MarketBuzz
1273: Marketbuzz Podcast with Hormaz Fatakia: Ambuja, Vodafone Idea, Suzlon in the spotlight
Good morning and welcome to CNBC TV18s Market Bus Podcast. I'm Dharma Spatakia. The final trading day of the week has arrived and the last few weeks have been weeks of contrast for the market. You know, a couple of weeks earlier, the Nifty made a record high but ended the week with losses. Last week, the Nifty had the biggest single-day drop in four years but then ended the week with gains of 3%. This week, the Nifty has made new record highs in three out of the last four trading sessions but on an absolute basis, the index is just flat and that is because despite making records or newer highs almost every day, the Nifty is failing to hold on to those levels and is declining anywhere between 100 to 150 points from the day's high almost through the week. So despite these Nifty making a record high three out of the last four trading sessions this week, it is confined in a range and that range appeared to have widened a little on Thursday during the weekly options expiry as the Nifty made an attempt to even scale 20 to 500 spurred by the U.S. Fed and positive global queues but true to script, the index came off the highs yet again. But just as there was a positive for the Nifty closing above 2300 on Wednesday, it has closed right at the 2300 mark on Thursday. So grinding higher is the Nifty but one step at a time and truth be told, the bulls would not have it any other way. Now for the way as I mentioned, the Nifty is up only half a percent, nothing more to add there but this 2300, 2300 band is the crucial resistance which the chartists believe that if that gets taken out, the Nifty can see levels of 23 900 or maybe even 24000 on the upside. The problem for that to happen though has been the Nifty bank which is also seeing selling pressure at higher levels but unlike the Nifty, it is not managing to even grind higher. The Nifty bank has declined in three out of the four trading sessions this week but those are not significant declines. They are just giving up the intraday gains much more in comparison to the Nifty. As has been the case, 50000 remains the key resistance level for the Nifty bank and there is heavy call writing that has taken place there. So 50000 is the level to watch out for on the Nifty bank but the broader markets have continued on their merry ways, no stopping them. Since the drop they witnessed on the 4th of June, the mid-cap index is up 11% while the small-cap index has done even better rising 14% from that drop on the 4th of June. Keep an eye out for real estate stocks which has been an outperformer through the week and sugar stocks as well which were up and about in yesterday's trading session. There are plenty of stock specific updates and I will take you through all of them that came in last evening, some major ones there. First up is a Muja cement where the Adani group has acquired Pena cement at an enterprise value of 10,422 crore rupees. Now this acquisition will be funded by internal accruals. The acquisition will add around 14 MTPA in group capacity of the Adani cement group taking the total capacity to 89 MTPA. Now this also improves their Pan-India market share by nearly 2% and their market share in the southern part of the country by nearly 8%. Now Pena cement has a 14 MTPA capacity across Andhra Pradesh, Rajasthan and in Telangana as well. The other one is Waterphone idea of course, they will issue preferential shares worth close to 2,460 crores to Nokia and Ericsson India to pair some of its debt. Now the issue price of 14.8 rupees a share is a discount of 8% to Thursday's close. However the allotment price is 35% higher to the FPO price and it comes with a lock-in period of 6 months. Now both these beneficiaries Nokia and Ericsson are non-promoter entities but are very crucial vendors for Waterphone idea. Now Sousslon has appointed Khatan and company to conduct a review of its corporate governance practices, identify any gaps in the existing practices and ways to strengthen them. Now remember an independent director had quit just last week citing some issues in corporate governance and hence this step has been taken by the company. Now StuWain Pharma has executed definitive agreements to acquire 100% equity in Sapala Organics, a Hyderabad-based CDMO company that is. Now Sousslon will initially acquire 67 and a half percent stake through a secondary transfer from its existing shareholders which is around 51% of the total share capital. The balance holding will be acquired after FY 27 is what the company has said. Now this 67 and a half percent stake will be acquired for a cash consideration of 229 crores but that is subject to the customary working capital and net debt adjustment. So 229 is the rough figure for which the stake will be acquired. Havils has announced that it will expand its manufacturing capacity of its AC division at its Gilot and Sicity locations to 15 lakh units per year in both these locations. Now the proposed investment for this capacity enhancement is around 50 to 60 crores and that will be funded through internal accruals. Now this expected date of completion is likely to be the fourth quarter of FY 25. Mahindra group stocks will be in focus today as multiple group companies have their investor day, EIH associated hotels will also be in focus ahead of its board meeting to consider an issue of bonus shares. This will be the first instance of the company issuing bonus shares if any. Purabankara's board has also approved raising up to 1000 crore rupees through a QIP. Now in some global updates Tesla shareholders have reinstated CEO Elon Musk's 56 billion dollar pay package after it was rescinded by a judge in January this year. Shareholders have also approved a resolution to move the companies in corporation to Texas. Now in response Tesla shares ended 3% higher on Thursday but off the highs of the day. The entire coverage of the AGM can be read on CNBCTV18.com. The US markets ended mostly positive overnight with modest gains while the Dow continues to be an underperformer. When most Asian markets have also opened lower this morning ahead of the Bank of Japan rate decision. The gift nifty as we speak is indicating a flat start for our own markets and don't be surprised if it is a quiet day today because traders might want to be light going into the long weekend. That's all for today that was the most important thing I guess we wanted to hear. We hope you have a wonderful day ahead and an even better long weekend but for all the market update you know where to tune into CNBCTV18 and cnbctv18.com thank you for tuning in. [BLANK_AUDIO]