Keep an eye on Vodafone Idea, SpiceJet, Axis Bank, HDFC Bank and other stocks

Stocks to Watch: Here’s a brief glance at the stocks that might be the focus of today’s trading.

Dr. Reddy’s Laboratories: Dr. Reddy’s Laboratories addressed claims about its involvement with Dhaval Buch, the Sebi chief’s spouse, in a stock market filing on Tuesday, September 10, and refuted any conflict of interest. The business said that it had hired Agora Advisory Private Limited, for which Mr. Buch received payment of ₹6,580,000 for his leadership coaching services, which he rendered from October 2020 to April 2021. This letter comes in response to allegations made by Congress that Madhabi Puri Buch, the head of Sebi, has financial connections via Agora Advisory to listed businesses, including as Dr. Reddy’s, Mahindra & Mahindra, and Pidilite. Congress, however, offered no proof to back up these accusations.

Vodafone Idea: Kumar Mangalam The Aditya Birla Group chairman, Birla, has raised his ownership in Vodafone Idea (Vi), demonstrating his faith in the telecom business. Vodafone Idea is looking to raise ₹24,000 crore in equity in addition to ₹25,000 crore in debt. Birla bought 1.86 crore shares of Vi on September 6 and another 30 lakh shares via his investment business, Pilani Investment and Industries Corporation.

Indian Bank: With infrastructure bonds, Indian Bank hopes to raise ₹5,000 crore. This occurs while banks keep raising funds aggressively to satisfy the strong credit demand that is exceeding the expansion of deposits. Infrastructure bonds are a popular method of capital raising for banks since they enable them to finance long-term infrastructure projects and are free from maintaining the Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR).

SpiceJet: On September 10, the low-cost carrier SpiceJet made public the specifics of its settlement with Carlyle Aviation. The accord called for a mix of debt write-offs and the conversion of arrears into equity and debentures. SpiceJet’s lease arrears amounting to $40.17 million will be written off by the aviation investment division of Carlyle Group. Furthermore, Carlyle Aviation will convert $20 million in lease arrears into SpiceXpress compulsorily convertible debentures (CCDs), which are the cargo subsidiary of SpiceJet. As part of the settlement, Carlyle’s interest in the airline would be greatly increased as $30 million in arrears will be converted into equity at a rate of ₹100 per share. SpiceJet has effectively lowered its debt load using these actions.

Axis Bank and HDFC Bank: For failing to comply with regulations and statutes, the Reserve Bank of India (RBI) fined Axis Bank and HDFC Bank a total of ₹2.91 crore. For breaking the Banking Regulation Act and failing to follow instructions on “Interest Rate on Deposits,” “Know Your Customer (KYC),” and “Credit Flow to Agriculture—Collateral Free Agricultural Loans,” Axis Bank was fined ₹1.91 crore. For failing to follow instructions on “interest rate on deposits,” “recovery agents,” and “customer service,” HDFC Bank was fined ₹1 crore. These fines came after an examination of HDFC Bank’s activities and a supervisory assessment of Axis Bank by the RBI as of March 31, 2023.

Tata Motors: As part of its ‘festival of vehicles’ promotion, which runs until October 31, Tata Motors announced substantial price reductions on its electric vehicle (EV) portfolio on September 10. The Tata Punch EV and Nexon EV have seen price reductions of up to ₹1.2 lakh and ₹3 lakh, respectively, while the Tata Tiago EV has witnessed a price reduction of ₹40,000. The Tata Tiago EV will start at₹7.99 lakh, the Tata Punch EV at₹9.99 lakh, and the Nexon EV at₹12.49 lakh after the price reductions. According to Tata Motors, this action would promote the rapid adoption of EVs and help EVs become more widely accepted in India.

Maruti Suzuki India: The business intends to address key customer issues including range anxiety, the availability of charging infrastructure, and resale value as it gets ready to introduce its first electric vehicle (EV) in January 2025. To facilitate a more seamless rollout of EVs in the Indian market, the business is concentrating on resolving these crucial concerns.

L&T: To enhance processor design for edge devices and hybrid cloud systems, L&T Semiconductor Technologies, a subsidiary of L&T, has partnered with IBM in a strategic relationship. This partnership is expected to support the advancement of semiconductor technology in India and stimulate innovation in computer applications.

Reliance Industries: Delta Galil Industries and Reliance Retail Ventures, the company’s retail division, have established a 50% joint venture. Through this collaboration, the company hopes to increase the range of clothing it offers in India, concentrating on bringing cutting-edge underwear and sportswear to the country’s consumers.

Mahindra & Mahindra: The business has vehemently refuted the Congress party’s accusations about preferential treatment in relation to market regulator Sebi and its executives. Mahindra & Mahindra underlined how dedicated it is to upholding strict corporate governance guidelines.

Coal India: The business intends to build coal-fired power plants close to its mining activities, investing around₹67,000 crore in the process. This action emphasizes India’s continuous dependence on coal to satisfy its energy demands, with an additional 4.7 gigawatts of production capacity anticipated to be added over the next six to seven years.