Stocks to Watch: Northern Arc, Tata Motors, Ola Electric, Morepen Labs, BoB

Stocks to Watch: Morepen Laboratories plans to separate its medical devices business.

Stocks to Watch, Tuesday, October 8, 2024: GIFT Nifty futures, trading more than 100 points behind Nifty futures' last close, at 24,860, indicated a gap-down open for Indian markets, amid weaker global sentiment.

Markets in Asia-Pacific were also mostly down on Tuesday as investors monitored Japan's August household spending and awaited the reopening of mainland Chinese markets.

Following a 1.9 per cent year-on-year drop in Japan's real household spending in August, the Nikkei 225 was down 0.75 per cent, and the Topix was down by 0.88 per cent. 

In South Korea, the Kospi was down 0.61 per cent, largely influenced by disappointing third-quarter guidance from Samsung Electronics. The Kosdaq, tracking smaller companies, was marginally slightly behind by 0.14 per cent.

 

In Hong Kong, futures for the Hang Seng index suggested a stronger opening at 23,169, compared to its previous close of 23,099.78. 

Meanwhile, Australia’s S&P/ASX 200 began the day up by 0.16 per cent.

In the US, stocks fell as rising oil prices and increasing Treasury yields dampened market sentiment. 

The Dow Jones dropped 0.94 per cent, the S&P 500 decreased by 0.96 per cent, and the Nasdaq Composite lost 1.18 per cent. 

Meanwhile, here are a few stocks likely to be in focus on Tuesday, October 8:

HDFC Bank: The bank has increased its marginal cost of funds based lending rate (MCLR) by 5 basis points for select tenures, effective October 7. The new MCLR rates now range from 9.10 per cent to 9.50 per cent, with the six-month MCLR at 9.45 per cent and the three-year MCLR at 9.50 per cent. This change reflects the bank's response to rising deposit rates amid sluggish deposit growth.

Axis Bank: The bank has secured a $500 million loan from the International Finance Corporation (IFC) to develop a blue finance market in India. This marks IFC's first blue investment in the country and will support various environmental initiatives. Axis Bank aims to enhance its climate finance portfolio, with a commitment to invest Rs 60,000 crore in ESG-aligned sectors by 2030.

Northern Arc: The company's subsidiary, Northern Arc Investment Managers (NAIM), is launching a Rs 1,000 crore alternate investment fund focused on lending across sectors like affordable housing and microfinance. The fund aims for an internal rate of return of 14-14.5 per cent and targets investments in 45-55 entities over four years.

Vodafone Idea: Ericsson has expanded its partnership with Vodafone Idea, securing contracts for the deployment of 4G and 5G technology in four new telecom circles. This comes after Vodafone Idea awarded a Rs 30,000 crore network contract to the company.

Reliance Industries: Reliance Jio is advocating for a revised consultation paper from the Telecom Regulatory Authority of India (Trai) regarding spectrum allocation for satellite communication. Jio emphasises the need for a level playing field between satellite and terrestrial services, which could impact the competitive landscape as companies like Starlink and OneWeb plan to enter the Indian market.

Servotech Power Systems: The company has secured an additional order to establish nine EV charging stations in Maharashtra, bringing its total to 29. This order from the Nashik Municipal Corporation reflects the growing demand for EV infrastructure.

Kalyan Jewellers: The company reported a significant revenue growth of 39 per cent in India for Q2FY25, driven by increased foot traffic and a 23 per cent same-store sales increase. The reduction in custom duties on gold imports has positively impacted sales, with the company planning to expand its showroom presence during the festive season.

Hero MotoCorp: Honda Motorcycle and Scooter India has surpassed Hero MotoCorp in retail sales of two wheelers for September 2024, claiming a 27.73 per cent market share. However, both companies experienced declines in sales, with Honda’s figures down 4.53 per cent year-on-year to 333,927 units in September, while Hero MotoCorp’s figures declined 22.95 per cent, with total sales at 271,390 units. 

Nestlé India: Suresh Narayanan, the Chairman and Managing Director of Nestlé India, is set to retire next July after a transformative tenure, including the revival of the Maggi brand. Under his leadership, Nestlé India's profit surged nearly seven-fold, showcasing a remarkable turnaround. The company has nominated former Amazon country head Manish Tiwary as its new managing director, effective August 1, 2025. 

Tata Motors: Jaguar Land Rover, owned by Tata Motors, reported a 3 per cent decline in retail sales in Q2, despite a 3 per cent increase in the first half of the fiscal year. The company anticipates a production recovery in the second half as aluminium supply issues get resolve.

Ashok Leyland: The vehicle maker plans to launch its first hydrogen-powered truck within 18-24 months and has commenced deliveries of electric trucks to Billion Electric Mobility. The company is focused on advancing eco-friendly transportation solutions and expanding its electric vehicle lineup.

Ola Electric: The company has reportedly received a show cause notice from Central Consumer Protection Authority due to rising consumer complaints regarding service issues. The company has 15 days to respond to allegations of unfair trade practices and misleading advertisements, amid growing public criticism.

Procter & Gamble: As the FMCG giant invests in understanding quick commerce consumer behavior, its growth strategy in India is focused on optimising supply chains through data analytics and AI to enhance operational efficiency and profitability.

Morepen Laboratories: The company plans to separate its medical devices business, potentially unlocking significant value. It has projected a growth rate of 25-28 per cent in this segment and plans to expand glucometer production.

AstraZeneca India: With its two global capability centers in India driving innovation and digital transformation, the company aims to meet its ambitious $80 billion revenue target by 2030. Its hiring plans indicate a strong commitment to growth and technological advancement.

Bank of Baroda: The appointment of cricket legend Sachin Tendulkar as brand ambassador could boost BoB’s visibility and appeal. The introduction of the ‘bob Masterstroke Savings Account’ aligns with its strategy to attract premium clients.

Emami: The FMCG company is actively seeking inorganic growth opportunities in health foods, pet care, and nutraceuticals. Its focus on quick commerce and positive outlook for the upcoming festival season could drive revenue growth.

Hitachi Energy India: The company's commitment to invest Rs 2,000 crore in energy transition products and high-voltage technology reflects its long-term growth strategy. Strengthening supply chains and expanding manufacturing capabilities are key components of its plan.