Pumped up

Nifty50: 18,070 ▲ 133 (+0.7%)
Sensex: 60,571 ▲ 455 (+0.7%)

Greetings, people!

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• The Nifty and Sensex opened at five-month high levels, shrugging off concerns around inflation and IIP data.
• In all, 34 of the Nifty50 stocks closed in the green. 
• US consumer inflation for August stood at 8.3% as compared to 8.5% in July.

Among the Nifty sectoral indices, Metal (+1.2%) and Financial Services (+0.9%) saw most gains, while Realty (-0.1%) and Oil and Gas (-0.1%) closed flat.

What’s trending

⭐ Jio gets nod for satellite communication services

Jio Infocomm's satellite unit has received a letter of intent (LoI) from the Department of Telecom (DoT) for global mobile personal communication by satellite (GMPCS) services. The LoI allows Jio to set up and operate GMPCS services in the licensed service areas for a period of 20 years.

⭐ IRB Infra toll collection rises

IRB (NSE): 236 ▲ 1.5 (+0.6%)

Shares of highway construction company IRB Infrastructure jumped by over 5% on Tuesday. The stock rally came after the company reported a 35% year-on-year rise in gross toll collection in August 2022 at ₹336 crore. The Mumbai-Pune Expressway reported the highest collection at ₹115 crore.

⭐ Ujjivan SFB to raise funds via QIP

UJJIVANSFB (NSE): 24.35 ▼ 1 (-3.9%)

Ujjivan Small Finance Bank has launched its qualified institutional placement (QIP) to reportedly raise ₹475 crore. The floor price for the QIP is set at ₹21.93 per share, which is at a 13% discount to Monday’s closing price. The lender is raising funds to meet the regulatory requirements ahead of the merger with its parent company.

⭐ Gujarat Apollo, PFH BV enter into JV

GUJAPOLLO (NSE): 237 ▲ 39 (+20%)

Shares of Gujarat Apollo were locked in the upper circuit on Tuesday. The company has entered into a joint venture (JV) agreement with Belgium-based PFH BV (Keestrack). The firms will jointly develop agricultural and farming machinery and components. The JV will result in increased efficiencies and allow the two companies to offer improved products in the market. 

In Focus

Defence stocks shoot up

Shares of defence companies seem to be on fire in 2022. Despite the volatility in the broader market, stocks such as Bharat Dynamics, Hindustan Aeronautics, and Bharat Electronics have risen in the range of 60% to 120% so far this year. Let’s look at some of the key factors that have put defence stocks in the limelight.

Over the past few years, the Indian government has taken several initiatives that have promoted domestic manufacturing of defence equipment. This indigenisation drive is offering immense opportunities to domestic defence companies. 

For instance, in August 2022, the Defence Ministry approved the third positive indigenisation list (PIL) of 780 items to be manufactured in the domestic market. This list is a follow-up to the previous two PILs, which had around 2,500 items that have already been indigenised. These PILs will further curtail defence imports and amplify prospects for domestic players.

India’s defence exports are also on the rise. In FY22, the country’s defence and technology-related export rose by over 54% compared to the previous  year, clocking the highest ever figures of ₹12,815 crore. India’s BrahMos missile is now being exported to the Philippines, while Hindustan Aeronautics, which makes Tejas fighter jets is one of the front-runners to grab a major deal from the Royal Malaysian Air Force (RMAF).

Backed by supportive government initiatives, defence stocks seem to be firing on all cylinders. However, global inflationary pressure can potentially hurt export growth and derail the stock rally.

IPO corner

Precision engineering products maker Harsha Engineers International will launch its IPO on 14 September 2022. The price band for the ₹755 crore IPO is between ₹314 and ₹330 per share. Click here to pre-apply for the IPO on Upstox. 

Meanwhile, Sachin Bansal-led fintech player Navi Technologies has received a nod from the market regulator SEBI to launch its ₹3,350 crore IPO.

Good to know

What is qualified institutional placement (QIP)?

A qualified institutional placement (QIP) is a mechanism for listed companies to raise funds from institutional investors through the stock exchange. Earlier, raising funds in the domestic market was quite complex, Hence, Indian companies used to raise funds from foreign markets. To prevent this, the market regulator, SEBI, introduced this process to help Indian companies raise funds easily in the domestic market. 

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