JSW's Port Expansion Plans

Aaj Ka Bazaar

Asian shares tread cautiously on Monday ahead of a packed week of corporate earnings that should test the sky-high valuations of tech stocks, while investors hope a key reading in US inflation will narrow the odds on a September rate cut. On the domestic front, the market would see some weakness due to weak numbers by prominent companies such as Reliance, Wipro, Kotak Mahindra, etc. Indian markets will likely start trading for the all-important Budget week on a tentative note amid weak cues from global peers and signs of profit-taking in our market after the recent bull run.

Markets Around Us?

BSE Sensex - 80,442.52 (-0.18%)

Nifty 50 - 24,471.70 (-0.24%)

Bank Nifty - 52,212.65 (-0.10%)

Dow Jones - 40,307.61 (0.02%)

Nasdaq - 17,726.94 (-0.81%)

FTSE - 8,155.72 (-0.60%)

Nikkei 225 - 39,554.95 (-1.28%)

Hang Seng - 17,561.46 (0.83%)

Sector: Banking

HDFC Bank meets street estimates in Q1FY25

HDFC Bank Ltd., India's largest private sector lender, delivered steady Q1FY25 results, with net profit aligning with market estimates. Although the bank faced NIM pressure, a common issue within the banking industry, we believe there are strong indicators that the bank will improve overall profitability going ahead. While the Return on Assets showed some weakness this quarter, it's important to note that the first quarter tends to be a softer period for HDFC Bank. The slight dip in asset quality is something to watch closely, but it doesn't overshadow the bank's long-term potential. Moreover, HDFC Bank's strategic shift towards changing the loan mix and increasing retail deposits should help improve margins. The bank's extensive branch network offers significant cross-selling opportunities for its subsidiaries, indirectly boosting top-line growth.?

Why it Matters:

Overall, despite some short-term challenges, our outlook for the bank remains positive. The bank's focus on optimizing its loan mix and leveraging cross-selling opportunities positions it well for future profitability and stability.

NIFTY 50 GAINERS

NTPC - 371.85?(1.97%)

HDFCBANK - 1,636.00?(1.79%)

ULTRACEMCO - 11,456.20?(1.76%)

NIFTY 50 LOSERS

WIPRO - 515.10?(-7.56%)

KOTAKBANK - 1,767.00?(-3.00%)

RELIANCE - 3,036.55?(-2.37%)

Sector: Port and Port Services

JSW Infra plans hydrogen and ammonia plant at its ports

JSW Infrastructure Ltd, India's second-largest port operator, is exploring the potential of building green hydrogen and ammonia plants at its ports. The management mentioned the company's interest in this emerging market, though no timeline has been set for the project due to its capital-intensive nature and need for suitable land and strategic port locations. The Ministry of Ports, Shipping, and Waterways has identified key ports like Kandla, Paradip, and Tuticorin as future export hubs for green hydrogen and ammonia. JSW Infra aims for a 10-12% growth rate, focusing on enhancing last-mile connectivity. The company's third-party business share has increased significantly, and they plan to complete several terminal projects by 2025, including a 2 million tonnes per annum LPG terminal at Jaigarh. Current utilization is around 63-64%, expected to rise to 66%.

Why it Matters:

This move aligns with global trends towards renewable energy and could attract environmentally-conscious investors, boosting the company's long-term growth prospects. Additionally, the government's support for green hydrogen and ammonia export hubs enhances the strategic importance of JSW's port locations.

Around the World

On the global front, the US market mainly moved lower during Friday's trading, with the Nasdaq and the S&P 500 extending the steep drop seen over the two previous sessions. The narrower Dow also moved to the downside, pulling back further off the record closing high set on Wednesday. Furthermore, the investors seemed well-prepared for news US President Joe Biden had dropped out of the election race and endorsed Vice President Kamala Harris for the Democratic ticket. Gold and Oil prices increased Monday on the commodity front, aided by a softer dollar and expectations of a US interest rate cut. At the same time, the spotlight shifted to economic data for further insights into the Federal Reserve's monetary policy path.?

Option Traders Corner

Max Pain

Nifty 50 - 24,500

Bank Nifty - 52,100

Nifty 50 - 24,631 (Pivot)

Support - 24,407, 24,284, 24,061

Resistance - 24,754, 24,977, 25,101

Bank Nifty - 52,332 (Pivot)

Support - 52,079, 51,892, 51,638

Resistance - 52,519, 52,773, 52,959

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Fund Raising

The amount raised by mining conglomerate Vedanta stood at US$1 billion through a qualified institutions placement (QIP) from investors including Goldman Sachs AMC and SBI Mutual Fund.

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