Category: Business & Economy

In New Delhi, the Nifty Pharma index showed good results on Monday. Some companies did especially well: Natco Pharma shares went up by 2.88%, Biocon by 2.8%, Gland Pharma by 2.43%, Mankind Pharma by 2.16%, and Granules India by 1.84%.

However, some companies had a tough day. Cipla’s shares dropped by 1.71%, Aurobindo Pharma by 0.63%, and Ipca Laboratories by 0.62%.

Overall, the Nifty Pharma index went up 0.94% to close at 22,450.20. The main stock market index, NSE Nifty50, rose by 144.96 points to reach 24,276.05. Meanwhile, the BSE Sensex increased by 445.29 points to hit 80,248.08.

Out of the 50 stocks in the Nifty index, 33 saw their prices go up, while 17 saw their prices go down. Some of the most traded shares today were Vodafone Idea, Ola Electric Mobility, YES Bank, Suzlon Energy, and JP Power.

Notably, Ramco Systems and a few other companies hit new 52-week highs in their share prices today. However, Coffee Day Enterprises and some others hit their 52-week lows.

B Prasanna, the Group Head of Global Markets at ICICI Bank, spoke about the recent GDP numbers, which came as a surprise to many. He believes the economy has hit its lowest point and will start improving in the second half of the year. Although ICICI Bank predicts a decent GDP growth of around 6.5% in the second half and 6.3% for the whole year (FY25), these numbers are lower than what everyone expected, including the Reserve Bank of India (RBI), which had anticipated over 7% growth earlier this year.

Prasanna mentioned that a cut in the Cash Reserve Ratio (CRR)—the money banks are required to hold with the RBI—would be crucial to encourage banks to lend more, especially to small and medium businesses. He doesn’t expect the RBI to cut interest rates in the December meeting but anticipates a 50-basis point reduction in CRR, possibly in two steps of 25 basis points each, accompanied by a more relaxed talk about future rate cuts.

He acknowledged that the recent GDP growth of 5.4% was unexpected and significantly below predictions, mainly due to slower government spending and reduced manufacturing output. Factors such as heavy rainfall and tighter liquidity in the market have contributed to this slowdown.

He believes that while the government aims to increase spending, it may be challenging due to the need to meet budget targets, especially with ongoing elections affecting their plans. However, he expects government spending to rise in the coming months.

While infrastructure projects and real estate revival are helping the economy, there are concerns about slowing consumer spending and the private sector not stepping up as expected. Overall, Prasanna feels that the worst is likely over, but the recovery will not be quick enough to make up for earlier losses.

Regarding the RBI’s next steps, Prasanna thinks they will prioritize managing both inflation and growth moving forward. He mentions that lowering expectations of inflation could allow for more flexibility in monetary policy. Therefore, while a big rate cut isn’t expected just yet, a CRR cut seems on the horizon to improve lending conditions, particularly for small businesses which need it the most.

A big week for shopping—well, shopping for investment! About nine new mutual fund offers (NFOs) are now available for you to consider. Here’s what you can look at:

– TATA FMP-61-D-91D is a plan that lets you invest your money for a fixed period, and it will close on December 4. It focuses on earning money or growing your investment by putting money into safe fixed-income stuff. You can start with just ₹5,000.

– Kotak Nifty 100 Equal Weight Index Fund is for those who want to invest in 100 big companies equally. This offer is open until December 16. You need at least ₹100 to start investing here.

– Kotak Nifty 50 Equal Weight Index Fund is similar, but it focuses on 50 big companies. It is also open till December 16, with a minimum investment of ₹100.

– Quantum Ethical Fund is for those who want to invest only in companies that follow ethical rules. It is open till December 16. It’s all about growing your money while keeping it clean, and you need at least ₹100 to start.

– Samco Multi Asset Allocation Fund allows you to invest in different areas like stocks and gold. It opens on December 4 and closes on December 18. The minimum investment is ₹5,000, but if you want to do a monthly plan, it’s just ₹500.

– SBI Quant Fund uses special math to choose its stocks. This fund is up for grabs from December 4 to December 18. You can start investing with ₹5,000.

– Aditya Birla SL Conglomerate Fund is a mix of many businesses. You can invest with a minimum of ₹100, and it opens on December 5 and closes on December 19.

– Bajaj Finserv Healthcare Fund is focused on health companies. It opens on December 6 and closes on December 20, and you can start with just ₹500.

– Baroda BNP Paribas Children’s Fund is for your kids’ future, with a minimum investment of ₹1,000. This fund has a lock-in of at least five years.

Make sure to invest carefully and check with experts if unsure

Gujarat Gas has announced a price increase for CNG (Compressed Natural Gas), starting December 1. The new price will be Rs 77.76 per kg across the state, which is an increase of Rs 1.5 per kg. This is the third price hike in just a few months—there were earlier increases of Re 1 in July and another in August.

The new price goes into effect starting midnight on Saturday. This change will affect over 400,000 CNG vehicle users in South Gujarat, where there are about 250 CNG pumps, including 60 in Surat. Many auto-rickshaws and school vans use CNG, so these fare charges may also go up due to this price hike.

Big Changes Ahead for Gujarat Gas!

In other news, Gujarat Gas is merging with Gujarat State Petroleum Corporation (GSPC) and Gujarat State Petronet Ltd (GSPL) to make it easier to manage the company. This merger could help Gujarat Gas earn more money, with a projected increase in earnings per share (EPS) by 5 to 7% after new shares are issued.

The merger will be complete by August 2025 and will involve a big change in shareholding. As a result, the Gujarat government’s stake in Gujarat Gas will decrease from 60.9% to 25.9%, while other government entities will hold about 29%. Minority shareholders will own the rest.

