Category: Market Updates

Why are defence stocks like HAL, BEL, Mazagon Dock, and others resisting the current bear market?

Posted on by Btech Traders

What Happened: The rally was held in conjunction with the Defence Acquisition Council’s (DAC) approval of significant purchases for the Indian Armed Forces valued at ₹1.44 lakh crore. These purchases include new fast patrol vessels and next-generation offshore patrol vessels for the Indian Coast Guard, future ready combat vehicles (FRCVs), air defence fire control radars for the Army and Dornier 228 aircraft, and more.

Ten capital acquisition proposals received an acceptance of need (AoN) during the Tuesday meeting of the Defence Acquisition Council (DAC), which was presided over by Defence Minister Rajnath Singh. Reiterating the government’s emphasis on self-reliance in defence, 99% of these acquisitions will come from Indigenous producers under the “Buy (Indian)” and “Buy (Indian-Indigenously Designed Developed and Manufactured)” groups.

The protracted defence procurement process, in which the AoN is the first step, has begun with the DAC’s approvals. Although the granting of an AoN is essential, it does not ensure a final order because other examination and negotiation steps are needed.

Price Action: Here is how defence stocks trade on Wednesday morning:

Shares of MTAR Technologies Ltd rose slightly by 0.03% to ₹1,807.85.

Shares of Zen Technologies Limited were up 0.18% to ₹1,680.55.

Shares of Hindustan Aeronautics Ltd increased by 0.28% to ₹4,845.70.

Shares of Bharat Electronics Ltd gained 0.52% to ₹298.70.

Shares of Data Patterns (India) Ltd were up 0.86% to ₹2,760.70.

Shares of Bharat Dynamics Ltd increased by 0.96% to ₹1,332.90.

Shares of BEML Ltd rose by 1.10% to ₹3,892.95.

Shares of Cochin Shipyard Ltd were up 1.21% to ₹1,904.05.

Shares of Paras Defence and Space Technologies Ltd increased by 1.52% to ₹1,263.00.

Shares of Mazagon Dock Shipbuilders rose by 1.74% to ₹4,531.80.

Shares of Garden Reach Shipbuilders & Engineers Ltd led the gains, up 2.01% to ₹1,951.55.

Brokerages’ Views: ICICI says that the developments imply that the government is concentrating on enhancing the capabilities of the Air Force, the Army and the Coast Guard. It expects companies that make aero-engine parts, to benefit from increased domestic sourcing requirements, as long as they get the needed approvals.

Additionally, the domestic ecosystem might receive a boost, as the majority of acceptance of necessity (AoNs) fall under the “Buy Indian” and “Buy Indian-Indigenously Designed Developed and Manufactured” categories, which reinforce the government’s focus on self-reliance in defence.

Bharat Electronics (BEL) stands to gain from its participation in nearly every platform, the brokerage said, selecting the firm as its top pick among defence PSUs. It had an “add” rating for the stock with a target price of ₹350.

Among the non-government entities, its top picks were Solar Industries and Azad Engineering. It had a “buy” call on both firms with target prices of ₹13,250 and ₹2,450 respectively.

Antique Stock Broking also expressed optimism for the industry, which it said is set for strong growth opportunities in the near to long term.

“The total share of domestic procurement has seen a phenomenal improvement from 54% in FY19 to 75% in FY24 and is expected to improve further,” Antique said.

It said that the recent procurement and orders are a great opportunity for defence firms and maintained a “buy” recommendation for most stocks within its coverage, including HAL with a target price of ₹6,145, BEL with a target price of ₹381, Bharat Dynamics with a target price of ₹1,579, Mazagon Dock Shipbuilders with a target price of ₹5,486 and Garden Reach Shipbuilders (GRSE) with a target price of ₹2,092.

Congress attacks Prime Minister Modi and queries if he knew about SEBI Chair Buch’s “conflict of interest.”

Posted on by Btech Traders

The Indian National Congress (INC), the country’s largest opposition party, made new accusations against Prime Minister Narendra Modi and SEBI head Madhabi Buch on Monday, September 2.

The party demanded an explanation from PM Modi on Buch’s appointment to lead the market regulator. 

