Hello investors, welcome to this week's stock market wrap up!
The first half of the week gone by saw Indian markets putting aside Budget blues and scaling new record high.
Investors were handed a reality check on Friday when global markets tumbled owing to US slowdown concerns.
Indian benchmarks fell over 1%, erasing most of the gains made during the week.
The Indian market is trying to figure out the future. But should you actually be worried about the US slowdown?
It depends on your time horizon to be honest. If you are investing for next week or next month, you better pay very close attention to the short-term gyrations of the stock market.
But if you are investing for the long-term, which is probably measured in 5+ year timeframes, then most of what you read in the news will be noise.
Coming to the weekly performance of Indian share markets, benchmarks BSE Sensex and NSE Nifty moved marginally while the broader markets saw many individual stocks shoot up to 32% in a week!
Here are the top gainers and losers from each of these indexes -
Company | Current Price (Rs) | Weekly Change (%) |
---|---|---|
NTPC Ltd. | 419.65 | 6% |
Asian Paints Ltd. | 3107.05 | 5% |
Power Grid Corporation Of India Ltd. | 358 | 4% |
Adani Ports and Special Economic Zone Ltd. | 1587.85 | 3% |
HDFC Bank Ltd. | 1659.55 | 3% |
Tata Consultancy Services Ltd. | 4283 | -2% |
ITC Ltd. | 489.3 | -3% |
Tata Steel Ltd. | 158.2 | -3% |
Infosys Ltd. | 1821.4 | -3% |
Mahindra & Mahindra Ltd. | 2748.75 | -5% |
Company | Current Price (Rs) | Weekly Change (%) |
---|---|---|
Torrent Power Ltd. | 1850.55 | 19% |
Ajanta Pharma Ltd. | 2829.3 | 18% |
Kansai Nerolac Paints Ltd. | 302.6 | 10% |
Oil India Ltd. | 606.1 | 8% |
Clean Science And Technology Ltd. | 1649.7 | 8% |
Oracle Financial Services Software Ltd. | 10381.15 | -6% |
ACC Ltd. | 2436.1 | -7% |
Exide Industries Ltd. | 509.15 | -8% |
Mphasis Ltd. | 2774 | -8% |
Macrotech Developers Ltd. | 1231.2 | -12% |
Company | Current Price (Rs) | Weekly Change (%) |
---|---|---|
Neuland Laboratories Ltd. | 11073.4 | 32% |
PCBL Ltd. | 376.95 | 30% |
TCPL Packaging Ltd. | 3196.25 | 26% |
Ester Industries Ltd. | 144.35 | 25% |
Black Box Ltd. | 557.35 | 24% |
Waaree Renewable Technologies Ltd. | 1510.05 | -13% |
Udaipur Cement Works Ltd. | 36.11 | -15% |
Birlasoft Ltd. | 605.55 | -17% |
Aegis Logistics Ltd. | 735.6 | -18% |
Mahanagar Telephone Nigam Ltd. | 75.13 | -23% |
In latest developments from the insolvency and proceedings space, Adani group company Adani Power has emerged as the frontrunner for acquiring KSK Mahanadi Power's 1,800-megawatt plant.
Adani Power has made the highest bid of Rs 27,000 crore, ensuring a 92% recovery for the lenders.
This is a good rate and it's highly likely that Adani Power may win this bid. Usually, the recovery rate is much lower compared to the 92% offered by Adani.
Note that other big companies including Capri Global Holdings, Coal India, NTPC, Vedanta, JSW Energy, Jindal Steel & Power, among others, had also put their bids.
This bid by Adani makes sense as well as the group had shown interest in acquiring KSK Mahanadi even before it was admitted for insolvency in October 2019.
Back in 2018, it had offered Rs 10,300 crore, but backed out in February 2019 after the Uttar Pradesh government revised tariffs downward.
In latest developments from the electric vehicles (EV) space, US carmaker Ford is considering re-entering India's auto market with a new strategy focused on electrics and sustainability.
The company exited India in 2021 but is now preparing for the possibility of new investments and production aimed at both local sales and exports.
To put things into context, Ford's history in India dates back to 1995. Despite three decades in the country and partnerships with Mahindra & Mahindra, the company struggled to establish a stable business.
But this time it's different.
