Mahindra plans to invest over 3 billion dollar in its auto business with focus on EV : Daily Market Update - 17 May 2024 | Globe Capital Market LTD.
Mahindra plans to invest over 3 billion dollar in its auto business with focus on EV : Daily Market Update – 17 May 2024

M&M plans to invest over the next three years a total of Rs 27,000 crore in its auto business, including Rs 12,000 crore in its electric mobility arm—Mahindra Electric Automobile Ltd. British International Investment Plc and Singapore’s state-owned Temasek Holdings Pvt. Ltd. have so far invested Rs 1,200 crore and Rs 300 crore, respectively, in the EV arm.

Overview and Outlook

Global Stock Market Today

  • US equity markets settled on a flat to negative note.
  • European equity markets too settled on a flat to negative note.
  • Asian equity markets are trading mix.
  • GIFT Nifty is little changed, Nifty futures likely to open around 22470 levels (as on 8:30AM).


News highlights from across the globe

  • Markets in Asia-Pacific region are trading mix on Friday as traders pulled back bets of rate cuts by the Federal Reserve after the initial reaction to softer US inflation data subsided.
  • Cleaveland Fed President Loretta Mester, New York Fed President John Williams and Richmond Fed President Thomas Barkin said Thursday, speaking at separate events, inflation is expected to take longer to reach target 2%.
  • Brent crude was trading 0.13% higher at $83.38 a barrel.


Important news updates from the domestic front

  • Biocon Q4 FY24 (Consolidated, YoY) Revenue up 3.8% at Rs 3,917 crore vs Rs 3,774 crore. Ebitda down 8.2% at Rs 916 crore vs Rs 997 crore. Margin at 23.4% vs 26.4%. Net profit at Rs 223 crore vs Rs 415 crore, down 46.2%.
  • Vodafone Idea Q4 FY24 (Consolidated, QoQ) Revenue fell 0.6% to Rs 10,607 crore vs Rs 10,673 crore . Ebitda down 0.3% to Rs 4,336 crore versus Rs 4,350 crore . Margin expands 10 bps to 40.9% vs 40.8%. Net loss rose to Rs 7,675 crore vs Rs 6,989 crore.
  • Crompton Greaves Consumer Electricals Q4 FY24 (Consolidated, YoY) Revenue up 9.5% at Rs 1,961 crore vs Rs 1,791 crore. Margin at 10.4% vs 11.8%. Ebitda down 3.7% at Rs 204 crore vs Rs 211 crore. Net profit up 1.4% at Rs 133 crore vs Rs 132 crore .
  • Infosys signs a pact with Telstra for AI-led engineering transformation.
  • GE Power India received a purchase order worth Rs 20 crore from Torrent Power for the repair and service of a steam turbine.
  • Vedanta: The board approved raising up to Rs 8,500 crore via equity and approved the investment in Vedanta Copper International for setting up a copper rod plant in Saudi Arabia.
  • Gail entered into a 14-year charter with CoolCo for an LNG carrier to commence in early 2025. The company has the option to extend the charter by 2 years beyond the 14-year period.
  • Dixon Technology signed an MoU with Acerpure for the manufacturing of consumer appliance products.


Nifty Overview & Outlook

Following a day’s breather, benchmark index Nifty once again commenced trading positively on Thursday. Despite a significant volatility, Nifty concluded the session on a positive note, marking an increase of over 200 points from the previous close. Bank Nifty faced challenges throughout the day but managed to finish above its previous high, recording a modest gain of 0.6%.

On broader front, both the Midcap and Smallcap indices closed in line with the benchmark index, each posting gains of around 0.9%.

Nifty IT, the second largest index by weightage, surpassed all other sectoral indices and benchmarks, achieving a notable gain of 1.7%. Similarly, the Realty index also saw a positive movement, rising by 1.6%. Conversely, Nifty PSU Banks experienced a decline of 0.9%, emerging as the sole loser in the session.

Continuing its upward momentum from the previous day, Nifty displayed a bullish Doji-like pattern on Thursday, indicating a stronger presence of buyers in the market. Nifty currently resides comfortably within an upward sloping channel, trending upwards. Looking ahead, we identify 22580 as the next immediate resistance level, with 22130 serving as the current support level.


Derivatives Overview & Outlook

Yesterday, long buildup was seen in Finnifty May futures with increase in open interest by 4%, whereas short covering was seen in Nifty May & Banknifty May futures as open interest shed by around 3% & 2% respectively.

On the sectoral front, long buildup was seen among Automobile, Chemical and Realty stocks, whereas short covering was seen among Cement, Finance, Technology and Power stocks.

On options front, Nifty will start the new weekly contract with maximum positions at 21000 PE followed by 22000 PE and 23000 CE closely followed by 22500 CE.


Institutional Trading Activity

Yesterday, FIIs sold stocks worth Rs 776 Cr in the cash segment, sold stocks futures worth Rs 2674 Cr and also sold index futures worth Rs 741 Cr. DIIs were net buyer in the cash segment to the tune of Rs 2128 Cr.


Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 22600-22680; Supports 22400-22300

Banknifty – Resistances 48300-48430; Supports 48000-47800

Finnifty – Resistances 21550-21600; Supports 21400-21300






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