Stock Market Nifty 50 falls below 21,500, Zee Entertainment shares down 25%

The Bombay Stock Exchange (BSE) has revised the Dynamic Price Band of shares of Zee Entertainment to 30% downward from 25% earlier. In case further relaxation is needed, it will be done at an interval of 15 minutes, a circular from the BSE said.It must be noted that the stock is currently in the F&O ban and hence there are circuit limits being imposed, something that is a practice with non-F&O stocks.   Otherwise, for F&O stocks, there is no price band. Barring ICICI Bank, the remaining 11 stocks in the Nifty Bank index are contributing negatively towards its downside. Reliance Industries shares were in focus on January 23 with analysts expecting up to 23% upside in the Mukesh Ambani-led conglomerate’s stock following the results for the October to December 2023 quarter. Reliance shares traded more than a percent lower after the firm reported a steady third quarter with retail business revenue hitting a record high, Jio reporting a 2% rise in average revenue per user (ARPU) and oil and gas business witnessing record high margin of 86%. Shares of HDFC Bank Ltd. remain the top contributors to the Nifty 50’s downside on Tuesday, declining another 2%. India’s largest private lender is contributing 56 points to the index downside on Tuesday.   The lender’s market capitalisation has also slipped below the mark of ₹11 lakh crore, compared to its peak of ₹12.97 lakh crore, which it had on December 29.With Tuesday’s drop, the stock has declined in four out of the last five trading sessions, during which it has seen a drop of 13% from closing levels of January 16. Shares of Medi Assist Healthcare Services listed on the bourses on Tuesday, January 23. The stock listed at a premium of 11% at ₹465 a share on the BSE, and went on to scale an intra-day high of ₹509.60. On the NSE, it listed at ₹460, a premium of 10% against an issue price of ₹418. Ahead of its debut, shares of Medi Assist were commanding a premium of ₹32-36 in the unlisted market. As per trends, the company’s shares were expected to list at a premium of 8%. The initial public offering (IPO) of Nova Agritech Limited (NATL) will open for subscription on Tuesday (January 23). The public offer was postponed by a day due to the market’s holiday on January 22 and would close on January 25. Ahead of the issue launch, the company’s shares are commanding a premium of ₹20 in the unlisted market.Nova Agritech has fixed its price band at ₹39-41 per share, with a lot size of 365 equity shares in one lot and its multiples thereafter.  

Ram Mandir Inauguration: TN govt slams Finance Minister for spreading falsehood over live telecast ban

The Tamil Nadu government has hit back at Union Finance Minister Nirmala Sitharaman's claims that the state has prohibited the live telecast of Ayodhya Ram Mandir programmes scheduled for January 22. P Sekar Babu, Tamil Nadu Minister for Hindu Religious & Charitable Endowments, dismissed these allegations and criticised Sitharaman for "purposefully propagating this erroneous information"."The Hindu Religious and Charitable Endowments department hasn't imposed any limitations on devotees' freedom to offer food, conduct poojas in the name of Shri Ram, or provide prasad in Tamil Nadu temples. It is unfortunate that people in office, like Union Finance Minister Mrs. Nirmala Sitharaman and others, are purposefully porpagating this erroneous information," Sekar Babu said in a post on X (formerly Twitter). Earlier on Sunday, Sitharaman claimed that the Tamil Nadu government prohibited the live telecast of the prgrammes and took to social media to denounced the Chief Minister MK Stalin-led DMK government, labelling the it as "anti-Hindu" and "hateful."Sitharaman had alleged that the "ban" extends to Hindu Religious and Charitable Endowments (HR&CE) managed temples, where she claimed activities such as puja, bhajan, prasadam, and annadanam in the name of Lord Ram are not permitted. She further accused the police of intervening in privately held temples, preventing them from organising events and issuing threats of dismantling pandals.Sitharaman alleged that individuals are facing obstacles and threats while attempting to organize bhajans, provide food to the needy, distribute sweets, and celebrate, all to witness Prime Minister Narendra Modi's participation in the Ram Temple consecration ceremony at Ayodhya.The Finance Minister went on to claim that cable TV operators have been warned about possible power cuts during the live telecast, branding it as an "anti-Hindu move" orchestrated by the DMK, a key partner in the INDIA alliance. Sitharaman accused the Tamil Nadu government of "unofficially" citing law and order concerns as a justification for the ban on live telecast.    

