Adani Bags Power Deal
- 12th May 2025
Aaj Ka Bazaar
US stocks ended on a positive note on Thursday as the investors cheered a new trade agreement between US and Britain, and signaled traiffs on Chinese goods may fall if the talks go well. Following this development Aisan markets inched higher. Domestically Indian benchmarks are estimated to open lower due to escalating geopolitical tension between India and Pakistan. In stock specific news, Lupin is expected to remain in focus as the company received U.S. drug regulator’s approval for Raltegravir tablets, used to treat HIV-1 infection in adults.
Markets Around Us
BSE Sensex – 81,692.49 (2.82%)
Nifty 50 – 24,690.15 (2.84%)
Bank Nifty – 55,173.25 (2.94%)
Dow Jones – 41,702.38 (1.09%)
Nasdaq – 17,928.92 (0.00%)
FTSE – 8,554.80 (0.27%)
Nikkei 225 – 37,584.53 (0.22%)
Hang Seng – 23,079.88 (0.92%)
Sector: Power
Adani Power Secure ₹2,000 Cr Deal
Adani Power Ltd on Saturday (May 10) said it has secured a contract to supply 1,500 MW of thermal power to Uttar Pradesh at a levelised tariff of Rs. 5.383 per unit, emerging as the lowest bidder in a competitive tender process. The power will be supplied from a greenfield ultra-supercritical thermal power plant with a 2×800 MW configuration (1,500 MW net capacity), which the company will set up in the state under the Design, Build, Finance, Own, and Operate (DBFOO) model. The proposed project, with an estimated investment of around $2 billion (approximately Rs. 16,600 crore), received formal clearance from the Uttar Pradesh cabinet earlier this month. Following the issuance of the Letter of Award (LoA) today, Adani Power is set to enter into a long-term Power Supply Agreement (PSA) with Uttar Pradesh Power Corporation Ltd (UPPCL).
Why it Matters:
This project reinforces Adani Power’s leadership in the energy sector while addressing Uttar Pradesh’s rising power needs. With a $2 billion investment, it will significantly boost local infrastructure, create jobs, and support economic growth. The long-term agreement ensures stable, affordable electricity through advanced thermal technology.
NIFTY 50 GAINERS
ADANIENT – 2400.60 (6.65%)
JIOFIN – 261.10 (5.13%)
SHRIRAMFIN– 631.50 (5.00%)
NIFTY 50 LOSERS
SUNPHARMA – 1686.30 (-3.35%)
INDUSINDBK – 817.50 (-0.09%)
Sector : Banking
SMBC Acquires 20% stake in Yes Bank
Japan’s Sumitomo Mitsui Banking Corp (SMBC) has entered into a definitive agreement on May 9, 2025 to acquire 20% stake in Yes Bank through a sec- ondary stake purchase of 13.19% from SBI and 6.81% aggregate stake from other banks for Rs 13,483 crore at Rs 21.5 per share. State Bank of India will sell the 13.19% stake for Rs 8,889 crore while the other banks together will sell the 6.81% stake for Rs 4,594 crore. The other banks include Axis Bank, Bandhan Bank, Federal Bank, HDFC Bank, ICICI Bank, IDFC First Bank and Kotak Mahindra Bank. SBI and the seven other banks had invested in the Bank as part of the Yes Bank Reconstruction Scheme in March 2020. The transaction is a significant milestone to drive Yes Bank’s next phase of growth, profitability and value creation and we expect to leverage SMBC’s global expertise in this phase, said the Mumbai-headquartered private lender.
Why it Matters:
This strategic investment by Japan’s SMBC signals renewed global confidence in Yes Bank’s turnaround and growth potential. The deal allows SBI and other Indian banks to partially exit their emergency 2020 investment, unlocking capital. Yes Bank now stands to benefit from SMBC’s global banking expertise, aiding its next phase of growth and profitability.
Around the World
Asian stock markets rose on Monday, led by China, after signs of a trade deal between the U.S. and China lifted investor sentiment. The Shanghai Composite, Hang Seng, and Nifty 50 all posted strong gains, with India’s Nifty jumping nearly 3% as tensions with Pakistan eased following a U.S.-brokered ceasefire. U.S. futures also rallied, indicating positive momentum for global equities. However, gains were capped in some markets due to a sharp drop in pharmaceutical stocks. This came after U.S. President Donald Trump announced plans to cut drug prices by up to 80%, affecting pharma companies in Japan, South Korea, and Australia. Meanwhile, India’s pharma stocks underperformed the broader market. Overall, investors welcomed signs of reduced geopolitical risks and improved trade relations, but remained cautious as the full details of the U.S.-China deal were yet to be disclosed. Market volumes were slightly lower due to holidays in parts of Southeast Asia.
Option Traders Corner
Max Pain
Nifty 50 – 24500
Bank Nifty – 54500
Nifty 50 – 24036 (Pivot)
Support – 23,907, 23,807, 23,679
Resistance – 24,136, 24,264, 24,364
Bank Nifty – 53711 (Pivot)
Support – 53,367, 53,139, 52,795
Resistance – 53,939, 54,282, 54,510
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