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Nifty snapped three-week winning streak led by global volatility to settle 1.4% lower as fears of US recession resurfaced. Nifty Midcap index corrected 1% while Small cap index closed flat.

US Elections to trigger further volatility

Bajaj Housing Finance is a subsidiary of Bajaj Finance engaged primarily in housing finance is coming up with an IPO raising ₹ 6560 crore, comprising fresh issue of ₹ 3560 crore and OFS of ₹ 3000 crore.

Customer accretion aid steady growth in credit card spends – 2HFY25 could witness gradual revival

Growth recalibration on cards in MFI sector; asset quality trend in Q2 remains key watchful

Banks and NBFC are seeking to diversify funding sources

Solar Power Capacity leading the charge in the Renewable Space

Auto Volumes August 2024: 2-W outshine amid muted OEM show, CV disappoints

Government to mandate Auto Industry to use recycled steel metal, promoting circular economy

Reliance Industries Ltd. (RIL) has been awarded a 10 GWh Advanced Chemistry Cell (ACC) battery storage capacity under the PLI scheme, with an incentive outlay of ~₹3,620 crore. There are 5 other players who are in the waitlist currently which includes Amara Raja as well.

Global steel production is flattish in H1CY24 at 955 MT with India the sole shining star reporting healthy steel production growth of 7.5% YoY in H1CY24 at 74 million tonne (MT).

Kalpataru projects (KPIL) is amongst the leading EPC players in infrastructure sectors such as Power T&D, Buildings & Factories, Oil & Gas, Urban Infra, Water and Railways. 

Indian equities fared better as compared to their global peers as risk-on sentiment prevailed. Index gained 1.5% and recorded new highs along with Midcap and Small caps

Nifty has remained positive but witnessed high intraday volatility in last two sessions. First, due to Derivatives Monthly settlement on Thursday and then month end buying amid MSCI rebalancing today.

RIL AGM Takeaways – aspires to double the size by FY28

Viacom18- Star India merger gets conditional approval from CCI

HCL Technologies Analyst Meet: Increasing focus on TMT vertical

LTTS is targeting a US$1.5 billion run rate, with ambitions to reach US$2 billion and a 17-18% EBIT margin in the medium term.

 Vehicle Scrappage Policy gets new lease of life

Central bank has announced introduction of Unified Lending Interface (ULI)

RBI is mulling to provide some relaxation in lieu of provision buffer to be created on infrastructure exposure. 

Sonata Software (Sonata) provides IT services and product licensing services to its clients in BFSI, HLS (Healthcare & Lifesciences), RMD (Retail, Manufacturing, Travel & Distribution & TMT) segments

Globally, equities traded lacklustre to positive as investors reassessed slowdown concerns in US ahead of Jackson hole Fed symposium. Nifty gained 1% while small caps outperformed with 3.5% gain

NSE is yet to announce the changes for the half yearly rebalancing. However, we believe that Trent and BEL will be part of Nifty in the place of Divis Lab and LTIM.

With pick up in rainfall activity in the recent past, the cumulative rainfall in the ongoing monsoon season 2024 pan India now stands at +3% of LPA.

The government has launched an anti-dumping investigation into the import of hot rolled flat steel from Vietnam, prompted by complaints from domestic steel makers

As per media sources, government is likely to mandate that all new products made from non-ferrous metals to have a minimum of 5% recycled content starting FY28E.

Overall, Domestic Capex has increased from the earlier planned ~$1.3 billion to ~$5 billion, with projects expected to be commissioned between FY25E andOverall, Domestic Capex has increased from the earlier planned ~$1.3 billion to ~$5 billion, with projects expected to be commissioned between FY25E and FY27E. FY27E.

IREDA is seeking to raise ₹4500 crore of equity to strengthen balance sheet for continued strong business growth. A board meeting is scheduled on 29 August 2024, for approval for the said capital raising along with the mode (i.e FPO, QIP) to be adopted.

