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India’s foreign exchange reserves continued to rise for a sixth straight week to a record high of $692.3 billion as of Sept. 20, data from the central bank showed on Friday.

The reserves rose by $2.84 billion in the reporting week, after having risen by a total of $19.3 billion in the prior five weeks.

Changes in foreign currency assets are caused by the Reserve Bank of India’s intervention in the foreign exchange market as well as the appreciation or depreciation of foreign assets held in the reserves.

The RBI intervenes on both sides of the forex market to prevent undue volatility in the rupee.

In the period for which the forex reserves data pertains, the rupee had logged its best week of 2024, aided by a larger-than-usual 50-basis-point rate cut by the U.S. Federal Reserve as well as inflows into local stocks and bonds.

The rupee had jumped to a more-than-two-month-high of 83.4850 last week and gained nearly 0.4% week-on-week.

Forex reserves also include India’s reserve tranche position in the International Monetary Fund.

The domestic currency settled at 83.70 on Friday, and slipped 0.1% week-on-week.

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Shares of Sequent Scientific Ltd, which is in animal health business, rose over 12 percent on September 27 after it announced Rs 8,000-crore merger with Viyash Life Sciences.

The Carlyle Group portfolio companies announced the swap ratio for the merger. Viyash shareholders to get 56 equity shares of Sequent for every 100 Viyash equity shares and Sequent will be the surviving listed entity once the scheme is effective.

The rationale for the merger is to “build a unique, differentiated, global end-to-end integrated platform with leadership in animal pharmaceuticals, supported by strong operating and R&D backbone”, said the companies in an investor presentation.

Viyash has 10 manufacturing plants, including one in New Jersey, US. It is a manufacturer of active pharmaceutical ingredients (APIs) and formulations for drugs in the human health segment.

The companies said the merger will “create an integrated business with a strong in-house R&D and manufacturing platform with strengthened supply chain – Combined entity to have 5x higher manufacturing capacity, 6x larger R&D team size, 9x higher number of USFDA facilities and 8x higher new product filings potential. Turbocharge growth engines to solidify market leadership in animal health market. Opportunity to capture growth in the broader global pharmaceuticals market”.

Sequent Scientific posted revenue of around Rs 1,400 crore in FY24 and had EBITDA of Rs 100 crore. It has seven manufacturing sites in India, Spain, Brazil and Turkey.

“We are thrilled to announce a transformative step in our journey towards creating a unique, differentiated global leader in animal health with integrated capabilities,” said Sequent’s chief executive officer, Rajaram Narayanan.

Narayanan said the merger would help build Sequent’s research and development capabilities.

“We believe that in order to continue to deliver differentiated value to our customers in times to come, it is imperative to scale up our product development and R&D capabilities to capture the market opportunity we are seeing and to build on our leadership in the animal health market.”

Viyash’s founder Haribabu Bodepudi who was formerly the chief operating officer of global drug major Mylan (now known as Viatris) hailed thecombination.

“This merger brings together two complementary businesses that share a commitment to innovation, operational excellence, and delivering world-class solutions for our customers”, said Haribabu Bodepudi, who currently officiates as Viyash’s chief executive officer.

At Thursday’s closing price the value of the combined entity with the expansion in its capital base will be around Rs 8,192 crore.

Viyash is already a qualified supplier for intermediates to Sequent for one of the largest active pharmaceutical ingredients (API) that Sequent manufactures for the US market, as per the disclosure.

The combined entities will have 16 manufacturing plants out of which 10 are US
Food and Drug Administration approved plants.

JM Financial acted as the financial advisor to Sequent.

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Shares of Suzlon Energy Ltd. have been downgraded by brokerage firm Morgan Stanley to “equalweight” from its earlier rating of “overweight.”

However, the brokerage has raised its price target on the wind energy solutions provider to ₹88 per share from ₹73 earlier. The revised price target still implies a potential upside of 8% from Thursday’s closing levels.

Morgan Stanley wrote in its note that Suzlon’s shares have doubled in value over the last six months, having risen 10-6% and outperforming the Nifty 50 index by 78 percentage points.

Suzlon’s outperformance was driven by the strong increase in order book and its improved balance sheet along with cash flows from operations. Suzlon’s order book is now at an all-time high, near the mark of 5 GW.

