Broad Strokes,October 17, 2024

🚆 Morgan Stanley Invests in Titagarh Rail, Shares Surge

Cause: Morgan Stanley Asia acquired a 0.57% stake in Titagarh Rail Systems, purchasing shares worth ₹85.5 crore. Effect: The stock surged over 8% to ₹1,223.8, pushing its market capitalization past ₹16,000 crore, marking a remarkable 1,073% increase in stock value over the past three years.

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🚗 Bajaj Auto Shares Plunge After Q2 Results

Cause: Bajaj Auto’s Q2 net profit rose by 9% to ₹2,005 crore, falling short of analyst expectations, while the company revised its two-wheeler sales growth forecast downward. Effect: Bajaj Auto’s stock dropped over 8%, and the Nifty Auto Index fell nearly 3%, reflecting concerns about the auto sector’s performance and muted festive demand.

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📈 Titagarh Rail Soars After Morgan Stanley Stake Purchase

Cause: Morgan Stanley purchased 0.57% of Titagarh Rail Systems, further boosting market sentiment. Effect: Shares rose over 7% to ₹1,217.80, with a bullish target price of ₹1,798, reflecting a potential 51% upside.

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📊 Mutual Funds Add 20 New Stocks, GE T&D Hits 52-Week High

Cause: Mutual funds invested ₹18,200 crore in September, adding new stocks like Bajaj Housing Finance and GE T&D India to their portfolios. Effect: GE T&D’s stock surged by 257% YTD, and Category II debt funds yielded 14%, outperforming the Nifty50.

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💻 Infosys Q2 Net Profit Rises to ₹6,506 Crore

Cause: Infosys reported a 5% YoY increase in Q2 net profit, and raised its revenue growth guidance. Effect: Despite strong earnings, Infosys ADRs fell over 4%, showing mixed reactions in global markets.

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💼 Wipro Profit Jumps 21%, Announces Bonus Share Issue

Cause: Wipro posted a 21% YoY profit increase, alongside announcing a 1:1 bonus share issuance. Effect: Wipro ADRs declined 4%, reflecting cautious market sentiment despite strong earnings and deal bookings.

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🏗️ Ircon International Gains 3.6% After MoU with Patel Engineering

Cause: Ircon International signed an MoU with Patel Engineering for collaboration on infrastructure projects. Effect: Ircon shares rose 3.6%, despite broader PSU stocks facing downturns in the market.

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📉 Muted Q2 Earnings Expected for PSU Stocks, Bank Stocks to Lag

Cause: Subdued demand and extended monsoon impacts are expected to dampen earnings in sectors like automobiles and cement. Effect: PSU stocks have faced sharp corrections, while utilities and industrials are seen as more attractive for growth.

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📉 KEI Industries Stock Drops on Margin Concerns

Cause: KEI Industries saw contracting operating margins due to rising raw material and employee expenses. Effect: Shares dropped 14% over two days, despite an order backlog and potential for future growth.