Author: Rasmita Jena

Adani Power announced that they have not received any news about the Bangladesh government wanting to change their power deal. Recently, a report mentioned that Bangladesh’s energy minister said they might try to renegotiate the 25-year power purchase agreement with Adani. This would happen unless a court rules to annul the deal.

The news comes amid serious allegations against Gautam Adani, who has been accused of being involved in a $265 million bribery scheme in India, which he denies. An Adani Power spokesperson confirmed, “We have no indication that Bangladesh is reviewing our power deal.”

On Monday, Adani Power shares fell by 1.32% to Rs 547.50 each. Despite facing payment delays, Adani Power committed to continuing electricity supply to Bangladesh. However, these payment issues are making it hard for them to keep operations going. The spokesperson expressed concern, saying, “Bangladesh’s dues are significant and making plant operations unsustainable.”

Adani Power started supplying electricity to Bangladesh in 2023 under a long-term agreement made in 2017 when Sheikh Hasina was Prime Minister. This 1,600 megawatt plant uses expensive imported coal and covers about 10% of Bangladesh’s power needs. The spokesperson also stated, “We believe Bangladesh will uphold its commitments, just as we have kept our side of the agreement.”

The interim government of Bangladesh is reviewing the Adani power deal and other contracts to ensure they are trustworthy for future international talks and arbitration. In the fiscal year 2022/23, Bangladesh paid Adani 14.02 taka per unit for electricity, which is much higher than the average of 8.77 taka per unit from other suppliers. Even though the price dropped to 12 taka for 2023/24, it is still 27% more than other private Indian producers and up to 63% more than state-owned Indian plants.

On Monday, HDFC Asset Management Company’s shares were priced at Rs 4261.55 at 12:19 PM (IST), which is a 1.29% drop from the last close. The stock had a low of Rs 2852.85 and a high of Rs 4862.00 over the past year. It started the day on a low note, and so far, 4,832 lakh shares have traded.

The company has a market value of Rs 91,302.82 crore. The price-to-earnings (P/E) ratio stands at 41.32, while the price-to-book value ratio is at 11.32, showing how the stock is valued compared to its actual worth. The return on equity (ROE) is 28.08%, indicating a good profit for its shareholders.

Among all the stocks on the BSE500 list, 275 are doing well today, while 224 are not. HDFC’s stock has a beta value of 0.7861, which means it is less volatile than the market.

As of September 30, 2024, promoters hold 0% of the company, while foreign investors own 21.55% and local institutions have 10.61%.

Regarding moving averages, the stock’s 200-day moving average (DMA) is at 4065.43, and the 50-DMA is at 4378.54. If a stock trades below both the 50-DMA and 200-DMA, it usually signals a bearish trend, while trading between the two means it could go either way.

Crompton Greaves shares went down by 1.89% because the Nifty stock market index also fell. Investors are worried about how the economy is doing, which is causing stocks to drop. Many people are keeping an eye on these changes, as they could affect investment decisions. This drop could be a chance for investors to look for better buying opportunities in the future.

In today’s trading, shares of Shriram Finance Ltd. went up by 2.16% to Rs 3083.10 as of 10:05 AM (IST). During this session, the stock reached a high of Rs 3088.55 and a low of Rs 3000.00.

The company shows a good return on equity (ROE) of 15.04%. The traded volume was notable, with a turnover of Rs 1.54 crore by that time.

Looking at the past year, Shriram Finance Ltd. has hit a 52-week high of Rs 3652.15 and a low of Rs 1933.70. The stock’s Beta value is 1.6856, which means it’s more volatile than the market.

As of September 30, 2024, the company’s ownership is as follows: Promoters hold 25.4%, foreign institutional investors (FIIs) own 53.29%, and domestic institutional investors have 16.17%.

In terms of finances, Shriram Finance reported sales of Rs 10,096.68 crore for the quarter ending September 30, 2024. This is a 5.07% increase from the previous quarter and a 13.54% increase compared to the same time last year. The net profit for this latest quarter was Rs 2140.4 crore, which is up 19.84% from one year ago.

India’s economy is growing slower than it has in almost two years, which might hurt the stock market in the short term. In the September quarter, the economy expanded less than expected, and this has made many investors nervous.

