Stocks To Watch: ICICI Securities, Nazara, NTPC, AB Capital, Tata Power

NTPC has filed for an IPO of its green energy arm, NTPC Green Energy Ltd, with an aim to raise approximately $1.2 billion (Rs 10,000 crore).

Stocks to Watch, Thursday, September 19, 2024: US stock futures rose on Wednesday night as traders digested the Federal Reserve’s decision to lower interest rates by a half percentage point.

Dow Jones Industrial Average futures rose 166 points, or 0.4 per cent, while S&P 500 futures gained about 0.6 per cent and Nasdaq 100 futures advanced 0.9 per cent.

However, after swinging for most of the dat, stocks on Wall Street had ultimately closed lower on Wednesday. Both the S&P 500 and Dow had initially rallied to new record highs after the Fed's announcement.

The Fed slashed its overnight lending rate to a range of 4.75 per cent to 5.00 per cent, from 5.25 per cent to 5.5 per cent on Wednesday, which came as a surprise to some investors who criticized the size of this initial cut. 

 

In lockstep with the Fed, the Hong Kong Monetary Authority also cut its interest rate by 50 basis points to 5.25, as the city’s currency is pegged to the greenback.

As for markets in the Asia-Pacific region, Japan’s Nikkei 225 was leading markets higher on Thursday, with Nikkei and Topix up about 2 per cent each. 

Meanwhile, Hong Kong’s Hang Seng index futures pointed to a flat open for HSI, as they would return to trade after being closed for a public holiday on Wednesday. The Taiwan Weighted Index was up 0.12 per cent, and South Korea’s blue-chip Kospi slipped 0.51 per cent after opening higher, while the small-cap Kosdaq was up 0.25 per cent. Australia’s S&P/ASX 200 rose 0.15 per cent on open.

Futures of mainland China’s CSI 300 stood at 3,191 slightly lower than its Tuesday close at 3,195.76.

That apart, here are a few stocks likely to be in focus on Thursday:

ICICI Securities, ICIC Bank: Quantum Mutual Fund has appealed to the NCLAT against ICICI Securities' delisting, which was approved by the NCLT despite minority shareholder objections. 

IT stocks: Information technology stocks had posted their sharpest drop in over six weeks on Wednesday, ahead of the US Fed's policy rate announcement. The Nifty IT Index closed 3.1 per cent lower at 42,089 on Wednesday, its biggest single-day decline since August 5. Its constituents Mphasis dropped by 5.6 per cent, followed by TCS closing lower by 3.5 per cent. L&T Technology Services, Persistent Systems, Infosys, and HCLTech also fell by over 3 per cent each.

Nazara Technologies: THe company has approved a preferential equity issue to raise Rs 900 crore and increased its stake in Absolute Sports, which operates Sportskeeda, to 91 per cent. 

Aurobindo Pharma: The pharma company will acquire the remaining 49 per cent stake in GLS Pharma for Rs 22.5 crore, making it a wholly-owned subsidiary. The transaction is set to be completed by December 31, 2024.

NTPC: The company has filed for an IPO of its green energy arm, NTPC Green Energy Ltd, with an aim to raise approximately $1.2 billion (Rs 10,000 crore). The company focuses on renewable energy projects and hydrogen production.

Tata Power: The company plans to double its solar cell and module manufacturing capacity over three years to mitigate supply chain risks. The company is also investing in energy storage solutions and has committed Rs 75,000 crore to achieve 20 GW operational capacity by 2030.

Aditya Birla Capital: The RBI has approved the merger of Aditya Birla Finance with Aditya Birla Capital.

BHEL, PFC: BHEL has paid a final dividend of Rs 55 crore to the government, while PFC reported a record Rs 4,455 crore in dividends for 2023-24, with Rs 462 crore going to the government.

Zee Entertainment Enterprises: Star India is seeking $940 million in damages from Zee Entertainment over a terminated ICC TV rights deal. Arbitration regarding the dispute is ongoing, where Zee has contested the claims.

Zomato: The food delivery platform received a GST demand order of Rs 17.7 crore from West Bengal for the period between April 2021 and March 2022. The company plans to appeal against the order.

LIC: The company plans to invest Rs 600 crore in its digital transformation, aiming to become paperless in two years. The initiative includes partnerships with Infosys and Boston Consulting Group.

SpiceJet: The airline's Rs 3,000 crore share sale via a QIP issue has seen strong interest from institutional buyers, according to sources in the know. The funds will help the airline pay pending statutory dues and other financial obligations.

TCS: The IT company has entered into a two-year partnership with McDonald’s Philippines to upgrade its IT systems.