Category: News

India’s ambitious $6 billion plan to build six cutting-edge submarines has hit choppy waters, thanks to contractor complaints about testing protocols at sea. Shares of Mazagon Dock Shipbuilders and GRSE took a nosedive on Friday, slipping over 4% each. Mazagon Dock shares dipped to ₹4,741.30, while GRSE touched ₹1,701.85—both marking notable drops. On the international front, German giant ThyssenKrupp Marine Systems and Spain’s Navantia SA, both paired with Indian firms, are competing for the deal. But procedural hiccups could push timelines, leaving India’s naval expansion ambitions momentarily stalled. Despite the current sell-off, both Mazagon and GRSE remain long-term heavyweights. Mazagon has been on a dream run, delivering 132% returns over the past year and 110% year-to-date. GRSE isn’t far behind, clocking 110% in one year and 96% YTD.

India’s state-owned energy giant ONGC is on the move, working on tech collaborations with big names like Shell and Petronas to breathe new life into its offshore gas fields. The numbers tell a story of challenges and resilience. Gas production took a dip, with 4.912 BCM in Q2FY25 versus 5.018 BCM last year. Looking ahead, ONGC aims to ramp up its acreage acquisition to 2.6 lakh square kilometers, a sharp rise from 2023’s 1.5 lakh. By 2027, the company targets a 20% jump in crude and gas output, eyeing a total of 47 MMtoe, up from the current 39.45 MMtoe.

The Jubilant Bhartia Group, known for backing Jubilant FoodWorks (Domino’s Pizza’s franchisee in India), is shaking up the beverage game. They’ve inked a deal to snag 40% of Hindustan Coca-Cola Beverages (HCCB), Coca-Cola’s bottling arm in India. This transaction could clock in at a hefty ₹12,500 crore, pegging HCCB’s valuation at a whopping ₹31,250 crore. HCCB’s numbers are bubbly – FY24 revenue surged 9.2% to ₹14,021 crore, while profits fizzed up an impressive 247% to ₹2,808.3 crore. Bhartias plan to cover 40% of the deal themselves—around ₹4,000-₹5,000 crore—while Goldman Sachs could step in to fund the rest. This bold move setting the stage for HCCB’s IPO in a few years. The entry of a corporate heavyweight like Jubilant is bound to stir up excitement among investors.

MTNL shares shot up by 13.7% on Thursday, closing at ₹61.89 on the BSE, after the company reassured investors that its sovereign guarantee would cover a bond payment default. The rally came in response to MTNL’s announcement that it failed to fund the semi-annual escrow deposit for its 6.85% MTNL Bond Series VI, due on December 21, 2024, citing insufficient funds. However, under a Tripartite Agreement (TPA) involving MTNL, the Department of Telecommunications, and Beacon Trusteeship Ltd., the Indian government is obligated to invoke its sovereign guarantee in such cases, ensuring bondholders receive their payments. This reassurance added fuel to the recent upswing in MTNL’s stock, which has already surged 24.63% over the past month.

HDFC Bank shares took a modest hit, slipping nearly 0.7% on Thursday after SEBI issued an administrative warning regarding non-compliance in its investment banking operations. This blip comes amidst an otherwise strong six-month rally that saw HDFC Bank shares surge 18%, adding ₹3 lakh crore to its market cap. Since its merger with HDFC, the bank has emerged as a top performer among private lenders, thanks to superior margins and solid asset quality—even as peers face rising concerns over unsecured loans. Despite the minor setback from SEBI’s warning, the bank’s strong fundamentals and positive analyst sentiment suggest this is merely a small bump on an otherwise smooth road. Shares closed at ₹1,858.95, down just 0.25%.

It’s been a crunchy day for Gopal Snacks’ investors—shares nosedived 10% to ₹406.75 on the BSE following a fire at the company’s Rajkot manufacturing plant. The flames, though dramatic, thankfully didn’t claim any lives or cause injuries, and the company’s IT systems emerged unscathed. In a statement to the exchange, Gopal Snacks emphasized its top priority: the safety of its team. Production has already been cranked up at their Modasa and Nagpur plants to keep the snack train running. For now, the market is jittery, but Gopal Snacks’ swift damage control and diversified manufacturing footprint suggest this is more of a hiccup than a crunch-time crisis.

Union Minister Piyush Goyal has set the stage for a high-stakes economic partnership, reaffirming India’s commitment to crafting a Free Trade Agreement (FTA) with the European Union. And it’s not just talk—this pact is aimed to be ambitious, balanced, and, most importantly, a win-win for both sides. India-EU trade numbers already speak volumes. With $137.41 billion in goods trade and $51.45 billion in services trade in 2023-24, the EU isn’t just a trading partner—it’s India’s biggest one. Goyal underscored how an FTA could turbocharge these numbers, giving India’s exports a much-needed boost and making global supply chains more robust. The European delegates were equally bullish, highlighting untapped opportunities and pointing to the India-EU Trade and Technology Council—a rare, strategic collaboration that India otherwise shares only with the U.S.

India’s hotel industry is on a roll, riding a wave of demand that’s outpacing supply—and by a comfortable margin, according to Axis Capital’s latest report. Demand is set to grow at a brisk 12% CAGR for FY24-27, outshining the modest 9% CAGR expected in supply. Structural drivers are paving the way for sustained growth. Leisure travel, buoyed by rising disposable incomes and wealthier households, has been a consistent star, accounting for nearly half of total hotel demand. Business travel, after years of decline, is primed for a rebound as corporate profits and travel budgets recover. Sure, the sector has its risks—seasonality, economic slowdowns, and new market entrants could shake things up. But for now, de-leveraged portfolios and better cash flows have set a solid foundation.

Speaking at the CII Global Economic Policy Forum 2024, Panagariya ( Chairman of the 16th Finance Commission) emphasized that India could take a page out of developed countries’ playbooks. Selectively embracing Chinese investments could bolster local manufacturing and position India better in the global supply chain. It’s a perspective backed by the Economic Survey 2023-24, which highlighted how increased FDI from China could enhance export potential and help India carve a bigger slice of the international trade pie. Panagariya underlined the importance of safeguarding against investments from “unfriendly countries” that might harm national interests. The approach isn’t about blind acceptance; it’s about striking the right balance.

BlueStone Jewellery, the Bengaluru-based e-commerce juggernaut for fine jewellery, is ready to dazzle the stock market. Filing its draft papers with SEBI on December 12, the company is planning a blockbuster IPO that promises to be as glittering as its diamond collections. Backed by heavyweights like Ratan Tata and Zerodha’s Nikhil Kamath, BlueStone is raising funds to expand its horizons and solidify its status as a top lifestyle brand. Here’s the breakdown: the IPO includes a ₹1,000 crore fresh issue and an offer for sale (OFS) of 2.4 crore shares. Proceeds from the fresh issue—are earmarked for working capital and corporate expenses.