Key economic indicators
Actual on 16:00 on December 18
World economic indicators
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Stocks
|
Change
|
|---|---|
|
🇮🇳 Nifty
|
- 0.5%
|
|
🇮🇳 Sensex
|
- 0.55%
|
|
🇮🇳 India VIX
|
- 0.72%
|
|
🇺🇸 S&P 500
|
+ 0.21%
|
|
🇺🇸 Nasdaq
|
+ 0.22%
|
|
🇺🇸 Dow Jones
|
+ 0.32%
|
|
🇪🇺 Euro Stoxx
|
+ 0.31%
|
|
🇨🇳 China A50
|
+ 0.4%
|
|
🇨🇳 DJ Shanghai
|
+ 0.7%
|
|
🇬🇧 FTSE 100
|
+ 0.03%
|
|
🇯🇵 Nikkei 225
|
- 0.73%
|
|
🇮🇩 IDX Composite
|
- 0.7%
|
|
🇸🇦 Tadawul All Share
|
+ 0.1%
|
Top Gainers on Indian Stock Market
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Stocks
|
Change
|
|---|---|
|
Kfin Technologies
|
+ 7.43%
|
|
Concord Biotech
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+ 5.84%
|
|
Mankind Pharma
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+ 5.34%
|
|
K P R Mill
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+ 5.04%
|
|
Eid Parry India
|
+ 4.93%
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Top Losers on Indian Stock Market
|
Stocks
|
Change
|
|---|---|
|
Deepak Fertilisers & Petrochemicals Corporation
|
- 6.89%
|
|
Piramal Enterprises
|
- 6.3%
|
|
NMDC
|
- 6.09%
|
|
PVR Inox
|
- 5.73%
|
|
Bayer Cropscience
|
- 5.34%
|
News
Mamata Machinery IPO: A Hot Ticket with a 61% Grey Market Buzz
Mamata Machinery Limited is stealing the spotlight ahead of its public issue, raking in ₹53.55 crore from anchor investors. The company has sealed the deal with 22.04 lakh equity shares at ₹243 each, according to its latest exchange filing. Big names like 3P India Equity Fund, Authum Investment, and Subhkam Ventures headline the anchor investor lineup, with allocations that hint at strong institutional confidence. With a grey market premium (GMP) at ₹150 per share, up from ₹111 just a day ago, Mamata Machinery’s shares are expected to debut on Dalal Street at ₹393—an eye-popping 61.73% premium over the upper price band. With a post-issue market cap of ₹5,979 million, a P/E of 16.6x, and a robust 27.4% return on net worth, the IPO looks competitively priced against peers. In simple terms, Mamata Machinery’s IPO isn’t just another listing—it’s shaping up to be a standout play for investors looking to ride the momentum. Whether you’re into numbers or market sentiment, this one’s got something for everyone.
Government Pulls Duty-Free Plug on Solar Imports
In a major shakeup for the solar power sector, the government has axed a key provision allowing duty-free imports for solar power generation. Starting December 17, solar modules brought into India will no longer benefit from the Manufacturing and Other Operations in Warehouse Regulations (MOOWR), which previously enabled businesses to import and store goods without immediate customs duty payments. The MOOWR scheme, introduced in 1996 and overhauled in 2019, allowed companies to operate customs-bonded warehouses, where imported goods could be processed, manufactured, or even exported—all without paying customs duty upfront. For solar modules, this meant avoiding a hefty 40% basic customs duty on modules and 25% on cells. But that’s history now, following the latest notification from the Central Board of Indirect Taxes and Customs (CBIC). For solar plants operating under Power Purchase Agreements (PPAs) that don’t account for tariff adjustments due to regulatory changes, the financial burden could be severe. These operators might see profitability dwindle as cash flows tighten and project costs escalate.
