KPI Green's Bright Future
- 03rd December 2024
Aaj Ka Bazaar
On Monday, the S&P 500 and the Nasdaq Composite closed at all-time highs as markets assessed manufacturing sector data for November and remarks by Federal Reserve officials. On the Asiatic front, Asian stocks began positively today, buoyed by a strong performance in the tech sector after Wall Street reached record highs overnight. The dollar traded close to a six-week low against the yen as traders considered the outlook for interest rates in both the United States and Japan. However, Chinese stocks faced some challenges, with Hong Kong’s Hang Seng Index declining slightly and mainland blue-chip stocks also dropping. Considering the global market cues, the Indian benchmarks will likely have a muted start. Technology companies earning substantial revenue from the U.S. will be in focus after data indicated improving manufacturing activity in the world’s largest economy. On a stock-specific note, Solar Industries India will be in focus as the company and its subsidiary have received export orders worth Rs. 2,039 Crores for Supply of Defence Products, to be delivered over a period of 4 years.
Markets Around Us
BSE Sensex –79,519.29 (0.15%)
Nifty 50 – 24,367.50 (0.38%)
Bank Nifty – 52,357.95 (0.48%)
Dow Jones – 44,781.01 (0.01%)
Nasdaq – 19,403.55 (0.96%)
FTSE – 8,312.89 (0.31%)
Nikkei 225 – 39,275.91 (1.98%)
Hang Seng – 19,553.19 (0.01%)
Sector: : Power Generation
KPI Greens gains on coal india order
KPI Green Energy’s stock is in focus today after securing its largest-ever order worth ₹1,311 crore from Coal India. At 9:44 am, the stock was trading at ₹803.45, up 3.11% on the BSE. The company will build a 300 MW solar power plant at GIPCL’s Solar Park in Gujarat on an EPC (engineering, procurement, and construction) basis, including five years of maintenance. This win follows the company emerging as the successful bidder for the project on November 30. KPI Green Energy also posted strong Q2 results with a 101% rise in net profit to ₹69.83 crore year-on-year. Over the past year, the stock price has more than doubled, with its 52-week high at ₹1,116 and low at ₹375. Currently, it trades 28% below its peak but is up 114% from its low, making it a stock to watch for potential growth.
Why it Matters:
KPI Green Energy’s largest-ever order strengthens its position in the renewable energy sector and showcases its ability to handle large-scale projects. The company’s strong financial performance and significant stock growth underline its potential for long-term value creation. This project also boosts investor confidence in its growth trajectory and execution capabilities.
Markets Around Us
ULTRACEMCO – 11630.20 (3.82%)
APOLLOHOSP – 7064.25 (3.45%)
GRASIM – 2686.00 (3.06%)
NIFTY 50 LOSERS
HDFCLIFE – 640.20 (-2.67%)
NTPC – 358.35 (-1.46%)
CIPLA – 1513.00 (-1.36%)
Sector: Tobacco Products
GST hikes hits tobacco stock hard
Shares of ITC, Godfrey Phillips, and VST Industries fell on December 3 due to reports suggesting an increase in GST on cigarettes, aerated drinks, and other “sin goods” from 28% to 35%. The proposed tax hike, if approved by the GST Council on December 21, could significantly impact cigarette volumes as higher prices may lead to reduced consumer spending and increased demand for cheaper, illicit tobacco products. At market open, ITC shares dropped by 2.16% to ₹466.85, Godfrey Phillips declined 2.7% to ₹5,605.30, and VST Industries slipped 1.7% to ₹319.75. Analysts noted that stable taxes had previously supported volume growth, but the unexpected proposal raises concerns about future sales and margins. The last hike in tobacco taxes was 2% in February 2023, and any further increase could disrupt the recovery in the cigarette business for these companies.
Why it Matters:
The proposed GST hike to 35% on tobacco products could significantly reduce cigarette sales, impacting revenue for companies like ITC and Godfrey Phillips. Higher taxes may drive consumers toward cheaper, illicit products, hurting the legal market. This unexpected move could disrupt industry growth and investor confidence in tobacco stocks.
Around the World
Asian markets saw gains on Tuesday, driven by strength in technology stocks, especially in Japan and South Korea, while Chinese shares fell due to new U.S. export restrictions targeting 140 Chinese companies. Japan’s Nikkei 225 rose 1.6%, with tech firms like Tokyo Electron and Advantest gaining over 3%, benefiting from reduced competition from Chinese chipmakers. South Korea’s KOSPI also climbed 1.6%, supported by Samsung Electronics and SK Hynix. However, Chinese markets struggled, with the CSI 300 and Shanghai Composite falling, as U.S. restrictions hit Chinese chipmakers like NAURA Technology and SMIC, leading to sharp declines in their stocks. These restrictions are expected to benefit non-Chinese semiconductor firms globally. Meanwhile, investors are awaiting Federal Reserve Chair Jerome Powell’s speech and upcoming U.S. economic data for insights on interest rate policies, while trade tensions between the U.S. and China remain a key concern.
Option Traders Corner
Max Pain
Nifty 50 – 24,300
Bank Nifty – 52,500
Nifty 50 – 24,195 (Pivot)
Support – 24,089, 23,902, 23,796
Resistance – 24,382, 24,488, 24,675
Bank Nifty – 52,000 (Pivot)
Support – 51,802, 51,496, 51,299
Resistance – 52,306, 52,503, 52,809
Did you know?
FPI buying resumes strong
Foreign Portfolio Investors (FPIs) made net purchases of ₹10,000 crore in Indian equities, breaking a 36-session selling streak. The shift came amid positive market sentiment following the BJP-led alliance’s win in Maharashtra. This marks renewed foreign interest in India’s stock market.
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