Business News Live: Warburg Pincus sells 6.81% stake in Kalyan Jewellers

Adani Power on Thursday said the NCLT Hyderabad bench has approved its plan to acquire Lanco Amarkantak Power Ltd (LAPL) for an upfront payment of Rs 4,101 crore. LAPL is undergoing the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, a BSE filing said.
 

The Goods and Service Tax Appellate Authority has ordered Bharti Airtel to pay Rs 194 crore GST on licence fees and spectrum usage charges demanded by the Department of Telecom, a regulatory filing said on Thursday. The matter pertains to the demand for Goods and Service Tax (GST) of Rs 604.66 crore by the GST Department under the reverse charge mechanism on license fee (LF) and spectrum usage charges (SUC) basis the demand note issued by the Department of Telecommunications.
 

Adani group promoters may sell up to 3 per cent of their shares in Ambuja Cements as part of a regular adjustment of holdings they carry to keep stake across the ports-to-energy conglomerate at desired levels, sources said. Promoters will sell about 7 crore shares, or 2.84 per cent, in the cement maker for Rs 4,198 crore, sources aware of the matter said.
 

India and the US have discussed and explored the possibility of technical exchanges on efforts to upgrade grid transmission to handle future load growth during a ministerial-level deliberations. Discussions also covered policy consultations and potential financial support to advance these modernization efforts, a power ministry statement said.
 

The Centre on Thursday said that it has sought suggestions for preparing the future course of research and development (R&D) in the coal sector. During a special meeting of the Standing Scientific Research Committee (SSRC) convened on Wednesday several suggestions like setting up a single platform for all R&D activities in the coal and lignite sector and an advisory committee to sensitise students and researchers to ongoing R&D activities and challenges in the coal and energy sector was made.  
 

State-owned Rashtriya Chemicals and Fertilizers Ltd (RCF) has been fined Rs 9.66 lakh each by stock exchanges BSE and NSE for non-compliance related to regulations for the composition of board. The company has requested the bourses to waive off the fines as the power of appointing directors vests with the government.
 

Vedanta group firm Hindustan Zinc Ltd (HZL) on Thursday said BSE and NSE have imposed a fine of Rs 5.37 lakh each on the company for non-compliance with Sebi regulation relating to number of independent directors on board. The company said it is making constant efforts and follow-ups are being made with the mines ministry to meet the compliance requirements.
 

Agriculture Secretary Devesh Chaturvedi on Thursday urged states to swiftly adopt and implement new technology-driven initiatives to improve farm production estimates and enhance data accuracy. Addressing a national conference here, Chaturvedi emphasised the need for continuous collaboration between the central and state governments to enhance the quality of agricultural statistics, an official statement said.
 

Wipro Hydraulics on Thursday inaugurated its sixth manufacturing facility in Jaipur, Rajasthan, built with an investment of about Rs 250 crore.

The plant was inaugurated by Rajasthan Chief Minister Bhajan Lal Sharma, Wipro Enterprises chairman Azim Premji and Pratik Kumar -- Wipro Infrastructure Engineering CEO and Wipro Enterprises MD.

Global investment firm Warburg Pincus has sold a 6.81 per cent stake in Kalyan Jewellers through block deals on stock exchanges and will sell the remaining 2.36 per cent stake to the company's promoter and MD TS Kalyanaraman for Rs 1,300 crore.

Warburg Pincus had a 9.17 per cent stake in Kalyan Jewellers and it will completely exit from the company once the agreement to sell the remaining 2.36 per cent to promoters gets concluded.

The Indian cement industry has lined up a capex of around Rs 1.25 lakh crore for FY25 to FY27 to meet the growing demand, said a report by rating agency CRISIL.

During this period, the industry is expected to add 130 million tonne of cement grinding capacity, which is a fifth of the existing capacity.

The investments in process and digital technologies across the steel value chain in the country are expected to grow up to $2.7 billion by 2030, according to a report.

These investments will advance technological capabilities and drive progress toward a more efficient and sustainable mining and steel industry, the FICCI-Deloitte Report said on Thursday.

Continuing the sideways momentum on the second straight session on Thursday, the domestic stock markets inched marginally higher led by persistent buying in consumer stocks along with a positive move in banking stocks. 

The Bombay Stock Exchange’s 30-share Sensitive Index (Sensex) ended 147.89 points or 0.18 per cent up at 81,053.19 while the broader NSE’s Nifty 50 index inched 41.30 points or 0.17 per cent up to settle above the mark of 24,800. 

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Chinese shares edged lower on Thursday, hovering around five-month lows, as lingering trade tensions bruised the electric vehicles sector, offsetting gains in banking shares. Hong Kong's stock market continued to rise as positive sentiment prevailed throughout regional markets on the back of renewed expectations of a US Federal Reserve rate cut next month.

The benchmark Shanghai Composite Index and blue-chip CSI 300 Index both ended 0.3 percent lower, in line with the wider market. Losses were driven by a sell-off in electric vehicle stocks after Brussels unveiled a revised plan on tariffs against China-made electric vehicles, which would make provisional penalties permanent. That pushed the "EV sector index" to a fall of 1.2 percent.

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The euro remained near 13-month highs against the US dollar on Thursday, underpinned by resilient business activity in the euro zone and after figures that gave clues on pay rises in the bloc, which the European Central Bank will scrutinise when setting interest rates.

At the latest, it was flat at $1.1146, not far from Wednesday's $1.11735 level, its strongest since July 2023. The weakening dollar, encouraged by a dovish Federal Reserve and recent signals of softening in the US job market that would strengthen the case for possible interest rate cuts, has propelled the euro in recent weeks.

