Market Highlights

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Get the latest Indian stock / share market highlights, BSE/NSE stock news, business research reports & details - updated daily by Money Times.

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November 21, 2024

• INDUS TOWER: Supreme Court Upholds CENVAT Credit Allowance, Reducing Rs. 3704 Cr Contingent Liability for Company.
• Co Says landmark outcome for the telecom industry regarding allowability of CENVAT credit on Input, Capital goods and Input services (pre-GST regime).
• VESUVIUS INDIA: Vesuvius group CEO Mr. Patrick Andre inaugurates New AlSi and Basic Monolithic Plants in Visakhapatnam
• PB FINTECH: The Insurance Regulatory and Development Authority of India (IRDAI) has approved Mr. Tarun Mathur as the Principal Officer and CEO of Policybazaar Insurance Brokers Private Limited, effective November 20, 2024.
• Meanwhile, Mr. Manoj Sharma resigned as Principal Officer of the company due to increased commitments, effective at the close of business on November 20, 2024, but will continue as Wholetime Director and Deputy CFO of PB Fintech Group.
• JTL IND: Company has entered into a special purpose Joint Venture Agreement with M/s Singla Constructions Limited to participate jointly in a Railway Tender and further to execute the contract, if the same is awarded to this Joint Venture
• RELIANCE INFRA: Reliance Clean EV Private Limited (RCEVPL) was incorporated on November 20, 2024, as a wholly owned subsidiary of Reliance Velocity Limited, which is a wholly owned subsidiary of the Company.
• SATTRIX INFORMATION: Company has bagged order to provide Splunk Implementation Services which includes On Site Installation and Commissioning Services for Backup and upgrade support for Splunk and Tenable to Bharti Airtel Limited.
• Adani bonds tumble after founder charged by US authorities. Dollar-denominated notes issued by the Adani Group fell as much as 10 cents on dollar after US prosecutors charged Gautam Adani.
• Adani and seven others are accused of bribing Indian officials in exchange for securing solar energy contracts, and then misleading U.S. investors about their compliance with anti-bribery and anticorruption practices to raise capital.
• They are being charged in the U.S. because the alleged actions occurred in the Eastern District of New York and included alleged false statements and omissions related to a bond issuance for the solar contracts.
• Senior executives at an Indian renewable energy company are accused of conspiring to bribe Indian government officials to obtain solar energy supply contracts with Indian government entities between 2020 and 2024.
• The indictment alleges they misled US-based and international investors about the company’s anti-bribery practices to get funding for these projects.
• T.me/Beatthestreet10
• The defendants in the indictment include Gautam Adani, his nephew Sagar Adani, and several executives at Adani Green Energy Limited and Azure Power Global, as well as former employees of a Canadian institutional investor. The indictment lays out a complex web of transactions and communications related to the bribery scheme.
• Sagar Adani was served with a search warrant and grand jury subpoena, and both he and Gautam Adani emailed others photographs of the documents.
• The SEC filed civil complaints against Gautam and Sagar Adani as well as a former Azure Power Global executive, alleging that they paid hundreds of millions of dollars in bribes to secure commitments from the Indian government to purchase energy at above-market rates that would benefit Adani Green and Azure Power. Azure's stock traded on the New York Stock Exchange, and Adani Green raised more than $175 million from US investors.
• Gautam Adani’s net worth is estimated to be $85 billion, making him the second-richest person in Asia.However, he lost tens of billions in early 2023 after Hindenburg Research accused the Adani Group of being involved in stock manipulation and accounting fraud. Adani has denied those allegations.
