Indian equity markets shot up viciously on 13th December with the Sensex and the NIFTY closing significantly higher, after a sharp fall in the morning. The Sensex surged 843.16 points (+1.04%) to reach 82,133.12, while the NIFTY advanced 219.60 points (+0.89%) to 24,768.30. The market's recovery was driven primarily by index heavyweights, supported by several positive economic indicators. A gradual reduction in food inflation and strategic price increases by consumer companies contributed to sector outperformance. Market sentiment was further bolstered by anticipation of a revival in consumer spending, particularly during the festive season and year-end holidays.
The IT sector received additional momentum from expectations of increased US spending. Simultaneously, India's retail inflation dropped to 5.48% in November, falling within the Reserve Bank of India's (RBI’s) target range, due to easing food prices. This development potentially creates room for a rate cut at the February monetary policy meeting.
Internationally, US producer price inflation data reinforced investor expectations of a potential 25bps (basis points) rate cut by the Federal Reserve on 18 December 2025, along with projections of a more measured policy easing approach throughout 2025. These factors, collectively, contributed to the market's positive performance. The trends of the major indices in the course of the week's trading are given in the table below:
News
Navin Fluorine International’s wholly-owned subsidiary—Navin Fluorine Advanced Sciences—commenced commercial operations of the plant for the manufacture and supply of a key fluoro specialty chemical in Dahej (Gujarat).
Supriya Lifescience achieved two significant milestones, strengthening its position in international markets. The company has acquired approval from Brazil's health authority, ANVISA (Agencia Nacional de Vigilancia Sanitaria), for Esketamine Hydrochloride which is a major step in growing its product range in Brazil and the rest of LATAM (Latin America). Supriya Lifescience is the first firm in Brazil to have received regulatory permission for this highly specialised pharmaceutical. Esketamine hydrochloride is a vital drug to be used for treating mental illness and is likely to significantly impact the LATAM market. This approval will enable the company to provide state-of-the-art, high-quality healthcare solutions in a market where demand for novel, reasonably priced drugs is growing.
Zaggle Prepaid Ocean Services (Zaggle) entered into an agreement with HDFC Bank (HDFC). As per the agreement, HDFC credit cards, bundled with Zaggle software, will be offered to corporate customers across industries. The order is to be executed within three years.
Hyundai Motor India (HMIL) plans to set up nearly 600 public electric vehicle (EV) fast-charging stations across the country in the next seven years. The company will have a network of 50 fast public charging stations by the end of December 2024. This ambitious initiative underscores HMIL's commitment to fostering sustainable mobility and is poised to play a pivotal role in India's transition to cleaner energy. To date, the company's charging network has facilitated around 50,000 charging sessions, dispensing over 730,000 units of energy to more than 10,000 Hyundai and non-Hyundai EV customers.
Bajaj Finserv aimed to achieve Rs3 lakh crore in total income and Rs20,000 crore in profit after tax by FY28-29. The company plans to expand its customer base to 1.9mn (million)-2mn and increase its retail credit share to 3.8%-4.2% by FY28-29. Bajaj Finserv has approved the allotment of secured redeemable non-convertible debentures (NCDs) worth Rs1,000 crore through private placement.
Swiggy introduced 'One Blck', an invite-only premium membership programme priced at Rs299 for three months, targeting select customers with exclusive benefits.
The Supreme Court has initiated proceedings against Reliance Infrastructure's subsidiary and Axis Bank's managing director (MD), demanding explanation for failing to refund over Rs4,500 crore to the Delhi Metro Rail Corporation as previously directed.
Tata Power Renewable Energy formed a partnership with Tivolt Electric to collaborate on EV charging infrastructure.
Mahindra & Mahindra's (M&M’s) last-mile mobility division partnered with Vidyut to offer EV battery rental services, aiming to improve EV accessibility and affordability.
INOX Wind announced plans to establish a solar module manufacturing unit in Gujarat with an initial 1.2GW (gigawatt) capacity by March 2025. It aims to achieve 5GW solar module and 2.5GW solar cell production capacity by 2026, with a projected capital expenditure (capex) of Rs1,500 crore. This move marks its entry into solar module manufacturing, potentially diversifying its renewable energy portfolio.
Infosys announced collaboration with RheinEnergie to assist enterprises in driving their energy transition and sustainability initiatives. This partnership aims to help businesses improve their energy efficiency by up to 30%-40%, while simultaneously working towards their de-carbonisation goals.
The insurance regulatory and development authority of India (IRDAI) will consider regulations to limit insurance company’s dependence on parent banks. This potential move, could particularly affect various life insurance companies like HDFC Life Insurance, SBI Life insurance, ICICI Prudential Life Insurance (which has strong connection to its parent bank). The regulator wants to ensure more independent operations and reduce potential conflicts of interest in the insurance sector.
HDFC Bank received a warning letter from the Securities and Exchange Board of India (SEBI) for non-compliance with regulations related to merchant banking, capital issuance, disclosure requirements and insider trading prevention. The warning follows a periodic inspection of the Bank's investment banking activities. HDFC Bank stated that it will take steps to address the concerns and informed that this move will have no significant financial impact.
Tata Communications launched Kaleyra AI, an artificial intelligence (AI) suite for customer engagement and business analytics, set for beta testing in early 2025.
Orders
Kernex Microsystems India secured a Rs2,041 crore order from Chittaranjan Locomotive Works for 2,500 on-board KAVACH (rail signalling systems) equipment sets.
