India Market Wrap 23 July 2023

This week's market action in less than 5 mins!

Hi 👋! It's Sunday, and thank you for signing up.
The about page for TheWrap is here.

This week’s market action in one line

Reliance births a new company, market consolidates, global inflation nose dives, recession….what is recession

The Wrap #004

Market Breadth as of 23rd July 2023

This week far more stocks ended in red than in green - as market consolidates and momentum takes a breather. In terms of indexes, Nifty PSU Bank was the best performing index for the week - returning 3.96% while worst was Nifty IT, returning a -3.47%. Infosys downward revenue guidance really spooked the investors.

Some stocks are still making double digit moves in a week but there is no common theme among them. Some noteworthy moves this week comes from Dodla Dairy (🔼 23.92%), Newgen Software Technologies (🔼 23.98%), Sterling and Wilson Solar (🔼26.6%).

We are in the thick of the earnings seasons and percentage of stocks above 40W EMA are close to all time high. My expectation is markets will continue to consolidate at least till the end of the earnings season.

Current environment is not a good risk:reward scenario to open new positions and you have to be increasingly company specific going forward instead of sector specific.

I don’t like to cover too much macros here, but since its important, would like to highlight that inflation across the globe is reaching close to long term averages and those recession fears are done and dusted.

India is expected to be the highest growing economy for next 6 years starting 2024.

Number of Stocks showcasing strength per sector

Here are couple of interesting charts for the upcoming week.

Fiem Industries

Finolex Cables

Parag Milk Foods

NRB Bearings

Here is a link to all 440 stocks in my watchlist for the upcoming week.

Here are this week’s important insider trades.

Buying

1. AVG Logistics - Promoters bought 22.04cr (equivalent of 7% of shareholding)

Selling

1. Patanjali Foods - Promoter sold 2900cr (equivalent of 6% of shareholding)

Joint Ventures

1. HAL to establish a JV with Safran to manufacture helicopter engines in India

2. Deep Industries enters into a JV with Focus Energy

Capacity Expansion

1. Menon Bearings to set up new Aluminum Castings and Engine Bearings capacity

2. Selan Exploration beings commercial gas sales from its Karjisan field

3. Shree Ajit Pulp and Paper starts commercial production from its new unit

4. Praveg new hotel in Gujarat

5. Som Distilleries receives approval to supply in Rajasthan

6. Ramkrishna Forgings starts commercial production from new plant

7. Shyam Metallics starts commercial production of TMT and Long Products

8. Lemon Tree opens a new hotel in Lucknow

9. Captain Pipes new capacity to add 20% sales volume

10. RDB Rasayans to expand flexible bulk container business in Odisha

11. Rudra Global increases TMT Bar production capacity by 50%

12. Olectra Greentech to construct a new EV factory in Telangana

13. Torrent Power commissions 115MW Wind Project in Gujarat

14. Venus Pipes triples capacity

15. Spray King Agro new facility at Jamnagar

Mergers and Spin Offs

1. Refnol Resins and Indokem Limited to merge - here and here

2. Saregama demerger record date is 27th July

3. Demerger details of Metro Brands spin off

Order Wins

1. AlphaGeo India wins order worth 39cr from ONGC

2. Alphalogic (recently listed) order win from Haldirams

3. RPP Infra Projects wins order worth 138.24cr

4. Taylormade Renewables receives order worth 1.54cr from Asian Paints for effluent treatment

5. IRCON wins order for 144cr

6. Ashok Leyland new order worth 800cr

7. L&T receives order worth 2500cr

8. BL Kashyap secures order worth 369cr from DLF

9. Newgen secures order worth 34cr

10. LTTS wins order worth USD 50 Million

11. PNC Infra signs agreements worth 3264.43cr with NHAI

12. Kings Infra 200cr order win

13. SJVN 300MW of Renewable Energy Projects

14. Shah Metallics receives new export order worth 40cr

15. L&T secures a 7000cr order for civil infra business

Acquisition and Open Offers

1. Sheela Foam acquires 94.66% of Kurl On for 2035cr and 35% of Furlenco for 300cr

2. Endurance Technologies increases stake in Maxwell, a battery management system company

3. Belgium govt backed telecom provider Proximus Opal to acquire majority stake in Route Mobile, triggering an open offer at 1626.4/share

