MarketBuzz
1283: Marketbuzz Podcast with Hormaz Fatakia: Watch out for IREDA, Vodafone Idea, Godrej Properties
Good morning and welcome to CNVC TV18's Market Bus Podcast. I am Harmas Patakya. We had to wait 11 years for an ICC trophy, 13 years for a World Cup and 17 years for another World T20 title. That wait finally came to an end on Saturday night after 11 determined men out of nowhere went down to snatch victory from a near improbable situation. That the men in blue became world champions after knocking on the door of victory for an eternity. They finally broke that door down. But as the whole nation celebrated through Sunday and continues to do so, we are back to bring you the markets and what you should be aware of as we begin a new week, a new month and of course a brand new earning season. The markets had yet another good week but Friday finally saw some bit of exhaustion creeping in at higher levels for the bulls. The nifty bank which was for the better part of last week and the entire week before that was leading the nifty higher was the key culprit in ensuring that the nifty ended with losses on the final trading day of the week. While the drop in absolute terms for the nifty was not huge, the nifty bank though fell nearly 500 points and 53 180 has now become the new record high for the bank nifty. But you must also keep in mind that this 500 point drop on Friday comes on the back of a surge of over 7,000 points that the nifty bank has seen since the lows of the 4th of June when it almost slipped below 46,000 levels. So some bit of profit booking and higher level should not come as a surprise to anyone. The nifty still held on to the 24,000 mark and managed to report a 2% weekly gain and despite that bout of profit booking on Friday, the nifty bank managed to gain 1.3% for last week making it the 7th straight weekly advance for the index. Now historically July has been a good month for the market in general as the nifty in three out of the last four July series has seen gains of anywhere between 3% and 7%. This time around though, there are plenty of domestic queues to watch out for which can potentially be market moving. Starting off with auto sales which will be reported today for the month of June, there is also the union budget, the date for which is yet to be announced. Besides auto stocks, plenty of other companies will start reporting their business updates for the quarter before IT kicks off the earning season. And lastly of course, global queues will always remain a determining factor. Rest assured, we have all of those bases covered for you. A side of auto stocks, Vodafone idea will be in the spotlight after it followed Relian's geo and Bartietel in hiking tariffs for its services by up to 20%. It aims to invest in enhancing its 4G experience and launch 5G services over the next few quarters. The stock though ended 3.5% lower on Friday near levels of 18. ODP Cochin Shipyard which is a wholly owned subsidiary of Cochin Shipyard has signed a contract with Wilson ASA Norway for the design and construction of four dry cargo vessels. Now an agreement has also been signed for four additional vessels which will formally be contracted by September 19th of this year according to what Cochin Shipyard has said. The overall cost of these eight vessels is set to be around 1100 crore rupees and Cochin Shipyard plans to execute this order by September of 2028. Cochin Shipyard is the best performing small cap stock in the first half of 2024 having almost tripled and even more in these six months. And just before the close of trade on Friday, BEL or Bharat Electronics had seen a sharp spike after it announced that it received orders were nearly 3,600 crore rupees. Now it will be interesting to see if there is any follow-up reaction to that move. Now Godrish properties has acquired leasehold rights for an 11 acre land parcel in Pune with the revenue potential of around 1800 crore rupees. Now the development on this land will mostly comprise of group housing and high street retail. Now the company has also acquired seven acres of land in Bengaluru which has an estimated revenue potential of nearly 1200 crore rupees. Now Zydus life has signed a licensing agreement with Dr Reddy's for co-marketing a critical treatment for breast cancer patients in India. Now the product will be marketed by Zydus under the name Sigrima while Dr Reddy's will market it under the brand name Vomab. Now Zydus will receive upfront licensing income and is also eligible to receive milestone income based on the achievement of predefined milestones. Now Ireda reported its business updates for the June quarter where its loan sanctions grew by five times from last year while disbursements were up 67 percent year on year. Now Ireda has set itself a target to become a Maharatna PSU by F5.30. It was only recently granted Navratna status. Then you can read more on that on cnbctv18.com. The oil has revised prices of all ferro grades of manganese or with manganese content over 44 percent and higher by 2 percent for the month of July. However prices for the rest of the grades including the fines and chemicals grade have been cut by up to 8 percent. The US markets ended lower on Friday but not after witnessing an AI driven first half of 2024. For the first six months of the year the NASDAQ is up 18 percent while the S&P 500 is up 14 percent. The Dow has been an underperformer gaining only 4 percent. Now the Asian markets have begun the second half of 2024 on a mixed note after China's manufacturing remained in contraction territory for the second straight month. The Japanese markets are trading with gains. Those in South Korea are flat while the Hong Kongin disease will remain shut today because of a holiday. The gif NFT as we speak is indicating an absolutely flat start for our own markets. And that's all for today. We wish you a happy trading day. And while India's win sinks in further, we bring you the sharpest market and economic insights. So stay tuned to CNBC TV 18 and CNBCTV18.com. Thank you for tuning in.