The Sunday Market Review: TCS, Exide & Britannia Held Headlines In A Busy Week

Weekly Market Review

The Indian Markets are consolidating at higher levels and remained in a band of +/- 250 points range. Despite the kind of volatility we have seen in our markets in the last month, the domestic equity money in the market is unstoppable as the SIP numbers were at Rs 24,500 crore, which means it has hit another record high.

If we analyse the market structure, we think that everything you throw at this market, be it geo-political tensions, global market underperformance, FII selling, etc., it has held on steady because the local money has been unshaken and that is the reason markets have been what they have.

This week, we had our own Reserve Bank of India’s MPC meeting and our take from the recent commentary was its shift from a dovish stance to a neutral outlook, maintaining the repo rate at 6.5 per cent and keeping the inflation target at 4.5 per cent, with a GDP growth forecast of 7.2 per cent for FY25.

We believe there is potential for continued activity in mid and small-cap, which appear attractive following recent declines and anticipated strong quarterly results. However, concerns remain regarding USD 7 billion in FIIs selling over the past 7-8 trading sessions and rising oil prices due to geopolitical tensions, which may weigh on market sentiment.

With this, let’s present our weekly market review.    

How Did the Markets Fare Last Week?

On a weekly basis, which ended on Friday, the Indian benchmark indices ended in red. Sensex and Nifty were down between 0.2-0.4 per cent each, while Midcaps outperformed and were up 1.1 per cent.

What Might Keep the Markets Busy Into the Next Week?

As the Q2FY25 earnings season kick-starts with IT major TCS coming out with its results, markets will monitor the performance of India Inc. and, most importantly, the management commentary, as this will help in forecasting the earnings potential in the quarters to come. Investors will also look at Cumulative Industrial & Manufacturing Output and the important India CPI & WPI data that will provide us with the overall health of the economy.

Apart from this, the market continues to take cues from global peers. On the global front, we have data points like the US Producer Price Index (PPI), the Fed’s Waller speech, Initial Jobless Claims, Retail Sales and Industrial Production etc., that will keep investors busy.

Crude and FII Flows

Brent Crude Oil trades around USD 77/bbl after the U.S. government's weekly inventory report showed a larger-than-expected oil inventory offset the Iran -Israel geopolitical tension.

On the other hand, FIIs were net sellers for the week.

Sector in Focus

IT, pharma and auto remained in focus during the week.

Stocks That Made Headlines During The Week

• TCS:
  Company reported in line with expected Q2 Ebit and Ebit margin. Announced Revenue up 2.6 per cent to Rs 64,259 crore (QoQ) vs expectation of Rs 6390 crore. EBIT was up 4.9 per cent to Rs 15,465 crore (QoQ) against the expectation of Rs 15,700 crore. EBIT margin at 24.1 vs 24.7 per cent (QoQ) vs expectation of 24.5 per cent. Net profit down 1.1 per cent to Rs 11,955 crore (QoQ) while expectation was of Rs 12,500 crore and also announced a second interim dividend of Rs 10.

Sudarshan Chemical:

• Sudarshan Chemical has entered into a definitive agreement with the Germany-based Heubach Group, on its acquisition in a combination of an asset and share deal. This strategic acquisition will create a global pigment company, combining Sudarshan Chemical’s operations and expertise with Heubach's technological capabilities.

NSE:

• Company will phase out weekly index derivatives contracts for Bank Nifty, Nifty Midcap Select, and Nifty Financial Services, effective November 13, 18, and 19, respectively.

Exide Industries:

• Exide Industries invested Rs. 99.99 crore by way of subscription in the equity share capital of its wholly owned subsidiary, "Exide Energy Solutions Limited" ('EESL'), on rights basis. With this investment, the total investment made by the Company in EESL stands to Rs. 2,852.24 crore. 

• ESSL is in the process of setting up a green field plant at Bengaluru for manufacturing & selling lithium-ion battery cells, modules and pack business. The equity investment in ESSL on a right basis is to fund the above green field project and meet its various funding requirements. 

Mazagon Dock:

• Maharashtra State Power Generation Company Limited (MAHAGENCO) has placed a Purchase Order on Mazagon Dock Shipbuilders Limited for Supply Installation and Commissioning of AI based Comprehensive Infrasecure Project at GTPS-Uran and KGSC-Pophali at a total price of Rs 121.67crore including al taxes and duties.

Uno Minda:

• The Toyoda Gosei Uno Minda India Pvt. Ltd. _{formerly known as Toyoda Gosei Minda India Pvt. Ltd.), Joint Venture of Uno Minda Ltd., has started its commercial production at its manufacturing facility located at Neemrana, Rajasthan.

Endurance Technologies:

• Capital expenditure for a greenfield project has been approved and that Endurance Technologies plans to set up a new facility to manufacture alloy wheels for two wheelers on a land parcel of ~30 acre situated at Aurangabad Industrial City (“AURIC”), Sambhajinagar. 

• The Company currently manufactures alloy wheels at its plant in Chakan, Dist. Pune, where the capacity stands at 2,30,000 sets per month. The proposed capacity installation will add 1,80,000 sets of two-wheeler alloy wheels per month. The start of production is envisaged in Q2FY26.

GR Infra:

• The company has received Letter of Acceptance dated 9th October 2024 from Maharashtra Metro Rail Corporation Limited (Nagpur Metro Rail Project) under EPC mode valued at Rs 903 crore. The timeline for construction of the said metro project is 30 months. 

Britannia:

• The company has invested a sum of Rs 87.50 lakh towards acquisition of 8.75 lakh Equity Shares of Rs. 10/- each, equivalent to 6.04% stake in the Equity Share Capital of Suryaurja One Private Limited. 

• The acquisition would enable Britannia to procure renewable energy for its factory located at Bidadi, Karnataka and comply with the regulatory requirements for being a captive user under the Electricity laws.

PNC Infratech:

• The company has been declared Ll (First Lowest) bidder in a EPC project on ltem rate percentage namely “Integrated Infrastructure Development of 20M & above wide Roads, Construction of Various Major & Minor Structures (Viz Flyover, Minor Bridges, VUPS, PUPS etc.) and Allied Electrical Works (Street Light) under NAINA Project” on valued at Rs 2,090.59 crore. 

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