NTPC Green Lock-In Ends
- 26th December 2024
Aaj Ka Bazaar
On Tuesday, Wall Street indices concluded a global share rally in light trading, with markets closing early for Christmas Eve. The Dow Jones Industrial Average gained 0.91%, the S&P 500 gained 1.1%, and the Nasdaq Composite climbed 1.35%. US markets remained closed on Wednesday because of Christmas. Asian markets also posted gains, with Japan’s Nikkei rising 0.43%, driven by positive sentiment from the US market’s extended rally, although several regional markets were closed for the holidays. Indian benchmark indices are projected to open on a subdued note, as suggested by the flat performance of GIFT Nifty in early trading. On stock-specific news, Bharat Petroleum Corporation Limited (BPCL) announced two key updates on Tuesday: the initiation of pre-project activities for a greenfield refinery-cum-petrochemical complex on the East Coast in Andhra Pradesh, involving an investment of Rs. 6,100 crores and its success in NTPC’s reverse auction for 1,200 MW ISTS-connected solar PV projects across India.
Markets Around Us
BSE Sensex -78,528.33 (0.08%)
Nifty 50 – 23,758.15 (0.13%)
Bank Nifty – 51,324.30 (0.18%)
Dow Jones – 43,237.20 (-0.17%)
Nasdaq – 20,031.13 (1.35%)
FTSE – 8,136.99 (0.00%)
Nikkei 225 – 39,130.43 (0.24%)
Hang Seng – 20,098.29 (0.00%)
Sector: : Power Generation
NTPC Locks In Ends, Shares Free Trading
As the lock-in period expired, 1.83 crore shares of NTPC Green Energy, accounting for a 2% stake in the company, became eligible for trading. This allows anchor investors the option to sell up to 50% of their holdings, though the end of the lock-in does not guarantee immediate sales. Since its market debut less than a month ago, the stock has gained 9%, providing an opportunity for partial profit-taking. Listed at Rs 111.50 on November 29, a 3.24% premium over its IPO price of Rs 108, NTPC Green raised Rs 10,000 crore through a fresh issue with no offer-for-sale component. Proceeds are being used to repay loans of its subsidiary, NTPC Renewable Energy Ltd, and for general corporate purposes. As a ‘Maharatna’ entity, NTPC Green focuses on renewable energy, including solar, wind, and green hydrogen initiatives, strengthening its position in India’s renewable energy sector.
Why it Matters:
The lock-in expiry of NTPC Green Energy shares introduces potential market volatility as 1.83 crore shares become tradable. Despite the stock’s 9% gain since its listing, anchor investors may offload holdings, influencing prices. The company’s focus on renewable energy reinforces its strategic importance in India’s green transition.
NIFTY 50 GAINERS
NIFTY 50 GAINERS
SBILIFE – 1407.90 (1.51%)
BPCL – 295.90 (1.34%)
MARUTI – 10856.00 (1.11%)
NIFTY 50 LOSERS
ASIANPAINT – 2264.80 (-0.84%)
TRENT – 6952.65 (-0.78%)
BRITANNIA – 4718.00 (-0.55%)
Sector: : Civil Constructions
Ramky Infra Rise on HMWSSB Contract
Ramky Infrastructure Limited’s stock rose 3.83% to Rs 627.00 after receiving a Letter of Award (LoA) for a Rs 215.08 crore contract from the Hyderabad Metropolitan Water Supply and Sewerage Board (HMWSSB) for managing and maintaining sewage treatment plants over five years. However, the company also faced warnings from the NSE and BSE for not meeting the required frequency of risk management committee meetings. Financially, Ramky reported a 12.62% increase in PAT to Rs 973 million for the September 2024 quarter compared to the June quarter, and its EBITDA grew by 7.2% year-on-year. Yet, net profit for Q2FY25 fell by 30.57% to Rs 78.19 crore from the previous year. The company continues to secure contracts, including biomining projects worth over Rs 200 crore. Despite these developments, its stock returns have dropped 21.16% over the past year, with a market capitalisation of Rs 4,310 crore.
Why it Matters:
Ramky Infrastructure’s new Rs 215.08 crore contract strengthens its order book and highlights its expertise in urban infrastructure projects. Despite financial warnings and a drop in annual stock performance, the company’s growing EBITDA and consistent contract wins reflect its resilience. Investors should weigh the operational growth against regulatory non-compliance concerns.
Around the World
Asian stock markets were mostly subdued on Thursday due to thin trading, with many major markets closed for holidays. Japanese shares outperformed, with the Nikkei 225 rising nearly 1% after news of a record $735 billion budget for the next fiscal year aimed at tackling rising expenses and supporting economic growth. Meanwhile, the Bank of Japan hinted at a possible interest rate hike next year, pending global economic conditions. Chinese stocks remained flat despite plans for record fiscal stimulus, including $411 billion in special treasury bonds and relaxed investment rules for local officials. Elsewhere, South Korea’s KOSPI and Thailand’s SET Index saw little movement, while Singapore’s Straits Times Index dipped 0.2%. India’s Nifty 50 Futures signaled a weak start, reflecting continued losses. Markets remain cautious as investors await clearer policy directions and global economic signals.
Option Traders Corner
Max Pain
Nifty 50 – 23,800
Bank Nifty – 52,000
Nifty 50 – 23,760 (Pivot)
Support – 23,653, 23,577, 23,470
Resistance – 23,835, 23,942, 24,017
Bank Nifty – 51,250 (Pivot)
Support – 51,110, 51,106, 50,875
Resistance – 51,364, 51,495, 51,608
Did you know?
Indian Digital Milestone Achieved
India has generated over 138 crore Aadhaar numbers, transforming digital identity verification. DigiLocker now serves 37 crore users, securely storing 776 crore documents. The DIKSHA platform has facilitated 556 crore learning sessions and achieved nearly 18 crore course enrollments.
Have you checked our latest Brand Ad ? Click Below to check now!