Congress leader Pawan Khera levied a slew of charges against Madhabi Puri Buch, the chairman of the Securities and Exchange Board of India (SEBI), and her relationship to ICICI Bank. According to Khera, Buch has been paid by both the government and two private institutions, ICICI Bank and ICICI Prudential. During a press conference, he revealed that Buch earned a steady income of Rs 16.80 crore from ICICI Bank between 2017 and 2024, which is five times her pay of Rs 3.30 crore from SEBI. He further said that Buch was paid during this period even though numerous investigations against ICICI Bank were resolved.

Allegations Raised Against The SEBI Chairperson

He claimed that in violation of Section 5 of SEBI’s Code on Conflict of Interests for Board Members (2008), which forbids full-time SEBI employees from accepting benefits from any other organisations and from engaging in activities that involve receiving a salary or fee, Buch received a salary of Rs 12.63 crores from ICICI Bank between 2017 and 2021 while serving as a full-time member of SEBI.

Additionally, Buch received an ESOP of Rs 2.84 crore from ICICI Bank between 2021 and 2023. According to Khera, the SEBI chairperson received TDS on the ESOP during that same time period, which was paid by ICICI Bank in the amount of Rs 1.10 crores.The Congress spokeswoman questioned Buch, saying, “You are also a full-time SEBI member. Why were you taking a salary from ICICI?”

Questions Raised Against PM Modi

“Was the Prime Minister aware that the SEBI chairperson was holding an office of profit and receiving salary/income from ICICI during her time at SEBI?” Khera posed a query to Prime Minister Modi. He went on to question why and by whom the SEBI chairperson is being protected.

The head of the Congress emphasised that Union Minister Amit Shah and Prime Minister Modi’s Appointments Committee of the Cabinet make the appointment of SEBI’s chairwoman.

“The people have put their trust in SEBI, whose chairman is directly appointed by the Indian Prime Minister (Annexure 1), but it seems like they have been lying to us the entire time,” he remarked.

ICICI’s statement

 Later that day, ICICI issued a statement emphasising that it had not given Buch a pay following her retirement.


“ICICI Bank or its group companies have not paid any salary or granted any ESOPs to Ms Madhabi Puri Buch after her retirement, other than her retiral benefits,” claimed the bank.

“Ms. Buch received all of the payments after she retired, which had been accrued throughout her time working for the ICICI Group. Retirement benefits and ESOPs are included in these payments,” the statement continued.


Buch reportedly received enormous compensation from a consulting firm throughout her seven-year term, allegedly in violation of the 2008 SEBI guideline, according to Reuters. The SEBI chairman and her husband Dhaval Buch are the targets of additional charges made by Hindenburg Research, which states that they have investments in offshore accounts purportedly connected to the Adani money-laundering case. Buch refuted all of the accusations, even though many demanded that she step down as the regulatory body’s chair.

The share prices of Patel Engineering and RVNL rose by more than 5% following the agreement to undertake electricity infrastructure projects.

Posted on by Btech Traders

After the company announced on Friday that it had inked a memorandum of understanding (MoU) with Patel Engineering, shares of Rail Vikas Nigam surged by more than 3%.
According to RVNL, the primary goals of the MoU are to collaborate and provide a supportive environment in order to realise synergies in the domains of hydropower and other infrastructure projects.

The business recently defeated Southern Railway to get the lowest bid (L1) on a project worth more than ₹111.38 crore. The directive must be carried out, according to RVNL, within 18 months.

RVNL said earlier this month that it and Dhaya Maju Infrastructure (Asia) Sdn Berhad (DMIA) had inked an agreement. The main goal of the Memorandum of Understanding, according to the business in an exchange filing, is to specify the terms and circumstances under which RVNL and DMIA may cooperate to jointly participate in railway infrastructure and services projects in the ASEAN market and other regions.

According to the company, building a manufacturing base in Malaysia for railway carriages and other railway items will receive particular attention in order to meet the expanding demand of ASEAN nations.
In July, RVNL also received a number of orders. The company said that, under the revised reforms-based and results-linked distribution sector scheme, it had emerged as the lowest bidder (L1) for the building of distribution infrastructure in the central zone of Himachal Pradesh.

Additionally, the company was given a letter of acceptance by South Eastern Railway for the design, supply, installation, testing, and commissioning of 132 kV traction substations, sectioning posts, and sub-sectioning posts on the Chakradharpur division of South Eastern Railway’s Rajkhaswan-Nayagarh-Bolani section.