Governments cash surplus tops Rs 3.4 lakh crore

Apart from the deceleration in government spending, higher direct tax collections and a likely sharp rise in issuances of Treasury Bills by the Centre in FY24 were factors pushing up the government's cash balances, analysts said. The flow of government cash balances to and from the banking system is a key factor that influences liquidity conditions. Mumbai: A constant feature of the Indian banking system over the past couple of months has been the prevalence of large deficit liquidity conditions, and one of the factors behind banks' scramble for funds is a massive build-up of government cash balances as the Centre slows down spending.Apart from the deceleration in government spending, higher direct tax collections and a likely sharp rise in issuances of Treasury Bills by the Centre in FY24 were factors pushing up the government's cash balances, analysts said. The flow of government cash balances to and from the banking system is a key factor that influences liquidity conditions."Government cash surplus as of Janury 12, 2024 is tracking at ₹3.4 lakh crore versus ₹1.6 lakh crore as of January 13, 2023. We see space for expenditure savings for the Centre on transfers to states which consists of finance commission grants, centrally sponsored schemes and central sector schemes, loans for capital expenditure etc," said Gaura Sengupta, economist at IDFC First Bank. "Based on data from Finance Ministry, 15th Finance Commission grants to states are tracking 29%YoY lower in FYTD24 (Apr-Dec)," she said.As on January 16, the headline liquidity deficit in the banking system was at ₹1.94 lakh crore, Reserve Bank of India data showed. Liquidity in the banking system typically tightens around the middle of a month due to tax outflows before easing towards the end of the month as the government spends on salaries and pensions of employees. With banks facing a scarcity of funds at present, the weighted average call rate (WACR) closed at 6.76% on Wednesday, much higher than the repo rate of 6.50%. The elevated money market rates have pushed up costs of funds for banks, and in turn for corporates, looking to raise money through short-term debt."It's speculative to say that the build-up in cash balance is for any particular reason, but one thing is that the government started the year in WMA (Ways and Means Advances), so there might have been a target to build up the cash balance for the end of the year as well," said A Prasanna, head of research at ICICI Securities Primary Dealership. WMA is a funding facility that the RBI extends to the government in order to tide over short-term cash-flow mismatches.Till January 11, the government's net direct tax collections rose 19% annually to ₹14.70 lakh crore, official data released last week showed. Tax collections till then were at 81% of the full-year target.  

HDFC Bank seeks Singapore bank license to grow overseas

HDFC Bank, India's largest private sector lender, is seeking approval for a banking license in Singapore. The bank aims to tap into the Indian diaspora in Singapore for savings and term deposits, as well as cross-sell products like mortgages. HDFC Bank already has a presence in London, Hong Kong, and Bahrain. With a customer base of 93 million, the bank is expanding its reach overseas after a merger with Housing Development Finance Corp. last year.HDFC Bank Ltd, India’s biggest private sector lender, is seeking to open its first branch in Singapore, signaling its overseas ambitions after sewing up a landmark merger with mortgage financier Housing Development Finance Corp. last year.  The bank has applied to the Monetary Authority of Singapore for a banking license and is awaiting approval, according to sources familiar with the matter. It is not clear what kind of banking license HDFC Bank is seeking in Singapore, said one of the people, who declined to be identified as the information is confidential. The banking giant is seeking a bigger presence abroad to tap the Indian diaspora for savings and term deposits, as well as to cross-sell more products, including mortgages, the people said. At home, HDFC has been focusing on deepening its reach in the world’s most populous country through loans to retail customers. HDFC Bank did not respond to an email seeking comment. “As a matter of policy, MAS does not comment on our dealings with financial institutions,” according to a spokesperson from the Singapore regulator. Singapore, with a population of almost 6 million people, houses a large India diaspora. About 650,000 non-resident and persons of Indian origin live in the city-state, according to Indian government data.HDFC Bank is currently not licensed or regulated by the MAS, according to its website. It only provides home loans-related advisory services for the purchase of properties in India, the website states. The categories of banking licenses in Singapore encompass full banks, qualifying full banks and wholesale banks, which impose varying levels of restrictions on the lenders’ activities. State Bank of India and ICICI Bank Ltd. hold qualifying full banking licenses, alongside eight other banks like Bank of China Ltd. and BNP Paribas SA. Such licenses are open only to foreign banks and allow them to have additional branches and/or off-premise ATMs as well as to share ATMs among themselves, according to the Association of Banks in Singapore’s website.The MAS regulates and supervises more than 150 deposit-taking institutions in Singapore, ranging from full banks to finance companies, according to its website.  

