Weekly Market Report: Dalal Street ends higher on positive global cues; RIL, Tata Steel, Vodafone Idea and Tata Power in news

Benchmark equity indices rose during the week backed by strong gains in auto, FMCG, IT and banking stocks. For the week, the Nifty 50 index rose 0.92% and the Sensex increased 0.88%.

Broader market also mirrored benchmark indices. The BSE Midcap index jumped 1.53% and the BSE Smallcap index climbed 1.6%.

Top gainers among Nifty sectoral indices were Auto [6.95%], FMCG [4.18%], IT [3.91%], PSU Bank [3.89%] and Media [3.22%]. Nifty Metal was the sole sectoral index that fell 2.71% for the week.

In cash segment, FIIs were net sellers and they sold for Rs 11,511.8 crore, while DIIs were net buyers and bought for Rs 11,670.6 crore during the week.

Crude prices eased with the WTI Crude at $107.62 per barrel and Brent Crude at $113.12 per barrel.

Company News

Reliance Industries Ltd (RIL): The conglomerate is assessing new technologies for making electrolyzers in its efforts to produce low-cost green hydrogen in the country, according to Bloomberg news. The company also plans to bid for any production-linked incentives the government may offer to encourage the technology, Kapil Maheshwari, president for new energy at Reliance, said at the BloombergNEF summit in New Delhi.

Tata Steel: The company and Thyssenkrupp lost their fight against a European Union antitrust veto of their proposed landmark joint venture three years ago, after Europe’s second-highest court rejected their arguments, according to Reuters news report. Both the companies had sought to tackle over-capacity and other challenges in the steel industry via the joint venture but the European Commission said the deal could result in price hikes.

Vodafone Idea (VI): The telecom company has opted for a four year moratorium on payment of Rs 8837 crore in AGR dues in addition to one exercised last year. Similarly, the telecom company has the option to convert interest on deferred amount into additional equity to government. The amount is subject to revision on account of disposal of various representations and final amount has to be paid in six equal instalments after end of moratorium in March 2026.

Tata Power: The Tata Group company announced a plan to set up EV charging stations across India over next three to five years, The Economic Times reported citing Tata Power CEO Praveer Sinha. Tata Power has already announced partnerships with Tata Motors to develop charging ecosystem and home chargers to individual vehicle owners.

Tata Chemicals: The company’s subsidiary Tata Chemicals Europe (TCE) has opened industrial-scale carbon capture and & usage plant in the UK. The plant will repurpose 40,000 tonnes of CO2 emissions annually from its power generation plant and use it to produce baking soda. TCE has invested £20 million towards the facility and it will export baking soda to 60 countries under the brand name Ecokarb.

Bharti Airtel: The telecom’s subsidiary, Bharti Airtel International, has announced the commencement of tender offer to purchase for cash up to $300 million of its 5.35% Guaranteed Senior Noted due 2024 in order to optimize its balance sheet and reduce debt .

Adani Enterprises: The flagship company of Adani Group was among 11 bidders to have shown interest in the first-ever coal import tender issued by national miner Coal India Ltd. Recently, NTPC awarded 6.25 MT of imported coal tender worth Rs 8,300 crore to Adani Enterprises.

Adani Total Gas: The company announced it shall expand its domestic connections to more than 12 lakh from 6.4 lakh currently. The company plans to roll out city gas distribution in 124 districts in the country.

Jet Airways: The carrier has began its operational hiring and asked its former cabin crew members to rejoin the airline. Commencement of hiring for pilots and engineers to follow in the coming days, when we make our aircraft choice reveal, said it CEO Sanjiv Kapoor.

Tata Motors: The company said that a detailed investigation is currently being conducted to ascertain the facts of the recent isolated EV fire incident. It added that this is the first incident after more than 30,000 EVs have cumulatively covered over 1 million km across the country in nearly 4 years.

Larsen & Toubro (L&T): The hydrocarbon division of the company has secured three offshore packages from an overseas client. The company classified the contracts as ‘large’ which means that the order value is in the range of Rs 2,500 crore-Rs 5,000 crore. The scope of the order comprises of engineering, procurement, construction, and installation for various new offshore jacket structures.

Bharat Heavy Electricals Ltd (BHEL): The company has signed signed $165 million contract with GE Steam Power for the supply of three nuclear steam turbines out of six units for NPCIL’s domestic nuclear program. The phase 1 of the program is being developed in Gorakhpur, Haryana and Kaiga in Karnataka.

ONGC: The company’s wholly owned subsidiary and overseas arm, ONGC Videsh (OVL), has made an oil discovery in the recently drilled well, Urraca-IX, in CPO-5 block, Llanos Basin, Colombia. Earlier, OVLhas discovered commercial oil in the Lower Sand pay in Mariposa and Indico fields in the block in 2017 and 2018, respectively.

In other news, ONGC is seeking a minimum $17 price for the gas it plans to produce from coal seams in its Bokaro CBM block in Jharkhand. ONGC had invited bids for the sale of 0.20 million standard cubic metres per day of gas which will be produced from the block.

Vedanta: Shares of the company tumbled 12.69% after The Economic Times newspaper carried an advertisement that the Sterlite copper smelter in Tuticorin, Tamil Nadu, is now up for sale. The company had issued an advertisements about the sale and invited Expressions of Interest. The copper smelter plant and sulphuric acid as well as copper refinery are on sale, according to the advertisement. The sale process will be executed in collaboration with Axis Capital.

Dish TV and YES Bank: Bombay Hight Court’s division bench upheld Yes Bank’s right to vote at Dish TV’s EGM on June 24. Dish TV’s promoter entity World Crest has made no case that Yes Bank’s voting right must be curtailed, high court bench says.

Economy News

India registered a current account deficit (CAD) of 1.2% of GDP in 2021-22 against a surplus of 0.9% in 2020-21. India’s trade deficit widened to $189.5 billion from $102.2 billion a year earlier, according to data released by the Reserve Bank of India (RBI).

India’s current account deficit (CAD) decreased to $13.4 billion (1.5% of GDP) in Q4FY22 from $22.2 billion (2.6% of GDP) in Q3FY22.

Net Foreign Direct Investment (FDI) inflows stood at $38.6 billion in 2021-22, which were lower than $44 billion in 2020-21. Net Foreign Portfolio Investment (FPI) recorded an outflow of $16.8 billion in 2021-22 as against an inflow of $36.1 billion a year earlier.

Global Markets

Wall Street indices rallied after signs of moderating inflation and slowing economic growth eased expectations of an aggressive rate hike by the Fed. For the week, the S&P 500 soared 6.46%, the Dow climbed 5.40% and the Nasdaq surged 7.49%.

Chinese stock markets rose after after President Xi Jinping pledged to roll out more measures to support the economy and minimize the impact of COVID-19. The Shanghai Composite index added 0.99% and the blue chip CSI 300 index rose 1.97% and Hang Seng zoomed 3.06%.

Japan’s stock markets gained for the week, as investors’ sentiments were supported by continued expectations of loose monetary policy by the country’s central bank, despite rising inflation. The Nikkei 225 index surged 2.04% and the broader Topix climbed 1.68% and the yen hit fresh lows against the US dollar.

Japan’s core consumer price index rose 2.1% year-on-year in May, higher than the Bank of Japan’s 2% inflation target, due to higher prices in non-fresh food and household durables.