Indian equity markets are expected to see a muted opening on Tuesday, with the GIFT Nifty indicating a subdued start. The index was trading 7 points or 0.03% higher at 24,429, signaling a negative bias for domestic indices such as the NSE Nifty 50 and BSE Sensex. On Monday, the Nifty 50 closed 145 points or 0.60% higher at 24,276, while the Sensex rose by 445 points or 0.56% to finish at 80,248. Investors are likely to keep a close eye on key stocks as they react to domestic and global news. Below is a roundup of stocks to watch on December 3, 2024:
Adani Power
Adani Power is facing significant headwinds after Bangladesh decided to cut the power it imports from the company by 50%. The decision is attributed to reduced demand during the winter months. This move comes amid ongoing disputes over unpaid dues, which reportedly run into hundreds of millions of dollars. On October 31, Adani Power had already reduced its supply to Bangladesh, citing delays in payments as the country faces a foreign exchange crisis. The ongoing payment delays and strained relations with Bangladesh could impact Adani Power’s revenue stream in the short term, making it a stock to watch in today’s trade.
ONGC
Oil and Natural Gas Corporation (ONGC), one of India’s largest energy companies, is diversifying its portfolio by exploring the mining of offshore minerals. According to a senior executive at ONGC, the company intends to leverage its technical expertise in offshore drilling to tap into mineral exploration. This move signals ONGC’s ambitions to expand beyond its core oil and gas business, particularly in the growing offshore mining sector. The announcement has the potential to open up new revenue streams for the company, making it an interesting stock to watch for investors looking for diversification strategies.
Tata Consumer Products
Tata Consumer Products is ramping up its vending machine business. The company plans to double its number of beverage vending machines from over 2,000 to 4,000 by the end of FY25. This expansion will focus on tapping into the hotels, restaurants, and catering (HORECA) segment, as well as corporate offices. The vending business was launched in 2023, starting with fewer than 700 machines. The rapid growth in this segment highlights the company’s focus on diversifying its revenue streams and gaining a larger market share in the beverage sector. Investors may want to keep an eye on this stock as the vending business could offer substantial growth potential.
Swiggy
Swiggy, India’s leading food delivery platform, has announced an expansion of its 10-minute food delivery service, Bolt, to more than 400 cities across India. Initially launched in October 2024 in major cities like Hyderabad, Mumbai, Delhi, Pune, Chennai, and Bangalore, the service is now set to reach tier-2 and tier-3 cities including Roorkee, Guntur, Warangal, Patna, Solan, Nashik, and Shillong. This rapid expansion of Bolt positions Swiggy as a major player in the quick-service food delivery space, and its growth in smaller cities could help the company capture a broader customer base.
Torrent Power
Torrent Power has announced plans to raise up to Rs 5,000 crore through a Qualified Institutional Placement (QIP). The company has set a floor price of Rs 1,555.75 per share for this offering, although the number of shares to be issued and the total issue size has not been disclosed. This move is part of Torrent Power’s strategy to strengthen its financial position and fund its expansion plans. Investors will be watching closely to see how the market responds to this capital raising exercise, which could have an impact on the company’s stock price in the short term.
Pricol
Pricol, a leading automotive and industrial components manufacturer, has announced the acquisition of Sundaram Auto Components’ (SACL) Injection Moulding business through its wholly-owned subsidiary, Pricol Precision Products Private Limited. This acquisition is expected to add approximately Rs 730 crore to Pricol’s consolidated topline. The integration of SACL’s business will enhance Pricol’s product portfolio and is seen as a strategic move to strengthen its position in the automotive components industry. The deal is likely to be positive for Pricol’s financials, and investors may view this acquisition as a step towards further consolidation in the sector.
Hindustan Unilever
Hindustan Unilever (HUL) has complied with the Income Tax department’s directive to pay Rs 192.55 crore, which represents 20% of the total outstanding demand of Rs 962.75 crore. This demand relates to a dispute over the tax deduction at source (TDS) associated with a payment made for the acquisition of intellectual property rights related to the Indian Health and Food Division (HFD) from GlaxoSmithKline (GSK). While HUL has paid the amount, the dispute is far from over, and the final resolution could impact the company’s financials in the future. Investors will be keeping an eye on this development to assess any potential impact on the stock.