ITC Tightens Grip on Hospitality
ITC Ltd is making waves in the hospitality world as it consolidates stakes in rivals Oberoi and Leela while gearing up for its much-anticipated hotel business demerger in January 2025. The Kolkata-based conglomerate announced on Wednesday that it has acquired additional shares in EIH and HLV Ltd from its wholly-owned subsidiary, Russell Credit Ltd. The deal gives ITC a 16.13% stake in EIH and 8.11% in HLV, strengthening its foothold in India’s luxury hotel sector. The acquisition was made at book value, and ITC’s board had greenlit this consolidation back in October. ITC Hotels is set to become a standalone entity, with January 6, 2025, marked as the record date for ITC shareholders to receive equity shares in the new company. The new entity will take over ITC’s robust hospitality portfolio, which includes premier brands like Bay Islands Hotels, Srinivasa Resorts, and Fortune Park Hotels. While ITC’s shares saw a modest uptick, closing at ₹470.65 on the BSE (up 0.17% on Wednesday), the strategic realignment signals bigger opportunities for investors. By creating a focused entity for its hospitality business, ITC aims to unlock value for shareholders while streamlining operations.
Private Equity Stays Flat, While VCs Soar in Public Market Exits
This year’s public market exits painted contrasting pictures for private equity (PE) and venture capital (VC) firms. VC firms surged ahead, raking in $4.06 billion till November—double their previous year’s earnings—while PE firms stayed flat at $13.3 billion. Blackstone’s $808 million exit from Mphasis played a crucial role in keeping PE numbers steady; without it, their figures would have dipped below last year’s. Over the past five years, the consistency in PE exits reflects a strong appetite among public market investors. One of the standout PE deals this year was Blackstone’s June sale of a 15% stake in IT services giant Mphasis, reducing its holding to 40%. Other notable transactions included Peak XV, Norwest, and TPG Capital divesting 11% of Five Star Business Finance for $536 million, and Warburg Pincus cashing out its 9.17% stake in Kalyan Jewellers India for $451 million. VC firms seized the momentum of a thriving IPO market and managed to rake in $4 billion and outpaced the funding boom of 2021 when VCs earned $3.3 billion. Nearly 90% of PE exits this year came from bulk or block deals, while IPO-driven exits climbed slightly to 16% from 11% last year.
Premier Explosives Soars on Joint Venture Deal in Defence & Aerospace
Premier Explosives shares shot up by a solid 10% upper circuit to ₹567 in early trading on Monday, December 16, the company has signed an MoU with Global Munition Limited, a subsidiary of NIBE Ordnance and Maritime, to create a joint venture focused on defence and aerospace manufacturing. In another significant move, Premier Explosives bagged a substantial ₹89.20 crore order from Singareni Collieries for supplying a range of explosives and accessories over the next two years. Premier Explosives is deeply embedded in India’s defence and space initiatives, producing solid propellants for missiles like Astra, Akash, and Agni, along with pyrotechnic devices and countermeasures. Its contributions to ISRO are equally notable, as it supplies key materials for satellite launch vehicles.
Welspun One Aims to Double Portfolio
Welspun One is making bold moves to capitalize on India’s booming logistics landscape, announcing plans to raise ₹4,000 crore to expand its portfolio from 16 million square feet to a whopping 32 million by 2028. Welspun One revealed active discussions for financial and strategic partnerships at the General Partner (GP) level. These alliances, the company says, will unlock global best practices, cutting-edge technologies, and blue-chip tenant networks for its platform. For investors, it’s not just about returns but gaining a foothold in one of the world’s fastest-growing logistics markets. India’s rapid urbanization, digitalization, and shifting trade corridors are reshaping its logistics sector, and Welspun One is positioning itself at the heart of this transformation. Welspun One has already committed 75% of its ₹2,275 crore Fund 2 within six months of its final close, returning 40% of Fund 1 capital through two lucrative exits. With a goal to hit $1 billion in assets under management across 16 Grade A projects by 2026, it’s clear the strategy is as focused as it is aggressive.
