The Wrap 24 Sep'23 | A Big Week for Macro

Your weekly digest of everything important in Indian Markets.

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A Hawkish Fed, Global Markets React, Bond Yields Rip, Big Week for Macro Data, Oil marches towards $100 zone, Indian Bonds find place in Global Bond Emerging Market Index

Market Breadth for the Week Ending 24th Sep 2023

Click here to read about how to understand and interpret the above grid.

For months macro doesn’t matter and then suddenly it does.

It was a big week for central banks and macro factors played a large role in deciding the overall sentiment and direction of the global markets.

Rate Decisions by Central Banks this past week

The US Fed left interest rates unchanged on Wednesday but guided for a hawkish view with commentary on room for further rate increases in 2023.

If you’re new to investing, here is a general rule of thumb - market hates a hawkish Fed and any talk of interest rate increases. Why? You can read all about it here and here.

So how did the market actually react to Fed commentary?

Short answer, not well.

Nasdaq 100 closed🔻3.3%, S&500 at🔻2.93% followed by Dow Jones at🔻1.89% . Our markets didn’t fare all too well either, Nifty closed the week at 🔻2.57%, Midcap 100 at 🔻1.69% and Smallcap 100 at 🔻2.48%.

Other important macro indicators like US10Y, Dollar Index, Oil and Gold are all entering uncomfortable territory.

But wait! Not all is gloom and doom at the macro front.

In some happy macro economic news, Indian bonds are finally cementing their place in Global Emerging Market Bond Index. This is an event that has been in the making for several years now.

Inclusion in the global bond index will help India attract more foreign capital towards its bonds - currently a mere 2% of India’s bonds are owned by foreign institutions. Higher demand for bonds helps the Govt easily raise funds and that rupee at 82.95/USD, expect that to appreciate as well.

There is a more detailed video in the curated section to understand the full impact.

So what does all of this mean for you as an investor?

I have been advocating caution for several weeks now in all the past issues of TheWrap - here, here and here, for example.

Percentage of Stocks above 40W EMA

Combine the deteriorating macro indicators along with market breadth that is close to its all time high and it doesn’t take much to understand that we are in turbulent times ahead.

A few months of mild correction and consolidation seems to be on the cards.

Time to dust off that watchlist and prepare for a buying opportunity.

Five Best Performing Stocks of This Week

1. Jindal Photo (🔼 51.47%)

   

2. IFCI Ltd (🔼 37.61%)

   

3. KIOCL Ltd (🔼 28.09%)

   

4. AGI Greenpac Ltd (🔼 24.19%)

   

5. PNB Gilts Ltd (🔼 21.52%)

   

Five Ideas for Upcoming Week

1. Ratnamani Metals & Tubes

   

2. Bandhan Bank

   

3. Shoppers Stop

   

4. Sundaram Finance

   

5. Vaibhav Global

   

Click below button to see all stocks in my watchlist across various sectors.

This week’s important insider trades:

Buying

1. Unichem Labs: IPCA Labs buys additional 20% worth 598.33cr

2. Narmada Gelatines: Promoters buys 1.78% worth 4.86cr

3. Jindal Photo: Promoters buy 0.79% worth 3.06cr

Selling

1. Aditya Vision: Promoters sell 5.45% worth ~146.26cr

2. Electronics Mart India: Promoters sell 5.28% worth ~275.84cr

3. Praxis Home Retail: Promoter sells 2.75% worth ~9.45cr

Capacity Expansion / New Ventures

1. Automobile Corporation of Goa to invest ~17.97cr to upgrade and increase existing bus body manufacturing capacity

2. Indigo Paints commences production at its latest plant in Tamil Nadu

3. Captain Pipes to set up a new plant at cost of 25cr

4. Radico Khaitan commences production from its latest facility

5. Artson Engineering to increase fabrication capacity by 70%

6. Nikhil Adhesives launches a new product

7. Marshall Machines new product launch

8. Kaka Industries Ltd inaugurates its new plant in Gujarat

9. Natural Capsules inaugurates its new small volume production and R&D blocks

10. Lloyds Metals and Energy commences production from its latest plant

11. Finolex Cables launches new smart switch and smart door lock products

12. Iris Clothing inaugurates first EBO in Kolkata

13. Delay at capacity expansion for Borosil

14. Gujarat Toolroom sets up a subsidiary to enter precious stones and jewellery business in Dubai

Joint Ventures / Collaborations

1. Amber Enterprises launches a JV to manufacture all products for 'Noise' brand

2. Va Tech Wabag partners with a Middle East based water company

3. Kajaria partners with a UK company for selling tiles in Europe

4. SJVN and PFC collaborate to provide financial assistance to 1.18 lakh cr worth of renewable and thermal power projects

