Stocks to Focus: HDFC Bank, Godrej, IT Stocks, RITES, Indian Bank, Trent
Stocks to Watch, Friday, September 27, 2024: Indian equity benchmark indices are poised for a positive start on Friday, following gains in the US markets and rising trends in Asia. This upward movement is reflected in GIFT Nifty futures, which were trading at 26,349 at 7:10 AM, indicating an increase of approximately 40 points from the last close of Nifty futures. Most markets in the Asia-Pacific region saw upward movement, spurred by gains in Chinese stocks. In Hong Kong, futures for the Hang Seng index reached 20,575, suggesting an opening gain of over 3 percent compared to the previous close of 19,924.58.
HDFC Bank: HDFC Bank Ltd. has divested a housing loan portfolio valued at Rs 60 billion ($717 million) as part of its strategy to lessen credit exposure in response to increasing regulatory pressures. The portfolio was sold through private transactions to approximately six state-owned banks, as per sources familiar with the situation. Furthermore, the bank also securitized a separate pool of car loans amounting to Rs 90.6 billion, which was structured into pass-through certificates.
Godrej Properties: Godrej Properties has announced plans to explore fundraising options, with the board meeting set for October 1 to consider various methods. According to a regulatory filing, options include issuing equity shares and other securities via public offerings, private placements, or rights issues.
IT Stocks: Major IT companies such as Infosys, TCS, HCL Tech, and Tech Mahindra are likely to attract attention following Accenture's positive revision of its revenue guidance for FY25. The IT consulting and services leader has raised its projected growth rate for FY25 to between 3% and 6%, despite falling short of its FY24 target of 1.5% to 2.5%. Accenture, which operates on a September–August fiscal year, also announced a $4 billion share buyback and surpassed quarterly earnings expectations. This strong performance was largely fueled by robust demand for services related to generative AI technologies, which assist businesses in improving their operational efficiency.
RITES: RITES Limited, a government-owned engineering consultancy, has been selected as the lowest bidder for a competitive tender issued by Delhi Metro Rail Corporation Ltd (DMRC). The contract, valued at Rs 87.58 crore, was announced in a recent exchange filing. Leading the consortium, RITES will undertake the project, enhancing its presence in the urban transport sector.
Indian Bank: The board of Indian Bank has sanctioned the raising of Rs 5,000 crore through long-term infrastructure bonds to finance projects across multiple sectors. This issuance adds to the Rs 5,000 crore the bank has already secured in FY25, underscoring its commitment to supporting long-term infrastructure development.
Prataap Snacks: Authum Investment and Infrastructure, in partnership with Mahi Madhusudan Kela, has signed a share purchase agreement to acquire a controlling stake in Prataap Snacks Ltd., as per an exchange filing. The agreement involves acquiring a 46.85% stake from the company's private equity promoters. Upon completion of the deal, Authum will hold a 42.31% stake in the snack manufacturer. The total transaction is valued at Rs 846.6 crore, with shares being purchased at Rs 746 each.
NIFTY Rejig: The NIFTY50 index is set to undergo a semi-annual rejig, with Tata Group's retail subsidiary Trent and state-owned Bharat Electronics Limited (BEL) being added to the index. They will replace Divi's Laboratories and IT company LTIMindtree, resulting in a change to the index's composition.
Railtel: Railtel Corporation has recently obtained a significant work order worth Rs 155 crore from the Rural Development Department of Mantralaya, Maharashtra. This order pertains to the operationalization of the ASSK-GP project in areas such as Konkan, Pune, and Nashik. Renowned for its telecom infrastructure services, Railtel will oversee the project's implementation, which includes a substantial technological upgrade.
Reliance Power: Reliance Power has announced that its subsidiary, Rosa Power, has repaid Rs 850 crore of its outstanding debt to Singapore-based lender Varde Partners. This repayment is a major milestone in Rosa Power's aim to become debt-free. The company anticipates settling the remaining debt in the next quarter, with plans for full repayment before the conclusion of the current fiscal year.
Torrent Pharmaceuticals: Torrent Pharmaceuticals has categorically denied allegations that its Shelcal 500 product did not pass a quality test conducted by the Central Drug Standards Control Organisation (CDSCO). In a regulatory filing with the Bombay Stock Exchange (BSE), the company stated that the claims relate to a single batch of Shelcal 500, which was marked as "Not of Standard Quality" (NSQ) in CDSCO’s monthly drug alert for August 2024. Torrent asserts that Shelcal 500 continues to comply with all necessary quality standards.
