SGX Nifty hints at a negative opening for benchmark indices BSE Sensex and NSE Nifty 50. Adani Enterprises, SBI, Vedanta, Jubilant FoodWorks among stocks to watch on Thursday.
Indian benchmark indices are likely to open on a negative note, hinted SGX Nifty. Ahead of the weekly F&O expiry session, Nifty futures were trading 0.5% lower at 18,123 level on the Singapore Exchange. In the previous session, the BSE Sensex rallied 390 pts to 61,046, while NSE Nifty 50 jumped 112 points to 18,165. “We expect the recovery to extend further as Nifty has surpassed the immediate hurdle at the 18100 mark. However, the upside seems capped citing restricted participation and hurdles around the 18250-18350 zone. We thus recommend staying selective and suggest preferring index majors over others,” said Ajit Mishra, VP – Technical Research, Religare Broking Ltd.
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Stocks in focus on 19 January, Thursday
Adani Enterprises: The Adani group on Wednesday filed its red herring prospectus with the regulator for a follow-on public offer (FPO) to raise Rs 20,000 crore. The offer will remain open for subscription from 27 January to 31 January, and will comprise a fresh issue of shares of face value Re 1 each, on a partly paid basis. The date for bidding by anchor investors has been set for 25 January. The company has set the FPO floor price of the offer at Rs 3,112 per share, and the cap price at Rs 3,276 a share for all categories of investors, it said in a filing to the BSE. The board also approved a discount of Rs 64 per share for retail investors. The minimum bid lot will be of four shares (in multiples of four shares thereafter).
Central Bank of India: Central Bank of India’s net profit for the quarter ending December 2022 increased by 64% to Rs 458 crore on-year despite a 35% jump in its provisions. The bank’s provisions stood at Rs 995 crore in Q3FY23. At operating level, the lender saw a 44% on-year increase in its pre-provisioning profit to Rs 1,807 crore, owing to a 94% increase in its non-interest income, which stood at Rs 919 crore. The bank’s net interest income (NII) improved 20% on-year to Rs 3,285 crore due to 15% jump in advances to Rs 2.1 trillion.
State Bank of India (SBI): The lender on Wednesday raised Rs 9,700 crore through its second infrastructure bond issuance. Bonds carry a coupon rate of 7.70% per annum. The tenure of these bonds is 15 years. The issue received 118 bids. SBI will utilise the proceeds to enhance long-term resources for funding infrastructure and the affordable housing segments, it said in a press release. Before this, the bank had raised infrastructure bonds of Rs 10,000 crore on 6 December 2022, at a spread of 17 bps over the corresponding FBIL G-Sec par curve.
Vedanta: Vedanta is set to acquire debt-laden Meenakshi Energy for Rs 1,440 crore, the company said in an exchange filing on 18 January, after it emerged as the successful bidder. Vedanta will pay Rs 312 crore upfront while the balance of Rs 1,128 crore will be paid in the form of secured, unlisted non-convertible debentures (NCDs) issued by Meenakshi Energy. The consideration will mature in five equal instalments over a period of five years, the company said. Meenakshi Energy has a 1,000-MW coal-based power plant in Nellore, Andhra Pradesh.
Jubilant FoodWorks: The leading food service player and popularly known as maker of Domino’s Pizza in India, would be shelling out around Rs 900 crore in the next twelve to eighteen months to open stores of multi brands and build food factories along with supply chain facilities. The company will be spending a capex around Rs 500-600 crore to open stores of Domino’s Pizza and Popeyes, one of America’s popular chicken brands, which the company is in the process of establishing in India. It will be spending around Rs 300 crore for setting up food factories and related supply chain infrastructure.
IndusInd Bank: The lender’s net profit for the quarter ending December 2022 jumped to Rs 1,959 crore, a 69% on-year rise that beat the Bloomberg estimate of Rs 1,885 crore. The increase in the bottomline was on account of significant reduction in provisions, which slid 36% on-year to Rs 1,065 crore in Q3FY23. The bank also saw a rise in its advances and deposits. The lender saw 15% increase in its pre-provisioning operating profit to Rs 3,680 crore, led by a rise in its non-interest income and net interest margin (NIM).
Aurobindo Pharma: The United States Food and Drug Administration (US FDA) inspected the company’s wholly owned subsidiary, APL Health Care’s Unit I and III, at Jadcherla in Telangana, from January 9 to January 18, 2023. The US health regulator issued a ‘Form 483’ with two observations. The observations are procedural in nature.
