Indian markets after recent sharp recovery remained resilient despite global concerns as the Nifty50 consistently held above the crucial 17,000 mark. In the coming week, benchmark indices are expected to remain volatile given the monthly F&O expiry with investors keeping a close watch on Ukraine war & oil prices for further direction and monthly auto sales data, experts feel.
The BSE Sensex fell 502 points to 57,362, and the Nifty50 declined 134 points to 17,153, while the broader markets were largely flat. The BSE Midcap index was down 0.15 percent, while the Smallcap index gained a third of a percent.
Zee Entertainment | The stock jumped 14 percent after largest shareholder Invesco dropped the demand for an overhaul of the company’s board. Invesco Developing Markets Fund said on March 23 that had decided not to pursue an extraordinary general meeting (EGM) to add six independent directors as Zee’s merger with Sony would achieve its aim of strengthening board oversight. Jatin Damania, Vice President – Fundamental Research, Kotak Securities believes that the merger with Sony offers various opportunities. Sony-Zee (MergeCo) would become India’s number one entertainment broadcast network with 28-30% share in TV viewership with a portfolio including meaningful strength in Hindi and regional entertainment, and weak presence in sports genre and digital. Merger synergies of Rs 5-7 billion over 2-3 years would improve profitability and enable investments. Any investment from James Murdoch/Uday Shankar in Viacom18 (per unauthenticated media articles) would result in a rise in competitive intensity for Zee.
Inox Leisure | The share price added 13 percent as the much-anticipated SS Rajamouli’s big-budget movie RRR opened in cinemas, with both PVR Ltd and Inox Leisure Ltd stocks hitting over a 25-month highs. “A robust revival is on the cards for the multiplex industry. Cinemas have now reopened pan-India and most key states are permitting full occupancy. Multiplex ticket prices are up 14 percent, with similar recovery across cities. Declining share of single screens remains an opportunity, Edelweiss Research said in a note to investors. Analysts said the spend per head (SHP) and average ticket price (ATP) have both already gone beyond pre-Covid levels.
Supreme Petro | The scrip gained over 7 percent last week. The board of the petrochemicals player approved the Phase II expansion of its expandable polystyrene (EPS) plant at Nagothane, Maharashtra by 30,000 MTA. The Board has also approved the setting of second-line of Extruded Polystyrene Board (XPS) with the capacity of 1,00,000 M3 and increasing the Masterbatch and Compounds capacity by 50,000 MTA, media reports said.
Sterlite Technologies | The share price was up 18 percent in the week gone by. The company announced the launch of industry’s first end-to-end 5G Enterprise solution. STL said that the 5G Enterprise solution will address the growing demand for private 5G enterprise connectivity for campus, industrial and venue applications. “This 5G Enterprise solution will comprise Garuda, STL’s O-RAN 5G indoor/outdoor small cells, CYRUS, Open Distributed Unit and Centralised Unit from ASOCS and VMware Edge Compute Stack as the virtualization layer and cloud management,” STL said in a statement.
Vedanta | The stock price rose over 8 percent last week. Vedanta Limited has said in a regulatory filing that the board of directors of the company at their meeting held on March 25 approved investments in three projects. The projects approved by the Vedanta board are related to Cairn Oil & Gas, Zinc International – Gamsberg Phase-2 Project; and ESL Steel Limited’s 3 MTPA growth project. Vedanta said in the regulatory filing that the strategic priority for the Cairn Oil & Gas business will be to increase near term volume through infill wells and add resources through exploration.
One97 Communications | The scrip was down over 8 percent. The stock has witnessed a market cap erosion of around Rs 1 lakh crore in four months. Macquarie Capital Securities had, last week, slashed the target price of One97 Communications to Rs 450, down by 36 percent as compared to Rs 700 it had predicted in February. The brokerage firm sharply marked down its valuation estimate for Paytm in line with the derating since in global financial technology companies. “RBI’s regulations on digital payments and BNPL (Buy Now Pay Later), and stricter KYC and compliance norms will all be adverse developments for fintech companies in general, potentially bringing down unit economics and/or growth, in our view. We see these as additional headwinds for Paytm, which could cloud its path towards profitability,” the Macquarie report stated. “Paytm stock is in a continuous downtrend on negative sentiments and may touch the levels of 500 – 450 in the near term. Investors must avoid this stock for time being,” said Dr Ravi Singh-vice president at ShareIndia.
L&T Finance Holdings | The share rose over 16 percent in the week gone by. Larsen & Toubro, the promoter of L&T Finance Holdings acquired 2.76 percent stake in the company. “Larsen & Toubro has acquired 6,82,25,347 equity shares of L&T Finance Holdings…” the non-banking financial company said in a stock exchange filing on Thursday. L&T earlier held 63.5 percent stake in L&T Finance Holdings and the acquisition raises its stake to 66.26 percent. Jigar Patel of Anand Rathi Shares & Stock Brokers believes that investor can buy at current levels and buy another tranche at Rs 70 with target of Rs 120 with plausible support seen at Rs 60.
Adani Power | The share price gained over 14 percent after the company signed a Memorandum of Understanding (MoU) with IHI Corporation and Kowa Company (Kowa) for environmentally sustainable generation. The parties aim to study the feasibility on a modification to achieve 20% liquid ammonia co-firing ratio and extend this to a ratio up to 100% mono-firing at the Adani Power Mundra Coal Fired Power Plant. Co-firing is the combustion of two different fuels aimed at increasing efficiency.
Shopper Stop | The scrip added over 10 percent in the week gone by. Shoppers Stop promoter group companies Raghukool Estate Developement LLP, Casa Maria Properties LLP, Palm Shelter Estate Development LLP and Capstan Trading LLP collectively purchased 74,000 equity shares worth Rs 3 crore of the company from open market. For October-December quarter, Shoppers Stop reported a strong operational performance with earnings before interest, taxes, depreciation, and amortization (ebitda) margins improving 580 bps YoY to 19.2 percent.
JK Cement | The stock price was down over 9 percent last week. Rajnish Kapur, COO, JK Cement said that there is an unprecedented increase in raw material costs. He mentioned that the increase in input costs has been around 70 percent which could impact demand in the short-term, according to a CNBC-TV18 report. “We have seen an unprecedented cost increase of fuel. In a day, we saw coal prices shooting through the roof and therefore, there is an increasing pressure at this point of time in terms of cost in the cement sector. Consequently, I don’t know if the impact on demand is going to be very severely felt; there could be a short-term impact. Cost increase has been fairly substantial. We can see over 70 percent kind of a price increase,” he said.
Sandip Das
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