refund order of ₹1,359.29 crore for the 2015-16 assessment year, including interest. This is the latest in a series of tax refunds for IOB, following ₹1,238 crore in November and ₹123.8 crore in September. The bank’s financial performance has been strong, with a 24.4% rise in Q2 net profit to ₹777.2 crore and an 8.2% increase in net interest income. Asset quality also improved, with gross NPAs dropping to 2.72% and net NPAs declining to 0.475%. Over the past year, IOB’s stock has surged 30%, significantly outperforming the Nifty 50, signaling growing market confidence in the bank’s financial health and operational performance. This makes IOB a noteworthy stock for traders and young investors watching the banking sector.

Why it Matters:

The tax refund strengthens IOB’s cash position, supporting its growth and operational stability. Improved financial metrics like higher profits, better net interest income, and reduced NPAs highlight the bank’s strong performance. With a 30% stock rally in the past year, it signals growing market confidence in IOB’s turnaround and potential for further gains.

Desh Duniya Bazaar

Around the World

Asian stocks showed mixed performance on Wednesday as investors awaited key U.S. inflation data to gauge potential interest rate changes. Chinese stocks rose, with the Shanghai Composite up 0.4% and Hong Kong’s Hang Seng jumping 0.8%, driven by expectations of government stimulus announcements at the Central Economic Work Conference. Broader Asian markets saw modest gains, with Indonesia and South Korea showing strength, while Japan’s Nikkei fell 0.6% due to concerns over rising inflation possibly triggering rate hikes. In contrast, Australia, Taiwan, Malaysia, and the Philippines posted declines amid cautious sentiment. Geopolitical tensions in the Middle East also weighed on risk appetite, while U.S. stock futures edged higher after a technology-led decline overnight. Investors are watching for U.S. consumer price index data to gain insights into the Federal Reserve’s next steps, as mixed economic signals and geopolitical risks continue to shape market sentiment.

Option Traders Corner

Max Pain

Nifty 50 – 24,600

Bank Nifty – 53,400

Nifty 50 – 24,599 (Pivot)

Support – 24,521, 24,432, 24,354

Resistance – 24,688, 24,766, 24,855

Bank Nifty – 53,501 (Pivot)

Support – 53,378, 53,180, 53,057

Resistance – 53,700, 53,822, 54,021

Did you know?

Indian Digital Milestone Achieved

India has generated over 138 crore Aadhaar numbers, transforming digital identity verification. DigiLocker now serves 37 crore users, securely storing 776 crore documents. The DIKSHA platform has facilitated 556 crore learning sessions and achieved nearly 18 crore course enrollments. 

Have you checked our latest Brand Ad

Newsletter: 10th December 2024

EV Plans Drive Greaves

Aaj Ka Bazaar

Wall Street indices closed lower on Monday as investors braced for a key inflation report expected later this week. The S&P 500 declined by 0.61%, while the Nasdaq fell by 0.62%, driven by weakness in technology stocks, including Nvidia, a leading player in AI. Nvidia shares dropped following news of an antitrust investigation by Chinese regulators over suspected violations of anti-monopoly laws. In contrast, most Asian markets traded in positive territory after China’s leadership indicated plans for more substantial economic stimulus in the coming year. Beijing announced intentions for more proactive fiscal measures and a moderately looser monetary policy to revive domestic consumption and support economic growth. The Indian benchmark indices are expected to open on a muted note, reflecting mixed global cues. The GIFT Nifty is trading flat, signaling a subdued start. On the corporate front, Tata Power disclosed plans to invest Rs. 1.2 lakh crore in Rajasthan’s renewable energy sector, focusing on initiatives such as rooftop solar installations and electric vehicle charging infrastructure. This investment aims to position Rajasthan as a power-surplus state through significant energy-related advancements.

Markets Around Us

BSE Sensex –81,481.84 (-0.03%)

Nifty 50 – 24,613.20 (-0.02%)

Bank Nifty – 53,422.95 (0.03%)

Dow Jones – 44,372.29 (-0.06%)

Nasdaq – 19,727.67 (-0.67%)

FTSE – 8,352.08 (0.52%)

Nikkei 225 – 39,286.94 (0.30%)

Hang Seng – 20,637.12 (1.09%)

Desh Duniya Bazaar

Sector: Compressors, Pumps & Diesel Engines

Vijay Kedia's Bet Boosts Greaves

Greaves Cotton shares surged 9% to ₹232 in morning trade on December 10, continuing their upward momentum for the second day, as prominent investor Vijay Kedia purchased 12 lakh shares worth ₹25 crore in a block deal, representing 0.52% equity. This marks his first known investment in the company, coinciding with Greaves Cotton’s plans to list its electric vehicle (EV) subsidiary, Greaves Electric Mobility Ltd (GEML), through an IPO approved earlier this month. The stock hit a 52-week high of ₹215 on the NSE in the previous session, with trading volumes exceeding one crore shares. Greaves Cotton, which produces engines, power systems, and EVs, narrowed its Q2FY25 net loss to ₹14 crore from ₹375 crore last year, despite a 3% drop in revenue to ₹705 crore. The stock has gained 40% year-to-date, significantly outperforming the Nifty’s 13% rise over the same period.

