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The worst day of 2023, PSU Banks shines through, Companies line up for IPOs
Market Breadth as of Week Ending 17th Sep 2023
September 12th, 2023, marked the most significant single drawdown day of the year. Such occurrences are uncommon, with the last one happening nearly 9 months ago on December 23rd, 2022.
Only time will reveal whether this signifies the beginning of a correction or just a hiccup in the current bullish market. My prediction leans towards a mild correction in specific sectors, with strong stocks remaining resilient.
Count of Stocks falling more than 3% in a single day
In the midst of this tumultuous week, PSU banks stole the spotlight. The PSU banking index emerged as the top performer of the week, delivering an impressive weekly return of over 6.13%.
IT, Pharma, Autos, and Private Banks also held their ground, while everything else either remained stagnant or dipped into negative territory.
India Sectoral Index performance for this week
One individual who has been consistently advocating for PSU banks is Madhu Kela. Amid the challenges of 2022, Madhu identified an opportunity in PSU banks early on with a straightforward thesis: NPA cycles were at their lowest, provisions were at an all-time high, and the turning interest rate cycle leading to higher net interest margins.
Here is the interview from 2022, I am sure he is laughing all the way to the bank today.
ITI (🔼 57.93%) NIIT (🔼 50.18%) Silver Touch Techno (🔼 25.6%) Rane Madras (🔼 24.95%) Andrew Yule & Co (🔼 22.48%) Bandhan Bank Aarti Pharma Labs Avanti Feeds Bajaj Auto Bank of India
This week’s important insider trades:
Usha Martin: Promoters increase stake by 0.31% worth ~33.34cr Kinetic Engineering: Promoters increase stake by 9.7% worth ~28.38cr Mangalam Cement: Promoters increase stake by 1.06% worth ~10.65cr Restaurant Brands Asia: Promoter sells 24% stake worth ~1494cr Shyam Metalics: Promoter sell 6.1% stake worth ~701cr VRL Logistics: Promoter sell 3.66% stake worth ~238cr KRBL: Promoters sell 1.74% stake worth ~173.1cr Capacity Expansion Amara raja launches a new product Cosmo First's pet care brand to expand in Tier 2 cities PCBL commissions its latest carbon black facility NTPC Ltd commissions 800MW thermal power plant Add-Shop E-Retail opens 25 new franchise across India ACC Ltd commences production from its latest clinker plant Aditya Birla Group (Grasim) launches its paint business under the brand name 'Birla Opus' Pioneer Group commences production at its new embroidery facility Trescon Ltd acquires land to construct a residential project in Thane Almondz Global Securities expands capacity of its ethanol plant GE Shipping acquires a medium range product tanker Sterlite Technologies commences its manufacturing plant in US Joint Ventures / Collaborations Hindalco's Novelis enters into a long term agreement with Ball Corporation in US to supply sustainable aluminum sheets for manufacturing beverage cans Hindalco to partner with an Italian firm to manufacture high speed rail coaches in India Aditya Birla Fashion to partner with Christian Louboutin Axiscades partners with Cantier to build manufacturing systems RITES Ltd signs MoU with CFM Angola to collaborate on railway sector Tata Power to collaborate with Small Industries Development Bank of India for easy financing of solar projects Tata Power signs power distribution agreement with Xpro India Adani signs a 50:50 JV with Kowa Holdings to supply and market green ammonia and green hydrogen related products in Japan Bharat Forge to collaborate with UAE based Paramount for manufacturing defence armored vehicles in India L&T to collaborate with BAE Systems for manufacturing a defence armored vehicle in India PI Industries signs collaboration agreement with Koppert Sun Pharma signs licensing agreement with Pharmazz Inc to introduce a new product in India Equippp partners with BSE to promoter social exchange in India - here & here Tata Steel partners with UK Government on one of the largest investments in UK Steel industry Order Wins DJ Mediaprint & Logistics receives new order worth 2.3cr PowerGrid wins a contract to build transmission infra in Rajasthan HFCL secures new order worth 82.6cr NBCC receives 31.4cr order from IRCTC to design its new office GE Power India receives new order worth 25cr from Vedanta ITCONS E-Solutions receives new order worth ~30cr Ajmera Realty & Infra receives redevelopment project order for ~330cr Jyoti Ltd receives new order worth 7.25cr Mahindra EPC Irrigation receives new order worth 7.23cr KEC International receives new orders worth 1012cr Waaree Renewables receives new order to set up 52.6MWp solar power plant ITCONS E-Solutions receives a contract to provide recruitment services to PhonePe Infosys secures a 15 year USD 1.5 Billion deal Intellect Design Arena secures a deal with a Zimbabwe Bank to implement end to end digital banking transformation Patel Engineering Joint Venture wins a contract for ~250cr Aurionpro wins a rapid transit bus project contract from city of Merida in Mexico Artefact