KNR Constructions surge over 7% as board to consider maiden bonus issue on Friday
KNR Constructions’ share price rallied over 7 percent on Tuesday after the company said that the board will meet on Friday (December 18) to consider a maiden bonus issue. The stock climbed as much as 7.4 percent to Rs 318 per share on the NSE. In the previous month, the stock has rallied as much as 23 percent to current levels, outperforming the 6 percent gain made by S&P BSE Sensex. In its regulatory filing, the company said, “The meeting of the board of directors of the Company is scheduled to meet on Friday the 18th day of December 2020 at 12:30 P.M at Hyderabad inter alia to consider the declaration of bonus shares and other related issues.” More here
An international investor will buy 42% stake in Singer India’s holding entity
Small appliances firm Singer India on Tuesday said an international investor will acquire 42 percent stake in the holding entity of the India business. Retail Holdings India BV is a promoter entity of Singer India Ltd. ”Retail Holdings Asia BV, has entered into an agreement with an international private investor to sell approximately 42 percent of its equity interest in its 100 percent owned subsidiary, Retail Holdings India BV to the investor,” Singer India said in a regulatory filing. Singer India, however, did not share the name of the investor or the deal size. ”No change in the ownership or control of Singer India will take place as a result of this transaction or is contemplated,” the filing said. It further added that ”RH India has been, and will continue to be, the majority shareholder, owning approximately 59 percent of the equity of Singer India”. More here
NMDC | The company has raised prices of Lump Ore (65.5%, 6-40mm) by Rs 700 to Rs 5,200 per tonne and fines (64%, -10 mm) by Rs 500 to Rs 4,610 per tonne w.e.f. December 15, 2020.
Yash Gupta Equity Research Associate, Angel Broking Ltd
IRCTC stock down by 1.8% on back of ongoing OFS, earlier promoter fixed floor price of Rs 1367. On First day of OFS it got oversubscribed by 1.98x times from the non-retail category. Now the company has fixed the cutoff rate of 1377.55 after the first day of bidding. Total OFS is 20% of paid-up equity share capital. Pre-OFS Promoter shareholding is 87.4% and post-OFS it will come down to 67.4%, by this very significant supply will come on the day of allotment of OFS share to investors. We expect IRCTC stock to come down after the allotment of shares of OFS i.e. 16th December 2020.
Kalpataru Power Transmission bags new orders worth Rs 1,300 crore
Kalpataru Power Transmission Ltd (KPTL) on Tuesday said it has secured new orders worth Rs 1,300 crore in the domestic and overseas market. The company said it has won orders in the T&D (transmission and distribution) business. In a regulatory filing, Kalpataru Power Transmission Ltd said it has secured new orders/notification of award of about Rs 1,300 crore.
KPTL said it has bagged the engineering, procurement and construction orders for pipeline laying and associated works in India and order for railway electrification by Central Organisation for Railway Electrification (CORE). Read more here.
DHFL race: Oaktree bid highest; Piramal Group emerges as dark horse
The race for the acquisition of Dewan Housing Finance Corporation Ltd (DHFL) has narrowed down to two players, Piramal Group and Oaktree Capital as the offer from Adani Group was much lower, sources said. Oaktree Capital’s offer is the highest overall but the Ajay Piramal-led conglomerate Piramal Group will be a contender thanks to its easier insurance business takeover and higher cash upfront. Piramal Group has offered Rs 12,700 crore cash upfront as compared to Rs 11,646 crore offered by Oaktree Capital, sources added. Piramal Group may also face fewer complications in acquiring DHFL’s business — being a foreign entity, Oaktree will have to contend with 49 percent FDI insurance restriction in takeover.
