MarketBuzz
1301: Marketbuzz Podcast with Hormaz Fatakia: Nifty down for the week; Indus Towers, VST Industries in focus
Good morning and welcome to CNBCTV 18's Market Bus Podcast, I am Hormis Vadakya. Well, last night has been full of major announcements and most of those came when most of you would be all set to retire for the night. So, let's take you through some of them. Now, in confirmation of a CNBCTV 18 news break, mankind pharma will acquire Bharat Syrup's for an enterprise value of 13,630 crore, which expands its high entry barrier portfolio. Now, CNBCTV 18's Rajanadand Rajani was the first one to report on this on the 14th of May this year that mankind pharma is in the lead to acquire Bharat Syrup's soon. Mankind's management said that the women's health and fertility segment is a massive opportunity with strong growth visibility along with structural tailwinds. So, keep an eye out on mankind pharma today. Now, we've all heard of companies announcing bonus shares, but VST Industries yesterday announced that it will issue 10 bonus shares for every one share held. No, I'm not saying it the other way around. The company will indeed issue 10 bonus shares for every one share held as on the record date, which has been fixed of August of 30th this year. Now, the numbers from the company though were a disappointment with profit declining 36%. The margins also narrowing to 22% from 31% last year and EBITDA also seeing a drop of 30% year on year. So, interestingly, a day ahead of the results, Radhakesh and Damani through his entities sold around 2.3% stake in the company. Damani, those still remains one of its largest shareholders with a stake of nearly 35%. Indestowers announced last evening that it will hold a board meeting on the 30th of July and they will consider a buyback of its shares along with its quarterly results. Now, the last time Indestowers carried out a share buyback was back in 2016 when the company was known as Parthi Infratel. Earning's reactions continue with Tech Mahindra reporting a mild beat to already subdued expectations. Now, it became the fourth out of the six IT companies that are part of the NFT 50 index that reported a positive revenue growth in constant currency terms after TCS, Infosys and LTI Mindtree. The MD and CEO, Mohit Joshi said that their core communications business which got around one-third of the revenue for the company, that is improving. But there are no green shoots yet. The pace of the decline is what is slowing down in that business. So, keep an eye out on Tech Mahindra today. Now, DLF's new sales bookings for the quarter student over 6,400 crore rupees which is triple of last year and it said that the residential segment is witnessing a structural up cycle and it continues to strengthen the company's new product pipeline. United breweries reported an all-around volume growth of 5% compared to expectations of an 8 to 9% growth. The premium business though did very well with a 44% growth in volumes, but the popular segment turned out to be a drag. Now, the gross margins expanded to 43% and the company intends to drive further margin accretion through revenue management and cost initiatives. A block deal may take place in Soba today. We saw one in RBL Bank yesterday. Now, in Soba, Anamudi real estate is likely to sell 5% out of the 9.9% stake that it currently has via block deals. That is valued at close to 100 million dollars. The deal price is set to be at a discount of 6% to Thursday's close and after this deal, there will be a lock-in period of 90 days for the sale of further shares. Now, Anamudi real estate is owned by the Godrich family. Ramco Simmons, MGL, A.U. small finance bank, Emphasis, Science, Motilah, there is a lot of companies that will be reacting to their results today. I'm just highlighting a few of them and since it's been an extremely busy earnings week, that continues today as well. Because Sipla, Indusin Bank, Power Grid, Interglobe Aviation or Indigo, Amber Enterprises, Chola, Mandalum, KC International, Paramal, Pharma, SBI cards, that list is endless for the companies that are coming out with results today and we'll keep you updated on all of these names as well. Now, back to the markets then, well, it's the final trading day of the week and the Nifty has practically moved nowhere even a week as volatile as this one. The template of the buying on dips has continued though and the question here now is whether the bulls have enough conviction to take the Nifty back to last Friday's high, which was well past that mark of 24/8/50. For the week, the Nifty is down half a percent and it needs to close above the 24/5/30 mark to ensure that its seven-week winning run does not end. Now, remember 24/500 has now become a key resistance for the Nifty, which earlier used to be a support. It's also the first day of the new series. We'll keep an eye out on that as well. The pressure continues to come from banks and if it is not HDFC bank, it is access NICICI and vice versa. The Nifty bank has now closed below the mark of 51,000 and is down over two and a half percent for the week. In the last three trading sessions, the index has seen a correction of more than 1,300 points. What has also been silently selling off though are the high-flying PSUs, particularly those the shipbuilders and those in the railways. IRFC was down for the eighth day in a row yesterday, which was its longest losing streak in three years. The mass now dock and its peers have also corrected over 20% from their record high levels, which they had hit in earlier of this month. The US markets were mixed last night and the sell-off in big tech continued leading to the S&P 500 and the NASDAQ underperforming yet again. The Russell 2000 was up over a percent. Now, the concentration of this year's rally is evident from the fact that the S&P 500 ended in the negative despite 300 stocks on the index reporting games. Now, the gift nifty as we speak is indicating a marginally positive start for our own markets. That's all for today. We wish you a happy Friday and a happier weekend. Of course, stay tuned to CNBC TV18 and CNBCTV18.com for the sharpest market insights. [BLANK_AUDIO]