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Emkay Upgrades Paytm To 'Add'; Raises Target
Emkay has upgrades its rating for the shares of One97 Communications to 'add' with target revised to Rs 750 as against 375 earlier, implying upside of 13%. It said that easing regulatory stance should pave the way for approvals from NPCI/RBI and that company is set to onboard new users/online merchants soon and, thus, drive business turnaround.
Along with this, strong cost optimization measures should put Paytm on an early path to profitability and management expects the loan distribution business to gradually re-accelerate, led by merchant loans.
The brokerage expects the company to again turn operating EBITDA ex-ESOP and UPI incentive positive by 4QFY25E.
Bombay High Court Denies Hearing HUL's Case
The Bombay High Court on Monday denied hearing Hindustan Unilever Ltd.'s case challenging a demand of over Rs 962 crores from the Income Tax Department. The petition challenged an order dated Aug. 23, 2024, issued by the Deputy Commissioner of Income Tax, which raised the demand. The issue stems from allegations that Hindustan Unilever failed to comply with the income tax provisions, which mandate tax deduction at source for purchasing a trademark registered in India. The company acquired the rights to the health food drink brand Horlicks from GlaxoSmithKline Plc. for over Rs 3,000 crore in 2020.
Bombay High Court Denies Hearing Hindustan Unilever’s Challenge Against Tax Demand On Horlicks Acquisition
Motilal Oswal Initiates Coverage On India Power Cos
Motilal Oswal has assigned a 'buy' on Power Grid, JSW Energy, Tata Power, NEUTRAL on NTPC, IEX. It said it likes Power Grid's Bellwether play on Rs 2 lakh crore transmission opportunity, JSW Energy's execution, asset turnaround, robust balance sheet are key differentiators vs. peers and Tata Power's Lower earnings volatility gives scope for re-rating.
For NTPC, NTPC Green's IPO to give limited upside, the brokerage said and for IEX, the potential implementation of market coupling is a key regulatory overhang.
Emkay Initiates Coverage On GMR Power With 'Buy'
Target assigned by Emkay is Rs 180, implying 20% upside. Bull case target price set at Rs 205, implying 38% upside
The brokerage said that healthy earnings visibility on core is generating assets to support deleveraging efforts and 7.5 million smart meter contract opens up lucrative asset-light business opportunity with Bosch.
Key risks to Emkay's call are project execution, policy, resource availability, credit.
China To Cut Banks' Reserve Requirement Ratio
PBOC Pan
China’s central bank has announced a sweep of support for the economy, as pressure mounts on authorities to unleash stimulus and hit this year’s growth target of around 5%. China will help banks boost lending to consumers, cut its key short-term interest rate, and lower the mortgage rate for existing housing loans, central bank governor Pan Gongsheng said Tuesday at a briefing in Beijing.
Source: Bloomberg
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Trading Tweaks
Price Band of E-pack Durable has been changed from 20% to 10%and that of Nectar Lifesciences from 10% to 5%.
Shares of Kaveri Seed will trade Ex/record AGM. Those of Concord Biotech, Crest Ventures, Dhanuka Realty have moved into short term ASM and NELCO, Rane (Madras) have moved out of short term ASM.
Block And Bulk Deals Happened Monday
Through a block deal inCapacite Infraproject, Rahul Ramnath Katyal sold 3.75 lakh shares (0.44%) and Subir Malhotra bought 3.75 lakh shares (0.44%) at Rs 396 apiece. In V2 Retail, India 2020 Fund LI sold 7.34 lakh shares (2.12%) and Motilal Oswal Mutual Fund bought 7.34 lakh shares (2.12%) at Rs 1,160 apiece through a block deal.
Through bulk deal inSenco Gold, Oman India Joint Investment Fund sold 5.89 lakh shares (0.75%) at Rs 1,280.16 apiece and ICICI Prudential Life Insurance bought 4.9 lakh shares (0.63%) at Rs 1,280 apiece. Alicon Castalloy's bulk deal hadSBI Mutual Fund buying 3.72 lakh shares (2.29%), Rajeev Sikand sold 2 lakh shares (1.22%) and Pamela Trading LLP sold 1.59 lakh shares (0.97%) at Rs 1,300 apiece.
