Stake sale at IDFC First Bank, Jio increases stake, Dr. Reddy’s partners Sanofi, BHEL-Adani contract

Opening Bell:

Gift Nifty is down by 41.5 points in the early morning trade, indicating a negative opening for Indian stock market

Asian markets saw a downturn on Thursday, contrasting with Australian stocks reaching an all-time high. Japan’s Nikkei 225 experienced a 0.98% drop, while the Topix index plummeted by 1.08%. South Korea’s Kospi fell by 0.19%, and the Hang Seng index futures in Hong Kong indicated a lower opening.

In the US, stocks performed positively on Wednesday, led by gains in the Dow and the S&P 500 achieving a new closing record. This was largely attributed to drugmaker Merck’s performance. Investors remained focused on forthcoming inflation data and Federal Reserve commentary for insights into the future interest rate trajectory. The Dow Jones Industrial Average surged by 477.75 points, or 1.22 percent, closing at 39,760.08, while the S&P 500 climbed by 44.91 points, or 0.86 percent, reaching 5,248.49. The Nasdaq Composite also rose by 83.82 points, or 0.51 percent, to 16,399.52.

Stocks News:

👉 IDFC First Bank: Cloverdell Investment, an affiliate of Warburg Pincus, is contemplating the sale of its stake in IDFC First Bank, a private lender. According to CNBC-TV18, Cloverdell Investment may divest its entire 2.25 percent stake through block deals scheduled for March 28. The anticipated offer size is approximately ₹1,191.40 crore, involving the sale of around 15.9 crore shares. The base price is fixed at ₹75 per share, representing a 4 percent discount to the current market price.

👉 io Financial Services: Presently holding a 76.98 percent stake in Jio Payments Bank (JPBL), Jio Financial intends to enhance its shareholding in JPBL to 77.25 percent. JPBL, a collaboration between Jio Financial and the State Bank of India, will see Jio Financial subscribing to 40 lakh equity shares worth Rs 10 each of JPBL for cash at par, totaling Rs 4 crore for its operational requirements.

👉 Dr. Reddy’s: The renowned pharmaceutical company based in Hyderabad has announced an exclusive partnership with Sanofi Healthcare India to augment the promotion and distribution of Sanofi’s vaccine brands across India. This alliance will cover both paediatric and adult vaccine brands, including Hexaxim, Pentaxim, Tetraxim, Menactra, FluQuadri, Adacel, and Avaxim 80U. These brands collectively generated sales of approximately ₹426 crore ($51 million) as per IQVIA MAT February 2024. Sanofi affirms its ownership retention, continuing manufacturing, and importation of these vaccines into India.

👉 Bharat Heavy Electricals, Adani Power: As per an exchange filing, Bharat Heavy Electricals Limited (BHEL) has secured a contract from Adani Power to establish the 2×800 MW Raigarh Phase-II Thermal Power Plant in Raigarh, Chhattisgarh. The total project cost, excluding GST, is estimated at ₹4,000 crore. Under this agreement, BHEL will supply equipment such as Boiler, Turbine, and Generator, and supervise the erection and commissioning of the 2×800 MW power project, based on supercritical technology. The first unit is slated for delivery within 31 months of contract execution, with the second unit expected within 35 months.

👉 Foreign institutional investors (FIIs) net bought shares worth Rs 2,170.32 crore, while domestic institutional investors (DIIs) purchased Rs 1,197.61 crore worth of stocks on March 27, provisional data from the NSE showed.

Domestic and International Events

• In the initial half of the forthcoming financial year, the central government plans to borrow ₹7.50 lakh crore, constituting 53% of its total target for FY25. This borrowing will primarily occur through the issuance of dated government securities, supplemented by ₹12,000 crore worth of sovereign green bonds. The market borrowing projection for FY25 stands at ₹14.13 lakh crore, as indicated in the interim budget.

• At the Bank of Japan’s March meeting, there was a divergence of views among board members regarding the strength of the economy in light of ending its negative interest rates policy. While some policymakers advocated for a cautious approach in phasing out ultra-loose monetary policy, citing concerns about the economy’s readiness for rapid interest rate hikes, others held differing perspectives.

• Gold prices saw an uptick on Wednesday as investors awaited U.S. inflation data, which could offer insights into the Federal Reserve’s policy trajectory.

• Crude oil prices surged, poised for a robust quarterly increase, primarily driven by expectations of OPEC supply reductions. West Texas Intermediate climbed 0.49% to $81.75 per barrel following a minor two-day decline, while Brent crude saw a 0.31% rise to $86.36.