VA Tech Wabag Slides 19% After Saudi Order Cancellation, But Long-Term Gains Hold Strong
VA Tech Wabag shares tumbled over 19% in early trade on December 18 after the company revealed that a massive ₹2,700 crore ($317 million) order for a 300 MLD Mega Sea Water Desalination Plant in Saudi Arabia was cancelled. The project, announced in September 2024, was shelved by the Saudi Water Authority due to “internal administrative procedures,” as per the company’s filing. The news sent shockwaves through the market, dragging the stock to a low of ₹1,522.30 on the BSE, a 19.17% dip. By mid-morning, it had recovered slightly, trading at ₹1,585.10, still down 15.31%. Despite today’s slide, VA Tech Wabag has delivered multibagger returns, skyrocketing 157% in the last year. Its order book remains robust at ₹14,600 crore, including framework contracts, signaling a solid pipeline ahead.
Domestic Shipping Revenue Faces Decline Amid Charter Rate Softening
India’s domestic shipping sector is bracing for an 8-10% revenue decline in FY26, according to a CRISIL Ratings report, primarily due to falling charter rates for crude oil, petroleum products, and dry bulk carriers. Following a peak growth of 35% in FY23, driven by surging charter rates amid the Russia-Ukraine conflict and post-pandemic demand, the industry has since seen revenue and margins slide. In FY25, operating margins are expected to fall further to 32-34%, down from over 40% last year, though still above the cyclical norm of 25-30%. Notably, modest capex plans and stable credit profiles are expected to cushion companies from the full impact of this decline. The debt-to-EBITDA ratio, a key financial indicator, is expected to rise moderately to 2.0-2.2 times next fiscal from 1.4 times in FY24. Even so, robust liquidity and asset monetization capabilities should insulate companies from cyclical pressures. CRISIL emphasized that geopolitical developments could significantly impact charter rates and industry dynamics, warranting close monitoring. For now, the sector appears poised to weather the downturn with resilient fundamentals.
India Emerges as a Mobile Manufacturing Powerhouse
India’s domestic electronics industry has witnessed a meteoric rise, with 99.2% of mobile handsets used in the country now being manufactured locally, according to Jitin Prasada, Minister of State for Electronics and IT. This marks a dramatic shift from FY2014-15, when 74% of mobile phones sold in India were imported.The domestic electronics production has grown at a robust CAGR of over 17% in the past decade, scaling from ₹1.9 lakh crore in FY2014-15 to a staggering ₹9.52 lakh crore in FY2023-24. To sustain this momentum, the government has rolled out ambitious initiatives like the ₹76,000 crore Semicon India program, and Production Linked Incentive. Despite these achievements, challenges remain. India’s electronics manufacturing still faces a cost disadvantage compared to global competitors due to factors like higher capital expenditure requirements, longer gestation periods, smaller production scales, and difficulties in securing technology transfers.
Overview
Indian equity markets extended their decline for the third straight session on Wednesday, weighed down by weak sentiment both domestically and globally. The BSE Sensex fell by 502 points, or 0.62%, to settle at 80,182.20, while the NSE Nifty50 saw a decline of 137 points, or 0.56%, finishing the session at 24,198.85.. Broader market indices fared no better, with the BSE Midcap and Smallcap indices losing 0.61% and 0.76%, respectively. The Sensex has now lost a steep 1,951 points over the past three trading sessions, as persistent selling pressure gripped the market. The losses weren’t limited to large-cap stocks, midcap and smallcap counters also faced selling as investors stayed cautious amid global uncertainties.
Across the Atlantic, U.S. markets displayed mixed performance, with investors focused on the Federal Reserve’s final policy decision for the year. By mid-morning, the Dow Jones Industrial Average managed a modest gain of 65 points, or 0.15%, while the S&P 500 and Nasdaq Composite posted slight declines of 0.10%.
Brent crude rose 0.78% to $73.56 per barrel, while U.S. WTI crude gained 0.90% to trade at $70.71 per barrel. Gold prices in India saw a slight uptick on Wednesday, gold priced at ₹7,818.3 per gram, marking an increase of ₹130.0. On the other hand, silver prices in India remained unchanged, with the current price standing at ₹95,500.0 per kilogram.
As the trading week approaches its end, all eyes remain on the Fed’s policy announcements, which could set the tone for global markets, including India. For now, the mood remains bearish, with investors opting to stay on the sidelines.