0%
Daily Market Update
30-Dec-20241 min readvipin kumar

JSW Energy to acquire O2 Power for a total enterprise value of Rs 12468 crore – Daily Market Update 30th Dec 2024

Get a Smart Summary Instantly

Prompt copied

JSW Neo Energy Limited, a wholly-owned subsidiary of JSW Energy Ltd, has signed a definitive agreement to acquire O2 Power, a renewable energy platform jointly established by Swedish asset manager EQT Partners and Singapore’s Temasek Holdings.

O2 Power is a renewable energy platform with a capacity of 4,696 MW – where 2,259 MW will be operational by June 2025, 1,463 MW is currently under construction, and an additional 974 MW are in the pipeline, all scheduled for commissioning by June 2027. The platform has a blended average tariff of Rs 3.37/KWh with remaining life of 23 years.

Overview and Outlook

Global Stock Market Today

  • US equity markets settled lower in range 0.7% to 1.5%.
  • European equity markets settled on a flat to positive note.
  • Asian equity markets are trading mix.
  • GIFT Nifty is little changed, Nifty futures likely to open around 23970 levels.

 

News highlights from across the globe

  • Asia-Pacific markets are trading mix in early trade on Monday, tracking Friday’s losses on Wall Street after technology companies’ stocks declined.
  • Brent trading at 0.01% higher at $74.18 a barrel.
  • The Indian rupee weakened sharply on Friday, hitting a fresh record closing low of 85.54 against the US dollar.

 

Important news updates from the domestic front

  • Hero MotoCorp extended its partnership with Harley-Davidson Motor to expand the Harley-Davidson X440 into new variants and to develop a new motorcycle.
  • JSW Energy’s arm JSW Neo Energy acquired a 4,696 MW renewable energy platform from O2 Power Midco Holdings and O2 Energy SG for Rs 12,468 crore.
  • Max Financial: Axis Max Life decided to discontinue the operations of Max Life PFM as a pension fund manager.  The decision is taken by Axis Bank, as the bank is already an established pension fund manager.
  • SJVN appointed Sanjay Kumar as chief financial officer effective Jan. 1.
  • Reliance Infrastructure: Axis Bank and IDFC First Bank invoke arm’s right of substitution for Maharashtra Road project.
  • Prestige Estates signed a business transfer agreement to transfer the hospitality undertaking to its arm, Prestige Hospitality Ventures, for Rs 313 crore.
  • Zydus Lifesciences and Sterling Biotech have mutually agreed to extend the deadline for the purchase of the API business of Sterling Biotech from December to March next year.
  • Newgen Software Technologies executed an agreement with Aye Finance for a loan origination solution for Rs 24 crore.
  • Ola Electric: Anshul Khandelwal resigned from the post of chief marketing officer and Suvonil Chatterjee resigned from the post of chief technology and product officer.
  • Nazara Technology has completed investment of Rs 63.9 crore into Nodwin by way of subscription of 3,454 optionally convertible preference shares.

 

Nifty Overview & Outlook

Benchmark Nifty index opened with a gap on the higher side, went up to 23939 levels in day trade but failed to sustain at higher levels and finally settled at 23813 levels after adding 63 points to its previous closing values.

Broader markets underperformed the benchmark as Mid and Small cap indices settled on a flat to negative note.

Performance on the sectoral front was mix. Nifty Pharma was the top performer, gained 1.30% followed by Auto index that rose 0.97%. On the other hand, Metal and PSU Bank index dragged the markets lower, down nearly 1% each.

Going ahead, in absence of major global cues, we expect Nifty index to trade in similar fashion for the week. On levels front, 23950-24000 zone will act as immediate hurdle on the higher side while support is still placed around 23600-23550 levels.

 

Derivatives Overview & Outlook

Last Friday, no significant change was seen in all major index futures on the price front, whereas on open interest front, Nifty futures added around 5% of open interest as long buildup and Banknifty futures shed around  3% of open interest as short covering.

Majority of F&O sectors settled in red. Amongst them, Metal, Power, Capital Goods and Chemical stocks witnessed maximum addition of short positions whereas some long buildup was seen among Auto and Pharma stocks.

On options front, call writing along with some put writing was seen at multiple strikes. Maximum call positions are at 25000 CE while maximum put positions are at 22500 PE followed by 23500 PE.

 

Institutional Trading Activity

Last week, FIIs sold stocks worth Rs 4564 Cr in the cash segment, bought stocks futures worth Rs 12881 Cr and sold index futures worth Rs 4625 Cr. DIIs were net buyers in the cash segment to the tune of Rs 10928 Cr during the week.

