Brief Summary
This video provides a comprehensive market update, discussing various factors influencing the Indian stock market, including trade negotiations, policy changes, and corporate updates. It covers topics such as the Maharashtra liquor policy, IEX stock pressure due to market coupling, potential AC temperature control regulations, and updates on companies like HAL, IRCTC, and Jio Financial Services.
- Market indices closed higher, but midcap and smallcap indices saw corrections.
- Trade negotiations between India and the US are progressing positively.
- Maharashtra's new liquor policy impacts liquor stocks differently, benefiting GM Breweries and Sula Vineyards.
- IEX faces pressure due to potential market coupling in power exchanges.
- Government may regulate AC temperatures to reduce power consumption.
Market Update
The Sensex closed up 123 points at 82,515, and the Nifty rose 37 points to 25,141. Midcap and smallcap indices corrected by 22% and 23%, respectively, while Bank Nifty corrected by 0.3%. Trade negotiations between India and the US are ongoing, with discussions on digital trade, customs, and legal frameworks showing promise for a balanced agreement. China's potential restrictions on rare earth magnet exports are causing concern for auto companies globally, but discussions are underway for China to grant licenses to Indian automakers, which could provide relief. The Indian government is also working to reduce dependency on China for these magnets by involving PSU companies and considering a PLI scheme. Trade discussions between US and Chinese officials are progressing positively, potentially easing global trade tensions.
Maharastra liquor Policy
The Maharashtra government's new liquor policy increases excise duty, aiming to generate ₹14,000 crores annually for welfare schemes. The policy significantly raises prices for Indian-made foreign liquor and premium foreign liquor, while country liquor sees a smaller price increase. This shift is expected to benefit country liquor sales, positively impacting GM Breweries, a Maharashtra-based company. Beer and wine are exempted from the excise duty hike, benefiting wine manufacturers like Sula Vineyards. The policy also introduces a new category of Maharashtra Made Liquor, encouraging local manufacturers to register new brands.
IEX update
IEX (Indian Energy Exchange) stock experienced pressure due to news about potential market coupling in power exchanges. Market coupling would lead to uniform price discovery across all power exchanges, potentially reducing IEX's market share as buyers could purchase power from any exchange at the same price. The Power Minister plans to consult with stakeholders about the benefits of market coupling. If implemented, it could allow power purchases from various exchanges, including IEX and HEPX, leading to further pressure on IEX stock due to decreased market share.
AC Issue
The Union Minister of Power and Urban Affairs has suggested that the government may regulate AC temperatures to reduce power consumption. The proposed rule would set the minimum temperature for ACs in homes, offices, and cars at 20°C and the maximum at 28°C. This measure aims to decrease the country's increasing power consumption by limiting how low AC temperatures can be set.
charges On UPI transactions
The government is considering implementing merchant fees on UPI transactions above ₹3000. While end-users would not be charged, merchants receiving UPI payments might incur fees. This proposal addresses the high charges faced by banks and payment aggregators for large transactions, with the government exploring collecting fees from merchants.
BSE Update
BSE (Bombay Stock Exchange) stock faced pressure after being added to the ASM (Additional Surveillance Measure) framework. This framework imposes security and trading restrictions on stocks with high volatility or momentum, including higher margin requirements for intraday trading. The addition of BSE to the ASM framework led to increased margin requirements, causing pressure on the stock.
HAL update
Hindustan Aeronautics Limited (HAL) received approval for its Dhruva Advanced Light Helicopters and Prachand Light Combat Helicopters after inspections following an accident in January. The approvals allow HAL to resume the billing process for these helicopters, which had been set aside pending safety confirmations. This development is expected to positively impact HAL's financial performance in the coming quarters.
IRCTC Update
Indian Railways, through IRCTC, is considering changing the train chart preparation time from four hours to 24 hours before the journey. This change would provide passengers with more advance notice regarding the confirmation status of their tickets. If a ticket remains on the waiting list 24 hours before departure, passengers would have more time to make alternative travel arrangements.
