Adani Boosts Thermal Power

Aaj Ka Bazaar

Indian equity indices, BSE Sensex and Nifty 50, are poised for a lower start on Wednesday, impacted by a global market sell-off following weak US manufacturing data that revived recession fears. GIFT Nifty futures were trading nearly 200 points below the Nifty's previous close, signalling a gap-down opening. Wall Street experienced a sharp decline overnight as optimism around artificial intelligence faded, setting a negative tone for Asian markets, with MSCI's Asia-Pacific index down 0.44%. Investors are also bracing for a series of US economic data releases this week, including job openings, jobless claims, and the crucial nonfarm payrolls report on Friday, which could influence the Federal Reserve's rate cut decision. Meanwhile, Torrent Power will be in focus after it signs a new MoU with Maharashtra government for pumped storage projects, reducing the capacity to 5,600 MW from 5,700 MW.

Markets Around Us?

BSE Sensex - 82,180.07 (-0.46%)

Nifty 50 - 25,149.00 (-0.52%)

Bank Nifty - 51,364.95?(-0.63%)

Dow Jones - 40,788.26 (-0.36%)

Nasdaq - 17,136.30 (-3.26%)

FTSE - 8,298.46 (-0.79%)

Nikkei 225 - 37,281.46 (-3.63%)

Hang Seng - 17,462.25 (-1.08%)

Sector: Banking

AU SFB applies to become universal bank

AU Small Finance Bank has applied to the Reserve Bank of India (RBI) for permission to transition from a small finance bank to a universal bank. If approved, this change will allow AU to follow easier regulatory rules. For example, its capital adequacy requirement would drop from 15% to around 11.5%, and the priority sector lending norm would reduce from 75% to 40%. Additionally, AU would no longer need to ensure that at least 50% of its loans are less than ?25 lakh. This shift could also improve the bank’s brand identity by shedding the "small finance bank" label. As per RBI's criteria, only profitable, listed small finance banks with a minimum ?1,000 crore net worth and low bad loans can apply for this transition. Currently, AU and Ujjivan Small Finance Bank meet these conditions. AU's board has formed a committee to oversee the application process.

Why it Matters:

AU Bank’s move towards becoming a universal bank could lead to enhanced growth potential and improved investor sentiment, provided the transition is managed effectively.

NIFTY 50 GAINERS

ASIANPAINT - 3,234.00?(2.51%)

BPCL - 360.75?(1.51%)

GRASIM - 2,741.00?(1.26%)

NIFTY 50 LOSERS

COALINDIA - 503.60 (-3.08%)

ONGC - 314.50 (-2.39%)

WIPRO - 525.05?(-2.05%)

Sector: Power

Adani Power plans to triple capacity

Adani Power, India's largest private thermal power producer, is planning to triple the capacity of its Kawai power plant in Rajasthan with an investment of up to ?18,000 crore. The current 1,320 MW plant will be expanded in two phases of 1,600 MW each, taking the total capacity to 4,520 MW over the next few years. The company has already placed a ?10,000 crore order with Bharat Heavy Electricals Ltd for the expansion. Adani Power is also expanding its thermal power capacity through new projects and acquisitions, aiming to double its current capacity of 15 GW to 31 GW. It has secured fuel supply agreements and power purchase deals for 6,400 MW. Additionally, Adani Power is working on three more projects in Raipur, Raigarh, and Mirzapur. The company recently received approval from the National Company Law Tribunal for a ?3,336 crore resolution plan to acquire Coastal Energen’s thermal power plant in Tamil Nadu.

Why it Matters:

These developments suggest that Adani Power is well-positioned to capture a larger market share in India's power sector, potentially resulting in strong returns for investors.

Around the World

Asian shares and global stock futures dropped sharply on Wednesday, led by a big decline in technology stocks, as concerns about global growth made investors pull out of riskier assets. Tokyo and Taipei's stock markets fell more than 3%, while Asia’s broad MSCI index was down 1.6%. U.S. markets also tumbled after the holiday, with Nvidia's stock losing $279 billion in value, cooling investor excitement over artificial intelligence. This tech sell-off spread to Asia, with companies like Japan’s Advantest and Taiwan’s TSMC falling significantly. U.S. stock futures also continued to decline, as did European futures. Concerns over weak U.S. data and China’s struggling economy, along with falling oil prices, added to the negative sentiment. Brent crude hit its lowest price since December, dropping to $73.14 per barrel. Hong Kong and China’s stock markets also followed the regional trend, with notable declines.

Option Traders Corner

Max Pain

Nifty 50 - 25,100

Bank Nifty - 51,400

Nifty 50 - 25,729 (Pivot)

Support - 25,236, 25,193, 25,150

Resistance - 25,322, 25,365, 25,408

Bank Nifty - 51,559 (Pivot)

Support - 51,369, 51,049, 50,859

Resistance - 51,879, 52,069, 52,389

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TVS Motors sales goes north

The number of two-wheelers TVS Motor Company sold in August 2024 stood at 378,841, up 14% from 332,110 units in the year-ago period.

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