Category: News

Shares of aviation companies, including InterGlobe Aviation (IndiGo) and SpiceJet, could see action as the government’s 55th GST Council meeting considers a landmark move: bringing aviation turbine fuel (ATF) under the GST framework. The potential inclusion of ATF in GST has long been a key demand from the aviation industry, offering the promise of reduced operational costs and improved efficiency. Currently, ATF—a clear and highly flammable petroleum distillate used for aircraft refueling—is subject to varied state-level taxes, often at prohibitive rates. If ATF is brought under GST, it could streamline tax rates across the country, providing relief to airlines and boosting their financial performance. The GST Council, chaired by Union Finance Minister Nirmala Sitharaman and attended by state representatives, will deliberate on this issue in Jaisalmer on December 21. With jet fuel prices already pressuring margins, a uniform GST rate could be a game-changer for the sector.

Reliance Industries is in the spotlight following the revival of its oil swap arrangement with Venezuela’s state oil company PDVSA, a deal that had previously been suspended due to U.S. sanctions. This renewal was made possible by a U.S. license granted in July. Earlier this month, a supertanker carrying 1.9 million barrels of Venezuelan Merey heavy crude departed for India’s Sikka port, with Reliance supplying 500,000 barrels of heavy naphtha to PDVSA in exchange. Despite this development, 2024 has been a disappointing year for Reliance Industries, with its shares poised to close the year with negative returns for the first time in nearly a decade. From its July peak, the stock has fallen about 21%, erasing over ₹4.4 lakh crore in market capitalization. After robust performances in earlier years, with a 70.55% return in 2017 and consistent growth through 2020, Reliance’s growth trajectory has slowed, culminating in a likely decline this year.

Siemens India faced a rough trading day on December 20, as its stock tumbled 10%, hitting a one-month low of ₹6,868 per share. This marks the company’s sharpest intraday fall since June, following a lackluster September quarter earnings call. For the September quarter, Siemens reported a revenue of ₹5,894 crore, an 11% increase from ₹5,297 crore a year ago. Despite strong fundamentals and growth in new orders, Siemens faces short-term challenges, including private capex unevenness, supply chain constraints, and margin pressures in certain segments. The Digital Industries division is grappling with a global semiconductor shortage and customer destocking, which have pressured margins and created an unfavorable product mix. The management anticipates a recovery in this segment as destocking trends subside. The management highlighted that private capital expenditure (capex) remains uneven, with robust investments in emerging areas like semiconductors and batteries but sluggish activity in traditional technologies. Siemens announced an additional ₹100 crore capex to expand its power transformer factory in Kalwa, bringing the total investment to ₹460 crore.

Shares of Himadri Speciality Chemical have hit a speed bump, sliding 20.5% from their all-time high of ₹688 in September to ₹547 today.  Despite this correction, it’s still up an impressive 77% in 2024. ICICI Securities recently initiated coverage with an ‘ADD’ rating and a target price of ₹600, citing the company’s dominance in India’s coal-tar value chain. Himadri commands a 60–70% market share in Coal Tar Pitch (CTP) and other derivatives, bolstered by its forward integration into high-margin carbon black production. What’s driving long-term optimism? For one, Himadri’s strategy moves into lithium-ion battery materials. The company’s expansion in export markets commands a premium pricing advantage of 10–15%, enhancing profitability. On top of that, Himadri’s planned boost to coal tar distillation capacity targets growing demand for aluminum production. With stable demand and expanding markets, the company’s fundamentals remain robust, making this dip an opportunity for long-term investors rather than a cause for concern.

BASF India shares lit up the trading floor on Friday, climbing almost 9% after the company unveiled its plans to demerge its agricultural solutions business into a standalone entity. The stock kicked off the day at ₹5,780.05, quickly rallying to ₹5,944.30 on the BSE, marking an impressive 8.9% jump. By mid-morning, it settled slightly, trading 5.67% higher at ₹5,769.55. The excitement stemmed from an announcement late Thursday, where BASF India’s board gave its nod for the spin-off. This move aligns with BASF SE’s global strategy to separate its agricultural solutions business by 2027, both legally and through enterprise resource planning (ERP). BASF India has been prepping for this shift, first hinting at the changes in December last year and providing updates along the way, including a September 2024 assessment of how the global strategy affects its Indian operations. BASF India’s agricultural solutions unit, now poised for greater autonomy, could emerge as a significant player in its own right.