Why it Matters:

Vijay Kedia’s investment signals strong market confidence in Greaves Cotton, boosting its stock performance. The planned IPO of its EV subsidiary, Greaves Electric Mobility, adds growth potential amid the EV sector’s rising prominence. With shares rallying 40% YTD, it showcases robust investor interest despite past financial challenges.

 NIFTY 50 GAINERS

SHRIRAMFIN – 3150.50 (1.40%)

APOLLOHOSP – 7263.65 (0.97%)

WIPRO – 306.10 (0.77%)

 

NIFTY 50 LOSERS

M&M – 3013.25 (-1.25%)

ONGC – 256.75 (-0.83%)

AXISBANK – 1154.45 (-0.76%)

Desh Duniya Bazaar

Sector: Pharmaceuticals

Biocon Stake Sale Boosts Syngene Shares

Shares of Syngene International rose 3% to ₹897.05 on December 10 after a block deal involving ₹706 crore worth of shares was executed, likely by promoter Biocon, which reportedly sold a 2% stake at ₹858.5 per share. This stake sale is expected to raise around ₹660 crore for Biocon, triggering a 60-day lock-in period for further sales. Despite Syngene’s shares falling 6% in the previous session due to concerns over the US Biosecure Act’s failure to pass, the market reacted positively to the block deal. The Act aimed to limit US-Chinese biotech partnerships and redirect contracts to Indian CDMO players, but its exclusion from a defense bill has softened investor sentiment. Biocon remains a key promoter of Syngene, holding a 54.45% stake. The stake sale and geopolitical developments underline Syngene’s potential and challenges in the CDMO sector.

Why it Matters:

Biocon’s stake sale in Syngene signals strategic capital allocation, boosting investor confidence. The failure of the US Biosecure Act highlights uncertainties for Indian CDMO firms in capturing redirected contracts. Syngene’s stock reaction reflects market optimism despite sector-wide geopolitical challenges.

Desh Duniya Bazaar

Around the World

Asian stocks rallied on Tuesday, led by gains in Chinese markets as optimism grew over the government’s commitment to implement fiscal stimulus and adopt looser monetary policies in 2025, highlighted during a Politburo meeting. The Shanghai Composite rose 1.6%, while the CSI 300 jumped over 2%, lifting sentiment across Asia. Hong Kong’s Hang Seng gained 1.5%, while Japan’s Nikkei 225 and South Korea’s KOSPI rebounded 0.2% and 2.4%, respectively, despite political concerns in South Korea. Broader markets like Singapore’s FTSE Straits Times and the Philippine PSEi rose 0.6% and 0.5%, reflecting optimism that China’s stimulus measures could support global demand, even as U.S. markets struggled with tech stock losses. U.S. futures remained flat ahead of key inflation data, and concerns over a potential U.S.-China trade war lingered, adding a layer of caution for regional investors.

Option Traders Corner

Max Pain

Nifty 50 – 24,600

Bank Nifty – 53,300

Nifty 50 – 24,634 (Pivot)

Support – 24,564, 24,509, 24,439

Resistance – 24,689, 24,759, 24,814

Bank Nifty – 53,503 (Pivot)

Support – 53,231, 53,054, 52,782

Resistance – 53,679, 53,951, 54,128

Desh Duniya Bazaar

Did you know?

Indian Digital Milestone Achieved

India has generated over 138 crore Aadhaar numbers, transforming digital identity verification. DigiLocker now serves 37 crore users, securely storing 776 crore documents. The DIKSHA platform has facilitated 556 crore learning sessions and achieved nearly 18 crore course enrollments. 

Have you checked our latest Brand Ad

Weekly Report: 09th December 2024

Weekly Trend Report

Week Gone By

The domestic equity benchmarks witnessed strong gains during the week, rising for the third week in a row. The BSE Sensex jumped 597.67 points or 0.74% to 80,845.75. The Nifty 50 index gained 181.10 points or 0.75% to 24,457.15. In contrast, global markets had mixed reaction as investors reacted to the recent political turmoil in South Korea. The Nasdaq and the S&P 500 rose to record closing highs on Friday following upbeat forecasts from Lululemon Athletica and other companies and as U.S. jobs data fueled expectations the Federal Reserve would cut interest rates this month.  To ease the potential liquidity stress, RBI has decided to reduce the CRR of all banks to 4.0% from 4.25% of NDTL in two equal tranches of 25 bps each .

 

Week Ahead

India’s retail inflation as measured by the consumer price index or CPI for November will release on Thursday, 12 December 2024. China’s inflation data for November will release on Monday, 9 December 2024. US Japan’s Business Confidence data for the fourth quarter will release on Friday, 13 December 2024. Globally, United States Core Inflation data for November will release on Wednesday, 11 December 2024 . Additionally, United States Producer Price Inflation data for November will release on Thursday, 12 December 2024.

