Weekly Market Wrapup

FII selling figure crosses the 1 lakh crore mark for the first time in the history

FII’s Selling Spree in October crosses 1 lakh mark – making it the highest outflow by FII’s till date in the Indian markets!

FII selling Total figure till now: 1,00,240 crores

More 4 trading sessions left in October!

Highest outflow till date was of 61,973 crores in March 2020 during Covid.

Quick Recap:

• This is the fourth straight week of losses for benchmark indices since the week ended on September 27.
• FIIs sold equities worth ?98,000 crore in the cash segment on a net basis in October so far.
• NIFTY Realty, Metal and Media were lead losers among sectoral indices this week, dropping 7% each.

Unlisted share news:

• OYO Reports Profit in Q2 FY2025: OYO reported a profit of ?158 crore in Q2 FY2025, rebounding from a loss in Q2 FY2024, with revenue reaching ?1,578 crore. The acquisition of G6 Hospitality and planned expansion reinforce OYO’s international growth strategy.
• Swiggy Lowers IPO Valuation: Swiggy has reduced its IPO valuation to $12.5-$13.5 billion due to market volatility, down from an initial target of $15 billion. The IPO is expected to open in early November, with Swiggy set to list on November 13.
• New Partnership for Customer Engagement: Swiggy has partnered with SwopStore to enhance customer engagement and retention, leveraging SwopStore’s technology for its 14.2 million active users. This collaboration aims to drive significant sales growth through innovative strategies.
• NSE Awaiting SEBI Approval for IPO: The National Stock Exchange (NSE) is awaiting SEBI approval for its delayed IPO, now valued at over $36 billion following a recent acquittal of regulatory allegations. CEO Ashish Kumar Chauhan emphasized the need for a no-objection certificate to proceed with IPO preparations.
• HDFC Bank Approves ?12,500-Crore IPO: HDFC Bank's board has approved a ?12,500-crore IPO for its NBFC arm, HDB Financial Services, which includes a ?2,500 crore fresh equity issue. This IPO is set to be the largest by an NBFC in India, aimed at expanding its lending book and enhancing digital infrastructure.
• Meituan Sells Stake in Swiggy: Chinese platform Meituan has sold over $200 million of its stake in Swiggy to a US investor, reducing its holding to 3.88%. This transaction occurs ahead of Swiggy's anticipated public listing, which aims to raise $450 million through a fresh share issue.
• Ixigo Acquires Stake in Zoop: Ixigo is set to acquire a 51% stake in train food delivery firm Zoop for ?12.54 crore, aiming to integrate Zoop's services into its platform. This acquisition strengthens Ixigo’s train vertical, which accounted for 53% of its Q2 FY25 revenue.
• Moglix Reports Modest Growth: Moglix reported a modest 5.5% revenue growth to ?4,964 crore in FY24, following an 82.6% growth in FY23. Despite flat growth, the company reduced its losses by 16%, bringing them down to ?189 crore.
• NLC India Plans ?4,500 Crore IPO: NLC India Renewables Limited (NLCIRL) plans to raise ?4,500 crore via IPO, offering 51% shares. According to its Chairman and MD, the IPO is expected to hit the markets by June 2025.
• WeWork India Plans IPO in 2025: WeWork India's joint venture plans to IPO in the first half of 2025 at a valuation of $2-2.5 billion. The DRHP is expected to be filed by the end of this fiscal year, with initial estimates suggesting a raise of ?3,000-4,000 crore.
• Vivriti Capital Secures Funding: Vivriti Capital raised $25 million from the Asian Development Bank through a senior secured debt facility to support its green finance initiatives, including funding for the EV ecosystem and renewable energy projects.
• Shiprocket Reports Revenue Growth: Shiprocket's operating revenue rose 20.8% to INR 1,316 crore in FY24, while net losses widened by 74.4% to INR 595 crore due to a one-time restructuring impact of INR 244 crore from acquired entities.
• Swiggy Raises Platform Fee: Swiggy has increased its platform fee to INR 10, a 43% increase from the previous INR 7, following similar moves by rival Zomato. Since its introduction in April 2023, the fee has surged by 400%.
• CCPA Sends Notices to Companies: The Central Consumer Protection Authority (CCPA) has sent notices to 11 companies, including Blinkit, Zepto, and Meesho, for violating metrology norms under the Legal Metrology Act. Swiggy Instamart, MyGlamm, and Snapdeal are also among the recipients.
• Waaree Energies’ IPO Oversubscribed: Waaree Energies' ?4,321 crore IPO was oversubscribed 4.52 times on Day 2, driven by strong demand from non-institutional investors. The company's expected post-IPO market capitalization is over ?43,179 crore.
• OYO Launches New B2B Product: OYO has rolled out a new B2B product designed to meet corporate travel and event planning needs across India.
• Swiggy may have a ‘10 min’ answer for medicine delivery platforms Tata 1mg and Apollo Pharmacy.

