Waaree's Bold Renewable Move
- 13th January 2025
Aaj Ka Bazaar
All three major US stock market indices ended lower on Friday. In the Asia Pacific region, markets started the week cautiously, with uncertainties over future interest rate cuts by the Federal Reserve following the latest US jobs data. As a result, Indian markets are expected to remain under pressure on Monday, especially with continued selling by foreign institutional investors adding to the cautious mood. On the stock front, Hindustan Unilever will be in focus as the company has set up a new arm called Kwality Wall’s for the planned demerger of its ice cream business.
Markets Around Us
BSE Sensex –76,858.12 (-0.67%)
Nifty 50 – 23,226.70 (-0.70%)
Bank Nifty – 48,441.20 (-0.60%)
Dow Jones – 41,784.53 (-0.37%)
Nasdaq – 19,173.65 (-1.57%)
FTSE – 8,248.49 (-0.86%)
Nikkei 225 – 39,190.40 (0.00%)
Hang Seng – 18,807.68 (-1.36%)
Sector: Electrical Equipment
Waaree Acquires Enel, Stock Surges
Shares of Waaree Energies rose 3% to ₹2,648 on January 13 after the company announced its plan to acquire Enel Green Power India for ₹792 crore. This move marks Waaree’s entry into the renewable energy sector, adding a solar and wind portfolio with a capacity of 640 MWAC (760 MWDC) to its business. The deal includes projects co-owned with partners where Enel holds a majority stake. With this acquisition, Waaree aims to diversify its revenue, grow its independent power producer (IPP) business, and strengthen its position in wind energy. Enel Green Power, a European leader in renewables, has established a strong presence in India. The transaction, expected to close in three months, is subject to regulatory approvals. Waaree, which made a strong stock market debut in October 2024, has seen its share price correct by 20% over the past month, despite operating multiple manufacturing plants across India.
Why it Matters:
This acquisition positions Waaree Energies as a key player in India’s growing renewable energy market, diversifying its revenue streams. By adding a 640 MW operational portfolio, the company strengthens its wind and solar capabilities. It also aligns with India’s push for sustainable energy solutions, enhancing Waaree’s long-term growth prospects.
NIFTY 50 GAINERS
INDUSINDBK – 964.85 (2.91%)
AXISBANK – 1054.85 (1.36%)
BRITANNIA – 4977.00 (0.77%)
NIFTY 50 LOSERS
TRENT – 6406.70 (-2.69%)
M&M – 3016.70 (-2.46%)
APOLLOHOSP– 6883.50 (-2.18%)
Sector: Retail
DMart Falls as Growth Outlook Weakens
Avenue Supermarts, the operator of DMart, reported a modest 4.9% rise in net profit to ₹723.54 crore for Q3 FY24, while revenue grew 17.6% to ₹15,973 crore. However, its EBITDA margin fell to 7.6% from 8.3% last year due to weaker gross margins and higher retail costs. DMart’s shares dropped nearly 6% to ₹3,469.95 after the report. Brokerages lowered price targets, citing rising competition, higher costs, and discounting pressures in the FMCG category as challenges. Morgan Stanley maintained an “underperform” rating, and Nuvama and Motilal Oswal reduced target prices, highlighting margin pressures and stiff competition from quick-commerce players. Meanwhile, DMart announced that Neville Noronha will step down as MD and CEO in January 2026, with Anshul Asawa, an experienced professional from Unilever, set to join. While long-term growth potential remains, near-term challenges are weighing on investor sentiment.
Why it Matters:
DMart’s weaker margins and rising competition signal challenges for its value-focused model in a competitive retail market. The management transition adds uncertainty, impacting investor confidence. Brokerages lowering price targets highlight concerns about near-term growth and profitability.
Around the World
Most Asian currencies weakened on Monday as the U.S. dollar gained strength, driven by better-than-expected nonfarm payrolls data, which raised concerns about slower interest rate cuts in 2025. The dollar hit a 24-month high, reflecting expectations of a strong labor market and sticky inflation keeping Federal Reserve rates higher for longer. Regional trading was muted due to a Japanese holiday, but currencies like the yen, yuan, and Indian rupee remained under pressure. Despite positive Chinese trade data, the yuan weakened as traders anticipated more stimulus measures to counteract economic challenges. Other Asian currencies, including the South Korean won and Singapore dollar, saw minor fluctuations, while the Indian rupee steadied after recent record lows. The market is now focused on upcoming U.S. inflation data and Federal Reserve comments for further interest rate cues.
Option Traders Corner
Max Pain
Nifty 50 – 23,550
Bank Nifty – 50,400
Nifty 50 – 23,457 (Pivot)
Support – 23,318, 23,205, 23,066
Resistance – 23,570, 23,709, 23,822
Bank Nifty – 48,949 (Pivot)
Support – 48,415, 48,097, 47,563
Resistance – 49,267, 49,801, 50,119
Did you know?
2 Million Indian Travelled to USA
The number of Indians who travelled to the United States in the first 11 months of 2024, up 26% from the same period last year.
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