Technical Overview
  • The Nifty50 index initiated the trading week on a positive trajectory after establishing immediate support within the previous gap-up area from the penultimate week. This favourable condition set a tone for the week, as the index demonstrated a pattern of higher highs throughout the trading sessions, culminating in a closure that marked a gain of 547 points compared to the previous week’s closing figure, albeit accompanied by relatively lower trading volume.
  • Notably, this performance corresponds to a third consecutive week of higher highs, effectively reversing 1,414 points of losses following a pronounced technical pullback from the 50-Weekly MA.
  • The VIX declined by 2% over the week, settling at 14.14, which reflects a reduction in market volatility. The conclusion of the trading week was characterized by major broader and sectoral indices maintaining their uptrend status, with no indications of persistent negative momentum, representing a positive shift in market dynamics.
  • From a market breadth perspective, the percentage of stocks trading above their shorter-term moving averages has entered the oversold zone.
  • Furthermore, the percentage of stocks trading above the 50-Day MA has exhibited a significant recovery, successfully reclaiming the median threshold after remaining below it for nine consecutive weeks. Stocks trading above 200-Day MA have remained above median levels for the consecutive week now, highlighting a substantial positive development. The sustainability of these trends is anticipated to contribute to the accumulation of bullish momentum across the general market.
  • In terms of momentum breadth, the number of participating momentum stocks has consistently improved, suggesting a potential transition from a hard-money to an easy-money market.
  • Technically, despite the Nifty50 index having reclaimed a pivotal resistance level near 24540 and the 50-Day MA moving average, specially the extended nature of broader indices over the past two weeks indicates that a modest pullback or consolidation phase may be warranted to consolidate bullish momentum.
  • The behaviour of the Nifty50 in the zone of 24790-25000 remains critical to monitor, as this area serves as a neckline for an inverted head and shoulders pattern that emerged in late October. The index is currently positioned with immediate support at the 50-Day moving average levels. Sustaining movement within the zone of 24500-24130 will be essential for the index to strengthen its bullish outlook and facilitate continued upward momentum.
  • The swing confidence remains at 100, indicating a stock-specific approach is advisable moving forward, allowing for maximum permissible open risk.

To view the detailed report click here to   Download 

Newsletter: 09th December 2024

CEAT Expands Tyre Empire

Aaj Ka Bazaar

The Wall Street indices, the S&P 500 and Nasdaq, traded in the positive territory, rising 0.25% and 0.8%, respectively, as investors increased bets on a potential interest rate cut this month following November payroll data reflecting strong job growth. The indices were further buoyed by optimistic earnings forecasts from companies such as Lululemon Athletica and Ulta Beauty. Meanwhile, most Asia–Pacific markets traded lower on Monday amid dampened risk sentiment due to political upheaval in South Korea and anticipation of fresh stimulus measures from Beijing. Indian benchmark indices are expected to open on a muted note, as idicated by the GIFT Nifty trading flat. In stock-specific news, JSW Energy’s subsidiary secured a letter of award from NTPC for a 400 MW ISTS-connected solar power project through tariff-based competitive bidding, enhancing its total generation capacity, which currently stands at 19.6 GW.

Markets Around Us

BSE Sensex –81,736.17 (0.03%)

Nifty 50 – 24,665.95 (-0.05%)

Bank Nifty – 53,566.45 (0.11%)

Dow Jones – 44,568.28 (-0.16%)

Nasdaq – 19,856.51 (0.79%)

FTSE – 8,308.61 (-0.49%)

Nikkei 225 – 39,165.14(0.17%)

Hang Seng – 19,740.81(-0.65%)

Desh Duniya Bazaar

Sector: : Tyres & Rubber Product

CEAT Surges After Camso Deal Approval

CEAT shares surged 9% to a record Rs 3,370 on December 9 after announcing a $225 million acquisition of Michelin’s Camso Off-Highway Tyre and tracks business. This move strengthens CEAT’s portfolio in high-margin segments like agriculture tyres, tracks, and material handling, boosting growth potential in the lucrative Off-Highway Tyres (OHT) market. Several brokerages responded positively, raising their price targets and maintaining “buy” ratings. Axis Capital expects an 11% upside, while IIFL and Investec see the deal driving earnings growth by FY26, with target prices up to Rs 4,000. While the acquisition aligns with CEAT’s strategy, analysts note potential challenges in integration. CEAT’s revenue grew 8.2% year-on-year in Q2, though net profit dipped 41.5%. Shares have rallied 28% this year, reflecting investor confidence in its growth trajectory post-acquisition. The deal highlights CEAT’s focus on expanding in speciality tyre markets to enhance profitability.

Why it Matters:

CEAT’s acquisition of Camso’s Off-Highway Tyre business strengthens its foothold in high-margin, growth-oriented markets like agriculture and construction tyres. This strategic move positions CEAT for long-term profitability and market expansion in specialty tyre segments. Positive brokerage reviews and a significant stock rally signal strong investor confidence.

 NIFTY 50 GAINERS

LT – 3926.00 (1.53%)

SBILIFE – 1461.75 (0.91%)

TECHM– 1798.55 (0.88%)

NIFTY 50 LOSERS

HINDUNLIVER – 2403.35 (-3.24%)

TATACONSUM – 954.75 (-2.02%)

BRITANNIA – 4791.35 (-1.63%)

Desh Duniya Bazaar

Sector: FMCG

FMCG Stocks Slide on Demand Worries

FMCG stocks faced heavy selling on December 9, led by Godrej Consumer Products, which dropped over 9% after a weak quarterly update raised concerns of a broader industry slowdown. Major players like Hindustan Unilever, Dabur, Marico, and Tata Consumer Products also declined 2-4%, dragging the Nifty FMCG index down by over 2%, making it the worst-performing sector of the day. Analysts highlighted slowing urban consumption, weaker economic growth, and minimal real wage hikes as key factors affecting volume growth and operating margins for FMCG companies. These challenges, previously noted in Q2 earnings, have reignited fears of a prolonged demand slowdown, impacting investor sentiment across the sector.