Market experts believe that if the Reserve Bank of India (RBI) lowers interest rates or requires banks to keep less money in reserve, the economy could bounce back in the second half of the fiscal year. However, because of worries about the economy and high stock prices, India’s NSE Nifty 50 Index is down about 8% since hitting a record in September. Last month, foreign investors took out $2.6 billion from Indian stocks, following a record pullout in October.

For the first time since Indian bonds entered a key index, there was also money leaving the bond market.

Market Opinions:

– Analysts from Emkay Global Financial Services predict some short-term market weakness but believe much of this was already expected and partly reflected in stock prices. They suggest that a small drop (over 5%) in the Nifty Index could be a good buying opportunity and note that slow economic growth could lead to an RBI rate cut soon.

– Vikas Pershad, a portfolio manager at M&G Investments, remains optimistic, stating India is still a promising long-term growth story despite current setbacks.

– Jefferies Financial Group analysts say that weak GDP numbers are already showing in corporate earnings, but the worst may be over. They think lower interest rates could be on the way, benefitting the economy.

– Currency expert Michael Wan mentions that if the growth slowdown is temporary, it could affect investment flows negatively.

– Barclays analysts expect the RBI to keep interest rates the same in their upcoming meeting, despite recent disappointing GDP figures because inflation is still a concern.

– Sonal Varma from Nomura believes the weak GDP report is crucial for the RBI’s decisions. They expect a slight cut in the interest rate this month to help the banking system.

Overall, while the current growth numbers are worrying, many experts still believe there is hope for a bounce back.

Recently, some big brokerage firms shared their picks and opinions on popular stocks. Here’s what they had to say:

HSBC and Titagarh Rail Systems:
HSBC is feeling positive about Titagarh Rail Systems. They think it’s a good stock to buy. The price target is Rs 1,425, which is an 18% increase from the current price of Rs 1,205. Even though there have been some delays in their projects, the company has chances to win more contracts now that state elections are over.

Morgan Stanley and IndusInd Bank:
Morgan Stanley is being careful about IndusInd Bank. They say to hold it the same (called “equal-weight”) and have a target price of Rs 1,150, which is a 15% rise from the current price of Rs 996. However, the stock has lost 30% of its value recently due to worries about its microfinance loans and earnings expectations. While the situation isn’t entirely bad, they think there are safer options with other major banks.

Axis Capital and Hindustan Unilever (HUL):
Axis Capital is optimistic about Hindustan Unilever. They suggest adding it to your portfolio, with a price target of Rs 2,850, meaning you could see a 14% return from the current price of Rs 2,496. HUL keeps growing, having a strong reach with nearly 9 million stores. The company is aiming to grow its earnings significantly in the future, especially in its ice cream business, which has a lot of growth potential.

(With insights from NiftyStat)
(Disclaimer: The opinions shared belong to the experts and do not reflect the views of the Economic Times)

Tata Motors’ shares are expected to attract attention on Monday after the company shared its sales results for November 2024. Overall, Tata Motors sold 74,753 vehicles this month, which is a small increase from 74,172 vehicles sold in November last year. Domestic sales rose by 1%, reaching 73,246 units compared to 72,647 units in November 2023.

Passenger vehicle sales, including electric cars (EVs), saw a 2% rise to 47,117 units, up from 46,143 units a year ago. Domestic passenger vehicle sales, which also include EVs, increased by 2% to 47,063 units from 46,068 units last year.

On the other hand, total sales of commercial vehicles went down by 1%, totaling 27,636 units compared to 28,029 units the previous year.

In the second quarter of Fiscal Year 2025, Tata Motors reported a net profit of Rs 3,343 crore, which is 11.18% lower than last year. The company’s revenue also dropped by 3.5%, reaching Rs 101,450 crore.

The revenue for Jaguar Land Rover (JLR) decreased by 5.6% to £6.5 billion because of temporary supply issues. This also caused the company’s profit margins to fall by 220 basis points to 5.1%. For commercial vehicles, revenue fell by 13.9%, but the profit margin improved to 10.8% because of better pricing and lower material costs. For passenger vehicles, revenue dropped by 3.9%, but the profit margin remained steady at 6.2% due to cost-saving measures and better sales mix.

On Friday, Tata Motors’ shares closed at Rs 786.80, increasing by 0.9%. This was better than the Sensex index, which went up by 0.96%. Despite a drop of 30% in the last three months, the stock has grown by 82% over the last two years. Tata Motors has a market cap of Rs 2,89,638 crore.

(Disclaimer: The opinions shared here are those of the experts and do not reflect the views of NiftyStat.)