MarketBuzz
1269: Marketbuzz Podcast with Hormaz Fatakia: Suzlon, Mphasis in Focus; Macron dissolves assembly
Good morning and welcome to CNBC TV18's market bus podcast. I am Harmas Patakia. Well, it was a week that will go down in history books as a one to remember. This will certainly be spoken about when we review the year gone by towards the end of December. The Sensex made a record high on Friday. The Nifty fell 20 point short of surpassing its own record high. Now, this happened in a week when both these indices have their biggest single day fall in four years. 30 lakh crore worth of investor wealth was wiped out in that one session on Tuesday when the looks of election results were not in line with what the exit polls had suggested. However, with more clarity emerging on the NDA forming the government, the market set out on the recovery path and come Friday, the entire 30 lakh crore lost on Tuesday was fully recovered. The Sensex and the Nifty ended nearly 4% higher for the week, which was their best week of 2024. So far, the broader markets, which had a sharper fall on Tuesday, saw an equally sharper rebound with the mid cap and small cap indices also ending the week with gains of 3% each. The two big events are out of the way as well. Narendra Modi was sworn in on Sunday becoming only the second Indian leader to have had three consecutive terms in office as prime minister and along with him, a 72 member strong union cabinet was also sworn in portfolio allocation though is still awaited. The RBI monetary policy also did not show up any negative surprises with a slight uptake in the F 525 GDP forecast and the inflation forecast being left unchanged. For this week now, all eyes will be back on the US Federal Reserve and its upcoming meeting of the FOMC on the 11th and the 12th of June. The Fed now having become notorious for its flip flops on when and whether it will cut interest rates this year has pushed the market towards some degree of caution. Now, the estimates at least for now are expecting a Fed rate cut in September. Yet, many market participants on Wall Street still continue to maintain that the Fed may not cut rates at all in 2024. The US markets on Friday ended marginally lowered due to the stronger than expected jobs report. The benchmark tenure treasury yield rose by over 15 basis points post this news. Yet, the benchmark indices ended the week with gains. The Dow Jones with modest ones, the S&P 500 was up over 1.3% for the week and the NASDAQ gained nearly 2.5% this week. Now, Asian markets have opened mixed this morning while the gift nifty is indicating a marginally negative start for our own markets who only par for the course, I guess, considering the week that we've had. With the major events now out of the way, the focus has shifted back to stock specific activity and of course PSUs will continue to remain in focus as they are the ones that are yet to recover the extremely heavy losses that they saw last Tuesday. But in other stocks that you need to watch out for today, a major block deal is likely to take place in emphasis where BCP Topco is likely to sell up to 10.6% equity in this deal. There is also an option to upsize the stake up to 15.1%. Now, at the upsized option, the stake sale can be valued at close to 7,000 crore rupees. As of the March quarter shareholding, BCP Topco held a 55.1% stake in emphasis. Now, post this stake sale, there will also be a lock-in period of 180 days. Dr. Reddy's will also be in focus after the US FDA issued four observations to its Shrikakulam facility in Andhra Pradesh along with the form 483. That facility was inspected between the 30th of May to the 7th of June of 2024. The company has said that it will address these observations within the stipulated time. Now, Casey International has won orders worth over 1,000 crore rupees across various businesses. Its transmission and distribution business has won projects in India, East Asia and the Americas. The railway's business has also won orders in India, while the cable's business has won an order for the supply of conductors from a leading infrastructure player in the country. With this, the company's total order intake for FY25 so far has crossed 3,000 crore rupees. Suprajith Engineering has made an announcement last night and they said that it has signed a share and asset purchase agreement for the acquisition of a company called SCS out of insolvency proceedings in Germany. Now, Suprajith is expecting this acquisition to add 50 million euros in revenue once the acquisition is completed. Now, this deal is said to be done at an enterprise value of 13.5 million euros and its equity value will be lesser after deducting corporate debt and other debt like items. Watch out for Suzan as well. Today, where one of its independent directors resigned over the weekend citing corporate governance issues. Now, the director in a letter addressed to group Chairman Vinotanti said that while he is pleased with the financial performance of the company in the last 12 to 18 months, he found that the company did not meet some of the corporate governance standards he expected, particularly with regards to communication. Now, more details on this are available on cnbctv18.com. Now, Godavari power and his path will hold a board meeting on the 15th of June to consider a buyback of equity shares. This will be the second buyback that the company will be carrying out after the one that they did last year, which was in 2023. It also conducted a one is to one stock split in 2021 and issued bonus shares as well in that same year. So, keep that stock on your radar as well. Now, lastly, in some big global updates that have come up, French President Emmanuel Macron on a Sunday said that he would dissolve the country's parliament and call for a new legislative nationwide vote after suffering a heavy defeat at the European Union elections. That shock announcement came after exit polls published by a public broadcast of France TV indicated that Marine La Pen's far right national rally is set to win around 31 and a half percent of the vote compared to just 14 and a half percent for Macron's Renaissance party. And lastly, to sign off on a good note, India beat Pakistan in New York in the world T20 by six runs in a match that went well past 1am Indian time. With this, India has mostly set one foot into the playoffs while Pakistan's hopes now hang by a thread. That's all for today. It has rained a lot in Mumbai last evening and overnight as well. There have been many reports of water logging in many areas. So stay safe when you venture out. We'll bring you all the live updates on CNBCTV18.com and with of course the sharpest market insights. Thank you for tuning in. Have a safe and wonderful day. [BLANK_AUDIO]