Big Pharma, Bigger Ambitions
Aaj Ka Bazaar
Indian benchmark indices BSE Sensex and Nifty 50 are expected to open on a subdued note, as indicated by GIFT Nifty futures trading slightly above the last close of Nifty futures. Global markets experienced a slight decline on Monday, with investors anticipating a data-heavy week culminating in the US jobs report, which could influence the size of an expected rate cut. Manufacturing data revealed that Chinese activity sank to a six-month low in August, and euro zone factories continue to struggle. Political uncertainty in Europe, following gains by populist parties in German state elections, further weighed on markets. Asia-Pacific markets were mostly higher on Tuesday as South Korea's inflation numbers for August showed a YoY rise of 2%, the lowest since March 2021. The highlight of the week will be the US non-farm payrolls report on Friday, with expectations of 165,000 jobs added in August. In stock news, Hindustan Aeronautics Limited (HAL) shares will be in focus as the Cabinet Committee on Security approved a ?26,000 crore procurement proposal for 240 AL-31FP aero-engines for the Indian Air Force's Su-30 MKI aircraft, with 58% indigenous content under the Buy (Indian) category.
Markets Around Us?
BSE Sensex - 82,473.25 (-0.10%)
Nifty 50 - 25,265.15 (-0.05%)
Bank Nifty - 51,437.05?(0.01%)
Dow Jones - 41,447.78 (-0.28%)
Nasdaq - 17,713.62 (1.13%)
FTSE - 8,363.84 (-0.15%)
Nikkei 225 - 38,626.18 (-0.19%)
Hang Seng - 17,624.09 (-0.38%)
Sector: Pharmaceuticals
Mankind Pharma looks to raise Rs 9K crore
Mankind Pharma, India's fourth-largest pharmaceutical company, is set to raise over ?9,000 crore through non-convertible debentures (NCDs) and short-term commercial paper to finance its ?13,630 crore acquisition of Bharat Serums and Vaccines (BSV). The debt, with an average cost of around 8.50%, will be raised over one to five years, primarily from mutual funds and some insurance companies. The fundraising is underwritten by Deutsche Bank and Barclays. Mankind also plans to raise ?2,000-3,000 crore through an equity issue this fiscal year. This acquisition will make Mankind the leader in the women’s health segment with a 20% market share. The company, currently with a market capitalization of ?95,846 crore, had a net cash position of ?3,747 crore at the end of June.?
Why it Matters:
This acquisition is a bold step for Mankind Pharma, with the potential for significant upside if the integration is successful and the company manages its increased debt load effectively. Investors will be keenly watching the company's performance and strategic execution in the coming months.
NIFTY 50 GAINERS
SUNPHARMA - 1,839.55?(1.30%)
DIVISLAB - 5,082.00?(0.90%)
HINDALCO - 689.85?(0.87%)
NIFTY 50 LOSERS
BAJFINANCE - 7,303.10 (-1.84%)
BAJAJFINSV - 1,819.90 (-1.12%)
INFY - 1,947.00?(-0.89%)
Sector: Automobiles
Tata Motors to consolidate its position in the SUV space
Tata Motors is strengthening its position in the competitive SUV market by launching the Curvv, a mid-size SUV coupe with petrol and diesel options, starting at ?9.99 lakh. This model, which follows the earlier launch of its electric version, will compete with popular SUVs like Hyundai Creta, Kia Seltos, and Maruti Suzuki Grand Vitara. Tata Motors aims to stand out in this crowded segment by offering a unique SUV coupe design, inspired by trends in the premium market. With a current 19% market share in SUVs, Tata Motors expects the Curvv to help increase its share further. The company is also planning to expand its dealer network by 10-15% over the next year and enhance its service touchpoints. The Curvv, with advanced features and a new architecture called ATLAS, adds to Tata’s SUV lineup, which includes models like the Nexon, Harrier, and Safari.
Why it Matters:
The launch of the Curvv signals Tata Motors' commitment to innovation and growth in the SUV segment, with potential positive implications for its market performance and investor sentiment.
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Around the World
US equity futures were trading lower on Tuesday, with S&P 500 futures down 0.17% and Nasdaq 100 futures dropping 0.32%. The Dow Jones Industrial Average also fell 0.20%, while the US Dollar Index edged up 0.1%. Investors are focusing on this week’s key labour market data, which could significantly impact the markets. Last month's labour report missed expectations, leading to a sell-off in risk assets. Although the Bureau of Labour Statistics said that Hurricane Beryl had no clear impact on employment data, the household survey showed that 436,000 people couldn't work due to bad weather, and 249,000 were on temporary layoff. These factors have been linked to the increase in unemployment, and the Federal Reserve will closely analyse the upcoming labour report to decide whether to cut interest rates by 25 or 50 basis points in their next meeting.
Option Traders Corner
Max Pain
Nifty 50 - 25,200
Bank Nifty - 51,400
Nifty 50 - 25,282 (Pivot)
Support - 25,231, 25,184, 25,133
Resistance - 25,329, 25,380, 25,427
Bank Nifty - 51,438 (Pivot)
Support - 51,297, 51,154, 51,013
Resistance - 51,580, 51,721, 51,864
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TVS Motors sales goes north
The number of two-wheelers TVS Motor Company sold in August 2024 stood at 378,841, up 14% from 332,110 units in the year-ago period.