 

Nifty Futures, Banknifty Futures and Finnifty Key Levels

Nifty – Resistances 23820-24000; Supports 23650-23580

Banknifty – Resistances 51800-52000; Supports 51400-51200

Finnifty – Resistances 23900- 24000; Supports 23720-23620

 

F&O Security in Ban Today: NIL

Disclosure

Globe Capital Market Limited (“GCML”) is a Stock Broker registered with BSE, NSE, MCX, NCDEX, and MSEI in all the major segments viz. Capital, F & O and CDS segments. GCML is also a Depository Participant and registered with both the Depositories viz. CDSL and NSDL. Further, GCML is a SEBI registered Portfolio Manager and Research Analyst. GCML includes subsidiaries, group and associate companies, promoters, directors, employees and affiliates.

AY Securities and Commodities Limited, Globe Derivatives and Securities Limited & Globe Fincap Limited are subsidiaries of GCML. AtoZ Finstock Private Limited, A to Z Consultants Private Limited, A to Z Venture Capital Limited, M. Agarwal Stock Brokers Private Limited, A M Share Brokers Private Limited, Shri Adinath Advertising Company Pvt. Ltd., Orient Landbase Private Limited, Bolt Synthetic Private Limited, Price ponder Private Limited, Lakshya Impex Private Limited and Launchpad Fintech Private Limited are associates of GCML.

This report has been prepared by GCML and published in accordance with the provisions of Regulation 19 of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014, for use by the recipient as information only and is not for general circulation or public distribution. This report is not to be altered, transmitted, reproduced, copied, redistributed, uploaded, published or made available to others, in any form, in whole or in part, for any purpose without prior written permission from GCML. The projections and the forecasts described in this report are based on estimates and assumptions and are inherently subject to significant uncertainties and contingencies. Projections and forecasts are necessarily speculative in nature, and it can be expected that one or more of the estimates on which the projections are forecasts were based may not materialize or may vary significantly from actual results and such variations will likely increase over the period of time. This report should not be construed as an offer to sell or the solicitation of an offer to buy, purchase or subscribe to any securities, and neither this report nor anything contained therein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. It does not constitute a personal recommendation or take into account the particular investment objective, financial situation or needs of any individual in particular. The research analysts of GCML have adhered to the code of conduct under Regulation 24 (2) of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014. The recipients of this report must make their own investment decisions, based on their own investment objectives, financial situation or needs and other factors. The recipients should consider and independently evaluate whether it is suitable for its/ his/ her/their particular circumstances and if necessary, seek professional / financial advice as there is substantial risk of loss. GCML does not take any responsibility thereof.

Any such recipient shall be responsible for conducting his/her/its/their own investigation and analysis of the information contained or referred to in this report and of evaluating the merits and risks involved in securities forming the subject matter of this report. The price and value of the investment referred to in this report and income from them may go up as well as down, and investors may realize profit/loss on their investments. Past performance is not a guide for future performance. Actual results may differ materially from those set forth in the projection.

This report has been prepared by GCML based on the information available in the public domain and other public sources believed to be reliable. Though utmost care has been taken to ensure its accuracy and completeness, no representation or warranty, express or implied is made by GCML that such information is accurate or complete and/or is independently verified. The contents of this report represent the assumptions and projections of GCML and GCML does not guarantee the accuracy or reliability of any projection, assurances or advice made herein. Nothing in this report constitutes investment, legal, accounting and/or tax advice or a representation that any investment or strategy is suitable or appropriate to recipients’ specific circumstances.

Since GCML or its associates are engaged in various financial activities, they might have financial interest or beneficial ownership in various companies including subject company/companies mentioned in the report. GCML or its associates have not received any compensation for investment banking or merchant banking from the subject company in the past 12 months.  GCML or its associates might have received any compensation including brokerage services and for products or services other than investment banking or merchant banking from the subject company in the past 12 months. It is confirmed that GCML or research analyst or its associates have not managed or co-managed public offering of securities for the subject company in the past 12 months.

Research analyst or GCML or its relatives’/associates’ have no material conflict of interest at the time of publication of this report. Neither research analyst nor GCML are engaged in market making activity for the subject company. It is confirmed that research analysts do not serve as an officer, director or employee of the subject company. It is also confirmed that research analyst have not received any compensation from the subject company in the past 12 months. GCML or its associates have not received any compensation or other benefits from the Subject Company or third party in connection with the research report.

No material disciplinary action has been taken on GCML by any regulatory authority impacting Equity Research Analysis activities.

The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. This information is subject to change, as per applicable law, without any prior notice. GCML reserves the right to make modifications and alternations to this statement, as may be required, from time to time.

Research analyst or GCML or its relatives’/associates’ do not have actual/beneficial ownership of 1% or more in securities of the subject company, at the end of the month immediately preceding the date of publication of the document.

Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.