Why it Matters:

The FMCG sector’s performance is a key indicator of consumer spending and economic health. A demand slowdown signals weaker consumption patterns, affecting revenue growth and margins for major companies. This can lead to broader market implications, influencing investor sentiment and portfolio strategies.

Desh Duniya Bazaar

Around the World

Asian stocks were mostly lower on Monday, with South Korea’s KOSPI dropping over 2% to its lowest level in more than a year due to escalating political turmoil as President Yoon faces a criminal investigation and calls for resignation. Geopolitical tensions also weighed on sentiment, with unrest in Syria after rebel forces ousted the president and Israel entered the conflict. While Japan’s GDP data showed slight growth, it raised doubts about further rate hikes by the Bank of Japan. China’s inflation data revealed ongoing deflationary pressures and weak demand, with markets focusing on the Central Economic Work Conference for potential stimulus updates. Elsewhere, Philippine stocks dropped 0.7%, Australia’s market edged down 0.2%, and Hong Kong gained slightly. Global attention is on upcoming U.S. inflation data to gauge the Federal Reserve’s next move, as strong November jobs data still supports expectations for a rate cut next week.

Option Traders Corner

Max Pain

Nifty 50 – 24,600

Bank Nifty – 53,200

Nifty 50 – 24,683 (Pivot)

Support – 24,615,24,552,24,484

Resistance – 24,745,24,813,24,876

Bank Nifty – 53,512 (Pivot)

Support – 53,157, 52,805,52,449

Resistance – 53,865,54,220,54,572

Desh Duniya Bazaar

Did you know?

Indian Digital Milestone Achieved

India has generated over 138 crore Aadhaar numbers, transforming digital identity verification. DigiLocker now serves 37 crore users, securely storing 776 crore documents. The DIKSHA platform has facilitated 556 crore learning sessions and achieved nearly 18 crore course enrollments. 

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Newsletter: 06th December 2024

Korean Air Boosts Ramco

Aaj Ka Bazaar

On Thursday, US benchmark equity indexes retreated from Wednesday’s record closing levels as investor parsed the latest labour market data ahead of the official jobs report for November. Investors reacted to comments from Department of Labour that weekly applications for unemployment insurance in the US rose, while continuing claims declined. Whereas, Asian stocks opened mixed as political ructions in South Korea.  Moreover, Hong Kong stock market bouncing back from a weak session the prior day amid optimism that China’s central bank will deliver more monetary easing next year to spur growth and combat deflation. Considering the global market cues, the Indian benchmarks will likely have a positive start, extending a five-session winning streak, with the Sensex and Nifty closing at near two-month highs, with investors anticipating some form of policy easing from RBI after a sharp slowdown in economic growth. Indian investors increasingly believe the RBI will ease policy by lowering banks’ cash reserve ratio (CRR), which had sparked the rally in financials. On a stock-specific note, Canara Bank will be in focus as Canara Bank gets RBI’s approval to divest stake in Canara Robeco Asset Management and Canara HSBC Life Insurance through an initial public offering.

Markets Around Us

BSE Sensex –81,738.17 (-0.03%)

Nifty 50 – 24,700.00 (-0.03%)

Bank Nifty – 53,571.05 (-0.06%)

Dow Jones – 44,711.52 (-0.12%)

Nasdaq – 19,696.01 (-0.20%)

FTSE – 8,349.38 (0.16%)

Nikkei 225 – 39,039.74 (-0.91%)

Hang Seng – 19,873.09 (1.59%)

Desh Duniya Bazaar

Sector: : Software Product

Ramco Systems Soars: Korean Aviation Deal

Ramco Systems shares surged over 7% on December 6 after announcing a partnership with Korea’s Hanjin Group to offer advanced maintenance software for aviation companies. The collaboration combines Hanjin’s advisory expertise with Ramco’s Aviation 6.0 software, helping Korean airlines streamline processes, optimize supply chains, and improve engine maintenance. Korean Air, South Korea’s national carrier, is adopting this software for the first time, marking a key milestone. The partnership is backed by a multi-million dollar deal, including a contract over $10 million to transform Korean Air’s new engine maintenance facility, set to be Asia’s largest. This strategic win boosts Ramco’s credibility in the aviation tech space, likely encouraging more global aviation companies to consider their solutions.

Why it Matters:

This partnership matters because it positions Ramco Systems as a  leading aviation software provider, securing a significant $10M+ deal with Korean Air, South Korea’s national carrier. It boosts credibility and opens opportunities in the high-growth aviation tech market. Additionally, it supports the modernization of Asia’s largest engine maintenance facility.

