China Boosts HEG Demand
- 05th December 2024
Aaj Ka Bazaar
On Wednesday, Wall Street’s main indexes advanced, with the S&P 500 and Nasdaq reaching record highs, driven by gains in technology stocks. Investors reacted to comments from U.S. Federal Reserve Chair Jerome Powell, who stated that the economy is stronger than the central bank had anticipated in September. Whereas, Asian stocks open mixed today as a ofter read on U.S. services data boosted investor confidence in the Federal Reserve lowering interest rates. Further, Hong Kong stock market is under pressure as investor are nervous about the effects of political instability in South Korea and France. Considering the global market cues, the Indian benchmarks will likely have a muted start, extending a four-session winning streak, as investors await the Reserve Bank of India’s (RBI) rate decision on Friday. On a stock-specific note, Indus Towers will be focused as the British telecom company Vodafone will sell a 3% stake in Indus Towers to clear its debt of Rs.856 crores, and use the residual amount to pay outstanding dues of its Indian venture, Vodafone Idea.
Markets Around Us
BSE Sensex –80,851.04 (-0.13%)
Nifty 50 – 24,423.05 (0.05%)
Bank Nifty – 53,153.00 (-0.21%)
Dow Jones – 44,984.84 (-0.06%)
Nasdaq – 19,732.87 (1.29%)
FTSE – 8,335.81 (-0.28%)
Nikkei 225 – 39,390.52 (0.29%)
Hang Seng – 19,547.01 (-1.00%)
Sector: : Electrodes & Refractories
HEG shares surge amid block deal
Shares of HEG extended their winning streak for the third day, jumping over 6% to a near six-year high of ₹619 on December 5, following a ₹172 crore block deal. Around 28.8 lakh shares, representing 6% of the company’s stake, traded at ₹600 per share, a premium to the previous day’s closing price. HEG’s stock has surged over 40% in the past week, driven by news of China restricting graphite exports, sparking concerns of global supply shortages. This move could boost HEG’s demand as it recently expanded its graphite electrode plant capacity to 1,00,000 tonnes, the largest in the western world, giving it a cost advantage. In the September quarter, HEG achieved 80% capacity utilization, the highest globally, and remains confident about long-term growth despite pricing pressure. With these developments, HEG is positioned to benefit from potential supply constraints and improved market prospects.
Why it Matters:
HEG’s stock surge reflects its strategic advantage as global graphite supply faces potential shortages due to China’s export restrictions. Its recent capacity expansion and high utilization rates position it to capitalize on increased demand. These factors could significantly boost earnings and strengthen its market leadership.
NIFTY 50 GAINERS
BHARTIARTL – 1598.60 (0.92%)
TCS – 4387.25 (0.75%)
TECHM – 1772.45 (0.73%)
NIFTY 50 LOSERS
BAJAJ-AUTO – 8833.50 (-1.84%)
NTPC – 366.60 (-1.65%)
POWERGRID – 320.15 (-1.51%)
Sector: Pharmaceuticals
Torrent Pharma Eyes Anti-Diabetes Brand
Torrent Pharmaceuticals’ shares are in focus as the company announced the acquisition of three anti-diabetes brands—Cospiaq, Cospiaq Met, and Xilingio—from Germany’s Boehringer Ingelheim, with the deal set to complete by March 2025. Torrent has been co-marketing these brands in India since 2022, leveraging empagliflozin, a cutting-edge SGLT-2 inhibitor used to manage blood sugar levels in adults with type 2 diabetes. The acquisition strengthens Torrent’s position in the diabetes care segment, enhancing its product portfolio. In the September 2024 quarter, Torrent posted a strong 40% growth in net profit, reaching ₹460 crore. Additionally, the company received an Establishment Inspection Report (EIR) from the USFDA for its Pithampur facility in November, boosting its global regulatory compliance credentials. These developments signal Torrent’s growth trajectory and its focus on expanding its presence in high-growth therapeutic areas.
Why it Matters:
The acquisition strengthens Torrent Pharma’s position in the growing diabetes care market with established brands. Empagliflozin-based therapies are innovative and crucial for managing type 2 diabetes, a major health concern. Combined with strong earnings and regulatory approvals, this move boosts Torrent’s growth potential and market confidence.
Around the World
Asian stocks mostly rose on Thursday, supported by Wall Street’s third consecutive record high, driven by a tech rally after Salesforce’s strong earnings. U.S. Federal Reserve Chair Jerome Powell highlighted the strength of the U.S. economy while hinting at a cautious approach to future rate cuts, providing some regional optimism. However, South Korea’s KOSPI index extended losses amid political turmoil after President Yoon’s brief declaration of martial law led to calls for impeachment, disrupting markets despite a 40 trillion won stabilization fund announcement. Broader Asian sentiment remained cautious, with Japan’s Nikkei and Australia’s ASX 200 gaining on positive economic data, while Hong Kong’s Hang Seng fell over 1% due to U.S.-China trade tensions. China’s markets remained stable, and India’s Nifty 50 futures pointed to a positive open ahead of the RBI’s rate decision. Investors globally await U.S. nonfarm payroll data for clarity on the Federal Reserve’s interest rate direction.
Option Traders Corner
Max Pain
Nifty 50 – 24,450
Bank Nifty – 53,600
Nifty 50 – 24,468 (Pivot)
Support – 24,364, 24,262, 24,157
Resistance – 24,571, 24,675, 24,778
Bank Nifty – 53,113 (Pivot)
Support – 52,839, 52,411, 52,137
Resistance – 53,540, 53,815, 54,242
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.
Have you checked our latest Brand Ad
