Month: December 2024

Shares of newly-listed NTPC Green Energy Ltd soared over 9% in trade on Wednesday, December 4, after hitting the 10% upper circuit in the previous session.

On the National Stock Exchange of India (NSE), the NTPC Green Energy stock touched its record high of ₹155.35 on Wednesday, which was almost 44% higher than its initial public offering (IPO) price of ₹108 per share.

The renewable energy stock listed on exchanges on November 27 at ₹111.5 apiece, which is a premium of just 3.2% over the issue price.

The investors, who were allotted at least a single lot of 138 shares in the NTPC Green Energy IPO, would have made a profit of ₹6,534 at today’s intraday high price over the minimum investment of ₹14,904.

Key triggers behind stock rally

The rally in the stock post-listing has been seen amid a positive sentiment among investors. Market observers see a potential rise in stock price due to the company’s strong fundamentals and strong position within the green energy sector.

According to a CRISIL report, NTPC Limited’s renewable energy arm is the largest renewable energy PSU in terms of operating capacity as of September 30, 2024. The company’s renewable energy portfolio includes solar and wind power projects spread across multiple states.

Green energy stocks are also in focus ahead of the Reserve Bank of India’s Monetary Policy Committee meeting, which is scheduled from December 4 to December 6. According to experts, the RBI and other regulators are likely to issue guidelines on green lending. The government framework on green lending is likely to incentivise solar investments, experts predict.

The NTPC Green Energy IPO opened for subscription on November 19 and closed on November 22. It aims to raise ₹10,000 crore through a fresh issuance of shares.

The purpose of the issue was to raise money for NTPC Green Energy’s wholly-owned subsidiary, NTPC Renewable Energy Ltd (NREL), for repayment/prepayment of certain outstanding borrowings availed by the unit.

Despite creating a lot of buzz in the market, the NTPC Green Energy IPO was oversubscribed by just around 2.55 times, with the non-institutional investors (NIIs) category remaining undersubscribed at 85%.

Muted demand by NIIs showed its effect on the stock in the form of a tepid listing a few days later. However, the share price has increased after the listing amid upbeat investor/trader sentiments.

NTPC Green Energy, a ‘Maharatna’ central public sector enterprise, is an umbrella company for the green business initiatives of state-run NTPC Ltd and undertakes projects through organic and inorganic routes. It aims to be the flag-bearer of NTPC’s green energy journey to achieve the ambitious target of 60 GW by 2031-32. The company posted a revenue of ₹2,037.66 crore in 2023-24, while profit after tax stood at ₹344.72 crore.

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Reliance Power shares rose 5% to hit an intra-day high of Rs 41.09 on Wednesday after the Solar Energy Corporation of India withdrew the debarment notice issued to the Anil Ambani-led company for applying for tenders in the renewable space. This enables Anil Ambani’s firm to participate in future tenders. 

On November 6, SECI in an initial notice debarred Reliance Power and Reliance NU BESS from participating in any of its tenders for three years for allegedly submitting “fake documents”.

“Following the legal proceedings related to this matter, it is hereby notified that the Debarment Notice issued to M/s Reliance Power Limited has been withdrawn, with immediate effect. This withdrawal is without prejudice to SECI’s right to take all actions in accordance with the law. Accordingly, the public notice dated 06.11.2024, stands modified to the limited extent as above,” read a notice by SECI. 

Reliance Power in Q2 

Reliance Power posted a consolidated net profit of Rs 2,878.15 crore in Q2 FY25 against a net loss of Rs 237.76 crore in the same quarter a year ago. The total income of the company dipped by 7.2% on year to Rs 1,962.77 crore in the July-September quarter of the current financial year, compared to  Rs 2,116.37 crore in the same period a year ago.

Reliance Power Vs Nifty 50

The stock of Reliance Power has risen 5.2% in the last five trading sessions. However, the stock has fallen 6.8% in the last one month and 60% in the previous six months. The stock has risen 72% from year to date and 96% in the last one year. 

On the other hand, compared with the benchmark index, Nifty 50 has risen 0.7% in the last five trading sessions. It has risen 1.9% in the last one month and almost 12% in the past six months. The index has given a return of 12.5% from year to date and 18% in the last one year.

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The Indian rupee declined to a lifetime low on Tuesday, pressured by the U.S. dollar’s rally against its major peers and on concerns over the Asian country’s slowing growth rate.

The rupee dipped to a record low of 84.7425 against the dollar, inching past its previous all-time low of 84.7050 hit on Monday. Its Asian peers were mostly weaker, with the offshore Chinese yuan dropping to its lowest in a year, while the dollar index rose to 106.50 on back of weakness in the euro.

The decline in the rupee from 84.50 to the current level “has been without much resistance, relatively speaking”, a currency trader at a bank said.

