Best Stock Market News: India’s stock benchmarks advanced the most in over two weeks, aided by gains in metal, auto, banking and energy stocks, as markets shrugged off concerns over the possibility of a faster taper and the omicron covid-19 strain.
The S&P BSE Sensex rose over 1% to 57,684.79. The NSE Nifty 50 also advanced by similar magnitude to 17,166.90.
Reliance Industries Ltd. contributed the most to the index gain, increasing 2.6%. IndusInd Bank Ltd. had the largest increase, rising 5.7%. Today, 33 of 50 shares rose, while 17 fell.
Tata Power Jumps Over 4% After Bagging India’s Largest Solar & Battery Storage Project Worth Rs 945 Crore
Shares of Tata Power Co Ltd. rose 4.45% in intraday trade to Rs 226.45 apiece after it received an LoA from Solar Energy Corporation of Inmdia Ltd. to build 100 MW EPC Solar Project. The total contract value of the project is approximately Rs 945 crore. The project will be executed within 18 months.
Of the 25 analysts tracking the company, 11 maintained ‘buy’, seven maintained ‘hold’ and seven maintained ‘sell’ recommendations. The overall consensus price of analysts tracked by Bloomberg implied a downside of 11.4%.
Maruti Suzuki’s Total Sales Rise 0.61% MoM In November
- October : 1,38,335
- November : 1,39,184
- Rise : 0.61%
Sapphire Foods Opens 500th Store; Expects To Double Store Base In Next 3-4 Years
Shares of Sapphire Foods India Ltd. rose 2.81% in intraday trade to Rs 1,049 apiece after the company announced the opening of its 500th store in KFC Dindigul, Tamil Nadu. The company’s group CEO Sanjay Purohit announced plans to double store count in the next 3-4 years.
Sapphire Foods also witnessed healthy recovery in Dine In sales, resulting in robust same store sales growth in the last two months.
The company is scheduled to announce its earnings on Friday.
India Delays Resumption Of International Passenger Flights Amid Concerns Over Omicron Covid-19 Variant
India reviewing resumption of international passenger flights. Earlier the resumption of international passenger flights was planned from December 15.
Reliance Capital Insolvency And The Domino Effect On Its Subsidiaries
The Reserve Bank of India’s decision to supersede the board of Reliance Capital Ltd. and refer it for insolvency proceedings will lead to a cascading impact across its nearly 20 subsidiaries.
Reliance Capital, which got a licence as a non-bank finance company in December 1998, is now registered as an NBFC-CIC or core investment company, according to its annual report for 2020-21. As such most of its earnings come from operating businesses that it holds stake in.
The annual report lists 20 subsidiaries where Reliance Capital has majority stake. It also lists four companies in which it has minority stake and another five associate companies, of which one is a foreign entity.
Manufacturing PMI At 10-Month High In November
A gauge of activity across India’s manufacturing sector expanded for the fifth straight month at an accelerating pace.
The IHS Markit India Manufacturing Purchasing Managers’ Index stood at 57.6 in November against 55.9 in October, according to the monthly release. A reading above 50 indicates economic expansion.
The reading signaled the strongest expansion for the sector in 10 months. The gauge also remains well above its long-run average of 53.6, the release said.
Tega Industries IPO: All You Need To Know
ega Industries Ltd. will launch its three-day initial public offering on Wednesday, joining more than 90 companies that listed on the bourses this year amid a record run in the stock market.
The IPO is a pure offer for sale by promoters and existing arm of private equity firm TA Associates, the Kolkata-based company said in its red herring prospectus. The maiden offer constitutes 20.6% of the post-issue equity of the company, with the promoters holding 79.2% after the share sale.
- Offer for sale: Rs 619 crore.
- Price band: Rs 443-453 apiece.
- Market value at the upper end of the price band: Rs 3,003 crore.
- Face value: Rs 10 apiece.
- Lot size: 13 shares and multiples.
- Listing: NSE and BSE.
- Lead managers: Axis Capital, JM Financial.
Tega Industries, according to an F&S report, is one of the leading manufacturers and distributors of specialised ‘critical to operate’ and recurring consumable products for the global mining and mineral processing industry, on the basis of sales as of June. It’s the second-largest producer of polymer-based mill liners, on the basis of revenue as of June.
Reliance Capital Seizure: Shares Of Anil Ambani Firms Tumble
Shares of Anil Ambani-owned firms declined in early trading after the Reserve Bank of India decided to supersede the board of Reliance Capital Ltd. owing to governance concerns and unpaid dues.
The RBI said it will initiate insolvency proceedings at the company shortly and has appointed Nageswar Rao Y, former executive director of Bank of Maharashtra, as administrator.
Shares of Reliance Capital Ltd. slumped 5% to trade at the lower circuit. The only outlier was Reliance Communications Ltd., which was trading up 2.9% at 10:10 a.m.
Banks to Reach Out to Anchor Investors for LIC IPO After Paytm Delay
Bankers will next week start discussions with potential anchor investors in the initial public offering of Life Insurance Corporation of India, according to people familiar with the matter, to help the government stick to its March deadline for what’s set to be the nation’s biggest share sale.
The 10 underwriters will reach out to as many as 40 global firms about two weeks later than planned, the people said, asking not to be identified discussing private details. That’s because several of these firms were key investors in the IPO of fintech giant Paytm, which roiled sentiment when it tumbled on debut last month, one person added.
Banks want to wrap up these initial talks by mid-December before the end-of-year break, the people said. Representatives for LIC didn’t respond to email seeking comment.
Retailers See Inventory Pile Up As Rural Demand Begins To Lose Steam
India’s consumption engine hasn’t kept pace with the expectations of a buoyant festive season, thanks to rising prices and lower purchasing power in rural areas.
Early insights from retail intelligence platform Bizom, which tracks 75 lakh stores across the country, show the sales value growth of fast-moving consumer goods dipped 15.5% sequentially in the first two weeks of November.
The post-Diwali period is usually soft every year as retailers stock up aggressively in the build-up to the festive season to cater to the surge in demand and some of it gets rolled over, according to Akshay D’Souza, chief marketing officer at Bizom. Still, a double-digit decline in sales this year is “unusual”, implying slower demand recovery, he said.