In a volatile trading session on Friday, several major companies saw notable changes in their stock prices as market sentiment fluctuated amid a variety of corporate announcements, regulatory updates, and global economic concerns.
Vedanta Revises Demerger Plan
Vedanta Ltd. announced a significant revision to its demerger strategy, opting to retain its base metals business within the parent entity rather than spinning it off, following feedback from its lenders. The Board of Directors, which approved the revised plan on December 20, acknowledged the evolving business priorities that led to this decision. The move aims to provide greater stability and facilitate stronger growth within the parent entity. However, the stock reacted negatively to the news, closing at ₹477.50, a decline of ₹14.70 or 2.99% on the Bombay Stock Exchange (BSE).
NHPC and Bihar Solar Projects
NHPC Ltd. signed a ₹5,500-crore Memorandum of Understanding (MoU) with the government of Bihar to develop 1,000 MW of solar and green hydrogen projects in the state. This deal highlights NHPC’s continued push into renewable energy as part of its strategy to diversify its portfolio. The state’s support in land acquisition will be crucial for the timely execution of these projects. Despite this positive development, the stock fell by ₹3.08 or 3.65%, closing at ₹81.38 on Friday.
Reliance Digital Health Expands in Healthcare
Reliance Industries Ltd. made a strategic move into the global healthcare innovation space through its subsidiary, Reliance Digital Health. The company announced that it will acquire a 45% stake in the US-based Health Alliance Group for $10 million. This investment is expected to bolster Reliance’s healthcare capabilities globally, reflecting its broader focus on digital healthcare solutions. Despite the positive news, Reliance’s stock saw a dip of ₹24.60 or 2.00%, settling at ₹1,206.00 on the BSE.
UltraTech Cement’s Acquisition Approved by CCI
UltraTech Cement, a leader in India’s cement sector, received approval from the Competition Commission of India (CCI) for its ₹3,954-crore acquisition of a 32.72% stake in India Cements. In a related development, UltraTech also launched an open offer for an additional 26% stake in India Cements, valued at ₹3,142.35 crore. The acquisition is seen as a strategic move to expand UltraTech’s footprint in India’s cement market. However, the stock ended lower by ₹241.15 or 2.07%, closing at ₹11,433.70 on the BSE.
Piramal Enterprises Seeks to Strengthen Balance Sheet
Piramal Enterprises announced a public issuance of secured Non-Convertible Debentures (NCDs) worth up to ₹2,000 crore, a move aimed at strengthening its balance sheet and funding future growth initiatives. The company is looking to capitalize on opportunities in its core businesses, which include healthcare, financial services, and real estate. Despite the company’s proactive approach to growth, the stock slipped by ₹27.10 or 2.42%, ending at ₹1,094.70 on the BSE.
Aurobindo Pharma’s Biosimilar Gets Approval
Aurobindo Pharma Ltd.’s subsidiary, CuraTeQ Biologics, received approval from the UK’s Medicines and Healthcare products Regulatory Agency (MHRA) for Bevqolva, a biosimilar for bevacizumab. This approval opens the door for the treatment of several types of cancers, including metastatic colorectal and advanced renal cell carcinoma. Although this marks a significant milestone for the company, Aurobindo’s stock fell by ₹14.70 or 1.17%, closing at ₹1,240.70.
Sectoral Impact: Insurance, Auto, and Tobacco Stocks React to GST Changes
The broader market also saw sector-specific movements. Insurance stocks came under pressure following the government’s decision to defer cuts to the Goods and Services Tax (GST) on premiums. The delay has cast a shadow over the sector’s growth prospects in the near term. Meanwhile, auto stocks faced headwinds as the GST rate on used cars was hiked to 18%. On a positive note, stocks related to fortified rice kernels gained traction, as the GST on these products was reduced to 5%. Tobacco stocks, however, remained volatile due to the ongoing uncertainty surrounding potential ‘sin tax’ hikes.
Market Sentiment and Outlook
Overall, the market sentiment was weighed down by mixed corporate earnings, regulatory updates, and a series of sectoral challenges. The upcoming weeks will likely see more fluctuations as companies adjust to regulatory shifts and global macroeconomic conditions. Investors will continue to keep a close eye on developments in key sectors such as cement, renewable energy, healthcare, and consumer goods.
