Indian equity markets are likely to open on a tepid note on Tuesday as early trends on SGX Nifty hinted at a flat start for benchmarks Sensex and Nifty, with a loss of 7 points. The Nifty futures were trading around 18,343 level on the Singaporean Exchange. Markets continued rangebound movement on Monday but ended on positive note with Nifty above 18,300. “Markets have recovered from its low and it is sustaining well above 18k mark over last couple of days. Q3 result season has started on a good note with several heavy weights reporting in-line to better-than-expected numbers. Nifty is trending upwards while Bank Nifty is witnessing some consolidation and a pause in its momentum. Traders are advised to apply buy-on-decline strategy and be with stock specific ideas. From a near term perspective, we expect stock specific action in selected auto, tech , chemicals and fertilizer stocks,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services Ltd.
Stocks to watch
NTPC: State-owned NTPC on Monday invited a request for proposal (RFP) for raising up to $750 million (around Rs 5,570 crore) via ECB to fund its power projects, including renewable energy. “NTPC Ltd is looking to raise external commercial borrowing (ECB) in the form of a term loan amounting to $500 million plus green shoe option of $250 million… accordingly it is requested to quote unconditional and firm rate for raising ECB,” the RFP document stated.
Tech Mahindra: The company on Monday announced acquisition of 100 per cent stake in Europe-based Com tec Co IT (CTC) and 25 per cent stake in two IT platforms for a total of EUR 330 million (about Rs 2,800 crore). The acquisitions will strengthen its digital engineering and insurance technology businesses, said Tech Mahindra. The acquisition of CTC is the second-largest acquisition that the tech company has made after scam-hit Satyam in April 2010.
TCS: Shares of Tata Consultancy Services (TCS) hit an all-time high of Rs 4,038.40, up 1.7 per cent on the BSE on Monday. The company has announced a mega share buyback of Rs 18,000 crore (40 million shares at Rs 4,500 per share). In the current round, out of 4 crore shares set for buyback, 60 lakh will be reserved for small investors. Aside from anticipated strong response in the current buyback, performance of the share from the buyback announcement date to the buyback date in past rounds suggests robust gain for TCS investors.
L&T: The heavy engineering arm of Larsen & Toubro (LT) has flagged off five critical renewable diesel reactors to North America’s largest renewable diesel producer Diamond Green Diesel (DGD), two weeks ahead of the delivery date. DGD is a joint venture of Darling Ingredients Inc. and Valero Energy Corporation in Texas, US. L&T is executing additional three such green diesel projects for the US and European clients at its heavy engineering complex located at Hazira in Gujarat.
Tata Power: Tata Power Renewable Energy Limited (TPREL) on Monday said that it has commissioned two Solar Power projects of 50 MW each at Prayagraj, and Banda in Uttar Pradesh. The projects have been completed by TPREL, 100% subsidiary of Tata Power. The plants are expected to generate over 221.26 million units annually.
Bajaj Finance: Bajaj Finance is expected to report a good set of numbers for Q3FY22. Comoany’s assets under management (AUM) jumped 26% YoY and 8% QoQ to Rs 1.8 trillion amid the strong festive season, pent up demand, low interest rates and normal monsoon. The company booked 7.4 million new loans in the quarter, up from 6 million in the same quarter of the previous year. Deposits grew 26.2% YoY to Rs 30,000 crore during the quarter. Bajaj Finance is well-oiled for growth with a capital adequacy ratio (CRAR) of 27% and a consolidated liquidity surplus of Rs 14,300 crore as on December 31, 2021. Net interest margin is likely to improve on the back of rising share of high-yielding loans and moderating liquidity, according to IIFL Securities.
Coffee Day Enterprises: DSP Investment Managers sold 28,26,540 equity shares in the company at Rs 70.2 per share on the NSE, according to the bulk deals data.