Broad Strokes, July 11, 2024

📈 NSE Collateral List Update

• The NSE has updated its collateral list, affecting over 1,000 securities, including Adani Power and Yes Bank.
• New criteria require securities to trade 99% of the days over six months and maintain an impact cost of up to 0.1% for a ₹1 lakh order.
• Effective August 1, this move aims to enhance risk management and tighten margin trading eligibility, impacting F&O and intraday traders.

💼 TCS Announces Q1 Results and Dividend

• TCS reported an 8.72% YoY increase in net profit to Rs 12,040 crore, with revenue rising 2.24% YoY to Rs 62,613 crore.
• Despite wage hikes, the operating margin expanded by 1.5% YoY to 24.7%, and an interim dividend of Rs 10 per share was declared.
• Analysts expect single-digit growth in topline and bottomline, focusing on margins, deal wins, and key verticals like BFSI and Retail.

📊 Reliance Jio IPO Valuation at $112 Billion

• Reliance Jio is gearing up for a potential IPO in 2025, with an estimated valuation of $112 billion, as suggested by Jefferies.
• The IPO could boost Reliance Industries’ share price by 7%-15%, possibly involving an offer for sale by minority shareholders.
• Strategic focuses include tariff hikes and market share gains, supported by the successful spin-off of Jio Financial Services in 2023.

🚀 Smallcap Stock Rally

• HPL Electric & Power shares hit a 20% upper circuit at Rs 562.85, driven by a Rs 2,000.71 crore smart meter order.
• The stock has surged 814% in two years, buoyed by strategic moves like a manufacturing MOU with a Chinese firm.
• RVNL’s market cap surpassed BPCL and PNB, with a 54% weekly stock price rise due to strong order inflows and partnerships.

🔝 Ambuja Cements Stock Surge After Nomura’s Double Upgrade

• Ambuja Cements’ stock rose over 3% after Nomura upgraded it to ‘buy’ with a target of Rs 780, citing capacity expansion and strategic acquisitions.
• Post-acquisition, Ambuja is set to become the third-largest player in Southern India, with robust volume growth projected.
• Nomura highlights potential for inorganic expansion and operational efficiencies, with a 61% share price gain over the past year.

🚄 Railway Stocks Performance

• IRCTC saw a 0.63% decline post ‘One India – One Ticket’ launch, but the stock has gained 66% in the past year.
• Oriental Rail Infrastructure surged 5% after securing a Rs 19.33 crore order from Indian Railways.
• IRB Infrastructure reported 35% YoY toll revenue growth for June 2024, reflecting a positive market response.

🏦 YES Bank Stock Rallies on Moody’s Positive Rating Upgrade

• YES Bank’s stock jumped over 8% after Moody’s upgraded its rating, expecting improved profitability from retail and SME segments.
• Moody’s cited enhanced asset quality and capitalization, with potential suitors like First Abu Dhabi Bank showing interest.
• Despite challenges like high funding costs, YES Bank’s strategic shifts and investor interest signal a positive outlook.

💊 Glenmark Pharma Divests Stake in Glenmark Life

• Glenmark Pharmaceuticals shares dropped 1.60% after announcing plans to divest a 7.84% stake in Glenmark Life Sciences (GLS) through an OFS.
• The OFS, at a 7.5% discount to the current GLS market price, marks Glenmark Pharma’s complete exit from the company.
• Meanwhile, Zydus Lifesciences surged to an all-time high after USFDA approvals for two drugs, highlighting positive sector developments.

📉 Tata Elxsi Stock Drops on Disappointing Q1 Results

• Tata Elxsi’s stock fell over 2% after reporting a 3% decline in net profit and 9% revenue growth for Q1.
• Brokerages like Kotak Institutional Equities and JPMorgan expressed concerns, with Kotak lowering its target price to Rs 5,500.
• Analysts noted delays in the healthcare arm and higher tax rates, predicting further downside for Tata Elxsi’s stock.