“The price action suggests that either the Reserve Bank of India’s (RBI) intervention has been comparatively mild or that the underlying dollar demand is too much. Either way, it is a worrying sign (for the rupee),” the trader said.

The rupee declined by 0.25% on Monday in the wake of India’s disappointing GDP data. This is the currency’s biggest percentage fall in six months.

The extent of the rupee’s decline, while broadly in line with Asian peers, was a surprise for bankers and corporates considering that the RBI over the last several months has been persistently intervening to hold up the currency at key levels.

India’s weak GDP growth will likely further dent portfolio investor sentiment, Dhiraj Nim, an FX strategist and economist at ANZ, said in a note.

The country’s “inferior macro configuration” alongside the recent decline in the RBI’s FX reserves sharply suggest that a “weakening path for the rupee looks inevitable”, he said.

India’s foreign exchange reserves have dropped for eight straight weeks to fall to their lowest in five months.

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Shares of HDFC Bank jumped 1.8% to hit a record high on Tuesday, December 3. The market capitalisation of the private lender also crossed ₹14 lakh crore.

The stock surged 1.81% to ₹1,837.40 per share, its all-time high level, on the National Stock Exchange.

At 11:36 am, HDFC shares were up 1.67% to ₹1,834.75. The market capitalisation stood at ₹14,02,287.40 crore.

The scrip rose 16.9% in the last six months and 7.2% year-to-date.

HDFC Bank share price: What’s driving the rally?

This development follows a block deal in which 21.7 lakh equity shares worth around ₹392 changed hands. The details of the parties involved were not immediately known.

The increase in weightage of HDFC Bank in the MSCI indexes also contributed to the stock’s robust performance.

HDFC Bank had posted a 5% rise in its standalone net profit to ₹16,821 crore in the quarter ended September 2024, compared to ₹15,976 crore post-tax profit in the year ago period.

The total income jumped ₹85,500 during the quarter under review, reflecting a 9% increase from ₹78,406 crore in the same period last year.

The bank’s interest income climbed 9.3% to ₹74,017 crore in the second quarter of the financial year 2024-25 from ₹67,698 crore in the corresponding period previous fiscal.

Meanwhile, benchmark indices NIFTY and SENSEX rose on Tuesday amid surges in heavyweights like Reliance, L&T, State Bank of India, and Axis Bank, in addition to HDFC Bank.

The SENSEX climbed 566 points to 80,815, while NIFTY jumped 66% to 24,436.

The biggest gainers from the 50-share NIFTY pack were Adani Ports, Adani Enterprises, UltraTech Cement, Cipla, and ONGC.

ITC, Trent, HDFC Life, Bharti Airtel and Tata Consumer Products were among the laggards.

In Asian markets, Tokyo, Shanghai, Seoul and Hong Kong were trading higher.

On Monday, US markets ended mostly in the positive territory.

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Shares of Godrej Properties rallied as much as 2.3% to ₹2,968.55 apiece on the BSE on Tuesday, December 3, a day after the company said it has raised ₹6,000 crore by selling shares to institutional investors on a qualified institutional placement (QIP) basis as it looks to expand business amid strong demand for residential plots and apartments.

Last week, the company launched its QIP issue to raise up to ₹6,000 crore.

In a regulatory filing on Monday, Godrej Properties informed that the board’s QIP Placement Committee approved the closure of the issue on Monday.

The panel approved the issue price of ₹2,595 per equity share, which is at a discount of ₹132.44 (4.86% of the floor price) to the floor price of ₹2,727.44 per equity share.

The committee also approved the allocation of 2,31,21,387 equity shares to be allotted to eligible qualified institutional buyers.

Godrej Properties is one of the leading developers in the country. It has a major presence in Delhi-NCR, the Mumbai Metropolitan Region (MMR), Pune, and Bengaluru. It has entered the Hyderabad market recently.

Godrej Properties Q2 FY25 Results

The realty firm reported a five-fold jump in its consolidated net profit to ₹335.21 crore for the quarter ended September 30, 2024 (Q2 FY25) on higher income.

Its net profit stood at ₹66.80 crore in the year-ago period.

Total income more than doubled to ₹1,346.54 crore in the second quarter of this fiscal year from ₹605.11 crore in the corresponding period of the previous year, according to a regulatory filing.

In November, Godrej Properties said its net debt rose 2% during the September quarter to ₹7,572 crore, with the company focusing on land acquisition for future growth.

Its net debt stood at ₹7,432 crore at the end of the June quarter, according to an investors’ presentation.

Godrej Properties has been actively purchasing land and also partnering with landowners to create a pipeline for future development of projects.

During the last fiscal year, the company’s sales bookings jumped 84% to a record ₹22,527 crore, the highest among listed realty firms in 2023-24.

It has set a target of ₹27,500 crore worth of sales bookings for the current financial year.

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