Informist, Wednesday, Aug. 20, 2025 Tel +91 (22) 6985-4000

Equity Alert: Vedanta falls 3% as report suggests demerger hits roadblocks

MUMBAI--1500 IST--Shares of mining major Vedanta fell around 3% to an intraday low of INR 437.80 on Wednesday amid reports of multiple roadblocks to its proposed demerger, along with the Supreme Court's rejection of a compensation plea filed by one of its subsidiaries. At 1433 IST, the stock was trading nearly 1% lower at INR 445.35 on the NSE.

Earlier in the day, CNBV-TV18 reported that the National Company Law Tribunal has deferred the hearing in Vedanta demerger case to Sept. 17, following serious objections raised by the government, which claimed the move could hinder its ability to recover dues from the company. The government alleged concealment and non-disclosure of key details related to the demerger by Vedanta, the report said.

The government also flagged concerns over inflated revenues and concealed liabilities, suggesting that Vedanta altered its demerger scheme after receiving a no-objection certificate from the Securities and Exchange Board of India and stock exchanges, according to the report. This was later confirmed by the SEBI, which termed it a "serious breach" of the applicable master circular, CNBV-TV18 reported.

The news channel, in a post on social media platform X, said that the Supreme Court had dismissed Vedanta's subsidiary Talwandi Sabo Power Ltd.'s plea seeking additional compensation. Later, Vedanta, in an exchange filing, said that the apex court had upheld the decision of the Appellate Tribunal for Electricity on the Talwandi Sabo project. The tribunal had ordered that Vedanta's Talwandi Sabo project was not a legitimate entity for deemed export benefits, CNBC-TV18 reported. (Arya S. Biju)

Equity Alert: Ola Electric up 16%, China may lift rare earth export curbs

MUMBAI--1455 IST--Shares of Ola Electric Mobility rose nearly 16% to touch an over three-month high of INR 51.83. The stock was up for the second session after media reports said that China was likely to ease restrictions on exports of rare earth magnets and minerals. This comes during Chinese Foreign Minister Wang Yi's two-day visit to India, which began on Monday.

"Glad to meet Foreign Minister Wang Yi...India-China relations have made steady progress guided by respect for each other's interests and sensitivities," Prime Minister Narendra Modi said in a post on X. Wang's visit comes ahead of Modi's expected trip to Tianjin, China, for the Shanghai Cooperation Organisation summit from Aug. 31 to Sept. 1, the Times of India reported.

However, Nomura Global Markets Research said the the recent announcement of a likely reform in the goods and services tax would be a negative factor for the electric vehicle industry as this would increase the pricing gap between internal combustion engine vehicles segment and the EV segment. The brokerage notes that this would also mean the electric vehicle adaption in India could be delayed by two-three years.

The electric vehicle maker was the top performer in the Nifty 200 index. At 1453 IST, over 854 million shares of the company changed hands as against the 524 million shares traded till the same time Tuesday on NSE. The stock traded nearly 14% higher at INR 51. Wednesday's volumes of the stock were the highest ever traded volumes for the company, ever since it got listed on the bourses on Aug. 9 2024. (P. Madhu Kumar)

Equity Alert: Asian indices end mixed; CSI 300 up as China's key rate unchanged

MUMBAI--1421 IST--Indices in the Asian region were mixed with markets in China and Hong Kong rising while the markets in Taiwan and Japan saw a steep fall. Chinese stocks rose after China's central bank kept its key lending rate unchanged as per expectations. Hong Kong's Hang Seng Index made a recovery from a fall in the morning. However, other indices in the region either fell or posted only minor gains.

China's CSI 300 Index and SSE Composite Index rose over 1?ch. The People's Bank of China Wednesday kept the one-year loan prime rate unchanged at 3.0% and the five-year rate at 3.5%. The Hang Seng, which was down 0.8% in the morning, ended 0.2% higher.

Indices in Japan fell after the country's monthly exports fell at the fastest pace in four years, according to a report by CNBC. The country's exports in July were down 2.6% on year, worse than the 2.1?ll expected by a Reuters poll.