The brokerage has maintained that Suzlon continues to be a strong beneficiary of India’s wind energy growth story amidst benign competition and has the potential to increase its market share to between 35% and 40% going forward.

Ordering activity in the renewable energy space remains strong and Morgan Stanley is expecting 32 GW of new orders over financial year 2025-2030.

“Suzlon has been prudent in taking up orders and the same is also reflected in its high share of C&I and captive customers and the large order from NTPC. But it cannot be completely insulated on execution risks, which are system-related or client specific,” Morgan Stanley wrote in its note.

The acquisition of Renom by Suzlon provides the company an entry into the new multi-brand O&M business and Morgan Stanley is awaiting customer sign ups in this business, which will add to Suzlon’s earnings growth.

However, post this recent run-up, Morgan Stanley sees Suzlon’s risk-reward as more balanced and now wants to see stronger execution as compared to its base case before it turns more constructive on the stock again.

Post the downgrade, only two out of the five analysts who have coverage on Suzlon Energy have a “buy” rating on the stock, while the other three have a “hold” recommendation. Despite the downgrade, Morgan Stanley’s price target on Suzlon is the highest on the street.

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Shares of Vedanta Ltd rose over 5% on Thursday after the metal and mining firm said its board would consider fourth interim dividend for FY25 on Tuesday, October 8. Vedanta stock rose 5.24% to Rs 504.75 in the afternoon session against the previous close of Rs 479.60 on BSE. Market cap of the firm climbed to Rs 1.96 lakh crore. A total of 14.38 lakh shares of the firm changed hands amounting to a turnover of Rs 70.82 crore on BSE.

Vedanta shares have a one-year beta of 1.2, indicating high volatility during the period.  In terms of technicals, the relative strength index (RSI) of Vedanta stands at 63.9, signaling the stock is trading neither in the oversold nor in the overbought territory.

Vedanta has fixed Wednesday, October 16, as record date for the purpose of determining the entitlement of the equity shareholders for the said dividend, if declared.

In terms of returns, the stock gained 95% in 2024 and rose 124.35% in a year. In five years, the stock has risen 202%. The large cap stock is trading higher than the 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages signaling the stock is trading in bullish zone.

On September 2, Vedanta announced the third interim dividend of Rs 20 per share for FY25, with September 10 as the record date. Earlier, the Anil Agarwal-led company announced interim dividends of Rs 4 per share and Rs 11 per share, respectively. Vedanta has already announced dividends worth Rs 35 per share for FY25. Promoters owned 56.38 per cent stake in Vedanta as on June 30.

Vedanta Ltd is a subsidiary of Vedanta Resources Ltd and has operations in oil and gas, zinc, lead, silver, copper, iron ore, steel, and aluminium and power across India, South Africa and Namibia.

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ITC share price gained nearly a per cent on Thursday, September 26 to hit a record high of ₹522.50 on BSE, with its market capitalisation crossing ₹6.5 lakh crore for the first time. 

The hotels-to-FMCG conglomerate ITC on September 25 announced that it has been allotted 1,413 Compulsorily Convertible Preference Shares of Sproutlife Foods Private Ltd.

The preference shares of Sproutlife have been acquired pursuant to a follow-on investment in terms of the Securities Subscription & Purchase Agreement and the Shareholders Agreement executed on 19th April, 2023 to acquire 100% of the share capital (on a fully diluted basis) of Sproutlife in one or more tranches.

With the acquisition of 1,413 CCPS, ITC’s shareholding in Sproutlife aggregates to around 47.50% of its share capital at a total investment of ₹255 crore.

“The acquisition is in line with the strategy to augment the Company’s future ready portfolio in the foods segment,” ITC said.

Sproutlife is a start-up engaged in the business of manufacturing and selling food products under the trademark ‘Yoga Bar’. It currently has high salience of on-line sales (D2C, e-commerce platforms etc.) with growing presence in offline stores.

ITC stock price has seen a gradual upmove as it has risen nearly 22% in the past three months. The stock has gained over 12% year-to-date (YTD), while it is up more than 17% in the past one year.

Analysts are bullish on ITC shares as long as they remains above the psychological mark of ₹500 level.

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