Adani Ports JV to raise $300 mn; plan to retire debt
Adani Ports and Special Economic Zone Ltd (APSEZ) on Tuesday said its joint venture firm Adani International Container Terminal Pvt Ltd will raise USD 300 million (over Rs 2,200 crore) to retire some of its debt. ”Adani International Container Terminal Pvt Ltd (AICTPL), a 50:50 joint venture (JV) of Adani Ports and Special Economic Zone Ltd and Terminal Investment Limited Holding S.A., priced an offering of USD 300 million 3.00 percent senior secured notes due 2031. More here
Gold rate today: Yellow metal trades higher; may face resistance at Rs 49,800 per 10 grams
Gold prices in India traded higher on the Multi Commodity Exchange (MCX) Tuesday tracking a positive momentum in the international spot prices on a softer US dollar. Gold prices above Rs 49,000 level look strong, analysts said. At 12:10 pm, gold futures for February delivery rose 0.54 percent to Rs 49,201 per 10 grams as against the previous close of Rs 48,939 and opening price of Rs 49,035 on the MCX. Silver futures traded 0.63 percent higher at Rs 63,870 per kg. The prices opened at Rs 63,604 as compared to the previous close of Rs 63,471 per kg. More here
Positive on Maruti Suzuki, Hero MotoCorp, says HDFC Securities’ Aditya Makharia
Auto stocks have had a phenomenal run from the March lows, with Ashok Leyland being the strongest performer. HDFC Securities’ Aditya Makharia, however, points that although auto stocks have doubled from the lows, the auto index is still 20-25 percent lower from the highs of January 2018. “While the broader market is at an all-time high, the Indian auto index is yet lower. One of the key reasons for the same is that if you look at volumes, volumes are not back up where they were in 2018. There is still some time for us to catch up to those volume levels which we had seen 2 years ago,” Makharia, Senior Analyst – Automobiles at HDFC Securities told CNBC-TV18 in an interview on Tuesday. Makharia said that he is positive on stocks like Maruti Suzuki and Hero MotoCorp. Watch video for more
Majesco hits 52-week high on declaring dividend of Rs 974 per share
Insurance technology firm Majesco on Tuesday said that its board has approved an interim dividend of Rs 974 per equity share for the financial year 2020-2021. The company has fixed December 25 as the record date for the dividend. In an exchange filing, the company said, “We wish to inform that the Board of Directors of Majesco Limited at its meeting held today i.e. December 15, 2020, has approved payment of interim dividend at the rate of 19,480 percent i.e. Rs 974/- per equity share of face value of Rs 5/- each for the financial year 2020-21.”
This interim dividend payout translates to an amount of Rs 2,788.4 crore on a shareholder base of 28.577 million shares. The balance cash reserves estimated at Rs 103 crore will be distributed subject to board and regulatory approvals, it added. The stock price of the company reacted positively to the development as it gained as much as 4.66 percent to hit a 52-week high of Rs 1,019.00 apiece on the BSE. The shares of Majesco has rallied more than 180 percent in the last six months. More here
2021 Auto Sector Outlook: Expectations of strong recovery priced in, says ICICI Securities
The COVID-19 pandemic hit the automobile sector hard as mobility needs were constrained in the first half of CY2020 due to lockdowns. However, the second half was a story of pent-up demand release and growing industry optimism. As we move into CY21, ICICI Securities forecasts strong double-digit industry growth aided by the base effect of H1CY20 while assuming a continuation of more of the same trend, which is, the rural outperforming urban.
“A better winter crop harvest under the rising commodity price environment is likely to benefit rural cashflows. Rebound in infrastructure activities in rural markets could also lend a fillip to ancillary income streams for households, hence the relative preference for more rural-facing auto segments, viz. tractors and 2Ws vs PVs,” ICICI Securities said in a report. More Here
Delhivery eyes IPO in next 12-15 months
Supply chain company Delhivery on Tuesday said it will head towards the public markets in the next 12-15 months. It also said Steadview Capital has bought USD 25 million (about Rs 184 crore) worth of secondary shares from one of its early investors. The logistics firm, however, did not name the investor. ”We are delighted to welcome Steadview Capital onto our cap table. We’ve known Steadview and Ravi for quite some time, and it’s great to have them join us for this next phase of Delhivery’s journey. ”Steadview is a long-term investor and we see them playing a key role as Delhivery heads towards the public markets in the next 12-15 months,” Delhivery founder and CEO Sahil Barua said in a statement. More here
Indian Hotels stock jumps 4% after HSBC raises target price, maintains ‘buy’ call
Shares of Indian Hotels jumped over 4 percent on Tuesday after brokerage house HSBC remained bullish on the stock and raised its price target. The brokerage maintains a ‘buy’ call on Indian Hotels with the target at Rs 151 per share from Rs 120.50 earlier. As per the brokerage, seasonal recovery in demand and pick-up in banquet business should boost profitability. It further said that the firm should also benefit from some consolidation and its focus on growth. Wider availability of vaccines could further boost demand, the brokerage firm noted.