• BERNSTEIN ON PAYTM
• • Maintain Outperform; Hike target price to Rs 1000 from Rs 750
• • Discussions on Paytm have shifted from survival risks to a discussion of the bull and bear case scenarios
• • In a bull case scenario see Paytm lending partly from its own balance sheet, improvement in payment margins etc
• • See a ~100% upside to our base case EPS estimates
• • In a bear case scenario see payment margins come under pressure and loan disbursal growth is subdued
• • See a 40% downside to our base case estimates
• MORGAN STANLEY ON CHEMICAL
• • Deepak Nitrite - Maintain Overweight; Cut target price to Rs 3000 from Rs 3295
• • PI Industries - Maintain Equal-weight; Hike target price to Rs 4310 from Rs 4300
• • Q2 showcased the lack of pricing and margins levers for incumbents
• • Witnesssed another round of earnings cuts, guidance resets and limited confidence for 2025
• • Earnings, while nearing a trough, are not fully derisked as recovery expectations stay bullish
• • Demand greenshoots not without hiccups, pricing conditions remain tough
• • Wallet and market share focus implies monetisation at sub-par returns
• • See more visible signs of repair in non- agchem commodity chemicals
• • Prefer Deepak Nitrite
• INVESTEC ON ADANI ENERGY
• • Initiate Buy with target price of Rs 1352
• • Set to capitalise on Rs 9 lakh cr transmission opportunity
• • Smart metering - New growth segment
• • See significant earnings growth led by strong transmission orders
• • Expect EBITDA/PAT to grow at 32%/41% CAGR over FY24 to FY27
• JPMORGAN ON STEEL
• • India's coking coal imports & domestic coking coal production growth slowed down in H1FY25
• • Slow down due to a combination of steel production disruption, inventory correction, election-related slowdown & monsoon impact
• • India is now importing a substantial share of coking coal from Russia (lower priced)
• • Believe Indian steel prices have found a floor
• • Meaningful uptick looks unlikely in the near term
• • Steelmakers could continue to optimize coking coal costs by diversifying their suppliers
• • Prefer JSW Steel, Tata Steel; Neutral on SAIL and Coal India
• CITI INDIA STRATEGY
• • Post 10% correction in NIFTY, valuations are more reasonable
• • NIFTY 1-year forward P/E now just slightly above 5-year long term average
• • Q2 earnings was weak in consumer sectors, but status quo in most others
• • Decent double-digit growth in Financials, Industrials, Healthcare & Telc
• • See potential H2 recovery in public capex & rural demand are positives D
• • Urban consumption & asset quality remains a watch Watch
• • Domestic Flows continue to be robust, but sentiment may be tested if FII sell-off sustains
• • Upgrade Cement to Overweight from Neutral post the underperformance since mid-CY24 and expectations of volume pickup in H2 as well as likely bottoming out of EBITDA/ton metric
• • Add Ramco Cement and switch from Devyani to Jubilant Food in our mid-cap picks
• • Key Overweight: Financials, Telecom, Pharma
• • Key Underweight: Consumer Discretionary, IT, Metals
• • Sep'25 NIFTY target is 25k - 7% upside from here
• BERNSTEIN ON PAYTM
• • Maintain Outperform; Hike target price to Rs 1000 from Rs 750
• • Discussions on Paytm have shifted from survival risks to a discussion of the bull and bear case scenarios
• • In a bull case scenario see Paytm lending partly from its own balance sheet, improvement in payment margins etc
• • See a ~100% upside to our base case EPS estimates
• • In a bear case scenario see payment margins come under pressure and loan disbursal growth is subdued
• • See a 40% downside to our base case estimates
• MORGAN STANLEY ON CHEMICAL
• • Deepak Nitrite - Maintain Overweight; Cut target price to Rs 3000 from Rs 3295
• • PI Industries - Maintain Equal-weight; Hike target price to Rs 4310 from Rs 4300
• • Q2 showcased the lack of pricing and margins levers for incumbents
• • Witnesssed another round of earnings cuts, guidance resets and limited confidence for 2025
• • Earnings, while nearing a trough, are not fully derisked as recovery expectations stay bullish
• • Demand greenshoots not without hiccups, pricing conditions remain tough
• • Wallet and market share focus implies monetisation at sub-par returns
• • See more visible signs of repair in non- agchem commodity chemicals
• • Prefer Deepak Nitrite
• Two Strategy Notes On Indian Markets
• Citi sees NIFTY valuations more reasonable
• Sep’25 NIFTY target is 25k – 7% upside from here
• See potential H2 recovery in public capex & rural demand are positives
• Upgrade Cement to Overweight from Neutral
• Add Ramco Cement and switch from Devyani to Jubilant Food in our mid-cap picks
• Key Overweight: Financials, Telecom, Pharma
• Key Underweight: Consumer Discretionary, IT, Metals
• Goldman Sachs expect the NIFTY to reach 27,000 by end 2025, driven by underlying 13%/16% earnings forecasts
• Expect the market to remain range-bound over the next 3-months - target 24000 and for a back-loaded recovery as growth picks up
• Stay tactically neutral India; Favor select domestics
• Raise exporters like Infotech to Overweight and Pharma to Marketweight on stable/improving demand, EPS tailwinds from weaker INR and defensive characteristics