Teslas winter woes: A storm of challenges and disruption

Tesla is grappling with operational, strategic, and environmental challenges that impact its stock value and investor focus. The recent challenges placing Tesla in the headlines, including operational disruptions, strategic market adjustments, and technological limitations in cold weather, have impacted its stock price, contributing to a 13% decline in the past thirty days. Tesla's analysts are concerned about business growth, which has shown signs of deterioration in recent quarters. This, combined with the company's high valuation, makes some analysts cautious about Tesla's stock in the medium term.Despite these concerns, Tesla's diverse business operations beyond just manufacturing cars offer some optimism. Its advancements in other areas, like energy solutions and technology innovations, provide potential growth avenues. However, the company's core focus on car manufacturing is subject to market cyclicality, which currently does not favor bullish sentiments.Investors eagerly anticipate the release of the Q4 earnings report and guidance for the fiscal year 2024, as it will impact the company's stock valuation. Manufacturing efficiency and the number of vehicles manufactured are pivotal in influencing investors' interest. While some investors maintain a positive outlook based on potential long-term growth, Tesla’s overall sentiment is a mix of optimism and caution. Some investors and Tesla stock analysts have adopted a bearish stance due to the company's prevailing challenges and market dynamics. Tesla's Berlin gigafactory is pivotal to its European market growth. The Berlin gigafactory has recently halted operations due to supply chain issues linked to the Red Sea blockade. This crucial maritime channel is integral to global trade, and its disruption has had a domino effect, underlining the vulnerability of global manufacturing networks to geopolitical strife. The Berlin factory, known for its state-of-the-art production capabilities, now faces uncertainties that concern investors, particularly regarding potential delays in vehicle production and distribution. This halt impacts Tesla's operational efficiency and places added pressure on its stock value as the market reacts to these unforeseen challenges and the possible implications for Tesla's European market performance and overall global supply chain efficiency.In response to intensifying competition in China and Europe, Tesla has strategically reduced prices for select models in these key markets. This price adjustment is calculated to strengthen Tesla’s standing, especially in China, where the demand for affordable electric vehicles is rapidly expanding. While this strategy could potentially increase Tesla's market share in the short term, it raises crucial questions about its long-term effects on its profitability and financial health. These concerns are particularly pertinent for investors as they weigh the implications of Tesla's pricing strategy on its future revenue streams and overall market sustainability.   

