Summary:
Indian markets closed higher on June 24, supported by lower crude oil prices, positive RBI commentary on inflation and rates, and gains in banking stocks. KPR Mills surged 12% on optimism surrounding the India-UK Free Trade Agreement, while JSW Infrastructure gained 7% after announcing a ₹7,503 crore QIP. Pine Labs also advanced 6-7% amid heavy block deal activity and strong trading volumes. On the downside, Triveni Turbine fell over 7% due to profit booking, while GE Vernova T&D India declined 5.6%. IRFC dropped 4.5% after the government launched an OFS for up to a 2% stake at a discounted floor price of ₹91 per share
On June 24th, the Indian equity markets closed at a higher level, buoyed by lower crude prices, optimistic comments from the RBI governor on inflation expectations and interest rates, and a rise in major bank stocks. In the morning session, the Nifty index gained 0.6% to settle at 23,963.65 and the Sensex increased 0.75% to close at 76,768.91. On a positive note, many Nifty 500 stocks witnessed significant price action on the back of some company-specific news, fund raisings, and block deals.
KPR Mills Surges 12% on India-UK Trade Deal Optimism
KPR Mills Ltd topped the list as the largest percentage gainers in the Nifty 500 Index rising by 12%, with unusually high trading activities on the NSE. Trading volume rose to 80 lakh compared to the average of 3.64 lakh shares within a 30 day period.
This was attributed to positive investor sentiment following reports confirming the India-UK Free Trade Agreement would come into effect from July 15th. The new trade agreement is set to eliminate customs duty at a rate of 8-12% for Indian textiles and garments that are exported to the United Kingdom. This move will increase the competitive advantage of Indian exporting companies. Export accounts for more than 40% of total sales of KPR Mills, and the company has operations in the UK, US, Australia and Europe.
JSW Infrastructure Rallies 7% After ₹7,503 Crore QIP Announcement
JSW Infrastructure, which is India’s second-largest private port operator, rose by 7% and became one of the session’s best performers. There was an increased institutional activity on the stock, with the volume of trades increasing to 1.63 crore shares, against its 30-day average volume of 29.3 lakh shares.
The surge came after the company announced its plan to undertake a Qualified Institutional Placement (QIP) for raising ₹7,503 crore. The QIP will consist of a fresh issuance along with a promoter’s offer for sale. The raised money will be used for capex, acquisition and other needs.
Pine Labs Gains on Heavy Block Deal Activity
Another company that gained good traction from investors was Pine Labs, which saw an increase of around 6-7%. The volume of shares traded at the NSE crossed 4.5 crore.
The stock's appreciation was primarily attributed to the block deal of nearly 41.9 lakh shares worth ₹63.5 crore. Without any significant corporate news, the surge in the stock price could possibly have been due to excitement in investors triggered by the large transaction.
Triveni Turbine Falls 7% on Profit Booking
Among the biggest losers, Triveni Turbine Limited fell by 7.2%. The firm, which is engaged in producing steam turbines for industrial and power generation purposes, saw selling activity without any significant negative news.
The market attributed the fall mainly to profit taking in the wake of the sharp rally seen recently by the stock that had almost touched its 52-week peak.
GE Vernova T&D India and IRFC Decline
GE Vernova T&D India Ltd. lost 5.6% despite being one of the best performing stocks in the last 12 months. The company that offers power transmission and grid infrastructure related equipment and solutions did not have any negative news in its favor. The fall could be mainly due to the fact that some investors were selling their positions as the stock had been rising for some time.
On the other hand, Indian Railway Finance Corp. (IRFC) lost 4.5% as the government had put out an Offer for Sale (OFS) for disinvestment of up to 2% of its equity. The offer was made at the floor price of ₹91 per share. The discount offered and fear of dilution of equity was behind the fall in IRFC's stock price.
All in all, the day's performance could be termed to be a stock specific one where trade agreement euphoria, raising of funds and block deals helped some stocks, while profit booking and disinvestment issues led to the downfall of some other stocks.