Some technical tweaks from Traders Diary!

Nifty 50’s low on Friday (25th October) was 24,074 which was exactly the low on the day of the Budget Day (23rd July)

Nifty 200 Day Moving Average: 23,400

Sectoral Highlights:

On a weekly basis, the Nifty ended 2.7% lower and the Sensex lost 2.2%. All sectoral indices on the NSE ended lower, with the Realty and Metal losing the most. ?

1.?PSU and Metal sectors led the market decline, with significant underperformance throughout the week.

2.?All other sectors ended in the red, reflecting overall negative market sentiment driven by Q2 earnings results.

3.?Investor caution was evident across most sectors due to mixed corporate earnings and global economic uncertainties.

4.?The broad-based sell-off highlights widespread concerns, particularly in cyclical and heavy?industries.

Among the sectors, NIFTY Media saw the steepest fall, dropping by 7.24% as it faced pressures from lower advertising spending and reduced viewership. NIFTY Metal also saw a significant drop, down by 7.23%, as demand for metals continues to be constrained by slower industrial growth in major economies. NIFTY Realty, affected by higher borrowing costs and moderated consumer sentiment, declined by 6.97%.

Financial sectors had comparatively smaller declines, with NIFTY Financial Services dropping by 0.86%. This relative resilience was due to their role as defensive plays in volatile times. Meanwhile, NIFTY IT was nearly flat, declining only 0.16%, as global tech demand remained relatively stable despite some slowdown.

Top Gainers of the Week

1. Mohite Industries saw a stellar 82.52% gain, closing at ?122.29. High trading volume and sectoral growth drove this surge.
2. EPUJA SPIRITECH rose 40.32% to ?5.29, likely boosted by renewed interest in its tech offerings.
3. Shree Rajivlochan Oil Extraction gained 39.70% at ?58.27, benefiting from strong edible oil demand.
4. Omega Ag-Seeds grew 39.53% to ?14.86 amid positive momentum in the sustainable agriculture sector.
5. Sunrise Efficient Marketing climbed 35.97% to ?104.70, fueled by strong marketing and expansion efforts.

Top Losers of the Week: Declines Across Key Sectors

1. ARC Finance RE led the losses with a 50% drop, closing at ?0.23 from a high of ?0.46. This significant decline reflects weak trading interest and possible liquidity concerns in the finance sector.
2. Bliss GVS Pharma fell 22.75% to ?108.65, as investor sentiment turned cautious in the pharma sector, possibly due to competitive pressures and regulatory uncertainties impacting the stock.
3. Hind Aluminium Industries saw a 22.69% decrease, ending the week at ?72.86. Lower demand and rising input costs in the metals sector may have driven this decline.
4. Bansal Roofing Products dropped 22.47% to ?102.30. Softening demand in the construction sector, coupled with cost pressures, likely affected the company’s performance.
5. BGR Energy Systems closed down 22.31% at ?34.96, as the energy sector faced challenges from fluctuating project timelines and capital constraints.

Global Market Impact:

Global markets also experienced mixed performances, with investor sentiment largely cautious. In the United States, the S&P 500 slipped by 0.90%, the Dow Jones fell by 2.10%, and the NASDAQ saw a modest 0.40% decline, as concerns over potential interest rate hikes and inflation linger. European markets also echoed this sentiment, with the UK’s FTSE 100 down by 1.20%, driven by fears of recession and slower consumer spending.

In Asia, the Nikkei 225 in Japan led the decline with a 2.74% drop, amid weaker economic data and concerns over U.S.-China relations impacting trade. Other indices, such as the Hang Seng in Hong Kong and the Kospi in South Korea, saw smaller dips of 1.03% and 0.41%, respectively. The Shanghai Composite, however, rose by 1.17%, driven by expectations of stimulus from the Chinese government to spur economic growth.

