Stocks to Watch, Friday, September 27, 2024: Indian equity benchmark indices looked set for a higher open on Friday, following overnight gains in the US and higher Asian markets. The same was indicated by GIFT Nifty futures.
At 7:10 AM, GIFT Nifty futures were trading at 26,349, around 40 points ahead of Nifty futures’ last close.
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Markets in the Asia-Pacific region mostly climbed on Friday, on the back of gains in Chinese stocks.
In Hong Kong, futures for the Hang Seng index stood at 20,575, suggesting a potential opening gain of over 3 per cent compared to the previous close of 19,924.58.
Tokyo’s headline inflation rate eased to 2.2 per cent, down from 2.6 per cent in August, while the core inflation rate, excluding fresh food prices, matched expectations at 2 per cent, decreasing from 2.4 per cent.
In response to these figures, Japan’s Nikkei 225 rose 0.52 per cent, though the broader Topix index fell 0.23 per cent.
South Korea’s Kospi slipped 0.18 per cent, and the small-cap Kosdaq declined 0.15 per cent. Meanwhile, Australia’s S&P/ASX 200 gained 0.25 per cent, closing in on its all-time high of 8,246.2.
Overnight in the US, all three major indexes advanced, with the S&P 500 reaching a new record of 5,745.37. The Nasdaq Composite rose 0.60 per cent, while the Dow Jones Industrial Average climbed 0.62 per cent.
Meanwhile, here are a few stocks likely to be in focus today:
Fortis Healthcare: IHH Healthcare’s Group CEO, Prem Kumar Nair, announced that the company has no immediate plans to list its diagnostics arm, Agilus Diagnostics, despite its significance to the overall business. Fortis acquired a 31 per cent stake held by private equity players in Agilus Diagnostics for Rs 1780 crore, a deal that valued Agilus at Rs 5,700 crore.
HDFC Bank: The bank has sold a housing loan portfolio worth about Rs 60 billion ($717 million) to several state-controlled banks as part of its strategy to reduce credit load amid regulatory pressures. Additionally, the bank offloaded a pool of car loans worth Rs 90.6 billion through securitised pass-through certificates. These moves are aimed at improving its credit-deposit ratio, which has been under scrutiny following its merger with Housing Development Finance Corp.
Reliance Infrastructure: Reliance Infrastructure is considering raising long-term capital through various means, including equity shares and convertible securities. A board meeting is scheduled for October 1 to discuss the details. Recently, the company approved a plan to raise over Rs 6,000 crore, aimed at business expansion and meeting long-term working capital needs.
IT stocks: With Accenture raising its revenue guidance for FY25 to 3–6 per cent, exceeding its previous guidance, IT stocks in India would be in focus today. Despite a challenging FY24, the company reported a revenue increase to $64.9 billion. The firm is experiencing strong momentum in generative AI, with $3 billion in new bookings.
NTPC: NTPC Green Energy, the renewable energy arm of NTPC, has highlighted potential risks in its IPO filing, particularly regarding restrictions on imports from China, a key supplier for solar and wind equipment. The company imported Rs 1,271 crore worth of equipment from China in FY24, and such trade restrictions could impact its business operations.
Hindustan Copper: HCL is working on expansion projects to increase its mine production capacity to 12.2 million tonnes per annum (MTPA). The company reported a 13 per cent rise in ore production in FY24 and is transitioning from open cast to underground mining, with significant capacity increases planned for its various sites.
Maruti Suzuki India: Hyundai Motor India, preparing for its IPO, could command a valuation multiple higher than Maruti Suzuki, according to Nomura. The company’s expected market capitalisation ranges between Rs 1.5 trillion and Rs 1.7 trillion ($18 billion to $20 billion). The IPO is anticipated to launch in early November.
Reliance Industries: Reliance Retail’s fashion e-tailer, AJIO, has partnered with H&M to feature the brand’s products on its platform. This collaboration aims to enhance H&M’s online presence in India, offering over 10,000 styles across womenswear, menswear, kidswear, and home décor.
Torrent Pharmaceuticals: The company has refuted claims from the Central Drug Standards Control Organisation (CDSCO) regarding its product, Shelcal 500, being labeled as Not of Standard Quality (NSQ). The company asserted that the seized sample was spurious and not manufactured by them, as the batch was traced to a different manufacturer. Torrent said it has implemented anti-counterfeit measures, including QR codes, to verify product authenticity.
Ola Electric: The company announced plans to open 10,000 sales and service outlets by the end of 2025, targeting expansion in smaller cities. The company has already onboarded 625 partners and aims to reach 1,000 by the festive season. Ola currently operates 800 company-owned stores and is looking to enhance its service network significantly, which aligns with its goal of boosting electric vehicle adoption across India.
Adani Green Energy: AGEL has completed a 50:50 joint venture with TotalEnergies, with TotalEnergies investing $444 million for a stake in AGEL’s solar projects in Gujarat. The partnership will focus on a portfolio of 1,150 MWac of solar energy projects.
Thermax: The company is accelerating its global expansion plans, aiming to double its presence in Southeast Asia, Africa, and the Middle East. Currently, 30 per cent of its business comes from international markets, and the company is focusing on sustainable solutions such as hydrogen and carbon capture. Thermax recently secured a significant order for gas-fired boilers in the UAE and is capitalizing on biomass opportunities in Africa.
Balmer Lawrie & Co: The company plans to invest Rs 700 crore to achieve a revenue target of Rs 6,000 crore by 2030. The investment will support diversification into ethanol production, establishing a free trade warehousing zone in Mumbai, and enhancing third-party logistics services.
SpiceJet: The airline has cleared pending salaries for its employees from June to August following a Rs 3,000 crore capital raise through a Qualified Institutional Placement (QIP). This move comes as the airline works to improve its financial stability amidst ongoing challenges, including grounded aircraft due to financial constraints and maintenance issues.
Biocon: The company has signed a licensing and supply agreement with Tabuk Pharmaceutical Manufacturing Company to commercialise its GLP-1 products for diabetes and chronic weight management in select Middle Eastern countries. Under the agreement, Biocon will develop and manufacture the products, while Tabuk will handle marketing and registration.
IDBI Bank: The bank has launched the Sugam Rinn Bhugtan Yojana, a special one-time settlement scheme aimed at retail borrowers with outstanding amounts between Rs 10 lakh and Rs 10 crore. The scheme targets non-performing assets (NPAs) and allows eligible borrowers to settle their dues without legal complications. With around Rs 2,300 crore in outstanding loans affected, the initiative seeks to resolve long-pending accounts and strengthen the bank’s financial standing, which reported a gross NPA ratio of 3.87 per cent in Q1FY25.
IndiGo: The airline has nominated Isidro Porqueras as its new Chief Operating Officer (COO), effective November 1, 2024, pending regulatory approvals. Porqueras, who joined as Chief of Transformation earlier this year, brings over 25 years of experience in the airline industry, including leadership roles at Volotea.
