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Stock Market Update: Gift Nifty Rises, Adani Ports Sets Cargo Record, and CDSL Announces Bonus Shares
Synopsis: In today's stock market update, we delve into the mixed performance of Indian equity benchmarks which ended with marginal losses amid banking sector pressures. Highlighted are notable gains by TCS, Infosys, and Wipro, and the record-breaking achievements of Adani Ports. We also cover CDSL's announcement of a 1:1 bonus share issue, and the substantial rise in shares of Godrej Properties and Solar Industries. Additionally, we discuss the recent surge in Som Distilleries' stock following a favorable court ruling. Stay informed on these key market movements and their implications for investors.
MARKETSINDIA
By Sameer Malhotra
7/3/20243 min read
Market Recap
On Tuesday, Indian equity benchmarks experienced a subdued trading session, closing the day with marginal losses due to selling pressure in banking stocks. The BSE Sensex closed 35 points lower, while the NSE Nifty ended down by 18 points, or 0.1%.
Among the top gainers were TCS, Infosys, and Wipro, while Tata Motors, Bharti Airtel, and Kotak Mahindra were the notable losers. For more on the impact of Bank Nifty companies and a comprehensive index overview, refer to Equitymaster’s Bank Nifty Companies list.
The BSE MidCap Index declined by 0.6%, and the BSE SmallCap index finished flat. Sectoral indices showed mixed performance, with realty, energy, and IT sectors witnessing buying interest, whereas power and FMCG sectors saw selling pressure.
Gold prices on the MCX were flat at Rs 71,615 during Indian market closing hours on Tuesday.
Gift Nifty Outlook
As of 7:50 AM today, the Gift Nifty was up 82 points, trading at 24,328 levels, indicating a positive opening for Indian share markets.
Top Buzzing Stocks Today
Solar Industries: Shares of Solar Industries are at a record high, with a market capitalization reaching Rs 1 trillion on July 2. This surge follows the certification of a new explosive formulation by its subsidiary, approved by the Indian Navy.
Godrej Properties: Godrej Properties saw its shares hit a new all-time high of Rs 3,337.8 per share on July 2. The rally came after the successful launch of its project Godrej Woodscapes in Bengaluru, selling over 2,000 homes worth more than Rs 3,150 crore. Year-to-date, the stock has surged over 65%, outperforming the Nifty 50 index’s 10% rise.
CDSL Announces Bonus Shares
Central Depository Services (CDSL) has announced a bonus issue of shares in a 1:1 ratio, meaning shareholders will receive one additional share for each share they hold. The record date for this bonus issue will be announced later. Additionally, the company’s board approved an increase in authorized share capital from Rs 1.5 billion to Rs 3 billion to accommodate the bonus shares.
In its Q4FY24 results, CDSL declared a final dividend of Rs 19 and a special dividend of Rs 3 per share to mark its 25-year silver jubilee.
Adani Ports Sees Record Cargo Volume
Adani Ports and Special Economic Zone Limited (APSEZ) reported a 12% year-on-year increase in cargo volumes for June 2024, totaling 37 million metric tonnes (MMT). This growth was driven by a 33% rise in container volumes and an 8% increase in liquids and gas cargo. Kattupalli Port handled its highest-ever monthly cargo volume of 1.36 MMT.
For the quarter ending June 30, 2024, Adani Ports recorded 109 MMT in cargo volume, a 7.5% year-on-year increase, with an 18% rise in container cargo and an 11% increase in liquids and gas cargo. The logistics segment also saw a 19% year-on-year increase in rail volumes and a 28% rise in GPWIS volumes.
In April 2024, APSEZ handled its highest-ever monthly cargo volume of 420 MMT, a 24% year-on-year increase, including contributions from international ports. March 2024 also saw record monthly volumes exceeding 38 MMT. APSEZ’s market capitalization recently surpassed Beijing-Shanghai High-Speed Railway Co., suggesting a strong growth trajectory.
Why Som Distilleries Share Price is Rising
Shares of Som Distilleries and Breweries Limited surged over 3% on July 2 after the Madhya Pradesh High Court stayed the suspension of its license, allowing the company to resume normal operations. The suspension was initially imposed due to allegations of child labor at the distillery. The National Commission for Protection of Child Rights (NCPCR) had found 58 children working illegally at the factory, leading to an investigation by local authorities.
In Conclusion, The Indian stock market shows mixed signals with key indices ending lower on Tuesday, despite notable performances from specific stocks like Solar Industries and Godrej Properties. Investors will be keenly watching developments around CDSL’s bonus shares and Adani Ports’ record cargo volumes for further investment cues. Stay tuned for more updates and market insights.