Google Pixel Boosts Dixon
- 02nd December 2024
Aaj Ka Bazaar
Global stock markets rallied on Friday, with Wall Street crowning November with its biggest monthly gain in a year on post-election growth hopes. The advance was on account of the rebound in technology stocks. On the Asian front, indices edged higher after US shares rose Friday as global markets entered a seasonally strong period. Meanwhile, Hang Seng was seen to be under pressure after registering its biggest gains five weeks earlier. Considering the global market cues, the Indian benchmarks are likely to have a subdued start, influenced by the GDP data released on Friday. On a stock-specific note, Aster DM Healthcare and Blackstone—and TPG-backed Quality Care India Ltd. will merge through a share-swap agreement to become India’s number three hospital operator.
Markets Around Us
BSE Sensex –79,519.29 (0.15%)
Nifty 50 – 24,140.85 (0.05%)
Bank Nifty – 52,087.65 (0.06%)
Dow Jones – 44,879.19 (-0.07%)
Nasdaq – 19,218.17 (0.83%)
FTSE – 8,287.30 (0.07%)
Nikkei 225 – 38,333.95 (0.33%)
Hang Seng – 19,465.62 (0.22%)
Sector: Consumer Electronics
Dixon Tech surges on google deal
Dixon Technologies’ shares surged nearly 6% to a 52-week high of ₹16,739 after its subsidiary, Padget Electronics, announced plans to mass-produce Google Pixel smartphones in collaboration with Compal Smart Device India. Production will take place at Dixon’s Noida plant under a contract signed earlier this year. The stock has gained 150% year-to-date, significantly outperforming the Nifty 50’s 11% rise. Analysts at Nomura maintain a “Buy” rating, targeting ₹18,654, citing potential revenue growth of ₹15 billion by FY26 from Pixel production. Dixon is expected to benefit from higher realisations per unit and its strong position in premium smartphone manufacturing as companies diversify away from China. The shift aligns with India’s growing role in global electronics, bolstered by the government’s proposed ₹400 billion incentives for local manufacturing, which could further enhance Dixon’s opportunities in high-value components like PCBs, camera modules, and lithium-ion cells.
Why it Matters:
Dixon Technologies’ collaboration to manufacture Google Pixel smartphones positions it as a major player in India’s growing electronics manufacturing sector. This aligns with the global shift away from China, opening significant revenue and growth opportunities. Additionally, government incentives for local production could further boost Dixon’s competitive edge and profitability.
NIFTY 50 GAINERS
MARUTI – 11250.35 (1.59%)
SHRIRAMFIN – 3058.60 (1.29%)
SUNPHARMA – 1803.75 (1.28%)
NIFTY 50 LOSERS
ONGC – 253.20 (-1.36%)
EICHERMOT – 4780.00 (-1.07%)
HDFCLIFE – 650.85 (-1.05%)
Sector: Banking
RBL Banks drops on partnership end
RBL Bank shares fell 4% after announcing the end of its eight-year partnership with Bajaj Finance for co-branded credit cards, citing changing synergies. Despite this, RBL plans to grow its credit card business through new partnerships with NBFCs like Mahindra Finance and consumer brands like IOC and IRCTC. Bajaj Finance was a key sourcing partner, and the move could slow credit growth by 200 basis points to 13-14% in FY25, with a potential dip in net interest income. Growth is expected to recover in H2FY25 as the bank ramps up collaborations with new partners to diversify its portfolio.
Why it Matters:
The end of RBL Bank’s partnership with Bajaj Finance impacts its credit growth and income due to Bajaj’s key role in sourcing customers. The bank’s shift toward new collaborations signals a strategic pivot to diversify partnerships. This development may temporarily affect financial performance but positions RBL for long-term growth.
Around the World
Asian stock markets rose on Monday, led by gains in China after positive factory activity data showed the economy is improving thanks to government stimulus. Key indexes like the Shanghai Composite and CSI 300 advanced, and China’s manufacturing PMI reached its highest level since June. Other markets, like South Korea, Japan, and the Philippines, also saw small gains, while India’s Nifty 50 slipped slightly. However, overall gains were limited due to concerns over potential U.S. tariffs on BRICS countries and ongoing trade tensions. The U.S. Federal Reserve’s rate decisions and key economic data are in focus this week, along with the Reserve Bank of India’s upcoming rate decision. Meanwhile, Japan’s factory output continues to shrink, and Australia’s retail sales beat expectations, helping its markets inch higher. Traders are watching for global economic cues as markets weigh optimism in China against broader trade and inflation challenges.
Option Traders Corner
Max Pain
Nifty 50 – 24,100
Bank Nifty – 52,500
Nifty 50 – 24,082 (Pivot)
Support – 23,976, 23,820, 23,714
Resistance – 24,237, 24,343, 24,498
Bank Nifty – 51,995 (Pivot)
Support – 51,819, 51,583, 51,408
Resistance – 52,231, 52,406, 52,642
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.
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