Pre Market Report: Dalal Street may open lower; Tata Motors, Maruti Suzuki and NDTV in news

Market Opening - An Overview

Nifty futures on the Singapore Exchange were trading 0.22% lower at 18,183, signalling that Dalal Street was headed for a negative start on Monday.

US stocks closed 2022 lower on Friday, driven by aggressive interest rate hikes to curb inflation, recession fears, the Russia-Ukraine war and rising concerns over Covid cases in China. The S&P 500 fell 0.25%, while the Nasdaq 100 declined 0.11%. 

India’s eight core sectors grew 5.4% in November, quickening from 3.2% growth in the same month last fiscal, the commerce ministry said in a statement on December 30. The eight core industries comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP).

The October core industries growth has been revised higher to 0.9 percent from 0.1 percent earlier, while the final growth rate of eight core for August was revised to 4.2 percent from its provisional level 3.3 percent, the ministry stated.

Retail inflation for industrial workers eased to 5.41 percent in November compared to 6.08 percent in October this year mainly due to lower prices of certain food items.

India’s forex reserves dropped by $691 million to $562.808 billion as of December 23, making it the second consecutive week of decline, according to data released by the RBI.

FII/DII Trading Data (30-12-2022)

In the cash segment, foreign institutional investors (FII) were net sellers worth Rs 2,950.89 crore, while domestic institutional investors (DII) were net buyers worth Rs 2,266.20 crore on December 30, as per provisional data available on the NSE.

Stocks in News Today

Tata Motors: The company’s subsidiary, Tata Passenger Electric Mobility, has decided to complete the acquisition of Ford India’s manufacturing plant at Sanand in Gujarat by January 10, 2023. As a part of acquisition, Ford India will transfer entire land and buildings; and vehicle manufacturing plant along with machinery and equipment for Rs 725.7 crore, along with all eligible employees.

Meanwhile, the automaker’s total domestic sales in December rose 10% on year to 72,997 units. Continued focus on retail during the quarter resulted in retail sales surpassing wholesale sales by 13% in December, and by 6.3% in Q3. Passenger vehicle sales increased 14% on year last month to 40,407 units.

Maruti Suzuki India: The automaker said its total vehicle sales in December declined 9% on year to 1,39,347 units. Domestic sales fell over 10% to 1,17,551 units. The shortage of electronic components had some impact on the production of vehicles, mainly in domestic models. The company, however, took all possible measures to minimise the impact.

New Delhi Television (NDTV): RRPR Holding, an indirect subsidiary of Adani Group, has bought 1.75 crore shares or 27.26% stake in NDTV at an average price of Rs 342.65 per share. However, Prannoy Roy and his wife Radhika Roy were the sellers, and with this stake sale, now they together hold 5% stake in NDTV.

IDBI Bank: The bank’s mutual fund arm IDBI Mutual Fund has signed an agreement to transfer its schemes to LIC Mutual Fund. LIC MF had said earlier that the fund house was in advanced stages of acquiring IDBI Mutual Fund. IDBI MF had to be either sold or merged with LIC MF because as per SEBI rules, one promoter cannot have more than 10% stake in 2 mutual funds.

RITES: The transport consultancy and engineering firm has entered into an agreement with KIIFCON to jointly explore, identify, secure, and execute consultancy projects. As part of the agreement, both companies will work as partners to provide consultancy for transport and infrastructure projects in various sectors, including airports, urban transport (metros) and railways across the domestic and international market. KIIFCON is a consultancy organisation under the Kerala Infrastructure Investment Fund Board.

IDFC First Bank: The bankruptcy court has admitted Marvel Realtors & Developers Ltd under the corporate insolvency resolution process (CIRP) and appointed Manoj Kumar Mishra as the interim resolution professional for the Pune-based realty firm. The tribunal allowed the petition filed by company’s lender IDFC First Bank to initiate the insolvency proceedings.

