Nomura Warns: India's Growth Slowing, RBI's Outlook Too Rosy

• Indian benchmark indices rebounded strongly on Monday, October 28, as gains in financials and metal stocks, along with positive global signals, helped the market recover from a five-day decline.

• All major sectoral indices closed in the green, led by the Nifty PSU Bank Index, which surged 4% in its biggest intraday rise in a month. This rally was fuelled by Bank of Baroda's robust September quarter results, boosting investor confidence in the sector.

• The Nifty Media, Nifty Realty, and Nifty Pharma indices also ended the session with gains above 1%.

Yes Bank +6.60%

• The stock surged nearly 7 percent after reporting stronger-than-expected results for the July-September quarter (Q2FY25).

• The bank’s net profit saw a remarkable two-fold year-on-year increase, reaching Rs 553 crore in Q2FY25, up from Rs 225 crore in the same period last year.

• Net interest income (NII) also showed robust growth, rising 14.3 percent year-on-year to Rs 2,200 crore from Rs 1,925 crore in Q2FY24.

Interglobe Aviation (8.04%)

• Shares of IndiGo's parent company dropped 8 percent after the airline posted a net loss of Rs 987 crore for the quarter ended September 30, 2024, down from a net profit of Rs 189 crore in the same period last year.

• Despite the weak earnings, brokerages stayed optimistic on the stock due to robust demand and the company's initiatives to expand its international presence through strategic alliances and loyalty programs.

• India is experiencing a cyclical growth slowdown, with Nomura labeling the RBI's 7.2% growth estimate as "overly optimistic." (ET)

• Oil prices are expected to decline as Israel demonstrates restraint in its strikes on Iran. (ET)

• RBI anticipates UPI transactions will soon reach 1 billion. (FE)

• Tata launches Neu Flash to enter the quick commerce market, competing with Blinkit, Instamart, and Zepto. (BT)

• Avanse Financial has received SEBI approval for its Rs 3,500 crore ($416Mn) IPO. (Inc42)

• Afcons Infra IPO was 36% subscribed on Day 2, with the retail portion also fully booked at 36%. (MC)

• Waaree Energies shares closed up 56% on debut. (MC)

• Deepak Builders & Engineers shares closed 20% down on debut. (MC)

This week’s mainboard IPO schedule

• Afcons Infrastructure

  • Offering Period: 25 October - 29 October, 2024

  • Listing Date: 01 November, 2024

  • Issue Price: 440-463

  • Lot Size: 32

M&A / Investments

• JSW Energy outbids Adani Power for KSK Mahanadi with a Rs 15,985 crore ($1.90Bn) offer. (BS)

• InsuranceDekho is set to acquire rival RenewBuy, valuing it at Rs 2,523-2943 crore $300-350Mn). (ET)

• Tata Power acquires a 40% stake in Khorlochhu Hydro Power for Rs 830 crore ($98.7Mn). (BS)

• Fintech startup Slice and North East Small Finance Bank have completed their merger. (YS)

• Cyient acquires a 27.3% stake in Azimuth AI. (BS)

• Sistema.bio has acquired Inclusive Energy. (ET)

Debt

• Udaan raises Rs 300 crore ($35.7Mn) in debt from Lighthouse Canton, Stride Ventures, and others. (YS)

• Arya.ag secures a Rs 166 crore ($19.8Mn) debt facility from the US International DFC. (YS)

VC