 NIFTY 50 GAINERS

TRENT – 7129.15 (2.28%)

BAJAJ-AUTO – 9054.00 (1.82%)

HEROMOTOCO – 4707.90 (1.37%)

NIFTY 50 LOSERS

TCS – 4427.90 (-0.81%)

WIPRO – 297.25 (-0.68%)

LT – 3805.95 (-0.67%)

Desh Duniya Bazaar

Sector: Stockbroking

Angel One Slips On November Slowdown

Angel One shares dropped 4% on December 6 after the brokerage reported weaker business performance for November. Gross client acquisition declined to 0.6 million, down 14.6% from October and 11.9% compared to last year. Orders on the platform fell 23.5% month-on-month to 130.96 million but grew 22.2% year-on-year. The Average Daily Turnover (ADTO) was 12% lower overall compared to October, with the Futures & Options segment seeing a 12.5% decline. However, both metrics showed strong annual growth, up 24.1% and 23.3%, respectively. By 9:25 AM, Angel One’s stock was trading at ₹3,091, with a market cap of ₹27,800 crore.

Why it Matters:

This performance signals a slowdown in Angel One’s client acquisition and trading activity, impacting investor sentiment and causing a 4% drop in share price. While annual growth remains strong, the sequential decline raises concerns about short-term momentum. Investors will watch for recovery trends in coming months to assess growth sustainability.

Desh Duniya Bazaar

Around the World

Asian stocks fell on Friday as markets awaited key U.S. jobs data, following overnight losses on Wall Street. South Korea’s KOSPI dropped 1.6%, driven by political turmoil after the president’s controversial martial law decision. Other regional markets like Japan, Singapore, and Australia also declined, while Chinese stocks surged on hopes of stimulus ahead of an economic meeting. U.S. futures traded slightly lower, with attention on nonfarm payrolls data for clues on interest rates, as the Fed is expected to cut rates in December. In India, cautious sentiment prevailed ahead of the RBI’s interest rate decision, where most expect rates to remain unchanged at 6.50% despite high inflation and slower growth. Next week, markets will focus on China’s economic conference and inflation data, as well as India’s CPI numbers and Australia’s rate decision.

Option Traders Corner

Max Pain

Nifty 50 – 24,600

Bank Nifty – 54,000

Nifty 50 – 24,620 (Pivot)

Support – 24,383, 24,058, 23,821

Resistance – 24,945, 25,182, 25,507

Bank Nifty – 53,447 (Pivot)

Support – 53,006, 52,409, 51,968

Resistance – 54,044, 54,485, 55,082

Desh Duniya Bazaar

Did you know?

FPI buying resumes strong

Foreign Portfolio Investors (FPIs) made net purchases of ₹10,000 crore in Indian equities, breaking a 36-session selling streak. The shift came amid positive market sentiment following the BJP-led alliance’s win in Maharashtra. This marks renewed foreign interest in India’s stock market.

Have you checked our latest Brand Ad

Newsletter: 05th December 2024

China Boosts HEG Demand

Aaj Ka Bazaar

On Wednesday, Wall Street’s main indexes advanced, with the S&P 500 and Nasdaq reaching record highs, driven by gains in technology stocks. Investors reacted to comments from U.S. Federal Reserve Chair Jerome Powell, who stated that the economy is stronger than the central bank had anticipated in September. Whereas, Asian stocks open mixed today as a  ofter read on U.S. services data boosted investor confidence in the Federal Reserve lowering interest rates. Further, Hong Kong stock market is under pressure as investor are nervous about the effects of political instability in South Korea and France. Considering the global market cues, the Indian benchmarks will likely have a muted start, extending a four-session winning streak, as investors await the Reserve Bank of India’s (RBI) rate decision on Friday. On a stock-specific note, Indus Towers will be focused as the British telecom company Vodafone will sell a 3% stake in Indus Towers to clear its debt of Rs.856 crores, and use the residual amount to pay outstanding dues of its Indian venture, Vodafone Idea.

Markets Around Us

BSE Sensex –80,851.04 (-0.13%)

Nifty 50 – 24,423.05 (0.05%)

Bank Nifty – 53,153.00 (-0.21%)

Dow Jones – 44,984.84 (-0.06%)

Nasdaq – 19,732.87 (1.29%)

FTSE – 8,335.81 (-0.28%)

Nikkei 225 – 39,390.52 (0.29%)

Hang Seng – 19,547.01 (-1.00%)

Desh Duniya Bazaar

Sector: : Electrodes & Refractories

HEG shares surge amid block deal

Shares of HEG extended their winning streak for the third day, jumping over 6% to a near six-year high of ₹619 on December 5, following a ₹172 crore block deal. Around 28.8 lakh shares, representing 6% of the company’s stake, traded at ₹600 per share, a premium to the previous day’s closing price. HEG’s stock has surged over 40% in the past week, driven by news of China restricting graphite exports, sparking concerns of global supply shortages. This move could boost HEG’s demand as it recently expanded its graphite electrode plant capacity to 1,00,000 tonnes, the largest in the western world, giving it a cost advantage. In the September quarter, HEG achieved 80% capacity utilization, the highest globally, and remains confident about long-term growth despite pricing pressure. With these developments, HEG is positioned to benefit from potential supply constraints and improved market prospects.

