Highway Boost for HG
- 11th December 2024
Aaj Ka Bazaar
Wall Street indices closed in negative territory on Tuesday as investors awaited a key inflation report that could influence the Federal Reserve’s upcoming interest rate decision. The S&P 500 declined by 0.30%, while the Dow Jones Industrial Average dropped by 0.35%. Gains in the communication services sector partially offset losses in the tech sector. Of the 11 sectors in the S&P 500, only three finished in positive territory, as markets braced for the November CPI report, one of the final major data releases before the Fed’s December 17-18 meeting. Asian markets also reflected investor caution as they awaited US inflation data to gauge whether the Federal Reserve might cut or maintain interest rates next week. Meanwhile, Indian benchmark indices are expected to open on a muted note, influenced by primary market activities and mixed global cues. This is further indicated by the GIFT Nifty, which is trading flat. In stock-specific news, NTPC Green Energy’s subsidiary, NTPC Renewable Energy, secured a 500-megawatt solar power contract in the SECI auction. The project will deliver solar power at a tariff of 3.52 per kWh.
Markets Around Us
BSE Sensex –81,525.95 (0.02%)
Nifty 50 – 24,627.00 (0.07%)
Bank Nifty – 53,440.25 (-0.26%)
Dow Jones – 44,220.50 (-0.06%)
Nasdaq – 19,688.98 (-0.24%)
FTSE – 8,280.36 (-0.87%)
Nikkei 225 – 39,259.83 (-0.27%)
Hang Seng – 20,270.53 (-0.18%)
Sector: Civil Constructions
HG infra Gains on 763 cr deal
Shares of HG Infra Engineering rose over 5% to ₹1,532 in morning trade on December 11 after securing a ₹763.11 crore highway project from the Ministry of Road Transport and Highways (MoRTH). The project involves upgrading a 63.84-km stretch in Uttar Pradesh under the hybrid annuity mode (HAM) and is expected to be completed within two years. This is HG Infra’s second major order win in less than a month, following a ₹1,110 crore contract for battery energy storage systems announced in November. Despite a 16% drop in Q2 profit to ₹80.7 crore and a slight revenue dip, the company maintained stable operating performance, with improved margins of 24.3%. HG Infra’s stock, up 72% this year, continues to reflect market confidence in its growing project pipeline and operational resilience, making it a strong contender in the infrastructure space for traders and new investors alike.
Why it Matters:
This highlights HG Infra’s strong project pipeline and ability to secure high-value contracts, reinforcing its growth potential. The improved EBITDA margin shows operational efficiency despite revenue pressures, which is promising for investors. The stock’s 72% rally this year reflects market confidence, making it a key player in infrastructure development.
NIFTY 50 GAINERS
ULTRACEMCO – 12032.00 (2.44%)
GRASIM – 2699.80 (1.68%)
TATACONSUM – 939.10 (1.33%)
NIFTY 50 LOSERS
DRREDDY – 1228.80 (-0.93%)
HCLTECH – 1924.75 (-0.60%)
ICICIBANK – 1322.90 (-0.57%)
Sector: Banking
IOB Shares Surge on ₹1,359 Cr Refund
Shares of Indian Overseas Bank (IOB) rose 3.4% to ₹38.85 in morning trade on December 11 after the bank received an income tax refund order of ₹1,359.29 crore for the 2015-16 assessment year, including interest. This is the latest in a series of tax refunds for IOB, following ₹1,238 crore in November and ₹123.8 crore in September. The bank’s financial performance has been strong, with a 24.4% rise in Q2 net profit to ₹777.2 crore and an 8.2% increase in net interest income. Asset quality also improved, with gross NPAs dropping to 2.72% and net NPAs declining to 0.475%. Over the past year, IOB’s stock has surged 30%, significantly outperforming the Nifty 50, signaling growing market confidence in the bank’s financial health and operational performance. This makes IOB a noteworthy stock for traders and young investors watching the banking sector.
Why it Matters:
The tax refund strengthens IOB’s cash position, supporting its growth and operational stability. Improved financial metrics like higher profits, better net interest income, and reduced NPAs highlight the bank’s strong performance. With a 30% stock rally in the past year, it signals growing market confidence in IOB’s turnaround and potential for further gains.
Around the World
Asian stocks showed mixed performance on Wednesday as investors awaited key U.S. inflation data to gauge potential interest rate changes. Chinese stocks rose, with the Shanghai Composite up 0.4% and Hong Kong’s Hang Seng jumping 0.8%, driven by expectations of government stimulus announcements at the Central Economic Work Conference. Broader Asian markets saw modest gains, with Indonesia and South Korea showing strength, while Japan’s Nikkei fell 0.6% due to concerns over rising inflation possibly triggering rate hikes. In contrast, Australia, Taiwan, Malaysia, and the Philippines posted declines amid cautious sentiment. Geopolitical tensions in the Middle East also weighed on risk appetite, while U.S. stock futures edged higher after a technology-led decline overnight. Investors are watching for U.S. consumer price index data to gain insights into the Federal Reserve’s next steps, as mixed economic signals and geopolitical risks continue to shape market sentiment.
Option Traders Corner
Max Pain
Nifty 50 – 24,600
Bank Nifty – 53,400
Nifty 50 – 24,599 (Pivot)
Support – 24,521, 24,432, 24,354
Resistance – 24,688, 24,766, 24,855
Bank Nifty – 53,501 (Pivot)
Support – 53,378, 53,180, 53,057
Resistance – 53,700, 53,822, 54,021
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