Market Update Summary

Suzlon Energy Wins Major NTPC Wind Order

• Key Win: Suzlon Energy surged by 3% after securing a 1,166 MW wind energy order from NTPC Green Energy. The project, India’s largest wind energy order, involves 370 turbines across Gujarat and will power 3 million homes.
• Strategic Move: Suzlon also acquired 51% of Renom Energy, expanding its renewable energy services. The company’s order book now approaches 5 GW.

Nifty Faces Downturn Signals

• Technical Patterns: Nifty is showing bearish indicators, with support at 24,750 and potential downside to 23,885. Analysts suggest a cautious stance, focusing on defensive sectors like pharma and FMCG.

Indian Pharma Stocks Boosted by US Biosecure Act

• Sector Surge: Indian pharma stocks saw gains after the GST Council reduced tax on cancer drugs from 12% to 5%, and the US Biosecure Act targeted Chinese biotech. AstraZeneca Pharma’s shares rose by over 4%, and CDMO contracts are expected to benefit Indian firms.

Adani Green Redeems $750M Bonds Early

• Deleveraging Strategy: Adani Green redeemed $750 million in bonds using cash reserves, avoiding refinancing. The company aims to grow its renewable capacity to 50 GW by FY30 and has raised Rs 9,350 crore for future capital expenditure.

Ahluwalia Contracts Secures Major Orders

• Construction Boom: Ahluwalia Contracts saw a 6.78% rise after winning two significant orders worth Rs 1,307 crore in Gurugram. Despite a year-on-year net profit decline, the company is projected to grow at a CAGR of 21.2% through FY26.

Sona BLW Raises Rs 2,400 Crore via QIP

• Investor Interest: Sona BLW raised Rs 2,400 crore through a Qualified Institutional Placement (QIP), oversubscribed by 5.5 times. Mrs. Bectors Food also raised Rs 400 crore, while Kross Ltd’s IPO saw strong demand.

Tata Power Surges on Solar Production Announcement

• Solar Expansion: Tata Power shares surged 7% following the commencement of commercial production at its solar cell manufacturing plant in Tamil Nadu. Analysts predict further upside if the stock breaches Rs 445, with a target of Rs 480.

Bajaj Housing Finance IPO Demand Soars

• IPO Oversubscription: Bajaj Housing Finance’s IPO was subscribed 7.51 times by Day 2, with strong interest from non-institutional investors. The grey market premium suggests potential strong listing gains, with shares expected to list on September 16.

Dixon Technologies Signs MoU with HP India

• New Partnership: Dixon Technologies’ shares rose 2.3% after signing an MoU with HP India to manufacture PCs in Chennai, expected to create 1,500 jobs. Analysts remain cautious due to concerns over capital expenditure.

Largecap Private Banks Recovery Anticipated

• Nomura’s Projections: Nomura revised target prices for major Indian banks ahead of the US Federal Reserve meeting, expecting a reduction in net interest margins. Despite this, a ‘Buy’ rating remains due to strong asset quality.

Investors Inject Rs 38,239 Crore into Equity Funds

• Record Inflows: Indian equity mutual funds attracted Rs 38,239 crore in August 2024, driven by SIP contributions and new fund offerings. Large-cap funds saw a 293% inflow increase, while Coforge and DMart hit 52-week highs.