Taiwan's TAIEX was the worst hit index in the region and ended nearly 3% lower. The index had just hit a lifetime high Tuesday. South Korea's KOSPI fell for the third straight session. It has fallen nearly 3% in this period.

Following were the levels of key Asian indices at 1418 IST:

(Anshul Choudhary)

Equity Alert: Europe mkts fall; UK's FTSE down as inflation higher than view

MUMBAI--1350 IST--Indices in Europe were down in early trade after inflation in the UK came in higher than expected. Defence companies stocks extended their fall on the possibility of peace talks to end Russia-Ukraine war while semiconductor stocks declined tracking the fall in their US counterparts.

CPI in the UK rose 3.8% on year in July, higher than a 3.7% rise expected by a Reuters poll. The inflation was higher than the 3.6% rise in June. The UK's FTSE 100 index was marginally down as the latest inflation print is likely to push Bank of England to keep interest rates unchanged.

Shares of semiconductor companies were slightly down amid fear of a bubble in artificial intelligence sector. "An MIT report revealed that 95% of companies investing in generative AI have yet to see returns," Swissquote Bank analyst Ipek Ozkardeskaya wrote in a note, as quoted by Dow Jones Newswires. "The comments may have been a wake-up call for investors, sparking a sharp pullback in high-flying names."

Following were the levels of major European indices at 1345 IST:

(Anshul Choudhary)

Equity Alert: Indices remain higher, sectoral indices show mixed trend

MUMBAI--1325 IST--Benchmark domestic indices maintained their intraday gains after recovering from a minor fall at open. Gains in the information technology and fast-moving consumer goods companies helped indices remain above the 25000 and 81800 levels. At 1323 IST, the Nifty 50 was up 0.2% at 25040.90 points and the Sensex was up around 0.3% at 81844.87 points.

Sectoral indices showed a mixed trend, with Nifty IT, Nifty FMCG, and Nifty Realty leading the gains, rising 1-2%. Nifty Metal and Nifty Oil & Gas were also in the green. Banking, financial services, media and pharma stocks, on the other hand, remained under pressure with Nifty Media and Nifty Financial Services falling 0.5-1.2%. At 1248 IST, Nifty Consumer Durables and Nifty Auto traded almost flat.

Shares of some online gaming companies remained under pressure after the Union Minister for Electronics and Information Technology, Ashwini Vaishnaw, tabled The Promotion and Regulation of Online Gaming Bill, 2025 in the Lok Sabha. The government in the Bill has proposed a ban on online games involving real money due to concerns over addiction and financial losses. At 1306 IST, shares of Nazara Technologies were down 3.0% and OnMobile Global traded 7.7% lower. However, shares of Delta Corp. recovered from their early losses to trade around 2.5% higher.

Among individual stocks, shares of Aurobindo Pharma, which recovered from early lows following the company's clarification that news reports on the acquisition of Zentiva were 'premature' and no binding agreement had been made, pared some of the gains and traded around 4% lower. Earlier in the day, The Economic Times newspaper reported that Aurobindo Pharma was the front-runner to acquire European pharmaceutical major Zentiva for $5.5 billion. The stock was the worst hit in both Nifty 200 and Nifty 500.

Shares of mining major Vedanta fell around 3?ter the National Company Law Tribunal deferred the hearing on its proposed demerger. This follows serious objections raised by the government, which claimed the move could hinder its ability to recover dues from the company. Further, the Securities and Exchange Board of India confirmed that Vedanta had made modifications to the scheme after receiving no-objection certificate, which the regulator termed a "serious breach" of the applicable master circular. (Arya S. Biju)

Equity Alert: Nifty 50 back above 25000 as IT cos rise; financials cap gains

MUMBAI--1134 IST--The Nifty 50 went past 25000 points for the third straight session Wednesday due to gains in information technology, consumer-facing, and select steel companies. The index had crossed 25000 points Monday and Tuesday as well, but ended below that level on both occasions.

