Big Boost for HAL

Aaj Ka Bazaar

The US market ended mixed overnight as Nvidia shares surged in otherwise lacklustre trading. The tech-heavy Nasdaq Composite rose 0.6% to a new record closing high, and the S&P 500 finished marginally higher. Asian markets traded mostly lower this morning while the dollar gained, and benchmark US Treasury yields hit a four-week high. Indian shares may drift lower on Wednesday as investors react to a significant surge in oil prices overnight and a jump in US Treasury yields to multi-week highs. Anxiety ahead of the general election results, due next week, may also keep investors on the sidelines. On stock-specific news, LIC chairman Siddhartha Mohanty has said that the insurer would enter the health insurance segment and can explore inorganic options if such an opportunity arises. There are expectations that composite licences may be permitted by amending the Insurance Act.

Markets Around Us?

BSE Sensex - 75,170.45 (-0.29%)

Nifty 50 - 22,888.15 (-0.19%)

Bank Nifty - 49,142.15 (-0.28%)

Dow Jones - 39,065.99 (-0.01%)

Nasdaq - 16,920.79 (1.10%)

FTSE - 8,304.17 (-0.16%)

Nikkei 225 - 38,855.37 (-0.11%)

Hang Seng - 18,821.16 (-0.03%)

Sector: Mine and Minerals

Coal India sets up subsidiary for coal to chemical biz

State-owned Coal India (CIL) has established a new subsidiary, Bharat Coal Gasification and Chemicals Ltd (BCGCL), to venture into the coal-to-chemicals business. CIL owns a 51% stake in BCGCL, with the remaining 49% held by Bharat Heavy Electricals Ltd (BHEL). This follows a joint venture agreement between CIL and BHEL, with approvals from NITI Aayog and the Department of Investment and Public Asset Management (DIPAM). BCGCL aims to produce ammonia and nitric acid as intermediate products and ammonium nitrate as the end product. Additionally, CIL has partnered with GAIL to set up a coal-to-synthetic natural gas project in Burdwan, costing around Rs 13,052 crore. Coal India produces over 80% of India's coal output.

Why it Matters:

By entering the coal-to-chemicals business, CIL positions itself as a forward-looking player in the coal industry, potentially increasing its competitiveness and market share. Emphasizing sustainable and value-added products can enhance CIL’s brand as an innovative and responsible company, which may attract ESG-focused investors.

NIFTY 50 GAINERS

DIVISLAB - 4,385.00?(3.05%)

SBILIFE - 1,452.00?(2.96%)

HDFCLIFE - 578.00?(2.44%)

NIFTY 50 LOSERS

ADANIPORTS - 1,400.65?(-2.17%)

POWERGRID - 312.75?(-1.64%)

BPCL - 645.65?(-1.59%)

Sector: Defence

HAL in talks with France for mega defence deal

The shares of Hindustan Aeronautics Limited (HAL) are expected to be in focus on Wednesday as contract negotiations between India and France for a Rs 50,000 crore deal involving 26 Rafale Marine fighter jets begin. A high-level French delegation, including representatives from Dassault Aviation and Thales, will meet with Indian Defence Ministry officials to start the discussions. The negotiations aim to finalize the acquisition of these jets for the Indian Navy's aircraft carriers, INS Vikrant and INS Vikramaditya. Both governments are working to conclude the deal by the end of the financial year, following France's response to India's tender in December. This deal is seen as a significant boost for HAL and the Indian defence sector.

Why it Matters:

The commencement of these high-profile negotiations signals robust demand for defence capabilities in India, potentially boosting investor confidence in HAL’s growth prospects. The government's involvement in expediting the project timeline underscores the strategic importance of this deal, suggesting strong governmental backing for HAL, which could provide more stability and predictability for investors.

Around the World

U.S. stock futures are rising as traders return after the Memorial Day holiday. By early Tuesday, S&P 500 futures increased by 0.2%, Nasdaq 100 futures gained 0.3%, and Dow futures rose by 0.1%. Investors are focused on upcoming inflation data, particularly the Federal Reserve's preferred measure, the personal consumption expenditures price index, set to be released on Friday. This data will influence the Fed's interest rate decisions. Additionally, the Conference Board's consumer confidence survey is expected to show a slight decline in May. Overall, the market is reacting to a mix of economic data and corporate earnings, with inflation and consumer confidence being crucial indicators for the week's trading activity.

Option Traders Corner

Max Pain

Nifty 50 - 22,900

Bank Nifty - 49,100

Nifty 50 - 22,915 (Pivot)

Support - 22,831, 22,775, 22,691

Resistance - 22,971, 23,055, 23,111

Bank Nifty - 49,232 (Pivot)

Support - 48,953, 48,764, 48,485

Resistance - 49,420, 49,699, 49,888

Did you know?

Dividends Galore

An amount of Rs 2.11 trillion, the Reserve Bank of India is transferring to the government of India as dividends for FY 2023-24, the highest so far.

Disclaimer