COMPANY UPDATE: Wockhardt promoter releases pledge on 13.2 lakh shares on December 11
Market Watch: Shubham Agarwal, CEO & Head of Research, Quantsapp Advisory
Buy 480 strike call option for Cadila Healthcare for a target of Rs 20 with a stop loss at Rs 12. Buy 820 strike call options for Voltas for a target of Rs 30 with a stop loss at Rs 17 and buy 520 strike call option for Dabur with a target of Rs 16 for a stop loss at Rs 10
JUST IN: Mindtree says BSE & NSE approve applications of Co-founders for reclassification from ‘Promoter/Promoter Group’ to ‘Public’ category
Technical View | The Nifty is at the midpoint of the resistance patch which is in between 13,400 and 13,700. We have been in this range for over a week now as this is a decisive point for the index and can pose a threat to the upward direction of the market should there be a U turn from the current juncture. The breaking of 13,300-13,400 could be a dicey situation to be in, says Manish Hathiramani, Proprietary Index Trader and Technical Analyst, Deen Dayal Investments.
Majesco says record date for dividend is December 25 & earliest dividend payout is December 30
Majesco has approved payment of Rs 974/sh interim dividend for the financial year 2020-21. This interim dividend payout translates to an amount of Rs 2788.4 crore on a shareholder base of 28.577 million shares
Market Watch: Dipan Mehta, Director, Elixir Equities on ONGC
“While you can see some amount of value money getting into ONGC and lifting the stock price up and maybe you could see the stock price going up by another 5-10 percent or so, this is clearly not for long term investors. If you have a 3-5 years type of a view, with the kind of opinion which is there on crude oil prices which is long term negative, I would not be so optimistic about ONGC’s prospects over the next 2-3 years or so. On the short term you could see the trading rally extend for some more time, but medium to long term I do not think ONGC can give great returns or even outperform the market.”
Opening Bell: Sensex opens 150 points lower, Nifty around 13,500; financials, IT stocks drag
Indian indices opened started the day on a weak note on Tuesdsy tracking mixed trends in global peers. Losses in banks, financials, and IT stocks weighed on the sentiment, At 9:18 am, the Sensex was trading 152 points lower at 46,101 while the Nifty fell 51 points to 13,507. Broader markets, however, were mixed with the midcap index down 0.3 percent and smallcap index flat. On the Nifty50 index, Eicher Motors, NTPC, HDFC Life, Dr Reddy’s and Divi’s Labs were the top gainers while Axis Bank, ONGC, Asian Paints, M&M and ICICI Bank led the losses.
Oil slips on demand worries as COVID-19 lockdowns tighten in Europe
Oil prices dipped in early trade on Tuesday, with demand worries due to tighter lockdowns in Europe outweighing relief from vaccination rollouts and concerns about a flare-up of tension in the Middle East. US West Texas Intermediate (WTI) crude futures fell 16 cents, or 0.3 percent, to USD 46.83 a barrel at 0158 GMT, while Brent crude futures fell 20 cents, or 0.4 percent, to USD 50.09 a barrel, erasing half of Monday’s gains. London stepped up restrictions requiring bars and restaurants to close, as COVID-19 infection rates continued to rise sharply, which will dent fuel demand in the near term. Further marring the demand outlook, Italy said it was considering more stringent restrictions over the Christmas holidays, while most stores in Germany have been ordered to shut until Jan. 10, with little prospect of an easing early in the new year. More here
