Broad Strokes, September 20, 2024
- 8sapience
- BroadStrokes , Stocks , SEBI
- 20 Sep, 2024
🚢 Defence Stocks Rebound Sharply
Cause: Cochin Shipyard and Mazagon Dock surged 10% following a broader PSU recovery, especially after Cochin Shipyard’s inclusion in the FTSE All World Index.
Effect: PSU stocks, including defence sector players, recovered strongly from a recent selloff. Cochin Shipyard’s rise was fueled by anticipated $30 million inflows, though analysts caution about high valuations in the sector.
🏗️ Reliance Infrastructure Raises ₹6,000 Crore
Cause: Reliance Infrastructure announced plans to raise ₹6,000 crore through preferential allotments and QIP.
Effect: The company’s shares surged 50% this week, hitting a 52-week high, driven by renewed investor confidence and the infusion of funds from promoters and institutional investors.
🚂 Cosmic CRF Wins ₹127-Crore Contract
Cause: Cosmic CRF’s subsidiary secured a ₹127 crore order to supply steel sheet piles, following strong earnings and contract wins.
Effect: Shares hit the upper circuit with a 5% gain, continuing a multibagger performance for the year with over 200% returns.
🏗️ Patel Engineering Secures NHPC Contract
Cause: Patel Engineering announced winning a ₹240.02 crore contract from NHPC for hydro-mechanical work at the Teesta-V Power Station.
Effect: Shares rose 5% in response, adding to the company’s strong project portfolio in India’s infrastructure sector.
🏦 Sebi Relaxes Rules for Market Infrastructure
Cause: Sebi eased financial disincentives for Market Infrastructure Institutions (MIIs), limiting penalties to institutions rather than individual leaders for technical glitches.
Effect: This regulatory change is expected to make it easier to conduct business in India’s financial markets, encouraging growth and modernization within the MII space.
📊 Axis Bank Clarifies SEBI Order Impact
Cause: SEBI issued an interim order banning Axis Capital from new merchant banking in debt markets, citing underwriting concerns.
Effect: Axis Bank shares remained stable, as Axis Capital clarified that the debt segment accounted for only 5% of its revenue and that it is seeking legal remedies.
🏠 IndoStar Capital Sells Home Finance Unit
Cause: IndoStar Capital announced selling its home finance business to WITKOPEEND B.V. for ₹1,750 crore.
Effect: Shares surged 13% to a 52-week high as the sale allows IndoStar to focus on its core businesses, improving investor sentiment.
💼 Sebi Permits Mutual Funds to Trade Credit Default Swaps (CDS)
Cause: Sebi now allows mutual funds to buy and sell CDS, previously restricted to hedging.
Effect: This will enhance liquidity in the corporate bond market and provide mutual funds with additional tools for risk management.