L&T-Cloudfiniti, a subsidiary of Larsen & Toubro (-1.45%), signed a 10-year contract with a leading cloud service-provider for 6MW IT load capacity at its Sriperumbudur facility (near Chennai), marking its first significant data centre customer.
BEML (Bharat Earth Movers Limited) won Rs136 crore contract from the ministry of defence. The order is for high mobility vehicles, with 8x8 configuration, likely for military applications.
Vishnu Prakash R Punglia received contract from the North Western Railway for construction of major and important bridges and other ancillary works. The tender, evaluated and accepted by the competent authority, has a total value of Rs102.93 crore.
Waaree Energies received an order for supply of solar modules of up to 1GW from a renowned customer engaged in the business of owning, developing and operating renewable power projects in India. The supply of solar modules is scheduled to commence in FY24-25 and FY25-26.
Roto Pumps’ subsidiary—Roto Energy Systems—secured over 400 orders for its newly launched solar submersible pumping systems under the brand name ‘Roto Rudra’. The orders span Australia, South Africa, Chhattisgarh and Maharashtra.
Bajaj Healthcare has secured new contract development and manufacturing organisation (CDMO) contracts with UK and EU-based companies for 15 additional active pharmaceutical ingredients (APIs), building on a similar agreement made in February 2024. The new pipeline consists of off-patent generic APIs and patented molecules. Additionally, Bajaj Healthcare has received TGA approval, allowing it to enter CDMO deals in Australia, New Zealand and South Africa.
Bharat Electronics received new orders valued at Rs634 crore (approximately US$76mn).
Shakti Pumps was awarded contract worth Rs754 crore for 25,000 solar water pumps for the entire state of Maharashtra under Magel Tyala Saur Krushi Pump Scheme.
Dee Development won a new order valued worth Rs140 crore from an international entity for the supply of pre-fabricated pipe spools.
Tech Mahindra announced integration with ServiceNow to deliver generative AI-powered enterprise service management solutions.
NBCC was appointed by national company law appellate tribunal (NCLAT) as project management consultant for completing 16 Supertech projects involving 49,748 houses across four states, with an estimated construction cost of Rs9,445 crore. NBCC will earn 8% in fees.
Investment/ Acquisition / Stake Stale
Coca-Cola sold 40% stake in its Indian bottling arm, Hindustan Coca-Cola Beverages Limited, to the Jubilant Bhartia group, marking a significant corporate restructuring in the Indian beverage market.
PG Electroplast approved a qualified institutional placement (QIP) issue price of Rs699 per share, representing a 0.88% discount to the floor price of Rs705.18. The company plans to raise Rs1,500 crore by issuing 21.4mn shares to qualified institutional buyers. The proceeds will be utilised for subsidiary investments, debt repayment and general corporate purposes.
Paisalo Digital successfully raised the first tranche of US$50mn in foreign currency convertible bonds (FCCB).
Biocon divested 8mn equity shares of Syngene International via a block deal. As a result, Biocon's stake in Syngene has decreased to 52.46%. The transaction raised around Rs686 crore rupees for Biocon.
Asian Granito India entered into a joint venture (JV) agreement with Shudh Investments and Klyn Stone. Under this agreement, the company will acquire shares in Klyn AGL. This move indicates a strategic partnership or potential expansion for Asian Granito India in the stone or tile industry.
A special court in Mumbai granted approval to monetize properties valued at Rs2,566 crore owned by Mehul Choksi, in relation to the Punjab National Bank (PNB) (+1.56%) fraud case.
Alkem Laboratories received approval to transfer its trade generics business to its subsidiary, Alkem Wellness. This move indicates a strategic restructuring, potentially aimed at optimising the company’s business model or concentrating on its core competencies. Alkem Laboratories disclosed that the net worth of its trade generics business as of 31 March 2024 is approximately Rs519 crore, and the company expects to receive consideration of up to Rs750 crore for this segment.
Equitas Small Finance Bank approved the allotment of non-convertible debentures (NCDs) worth Rs500 crore. This decision represents a significant financial move for the Bank, potentially aimed at raising capital or refinancing existing debt.
LG Electronics Korean parent company will sell 15% of its equity in the Indian subsidiary through an initial public offering (IPO). The IPO is expected to raise over Rs15,000 crore before the end of the current financial year, valuing LG Electronics India at approximately US$12.5bn (billion).
Vinati Organics invested Rs39.65 crore in its unit, Veeral Organics, by subscribing to 39.65mn equity shares through a rights issue. This investment is aimed at expanding the company's business in the specialty chemicals sector.
RBI approved the Burman family's proposal to make an open offer for an additional 26% stake in Religare Enterprises. The approval includes conditions such as maintaining the current management structure. The open offer is valued at Rs2,116 crore and RBI's approval is valid for one year.
Bikaji Foods received national company law tribunal’s (NCLT’s) approval for amalgamation with Vindhyawasini Sales Private Limited. The order dispenses with the need for shareholder and creditor meetings for this corporate action.
Punjab & Sind Bank had planned to raise Rs3,000 crore through infrastructure bonds in December 2024. The 10-year bonds are rated 'AA' and will be listed on the National Stock Exchange (NSE).
Earnings
Bajaj Holdings & Investment reported Q2FY24-25 consolidated net sales of Rs292.80 crore, up 97.69% quarter-on-quarter (q-o-q) and 21.97% year-on-year (y-o-y). Net profit for the quarter stood at Rs1436.36 crore, a 3.67% increase from that in the previous year.
Top gainers and losers of the major indices for the week are given in the table below:
