Broad Strokes, October 23, 2024
- 8sapience
- Market update , Multibagger , Stocks
- 23 Oct, 2024
📈 Danish Power IPO shows strong demand
- Waaree Energies IPO NII Portion Booked 36x
Cause: Waaree Energies’ IPO received a tremendous response, being oversubscribed 36x by non-institutional investors. The IPO aims to raise Rs 4,321 crore, with proceeds to fund a 6 GW solar manufacturing facility in Odisha.
Effect: This high demand has driven up the grey market premium (GMP) to over Rs 1,370, indicating anticipated strong listing gains. Waaree’s market capitalization is projected to surpass Rs 43,000 crore upon listing.
🔻 Nifty down 7% from highs
- Midcaps Outperform as Nifty, Sensex Struggle
Cause: The Indian stock market, driven by global uncertainties and profit booking, saw the Nifty dip 7% from its highs, closing below 24,450.
Effect: While key indices struggled, midcaps outperformed, with IT and financial sectors providing a cushion. Despite positive earnings, market sentiment remains cautious ahead of global events.
🚀 Olectra Greentech Q2 Profit Surges 156%
Cause: Olectra Greentech reported stellar Q2 results with a 156% profit rise, driven by strong operational performance and increasing demand for electric buses.
Effect: The company’s shares rose 6%, and the strong fundamentals have reinforced market confidence in Olectra’s growth trajectory, with investors optimistic about future prospects.
💸 Paytm shares rally after Q2 PAT report
Cause: Paytm posted a Rs 928 crore profit in Q2, boosted by a one-time gain from selling its ticketing business to Zomato.
Effect: The stock surged 5%, and the approval to onboard new UPI users by NPCI is expected to boost Paytm’s growth in the digital payments space.
💼 RITES secures Rs 454 crore contract
Cause: RITES secured a Rs 454 crore contract for freight terminal construction in Karnataka, bolstering its project portfolio.
Effect: Shares of RITES rose following the announcement, adding to a 17% YTD rise, as the company explores new growth opportunities, including partnerships in the UAE.
📊 RBI MPC suggests a 25-bps rate cut
Cause: MPC member Nagesh Kumar suggested a 25-bps rate cut due to sluggish domestic demand and weak global growth.
Effect: This is expected to ease liquidity pressures in India, supporting corporate investment and potentially spurring growth across sectors.
🌍 Gujarat Fluorochem raises Rs 1,000 crore
Cause: Gujarat Fluorochemicals raised Rs 1,000 crore for its electric vehicle battery materials subsidiary, aiming to capture 7% of the global market.
Effect: This significant funding round will bolster the company’s expansion plans in the fast-growing EV battery chemicals market, solidifying its leadership in the space.
🔍 Adani Energy faces SEBI scrutiny
Cause: Adani Energy Solutions is under SEBI’s radar for alleged misclassification of shareholders, continuing scrutiny on the Adani Group.
Effect: Despite regulatory challenges, Adani Green Energy reported a 39% profit surge in Q2, supported by capacity expansion and improved operational efficiency.