The downturn in Indian equities mirrors these global concerns, as rising inflation, interest rates, and supply chain disruptions contribute to investor caution.

Other Markets:

Brent crude prices rose to settle at $ 75.02

The rupee closed at Rs 84.08 against the US dollar.

Gold slightly rose to settle at Rs 77,824 per 10 grams.

The 10 Year Benchmark G-Sec yield was at 6.85%.

IPO Corner

The myth of IPOs above the size of 10000 crore and plus getting listed on a discount continues as India’s Biggest IPO till date – Hyundai Motors make a subdued listing on the exchanges and listed at a discount of 1.5% to the issue price. However, the market is all set and excited for the Waaree IPO which is going to make a debut coming monday. But first let’s have a look at the only mainboard listing this week!

?Report Card of recently listed IPO

On the listing day the stock made a high of 1970 and a low of 1807 and finally closed at 1819.

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Current IPO (Closed for subscription)

Records created in Waaree Energies IPO

A record-breaking number of 97.3 Lakh Applications received in Waaree Energies IPO

Bajaj Housing Finance = 90.7 Lakh Applications

Waaree Energies has overtaken Bajaj Housing, Tata Technologies & LIC IPO with the highest number of applications in history!

Such numbers tell us that the Indian markets are becoming more and more mature with each day passing.

Waaree Energies IPO Allotment was out in Link Intime’s website yesterday

Final allotment matrix:

RETAIL: 1 out of 6.37

SMALL HNI 1 out of 46.75

BIG HNI: 1 out of 12.92

Valuations of Waaree Energies if it lists at a 100% Premium

Waaree Energies raised 1277 crores from 92 anchor investors at a price of 1503 per share. Very big names such as Blackrock, Nomura, Goldman Sachs, Morgan Stanley, Mirae Asset, Quant MF, Valuequest, Motilal and a lot others seen in the anchor book.

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Current IPO (Open for subscription)

Afcons Infrastructure: Brief Note

IPO Size: 5430 crores (1250 crores Fresh Issue || 4180 crores OFS)

Afcons Infrastructure Ltd is the flagship infrastructure, engineering and construction company of the Shapoorji Pallonji group, a diversified Indian conglomerate, having a legacy of over six decades. They have a strong track record of executing numerous complexes, challenging and unique engineering, procurement and construction (EPC) projects both within India and internationally. The company has successfully completed 79 projects across 17 countries with a total historic executed contract value of ?56,300 Crore.

Objects of the Issue:

• Capital expenditure towards purchase of construction equipment’s - INR 80 Cr
• Funding long-term working capital requirements of the company - INR 320 Cr
• Repayment of borrowings availed by the company - INR 600 Cr

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Financial Overview & Key Operating Metrics

Order Book Details

As of June 30, 2024, the company has 65 active projects across 12 countries, aggregating to an order book of 2,31,747 Crore.

Current order book of the company stands at 31,747 crores out of which 70% orders comes from government and the rest is from private and multinational companies. Geographical wise the order book is split at 75% from India and 25% from outside India.

Some famous projects done by Afcons Infra : Ghana Rail Project, Chenab Bridge, Atal Tunnel, MG Setu Bridge, Kolkata metros

Peer Comparison

Key Positive

• Company has a strong track record of timely execution of large-scale, complex and high-value projects.
• Diversified order book across geographies and clients,
• Longstanding relationships with clients globally, and strong financial performance

Key Negative

• High dependence on government contracts
• Company operates in a cyclical industry
• High competition amongst peers

Anchor Book allocation: 3,50,21,597 shares allocated to 80 funds at a price of 463 per share summarizing an allocation of 1621.5 crores. Big names such as Goldman Sachs, Nomura, Aditya Birla, Mirae Asset Tax Saver a lot others seen in the anchor book!

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Acme Solar Holdings ltd IPO Expected Soon

Incorporated in June 2015, ACME Solar Holdings Limited is a renewable energy power producer in India. The company is one of the largest producers of power using Wind and Solar energies in India.

Expected IPO Size: 3000 crores (2000 crores Fresh Issue || 1000 crores OFS)

FY-24 Numbers glance:

Revenue: 1319 crores || PAT: 699 crores || EPS: 12.5 || NAV: 50

Registrar: Kfintech

FII DII data: