Market this week 30-9-2023
The market closes unchanged despite turbulence; FII selling continues in week ten.
The very volatile week that concluded on September 29 was driven by F&O expiry, while global indications like the strengthening dollar, rising US bond rates, and skyrocketing crude oil prices had minimal effect on the major Indian indices. The market remained under stress due to continued selling by FIIs and the US central banks’ refusal to decrease interest rates in the foreseeable future.
BSE Sensex decreased by 0.27 percent, or 180.74 points, to close at 65,828.41 this week, and Nifty50 decreased by 0.18 percent, or 35.95 points, to conclude the week at 19,638.30.
Stock watch: HBL Power nearly triples in 6 months; defense, railway play driving gains
HBL Power Systems continues to provide its investors with multi-bagger returns while putting a strong emphasis on indigenization and continuing to favor power stocks. The stock has increased by over 183.15 percent during the past six months. The stock increased by more than 5% on September 29 and traded throughout the day between Rs 260 and Rs 266.
A contract for an investment of up to Rs 150 crore in Tonbo Imaging India, a top supplier of electro-optic solutions for defense applications, was signed by HBL Power in February 2023. Additionally, HBL intends to invest in Tonbo Singapore.
According to a stock note from HDFC Securities, Tonbo will be able to supply items to keep up with the rapid expansion of its order book thanks to HBL’s extensive production infrastructure for electronics, mechanical systems, assembly, and testing. According to the source, HBL will also probably take advantage of Tonbo’s intellectual property strategy and development abilities as they pertain to defense electronics through this project. HBL Power has so far contributed Rs 86.7 crore to Tonbo Imaging.
By demerging, Vedanta hopes to draw sovereign wealth funds and considers debt reduction.
Vedanta Limited, owned by billionaire Anil Agarwal, revealed its intention to split into six independent companies on September 29: Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Steel and Ferrous Materials, Vedanta Base Metals, and the remaining Vedanta Limited.
Every shareholder of Vedanta Limited will also receive one share of each of the five newly listed businesses as part of the vertical split demerger that is planned.
Without being restricted by the overall framework, independent businesses will be able to develop their own growth strategies. They will have more agile databases, be able to innovate more quickly, make strategic decisions with greater conviction, and react proactively to market upheaval, according to Misra.
Auto shares slightly higher before monthly sales figures
On September 29, the Nifty Auto index increased 0.57 percent to 16,184.40. Compared to Mahindra & Mahindra, companies like Tata Motors, Ashok Leyland, and Hero Motocorp have increased by more than 1%.
Ashok Leyland increased by 1.81 to Rs 177.25, Hero Motocorp increased by 2.85 percent to Rs 3,054.50, Bajaj Auto increased by 1.22 percent to Rs 5,067.45, while Mahindra and Mahindra decreased by 0.02 percent to Rs 1,555.75. Tata Motors shares increased by 2.75 percent to Rs 631.
With 1,89,082 vehicles sold in August, Maruti Suzuki experienced its greatest monthly sales volume. Mahindra and Mahindra sold 70,350 automobiles, with a record-breaking 37,270 SUV sales in the domestic market. Sales at Bajaj Auto had dropped 20 percent.
Lupin rises to a 52-week high on US FDA approval for the Nagpur unit
The Lupin Nagpur unit was designated as Voluntary Action Indicated (VAI) in the EIR, which represents the conclusion of an inspection. Any site that the FDA discovers to have lags during its inspection but whose severity is insufficient to warrant an official response is classified as VAI.
In July of last year, the USFDA issued Form-483 with two observations for Lupin’s Nagpur oral solid dosage factory.
The VAI status encouraged investors since it is a positive step for Lupin, which has struggled with clearance for a while.