On Friday, the Indian stock market continued to rise as a result of favorable global cues, a stronger rupee, and generally robust corporate profits for the June quarter. The 30-share BSE Sensex gained 712.46 points or 1.25 percent to settle at 57,570.25, close to the day's high. The Nifty closed at 17,158.25, up 228.65 points, or 1.35 percent.
According to Nair, this increased domestic market optimism and boosted the rupee against the dollar, which stoked the appetite of foreign institutional investors (FIIs). About 43 paise were added to the Indian rupee's value against the dollar.
Except for the Nifty PSU bank, all of the sectors experienced healthy gains. The Nifty metals index increased by 3.86 percent, the IT index increased by 1.7%, and the auto sector increased by 1.3%.
All sectoral indices on the BSE finished in the green, with the metal index rising 4.59 percent. The BSE energy index increased by 2.4%, while oil & gas increased by 2.21%. The benchmarks were paralleled by broader indices. The BSE midcap index increased by 1%, while the smallcap index increased by 1.38%. The India VIX, a measure of the number of volatility traders anticipate over the following 30 days, dropped substantially by 2.7% from 17.01 to 16.55.
CMP Rs 1,404| Target Price Rs 1,850| Time Period: 6-12 Months
All parties involved in the game-changing mega-merger between HDFC and HDFC Bank are expected to benefit from it. The HDFC twins will profit from the low-cost funds of HDFC Bank and its extensive branch network, while HDFC Bank will benefit from HDFC's expertise in mortgage financing. Together, the HDFC twins will form a sizable worldwide bank. We are confident that this merger would benefit several stakeholders because it would give the new company access to a wide range of products, a resilient balance sheet, and the capacity to capitalize on revenue prospects in Indian banking systems.
CMP Rs 8,650| Target Price Rs 10,500| Time Period: 6-12 Months
The Grand Vitara, a game-changing SUV with intelligent electric hybrid technology, will alter how the SUV market has developed significantly over the past three to four years due to buyers' strong preference for cutting-edge technology, particularly EVs. However, India is transitioning to electric vehicles considerably more slowly than other significant markets like China and the US. For low-income clients looking to upgrade from two-wheelers or simply petrol vehicles, Maruti has made additional advancements into vehicles that can run on a combination of CNG, which is cleaner and less expensive than petrol or diesel versions, and hybrid electric vehicles. The new hybrid model is therefore essential for Indian buyers due to the lack of suitable EV charging infrastructure, and we think the Grand Vitara will establish new standards in the SUV market.
CMP Rs 304| Target Price Rs 380| Time Period: 6-12 Months
The most anticipated demerger game is on the horizon. ITC Chairman and Managing Director Sanjiv Puri made hints during a recent conference about the conglomerate's business units, including the hotel business and maybe the IT business, being demerged. Puri also discussed several ways to increase value for stakeholders over the long run, including bonuses, buybacks, and other strategies. We think that the first firm to get demerged will be the hotel, followed by the IT listing, and then other companies based on the results. This demerger would release future value for a long-term investor. As a result, we think ITC has a chance to succeed in the medium to long term.
CMP Rs 218| Target Price Rs 300| Time Period: 6-12 Months
With a diverse footprint across the whole power industry spectrum, from production (thermal, hydro, solar, and wind) to transmission and distribution, Tata Power is the largest integrated private power utility. With a growing urban population and more economic activity driving up energy consumption recently, we observed India's electricity demand expand by 6–8% during the last first half of the current FY23. As a result, we think there is a tonne of room for ongoing expansion in the power industry. Additionally, generating money for its renewable energy business would be the next catalyst. The capital expenditures at Tata Power total Rs 14,000 crore, of which its renewable energy division will invest Rs 10,000 crore. Additionally, Tata Power intends to invest a staggering Rs 75,000 crore over the next five years in the power sector's largest source of renewable energy. As the first step toward a greater scope of wealth creation for medium- to long-term stakeholders, Tata Power Renewables entered into an agreement with Blackrock and Mubadala in April 2022.