Indias most valuable PSU remains a wealth destroyer

Life Insurance Corporation of India (LIC) overtook State Bank of India on Wednesday to become India's most valuable state-run company in terms of market capitalisation. At the start of trading on Wednesday, LIC had a market capitalisation of ₹5.66 lakh crore, compared to SBI's ₹5.64 lakh crore, though SBI recovered from opening lows to reclaim the top spot for a brief period again. However, despite becoming India's most valued company, LIC has caused loss of investor wealth. The stock listed at a discount in May 2022, a level it only crossed on Tuesday, nearly two years after listing. Although the stock has crossed the retail IPO price of ₹904, it remains below the original IPO price of ₹949. Over the last 12 months, the stock has gained only 27%, compared to other PSE index constituents like REC, PFC, BHEL and HAL, which have gained anywhere between 140% to 250% over the same time frame. In fact, LIC shares are the second-worst performers on the Nifty PSE index over a 12-month period, only ahead of Container Corporation of India, which is up 25%. LIC remains India's biggest IPO where the government sold a 3.5% stake to mobilise over ₹21,000 crore. That is the only stake sold in the open market yet as the government continues to hold the remaining 96.5%. DIPAM Secretary Tuhin Kanta Pandey in his prior interactions with CNBC-TV18 had mentioned that an LIC Follow-On Public Offer (FPO) is not on the cards yet. Additionally, unlike other PSUs, LIC has been granted an exemption from complying with minimum public shareholding norms. It can achieve the 25% minimum public shareholding by May 2032, instead of the usual three years. LIC shares have recovered from their 52-week low of ₹530 and despite this rally are trading at 0.85 times price-to-embedded value. Shares of LIC are trading 0.6% lower at ₹887.2. The stock is up 11% over the last month.  

Sensex tumbles 1,628.01 points to close at 71,500.76; Nifty plunges 460.35 points to 21,571.95

The company has received additional orders worth ₹339.31 crore since the last disclosure on 26th Dec 2023 and these orders pertain to Combat Management System, Composite Communication System, Transmit / Receive Modules, Mobile Autonomous Stabilization System and other spares / services, said BEL in a filing to the exchanges. Nifty Banks Slides More Than 4%, Biggest Fall Since February 2022. HDFC Bank Records Worst Day In 3 Years, Falls Over 8% After Earning. HDFC Bank Contributes Over 50% Fall To Both Nifty & Nifty Bank. HDFC Bank Reacts Sharply To Earnings, Erases `1 Lk Cr Market Cap. BSE-listed Cos Erase Market Cap Of `4 Lakh Cr Today. All Sectoral Indices Close In The Red While Volatility Index Surges 11%. Sensex Slides 1,628 Points To 71,501 & Nifty 460 Points To 21,572. Nifty Bank Falls 2,061 Points To 46,064 & Midcap Index 516 Points To 47,152Except Bandhan, All Nifty Bank Constituents End In The Red. IEX Slides 11% On Power Minister’s Mkt Coupling Comment. Asian Paints Reports Earnings In-Line, Stock Is Down 2%. Pricol Sees Block Deals Of Over 15%, Minda Corp & PE Likely Sellers. IT Stocks See Buying Amid Market Sell-off, Most IT Stocks In The Green. ICICI Lombard Surges After An Improved Showing In Q3, Up 6%. L&T Tech Surges Despite Reporting Below-than-expected Results, Up 4%. Polycab Extends Gains, Closes With A Gain Of 2% Ahead Of Results. Market Breadth Fvaours Declines, Advance-Decline Ratio At 1:3.In what was touted to be a takeover attempt, Minda Corp mentioned that this was only a financial investment and will not fetch them any special rights in Pricol other than those of a normal shareholder. The management of Pricol had told CNBC-TV18 on February 17 that the promoters have no intention to sell any stake in the company as it is on the path of growth and is doing well. "I definitely do not want to sell. I'm 1,000 percent committed to this business," Mohan said. "Our market share has gone up. We have a very strong order book, zero long term debt, healthy cash profits, capacity, and we know we are on a growth curve. So why would I sell?" he further added. On January 4 this year, India's competition regulator had said that prima facie, the proposed merger by Minda may have adverse on competition and that it intends to conduct further inquiry into the process. Shares of Pricol are off the day's low, currently trading 2% lower at ₹360.70, while those of Minda Corp have surged to the day's high, currently trading 3% higher at ₹395.75.  