Why it Matters:

HEG’s stock surge reflects its strategic advantage as global graphite supply faces potential shortages due to China’s export restrictions. Its recent capacity expansion and high utilization rates position it to capitalize on increased demand. These factors could significantly boost earnings and strengthen its market leadership.

 NIFTY 50 GAINERS

BHARTIARTL – 1598.60 (0.92%)

TCS – 4387.25 (0.75%)

TECHM – 1772.45 (0.73%)

NIFTY 50 LOSERS

BAJAJ-AUTO – 8833.50 (-1.84%)

NTPC – 366.60 (-1.65%)

POWERGRID – 320.15 (-1.51%)

Desh Duniya Bazaar

Sector: Pharmaceuticals

Torrent Pharma Eyes Anti-Diabetes Brand

Torrent Pharmaceuticals’ shares are in focus as the company announced the acquisition of three anti-diabetes brands—Cospiaq, Cospiaq Met, and Xilingio—from Germany’s Boehringer Ingelheim, with the deal set to complete by March 2025. Torrent has been co-marketing these brands in India since 2022, leveraging empagliflozin, a cutting-edge SGLT-2 inhibitor used to manage blood sugar levels in adults with type 2 diabetes. The acquisition strengthens Torrent’s position in the diabetes care segment, enhancing its product portfolio. In the September 2024 quarter, Torrent posted a strong 40% growth in net profit, reaching ₹460 crore. Additionally, the company received an Establishment Inspection Report (EIR) from the USFDA for its Pithampur facility in November, boosting its global regulatory compliance credentials. These developments signal Torrent’s growth trajectory and its focus on expanding its presence in high-growth therapeutic areas.

Why it Matters:

The acquisition strengthens Torrent Pharma’s position in the growing diabetes care market with established brands. Empagliflozin-based therapies are innovative and crucial for managing type 2 diabetes, a major health concern. Combined with strong earnings and regulatory approvals, this move boosts Torrent’s growth potential and market confidence.

Desh Duniya Bazaar

Around the World

Asian stocks mostly rose on Thursday, supported by Wall Street’s third consecutive record high, driven by a tech rally after Salesforce’s strong earnings. U.S. Federal Reserve Chair Jerome Powell highlighted the strength of the U.S. economy while hinting at a cautious approach to future rate cuts, providing some regional optimism. However, South Korea’s KOSPI index extended losses amid political turmoil after President Yoon’s brief declaration of martial law led to calls for impeachment, disrupting markets despite a 40 trillion won stabilization fund announcement. Broader Asian sentiment remained cautious, with Japan’s Nikkei and Australia’s ASX 200 gaining on positive economic data, while Hong Kong’s Hang Seng fell over 1% due to U.S.-China trade tensions. China’s markets remained stable, and India’s Nifty 50 futures pointed to a positive open ahead of the RBI’s rate decision. Investors globally await U.S. nonfarm payroll data for clarity on the Federal Reserve’s interest rate direction.

Option Traders Corner

Max Pain

Nifty 50 – 24,450

Bank Nifty – 53,600

Nifty 50 – 24,468 (Pivot)

Support – 24,364, 24,262, 24,157

Resistance – 24,571, 24,675, 24,778

Bank Nifty – 53,113 (Pivot)

Support – 52,839, 52,411, 52,137

Resistance – 53,540, 53,815, 54,242

Desh Duniya Bazaar

Did you know?

FPI buying resumes strong

Foreign Portfolio Investors (FPIs) made net purchases of ₹10,000 crore in Indian equities, breaking a 36-session selling streak. The shift came amid positive market sentiment following the BJP-led alliance’s win in Maharashtra. This marks renewed foreign interest in India’s stock market.

Have you checked our latest Brand Ad

Newsletter: 04th December 2024

Founder Stakes, Market Shakes

Aaj Ka Bazaar

On Tuesday, the S&P 500 and Nasdaq eked out record closing highs, with tech-related shares extending recent gains as investors awaited further jobs data. Investors will also pay close attention to Friday’s U.S. monthly employment report. Asian stocks opened mixed today as investors reacted to the recent political turmoil in South Korea, where martial law was briefly declared and then lifted within hours. Further, Japan’s index is down as investors remained focused on the outlook for monetary policy, with speculation that the Bank of Japan may raise interest rates later this month. Considering the global market cues, the Indian benchmarks will likely have a steady start, extending a three-session winning streak, while focus will remain on the domestic central bank’s interest rate decision later in the week. On a stock-specific note, Reliance Power will be focused as the company has announced that Solar Energy Corporation of India Limited (SECI) has immediately withdrawn its debarment notice. As a result of this, Reliance Power and its subsidiaries, Reliance NU BESS Limited, are eligible to participate in all tenders issued by SECI.

