Share Market News Today

Share Market News Today

Share Market News Today
*Rebound in Adani group stocks key to Rs 20,000-crore FPO’s success*
All eyes would be on Adani group shares when the markets open on Monday, with the fate of the Rs 20,000-crore follow-on public offer (FPO) of the flagship firm, Adani Enterprises (AEL), hanging in balance following a Rs 4.2-trillion rout in group stocks in two days. While the company said it is confident about the FPO’s success, a rebound in stock prices holds the key in attracting investors, said market players. The FPO managed to garner bids worth Rs 150 crore on its first day amid an 18 per cent crash in AEL’s stock. Shares of AEL last closed at Rs 2,769 apiece. Its shares are now 11-15 per cent cheaper than the offer price in the secondary market. The price band for the FPO is Rs 3,112- 3,276 per share.

*Securities fraud by the ‘Madoffs of Manhattan’, says Adani group*
Terming Hindenburg Research’s conduct a “securities fraud”, the Adani group on Sunday night said it was shocked and deeply disturbed to read the report published by the “Madoffs of Manhattan”. It further said the report by Hindenburg Research was nothing but a lie. In a 413-page document, Adani retaliated against the American short-seller, saying the document was a “malicious combination of selective misinformation and concealed facts relating to baseless and discredited allegations to drive an ulterior motive”. “This is rife with conflict of interest and intended only to create a false market in securities to enable Hindenburg, an admitted short seller, to book massive financial gain through wrongful means at the cost of countless investors.

*PowerMin asks utilities to not retire old thermal units till 2030*
Central Electricity Authority (CEA), the technical arm of the Ministry of Power, has asked power generation utilities to not retire any thermal power plant till 2030. The notice cites union power minister R K Singh who in a recent meeting hosted by CEA, advised to not retire any thermal units and called for carrying out renovation and modernisation (R&M) to extend the life of these units. This is in consideration with expected demand scenarios and availability of capacity in the near future. “It may be noted that about 15-16 Gw of new thermal capacity is expected by December 2023. Therefore it is advised to all power utilities not to retire any thermal units till 2030 and ensure the availability after carrying out R&M activities, if required,” said the note by the CEA.

*Commodities play*
Gold – Rs 56897/10gm, Silver – Rs 68116/kg, Brcrude – Rs 6602/barrel, Degumsyoil – Rs 1296/10kg, Copper – Rs 791/kg.

*Corporate News*
Go First to get Rs 210 crore under govt’s credit line guarantee scheme: CEO.

JSW Steel plans Rs 20,000-crore capex in FY24 for capacity expansion: Rao.

SGX Nifty indicates positive start to Indian markets trading at 17712 levels up by 22.5 points or 0.13%.

Sector in focus – Infrastructure, Banks, IT & Metals.

Stock in Action

Maruti Suzuki India ltd: Maruti Suzuki India, the leader in the passenger car segment, has reported a strong set of numbers in Q3 FY23 on the operational front, on the back of a significant reduction in raw material prices and rich product mix, leading to a strong expansion in operating margins. The waning impact of chip shortage helped the company to increase production and, with demand in place, the company saw an 8% growth in volume in Q3 FY23 on a YoY basis. Realisation registered a 15% YoY rise, driven by the rich product mix. Consequently, the company saw a 25% YoY growth in the top line. Operating leverage, stemming from higher volumes, coupled with the softening of raw material prices led to an EBITDA margin expansion of 305 bps on a YoY basis. The strong demand is corroborated by the company’s order book of more than 365,000 units. The management expects demand to pick up both in urban and rural areas. With a good crop and a normal monsoon, the rural sentiment is expected to remain positive. With metal prices now softening, the benefit has started trickling in as is evident from Q3 FY23 numbers. Positive on Maruti Suzuki as demand gathers pace and supply-side glitches smoothen, the car maker will be able to push the growth pedal hard.

Syngene: Syngene International Ltd has posted a strong top-line number for Q3FY23, benefiting from the traction in research and manufacturing businesses. Syngene’s underlying revenue growth for Q3FY23 was 28%, after excluding Remdesivir sales in the corresponding quarter last year. Growth in development services was modest due to timing issues and partly expected to reflect in Q4FY23. Rupee depreciation also helped in reporting higher top line. Revenue mix has a higher contribution of manufacturing, which is currently at lower margins because of lower level of capacity utilisation. A major development in the quarter was the regulatory approval from the agencies in the US, the UK and Europe for the biologics facility in Bengaluru for commercial supplies. Biologics manufacturing is already showing good growth and it is expected to pick up with a follow-through in Zoetis contract. Another growth lever to watch in manufacturing is that of the Mangalore API facility. Here the USFDA approval is expected in H2FY24. Hence, a substantial sweating of this $85 million facility is expected from FY25 onwards. Positive on Syngene given the strong cash flow, balance sheet, and order book visibility.