Tech layoffs: Tencents Riot Games to lay off 11% employees

Riot Games, based in Los Angeles, is known for popular games like 'League of Legends'. The company stated that teams not directly involved in game development will be most affected by the layoffs.Riot Games, a subsidiary of Tencent Holdings, announced on Monday that it plans to lay off 530 employees, which is about 11% of its global staff. The news was shared in a blog post that included a letter from CEO Dylan Jadeja to the employees.Riot Games, based in Los Angeles, is known for popular games like "League of Legends". The company stated that teams not directly involved in game development will be most affected by the layoffs.  The digital gaming industry is facing challenges as audiences are hesitating to buy expensive titles or are sticking to fewer games due to high inflation. This trend was also seen last year when Electronic Arts Inc cut 6% of its staff and reduced office space. In his letter, Jadeja explained, "We're a company without a sharp enough focus, and we have too many things underway. Some of the significant investments we've made aren't paying off the way we expected them to. Our costs have grown to the point where they're unsustainable."The layoffs will allow Riot to concentrate on its live games portfolio, which includes "League of Legends", "Valorant", "Teamfight Tactics", and "Wild Rift". This was mentioned in a separate blog post by Jadeja and co-founder Marc Merrill.Riot will halt new game development under "Riot Forge" and will reduce some staff and features in "Legends of Runeterra".Tencent, which bought a majority stake in Riot Games in 2011, also has a stake in U.S. video game developer Epic Games.

Tata Motors zooms to 52-week high on plans to hike vehicle prices

Shares of Tata Motors Limited traded over a percent higher at Rs 827 to hit a fresh 52-week high on January 23 after the company announced that it will raise the prices by 0.7 percent across its passenger vehicles portfolio, including electric vehicles, with effect from February 1. The automobile major said the main reason behind the hike is escalating input costs. Despite the announcement, specific revised prices for each car have not been disclosed by the company. At 9:26am, the stock was trading at Rs 825, up 0.7 percent from the previous close on the NSE. In the last year, the counter has had a stellar rally, gaining over 100 percent on the bourses. It was also the best performer on the Nifty in 2023. The hike isn't just restricted to internal combustion engine (ICE) vehicles, but also EVs where Tata Motors is the market leader. This comes after the company launched the new Tata Punch EV, its recent addition to the electric SUV segment. Before its launch, Tata had Nexon EV, Tigor EV, and Tiago EV. The development gains significance as Tata Motors isn't the first company to hike prices in 2024. Last week, Maruti Suzuki announced a 0.45 percent price increase for its models. The company’s diverse range of vehicles, from the entry-level hatchback Alto to the sports utility vehicle Jimny and the multi-utility vehicle Invicto.   

Cipla shares rally 7% to hit 52-week high on strong Q3 earnings

Shares of Cipla rallied 7 percent to hit a 52-week high of Rs 1,409 in the opening trade on January 23, a day after the company reported a strong performance in Q3 on all key parameters of profit, revenue and profitability. The company's net profit for the quarter grew 32.7 percent on-year to Rs 1,049 crore despite an exceptional loss of Rs 194.8 crore. The bottomline growth was also aided by a 14.2 percent on-year increase in revenue to Rs 6,544 crore in the October-December period. Growth was largely broad-based across markets as the company clocked in its highest ever North American sales at  $230 million, up 18 percent on year. The India business grew nearly 12 percent to Rs 2,859  crore, whereas sales from the South Africa recorded a near 10 percent rise to Rs 603 crore. Growth in the India business was driven by a strong performance across branded prescription, trade generics and consumer health, while that in North America was supported by continuing momentum in key assets and robust demand in base business along with some year-end buying.The South Africa business also benefitted from the increase in revenue in local currency terms. This performance was supported by positive traction in prescription, OTC (over-the-counter) and tender.

