Morning Brief: Vedanta Up 0.30% and HCL Tech Up 0.38%; Indices Start Green as Oil Hits Multi-Year Lows

The Indian stock markets opened with a marginally positive bias this Wednesday, December 17, as investors cheered a massive drop in global crude oil prices. With oil plunging to $55 per barrel, its lowest level since 2021, the broader market sentiment is finding support from the prospect of a lower import bill for India. While the indices are holding steady, two major names are commanding the spotlight today: Vedanta and HCL Technologies.

The action is driven by significant corporate developments. Vedanta is in focus following the NCLT’s approval of its demerger plan, while HCL Technologies is in the spotlight due to a strategic skilling partnership with the NSE Academy.

Here is a comprehensive look at the market action, key corporate deals, and the stocks making headlines today.

Market Snapshot and The Macro Picture

As of 9:19 AM IST, the NIFTY 50 index was trading at 25,874.00, registering a gain of 13.90 points or 0.054 percent. The session began against the backdrop of a significant collapse in energy markets.

Stock Market News reports indicate that WTI crude prices plunged by 2.7 percent overnight to settle at $55.27 per-barrel. This marks the lowest close since February 2021. With prices now down 23 percent year-to-date, oil is on track for its worst annual performance since 2018.

Oil prices fell because there is more supply than demand. Major producers like the US and OPEC+ are keeping production high, overflowing the market.

(Source: NSE, Economic Times)

Economic Impact: Oil vs. Rupee

The fall in oil prices presents a mixed bag for the Indian economy. A weaker Rupee typically makes imports costlier. However, the scale of the drop in crude oil prices offers significant relief.

• The Math: Even if the Rupee weakens to 91 against the dollar, importing oil at $55 per barrel is cheaper than importing oil at $80 per barrel with the currency at 83.
• The Verdict: This scenario is likely to lower India’s overall oil import bill, acting as a positive trigger for the fiscal deficit despite currency volatility.

(Source: Trading Economics, Barron’s)

Major Corporate Deals and Promoter Actions

Several heavyweights are in focus due to large transactions and strategic agreements.

• Vedanta Demerger Approval: The NCLT Mumbai bench approved Vedanta’s demerger scheme on December 16, covering four key subsidiaries: Vedanta Aluminium Metal, Talwandi Sabo Power, Malco Energy, and Vedanta Iron and Steel. As of 10:52 AM IST on December 17, shares of Vedanta Ltd are trading at ₹571.20, reflecting a gain of ₹1.70 (0.30 %) for the day.
• Akzo Nobel India: Reports suggest that promoter Imperial Chemical Industries is looking to sell up to a 9 percent stake in the company through a block deal. The offer size is estimated at ₹1,290.6 crore, with a floor price set at ₹3,150 per-share.
• Ola Electric Mobility: In a significant move to clear debt, founder Bhavish Aggarwal has sold 2.62 crore equity shares (0.59 percent stake) for ₹91.87 crore. The shares were sold at ₹34.99 each. Aggarwal stated that this one-time sale was to fully repay a promoter-level loan of ₹260 crore.
• Saregama: The music giant is expanding its portfolio by entering into a deal with Bhansali Productions. Saregama has acquired 9,960 compulsory convertible preference shares for ₹325 crore. The agreement allows the company to potentially acquire up to a 51 percent stake in the production house by March 2030.
• Glenmark Pharmaceuticals: Its subsidiary has signed an exclusive licensing deal with Hansoh Pharma for Aumolertinib, a lung cancer treatment drug. The deal involves an upfront payment in the low double-digit millions (USD), with potential milestone payments exceeding $1 billion, plus royalties.

(Source: Moneycontrol, Business Standard)

Infrastructure and Order Book Wins

Construction and engineering firms have announced substantial new contracts.

• Ahluwalia Contracts: The firm secured an order worth ₹888.38 crore from the Bihar State Tourism Development Corporation. The project involves the development of the Shri Ram Janmabhoomi Tirtha Kshetra in Ayodhya at the Punauradham site in Bihar.
• NBCC (India): The state-run company bagged orders totalling over ₹345 crore. This includes a ₹332.99 crore project management consultancy contract from IIT Mandi and a maintenance contract worth ₹12.05 crore from Kandla SEZ.

(Source: Moneycontrol)

Strategic Partnerships and Tech Updates

• Kaynes Technology: Its subsidiary, Kaynes Semicon, has forged partnerships with Japanese leaders AOI Electronics and Mitsui & Co. These alliances aim to boost semiconductor manufacturing operations in India.
• HCL Technologies: The tech major has partnered with NSE Academy to offer certificate programmes in finance and technology. These courses target students and professionals in India, the Middle East, and South Asia. As of 10:49 AM IST on December 17, HCL Technologies is trading at ₹1,657.90, reflecting a gain of ₹6.20 (0.38%) for the day.

(Source: Moneycontrol, Economic Times)

Institutional Moves: Block and Bulk Deals

Institutional activity remains high with significant hands changing stakes in mid-cap companies.

• Pearl Global Industries: SBI Mutual Fund acquired a 1.43 percent stake for ₹105.68 crore, while the promoter sold a similar quantity.
• Indian Overseas Bank: The government is set to initiate an Offer for Sale (OFS) to offload up to 2 percent equity in the bank, with an option for an additional 1 percent. The floor price is fixed at ₹34 per share.

(Source: Moneycontrol)

New Listings and Brokerage Calls

The primary market is buzzing with four new listings today. On the mainboard, Nephrocare Health Services and Park Medi World are making their debut. Meanwhile, Unisem Agritech and Shipwaves Online are listing on the SME platform.

On the Analyst Radar

• Meesho: UBS has initiated coverage on the e-commerce player, praising its asset-light model and positive cash flows. The stock is already up over 60 percent from its IPO price.
• Orkla India: JPMorgan has projected a 21 percent potential upside for the stock, initiating coverage with a positive outlook.

(Source: CNBC)

Corporate Governance and Key Dates

Finally, boardroom changes and corporate actions are guiding investor sentiment.

• Sequent Scientific: Haribabu Bodepudi has been appointed as MD and Group CEO.
• Kajaria Ceramics: The board approved the redesignation of Ashok Kajaria as Chairman and Rishi Kajaria as MD.
• Ex-Dates: Stocks trading ex-date today include eClerx Services (Buyback), Krishival Foods (Rights), and Sylph Technologies (Bonus).

(Source: Moneycontrol)

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