Texmaco Rail Update
Texmaco Rail has been awarded a contract worth approximately ₹44 crores by Mumbai Railway Vikas Corp. The contract involves various works related to traction transformers for Central Railways and must be executed within 18 months. This new order win is a positive development for Texmaco Rail.
Interarch Building
Interarch Building, a manufacturer of pre-engineered steel buildings, has secured a new order worth approximately ₹45 crores. The company will manufacture and supply pre-engineered steel buildings for a customer, including erection works, with the contract to be executed within six months. The customer's name was not disclosed due to commercial issues.
reliance Infra update
Reliance Defence, a subsidiary of Reliance Infrastructure, has signed an agreement with German-based Dale Defense for a new greenfield project. This project aims to manufacture 200,000 artillery shells and 10,000 explosives annually. The project could generate revenues of up to ₹10,000 crores and will support the supply of System Volcano 155 mm ammunition to the Indian Armed Forces.
waaree energy Update
Waaree Energies' subsidiary, Solar Americas, has won a new order to develop utility-scale solar and energy storage projects in the US. The order requires the supply of 599 MW solar modules, with contract execution scheduled for the calendar year 2026. This order win is a positive development for Waaree Energies.
Jio finance Update
Jio Financial Services is expanding its business by offering various financial services and obtaining necessary approvals. Their Jio BlackRock joint venture received approval from SEBI to operate a mutual fund business and launched its website. Additionally, they received a Certificate of Registration from SEBI for Ganujio Black Rock Investment Advisors Private Limited to act as an investment advisor. These approvals are expected to facilitate the growth of Jio Financial Services' new businesses.
GRSE update
Garden Reach Shipbuilders has signed a contract to construct two coastal research vessels for the Geological Survey of India. These vessels will support offshore geological mapping and mineral exploration. This contract win is a positive development for Garden Reach Shipbuilders, reflecting their success in securing shipbuilding orders.
MindaCorp Update
Minda Corporation has entered into a joint venture agreement with Japan's Toyodanso to manufacture advanced automotive switches in India. Minda Corporation will hold a 60% stake in the joint venture company, while Toyodanso will hold a 40% stake. This partnership aims to cater to the automotive segment's needs by manufacturing various products.
Talbros Update
Talbros Automotive Components Limited, along with its joint venture companies, has secured new long-term contracts worth ₹580 crores. These orders are to be executed over the next five years, with ₹160 crores from the domestic segment and ₹150 crores from export orders. This is a positive development for Talbros, indicating strong order inflows.
Premier Explosives Update
Premier Explosives has received a new order from an international client worth approximately ₹2.6 crores. The order involves the supply of commercial explosives and must be executed within two months.
Mahindra Logistics
Mahindra Logistics has launched a new state-of-the-art warehouse facility in Chakan, Maharashtra, exclusively for Cummins India. This facility will help Cummins India improve the efficiency of its supply chain and enhance its logistics capabilities in India.
Selan Exploration Update
Selan Exploration, involved in oil and gas exploration, announced that the merger of its promoter group company, Antelope Energy Private Limited, with Selan Exploration has been approved by the NCLT Chandigarh bench. This approval allows the merger process to move forward.
Nazara Block Deal
Rekha Jhunjhunwala, wife of the late Rakesh Jhunjhunwala, has been reducing her stake in Nazara Technologies. Between June 2nd and June 6th, she sold nearly 1.98% of her stake, reducing her total stake in Nazara Technologies to 5.07%.
AB capital Blockdeal
A block trade took place in Aditya Birla Capital, with nearly 2.3 crore shares changing hands at ₹242.65 each.
Wipro Block Deal
A large trade occurred in Wipro, with shares worth over ₹18 crores changing hands at ₹259 per share. Details of the buyers and sellers in these block trades will be updated later.