At 1145 IST, the Nifty 50 was up 0.2% at 25018.45 points and the Sensex was also 0.2% higher at 81790.30 points. Shares of several information technology stocks gained steadily since morning, with the Nifty IT now up 2%. Infosys was the top performer in the Nifty 50, rising over 3% to an over two-week high of INR 1,482.90

Shares of banks and non-banking finance companies remained lower, limiting gains in the benchmark indices. Shriram Finance and Bajaj Finance were down 1.5-1.8%, and HDFC Bank and ICICI Bank were down around 0.5?ch.

Several mid-caps and small-cap companies saw major gains Wednesday. Ola Electric Mobility was up 13%, gaining for the second straight session after reports of China agreeing to consider lifting curbs on the supply of rare earth minerals. The stock has gained 23% in two sessions. Among others, shares of Godfrey Phillips India rose 11%, more than offsetting the fall it saw earlier this week on concerns of higher GST on cigarettes. (Anshul Choudhary)

Equity Alert: Aurobindo Pharma down 5%; Zentiva deal seen raising co's debt

MUMBAI--1119 IST--Shares of Aurobindo Pharma fell nearly 5% to touch an intra-day low of INR 1,039, declining after a six-session winning run. The company has emerged as the front-runner to acquire European pharmaceutical major Zentiva for $5.5 billion, The Economic Times reported Wednesday, citing sources. Analysts said that despite the acquisition being seen in a positive light, its near-term impact on the company's debt structure and margin will wear down the stock temporarily.

Following this, Aurobindo Pharma issued a clarification to exchanges on Wednesday, saying that the news of the company acquiring Zentiva is "premature" and that "it should not be relied upon". It also added "...at present, no binding agreement or definitive decision has been made by the board of directors of the company in relation to the transaction referred to in the media reports". At 1119 IST, the stock traded nearly 3% lower at INR 1,057.40.

Aurobindo Pharma's spiralling debt structure is likely the reason for investors to turn apprehensive about the company and a "knee jerk" reaction can be seen in the market for the stock, according to analysts. The Zentiva deal, if successful, will be the biggest ever acquisition by an Indian pharmaceutical company. "Zentiva has a strong hold in Europe and the company's business is spread evenly across the region...this acquisition will prove to be very beneficial for Aurobindo Pharma if it can manage its debt burden in the upcoming quarters," said Heet Van, equity research associate at Elara Capital.

Van added that the company may face margin pressure in the coming quarters if the acquisition deal goes through. The analyst also said that Aurobindo Pharma may try to concentrate its business more in European markets as its US business may come under pressure due to uncertainties around pharmaceutical tariffs by the US.

Of 16 brokerage reports available on the company, 14 brokerages have a 'buy' rating on the stock with an average target price of INR 1,436. One brokerage has a 'hold' rating and the remaining one has a 'sell' rating on the stock. At 1042 IST, over 2.6 million shares of the company changed hands as against 116,390 shares traded till the same time Tuesday on the NSE. The stock was the biggest loser in the Nifty 200 index. (P. Madhu Kumar)

Equity Alert: Regaal Resources lists at INR 141, up 38% from issue price

MUMBAI--1110 IST--Shares of Regaal Resources listed at INR 141 on the NSE, a premium of over 38% to its issue price of INR 102. At 1104 IST, the stock was at INR 134.80, up 32.16% from the issue price but down over 4% from the listing price. Over 35 million shares of the company have changed hands on the NSE so far.

The initial public offering, which ended Thursday, was subscribed a whopping 160 times with keen interest from qualified institutional buyers and non-institutional investors. It received bids for 3.36 billion shares compared to the 21 million shares on offer.

Regaal Resources is a Kolkata-based agro-processing company and manufactures maize-based speciality products in India and has an installed crushing capacity of 750 tonnes per day. For the quarter ended June 2024, it had reported a net profit of INR 91.75 million on revenue of INR 1.95 billion. (Akash Mandal)

Equity Alert: Nifty 50, Sensex recover from minor fall as IT, FMCG cos gain

MUMBAI--1022 IST--Gains in information technology and fast-moving consumer goods companies helped the Nifty 50 recover from the minor fall at open Wednesday. The Nifty 50 was in the green, almost touching the 25000-level, after it hit an intraday low of 24929.50 points. At 1021 IST, the Nifty 50 index was largely flat at 24993.85 and Sensex was slightly up at 81705.31 points.