This week, you have a great chance to invest in new mutual fund schemes! Here’s a list of the funds that are currently open for you to subscribe:

– TATA FMP-61-D-91D: This is a fixed maturity plan that helps you earn money and grow your investment over a set time. You can invest at least Rs 5,000, and it will close on December 4.

– Kotak Nifty 100 Equal Weight Index Fund: This fund aims to match the performance of the top 100 companies in India by investing mostly in their stocks. You can start with just Rs 100, and it will be available until December 16.

– Kotak Nifty 50 Equal Weight Index Fund: Similar to the above fund, but focuses on the top 50 companies. It also has a starting amount of Rs 100, and subscriptions are open until December 16.

– Quantum Ethical Fund: This fund only invests in companies that follow ethical practices. You can join for a minimum of Rs 100, and it closes on December 16.

Several new funds will also open for subscription later this week. Here are the details:

– Samco Multi Asset Allocation Fund: This fund invests in stocks, bonds, gold, and more. The subscription starts on December 4 and ends on December 18 with a minimum investment of Rs 5,000.

– SBI Quant Fund: This fund picks stocks using special mathematical methods. You can start with Rs 5,000, and it will be available until December 18.

– Aditya Birla SL Conglomerate Fund: This fund focuses on companies that are part of big groups. It opens on December 5 and closes on December 19, starting from Rs 100.

– Bajaj Finserv Healthcare Fund: This fund invests in healthcare-related companies. It opens on December 6 and ends on December 20, with a minimum investment of Rs 500.

– Baroda BNP Paribas Children’s Fund: This fund is specially for kids and has a lock-in period of five years. You can start investing from Rs 1,000, and subscriptions will open soon.

Remember, investing is important for your future, and these funds are great ways to grow your money!

Shares of Bandhan Bank Ltd. increased by 0.2% to Rs 169.30 on Monday afternoon, around 01:26 PM (IST), while the main stock market index, Nifty, was at 24,157.35, up by 26.25 points. The stock had closed at Rs 168.95 in the previous trading session.

Over the past year, the lowest price for the stock was Rs 163.00, and the highest was Rs 263.15. The bank has a market value of Rs 27,273.74 crore on the Bombay Stock Exchange (BSE). So far, 197,455 shares have been traded today.

Currently, the stock is priced at 9.78 times its earnings per share (EPS) of Rs 17.31 from the last 12 months and 1.34 times its book value. The return on equity (ROE), which shows how well the company makes money, is Rs 10.33.

For the quarter ending on September 30, 2024, Bandhan Bank reported total sales of Rs 6,094.53 crore, which is a 21.11% increase compared to the same period last year.

Adani Power Ltd. saw its shares rise by 1.52% to reach Rs 546.10 by 1:31 PM IST on Monday. The stock had a strong start to the day. According to Niftystat, a total of 648,190 shares were traded, bringing in Rs 35.77 crore in sales by the same time.

The company’s stock currently has a price-to-earnings (P/E) ratio of 16.57 and a price-to-book (P/B) ratio of 5.78. This means investors are willing to pay about 16 times what the company earns per share, and the P/B ratio shows how the current share price compares to the company’s value.

Adani Power’s return on equity (ROE) is outstanding at 58.53%, indicating that the company generates a lot of profit from its shareholders’ investments. During the day, the stock reached a highest price of Rs 566.00 and a lowest price of Rs 543.25. Its 52-week range shows it hit a high of Rs 896.75 and a low of Rs 417.10.

The stock is considered quite volatile with a beta value of 2.8409, meaning it moves more than the overall market.

Looking at the technical indicators, the 200-day moving average (200-DMA) was Rs 634.12, while the 50-day moving average (50-DMA) stood at Rs 595.54. If a stock is priced above these averages, it usually suggests prices could continue to rise. However, if it’s below these averages, it might indicate a downward trend. If the stock is in between, it means the price could go either way.

The Relative Strength Index (RSI) measures how the stock is performing. Currently, it is at 48.7. An RSI above 70 signals that a stock is too expensive, while an RSI below 30 suggests it’s too cheap.

As of September 30, 2024, the promoters own 74.96% of the company. Foreign institutional investors have 12.66% and domestic institutional investors hold 1.52%.

Anuj Kumar, the Director and CEO of CAMS, talked about how the market has changed lately. He mentioned that, despite some ups and downs, CAMS is optimistic about the future and thinks that FY25 will be one of the best years for the company in the last five or six years.

Kumar highlighted that CAMS is winning about 70% to 80% of new projects. The company focuses on doing its job well and helping its clients grow their businesses. Although profits will grow slowly—about 1% to 1.5% each year—CAMS feels positive about its performance.

When asked about mutual funds, Kumar agreed that CAMS is in a great place since 86-87% of its earnings come from mutual funds. He noted that CAMS experienced a fantastic last quarter with 32% revenue growth and 40% profit growth, making it one of the best times in his nine years with the company.

While CAMS expects revenue growth to be between 26% and 28% in the coming quarter, they anticipate profits to grow in the mid-30% range for the year. Kumar expressed confidence that the overall performance in FY25 will be strong.

CAMS currently focuses mostly on mutual funds, but also has some other services like payments and insurance management. They believe in continuing their current strategy and are not rushing to invest cash unless it really fits the company’s focus.

For mutual funds, they expect about 14-15% profit growth over the next three years, while non-mutual fund businesses could grow over 20%. They are also investing in technology, including security and AI, which will help them perform better in the digital world.

Kumar explained that their business model, where companies rely on outsourcing services like CAMS, is hard to replace. Even with new players like Jio Financial Services entering the market, it’s still a complicated business that requires years of investment to compete effectively.

CAMS has maintained a strong position, having about 70% of the market share for several years. They continue to focus on helping clients grow while managing their own performance, expecting easy growth in their margins as well.

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.