Stocks to Focus: IndiGo, Paytm, Adani Ports, RIL, Tata Motors DVR

Stocks to Watch: The Indian benchmark indices BSE Sensex and Nifty 50 are expected to have a slow start, as indicated by the GIFT Nifty index. This follows Nvidia's better-than-expected results, which failed to bolster investor confidence in the US market, leading to a nearly 7 percent drop in Nvidia's stock during extended trading. As of 7:50 AM, the GIFT Nifty was trading at 25,003.50, about 45 points below the Nifty futures close of 25,048.35. In the Asia-Pacific region, markets declined on Thursday, with tech stocks dragging down South Korean and Taiwanese indexes following Nvidia's second-quarter results. South Korean chip giant SK Hynix fell over 5 percent, while Samsung Electronics dropped more than 2.6 percent, causing the Kospi to fall by 0.71 percent. The Taiwan Weighted Index decreased by 1.14 percent, leading losses in the region. Japan’s Nikkei 225 fell by 0.42 percent, and the broader Topix index was down by 0.24 percent.

InterGlobe Aviation (IndiGo): Rakesh Gangwal, co-founder of IndiGo, plans to sell up to 14.7 million shares in InterGlobe Aviation Ltd, which represents a 3.8% stake in the company. The transaction, valued at about $804 million, will be executed through a block deal with a floor price of Rs 4,593 per share, marking a 5.5% discount compared to the previous day's closing price. Following this sale, the Gangwal-backed promoter group's shareholding in the airline will decrease from 19.38% to 15.58%.

One97 Communications (Paytm): Paytm Payments Services Ltd (PPSL) has secured approval from the finance ministry for a downstream investment by its parent company, which permits it to reapply for a payments aggregator license. This comes as a welcome update amid ongoing regulatory scrutiny. PPSL will keep offering online payment aggregation services to its current partners while it resubmits its application.

Adani Ports and Special Economic Zones (APSEZ): APSEZ announced plans to establish a two-million-tonne cement grinding unit in Guna and a propellant production facility in Shivpuri, Madhya Pradesh. The total investment for these projects is pegged at Rs 3,500 crore, marking a significant expansion for the Adani Group's infrastructure and manufacturing capabilities.

Reliance Industries (RIL): The Competition Commission of India (CCI) has given the green light to the merger between Disney Star, a subsidiary of The Walt Disney Company, and Reliance Industries-controlled Viacom18, subject to certain voluntary modifications. This merger, set to become one of the largest in India's media and entertainment industry, will establish an $8.5 billion entertainment network. Additionally, the company is holding its Annual General Meeting today.

Tata Motors DVR: Trading of Tata Motors' Differential Voting Rights (DVR) shares will end after market hours on Friday, August 29. This is due to the conversion of DVR shares into ordinary shares. Under the conversion plan, DVR shares will be canceled, and shareholders will receive 7 ordinary shares for every 10 DVR shares they hold.

Finolex Cables: The National Company Law Appellate Tribunal (NCLAT) has upheld the decision made by the shareholders of Finolex Cables Ltd. to reject the reappointment of former executive chairman Deepak Chhabria at the company’s annual general meeting (AGM) last year. The NCLAT’s ruling validates the shareholders’ decision from the September 2023 AGM.

PB Fintech (PolicyBazaar): Tencent is reportedly selling a 2.1% stake in PB Fintech through a block deal valued at Rs 1,610 crore. The floor price is set at Rs 1,660.2 per share, representing a 4.4% discount to the last closing price. Tencent held a 4.6% stake in Policybazaar's parent company as of June 30, 2024.

Tata Steel: Moody's has upheld a stable outlook for Tata Steel, anticipating a rise in the company's earnings over the next two financial years. The credit rating agency forecasts that Tata Steel's consolidated EBITDA will grow from Rs 241 billion in FY24 to Rs 290 billion in FY25, and reach Rs 380 billion in FY26. Additionally, Tata Steel has acquired 178.34 crore ordinary equity shares in T Steel Holdings Pte (TSHP) for $280 million (Rs 2,347.81 crore).

Vodafone Idea: During Vodafone Idea's 29th annual general meeting (AGM), CEO Akshaya Moondra mentioned that the company will need some time before it can start reducing its debt. He clarified that debt reduction will only be feasible once the company's cash EBITDA exceeds its financing costs and capital expenditures. Moondra emphasized that enhancing the company's performance is a crucial objective as they strive to achieve this.

Vedanta: Vedanta's Board of Directors is scheduled to meet on September 2, 2024, to review and potentially approve the third interim dividend for FY25. The company disclosed in an exchange filing that the board will deliberate on the interim dividend for equity shares for the financial year 2024-25.

Procter & Gamble Hygiene and Health Care: Procter & Gamble Hygiene and Health Care (PGHH) saw a substantial 46.40% decrease in net profit for the June 2024 quarter, with earnings totaling Rs 81.06 crore. This decline is due to higher spending during the period. In the same quarter of the previous fiscal year, the company, which follows a July-June financial year, reported a profit after tax of Rs 151.24 crore.

KEC International: Infrastructure company KEC International has secured new orders worth Rs 1,171 crore in its Transmission and Distribution business, which includes projects for constructing transmission lines in the UAE and Saudi Arabia.