Broad Strokes, August 01, 2024

Aprameya Engineering and Trom Industries Stocks List at Premium

• Aprameya Engineering listed at a 24% premium on the NSE SME platform, raising funds for working capital and corporate needs in the healthcare infrastructure sector.
• Trom Industries debuted with a remarkable 90% premium, focusing on solar EPC solutions.
• Aprameya Engineering’s IPO was oversubscribed by over 150 times, and Trom Industries by 400 times.
• The robust market response to both IPOs reflects investor confidence in these companies’ growth prospects and industry potential.

FirstCry IPO Set to Raise $501 Million

• FirstCry, an Indian retailer specializing in baby products, is set to raise $501 million in its IPO, aiming for a valuation of $2.9 billion.
• The IPO includes a mix of fresh shares and stake sales by existing investors like SoftBank and TPG.
• Proceeds will be used for acquisitions, international expansion, and new store setups.
• This move comes amidst a booming stock market in India, with over 150 companies raising nearly $5 billion through public listings in the first half of the year.
• FirstCry’s IPO is part of a wave of upcoming offerings in August 2024, including Ola Electric, reflecting the robust IPO market in the country.

Infosys Faces Rs 32,000 Crore GST Demand

• Infosys faces a Rs 32,000 crore GST demand from Karnataka State authorities for expenses incurred by its overseas branch offices, leading to a 1% drop in its share price.
• The company refutes the tax evasion notice, asserting full compliance with regulations.
• This development comes amidst a broader recovery in the IT sector, with Infosys reporting strong Q1 results.
• Analysts predict a narrowing valuation gap with peers like TCS.
• The investigation raises concerns about potential tax liabilities for Infosys and broader implications for investor confidence in India’s business environment.

Akums Drugs IPO Oversubscribed, Hero FinCorp Files for IPO

• Akums Drugs & Pharma’s IPO has been oversubscribed by over 40 times on Day 3, with the QIB portion subscribed nearly 50 times. The company aims to raise Rs 1,856.74 crore through a mix of fresh share sales and OFS.
• Brokerage firms recommend subscribing to the IPO despite concerns about low margins and regulatory scrutiny.
• Hero FinCorp, the financial services arm of Hero MotoCorp, has filed for a Rs 3,668 crore IPO, with a mix of fresh fundraising and offer for sale.

Nifty Hits 25,000 Milestone in Record Time

• The Nifty 50 index surpassed the 25,000 mark in record time, rallying from 20,000 to 25,000 in just 221 trading sessions.
• This surge was supported by strong corporate earnings, hopes of a potential US Fed rate cut in September, and robust investor confidence.
• Key gainers driving this milestone included Bajaj Auto, BPCL, Coal India, Mahindra & Mahindra, ONGC, Tata Motors, and Hero MotoCorp.
• Market experts anticipate further upward movement towards 26,000, fueled by domestic consumption, infrastructure spending, and participation from FIIs and DIIs.

Rate Cut Expectations

• The Bank of England cut interest rates for the first time in four years, lowering borrowing costs by a quarter-point to 5.0% following a close 5-4 vote by policymakers.
• The Federal Reserve in the US maintained its key rate but hinted at a possible rate cut in September, impacting global markets positively.
• The Nikkei in Japan plummeted 3% due to the yen’s rise, while tech stocks like Nvidia and Meta Platforms saw significant gains.

Adani Group Reports Strong Q1 Financial Performance

• Adani Enterprises reported a 116% surge in net profit to Rs 1,455 crore and a 12.5% revenue increase to Rs 25,472 crore.
• Adani Ports and SEZ saw a 47% rise in net profit to Rs 3,113 crore.
• Adani Energy’s shares soared 10% to a 52-week high following a successful QIP that raised Rs 50,000 crore, attracting over 125 institutional investors.
• These results reflect Adani Group’s solid financial performance and strategic moves in various sectors.

ITC Q1 Results Reported

• ITC reported a marginal increase in standalone net profit to Rs 4,917 crore, falling short of street estimates.
• Revenue from operations grew by 7% to Rs 18,220 crore, driven by resilient performance in FMCG businesses and a 7% increase in cigarette segment revenues.
• The hotel business saw double-digit growth, while the paperboard segment faced challenges due to low-priced Chinese supplies and increased domestic wood costs.

US Fed Meeting Impact on Global Stock Markets

• Asian stock markets and US futures surged in anticipation of a potential Federal Reserve interest rate cut.
• The US 10-year yield dropped to 4.03% amid geopolitical tensions and a shift in Fed policymakers’ stance.
• Wall Street gains were driven by expectations of rate cuts, with tech stocks like Nvidia and Meta Platforms seeing significant gains.

Stocks with Long and Short Buildup in Focus

• Recent trading sessions saw a mix of short and long buildup in various stocks.
• Notable short buildups included ACC and Indiamart Intermesh, indicating bearish sentiment.
• Long buildups were seen in Maruti Suzuki and National Aluminium, signaling a bullish trend.
• Expert recommendations for stocks like Godrej Properties, Ambuja Cements, and Indus Towers were provided based on chart patterns and trading volumes.
• Investors are advised to monitor these developments closely for potential trading opportunities.