Indian equity market are likely to start trade on a tepid note on Monday and thereafter look at key index heavyweights for a directional move, given the news flow out of most of the counters. Ahead of the trading session, the SGX Nifty futures quoted at 15,700, indicating an opening loss of 50-odd points. “This week marks the beginning of the earnings season and the IT major, TCS, would announce its number on July 8. Participants will be closely eyeing its results for any change in the guidance amid the fear of a global slowdown. Besides, the performance of the global indices, crude movement and updates on the ongoing tussle between Russia-Ukraine will be in focus,” said Ajit Mishra, VP – Research, Religare Broking.
Stocks in focus in 4 July, Monday
Reliance: Last Friday, the government took investors by surprise. It announced levy of export duty on petrol, diesel and aviation turbine fuel. Besides taxing exports, the government also announced the imposition of windfall tax on gains made by domestic refineries. A cess of Rs 23,250 per tonne on domestic crude production was also imposed. The move clipped wings of upstream oil companies with shares of Reliance Industries declining over 7%. Brokerage firm JPMorgan termed the stock reaction as excessive. In a note to investors, it said the fall offers an attractive entry opportunity.
Infosys, TCS: Amid concerns of a likely recession in the US and Europe and rising inflation worldwide, the first-quarter results of FY23 in the Indian IT services industry will be keenly watched for management commentary on the demand outlook. With supply-side challenges yet to settle down, margins of companies like Infosys, TCS will be under pressure due to higher retention costs, and travel. However, the silver lining could be a falling rupee.
HDFC-HDFC Bank: The proposal of merger of HDFC with its banking subsidiary HDFC Bank, the biggest transaction in India’s corporate history, has got approval from stock exchanges. Both HDFC and HDFC Bank have got no-objection from both stock exchanges. HDFC Bank has received observation letter with ‘no adverse observations’ from BSE and observation letter with ‘no objection’ from the NSE, both dated July 2, 2022, HDFC Bank said in a filing. “The scheme remains subject to various statutory and regulatory approvals inter alia including approvals from the Reserve Bank of India, Competition Commission of India, the National Company Law Tribunal and the respective shareholders and creditors of the companies involved in the scheme, as may be required,” it said.
Bharat Forge: The auto parts maker along with subsidiary BF Industrial Solutions has successfully completed the acquisition of Coimbatore-based JS Autocast Foundry India. The enterprise value of the transaction was Rs 489.63 crore.
Coal India (CIL): The state-owned company said its coal production increased 29 per cent YoY to a record 159.8 MT in April-June this fiscal. CIL on an average supplied 1.684 MT of coal per day to the power sector in June 2022 quarter compared to a daily requirement of 1.650 MT.
SBI, ICICI Bank: The board of YES Bank has proposed to exit from the reconstruction scheme but large investors, including the State Bank of India, HDFC Ltd and ICICI Bank may not pare down their stake in the private sector lender for now. “Today, among the large institutional investors, there are SBI, HDFC and ICICI Bank. Others have already sold some portion. These three will continue with us,” said Prashant Kumar, Managing Director and CEO, YES Bank.
NTPC: NTPC’s arm, NTPC Renewable Energy Ltd ( NREL) signed an MoU with the Ashok Gehlot government to develop 10 GW ultra mega renewable energy power parks (UMREPP) in Rajasthan. The PSU said that NTPC Group has set a target of 60 GW renewable energy capacity by 2032. The company said that in less than 2 years since its inception, NTPC REL has won 4 GW renewable energy capacity by bidding in various tenders which are under different stages of implementation.