Indian Share Market News: April 12, 2024

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Introduction

The Indian share market has been buzzing with activity, and several key developments have caught the attention of investors and traders alike. In this blog, we’ll delve into some of the recent Indian share market news highlights, providing insights and analysis for those keen on understanding the market dynamics.

NTPC Green’s Ambitious IPO

NTPC Green Energy, a subsidiary of NTPC, has set its sights on going public. The company has shortlisted four prominent investment banks—IDBI Capital Markets and Securities, HDFC Bank, IIFL Securities, and Nuvama Wealth Management—to manage its highly anticipated ₹10,000 crore initial public offering (IPO). With plans to add 4-5 GW of renewable power capacity and a focus on green energy projects, NTPC Green aims to make a significant impact in the energy sector.

Additional Read:NTPC Share Price

Vodafone Idea’s Fundraising Endeavor

Vodafone Idea, facing financial challenges, is gearing up for an ₹18,000 crore Follow-on Public Offer (FPO). The FPO, scheduled to open on April 18 and close on April 22, aims to bolster the telecom service provider’s financial position. Investors should keep a close eye on this development as it unfolds.

Additional Read:Vodafone Ideas Share Price

Tax Treaty Revisions for FPIs

The Indian government has revised the India-Mauritius tax treaty, ending tax relief for foreign portfolio investors (FPIs) originating from Mauritius. The amendment introduces a Principal Purpose Test (PPT) to prevent treaty abuse. FPIs must now demonstrate that their choice of jurisdiction wasn’t solely for tax advantages. This move could significantly impact investment strategies.

Jefferies India Initiates Coverage on IDFC First Bank with Strong Buy Rating and Raised Target Price

Jefferies India recently began covering IDFC First Bank, issuing a 'buy' rating and setting a target price of Rs 100 per share, marking a 26 percent increase from the bank's current market price. Jefferies highlighted IDFC First Bank’s robust growth trajectory in retail deposits, which increased by over Rs 50,000 crore between March 2021 and December 2023, showcasing a 30 percent compound annual growth rate (CAGR). The bank has been expanding its lending operations across retail, rural, and SME sectors and diversifying its corporate portfolio beyond infrastructure loans. Jefferies predicts a continued strong deposit growth at a 28 percent CAGR from FY24 to FY27, which will support the bank's expansion and bond repayments. It also forecasts a decrease in cost pressures as high-cost bonds reduce significantly by March 2026. Credit growth is expected to maintain a healthy 22 percent CAGR, driven by diverse lending sectors. The Loan-to-Deposit Ratio (LDR) is projected to decline significantly by FY27. 

ADB Optimistic About India's Economic Growth, Revises GDP Forecast to 7%

On April 11, 2024, the Asian Development Bank (ADB) updated its GDP growth forecast for India for the fiscal year 2024-25, raising it to 7 percent from an earlier estimate of 6.7 percent. This adjustment reflects increased confidence in India’s economic trajectory, buoyed by strong investment activities in both public and private sectors, and a notable improvement in consumer demand. These factors are expected to drive significant economic expansion, further supported by the steady performance of the manufacturing and services sectors. Additionally, the ADB anticipates a normal monsoon, which will bolster agricultural output and rural incomes, enhancing overall economic stability. The bank also projects a favourable inflation trend and a modest recovery in exports, despite global economic challenges. While acknowledging potential moderation, the ADB remains positive about India's growth prospects, projecting a further increase to 7.2 percent in FY 2025-26.

Conclusion

As the Indian share market continues to evolve, these news developments play a crucial role in shaping investor sentiment and market trends. Whether you’re a seasoned investor or a curious observer, staying informed about these developments is essential for making informed decisions. Stay updated with latest share market news with Bajaj Broking.

Remember, the share market is dynamic, and staying updated is the key to successful investing. 

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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