Markets Around Us

BSE Sensex -80,922.37 (0.09%)

Nifty 50 – 24,479.25 (0.05%)

Bank Nifty – 52,739.30.95 (0.08%)

Dow Jones – 44,808.60 (0.23%)

Nasdaq – 19,480.32 (0.39%)

FTSE – 8,359.41 (0.56%)

Nikkei 225 – 39,211.96 (-0.10%)

Hang Seng – 19,780.69 (0.05%)

Desh Duniya Bazaar

Sector: : Personal Care

Founder Boosts Stake, Stock soars 9%

Honasa Consumer, co-founded by Varun and Ghazal Alagh, saw its stock jump 9% after Varun increased his stake, bringing the couple’s total ownership to 35%—a rare move in India’s startup ecosystem where founders usually hold smaller stakes. Despite this positive news, the company is navigating challenges. Its stock has dropped over 38% year-to-date and recently reported its first quarterly loss in five quarters, with a ₹19 crore loss in Q2 FY25 compared to a ₹29 crore profit last year. Revenue also fell 7% year-on-year to ₹462 crore. While the stock has rebounded 25% in the past week from a sharp correction, concerns remain about slowing growth in the consumption sector. Analysts have downgraded the stock, citing weaker earnings and margins in the coming years. Traders and investors should weigh the recent rebound against ongoing challenges before making decisions.

Why it Matters:

Honasa Consumer’s rebound reflects renewed confidence due to increased founder stake, a rare move in startups. However, its financial struggles, including losses and revenue decline, highlight ongoing challenges in the consumption sector. Traders must assess if the recovery is sustainable amidst broader growth concerns.

 NIFTY 50 GAINERS

BEL – 317.10 (1.60%)

HDFCLIFE – 642.65 (1.36%)

SBILIFE – 1457.35 (1.14%)

NIFTY 50 LOSERS

BHARTIARTL – 1608.00 (-0.77%)

SHRIRAMFIN – 3132.30 (-0.74%)

CIPLA – 1524.70 (-0.60%)

Desh Duniya Bazaar

Sector: E-commerce

Swiggy rises with revenue, lower losses

Swiggy’s stock rose 3% to ₹517 after its Q2 FY25 results showed strong performance. Revenue jumped 30% year-on-year to ₹3,601.5 crore, growing from ₹3,222.2 crore in Q1 FY25, while net losses narrowed by 5% to ₹625.5 crore compared to last year, though slightly higher than the previous quarter. Monthly transacting users grew by 1 million, reaching 17.1 million, a 7% rise quarter-on-quarter and 19% year-on-year. Since its IPO at ₹390 last month, Swiggy’s stock has surged 33%, with its market cap crossing ₹1.16 lakh crore. The company is strengthening its competitive position in food delivery against Zomato and expanding its Instamart quick commerce segment with new dark stores. Swiggy raised ₹11,300 crore in its IPO, and its improved financials indicate potential for further growth, making it a stock to watch for traders and young investors alike.

Why it Matters:

Swiggy’s strong revenue growth and reduced losses signal improving financial health and competitiveness in the food delivery market. Its post-IPO stock surge highlights investor confidence in its growth potential. Expanding quick commerce capabilities positions it as a key player against rivals like Zomato.

Desh Duniya Bazaar

Around the World

Asian markets dropped on Wednesday, led by a 2% slump in South Korea’s KOSPI after President Yoon Suk-Yeol declared and quickly revoked martial law, sparking political turmoil and investor concerns. South Korean lawmakers are now pushing for impeachment, deepening uncertainty. Japan’s Nikkei 225 and China’s CSI 300 also fell slightly, with China reporting weaker services sector growth as U.S. trade restrictions add pressure. However, Chinese chip stocks rose as the government encouraged local production over U.S. imports. Australia’s ASX 200 slid 0.5% after weak GDP data pointed to sluggish household spending and lower commodity exports, though it raised hopes of rate cuts. Thailand’s SET Index gained 1.3% on potential rate cuts to support its economy. While the Philippines saw minor losses, India’s Nifty 50 futures indicated a positive start. Political and economic instability across the region, combined with global monetary policy concerns, kept investors cautious.

Option Traders Corner

Max Pain

Nifty 50 – 24,400

Bank Nifty – 52,600

Nifty 50 – 24,406 (Pivot)

Support – 24,330, 24,204, 24,129

Resistance – 24,532, 24,607, 24,733

Bank Nifty – 52,564 (Pivot)

Support – 52,348, 52,000, 51,784

Resistance – 52,912, 53,128, 53,476

Desh Duniya Bazaar

Did you know?

FPI buying resumes strong

Foreign Portfolio Investors (FPIs) made net purchases of ₹10,000 crore in Indian equities, breaking a 36-session selling streak. The shift came amid positive market sentiment following the BJP-led alliance’s win in Maharashtra. This marks renewed foreign interest in India’s stock market.

Have you checked our latest Brand Ad

Newsletter: 03rd December 2024

KPI Green's Bright Future

Aaj Ka Bazaar

On Monday, the S&P 500 and the Nasdaq Composite closed at all-time highs as markets assessed manufacturing sector data for November and remarks by Federal Reserve officials. On the Asiatic front, Asian stocks began positively today, buoyed by a strong performance in the tech sector after Wall Street reached record highs overnight. The dollar traded close to a six-week low against the yen as traders considered the outlook for interest rates in both the United States and Japan. However, Chinese stocks faced some challenges, with Hong Kong’s Hang Seng Index declining slightly and mainland blue-chip stocks also dropping. Considering the global market cues, the Indian benchmarks will likely have a muted start. Technology companies earning substantial revenue from the U.S. will be in focus after data indicated improving manufacturing activity in the world’s largest economy. On a stock-specific note, Solar Industries India will be in focus as the company and its subsidiary have received export orders worth Rs. 2,039 Crores for Supply of Defence Products, to be delivered over a period of 4 years.