• Focus on quality growth, earnings visibility, targeted alpha themes
• 4 flavours of quality - Strong balance sheets, High earnings visibility, Positive EPS revisions, and Low beta stocks
• Preferred medium-term themes include housing, agriculture, defense, tourism and affluent India
• US PROSECUTORS INDICT GAUTAM ADANI IN A CASE W.R.T $250 M BRIBERY CHARGES
• US DISTRICT COURT ON ADANI GROUP
• Defendants Held In-person Meetings With Each Other To Discuss Aspects Of Bribery Scheme Execution
• Sagar Adani Used His Phone To Track Details Of Bribes Offered & Promised To Govt Officials
• Adani Cos raised two US dollar-denominated syndicate loans totalling more than $2 billion
• Lender groups comprised of Intl financial institutions & US-based Investors
• Lender groups comprised of Rule 144A bond offerings for >$1 bn underwritten by Intl fin institutions
• Charges In Indictment Are Allegations & Defendants Are Presumed Innocent Until Proven Guilty
• • More Than $250 m In Bribes Promised To Indian Govt Officials For Solar Energy Contracts
• • 'Defendants Orchestrated Scheme To Bribe Indian Govt Officials To Secure Contracts'
• • 'Gautam, Sagar Adani & Vneet Jaain Lied About Bribery Scheme While Seeking Capital From Intl Investors'
• • Approx b/w 2020 & 2024, Defendants Agreed To Pay Bribes To Indian Govt Officials To Secure Contracts
• • Indian Govt Supply Contracts Were Projected To Generate >$2 Bn In PAT Over An Approx 20-Yr Period
• • Gautam Adani Personally Met With An Indian Govt Official To Advance The Bribery Scheme
• Investec on Adani Energy
• Initiate Buy with TP of Rs 1352
• Set to capitalise on Rs 9 lakh cr transmission opportunity
• Smart metering – New growth segment
• Expect EBITDA/PAT to grow at 32%/41% CAGR over FY24 to FY27
• *News Headlines from Business News Agencies:*
• *Business Standard*
• India, Australia firm up clean energy partnership; pushing mega trade pact
• Asia's jet fuel imports from India to hit multi-yr high in Nov, shows data
• Axis Bank, Bank of India eyeing to raise funds through AT-I bonds
• Tripura govt signs MoA with Tata Technologies for upgradation of 19 ITIs
• Adani Energy Solutions to acquire 100% stake in Pune- III Transmission
• Coal import by NRS, domestic thermal power plants drops 9.8% in H1FY25
• ReNew Energy's Q2 net profit rises 31% to Rs 440 crore on higher income
• OfBusiness hires Axis, JPMorgan, Citi among other banks for 2025 Indian IPO
• CIEL HR Services files draft IPO with Sebi, aims for Rs 335 cr via issue
• Parle Agro FY24 revenue down 12% to Rs 3,126 crore, profit slides 89%
• *Economic Times*
• Datta Power Infra signs MoU to invest Rs 5,000 cr in RE sector in Rajasthan
• Tropical Agrosystem to build new unit in Kharagpur, eyes expansion in Gujarat
• LG Saxena approves promotion of 295 CMOs in Delhi government hospitals
• Karnataka aims to attract $ 3 billion in space tech, aims half of country's marketshare
• Vedanta Aluminium signs pact with GAIL for supply of natural gas
• Equity investments in real estate sector to hit a new record surpassing USD 10 billion
• SECI signs MoU with H2Global Stiftung to promote green hydrogen initiatives
• Hope slowdown in urban discretionary demand is a blip, not structural: Sula Vineyards CEO
• Qcomm logistics enabler Blitz raises Rs 51 crore from IvyCap Ventures, others
• Paper and paperboard imports rise by 3.5 pc in April-September FY25
• Higher energy bills push UK inflation to 6-month high in October
• *Mint*
• India’s GDP growth likely moderated to 6.5% in Q2, says Icra
• India's services exports to surpass goods exports by FY30, says GTRI report
• Doodhvale Farms Raises $3M in Atomic Capital-Led Round to redefine India's
• UPL announces rights issue to raise ₹3,378 crore
• Honda Cars India announces big discounts on Amaze, City, and Elevate
• Nokia wins 5G extension deal from Bharti Airtel for its India operations
• Raheja Developers moves NCLAT against insolvency
• India's steel industry to grow at 8%; capacity to rise by 20 million tons by FY2027: report
• Relief for Airtel, Vodafone, Tata Tele as SC grants tax credit on infra item
• Department of Commerce welcomes resumption of FTA talks between India, UK
• Booking Holdings outpaces rivals with strong growth in alternative accommodation
• ADANI GROUP
• The US Federal Court has issued arrest warrants for Gautam Adani and his nephew Sagar Adani.
• This Arrest warrant will also be sent to foreign law enforcement agencies.
• INGOVERN Says This ls The First Time There Has Been A Bribery Charge, Much More Serious Allegations Than Earlier
• ADANI GREEN
• United States Department of Justice and the United States Securities and Exchange Commission have issued a criminal indictment and brought a civil complaint, respectively, in the United States District Court for the Eastern District of New York, against our Board members, Gautam Adani and Sagar Adani.
• The United States Department of Justice have also included our Board member, Vneet Jaain, in such criminal indictment.
• In light of these developments, our subsidiaries have presently decided not to proceed with the proposed USD denominated bond offerings.