Stock Split Sparks Buzz
- 29th November 2024
Aaj Ka Bazaar
The US bourses were closed on Thursday on account of Thanksgiving. On the Asian front, both Nikkei and Hang Seng were seen to slump. The decline in Japan’s frontline index was likely on the back of the strengthening yen, increasing the pressure on the export-focused economy. Meanwhile, Hong Kong stocks continued to remain on track for a second consecutive monthly decline. The markets were likely weighed by the disappointment in China’s fiscal stimulus package and fresh tariff prospects from the Trump administration. The Indian benchmarks are expected to make a muted start yet again, driven by a lack of triggers in the market. On the stock-specific front, RIL’s subsidiary has entered into a stock purchase agreement with Wavetech Helium and acquired 21% of stakes in the company.
Markets Around Us
BSE Sensex -80,121.03 (0.15%)
Nifty 50 – 23,927.15 (0.05%)
Bank Nifty – 51,984.15 (0.15%)
Dow Jones – 44,834.12 (0.25%)
Nasdaq – 19,060.48 (-0.59%)
FTSE – 8,281.22 (0.08%)
Nikkei 225 – 38,208.47 (-0.37%)
Hang Seng – 19,564.10 (1.02%)
Sector: Jewellery
PC jeweller share surge on split
PC Jeweller’s shares rose 4.08% in early trade on November 29, reaching ₹162.60 on the NSE, following the announcement of a 1:10 stock split with a record date set for December 16. This means each share with a face value of ₹10 will be split into 10 shares with a face value of ₹1, making the stock more affordable for retail investors. Earlier in July, the company announced plans to raise ₹2,705 crore by issuing warrants to promoters and investors, aiming to reduce bank loans and strengthen working capital. Promoters are set to contribute ₹850 crore as part of this fundraising. The stock split and fund infusion reflect the company’s efforts to improve its financial health and attract more investors.
Why it Matters:
The 1:10 stock split makes PC Jeweller’s shares more affordable, attracting retail investors and increasing market activity. Combined with the ₹2,705 crore fundraising to reduce debt and improve working capital, it shows the company’s focus on financial stability and growth. These steps aim to boost investor confidence and long-term value.
NIFTY 50 GAINERS
HDFCLIFE – 673.20 (2.36%)
SBILIFE – 1448.40 (1.39%)
DRREDDY – 1203.15 (0.94%)
NIFTY 50 LOSERS
TCS – 4205.05 (-0.94%)
POWERGRID – 330.90 (-0.82%)
TECHM – 1704.00 (-0.55%)
Sector: Construction
NCC gains on ₹3390 crore contract
NCC has secured a ₹3,389.49 crore contract under the Ken-Betwa Link Project for constructing the Daudhan Dam, including planning, design, and hydro-mechanical works, to be completed in 72 months. With a market cap of ₹19,000 crore and shares up 83% in the past year, NCC has a strong project pipeline worth over ₹2.1 lakh crore and an order book of ₹52,370 crore. The water division, comprising 12% of the total order book at ₹6,071 crore, benefits from the government’s Jal Jeevan Mission, which allocated ₹70,163 crore this year. The company aims for FY25 revenue growth above 15%, order inflows of ₹20,000-22,000 crore, and EBITDA margins of 9.5-10%. This contract highlights NCC’s growth momentum and robust position in infrastructure development.
Why it Matters:
This contract strengthens NCC’s order book, showcasing its leadership in large-scale infrastructure projects like the Ken-Betwa Link. It aligns with the government’s infrastructure push, providing long-term revenue visibility. The strong growth outlook, supported by rising order inflows and steady margins, enhances investor confidence.
Around the World
Asian stocks mostly declined on Friday as the Russia-Ukraine conflict escalated, with Russia targeting Ukraine’s energy infrastructure and President Putin issuing new threats. Japan’s Nikkei dropped 0.5% due to a stronger yen driven by higher-than-expected inflation, raising expectations of a Bank of Japan rate hike. South Korea’s KOSPI fell 2%, led by tech losses, amid concerns over weak economic data, including declines in industrial output and retail sales. Meanwhile, Chinese stocks bucked the trend, with the CSI 300 and Shanghai Composite gaining over 1%, supported by reports of potentially less severe U.S. sanctions on China’s semiconductor industry. Hong Kong’s Hang Seng Index also rose 1.3%, as semiconductor stocks like SMIC saw strong gains. Investors are awaiting China’s manufacturing PMI data on Saturday, expected to show modest growth amid recent government stimulus measures.
Option Traders Corner
Max Pain
Nifty 50 – 24,000
Bank Nifty – 52,600
Nifty 50 – 24,044 (Pivot)
Support – 23,743, 23,572, 23,270
Resistance – 24,215, 24,516, 24,687
Bank Nifty – 52,149 (Pivot)
Support – 51,539, 51,172, 50,562
Resistance – 52,517, 53,127, 53,494
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.
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