Morning Alerts
Banks’ balance sheet grows in double digits after 7 years: RBI report
The health of Indian banks continued to improve in 2021-22 with their balance sheet growing at double digits after a gap of seven years and their asset quality and capital position bettering, the Reserve Bank of India (RBI) said in its annual report on trend and progress of banking in India. At the same time, the banking regulator flagged the issue of slippages from restructured accounts. “Going forward, it is imperative that banks ensure due diligence and robust credit appraisal to limit credit risk,” the report said. “If downside risks materialise, asset quality could be affected. Hence, slippages in restructured assets need to be monitored closely,” it said, adding that timely resolution of stressed assets was essential to prevent asset value depletion. Surplus liquidity in the banking system has been falling in recent months. Liquidity has even slipped into deficit on more than one occasion. However, the RBI has assured liquidity support to the productive sectors.
India plans $2 billion incentive for green hydrogen industry, says report
India is planning a $2 billion incentive programme for the green hydrogen industry, three sources told Reuters, in a bid to cut emissions and become a major export player in the field. The 180-billion-rupee ($2.2 billion) incentive aims to reduce the production cost of green hydrogen by a fifth over the next five years, said a senior government official and an industry manager working in renewable energy. It would do this in part by increasing the scale of the industry, they said. The current cost in India is 300 rupees to 400 rupees per kg, said the manager. The United States and the European Union have already approved incentives worth billions of dollars for green hydrogen projects. Hydrogen can be used as a fuel. It is made by splitting water with an electrical process, electrolysis. If the devices that do that, electrolysers, are powered by renewable energy, the product is called green hydrogen, a fuel free of greenhouse emissions.
Total govt debt increases to Rs 147 trn in Q2, shows FinMin report
The total liabilities of the government increased to Rs 147.19 lakh crore at September-end from Rs 145.72 lakh crore at the end of June this fiscal year, according to the latest data on public debt. In percentage terms, it reflects a quarter-on-quarter increase of 1 per cent in second quarter of 2022-23. Public debt accounted for 89.1 per cent of total gross liabilities at September-end 2022, up from 88.3 per cent as on June 30, the quarterly report on public debt management released by the finance ministry on Tuesday said. Nearly 29.6 per cent of the outstanding dated securities had a residual maturity of less than 5 years, it said. During the second quarter, it said, the central government raised Rs 4,06,000 crore through dated securities, as against notified amount of Rs 4,22,000 crore in the borrowing calendar, while repayments were at Rs 92,371.15 crore.
Commodities play
Gold – Rs 54368/10gm, Silver – Rs 68467/kg, Brcrude – Rs 6210/barrel, Degumsyoil – Rs 1296/10kg, Copper – Rs 740/kg.
Corporate News
IEX forms subsidiary to explore business opportunities in carbon market.
Tatas, SIA pumped Rs 650 crore into Vistara ahead of announcing merger.
SGX Nifty indicates negative start to Indian markets trading at 18077 levels down by 71 points or 0.39%. However Dow Jones ended yesterdays session in green up by 0.11% at close.
Sector in focus – Banks, Power, IT & Pharma.
Bulk Deals and insider Trades
Bulk Deal & Insider Trade Update
Bulk Deals
*Sturdy : Punjab National Bank Sell 10480105 Shares @ Rs. 0.52
*S. P. Apparels Limited : Ashish Ramesh Kacholia Sell 164427 Shares @ Rs. 307.1
Insider Trade
- Acquisition*
*Pooja Kalidindi Director Acquisition 4469 shares of Ncl Industries Ltd.-$ on 27-Dec-22
*Titagarh Logistics Infrastrucutures Private Limited Promoter Group Acquisition 209011 shares of Titagarh Wagons Ltd.
Disposal
*Nimmagadda Venkata Ramana Director Disposal 237340 shares of Divi’S Laboratories Ltd. on 27-Dec-22
*Om Prakash Manchanda Director Disposal 8357 shares of Dr. Lal Pathlabs Ltd on 23-Dec-22
Invoke
*Promoter Group Invoke 89115 shares of Future Retail Ltd
Dividend Update
*Advani Hotels & Resorts (India) Ltd. Interim Dividend Rs. 2 Ex Date 29-Dec-2022
*Sarthak Metals Ltd. Interim Dividend Rs. 1 Ex Date 30-Dec-2022
Corporate Actions
Indowind Energy has decided to open its rights issue on January 27, till February 10, 2023. The rights entitlement ratio is in the proportion 2 shares for every five shares held by eligible equity shares. The rights issue price has been fixed at Rs 12 per share.