5. Garden Reach Shipbuilders signs MoUs with Lloyds and Caterpillar

6. Total Energies to invest further USD 300M in Adani Green

7. IFC and Suntek Realty to partner for investing upto USD 90 Million in green urban housing in Maharashtra

8. Tata Power collaborates with Dugar Power to accelerate Nepal's Renewable Energy Initiatives

9. TruCap Finance Ltd collaborates with HDFC Bank to co-lend to MSME's and Gold Loans

10. Ratnamani Metals & Tubes partners with a Swiss based firm for piping and tubing technology

11. Inflame Appliances to partner with Havells to manufacture Chimneys and OTGs

Order Wins

1. NBCC Ltd wins order worth 150cr

2. RMC Switchgears receives an order worth 112cr

3. Atishay Ltd wins a new order worth ~15cr

4. Genesys International Corporation wins an order worth 67cr

5. ITCONS E-Solutions wins an order worth ~33lakhs

6. Tantia Constructions Ltd receives a new order worth ~62.6cr

7. WPIL Ltd receives a new order worth 14.3cr

8. Shashijit Infraprojects receives a new order worth 12cr

9. BL Kashyap receives a new order worth 167cr

10. HFCL receives a new order worth 1015cr

11. Salasar Techno Engineering secures a new order worth USD 9.4 M

12. BDL receives new order worth 290.9cr

13. Rajnandini Metals receives new orders worth 60.33cr

14. Aksh Optifibre receives new order worth 13.43cr

15. DMR Hydroengineering & Infrastructures Ltd receives new order worth 12.5 lakhs

16. Ideaforge Technologies receives new order worth 58cr

17. NBCC Ltd receives new order worth 100cr

18. ABB Ltd secures orders to power hydrogen fueled container ships

19. Aha Solar receives new order for 25 lakhs

20. AVG Logistics wins an order worth 72cr from an FMCG company

21. IRCON secures a new order from Sri Lanka Railways for 122cr

22. Kranti Industries receives a new order worth EUR 55,000

23. NCC Ltd JV with J Kumar Infraprojects receives a new order worth ~3200cr

24. Cosmic CRF receives a new order worth 20cr

25. Suzlon secures a new order worth 29.4MW

26. KPI Green Energy receives a new order to set up 145.2MW Wind and Solar Plant

Acquisitions

1. KIMS Hospitals acquires further 11.52% of an under construction hospital

2. SChand to acquire a higher education and technical manual book distributor in India for 20cr

3. Genpharmasec acquires 70% stake in a pharma formulations company

4. PDS Ltd acquires UK based womenswear brand

5. Nirma to acquire 17.33% stake in Glenmark Life Sciences for ~1343cr, presentation here

6. IPCA Labs further acquires 19.29% of Unichem Labs for 945cr

7. Exhicon Events Media Solutions completes 51% acquisition of Maple Heights Business Center LLC

8. Lupin to acquire five legacy brands from an Italian formulations company at a cost of 101cr - here and here

9. Inox Green Energy to acquire a wind turbine operations and maintenance company

10. Vaibhav Global acquires a UK TV shopping channel

Open Offers (Takeovers)

