💥 STOCKS IN THE NEWS 💥
📌 Reliance Power : As per the Business Transfer Agreement, the company has concluded the transfer of its 45 MW wind power project at Vashpet, Maharashtra, to JSW Renewable Energy (Coated) for Rs 132.39 crore.
📌 Wipro : FPEL Ujwal has issued equity shares to new offtakers and converted its existing optionally convertible debentures (OCDs) into equity shares. As a result of these transactions, Wipro’s shareholding in FPEL has diluted from 9.95 percent to 7.07 percent, with effect from April 11. In September 2023, Wipro signed a definitive agreement to subscribe for 9.95 percent equity share capital in FPEL Ujwal. The transaction was completed on October 10, 2023.
📌 Aster DM Healthcare : The healthcare company has declared a special dividend of Rs 118 per share after the receipt of proceeds from the sale of the GCC business and redemption of redeemable preference shares issued to the company by Affinity Holdings, a wholly owned material subsidiary of the company.
📌 Varun Beverages : The company has started commercial production of carbonated soft drinks and energy drinks (juices and value-added dairy products to be started) at its production facility in Gorakhpur, Uttar Pradesh.
📌 IIFL Finance : The board of directors of the company will be meeting on April 17 to consider the specific terms of the rights issue, such as the rights issue price and related payment mechanism, the rights entitlement ratio, the record date, and the timing of the rights issue. In March, the board approved fund raising up to Rs 1,500 crore via rights issue.
💥STOCKS THAT SHOULD BE ON YOUR RADAR AS ISRAEL - IRAN CONFLICT HEATS UP💥
📌 Adani Ports : Adani Ports owns the Haifa port in northern Israel. It completed the purchase in January 2024 for about US$ 1.03 billion and operates the port with a local partner. Although the war has not yet impacted the port in any way, a broader escalation in the conflict could make critical infrastructure within Israel, such as this port, a potential target.
📌 Sun Pharma : Sun Pharma’s subsidiary, Taro, is an Israeli firm. If some of the staff is potentially called for active duty in the war, it could impact production to an extent but it is unlikely to have a big impact on Sun Parma’s overall consolidated financials.
📌 OMC Stocks : If the Iran-Israel conflict deepens, it is expected to drive crude prices higher to potentially hitting $100 per barrel in the near future. This may directly hit the stock of Oil Market Companies (OMCs) such as Hindustan Petroleum Corporation (HPCL), Indian Oil Corporation (IOCL) and Bharat Petroleum Corporation (BPCL).
📌 Tyre Stocks : Since the Tyre industry uses crude oil derivatives for manufacturing synthetic rubber, several tyre stocks including MRF, CEAT, Apollo Tyres, JK Tyres, and Goodyear Tire & Rubber India will remain in focus as a rise in crude price will hit their margins.
📌 Paint Stocks : Whenever crude oil prices go up, the paint sector is hit hard as the main inputs in the manufacture of paints are crude oil derivatives. These companies have no control over these input prices.
If tensions in the Middle East escalate pushing crude price to above $100 per barrel, stocks of paint manufacturers like Akzo Nobel India, Berger Paints, Indigo Paints, and Shalimar Paints may come under pressure as crude derivatives account for almost 40 percent of the input bill for these paint manufacturers. A rise in the price of crude can mean narrower profit margins.
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