Shriram Finance: The company has secured long-term funding of $100 million from Asian Development Bank (ADB). The $100 million External Commercial Borrowing (ECB) is a 5-year loan. Further, the company has revised interest rate on its term deposits with effect from January 1. Accordingly, the rate on 12-month deposit would be increased to 7.2%, 7.5% for a tenure of 24 months, and for 36 months it would be 7.5%.

REC: The state-owned power project finance company has received board approval for sale of entire shareholding in WRSR Power Transmission, to Adani Transmission. WRSR Power Transmission is presently owned by REC’s subsidiary REC Power Development and Consultancy (RECPDCL). Adani Transmission has been selected as the successful bidder through tariff based competitive bidding process.

NMDC: Life Insurance Corporation of India offloaded stake in the state-owned iron ore company by 2.07% via open market transactions. With this, LIC’s shareholding in NMDC will be reduced to 13.699%, from 15.772% earlier.

Religare Enterprises: Religare Finvest and parent company Religare Enterprises have entered into one-time settlement agreement with 16 lenders for full & final settlement with respect to outstanding dues of Religare Finvest. Religare Finvest has been taking necessary corrective measures as advised by the Reserve Bank of India and it will seek removal of the corrective action plan in due course so that Religare Finvest can restart its lending business.

Eicher Motors: The company said Royal Enfield motorcycle sales in December declined by 7% on year to 68,400 units. Commercial vehicles sales in the last month increased by 17.3% on year to 7,221 units.

Escorts Kubota: Total tractor sales in December increased 19% on year to 5,573 units. Domestic sales increased by 22% while exports fell 3.4%.

63 Moons Technologies: The company will provide software support services to Multi Commodity Exchange of India for another six months period commencing January 1, 2023 to June 30, 2023, at the request of MCX. The earlier software support and maintenance agreement ended on December 31, 2022.

CreditAccess Grameen: The company has completed two direct assignment transactions aggregating to Rs 297.79 crore in December 2022. During the quarter ending December 2022, the company has raised total funds of Rs 3,300.38 crore through term loans, NCDs, ECBs and direct assignments.

Elin Electronics: Copthall Mauritius Investment Limited exited the electronics manufacturing services company by selling all 5.42 lakh shares via open market transactions, at an average price of Rs 231.42 per share. Societe Generale also offloaded 3.37 lakh shares at an average price of Rs 234.27 per share, while Morgan Stanley Asia (Singapore) Pte sold 5 lakh shares at an average price of Rs 231.6 per share. Morgan Stanley Asia (Singapore) held 10.06 lakh shares before the listing of Elin.

Gulshan Polyols: The company has announced collaboration with Amplus, a subsidiary of a Singapore-based company, to purchase electricity in the form of solar energy for its Muzaffarnagar plant in Uttar Pradesh. Gulshan expects to procure 4 to 5 Lakhs units of electricity per month at 30-40% subsidized cost through this association.

HG Infra Engineering: The company has emerged as the L1 bidder for the project by Delhi Metro Rail Corporation in Delhi. The project bid cost is Rs 412.11 crore and the construction period is 24 months.

Muthoot Capital Services: The company has completed the transaction of Rs 82.87 crore through securitization of its portfolio. This is the sixth securitization or direct assignment transaction carried out by the company during FY23.

Harsha Engineers International: The company will make an investment up to 5% of total capital contribution in Goldi Harsha Ventures. Goldi Harsha Ventures is a special purpose vehicle to execute an EPC project for installation of 10 MW solar power project of Surat Municipal Corporation (SMC) alongwith comprehensive operation and maintenance. The SPV is yet to commence business.

Punjab & Sind Bank: The bank has received board approval for fund raising up to Rs 250 crore in next one year in one or more tranches, via equity or bonds issuance.

Jammu & Kashmir Bank: The bank has raised Rs 1,021 crore via allotment of 1,021 non-convertible debentures of face value of Rs 1 crore.

Engineers India: The company and Numaligarh Refinery have inked a memorandum of agreement (MoA) to jointly develop technology for production of aqueous ammonia from ammonia rich sour gases.