MarketBuzz
1271: Marketbuzz Podcast With Hormaz Fatakia: Brightcom Group declares results; All eyes on FOMC
(upbeat rock music) Good morning and welcome to CNBC TV 18's Market Bus Podcast. I am Harmas Vatakya. Now, generally when you run a marathon, you would start off slowly, then consolidate, and then make a final dash towards the finish. But if you try to run a marathon at the speed of a 100 meter dash, there is bound to be some exhaustion, and the same is happening with the NFTI currently. Now, after recovering nearly 2,000 points in just a week, the NFTI is now facing some exhaustion at higher levels. It has made multiple attempts at crossing 23, 400 this week, but has not managed to do so. It ended in the red on Monday, and almost unchanged on Tuesday. What may also not please the bulls is the fact that yesterday's high on the NFTI was lower than Monday's high, and as was the low, which means that the index has made a lower high and a lower low on the charts. Now, it is in a 200 point range that this NFTI is trying to break out from, 23, 200 on the downside, 23, 400 on the upside, and that is the range we'll continue to monitor today as well. The weeks continues to cool off as anticipated by most market participants. It fell another 10% on Tuesday, and is now well below levels of 15 compared to the highs of 31 it had made during the Lok Sabha election results. Sectoral indices are continuing to play catch up when it comes to recovering the losses from last Tuesday. Now, the NFTI Realty index recovered all of its losses yesterday, climbing for the fifth day in a row. The PSE index, which is a collection of all PSU stocks, fell 16% last Tuesday and has managed to recover just about half of those losses. The mid-cap and the small-cap indices continue to remain outperformers. They have already recovered all of their losses that they made last Tuesday, because both of them had declined around 8% each, and the NFTI mid-cap index has already made a new record high. It did so yesterday. So, what do you need to watch out for in today's trading session? Well, all eyes are on Wall Street as the FOMC rate decision will be announced later tonight, which will be close to midnight, but early Wednesday time in the US. More than a rate cut, the focus remains on what the Fed guides for when it comes to the rest of the year. Jerome Powell becomes the center of attention today. Has he always does once every two months? Now, Wall Street calls this day a double whammy, because along with the Fed decision, we also have the US CPI data scheduled to be reported around 6 p.m. Indian time this evening. India will also be reporting its CPI and IIP data later this evening. Today is also the weekly expiry of the NFTI bank, and that too is struggling to cross the mark of 50,000, and it remains significantly away from its record highs. Now, that index also made a lower high and a lower low on Tuesday. So, what are the stocks that you need to keep an eye out for today? First up is the BriteCon Group, which finally declared its second quarter results of FY24 late last night. Now, this is in compliance with its announcement that it made on the 16th of May, saying that it will declare its second and third quarter results by the 11th of June. However, they have not declared their third quarter results, but the second quarter results is what they have declared along with the half yearly performance. The results overall were nothing to write home about with most parameters being flat from last year, but it will be interesting to see how the NSC reacts to this since it had announced that trading in the BriteCon Group will be suspended from the 14th of June till it complies with the master circular. Now, again, if we look at the shareholding pattern, the retail shareholders have increased in the BriteCon Group now around 6.6 lakh, compared to the 5.7 lakh number in the December quarter. Indigo is the other stock. There was a block deal that took place yesterday, and in confirmation of the CNBC TV18 news break, the promoter entity Integlow Enterprises indeed sold 2% equity in a deal that was worth nearly 3,400 crore rupees. The buyer, Citigroup, who acquired shares worth over 1,300 crores. Now, Indigo will also be in focus because the new Civil Aviation Minister Ram Mohan Naidu said that high airfare is an issue, and he would review that during his next few days in office. HCL Tech signed a deal with Germany's largest cooperative private bank. Now, that deal spans seven and a half years, and he's worth $278 million. Now, this comes just a few days after Vipro had won a $500 million deal. Mohan Stanley says that in absence of any signs of pickup in discretionary spending, such announcements of large deals provides them with some comfort on the ability of HCL Tech to achieve its full-year guidance. It remains overweight on HCL Tech with a price target of 1,650 rupees. TVS supply chain solutions has announced a new five-year strategic contract with Daimler Truck Southeast Asia, which is a Daimler Truck subsidiary for integrated supply chain solution services in Singapore. So, we'll keep an eye out on this talk as well. Biel Kashiap is the other stock. We don't really talk much about this name, but that should also be on your radar as the company has won two new orders worth over 1,000 crore rupees, one from Satwa homes and the other is from DLF City. And with this, their total order book till date stands at around 3,545 crore. Go-digit insurance, which is the latest listing on the last street, announced its first quarterly result after becoming a public company. Here, its net earned premium went up by 42% from last year. However, its underwriting loss increased by 21% year on year. Its operating profits stood at nearly 500 crores this quarter compared to a nine crore loss it had reported in the base quarter while its net profit also doubled compared to the year ago period. Onto global markets, then the US markets, particularly the S&P 500 and the NASDAQ made new records. On Tuesday, the NASDAQ was powered by Apple, which surged over 7.5% to scale its own record high for the first time since December of last year. Now, most Asian markets have opened lower this morning, barring those in South Korea after China's May inflation rates stood at 0.3% missing estimates of 0.4%. Now, the figure was unchanged compared to the month of April. The gift nifty is indicating a slightly negative start for our own markets as we speak. That's all for today. We wish you a wonderful trading day and hope you all stay safe as the weather in Mumbai continues to remain as unpredictable as the market. Stay tuned to CNBC TV 18 and CNBC TV 18.com for the shoppest market insights. [MUSIC PLAYING] (upbeat music) [BLANK_AUDIO]