Market Bizzz

Several companies, including Reliance Chemotex, have set September 4 as the record date for determining eligible shareholders for dividend payments. To qualify for these dividends, investors must purchase shares by today. The list includes multiple companies and their respective dividend declarations, which start trading on an ex-dividend basis from Wednesday.

Jignanshu Gor of Bernstein SocGen is optimistic about the growth of discretionary spending in India, particularly in non-metro areas. He believes sectors like retail and restaurants will see recovery in the next 12 to 18 months. He highlights positive prospects for stocks like DMart, Trent, Devyani, and Jubilant in this landscape.

Raymond Ltd., an Indian conglomerate, plans to list its apparel and real estate units by 2025 to boost shareholder value. The move aims to dismantle its conglomerate structure that led to subdued valuations. Raymond Lifestyle, known for men’s suits, will expand in the Indian and wedding wear market, with targets for significant growth and new stores.

Dipan Mehta, Director at Elixir Equities, comments on the sugar industry’s evolving prospects. He further mentions the government’s commitment to increased ethanol blending and improved pricing, contributing to the medium-term stability of earnings. Despite recent underperformance, the sector presents attractive valuations, appealing to investors looking for quality, low PE stocks.

Nifty reaches a new high of 25,236, driven by sectors like Pharma, Tech, and Finance. Bank Nifty underperforms, showcasing a specific rally. Market breadth indicates stock-specific action, with resistance levels at 25,536 and 25,610. Experts suggest a cautious approach with a Bull call spread strategy.

It occurs when the opening price is the lowest for a given period, and the closing price is the highest.

State-owned NBCC (India) Ltd has approved the issuance of bonus shares in a 1:2 ratio, utilising Rs 90 crore from free reserves. The company will distribute 90 crore bonus shares, with October 7, 2024, set as the record date. This move aims to boost shareholder value and reflects the company’s strong financial position.

In August, Foreign Portfolio Investors (FPIs) were net buyers of Indian equities at Rs 7,320 crore, increasing their 2024 total to Rs 42,886 crore. FPIs’ recent activity shows a fluctuating trend, with notable purchases in July and February-March, and sales in April-May and January.

The month ended as well; Nifty posted a monthly gain of 284.75 points (+1.14%) The markets are in a strong uptrend; however, once again it has created a situation wherein they have sharply deviated from their mean.

The personal consumption expenditures report came on Friday after Fed Chair Jerome Powell last week expressed support for an imminent policy adjustment. Economic data next week includes the Labor Department’s August jobs report, due on Friday.