Meanwhile, operations’ revenue fell 27% YoY to ₹4,073.80 crore in the first quarter of the fiscal year 2025. The total revenue was ₹4,336.75 crore, a 26% YoY decline. YoY, net profit dropped by 35% to ₹224 crore.

Since the start of the year, shares of RVNL have increased by more than 228%. In the past year, the stock has increased by almost 365%.


Adani Enterprises likely to demerge airport business and list by 2027-28

Posted on by Btech Traders

Adani Enterprises, which already manages seven significant airports in India, including those in Mumbai and Navi Mumbai, is growing its presence in the aviation industry. This demerger coincides with this growth. The corporation intends to increase service offerings and infrastructure in addition to making large investments in airport operations.The move to split off the airport company is consistent with Adani Group’s standard practice of nurturing ventures under Adani Enterprises until they are ready to be spun out into separate companies. The group’s growth strategy has always been characterised by this approach, which enables targeted management and investments in niche markets.

The proposed demerger is anticipated to set Adani’s airport operations up for future success as the country’s aviation sector is predicted to grow significantly. This would allow for more focused investments and operational approaches that are specifically designed to meet the demands of the aviation market.

IIFL Securities faces penalties from Sebi for following the circulars and the Securities Contract Regulations.

Posted on by Btech Traders

IIFL Securities has been fined Rs 11 lakh by the capital markets regulator for breaking several guidelines and rules stipulated in the Securities Contracts (Regulations) Rules, including borrowing money from customers.


The Securities and Exchange Board of India declared in an order dated August 21 that the broker had paid 136 clients a total of Rs 17.43 crore in order to advance a “fund-based agreement” that appeared to include borrowing money from the clients.

It was discovered that the broker was keeping two ledgers: a trading ledger and a margin deposit ledger. When Sebi authorities examined a sample of 20 clients and the first ledger, they discovered that the broker was collecting money from each client on a regular basis and giving them interest at a rate that was mutually agreed upon. 

According to the decision, the sample of 20 clients received payments totaling Rs 15.51 crore, with interest rates ranging from 4% to 5% annually.
Although it was discovered that the client was giving the broker instructions to set up a fixed deposit, the ledgers revealed that no such deposit had been made.


The money that clients deposited in the Trading Ledger appeared to be used for both trading and satisfying margin requirements; the clients were being compensated by the broker for their usage of this money.

It was also discovered that some clients were paying the same amount to the broker and receiving monies from IIFL Finance (NBFC). According to the order, the broker was paying about 11% in interest for the use of these assets.

India is about to regulate cryptocurrencies: the government is drafting a consultation paper and consulting interested parties.

Posted on by Btech Traders

A consultation document on cryptocurrencies will be released by a panel chaired by the Secretary of the Department of Economic Affairs (DEA), and it is anticipated to be published in September or October, according to sources.

The government of India is actively involved in determining the direction that digital currencies will take in the country, as evidenced by this paper that seeks input from stakeholders on how to regulate crypto assets.

October 2023 saw the Finance Minister, Nirmala Sitharaman, declare that the G20 countries have united in their stance to cryptocurrency regulation.

Since everyone is now in agreement on the global scale on the possibility of regulations, nation-specific legislative procedures will also need to be worked out.

SEBI bans Anil Ambani, 24 others, including a five-year Reliance Home Finance official from the security market

Posted on by Btech Traders

Industrialist Anil Ambani and 24 other parties, including former senior officials of Reliance Home Finance, have been barred from the securities market for a period of five years by the Securities and Exchange Board of India (SEBI). Their role in the misappropriation of business cash is the reason behind this action.

Significant financial fraud involving Reliance Home Finance Ltd. (RHFL) has been discovered by SEBI. The plan, which was spearheaded by Anil Ambani and other important individuals, consisted of stealing large sums of money from the business through questionable loan disbursements, severely undermining shareholder profits.

Unprecedented lending amounts given to unsuitable organizations

RHFL sanctioned and disbursed significant Guaranteed Payment Credit (GPC) loans totaling thousands of rupees between FY18 and FY19. Extremely poor financial profiles, including negative net worth and minimal assets, were the recipients of these loans. It is concerning that these loans were approved without any documented security or collateral.

It was common for RHFL’s management to stray from basic credit due diligence. Internal credit ratings were disregarded in spite of the borrowers’ obvious financial vulnerabilities, and the need to determine the likelihood of default was dropped. Because of this lax oversight, hazardous loans were able to move forward unabated.