Markets Around Us

BSE Sensex –79,519.29 (0.15%)

Nifty 50 – 24,367.50 (0.38%)

Bank Nifty – 52,357.95 (0.48%)

Dow Jones – 44,781.01 (0.01%)

Nasdaq – 19,403.55 (0.96%)

FTSE – 8,312.89 (0.31%)

Nikkei 225 – 39,275.91 (1.98%)

Hang Seng – 19,553.19 (0.01%)

Desh Duniya Bazaar

Sector: : Power Generation

KPI Greens gains on coal india order

KPI Green Energy’s stock is in focus today after securing its largest-ever order worth ₹1,311 crore from Coal India. At 9:44 am, the stock was trading at ₹803.45, up 3.11% on the BSE. The company will build a 300 MW solar power plant at GIPCL’s Solar Park in Gujarat on an EPC (engineering, procurement, and construction) basis, including five years of maintenance. This win follows the company emerging as the successful bidder for the project on November 30. KPI Green Energy also posted strong Q2 results with a 101% rise in net profit to ₹69.83 crore year-on-year. Over the past year, the stock price has more than doubled, with its 52-week high at ₹1,116 and low at ₹375. Currently, it trades 28% below its peak but is up 114% from its low, making it a stock to watch for potential growth.

Why it Matters:

KPI Green Energy’s largest-ever order strengthens its position in the renewable energy sector and showcases its ability to handle large-scale projects. The company’s strong financial performance and significant stock growth underline its potential for long-term value creation. This project also boosts investor confidence in its growth trajectory and execution capabilities.

Markets Around Us

ULTRACEMCO – 11630.20 (3.82%)

APOLLOHOSP – 7064.25 (3.45%)

GRASIM – 2686.00 (3.06%)

NIFTY 50 LOSERS

HDFCLIFE – 640.20 (-2.67%)

NTPC – 358.35 (-1.46%)

CIPLA – 1513.00 (-1.36%)

Desh Duniya Bazaar

Sector: Tobacco Products

GST hikes hits tobacco stock hard

Shares of ITC, Godfrey Phillips, and VST Industries fell on December 3 due to reports suggesting an increase in GST on cigarettes, aerated drinks, and other “sin goods” from 28% to 35%. The proposed tax hike, if approved by the GST Council on December 21, could significantly impact cigarette volumes as higher prices may lead to reduced consumer spending and increased demand for cheaper, illicit tobacco products. At market open, ITC shares dropped by 2.16% to ₹466.85, Godfrey Phillips declined 2.7% to ₹5,605.30, and VST Industries slipped 1.7% to ₹319.75. Analysts noted that stable taxes had previously supported volume growth, but the unexpected proposal raises concerns about future sales and margins. The last hike in tobacco taxes was 2% in February 2023, and any further increase could disrupt the recovery in the cigarette business for these companies.

Why it Matters:

The proposed GST hike to 35% on tobacco products could significantly reduce cigarette sales, impacting revenue for companies like ITC and Godfrey Phillips. Higher taxes may drive consumers toward cheaper, illicit products, hurting the legal market. This unexpected move could disrupt industry growth and investor confidence in tobacco stocks.

Desh Duniya Bazaar

Around the World

Asian markets saw gains on Tuesday, driven by strength in technology stocks, especially in Japan and South Korea, while Chinese shares fell due to new U.S. export restrictions targeting 140 Chinese companies. Japan’s Nikkei 225 rose 1.6%, with tech firms like Tokyo Electron and Advantest gaining over 3%, benefiting from reduced competition from Chinese chipmakers. South Korea’s KOSPI also climbed 1.6%, supported by Samsung Electronics and SK Hynix. However, Chinese markets struggled, with the CSI 300 and Shanghai Composite falling, as U.S. restrictions hit Chinese chipmakers like NAURA Technology and SMIC, leading to sharp declines in their stocks. These restrictions are expected to benefit non-Chinese semiconductor firms globally. Meanwhile, investors are awaiting Federal Reserve Chair Jerome Powell’s speech and upcoming U.S. economic data for insights on interest rate policies, while trade tensions between the U.S. and China remain a key concern.

Option Traders Corner

Max Pain

Nifty 50 – 24,300

Bank Nifty – 52,500

Nifty 50 – 24,195 (Pivot)

Support – 24,089, 23,902, 23,796

Resistance – 24,382, 24,488, 24,675

Bank Nifty – 52,000 (Pivot)

Support – 51,802, 51,496, 51,299

Resistance – 52,306, 52,503, 52,809

Desh Duniya Bazaar

Did you know?

FPI buying resumes strong

Foreign Portfolio Investors (FPIs) made net purchases of ₹10,000 crore in Indian equities, breaking a 36-session selling streak. The shift came amid positive market sentiment following the BJP-led alliance’s win in Maharashtra. This marks renewed foreign interest in India’s stock market.

Have you checked our latest Brand Ad