Wardwizard Innovations & Mobility, BCL Industries, BLS E-Services, HLV, Kamdhenu Ventures, Sky Gold, VIP Industries also saw shares change hands through bulk deals on Monday.
Power Grid Wins Bid For Khavda Transmission System
New Listing
Shares of WesternCarriers (India) will debut on the stock exchanges on Tuesday at an issue price of Rs 172 apiece, Arkade Developers at anissue price of Rs 128 apiece, and Northern Arc Capital at an issue price of Rs 263 apiece.
IPO Offering
Manba Finance will open for subscription for a second day.The public issue was subscribed to 23.79 times on day 1. The bids were led by non-institutional investors (43.18 times), qualified institutional investors (2.36 times), and retail investors (27.71 times).
SEBI Approves IPOs Of Waaree Energies, One Mobikwik Systems
Stocks To Watch
Shares ofPunjab National Bank, Reliance Power, Thangamayil Jewellery, and Pondy Oxides and Chemicals will react to the news of fund raise.
Those of Power Grid Corp. are likely to rise as company emerged as a successful bidder for the Khavda project to establish an interstate transmission system. Similarly Coal India, company entered into a 74-26 JV pact with Rajasthan Rajya Vidyut Utpadan Nigam for a 2×800 MW brownfield thermal project.
Mahindra & Mahindra's shares will react after itsaddressed reports about considering a purchase of Skoda Auto VW India, stating that it and the VW Group are actively exploring various opportunities for collaboration.
Shriram Properties might fall as an FIR has been filed against a former Tamil Nadu Minister, accusing him of being involved in Rs 28 crore payments made in 2016 related to Shriram Properties and Infra, now known as Gateway Office Parks.
GR InfraProjects will rise as it got order forNagpur metro construction work worth Rs 904 crore.
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Punjab National Bank Launches QIP To Raise Up To Rs 7,500 Crore
GIFT Nifty At 26,000; PNB, Reliance Power, G R Infraprojects, M&M, Power Grid In Focus
September futures contract of the GIFT Nifty was at 25,996.50, down by 1.5 points as of 06:55 a.m. In Tuesday's session, shares of G R Infraprojects Ltd., Mahindra & Mahindra Ltd. and Power Grid Corp. could remain in focus due to news flow. Investors will look forward to the Nifty hitting psychologically crucial 26,000 mark.
Indian equities will also track indices in Asia-Pacific, which rose on Tuesday taking cues from the overnight rise in US stocks. Investors in the region will monitor the rare briefing by the People's Bank of China, along with the Reserve Bank of Australia's policy decision, due to be published later today.
The Nikkei 225 was trading 548.79 points, or 1.45% higher at 38,272.70, and the Kospi was up 9.71 points, or 0.37% at 2,611.72 as of 06:27 a.m.
On Friday, the S&P 500 and Nadaq Composite ended 0.28% and 0.14% higher, respectively.
The November contract of the brent crude was trading 0.26% higher at $74.09 per barrel on Intercontinental Exchange as of 06:31 a.m. The Bloomberg spot Gold was 0.10% lower at $2,626.16 as of 06:33 a.m.
The NSE Nifty 50 and S&P BSE Sensex settled at the highest closing level for the third consecutive session in a row, as Bharti Airtel Ltd. and HDFC Bank Ltd. led gains. The indices rose to new intraday highs for four days in a row.
The Nifty 50 ended 148.10 points, or 0.57% higher, at 25,939.05. The Sensex closed up 384.30 points, or 0.45% at 84,928.61.
Overseas investors stayed net buyers of Indian equities on Monday for a second day.
Foreign portfolio investors mopped up stocks worth Rs 404.42 crore, while domestic institutional investors turned net buyers after a day of selling and purchased equities worth approximately Rs 1,022.64 crore, the NSE data showed.
The Indian rupee ended flat against the US dollar at 83.54 on Monday, according to Cogencis.
Trade Setup For Sept. 24: Nifty Looks Bullish With Key Support At 25,850. Read more on Markets by NDTV Profit.