Shares of information technology stocks, which have been among the worst hit this year, gained amid better valuations. Shares of Infosys rose nearly 2% Wednesday, but were still down 22% this year. Tata Consultancy Services and Tech Mahindra were up 0.4-0.5%. The Nifty IT gained 0.7% Wednesday, but was still down over 19% this year.

FMCG companies extended gains as the proposed goods and services tax rate cut is expected to aid earnings growth for these companies with some analysts hoping for revival in consumption in the coming quarters. Shares of Hindustan Unilever and Nestle India rose around 1?ch, recovering from the slight fall at open.

Shares of Aurobindo Pharma were down nearly 4% on concerns around its high debt, which came into focus after The Economic Times reported the company is likely to buy Prague-based Zentiva for $5 billion-$5.5 billion. The market is likely concerned about the company's poor cash flow and high debt amid the acquisition report, an analyst covering the sector said. (Anshul Choudhary)

Equity Alert: Online gaming cos plunge as Cabinet likely OKs new gaming Bill

MUMBAI--0958 IST--Traders offloaded shares of online gaming companies such as Nazara Technologies, Delta Corp., and OnMobile Global on Wednesday following media reports that the government will likely propose restrictions on online games that involve monetary gains under the draft Promotion and Regulation of Online Gaming Bill, 2025. Reports said the Cabinet on Tuesday approved this draft Bill, which comes under new Online Gaming Bill 2025, and it is likely to be tabled in the Lok Sabha later in the day.

The proposed bill will prohibit real money online games and impose stringent penalties for violations, and offering online money gains could attract fines up to INR 100 million and a maximum of three years in jail, reports said. The bill, once it comes into effect, will also restrict advertisements related to such games and financial transactions connected to them. Banks and financial institutions will likely be restricted from processing payments to online money games, reports said.

At 0952 IST, shares of Nazara Technologies were down 6.3% at INR 1,311. The stock hit a seven-week low of INR 1,305 earlier in the day. Delta Corp.'s shares fell 6.6% at market open but later came off lows to trade 0.2% lower at INR 92.72. OnMobile Global was down 3%. (Gopika Balasubramanium)

Equity Alert: Mkt down on fall in fincl cos, profit booking in select stocks

MUMBAI--0936 IST--Benchmark indices were slightly down in early trade Wednesday after they rose in the previous four sessions, gaining 2%. The Nifty 50, as expected by analysts, faced selling pressure around 25000 points.

Selling in non-banking financial companies, along with large banks, was the key reason for the slight fall in the Nifty 50. Shares of several consumer-facing companies also saw profit booking after bumper gains earlier this week. At 0924 IST, the Nifty 50 was down 0.2% to 24943.80 points and Sensex was down 0.1% at 81540.10 points.

Shares of Bajaj Finance, Shriram Finance, and Jio Financial Services were down over 1?ch. Index-hevyweights HDFC Bank and ICICI Bank were down 0.4-0.6%. Among gainers, Bharti Airtel was up nearly 2%, rising for the fifth straight session.

Automobile and fast-moving consumer goods companies were mixed. Nestle India, Hero MotoCorp, and Hindustan Unilever extended gains from the past few sessions, while Tata Motors and Eicher Motors saw a minor fall. Shares of Maruti Suzuki have gained over 10% so far this week on possibility of lower goods and services tax on cars and China lifting restrictions on supply of rare earth magnets. Ola Electric Mobility was the top gainer among Nifty 200 companies and it rose over 6%.

Shares of information technology companies were mixed as investors await the US Federal Reserve Chair Jerome Powell's speech on Friday for cues on the trajectory of interest rates. High interest rates in the US and threat of tariffs has already hit demand for IT services in the US, leading to a fall shares of IT stocks this year. Nifty IT was up 0.5% Wednesday, but it has fallen over 19% so far this year. (Anshul Choudhary)

Equity Alert: Indices likely to rise more on short covering

MUMBAI--0812 IST--Benchmark indices are likely to remain in positive territory Wednesday as investors might continue covering their short positions after being heavily oversold in the market. Thought the market may start on a muted note, analysts expect the Nifty 50 to test the 25000 mark during the session. However, a climb above the psychologically crucial level is expected to be a tough one. The 50-stock index is expected to move in a range of 24800-25200.