There's a big and new EV policy that aims to promote India as a manufacturing hub for EVs and attract investments from global manufacturers.
With the new policy providing a bank guarantee as well, this is the perfect time for global manufacturers to consider India as their next production destination.
It remains to be seen how Ford plans to scale its EV plans in India...
Pharma major Sun Pharma is expected to hog the limelight when the trading sessions open on Monday as the company's much anticipated US commercial launch of its specialty product Leqselvi (deuruxolitinib) is facing uncertainty due to a patent dispute.
Leqselvi, which is used for the treatment of alopecia areata, an autoimmune disease that leads to hair loss, was approved by the US Food and Drug Administration (USFDA) last week.
For months, the pharma company has been making preparations to launch the drug. But an injunction motion by the American drugmaker lncyte Corporation in the US District Court for the District of New Jersey has put the brakes on the launch.
Ola Electric, the Bhavish Aggarwal-led EV company, opened for subscription on 2 August 2024.
As expected, retail investors piled on and the portion set aside for them was fully subscribed within the first three hours of subscription.
The company has set a price band of Rs 72-76.
Another good company FirstCry is also set to open its IPO for subscription on 6 August 2024. The omnichannel retailer has fixed the share price at Rs 440-465 apiece.
Another big development that transpired in the IPO markets this week was SEBI's proposal to minimize IPO application delays and clearing time. Sebi chief Madhabi Puri Buch said they're working to start a template-based fill-in-the-blanks kind of application form which will be processed with the help of artificial intelligence (AI)!!
To demystify the entire process of IPO filing and making it easier for all the young companies waiting to list, the team is working on starting a templatised fill-in-the-blank form which will make it simpler.
India currently ranks No.1 on the global map in terms of number of IPOs and issuances anywhere in the world with almost one issuance every trading session.
Nevertheless, it's always prudent to conduct thorough research before investing in any IPO. Ensure that the investment aligns with your financial objectives and matches your risk tolerance level.
For more information on IPOs, check out the list of upcoming IPOs.
Tata group company Tata Electronics will have its Bhoomi Poojan function for its first chip assembly and testing unit at Assam today.
Earlier this year in February, the Union Cabinet had approved proposals of three semiconductor plants, out of which two were in Gujarat and one in Assam.
When the proposals were approved, Tata Electronics said its Assam OSAT facility would focus on three key platform technologies - Wire Bond, Flip Chip, and a differentiated offering called Integrated Systems Packaging (ISP).
It also had plans of expanding the roadmap to advanced packaging technologies in the future.
Next week is a crucial one as worries grow in the US market over Fed's interest rate decision.
Experts are of the view that the Fed has kept interest rates high for too long, which is hurting US economy.
Investors got a reality check this week when global markets slumped over worrisome economic data. Data released in recent days shows that US job growth slowed more than expected in July, while the unemployment rate increased to 4.3%.
The keyword - Recession - which was not talked about for a long time, is once again talked about. A deteriorating labor market could make the US economy vulnerable to a recession.
In US, big companies like Caterpillar and Walt Disney are expected to post earnings next week. This will set the stage for smaller counterparts and give more insights into the health of the consumer and manufacturing segments.
Ideally, a slowdown in the US economy will impact Indian markets as well.
But as we have written to you before, the Indian market is not being driven by foreign money anymore... at least that's not the key factor.
Domestic funds are still being pumped in by the retail and the HNI crowd. As long as the liquidity tap keeps flowing, the market's direction should be up.
The valuations of the market are also not yet a cause for concern. At a PE ratio of 23.5, the Nifty is still not in the danger zone.
Last week, we wrote about how the market had put the disappointment of the budget behind it and was poised to go up. That assessment was correct. The markets scaled new highs this week.
But this situation could change, and you should not get complacent.
Get rid of junk stocks in your portfolio. These are stocks with poor fundamentals.
It will be very interesting to watch the capital flows. Stay tuned to this space.
Hope you all have a great weekend.
Happy Investing!
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Yash Vora is a financial writer with the Microcap Millionaires team at Equitymaster. He has followed the stock markets right from his early college days. So, Yash has a keen eye for the big market movers. His clear and crisp writeups offer sharp insights on market moving stocks, fund flows, economic data and IPOs. When not looking at stocks, Yash loves a game of table tennis or chess.
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