OnePlus 12 launch today: Check expected price, features, other specifications

The company has also confirmed the launch of the Snapdragon 8 Gen 2-powered OnePlus 12R. The OnePlus 12R also gets some upgrades compared to the OnePlus 11R. OnePlus is set to launch its latest flagship smartphones, the OnePlus 12 and OnePlus 12R, today. The event, dubbed “Smooth Beyond Belief,” will kickstart at 7:30 PM in India. Users who have bought passes for the event can witness it from the venue, Pragati Maidan in New Delhi, while the rest can virtually experience it via YouTube.  The hero product of OnePlus’s launch event will be the Snapdragon 8 Gen 3-powered OnePlus 12. The OnePlus 12 is expected to be a massive upgrade over its predecessor and will offer features like a 4th Gen Hasselblad camera system, a 5,500 mAh battery, and wireless charging. The device is also confirmed to include one of the brightest 2K resolution AMOLED screens with a 120Hz refresh rate. It is also confirmed that the OnePlus 12 will receive four years of major software updates. The company has also confirmed the launch of the Snapdragon 8 Gen 2-powered OnePlus 12R. The OnePlus 12R also gets some upgrades, featuring a metal frame with an overall design and build quality similar to the OnePlus 12. In addition to the smartphones, OnePlus will also unveil the OnePlus Buds 3. The Buds 3 is expected to offer better audio quality and noise cancellation capabilities when compared to the OnePlus Buds 2 Pro.  According to the information provided by tipster Abhishek Yadav, the OnePlus 12 is anticipated to debut with a base price of Rs 64,999. Meanwhile, the variant with 16GB RAM is projected to have a price tag of Rs 69,999. The OnePlus 12R is said to be available for purchase in February. Besides this, another tipster, Ishan Aggrawal, has revealed that the upcoming smartphones will come with bank deals, trade-in bonuses, and no-cost EMI options. He also mentioned that the initial 1,000 orders will be rewarded with gifts, a discount of up to 50 per cent on the protection plan, and a Rs 3,000 reduction on the OnePlus Pad.  

Everyman Media Group Earnings, Revenue Rose Despite Strikes

Premium cinema group Everyman Media (EMAN) said the resounding box office success of Barbie and Oppenheimer led to strong summer trading leaving it confident of meeting full year expectations. Unfortunately, both revenue and adjusted EBITDA (earnings before interest, tax, depreciation, and amortisation) fell in the first half to 29 June, admittedly against strong prior year comparatives. Investors seemed unmoved by the upbeat outlook, with the shares dropping 1% to 55p capping a disappointing 12 months for shareholders with the shares down 44%. Chief executive Alex Scrimgeour commented: ‘We are pleased to report that trading continues to be in line with the board's expectations, having achieved robust interim results despite this year's major film titles falling in the second half of 2023.  We remain confident in our prospects as we continue to be supported by a slate of high-quality second-half releases, a carefully expanded estate and new banking facilities which ensure we are well configured to take advantage of future opportunities.’Revenue fell 6% to £38.3 million in the first half, but strong trading in July and August transformed the picture with year-to-date revenue 13% higher at £60 million while EBITDA was 12% ahead at £11 million.Everyman expects to meet full-year consensus forecasts which call for revenue of £94.4 million, representing 20% growth, and EBITDA of £17.2 million compared with £7.9 million in 2022. Having opened three new venues in the first half, taking the estate to 41 cinemas and 141 screens, the company has a healthy pipeline of new opportunities.A new two-screen venue will open in Marlow in the current quarter, while a further five venues are planned for 2024 including a three-screen venue in Stratford in the third quarter.The firm agreed a new three-year loan facility of £35 million replacing a £25 million revolving credit facility and £15 million Covid interruption loan. Leisure analyst Mark Photiades at Canaccord Genuity commented: ‘The film slate for Q4 and beyond is strong with a number of major releases and independent films due including Wonka, Ferrari, Napoleon, Killers of the Flower Moon and the latest instalment of The Hunger Games.’Photiades left his forecasts unchanged but reiterated his buy rating, saying, ‘Everyman remains a premium brand, synonymous with offering a first-class cinema and hospitality experience & a best-in-class food and beverage offer prepared in-house.’