Dividend
29-Dec-22
ADVANIHOTR: Interim Dividend – Rs. – 2.00
30-Dec-22
SMLT: Interim Dividend – Rs. – 1.00
IPO
Sah Polymers: Open: 30-Dec-22; Close: 04-Jan-23
Buyback
Tips Industries: Ex-Date: 29-Dec-22
Technocraft Industries (I): Ex-Date: 30-Dec-22
Jagran Prakashan: Ex-Date: 05-Jan-23
Softsol India: Ex-Date: 13-Jan-23
Orbit Exports: Open: 15-Dec-22; Close: 28-Dec-22
Tanla Platforms: Open: 20-Dec-22; Close: 02-Jan-23
Dhanuka Agritech: Open: 26-Dec-22; Close: 06-Jan-23
Bonus
Advait Infratech: Bonus Issue 1:1; Ex-Date: 28-Dec-22
Naysaa Securities: Bonus Issue 15:10; Ex-Date: 30-Dec-22
Globe Commercials: Bonus Issue 1:1; Ex-Date: 06-Jan-23
KPI Green Energy: Bonus Issue 1:1; Ex-Date: 18-Jan-23
Stock Split
Supreme Petrochem: Stock Split From Rs. 4/- to Rs. 2/-; Ex-Date: 05-Jan-23
Vishnu Chemicals: Stock Split From Rs. 10/- to Rs. 2/-; Ex-Date: 13-Jan-23
Rights Issue
Rajapalayam Mills: Ex-Date: 30-Dec-23
Visagar Financial Services: Ex-Date: 30-Dec-23
Hatsun Agro Products: Open: 19-Dec-22; Close: 09-Jan-23
RSWM Ltd: Open: 23-Dec-22; Close: 06-Jan-23
Stocks in Action
Affle India ltd: Affle (India), a consumer tech company in the form of an ad-tech platform satisfies both. Affle has built its presence in multiple layers of the digital ad ecosystem. It had the foresight of the market evolving to mobile first a decade ago. This spearheaded the development of monetisation via CPCU model, which proved to be a game changer. Execution prowess sustenance notwithstanding changing environment and regulations is the key MOAT. The mobile first digital marketing spending is poised to grow the fastest amongst media channels. Shift in consumption patterns and preference towards targeted advertising are propellers. Affle offers a proxy play on multiple consumer themes. Its success lies in matching appropriate inventory to users, such that conversions happen for advertisers. Positive on Affle India as it is well placed to ensure business longevity with the increasing discretionary spends and its tech prowess.
Gujarat Fluorochemicals: Fluoropolymers business is incrementally favouring integrated players considering intermediate products. The situation puts Gujarat Flurochemicals in a sweet spot as it is fully backward integrated for its entire fluoropolymers business. It has done upfront investments in intermediate production, which has enabled the company to win more customers contracts in fluoropolymers business. Large Chinese fluoropolymers producers also enjoy the same position; however, it scores over Chinese players in terms of market penetration, technical sales team and local warehousing. It has at least a few years of head start compared to any potential Chinese / Indian competition. Its new fluoropolymers capacity expansion will immediately help in growing profits in FY23 and FY24; thereafter, the company is working on expanding presence in battery chemicals. Positive on Gujarat Fluorochemicals as the fluoropolymers business is in a sweet spot to grow along with new-age industries such as batteries, solar panels and green hydrogen.
Forthcoming Events
28th December: Alexander Stamps, Capri Global Capital, K&R Rail Engineering to consider Fund raising
29th December: RO Jewels to consider Bonus & Stock Split; Retro Green Revolution, Puravankara to consider Fund Raising
30th December: Welspun Enterprises to consider Dividend & Buyback; Punjab & Sind Bank to consider Fund Raising
31st December: Ruchi Infrastructure to consider Fund Raising
02nd January: Inventure Growth & Securities to consider Fund raising; Coastal Corporation to consider Right Issue
03rd January: Karnavati Finance to consider Stock Split
04th January: IRB Infrastructure Developers to consider Stock Split; Spacenet Enterprises India to consider Fund raising
05th January: K P Energy to consider Stock Split
12th January: HCLTECH to consider Dividend
18th January: PERSISTENT to consider Dividend
20th January: COFORGE to consider Dividend
