MarketBuzz
1251: Marketbuzz Podcast with Hormaz Fatakia: Ghatkopar collapse updates; Vedanta, JSPL in focus
[MUSIC PLAYING] Good morning, and welcome to CNBC TV18's Market Bus podcast. I'm Hormis Fatakea. I hope all your listeners are safe after the horrific few hours that Mumbai cars face last evening post the storm. For the latest updates on this and the hoarding collapse in Ghat Koper, we have CNBC TV18, Santhya Gora joining in. Santhya, good morning. What is the latest update? 14 people have died so far in the illegal hoarding collapse case. 43 are injured. They are hospitalized. NDRF search and rescue operations are underway. There are two teams of NDRF on the spot. Mumbai police has also filed an FIR against Bhavesh Vinde, the director of Ego Media and others. The FIR has sections of culpable homicide not amounting to mother and causing grievous hurt to somebody by an act endangering their lives and personal safety. As per the IMD's latest update, there is no warning of any kind of a thunderstorm for Mumbai. For nearby areas like Thani and Palgar, IMD has mentioned that there is a possibility of a thunderstorm, but IMD hasn't mentioned how strong or serious the thunderstorm could be. Only for Rhaigarh and Navi Mumbai comes under Rhaigarh. IMD has mentioned that there's a possibility of a thunderstorm and the wind speed can go up to 30 to 40 kilometer per hour. Santhya, thanks a lot for that update and absolutely tragic incident they're taking place in Ghat Koper. And for more on this, you can log in to cnbctv18.com for the latest updates. Back to the markets then and volatility is the word for the markets in this May series. Now since the 23rd of April, when the India weeks made a low of 9.8, the index has more than doubled and is now well above the mark of 20. We've been highlighting this on our channel for the last few days that FIRs have been heavily net short in the market and that may trigger prospects of a short covering. Now the NFT did see some short covering yesterday but not before it fell to levels below 21.850. The bulls though will be hoping that yesterday's low of 21.8.21 will be the swing low for the recent cycle after having seen lows of 21.777 last month and of course the March low of 21.710 which the bulls have managed to defend with all their might. The NFT recovered nearly 300 points from the lows yesterday and ended above the mark of 20 to 100. However, one must note that 22.150 and 22.200 continue to remain barriers for the NFT for further upside. The NFT bank though was the outperformer yesterday as both HDFC Bank and ICICI Bank contributed to the recovery. The index broke below its 100-day moving average intraday before staging a recovery. There is no significant handover from Wall Street as the benchmark indices ended flat. But then our markets have mostly been indifferent to global queues positive or negative over the last 8-10 days. The gift NFT as we speak is indicating a marginally positive start but the key point here is that the start needs to sustain. In some specific stocks that you need to watch out for this morning now Vedanta and dividends are back. The company will consider the first interim dividend for F525 at its board meet on the 16th of May which is this Thursday. Additionally, it will also consider fundraising proposals through various methods. Remember, Vedanta paid dividends worth nearly 40,000 crore rupees in FY23 is currently undergoing a demerger process and is also facing repayment obligations. While billionaire founder Anil Agarwal has maintained that the company has enough cash to service its debt, the street has had mixed reactions to this. Earlier this year, Vedanta Resources, the parent company, got consent from bond holders to restructure four series of bonds two of which were due this year itself. The other big news though comes from Shiram Finance, the latest NFT entrant after it announced that it will exit its housing finance business by selling its entire 85% stake in Shiram Housing Finance to Wabat Pincus for a sum of 4,630 crore rupees. Post this transaction, Shiram Housing Finance will operate as a standalone entity. The remaining stake in Shiram Housing Finance is held by Valiant Capital Management, the California-based private equity player. JSPL reported earnings after marketers yesterday, where its EBITDA per ton was higher than expectations, as were volumes and EBITDA. Now, what worked for the company this quarter? Well, my colleague Nigel D'Souza tells me that it was hard to see the higher steel prices which were up by 1,000 rupees a ton, a 30 to 40 dollar per ton dip in coking coal costs and the benefits of increased captive thermal coal that came to the aid of JSPL this quarter. However, net debt increased by nearly 2,000 crore rupees from the December quarter and currently stands at well over 11,000 crore rupees. DLF expects the demand momentum in the residential segment to remain strong and that it plans to launch more than 11 million square feet of new products in FY25, targeting markets like Guru Graham, Mumbai, Goa and Chandigarh. It also acquired a strategic opportunity in sector 61 in Guru Graham, offering development potential of nearly 7.5 million square feet and estimated sales potential of over 20,000 crores. Now, bookings for the quarter saw a bit of a dip, both on a year on your and a sequential basis for DLF, but that is also courtesy a high base. So, we'll keep DLF on our radar as well. It's another earnings heavy day now with stocks like Bharati et al, Siemens, Colgate, Palmelev, Shree cement, Apollo tires, idea force among other names will be reporting results through the day. Cochin Shipyard has won an order that ranges between 500 to 1,000 crore rupees from a European client for the construction of a hybrid service operation, Wessel or an SOV. The project is expected to be completed by the end of 2026. Now, for most stocks that are in focus, do log in to cnbctv18.com and that's all for today. We hope you all stay safe and have a wonderful day of trade ahead. Stay tuned to cnbctv18 for all the updates on the cartooper holding collapse and of course, the markets.