Power stocks rallied on Tuesday after the Power Ministry mandated that imported coal based plants will be run at full capacity ahead of peak summer demand. Adani Power was locked in 5% upper circuit while other power stocks like NTPC, Tata Power, NHPC and Powergrid were 2% to 4% higher. Even Siemens and IEX rallied by 3% during the day. All power plants have been asked to operate at full capacity to meet peak summer demand of 229 GW in April, even if they operate on imported coal. Thermal has to fill up 85%.
Joyalukkas, a leading Indian jewellery chain, has withdrawn its proposed Rs2300 crore IPO, as per details on the SEBI website. Joyalukkas is based out of Kerala and operates in 68 cities in India apart from a strong presence in the GCC. Nearly 60% of the IPO funds were to be used for repayment of debt. Edelweiss and Motilal Oswal were the book running lead managers to the issue. India is the second largest market for gold and a large chunk of the gold is imported from other countries to meet domestic jeweller demand.
It looks like Indian F&O markets may also eventually move to longer trading hours with NSE starting off with the interest rate futures on a test basis. Indian commodity markets have been operating for long hours since a number of years. NSE is apparently looking to extend trading time from 3.30 PM to 5.00 PM. More details are awaited. An extended market will give more scope for players from other markets to hedge their India risk, without exposing themselves to overnight risk. SEBI has already approved the move.
SEBI plans changes to the extant governance norms for listed entities. This is likely to give more rights to shareholders, while enforcing higher corporate disclosures. One of the key provisions of the new rule book is to force company managements to disclose any shareholder agreement with listed entities that impose restrictions on companies. Such agreements will need prior shareholder approval now. Approval of the shareholders will also be needed for granting any special rights to certain promoter shareholders.
Banks are trying to increase the share of low-cost current account savings account (CASA) deposits. This is to prepare for the compression in net interest margins (NIMs) as the cost of deposits catches up with the lending yields in the medium term. Banks will also focus more on customers who are less sensitive to changes in interest rates. Ironically, the demat patterns are also changing. For instance, customers are looking to see what benefit they can get when they lock in deposits, and that is the challenge for CASA.
An independent study has confirmed that India needs investments of Rs33,750 crore to achieve the PLI target set by the government of 50 GWh of lithium-ion cell and battery manufacturing plants. In all, by the year 2030, India needs almost 903 GWh of energy storage to decarbonise its mobility and power sectors. During this period, the lithium-ion batteries will meet most of this demand. Lithium is a non-ferrous metal and a key component in EV batteries. India must indigenize lithium-ion battery production.
Phillip Capital upgraded Ambuja Cement stock to “Buy” on the back of its strong Q4 performance and the better efficiencies engendered with the Adani group merger. The buy call has come specially after the recent stock price correction. Phillip Capital has also reminded investors that Q4 numbers of Ambuja Cements were only partially representative of efficiency roll-out that can happen due to the takeover. They expect Ambuja, post Adani takeover, to become the most efficient cement manufacturer in India.
Income Tax department is conducting raids at Uflex Limited, a leader in flexible packaging solutions in India. The IT department has reportedly conducted raids at 64 locations across India. While details are awaited, these raids pertain to large cash transactions done by the company, raising fears of laundering of funds. These allegations pertain to the ongoing coal levy money laundering case. Apart from some of the residential premises of the promoters, the offices of Uflex across the country too have been searched.