The Board of RHFL formally directed the suspension of GPC loan payments on February 11, 2019. But the business went on making these loans, even ones that Anil Ambani, as group leader, had approved. The seriousness of the internal control shortcomings is demonstrated by this contempt for board directions.

It has come to light that the promotional group was connected to both the recipients of the monies and the borrowers of the GPC loan. These links were further validated by promoter-group companies’ post-facto promises. Concerns regarding the loan quality and recoverability were voiced by the Statutory Auditor PWC, who resigned in June 2019.

Important participants were fined


Amit Bapna has been fined ₹27 crore by SEBI, Ravindra Sudhalkar ₹26 crore, and Pinkesh Shah ₹21 crore. A number of organizations connected to the fraudulent scam have also been fined ₹25 crore apiece. Their roles in aiding or profiting from unlawful loan disbursements have resulted in these punishments.

As the head of the ADA Group and a major supporter of RHFL’s parent firm, Anil Ambani was instrumental in arranging the illegal loans, according to SEBI. He had the power to approve large loan amounts and to allocate money to affiliated companies.
Despite deviating from established protocols, Bapna, a member of the Credit Committee and a former CFO of RHFL, participated in the loan approval process.Even after the board ordered that GPC loan disbursements stop, he persisted in facilitating them.

In his capacity as RHFL’s CEO, Sudhalkar oversaw the loan administration and approval process. He disregarded the board’s directions, failed to collect money, and broke promises, all of which SEBI said contributed to the company’s final demise.

Shah, the CFO in charge of accounting and finance, verified the accuracy of the company’s financial statements even though he was aware of the dubious lending practices and the auditor’s worries.


Shares of Zomato jumped 6% to a record high after UBS raised its target price.

Posted on by Btech Traders

Zomato’s shares surged 6% on Monday, reaching a new 52-week high of Rs 280 on the BSE. This was following UBS, a global brokerage company, raising its target price on the new-age stock from Rs 260 to Rs 320.

“We increase our GMV estimates for food delivery (+2-3%) and quick commerce (+20-30%) for FY26-28e following the strong Q1 and solid guidance. Our adjusted EBITDA estimates for the next 1-2 years are up only slightly as investments in building supply for quick commerce will likely result in a more modest margin trajectory,” UBS said in a note while maintaining a buy call.

The brokerage said it has also increased employee cost estimates to reflect investments in manpower. “These changes, coupled with a rollforward of our valuations and higher multiples for Going Out and Hyperpure, lead to a higher PT of Rs320. Zomato is trading at FY27e EV/EBITDA of 35x, vs the AVG of Indian consumer / retail peers at 30x, with a superior growth and margin expansion profile,” it said.

On Zomato, CLSA has the highest target price at Rs 350. Bernstein wants to see Rs 275, Nomura wants to see Rs 280, and Motilal wants to see Rs 300. Zomato revealed a multi-fold increase in Q1 earnings in the June quarter, going from Rs 2 crore in the same quarter of the previous year to Rs 253 crore. Operating revenue reached Rs 4,206 crore during the reporting period, a 74% YoY increase. Zomato’s market valuation is currently approaching Rs 2.5 lakh crore, having more than doubled in value thus far in 2024.

Ola Electric’s market value surpasses Rs 51,000 crore as its shares soar 71% in only three days.

Posted on by Btech Traders

This increase occurs on August 14, the day before Ola Electric Mobility is expected to release its Q1 results. According to a company filing, the Bhavish Aggarwal-led business will evaluate and approve the unaudited standalone and consolidated financial statements for the quarter ended June 30, 2024, at its first board meeting since listing.


Ola Electric, meantime, is getting ready to launch its first electric motorcycle on July 4. The initiative has been a long-term effort for the corporation, despite official specifics being kept under wraps. Ola unveiled concept cars including the Diamondhead, Adventure, Roadster, and Cruiser in August 2023.

Local mutual funds earned forty percent of the anchor book’s entire allocation, with foreign investment firms receiving roughly fifty-four percent. SBI MF, HDFC MF, and Nippon India MF are the domestic mutual funds that received comparatively larger allotments in the anchor component when compared to other funds.

Shares of the business were trading at 114 at 9:42 am, up 5% from the previous NSE close.