Edition 13: 24-28 July 2023

FINANCE x INDIA

NIFTY 50: 19,646 (0.5%) SENSEX: 66,160 (0.8%)

BANK NIFTY: 45,468 (1.3%) USD/INR: 82.22

NIFTY SMALLCAP 100: 11,600 (0.6%) NIFTY MIDCAP 100: 37,357 (1.5%)

Swipe to see key stock market news

ITC CHECKS OUT OF
HOTEL BUSINESS

ITC board on Monday approved demerger of its hotel

business, while retaining 40% stake; share price fell 4%

The hotel business, with 120 properties & 11,500

rooms, is India's 2nd largest chain among listed peers,
generating ~ Rs 2,700 cr revenue

The hotel business contributed 4% to revenue and 2%

to EBIT in FY23, and its revenue grew
12% CAGR over FY20-23

ITC Chairman Sanjiv Puri said the

demerger will help improve the
conglomerate's financial ratios

Source: ET

Visit ICICIdirect.com for more

 Advantage to DVR shareholders
Tata Motors declared cancellation of its Differential
Voting Rights (DVR) shares to simplify capital
structure, leading to 17% rally in DVR share

For every 10 DVRs held, shareholders will receive 7

ordinary shares, resulting in 4.2% reduction in
outstanding equity shares; the scheme, however, is
subject to various approvals

DVR shares trade like ordinary shares but with lower

voting rights; Tata Motors’ DVR share category has
1/10th voting rights but 5% higher dividend

Tata Motors first issued DVR shares in India

in 2008, followed by Gujarat NRE Coke,
Future Enterprises & Jain Irrigation

Source: ET, Moneycontrol, Livemint

Visit ICICIdirect.com for more

 US FED HIKES RATES TO
22-YEAR HIGHS!

US Fed on Wednesday hiked the benchmark lending

rate by 25 bps to 5.25%-5.5%, with a hawkish stance

This is in line with the committee’s target to pare

inflation to 2% in the US

Despite the hike, US Fed chair Jay Powell said there

was “still a long way to go” before core inflation
would get closer to its target of 2%, and thus, policy
needed to remain restrictive

Since 2014, this is the first time that interest rates in

the US are higher than the interest rates in India

Source: ET, Livemint

Visit ICICIdirect.com for more

 Joint Venture targets India’s
Rs 44 trillion MF industry
Financial Services

Both partners announced a 50:50 JV on Wednesday

with an initial investment of $150 million each

Five years ago, BlackRock exited India’s MF industry

by selling its 40% stake in DSP MF; its reentry can
push passive funds' market share in India (currently at
16.5% vs 45% in the US)

BlackRock handles ~$11 trillion or 7% of all global

financial assets

The journey from applying to the SEBI

for a MF license, to accepting inflows
from the public typically takes 2.5-3 yrs

Source: Value Research, ET, PWL Capital

Visit ICICIdirect.com for more

 EARNINGS ROUNDUP
Figures of Revenue and PAT in Rs crore

COMPANY REVENUE Q1'24 YOY% PAT Q1'24 YOY%

Cipla 6,465 20% 996 45%

ACC 5,278 18% 466 105%

Tata Consumer
3,741 12% 317 24%
Products

Bajaj Auto 10,663 28% 1,644 41%

United Spirits 2,668 10% 477 79%

KPIT Technologies 1,103 61% 134 57%

Ujjvan SFB 944 36% 324 60%

HDFC AMC 733 37% 477 52%

Aditya Vision 641 46% 37 40%

The Anup 143% 19 260%

126
Engineering

Visit ICICIdirect.com for more

 MARKET WEEK AHEAD

Nifty likely to consolidate between 19,400-20,000 amid

stock-specific action. Short-term consolidation would
be healthy and provide incremental buying opportunity

Sector in focus: Nifty Pharma Index hits new life high

Post breakout from a 3-year declining channel, Nifty
Pharma’s chart indicates relative outperformance
(vs Nifty)

Stocks likely to Outperform: Sun Pharma, Divis Lab/

Dr Reddy, Syngene International, Ajanta Pharma,
Alkem, Natco Pharma, Shilpa Medicare, Granules.

Source: ICICI Direct, click on link below for more

Visit ICICIdirect.com for more

TOP GAINERS
Figures (BSE500) in circle represent % weekly change

GODFREY PHILLIPS INDIA 27%

JYOTHY LABS 26.4%

REC
20%

17.7%
TATA MOTORS (DVR)

14.7%
AARTI DRUGS
 TOP LOSERS
Figures (BSE500) in circle represent % weekly change

MAHINDRA HOLIDAYS
& RESORTS INDIA -8.1%

TECH MAHINDRA -8.7%

-9.6%

ONE97 COMMUNICATIONS

-11.5%

RAIL VIKAS NIGAM

-12.5%

CAN FIN HOMES

Which news do you think was the highlight
of this week?

Liking this content? Do follow uson:

@ICICI_Direct

@ICICIdirect

@icici_direct

@ICICIdirectOfficial