International Gemological Institute shares had a glittering market debut on Friday, listing at ₹510 on the NSE—a solid 22.3% premium over its ₹417 IPO price. On the BSE, it wasn’t far behind, opening at ₹504.85, marking a 21.07% jump. The ₹4,225 crore IPO had already turned heads during its subscription period from December 13 to 17, with bids pouring in at 35.48 times the shares on offer.  The structure of IPO was a mix of a fresh issue of 3.54 crore shares (₹1,475 crore) and an offer-for-sale (OFS) of 6.59 crore shares (₹2,750 crore). With this, the promoter’s stake drops from a full 100% to 76.55%, signaling a step toward broader market participation. Retail investors can participate with a minimum lot of 35 shares, which amounts to an initial investment of ₹14,595. What’s the money for? Primarily, it’s earmarked to acquire IGI Belgium Group and IGI Netherlands Group—strategic moves to bolster their global presence.

Indian IT stocks had a nice little bump on Friday morning, rising up to 1%. What’s behind the buzz? Accenture’s blowout Q1 results, which seem to have reinvigorated investor confidence in the tech space. Accenture ended Thursday with a solid 7% gain in its stock price, closing at $372.16. The company crushed Wall Street’s revenue estimates, reporting $17.7 billion in Q1 revenue versus the expected $17.12 billion. A year-on-year growth of 8% (in constant currency terms) doesn’t hurt either, especially since it surpassed their guidance range of 2-6%. Accenture analysts credit it to the rising adoption of AI-powered solutions and the ramp-up of large deals in consulting (up 6% YoY). Meanwhile, managed services shone brighter, clocking an impressive 11% YoY growth. Encouraged by this momentum, Accenture bumped its FY25 revenue growth guidance by 100 basis points to a range of 4-7%. So, while the broader market may have its ups and downs, Indian IT seems to be surfing the AI and digital transformation wave just fine—for now.

India’s market regulator, SEBI, has unveiled sweeping changes to strengthen investor protection and streamline market operations. To safeguard investors and maintain the accessibility of SME IPOs for informed participants, SEBI has increased the minimum application amount from ₹1 lakh to ₹2-4 lakh. Promoters face tighter controls on share sales, with a limit of 20% of their holdings per IPO and phased lock-in periods for excess holdings. Furthermore, the proceeds from the IPO allocated for general corporate purposes are limited to either 15% of the total amount raised or ₹10 crore, whichever is lower. SEBI also has introduced stricter qualifications and financial thresholds for merchant bankers. Both categories must maintain liquid net worth equal to 25% of their minimum requirement and meet cumulative revenue targets over three years. Sponsors can now transfer locked-in units within their group, while REITs can invest in unlisted companies providing ancillary services, subject to conditions. SEBI also has broadened the definition of unpublished price-sensitive information (UPSI) and introduced a two-day window for event updates.

The Federal Reserve’s hawkish tone, despite its recent rate cut, has triggered a selloff in Asian currencies. The Bloomberg Asia Dollar Index slid 0.4% on Thursday, highlighting the dollar’s broad strength. The Federal Reserve’s decision to cut rates, paired with its renewed focus on inflation, has shifted market dynamics. Chair Jerome Powell acknowledged that their year-end inflation projections have faltered, suggesting tighter monetary conditions ahead. Bank Indonesia has openly intervened in domestic markets, signaling a strong stance to traders.The Reserve Bank of India has used both offshore and onshore mechanisms to stabilize the rupee but has refrained from public commentary. Also, many expect the yuan to face further challenges in 2025, especially amid the looming possibility of another US-China trade war. The region’s currencies have collectively shed nearly 4% against the dollar this year, even as the Fed shifted to rate reductions.

Shares of IOL Chemicals & Pharmaceuticals surged over 8% in morning trade on Thursday as investors rallied behind the company’s announcement of a potential stock split. IOL Chemicals & Pharmaceuticals, a prominent player in the pharma and specialty chemicals space, is renowned as the world’s largest producer of Ibuprofen, commanding a ~30% global market share. The stock opened slightly higher at ₹406 on the BSE, compared to its previous close of ₹405.35, and quickly climbed to an intraday high of ₹441. This spike comes ahead of a pivotal board meeting scheduled for Friday, December 27, where the company will deliberate on subdividing its equity shares with a face value of ₹10 each. To maintain compliance, the company has also closed its trading window for insiders, effective from December 19 to December 29. With its robust portfolio and the potential stock split, IOL is clearly signaling its intent to enhance shareholder value and expand market accessibility. Investors are already taking notice, as reflected in the stock’s bullish movement.