Projects receives a new order for 6.57cr Shakti Pumps receives a new order for 293cr WPIL Ltd receive a new order for 14.3cr Alfa Transformers receives a new order from L&T for 53lakhs Rajshree Polypack receives new order from Ferror India worth ~18cr Ami Organics signs a contracts with a Finland company to supply pharma intermediates - here & here Bharat Electronics receives new orders worth 3000cr IFL Enterprises wins an order worth ~ 198cr Patel Engineering JV wins an order for 202.3cr Acquisitions Laurus Labs buys additional stake in Laurus Bio for 71.6cr KIMS Hospitals acquires further stake in another hospital for ~20cr Aurobindo Pharma gets marketing and manufacturing rights for Pfizer's products in Indonesia market for USD 48M Crisil acquires a renewable energy consulting firm Trent acquires a minority stake in a Starquick, online grocery business of Tata GMM Pfaudler acquires a Canada based professional mixing equipment company Religare Enterprises secures approval to acquire an online insurance aggregator Gensol Engineering acquires a solar tracker manufacturing firm Kirloskar Ferrous Industries to acquire a ferrous casting and machining company out of bankruptcy Excel Industries to acquire at least 26% stake in First Energy 7, a solar energy company, for 5.42cr Elpro International acquires a NBFC for 3.34cr Open Offers (Takeovers) Cupid Ltd Ayoki Merchantile Unick Fix A Form and Printers USFDA / Regulatory Strides receives USFDA approval for three new products - here , here and here Gulfic Biosciences receives approval from Australian pharma regulator for its new product Zydus receives USFDA approval for its product Merger / Spin-offs Record date for merger of Pressman Advertising with Signpost India is 22nd Sep National Peroxide to spin off its investment and chemicals business Offer for Sale Shyam Metalics and Energy Buybacks Larsen & Tubro increases buyback price to 3200/share Sinclairs Hotels buyback record date is 29th Sep Siyaram Silk Mills increases buyback price from 650 to 720 per share Rights Issue Bhandari Hosiery Exports Incidents Fire at SportKing India facility Protests at Greenply's Gabon unit Delisting Shreyas Shipping & Logistics Fund Raising Kinetic Engineering raises 28.38cr from promoters Mishtann Foods to raise ~100cr via warrants and upto ~200cr from promoters as a loan Bajaj Finserv raises 1195cr via NCDs Kings Infra raises 87.3 lakhs via NCDs Credit Access Grameen raises 989.58cr via NCDs Alkosign Ltd raises 16.27cr via preferential allotment Transformers and Rectifiers to raise 120cr via preference issue Aditya Birla Fashion completes 750cr fund raising Ballarpur Industries raises ~60cr via various means Shree Ajit Pulp and Paper raises 392.91cr in loans from a consortium of banks led by SBI Baroda Rayon Corporation raises 75cr from a consortium of banks to fund its commercial real estate project Texmaco Rail & Engineering raises 1050cr via QIP and preferential allotment to promoters Thomas Scott to raise funds via preferential issue of warrants Exchange Migration Diamines & Chemicals to migrate to NSE Main Board Name Change Tamboli Capital to Tamboli Industries Indo Asia Finance Ltd to Challani Capital Ltd Shaba Chemicals to Satiate Agri Ltd First Presentation or Concall First Presentation, TVS Supply Chain Solutions First Concall, TVS Supply Chain Solutions First Concall, Concord Biotech First Presentation, HP Adhesives First Presentation, Jubilant Industries Other Important Announcements Change of Promoters at Cupid Ltd ITI Ltd launches its own laptop and micro pc brand TCS joins The Living Heart Project to create a digital accurate model of human heart Pace E-Commerce Ventures launches its own e-commerce platform GQG Partners increases stake in IDFC First Bank KKR invests 2069.5cr in Reliance Retail Ventures at a valuation of 8.361 lakh cr Tata Power receives financing from International Development Finance Corporation (DFC) to build its 4.3GW Solar cell and module manufacturing plant Coal India to spend over 24,000cr on improving first mile connectivity of coal mines Bharat Forge invests further 50cr in its EV and e-mobility subsidiary Gulfic Biosciences secures a patent Insecticides India secures a patent Adani Wind's turbine gets regulatory approval to be sold commercially Delhivery launches a new location intelligence platform Bharat Forge invests USD 6M into US based Harbinger Motors Greaves Cotton launches an EV 3W for cargo transportation - here & here Rane Madras divests its US based subsidiary for USD 4.9 Million Basilic Fly Stud: A VFX company Pramara Promotions: A marketing and advertising agency Saroja Pharma Industries: A trader of Speciality Chemicals Ratnaveer Precision Engineering: A Precision Engineering of Stainless Steel Rishabh Instruments: A Meters and Switches manufacturer Shradha Industries: An IT Services company China's Property Crisis More on China’s Property Crisis Cargo Ship Traffic Jam at Panama The Return of Airships That was 5 mins! 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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.