Tale of the Tape
Happy Ganesh Chaturthi guys. 🙏🏻
Markets snapped their 11-day gaining streak. Nifty and Sensex reversed sharply in the afternoon trade to end near the day’s low. Midcaps (-0.4%) and Smallcaps (-0.5%) also followed suit. Nearly two stocks declined for every gainer. 📉
Most sectors closed in the red. Real Estate (-1.4%) and Metals (-1.1%) were the biggest losers. On the flip side, PSU Banks (+3.4%) were up HUUGGEE! 🚀
The Indian Rupee closed at an all-time low of Rs 83.27 against the US Dollar. 💲
Tata Steel finally has an agreement with the UK Govt over its steel plant. Find out what this means for the stock in our top story below. 💯
Vodafone Idea has seen a sharp spike in recent weeks. We break down all the latest developments fuelling this bullish sentiment below. 🔥
Defence stocks were in high demand after the GOI approved 9 defence purchase proposals worth Rs 45,000 cr! BEL (+3%) hit a new all-time high. HAL jumped +4% intraday before cooling off. 💣
Bumper listing. Jupiter Life Line Hospital closed at Rs 1,076 p/sh; +46% from its IPO price. 💰
Dhanlaxmi Bank dropped -9% intraday following the sudden resignation of an independent director. The stock later recovered to close up +4%. 👀
Torrent Pharma is in talks to tie up with CVC Capital to fund Cipla acquisition, according to ET. 💊
Dabur aims for Rs 7,000 cr in revenue from its home & personal care business. 🧴
Indian Overseas Bank was locked in a 20% upper circuit after 5 cr shares (0.3% equity) changed hands in multiple large block deals. 🤝
Radico Khaitan started production at its new 350 KLPD distillery in UP. 🏭
Here are the closing prints:
| Nifty | 20,133 | -0.3% |
| Sensex | 67,596 | -0.4% |
| Bank Nifty | 45,979 | -0.5% |
Signed, Sealed & Delivered
Tata Steel hit a new all-time high intraday after it secured a MASSIVE $621-million subsidy package from the UK govt to decarbonise its steel plant in Wales. 🥳
ICYMI – the Port Talbot plant has been a major overhang for the stock for over a year now. The company needed to shift from coal-based production to electricity to meet its carbon emission goals. But, the plan, which would cost 1.25 billion pounds, wasn’t feasible without government help. Talks with authorities had floundered for over a year now, with Tata Steel even threatening to close the plant. 🚨
That’s why the joint investment plan to create a modern electric arc furnace is a big win. Yes, this is a big one-time cost (700 million pounds) for Tata Steel. But the restructuring plan will eliminate its UK operation’s current cash losses. FYI – many of the existing assets at Port Talbot, like blast furnaces or coke ovens, were nearing the end of their operational life. On top of this, the new facility will be able to utilize scrap, which will make it a lot more cost-efficient. 📊
Moving forward, it’s unclear how much changes in the short and even medium term. Why? Well, the lower losses + lower maintenance costs will be offset by the capex being pumped in for the transition. That said, most analysts are pretty bullish, arguing that benefits will start accruing from FY25. Brokerage firms CLSA and Jefferies have a target price of Rs 145 p/sh; +11.5% from current levels! 👍
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Full Signal Strength
Vodafone Idea hit a 52-week-high of Rs 12.20 p/sh before giving up some gains due to profit-booking. The stock has been on a roll over the last month. There are a bunch of developments, all of which point to a slightly brighter-than-expected future: 😇
1) Spectrum payment: The company announced today that it had made a Rs 1,701 cr spectrum payment to the GOI. ICYMI – last month, the company failed to make this annual installment. It instead applied for a grace period and said it would repay with interest. It’s good news that it was able to deliver on its word. ✅
2) Fundraising: The GOI spectrum payment of course could only be made because the Birlas agreed to infuse about Rs 2,000 cr into the company. This is mildly positive because there needs to be some give-and-take between the three major non-public shareholders. Beyond this, VI is scouting for a bigger Rs 20,000 cr fundraising plan. Reports indicate that multiple investors have offered term sheets, although nothing is official yet. 💸
3) Takeover speculation: Reports over the last couple of days have indicated that VI may be acquired by a US telecom giant. The names currently making the rounds include candidates like Verizon and Elon Musk’s Starlink. This isn’t the first time we’ve had this speculation. Back in 2022, Amazon was reportedly interested in picking up a stake. FYI – the company has officially denied these reports, calling them “incorrect”. 🤔
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