1. Classic Filaments detailed Letter of Offer

2. Miven Machine Tools detailed Letter of Offer

3. Essar India Ltd

USFDA / Regulatory

1. Zydus receives a EIR from for one of its formulation facility

2. Aurobindo completes FDA inspection at its plant

3. USFDA completes inspection at Cipla's US manufacturing facility

4. Caplin Point receives final ANDA approval for its new product

5. Zydus receives final approval for its new product

6. Dishman Carbogen Amcis completes inspection by Swiss and Italian authorities for its plant

Merger / Spin-offs

1. Demerger of Power Distribution & Transmission business from Bajaj Electricals

2. Edelweiss Wealth Management business spun off from Edelweiss Financial Services to list on 26th Sep

Offer for Sale

1. Govt of India to sell 4.92% stake in SJVN

Buybacks

1. BSE Ltd

2. Siyaram Silk Mills Ltd detailed buyback letter

Rights Issue

1. Syschem India rights issue record date is 29th Sep

2. Marshall Machines rights issue record date is 29th Sep

Incidents

1. United Auto Workers strike to indirectly impact Sona Comstar

2. United Auto Workers strike to affect Suprajit Engineering

3. Explosion at Nitta Gelatin factory

4. Workers strike at Coal India

Fund Raising

1. Mishtaan Foods raises 99.9cr via issue of convertible warrants

2. NIBE Ltd to raise upto 90cr via private placement of shares

3. Bluestar Ltd raises 1000cr via QIP

4. Shree Pushkar Chemicals to raise 15.13cr via issue of convertible warrants

5. DB Realty raises 1544cr

6. Kings Infra raises 35.5 lakhs via private placement of NCDs

7. KBC Global raises 3.85cr via preference issue

8. Bajaj Finserv raises 500cr via NCDs

9. Mehai Technology raises 6.25cr via preferential issue of warrants

10. IndiGrid raises 403.5cr via preferential allotment of units

11. Gujarat Alkalies and Chemicals borrows 450cr via loan

12. Godrej Industries to raise 500cr via issuance of NCDs

13. Manappuram Finance to raise 1000cr via private placement of NCDs

14. Hindustan Foods to raise 400cr via issuance of convertible warrants

15. Swan Energy raises ~1435cr via preference issue

16. Aditya Birla Capital to raise 2000cr via issuance of NCDs

17. Karnataka Bank to raise 1500cr

18. SBI raises 10,000cr via issuance of long term bonds

Exchange Migration

1. Secmark Consultancy Ltd to migrate from BSE SME to BSE Main Board

Name Change

1. Essar Securities Ltd to Yunik Managing Advisors Ltd

First Presentation or Concall

1. First Concall, Pyramid Technoplast

2. First Concall, Gillette India

3. First Concall, Procter & Gamble Hygiene and Health Care Ltd

4. First Presentation, Procter & Gamble Hygiene and Health Care Ltd

5. First Presentation, Gillette India

6. First Presentation, Wardwizard Foods & Beverages Ltd

Other Important Announcements

1. Bajaj Holdings and Investments invests ~2.03cr in Jupiter Life Line Hospitals Ltd

2. Coromandel invests 3cr in a drone start up

3. Biocon gets a new CEO

4. Sundaram Multi Pap Ltd to sell its industrial land

5. Venus Remedies to expand its portfolio in Southern Europe

6. Regency Ceramics starts operations again with first deliveries in Chennai

7. TVS Motors to launch India's first Electric Two Wheeler Racing Championship

8. Ambuja Cements incorporates a subsidiary to own and lease aircrafts

1. Jiwanram Sheoduttrai Industries: Textile company specializing in safety gloves

2. Unihealth Consultancy: Operates Hospitals

3. Dynamic Archistructures: NBFC company

4. EMS Ltd: A EPC company

5. Hindustan Housing Company: Administrative Services for Bajaj Group

6. Hindustan Agrigenetics: A genetic seeds company

7. Jupiter Life Line Hospitals: Operates Hospitals

8. Kahan Packaging: A Bulk Packaging manufacturer

9. Meson Valves India: A Valves manufacturer

10. R R Kabel: Leading cables and wires company in India

11. Samhi Hotels: Operates Marriott, Holiday Inn and Sheraton Hotels

12. Zaggle Prepaid Ocean Services: A financial technology company

1. How US is reclaiming share from China in solar manufacturing

2. Which sectors is Madhu Kela betting on?

3. What India’s inclusion in Emerging Bond Index means?

That was 5 mins!
Thank you for reading, have a nice weekend ahead.

Tell us how we are doing?
Let me know in comments, your feedback helps me keep improving this newsletter.

See you next Sunday!

Peace ✌️
Tar

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