Indian benchmark indices ended lower for the fifth straight session on March 18 amid another spike in US bond yields. At close, the Sensex was down 585.10 points, or 1.17 percent, at 49,216.52, while the Nifty was down 163.40 points, or 1.11% at 14,557.90. Among sectors, IT index shed 3 percent, while pharma index fell over 2 percent. BSE midcap and smallcap indices shed over a percent each. BSE midcap and smallcap indices shed more than 1 percent each. Sectorally, the S&P It index slipped 3 percent, while healthcare, power, realty, bank and capital goods indices shed over a percent each. The Nifty formed a strong bearish candle on the daily scale and continued its weakness for the fifth consecutive session with the formation of lower-highs from the last four trading sessions.
Adani Power | CMP: Rs 89.15 | The share price gained more than 2 percent after the Supreme Court (SC) dismissed a review petition filed by power distribution companies (discoms) of Rajasthan against paying compensatory tariff to the company. In September 2020, the apex court ordered three Rajasthan power distribution companies to pay a compensatory tariff to Adani Power Rajasthan since 2013 to recover the higher cost of imported coal. “We would like to inform that the Hon’ble Supreme Court has dismissed the review petitions filed by Rajasthan discoms in the matter of the SC Judgment dated August 31, 2020, pertaining to recovery of compensatory tariffs by Adani Power Rajasthan Limited, a wholly-owned subsidiary of the company,” Adani Power said in a filing to the Bombay Stock Exchange on March 18.
Welspun Corp | CMP: Rs 133.80 | The stock jumped over 3 percent after the company bagged multiple orders worth around Rs 777 crore. These included a single order of approximately 50 KMT received from a “large client” in the Middle East, which would be executed from its facility in Saudi Arabia, the company said. Most of the other orders will be processed from facilities in India for the domestic market. With these orders, the company’s order book stands at 586 KMT, valued at approximately Rs 5,300 crore after considering execution up to February 2021, Welspun said.
SBI Card | CMP: Rs 1000.45 | The scrip added over 2 percent after brokerages maintained their positive view on the stock. The shares of the country’s second-largest credit card firm were under pressure on March 17 after private equity firm Carlyle sold around 4 percent stake to raise around $ 513 million, according to a deal term sheet viewed by Moneycontrol. Brokerage firm Motilal Oswal Financial Services upgraded the stock to “buy” on March 17 with a target price of Rs 1,200. Brokerage house Prabhudas Lilladher is also positive on the stock despite the stake sale. Morgan Stanley is of the view that SBI Card is a pure play on the unsecured consumer finance opportunity in India, according to a CNBC-TV18 report. With spends largely normalising in Q3F21, Morgan Stanley expects strong growth in spends and loans in FY22 and FY23.
Edelweiss Financial Services | CMP: Rs 80.20 | The share price shed 5 percent after the Ministry of Corporate Affairs (MCA) ordered an inspection of the books of Edelweiss Asset Reconstruction Co (EARC). The MCA has ordered the inspection of the EARC books after a whistleblower wrote to the Prime Minister’s Office (PMO) and the Reserve Bank of India (RBI) alleging fraud at the firm. The whistleblower—Paras Kuhad, a former additional solicitor general of India—has alleged that Edelweiss Group, the controlling shareholder of the asset reconstruction company along with its partner Canadian pension fund Caisse de dépôt et placement du Québec (CDPQ), diverted at least Rs 1,800 crore from EARC. Kuhad and his family own about 14 percent in EARC, which manages Rs 45,000 crore in assets. Edelweiss ARC has denied any wrongdoing and said it was following all laws in letter and spirit. CDPQ did not respond to mails seeking comment.
Bharat Heavy Electricals | CMP: Rs 52.10 | The stock jumped 4 percent after the state-owned company emerged as the lowest bidder for a Nuclear Power Corporation of India project. “In an open competitive bidding process, Bharat Heavy Electricals Limited (BHEL) has emerged as the lowest bidder (~ Rs 10,800 crore) for the fleet mode tender floated by Nuclear Power Corporation of India Limited (NPCIL) for the 6×700 MW Turbine Island Package Projects,” the company said in a press release. In the last week, the Indian Navy placed an order for two super rapid gun mounts, main guns standardised for all warships of the navy.
Adani Green Energy CMP: Rs 1134.80 | The stock shed over 2 percent on March 18. The company raised a $ 1.35 billion debt package for its under-construction renewable asset portfolio through definitive agreements signed with a group of leading international lenders. The revolving project finance facility would initially finance the 1.69 GW hybrid portfolio of solar and wind renewable projects to be setup in four SPVs in Rajasthan. According to the agreement, 12 international banks – Standard Chartered Bank, Intesa Sanpaolo S.p.A, MUFG Bank, Sumitomo Mitsui Banking Corporation, Coöperatieve Rabobank U.A., DBS Bank Ltd., Mizuho Bank, Ltd., BNP Paribas, Barclays Bank PLC, Deutsche Bank AG, Siemens Bank GmbH and ING Bank N.V committed for the facility, which will be the first certified green hybrid project loan in India.
Bajaj Auto | CMP: Rs 3663.45 | The share price added over 2 percent after the company amended its dividend distribution policy with the board aiming for a dividend payout as a percent of standalone profits. The company will also consider surplus funds to decide dividend payout. The dividend payout will be up to 90 percent if the surplus funds are more than Rs 15,000 crore. Currently, Bajaj Auto is sitting on funds in excess of Rs 20,000 crore. That means the dividend payout ratio, which was earlier 50 percent, now moves straight upto 90 percent, almost double.
Mahindra & Mahindra | CMP: Rs 845.35 | The stock ended in the green after global brokerage house CLSA maintained a “buy” call with the target at Rs 1,150 a share. The global research firm, however, cut FY21-23 core EPS by 3-7 percent to factor in volume losses due to chip shortages. The brokerage has forecast FY22/23 tractor industry growth of 8 percent/2 percent on an FY21 base of 25 percent. It is of the view that SUV launches and a cyclical recovery in light commercial vehicles should drive auto segment margin. Tractor sales were up 25 percent at 28,146 units against 22,561 units year on year (YoY). Domestic tractor sales rose 24 percent at 27,170 units against 21,877 units YoY. Tractor exports jumped 43 percent at 976 units against 684 units (YoY). Total tractor sales were down 19.1 percent at 28,146 units against 34,778 units (MoM).
DLF | CMP: Rs 287.75 | The stock ended in the green on March 18. The realty firm plans to raise up to Rs 500 crore by issuing non-convertible debentures (NCD) to investors. The panel gave a nod to “issuance of secured rated listed redeemable non-convertible debentures (NCDs) at a coupon rate of 8.25 percent with an aggregate principal amount of up to Rs 500 crore on a private placement basis in one or more tranches to certain eligible investors.
TVS Motor | CMP: Rs 572.10 | The stock ended marginally in the red on March 18. The company said its board of directors will meet on March 24 to decide the interim dividend for the year ending March 31, 2021. The record date for the purpose of interim dividend will be April 2, the company said in a regulatory filing. The company’s consolidated net profit surged 84.7% to Rs 289.69 crore on 27.9% increase in net sales to Rs Rs 6,094.91 crore in Q3 FY21 over Q3 FY20.