Renewable Giant Seeks US$2B
Aaj Ka Bazaar
The US market fell sharply on Friday, and the yield on the 10-year note touched a six-month high. Recent economic data on inflation and retail sales and comments from senior Fed officials, including Chair Jerome Powell, weakened the case for a December rate cut by the Federal Reserve. Asian markets traded mostly higher this morning ahead of China's loan prime rate announcement and Japan's inflation data release. Indian market may open lower on Monday after the S&P 500 and Nasdaq notched their most considerable one-day losses in two weeks Friday. Investors will react to Q2FY25 results from top companies like Hero MotoCorp, Grasim Industries and Nazara Tech. They will also watch out for November services and composite PMI flash figures, which are expected on Friday, Nov 22.
Markets Around Us?
BSE Sensex - 77,042.23 (-0.69%)
Nifty 50 - 23,368.50 (-0.70%)
Bank Nifty - 50,227.35?(0.10%)
Dow Jones - 43,466.91 (0.05%)
Nasdaq - 18,686.19 (-2.21%)
FTSE - 8,063.61 (-0.09%)
Nikkei 225 - 38,233.29 (-1.06%)
Hang Seng - 19,655.58 (1.17%)
Sector: Renewable Energy
Adani Green looks to raise US$ 2bn from overseas bonds and loans
Adani Green Energy, India's largest renewable power company, plans to raise $2 billion through international bonds and loans in multiple tranches over the next few months. It is set to launch a $600 million bond issue soon, following a previous $1.2 billion bond offering canceled last month due to geopolitical concerns and investor demand for higher yields. This time, pricing is expected to be higher due to rising U.S. Treasury yields. Funds will support three Rajasthan-based wind and solar energy subsidiaries, with a private placement planned for another subsidiary early next year. The company seeks to replace short-term loans with long-term 20-year bonds to free up bank lines. It is also expanding its $3.4 billion construction framework with international banks to $5 billion. With 11.18 GW operational capacity and a goal of 50 GW by 2030, Adani Green recently added 2,868 MW and reported 20% revenue growth in Q2FY24.
Why it Matters:
The company's focus on scaling renewable projects and securing long-term financing strengthens its investment appeal amidst the global shift toward clean energy.
NIFTY 50 GAINERS
HEROMOTOCO - 4,817.00?(4.63%)
HINDALCO - 649.70?(3.56%)
HDFCBANK - 1,712.25?(1.15%)
NIFTY 50 LOSERS
TCS - 3,995.05 (-3.64%)
WIPRO - 546.70 (-3.53%)
DRREDDY - 1,187.45?(-3.20%)
Sector: Pharmaceuticals
Dr Reddy's lab recalls product from the US
Dr Reddy's Laboratories and FDC Ltd are recalling medications in the U.S. due to manufacturing issues, as reported by the FDA. Dr Reddy's U.S. subsidiary is recalling over 2,500 bottles of Morphine Sulfate extended-release tablets, used for severe pain relief, because of impurities and degradation issues. This Class II recall, which suggests reversible or low-risk adverse health effects, was initiated on October 22, 2024. Similarly, FDC Ltd is recalling over 155,000 bottles of Timolol Maleate ophthalmic solution, used for glaucoma treatment, due to defective containers that prevent the solution from being dispensed. This recall started on October 29, 2024. Such recalls highlight quality control challenges in the pharmaceutical supply chain, even as India remains the largest global supplier of generic medicines, exporting products to over 200 countries, including the U.S., Japan, and Europe. These events underscore the importance of stringent quality assurance for global market credibility.
Why it Matters:
Investors with a long-term horizon might focus on the robust demand for generics globally and India’s significant role in the pharmaceutical supply chain, which ensures sustained growth potential. Addressing these challenges could further strengthen these companies' operational frameworks and regulatory compliance.
Around the World
Global markets started the week on a cautious note, with key focus on Nvidia’s upcoming earnings and the Bank of Japan’s (BOJ) interest rate outlook. BOJ Governor Kazuo Ueda signaled that rate hikes depend on economic conditions but provided no clear timeline, leaving the yen weaker near 154.72 per dollar. Japan’s Nikkei fell 0.76%, while most Asian markets gained, with China’s indices rising over 1%. Nasdaq futures were up 0.6%, driven by optimism around Nvidia, whose Q3 results are expected to show strong AI-driven growth. In the U.S., Treasury yields held steady near multi-month highs, reflecting reduced expectations for aggressive Federal Reserve rate cuts amid inflation concerns tied to President-elect Trump’s proposed policies. The dollar remained near a one-year high, while oil prices stayed steady, and gold rebounded to $2,593 per ounce. Investors await more clarity from Fed and ECB speakers this week.
Option Traders Corner
Max Pain
Nifty 50 - 24,000
Bank Nifty - 50,900
Nifty 50 - 23,564 (Pivot)
Support - 23,452, 23,372, 23,260
Resistance - 23,644, 23,756, 23,836
Bank Nifty - 50,226 (Pivot)
Support - 49,892, 49,604, 49,269
Resistance - 50,514, 50,849, 51,136
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FPIs on a selling spree
The net sales made by foreign portfolio investors in the Indian equity market in November so far stood at ?7,111 crore, on top of a net outflow of ?1.14 lakh crore in October.