While tailwinds such as the proposed GST reforms, India's positive macroeconomic outlook, a good monsoon, and a potential revival of earnings growth in the second half of the financial year are likely to drive the market higher, some analysts believe that the GST rationalisation may fall short of the high expectations investors have to revive demand and drive consumption in the economy.

The derivatives contract of the GIFT Nifty indicates a muted start for the market. At 0800 IST, the August contract of the GIFT Nifty was at 24967 points, 43.50 points lower from its previous close. On Tuesday, the Nifty 50 ended up 103.70 points or 0.4% higher at 24980.65. The BSE Sensex closed at 81644.39 points, up 370.64 points or 0.5%.

Overnight, indices in the US ended lower, with Nvidia and other heavyweight artificial intelligence stocks weighing on the market. While the Nasdaq Composite and S&P 500 ended lower, the Dow Jones Industrial Average closed flat after briefly rising to an all-time high intraday. Most Asian bourses were in the red in early trade Wednesday, with Australia's S&P/ASX 200 and Singapore's Straits Times being the exceptions. (Akash Mandal)

Equity Alert: Asian indices mixed; Japan market down on decline in exports

MUMBAI--0807 IST--Stock indices in Asia were mixed Wednesday with markets in Japan, South Korea, and Taiwan seeing a steep fall, while those in Australia, China, and Singapore rose slightly. Profit-booking was seen in some markets after recent gains, while sentiment in Japan took a hit after the country's exports fell more than expected.

Japan's exports fell 2.6% on year in July, with exports to the US falling over 10%, CNBC reported. The 2.6% drop in exports was more than the 2.1% expected in a Reuters poll. The Nikkei 225 Day was down 1.6% and the TOPIX fell 0.6%.

Taiwan's TAIEX fell for the second session after it hit a lifetime high intraday on Tuesday. The index fell over 2% Tuesday and has lost 2.6% from its lifetime high so far. South Korea's KOSPI was down 2%, down for the third straight session, losing over 4% during this period.

Market participants now await US Federal Reserve Jerome Powell's speech at Jackson Hole, Wyoming, on Friday. He is expected to provide some cues on the possiblity of a rate cut at the US central bank's next meeting. The CME FedWatch Tool showed the probability of a 25 basis point rate cut in September has increased to 87% from 83?ay ago.

Following were the levels of key Asian indices at 0803 IST:

(Anshul Choudhary)

Equity Alert: Nasdaq Composite falls 1.5% on profit booking in tech stocks

MUMBAI--0736 IST--The Nasdaq Composite index fell 1.5% Tuesday due to a sell-off in several technology companies as investors shifted to real estate, utilities, and consumer staples stocks. Investors were likely taking out profits from technology companies ahead of US Federal Reserve Chairman Jerome Powell's speech at the Jackson Hole Symposium on Friday, Reuters reported. The S&P 500 fell 0.6% while Dow Jones Industrial Average was largely unchanged.

Tech-major Nvidia dropped 3% and Palantir Technologies fell over 9%. Media reports said Nvidia is working on new chips for China that will be more powerful than the current H20 chips. However, sentiment around the stock was likely weak after US Treasury Secretary Scott Bessent said Nvidia would need to agree to a revenue sharing model with the government to get export licence to sell chips in China. Among others, Intel rose 7% on a $2-billion investment from SoftBank Group.

Home Depot missed expectations on earnings and it said customers were delaying large home-improvement projects. It also said small price increases were possible due to tarrifs, The Wall Street Journal reported. The stock ended 3% higher as it retained the annual guidance for fiscal 2025. Among other major consumer-facing companies, Target will reported its earnings Wednesday and Walmart will announce its results on Thursday.

Following are the closing levels of US indices Tuesday:

(Anshul Choudhary)

US$1 = INR 87.01

End

Edited by Subhojit Sarkar

All prices from National Stock Exchange, unless otherwise specified.

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