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Allcargo Logistics Ltd shares jumped 13 per cent over two days after Phillip Capital, in its August 20 report, raised the target price on Allcargo Logistics to Rs 80 per share. The brokerage has given optimistic view on the on strategic restructuring by the company, while it overlooks some of the challenges that the latter faces in its quest for profitability.

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Global brokerage firm UBS has initiated coverage on Kolkata-based steel products maker Shyam Metalics and Energy with a buy rating for target price of Rs 1,200 indicating a potential upside of 57 per cent from its Wednesday's closing price of Rs 763.80.

In a report titled "On a high growth and transformation journey" UBS says, "Shyam Metalics and Energy (SMEL) management's pragmatic approach to move up the value chain, diversifying products/metals and backward integration to capture efficiencies make it stand out."

Reserve Bank Deputy Governor Swaminathan J has asked financial institutions to adopt a more sensitive and empathetic approach towards MSMEs, and deploy supportive measures like restructuring options for loans, to support the sector which plays a key role in the economy.

In a speech at the Annual Day of the Foreign Exchange Dealers Association of India (FEDAI) here, the deputy governor said MSMEs face challenges like access to affordable finance, delayed payments, infrastructure bottlenecks, and requirements of compliance, among others.

The Bank of Queensland, BOQ.AX, said it would cut up to 400 full-time equivalent roles as part of a major restructure and fold its 114 owner-managed branch networks into its corporate structure by March 2025. Its shares fell as much as 6.1 per cent to A$6.03, the lowest since early August.

The Australian lender expects the restructure to incur a charge of A$115 million to A$125 million ($77.41 million to $84.14 million) for the four years to 2024. The latest round of jobs cut brings the total to 250 so far, from those cut last year. BOQ has hired 10 bankers in recent times to strengthen its business banking team even as it cuts jobs, as mentioned above.

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Government bond yields were little changed on Thursday morning, with traders once more trying to breach the 10-year benchmark bond yield below the psychologically important level of 6.85 per cent after the dovish comments by the US Federal Reserve.

A primary dealer trader said the 10-year benchmark yield may oscillate in a range of 6.84%-6.87% from the previous close of 6.86%. "The latest developments are leaning in favour of the bulls, but much of this has already been priced in," said the trader.

JGB yields rise: Japanese government bond (JGB) yields observed a modest increase on Thursday, with the market remaining quiet as market participants anticipated key remarks from the heads of the Bank of Japan (BOJ) and Federal Reserve on Friday. 

Mid- and long-date JGB yields rose slightly as market players adjusted position from what were lessening concerns about a US recession. Remaining movement was cautious ahead of BOJ Governor Kazuo Ueda's appearance before Japan's parliament, where he may discuss the central bank decision to raise rates last month. 

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Shares of the Kolkata-based Shyam Metalics and Energy rose as much as 11 per cent to hit record high of Rs 844.85 after international brokerage house UBS initiated coverage on the stock with a buy rating for target price of Rs 1,200, indicating an upside of 57 per cent from its Wednesday's closing price of Rs 763.80.

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The Indian equity benchmarks surged on Thursday ahead of weekly expiry of Nifty futures and option contracts led by gains in heavyweight shares such as Infosys, ICICI Bank, HDFC Bank, Reliance Industries, Bharti Airtel and ITC. The Sensex rose as much as 330 points and Nifty 50 index touched an intraday high of 24,867 amid stable cues from global markets.

As of 9:21 am, the Sensex was up 146 points at 81,057 and Nifty 50 index advanced 50 points to 24,820.

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The Indian Rupee is likely to start steady on Thursday, showing little reaction to dovish minutes from the US Federal Reserve's latest meeting that did not boost sentiment for Asian currencies. The 1-month non-deliverable forward (NDF) for the Rupee pointed at its opening levels trading near Wednesday's close of 83.9225, implying minor effects in early trades.

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“This Thursday morning brings welcome news for Nifty bulls eagerly anticipating an interest-rate cut. The catalyst: FOMC Minutes hint at a September rate reduction by the Federal Reserve. All eyes now shift to Jerome Powell's upcoming Jackson Hole speech on Friday at 10:00 AM ET, where market participants await confirmation of the rate cut timing and magnitude,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

“Nifty is poised for upward momentum, targeting its all-time high of 25078.30. In recent trading, Nykaa surged 10%, hitting a two-year high on strong Q1FY25 results, while Larsen & Toubro gained attention with a significant infrastructure project win. The preferred trade strategy: Buy Nifty at current levels with stops at 24309, targeting 24900/25100, and potentially higher aggressive levels. For Bank Nifty, the recommendation is similar, aiming for targets at 51137/51500, with aggressive targets in the 51900-52100 zone. NTPC emerges as a strong buy opportunity at CMP 409, with stops at 393 and targets at 415/423, signalling a bullish rebound based on momentum indicators,” Tapse added.

The Indian equity benchmarks are set to open higher as indicated by Gift Nifty futures traded at Gandhinagar. Gift Nifty futures rose 0.28 per cent or 69 points to 24,885 indicating a start above important psychological level of 24,800.

Most of the Asian markets were trading higher with Japan's Nikkei rising 1.11 per cent, Australia's S&P ASX 200 gaining 0.24 per cent, South Korea's KOSPI advancing 0.13 per cent and Hong Kong's Hang Seng gaining 0.67 per cent.

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