Tit - bits

#Rejig of Nifty Smallcap 250 index:

The index represents the remaining 250 NIFTY 500 firms (ranked 251–500). The goal of this index is to gauge the performance of small market cap companies.

In this index, a whopping 20 stocks have been replaced. The following companies' stock will no longer be included in the index: Advanced Enzyme, Devyani International, Eris Lifesciences, Glenmark Life Sciences, Hathway Cable & Datacom, Hemisphere Properties India, Indo Count Industries, IRCON International, K.P.R. Mill, NESCO, Poonawalla Fincorp, RailTel, Sequent Scientific, Solara Active Pharma Sciences, Spicejet, Strides Pharma Science, Tata Steel Long Products, UCO (India).

The stocks to enter the index from September 30 are --- Aether Industries, Apollo Tyres, Bharat Rasayan, Deepak Fertilisers & Petrochemicals, Exide Industries, Glenmark Pharmaceuticals, Greenpanel Industries, IDBI Bank, JBM Auto, Mahindra Lifespace Developers, Manappuram Finance, Metropolis Healthcare, NIIT, Nuvoco Vistas Corporation, Olectra Greentech, Raymond, Sharda Cropchem, Swan Energy, Tejas Networks and Transport Corporation of India.

#Sugar Sector has turned bullish: Sugar prices are getting support from the lack of rain in several sugar-growing regions throughout the world. According to Maxar Technologies, hot and dry weather in France and Germany could reduce sugar beet production across the EU.  Moreover, India's sugarcane in the Ganges River Basin experienced below-average rainfall in June and July.

India's government recently confirmed that it would allow a further 1.2 MMT of sugar exports for the year ending September 30 to help India's sugar mills from defaulting on export contracts.  That would be on top of the current quota of 10 MMT for a total of 11.2 MMT of sugar exports. For a total of 11.2 MMT of sugar exports, that would be in addition to the 10 MMT present export quota.

Meanwhile, targeting to cut crude oil import dependence and address environmental issues India will be supplying petrol with 20% ethanol blend in selected pumps by April 2023 and throughout the nation by 2025. India has achieved the target of supplying petrol mixed with 10 per cent ethanol ahead of schedule in June this year. 

Moreover, the Rs.2 per litre additional excise duty proposed on unblended fuels in the Finance Bill 2022 - 23, will result in a uniform hike of diesel prices across the country from October 1, 2022.  This would encourage ethanol blending of fuel; positive for sugar companies.

#In a significant development, Nikhil Merchant owned Swan Energy Ltd (Rs.206.70), which has business interest in textile, oil & gas and real estate, is now in Nifty250. It should be trading above Rs.1000 in the next few years.

Two triggers:

#Textile Division of Ahmedabad has been expanded to 3 million metres per month.

#India's first FSRU (floating, storage, and regasification unit) has been built at the cost of Rs.6500 crore > Current Market Cap of the company (Rs.5,457.80 Cr).

The company has already taken possession of the ship and terminal was also built. Only operation should now start...

Construction activities to commence post monsoon:

According to recent report released by real estate data analytics and consultancy company, PropEquity, there has been a remarkable jump in both absorption as well as supply of quality residential properties in various price brackets in the five tier-II cities (Ahmedabad, Baroda, Nashik, Gandhi Nagar and Jaipur) on the back of rapid urbanisation, industrialisation and growth of IT industry.

India is one of the world's fastest-growing major economies. The real estate industry contributes to overall Indian economic growth as well as the country's second-largest employer and third-largest recipient of FDI.

By 2024, the real estate industry is anticipated to reach Rs.65,000 crore, and by 2025, it is anticipated that this sector will account for 13% of the nation's GDP. The real estate industry is unmistakably on a growth trajectory and is already charging into its next adventure. The real estate industry has been developing over the months with new ideas for projects in the residential, commercial, and retail sectors.

Keep accumulating the reasonably good real estate counters, at attractive valuations.