L&T Tech bags large deal, RITES wins new order & more

Nifty50: 17,312 ▼ 246 (-1.4%)
Sensex: 57,972 ▼ 861 (-1.4%)

Greetings, folks!

Markets were a bit of a letdown today. We hope they make a comeback like the Indian cricket team did on Sunday to set up a nail-biting finish. After all, tomorrow is another day.

• After a gap-down opening, benchmark indices closed in the red amid a global sell-off. 
• In all, 38 of the Nifty50 stocks closed lower.
• Meanwhile, the rupee slumped to a two-year low against the dollar.

Among the Nifty sectoral indices, FMCG (+0.3%) and Oil and Gas (+0.06%) saw meagre gains, while IT (-3.5%) and Media (-2.0%) were the top losers.

What’s trending

⭐ L&T Tech bags large deal

LTTS (NSE): 3,568 ▼ 101 (-2.7%)

L&T Technology & Services (LTTS) has received a five-year multi-million dollar deal from luxury vehicle maker BMW Group. Under this deal, LTTS will provide high-end engineering services for BMW’s suite of infotainment consoles for its hybrid vehicles. The IT company will offer services such as software build and integration, infotainment validation and defect management.

⭐ RITES bags new order

RITES (NSE): 299 ▲ 8.6 (+2.9%)

Transport infrastructure company RITES secured a new order worth ₹361 crore. The order is for the redevelopment of the railway station at Kollam in Kerala. RITES will execute this project along with a JV partner, and the share of RITES in JV is 51%.

⭐ Andhra Paper plans capex 

ANDHRAPAP (NSE): 493 ▲ 24 (+5.3%)

The board of leading paper and pulp manufacturer Andhra Paper has approved a capex of ₹400 crore. Of this, around ₹113 crore will be spent towards equipment reliability and sustaining the current levels of production. The remaining ₹287 crore will be used to enhance pulp production capacity from 550 tonnes per day to 600 tonnes per day.

⭐ Rupee declines further 

The Indian rupee plunged on Monday, breaching the ₹80 per dollar mark and hitting a record low of 80.13. Federal Reserve chairman Jerome Powell in his speech on Friday signalled further interest rate hikes in coming months to bring down the soaring inflation. This led to a surge in the US dollar against major world currencies.

In Focus

Reliance has big plans

Oil-to-telecom conglomerate, Reliance Industries concluded its annual general meeting (AGM) today. The meeting is keenly followed by investors and market enthusiasts for new announcements. In the past, the AGM has witnessed marquee announcements like the launch of Jio and the group’s strategic shift to green energy. This year’s AGM was also action packed. Let's dig in to know what transpired.

One of the biggest takeaways from today’s AGM was the tentative date for the rollout of 5G services. The company announced that Jio 5G services will be available by Diwali this year in metros like Delhi, Mumbai, Chennai and Kolkata, while the pan-India 5G rollout will be done by December 2023. The company plans to invest ₹2 lakh crore for 5G rollout and will also launch an affordable 5G smartphone along with Google.

In other news, the company’s retail business achieved a record turnover of ₹2 lakh crore, serving over 20 crore registered customers. Meanwhile, its total store count stood at 15,000. Reliance Retail also plans to launch a fast-moving consumer goods (FMCG) business this year. 

Further, the company is planning to invest ₹75,000 crore over the next five years to expand its petrochemical capacity, including the construction of PTA and carbon-fibre plants at Dahej and Hazira. It is also aggressively pushing into new energy segments and has announced the setup of a new giga factory for power electronics.

However, there was no update on the IPO of Reliance Retail and Jio. The company’s chairman, Mukesh Ambani, said he will share an update at next year’s AGM. 

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Good to know

What is a demerger?

A demerger is a business-restructuring exercise, wherein a company splits off one or more divisions to be operated independently or sold off. A company may plan a demerger for several reasons such as focusing on its core operations and spinning off less relevant business units, raising capital, and to discourage a hostile takeover. A demerger is a valuable strategy for companies that want to refocus on their most profitable units, reduce risk, and create greater shareholder value. 

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