The assembly elections started off with a lot of uncertainty, but barring Telangana, it was the BJP that swept the Hindi heartland, comprising Rajasthan, Madhya Pradesh, and Chhattisgarh. Exit polls had got the intensity of swing towards the ruling NDA way off target in all the states except Telangana. The moral of the story is that this is the kind of outcome the markets were looking for with just less than 5 months to go until the central elections. This is likely to be seen as a decisive vote in favor of the reform process.
With the latest GDP numbers out and coming in better than expected, all eyes will now shift to the RBI monetary policy to be announced on December 7, 2023. While not much tinkering on the repo rates is likely, the big question is whether the RBI would change its stance, and that could have longer-term ramifications. But the real expectation of the market is that the RBI raises its GDP growth estimate for FY24 from the current 6.5% to closer to 7% after the stellar 7.6% GDP growth in the second quarter of FY24.
Ultratech Cements, of Aditya Birla Group, is gradually moving towards its cement target capacity of 200 metric tons per year (MTPA). Currently, its capacity stands at 133 MTPA, but it is set to be enhanced with the acquisition of the Burnpur Cement plant as well as the recent acquisition of the cement business of Kesoram Industries. Ultratech also has its organic expansion going on simultaneously. Adani started the game with a huge advantage of 70 MTPA of cement capacity, and Ultratech wants to maintain the lead.
The market cap of 9 out of the 10 most valuable companies on the NSE gained Rs 130,392 crore, with TCS and Bharti Airtel being the top gainers in the Nifty. The other gainers in the top 10 were stocks like HDFC Bank, ICICI Bank, Infosys, and Hindustan Unilever. Bharti Airtel and TCS added Rs42,700 crore between them. ITC and Bajaj Finance were also among the gainers, while Reliance Industries was the biggest loser in the top 10 stocks. During the week, the Nifty gained a massive 1,511 points after the GDP surge in Q2.
UPI transactions in the month of November jumped by 54% to 11.2 billion transactions. In terms of value, the total transaction value was up 46% to Rs17.4 trillion. UPI transactions are slated to reach $150 billion by the end of 2026, which is just about three years away. UPI has today become the default mode for peer-to-peer (P2P) transactions as well as peer-to-merchant (P2M) transactions. UPI is a low-cost mode of moving money, so it has caught on rapidly. UPI transaction volumes are to hit 20 billion in next 18 months.
GAIL India Ltd. has filed a $1.8 billion arbitration against SEFE Marketing in London. SEFE Marketing is a Singapore-based company, and London is the jurisdiction for the legal case. The litigation relates to the non-supply of LNG cargoes to GAIL under a long-term contract. SEFE Marketing had signed a deal with GAIL to supply 2.5 million metric tons of LNG over 20 years. Post-Russia-Ukraine war, the supplies got disrupted as they originated from Gazprom in Russia. Force Majeure will not apply due to other sources of supply.
India’s sugar output for the October–November period was 11% lower at 4.32 million metric tons. The Indian sugar cycle starts in October and extends up to September next year. The output was disrupted in two of the major sugar-producing states, Maharashtra and Karnataka. Output in Uttar Pradesh was higher, but that could not rectify the total supply situation. The quantity of sugar produced is directly linked to the quantity of sugarcane crushed, and that was lower than the number of mills producing the sugar.
Kross Ltd., a specialist in making forging components for top OEMs, has filed for its IPO. The Rs500 crore IPO will comprise a fresh issue of Rs250 crore and an offer for sale (OFS) of Rs250 crore. The company may also look at a pre-IPO placement of Rs 50 crore, in which case it would be reduced from the IPO size. Its precision and forging products are supplied to players like Ashok Leyland and Tata International DLT. It is a profit-making company with 7% PAT margins. The IPO will be led and managed by Equirus Capital Ltd.