Stocks to Focus: Trent, Ambuja Cement, Hero MotoCorp, ONGC, IDFC First Bank
Stocks to watch on Monday, August 26, 2024: Indian markets are expected to open positively following Jerome Powell's speech, which hinted at a potential interest rate cut cycle by the US Federal Reserve in its September meeting. US markets closed significantly higher on Friday after Powell's remarks at the Jackson Hole Economic Symposium. In Asia, shares moved cautiously upward, with the MSCI Asia-Pacific index excluding Japan rising by 0.4 percent, building on a 1.1 percent increase last week. South Korea's Kospi gained 0.3 percent, while Japan's Nikkei fell 0.7 percent due to a stronger yen impacting exporter stocks.
Trent and Bharat Electronics: In a notable update from the National Stock Exchange (NSE), Trent and Bharat Electronics Limited (BEL) will join the esteemed Nifty 50 index starting September 30. This change underscores the increasing significance of these companies in the Indian equity markets. Trent, recognized for its robust retail operations, and BEL, a frontrunner in defense electronics, will replace Divi’s Laboratories and LTIMindtree, which will be removed from the index.
Ambuja Cement: GQG Partners has expanded its investment in Ambuja Cement, increasing its stake to 2.5 percent by acquiring an additional 1.1 percent through block deals worth Rs 1,679 crore. The shares were purchased at Rs 625.5 each, underscoring GQG Partners' sustained confidence in the company's future growth potential.
Hero MotoCorp: Hero Motors, the flagship auto components division of the Hero Group, has filed for an Initial Public Offering (IPO) with the Securities and Exchange Board of India (SEBI). The company aims to raise up to Rs 900 crore through the public issue, marking a significant step in its expansion plans.
ONGC: ONGC (Oil and Natural Gas Corporation) has marked a significant achievement with the start of production from its fifth oil well in the KG-DWN-98/2 Cluster-2 asset. Furthermore, the company has successfully commissioned a gas export pipeline linking the offshore site to the onshore terminal, thereby boosting its operational efficiency.
Transport Corporation of India: The board of Transport Corporation of India has approved a buyback of up to 13.33 lakh shares at Rs 1,200 each, which is a 4.5% premium over the closing price from the previous Friday. The buyback is scheduled to occur with a record date of September 4, demonstrating the company's dedication to delivering value to its shareholders.
Alembic Pharma: Alembic Pharmaceuticals has secured approval from the US Food and Drug Administration (FDA) for its Abbreviated New Drug Application (ANDA) for Betamethasone Valerate foam, 0.12 percent. This generic version of Luxiq foam, 0.12 percent, is intended for treating scalp skin conditions and will offer a new treatment option for patients in the US.
KEC International: KEC International has won new contracts valued at Rs 1,079 crore in its transmission and distribution (T&D) and cables sectors. These projects include work from a private developer in India, as well as transmission line orders in Saudi Arabia, Oman, and the UAE. This latest round of orders brings the company's Year-to-Date order intake to more than Rs 8,700 crore, highlighting its robust business growth.
IDFC First Bank: IDFC First Bank has received an income tax refund totaling Rs 202.55 crore for the Assessment Year 2023-24. The refund includes Rs 189.25 crore in taxes and Rs 13.30 crore in interest, providing a boost to the bank’s financials.
Ashoka Buildcon: Ashoka Buildcon has been selected as the lowest bidder for a Rs 478 crore project awarded by the Mumbai Metropolitan Region Development Authority (MMRDA). The project entails designing and constructing an elevated road that will link significant areas such as Kalyan-Murbad Road and Pune Link Road, featuring a slip road and a crossing over the Karjat-Kasara railway line. This achievement further bolsters Ashoka Buildcon's standing in the infrastructure development sector.
Piramal Enterprises: Piramal Capital and Housing Finance, a subsidiary of Piramal Enterprises, has joined forces with the Central Bank of India to broaden its co-lending operations. This strategic partnership is designed to improve financial inclusion by focusing on middle and low-income borrowers in rural and semi-urban areas, thus increasing credit access in underserved regions.
Jio Financial Services: Jio Financial Services has obtained approval from the Department of Economic Affairs, Ministry of Finance, to raise its foreign investment limit to 49 percent of its total equity on a fully diluted basis. This decision is anticipated to attract substantial foreign investment, thereby improving the company's financial flexibility and growth potential.
FDC: FDC Limited has announced that its Baddi manufacturing facility has successfully cleared a US FDA inspection with no observations and zero 483s, demonstrating full compliance with stringent regulatory standards. This spotless inspection underscores FDC's dedication to upholding high-quality manufacturing practices.
Dr. Reddy’s Laboratories: Dr. Reddy’s Laboratories announced that the USFDA recently completed a Pre-Approval Inspection of its Srikakulam facility, which resulted in a Form 483 with three observations. The company has pledged to address these observations within the given timeframe to ensure adherence to regulatory standards.