Several PSU banks are foraying to raise funds through bonds route amid continued competition in deposits segment.

What is Bio-secure Act-

Global pharma companies have already started taking action, despite the legislation not yet even a law. The proposed act if becomes law can provide China re-balancing (not necessarily China + 1) opportunities for other global CRAMs players including Indian players.

Steel Strips Wheels Ltd. (SSWL), is an auto ancillary company involved in designing and manufacturing of automotive wheels - both steel and alloy wheels. It currently has five plants in India with total production capacity of ~2.4 crore wheels per annum, including ~0.36 crore of alloy wheels. As of FY24, it realised 28% of its sales from Alloy wheels while Steel wheels constituted the rest 72% of sales.

Global equities made a strong comeback last week as US recession fears subsided after latest economic data. US indices gained 2% while Nifty inched up by 0.5%

FPIs buying spree seen post-election verdict turned into selling after announcement of union budget. 

Supreme court in its ruling on Wednesday (14^th August 2024) has authorized the states to levy and collect tax on mineral bearing land from 1st April 2005.

On consolidated basis, Total operating income for the quarter came in at ₹57,013 crore (up 8% YoY, 2% QoQ) with Novelis sales volume up 8% YoY at 951 kt. India aluminium downstream volumes were healthy at 96 kt (up 19% YoY). 

Total operating income for the quarter came in at ₹5,415 crore (flat YoY, down 17% QoQ) with iron ore sales volume of 10.1 million tonne (down 8% YoY, 20% QoQ).

The box office saw a first sign of recovery with Stree 2 witnessing a massive 54 crore opening. We highlight that Q2FY25 collections will be boosted by Kalki (spill over), Deadpool and Wolverine (₹ 100 crore+), Stree 2. Furthermore, the other big films release includes Emergency and Devara Part 1.

HAL's operational performance in Q1FY25 was largely steady with ~11% YoY revenue growth and EBITDA margin of ~23% (flattish YoY). However, PAT was up substantially by ~77% YoY led by Rs 445 crore of one-off income related to tax refund

In Q1FY25, Muthoot Finance and Manappuram Finance have reported healthy growth in gold AUM. Continued accretion in customer coupled with increase in gold price acted as tailwind aiding strong credit off-take. While Muthoot Finance reported 23% YoY and 11% QoQ increase in gold loan AUM, Manappuram Finance delivered similar traction at 19.2% YoY uptick in gold portfolio, surpassing their annual guidance of ~15% growth for FY25.

Demand for reduction in GST rate on health and life insurance is gaining strength in both political and industry circles. Currently, all health and life insurance policies attract 18% GST. However, prior to implementation of GST, insurance premium attracted service tax at 15%.

Indian benchmarks retreated for second week led by global volatility amid concerns over liquidity. Nifty and broader market indices corrected 1.5% each

The monetary policy meeting was largely a non-event on expected lines with no change in benchmark repo rate (6.5%) and liquidity stance (withdrawal of accommodation). It is the 9^th consecutive meeting with no change in rates. 

SBI delivered another steady quarter with earnings remaining flat YoY due to higher provision and accounting norms on investment. 

Infra EPC companies in our coverage reported a strong performance in Q1FY25.

ABB reported strong set of Q2CY24 results wherein company performed well across all parameters. Revenues grew by 13% YoY to Rs 2831 crore.

On the consolidated basis, Total operating income for the quarter came in at ₹4,393 crore (up 10% YoY) amid flattish Royal Enfield sales volume at 2.26 lakh units.

Overall performance has improved significantly on YoY basis as execution picked up sharply in both the segments (ship-building and ship-repair). Revenue increased by 62% YoY as ship-building segment revenue (68% of total) increased by 62% YoY and ship-repair segment revenue (32% of total) grew by 63% YoY. The sharp growth is also on account of low base as the execution was muted during the period Q1FY23 to Q1FY24, due to some design changes and supply chain issues in one defence contract of anti-submarine corvettes