4. Jupiter Wagons acquires a bankrupt company via IBC

5. 7NR Retail Ltd acquires 8.62% stake in Magenta Lifecare

6. Tata Chemicals increases stake in Rallis by 5%

7. DB Realty acquires a realty firm in bankruptcy

8. HCG consolidates stake in cancer clinic in Nagpur

9. Mastek acquires a Cloud Services firm in US

10. Bikaji Foods acquires stake in Bhujialalji brand

11. Vishnu chemicals acquires baryte ores company for 26cr

12. Ramkrishna Forgings acquires a automobile casting company for 212cr

USFDA

1. USFDA visits Aurobindo plant

2. USFDA inspection at Dr Reddy's facility

3. USFDA Inspection at Aurobindo

4. USFDA inspects Biocon Biologics plants in Malaysia

Bonus Issue

1. Vivanta Industries to issue bonus shares

2. GNA Axles Ltd to issue bonus shares

Rights Issue

1. Brooks Lab rights issue

2. Credent Global Finance rights issue

3. Ashnoor Textiles rights issue

4. IRB Infra Trust rights issue

Buyback

1. Indiamart Intermesh

2. L&T

3. Aarti Drugs

Preferential Allotment

1. Vidli Restaurants Preferential Allotment

2. Federal Bank to issue shares to IFC for ~965cr

3. Sagar Soya Products preference issue

Fund Raising

1. Jammu & Kashmir Bank to raise 1750cr

2. Texmaco Rail and Engineering to raise 500cr

3. Happiest Minds raises 500cr via QIP

Exchange Migration

1. BSE SME to BSE Main Board Growington Ventures India

First Presentation or Concall

1. Magnum Ventures first presentation

2. Eco Recycling Limited first conference call

3. Cyient DLM first presentation

Other Important Announcements

1. Adani Group starts supplying power from India to Bangladesh

2. Surana Telecom and Power sells its wind energy business

3. Indsil Hydro Power and Manganese Ltd shuts plant due to high electricity tariffs impacting 37% of topline

4. Sundaram Clayton will now be known as TVS Holdings

5. Toyam Sports new deal with Major League Cricket

6. Godrej Agrovet gets 47,000 acre land from Telangana to cultivate and produce oil palm trees

7. Gravita's recycled lead is now approved to be delivered against MCX lead futures

8. Rama Steel Tubes strategic alliance with JSW Steel

9. Ransomware attack at ITL Industries

10. Plant shut down for DCW Ltd

11. Shree Cements to undergo detailed inspection of books and premises as per 'order of inspection' from Ministry of Corporate Affairs

12. CEO CFO and Auditor change at Lotus Chocolates

13. Krsnaa Diagnostics loses contract with Govt of Rajasthan

14. GAIL to explore bio-recycling of carbon waste to fuels and chemicals

15. Argentina to buy Light and Medium Utility Helicopters from HAL

16. East Bridge continuous selling in Teja Networks

17. SJVN and REC to finance renewable projects worth 50,000cr

18. Fire at Bhageria Industries Plant

19. Trident Ltd gets a patent in Europe

20. Lupin launches a new product in Germany

21. Power Finance Corporation signs agreements worth 2.37lakh cr to fund clean and renewable energy projects

22. SEBI issues a show cause notice to TCNS Clothing Ltd

23. Lupin receives approval from USFDA for its HIV AIDS medicine

24. Sterling and Wilson commencing federal litigation against two customers in US

1. Drone Destination - A drone training and consultancy

2. AccelerateBS India - An IT Services company

3. Ahasolar Technologies - A Solar Consultancy

4. Kaka Industries - A PVC Doors and other home product manufacturer

5. Utkarsh Small Finance Bank - A Small Finance Bank (duh!)

Deep Dive into the India’s Agri Input Industry

That was 5 mins!
Go enjoy the rest of your weekend, see you next Sunday!

If you like this post. Please like, share and subscribe - in that order.

Did you like today’s issue (or hated it?). Leave a comment and let me know!

Peace ✌️
Tar

---

Disclaimer: The information provided in this article is for informational purposes only and should not be construed as investment advice. The analysis and insights presented are based on publicly available information, and while efforts have been made to ensure accuracy, we cannot guarantee the completeness or reliability of the information.

Investing in securities carries inherent risks. This post should not be relied upon as a substitute for independent research or consultation with a qualified financial advisor.

The author of this post and the platform on which it is published do not provide personalized investment recommendations or financial advisory services. Any investment or trading decisions you make based on the information provided in this post are solely at your own risk.

Neither the author nor the platform shall be held responsible or liable for any loss or damage arising directly or indirectly from the use of or reliance on the information contained in this post. Readers are encouraged to conduct their own due diligence and seek professional advice before making any investment decisions.

By accessing and reading this post, you acknowledge and agree to the terms and conditions outlined in this disclaimer.