JSW Energy shares extended gains on Wednesday after the company on Tuesday announced that it has bought two hydro power projects of debt-ridden Jaiprakash Power Ventures (JPVL) in Himachal Pradesh for Rs 9,700. (Reuters)

JSW Energy shares extended gains on Wednesday after the company on Tuesday announced that it has bought two hydro power projects of debt-ridden Jaiprakash Power Ventures (JPVL) in Himachal Pradesh for Rs 9,700 crore.

At 11.31 am, JSW Energy shares were trading 4.24 per cent higher at Rs 77.40 apiece. It opened at Rs 76.55 and had touched a high and low of Rs 78.80 and Rs 76, respectively, in trade so far. The share price of JSW Energy climbed around 10 per cent to Rs 74.25 on Tuesday.

The two projects bought by JSW Energy are 300 MW Baspa-II and 1,091 MW Karcham Wangtoo. Besides, JSW Energy has also entered into a binding agreement with JPVL to acquire 500 MW Bina thermal power plant in Madhya Pradesh.

Share price of JPVL was trading 1.37 per cent higher at Rs 5.93 in the morning trade. The scrip jumped 5.02 per cent to Rs 5.85 on Tuesday.

In a BSE filing on Tuesday, JPVL said, “The company has concluded the Sale of Securities of Himachal Baspa Power Company Limited (HBPCL) to JSW Energy at an Enterprise Value (EV) of Rs 9,700 crore reduced by mutually agreed adjustments, including inter-alia Rs 300 crores which is payable upon receipt of certain additional consents and approvals related to the Karcham Wangtoo HEP.”

Navkar Corporation shares gained as much as 5.6 per cent on Wednesday in morning trade after opening around 2 per cent down than its issue price. (Reuters)

Navkar Corporation shares gained as much as 5.6 per cent on Wednesday in morning trade after opening around 2 per cent down than its issue price.

At 10.21 am, shares of the logistics company were trading 2.3 per cent higher at Rs 158.60 apiece as compared with its issue price of Rs 155. It opened at Rs 152 and touched a high and low of Rs 163.80 and Rs 152, respectively, in trade so far. Sensex was up over 300 points at 25,653.

The logistics company made its debut on the BSE and NSE on Wednesday. The company’s IPO closed on August 26, 2015 and was subscribed 2.85 times, with total bids for 8.14 crore shares, compared with 2.85 crore equity shares on offer.

Navkar Corporation is a CFS operator having three units – Ajivali CFS I and Ajivali CFS II at Ajivali, and Somathane CFS at Somathane. All of the three CFS units are located in close proximity to the Jawaharlal Nehru Port, India’s largest container port.

As of March 2015, the company’s aggregate installed handling capacity stood at 310,000 TEUs per annum. The company also offers services like cargo storage facilities at CFSs, packing, labeling/bar-coding, palletising, fumigation and other related activities. It also provides warehousing facilities, for which, it occupies an aggregate area of 500,000 sq ft. Further, the company owns and operates a private railway freight terminal equipped with 461 trailers for the transportation of cargo between CFSs and the Jawaharlal Nehru Port.

Stocks of Navkar Corporation will be in focus as the logistics company will makes its debut on the stock exchanges today. (PTI)

The BSE Sensex and NSE Nifty opened on a positive note on Wednesday following strong global cues. At 9.24 am, Sensex was up 350.29 points at 25,668.16. Similarly, Nifty was up 114.95 points at 7,803.20 during the same time.

Below are the stocks that are likely to make news today

Navkar Corporation: The logistics company will makes its debut on the stock exchanges today. The company’s IPO closed on August 26, 2015 and was subscribed 2.85 times, with total bids for 8.14 crore shares, compared with 2.85 crore equity shares on offer.

HUL: The FMCG major on Tuesday said it has sold the bread and bakery business under ‘Modern’ brand to Everstone Group’s Nimman Foods Pvt Ltd for an undisclosed sum.

IVRCL: The infrastructure major has cut its employee strength by almost 23 per cent in the last fiscal as a cost cutting measure caused by economic slowdown coupled with delays in execution of projects.

Indiabulls Housing Finance: Indiabulls Housing Finance on Tuesday said that it plans to sell shares to qualified institutional investors to raise as much as $1 billion (around Rs 6674.45 crore). The company will sell shares at a minimum price of Rs 738.64 each in the offering.

Hinduja Ventures: The company post market hours on Tuesday said that its subsidiary, Grant Investrade, has bagged the operating licence for the HITS (Headend-in-the-Sky) digital television services from the Ministry of Information & Broadcasting.

Tata Power: Tata Power started work to set up its Rs 450 crore defence manufacturing facility in Karnataka with the state’s Chief Minister Siddaramaiah laying its foundation stone.

TCS: Tata Consultancy Services (TCS) on Tuesday said that it has been cleared of all charges on alleged misuse of work visas by the US department of labour. A spokesperson of TCS said, “Audits by the US department of labor have taken place from time to time and TCS has always been found to be compliant. TCS attaches the highest importance to a strict compliance programme and abides by all regulatory requirements and visa laws.”

The 30-share Sensex, which plunged to 15-month low in Monday’s trade, staged a strong comeback to reclaim the 25,000-level and settled 424.06 points higher at 25,317.87 on Tuesday. (Express photo)

The BSE Sensex and NSE Nifty on Wednesday are likely to open higher tracking SGX Nifty and strong global cues.

At 8.15 am (IST), SGX Nifty was up 108 points, or 1.38 per cent, at 7,844.

Asian peers, Nikkei, Hang Seng and Shanghai were up 5.68 per cent, 2.42 per cent and 1.80 per cent at 18,416.67, 21773.51 and 3227.54, respectively. Japan’s Nikkei share average rebounded on Wednesday as sentiment rallies in US and European stocks dramatically boosted morale after the Nikkei wiped out its year-to-date gains on Tuesday.

US stocks rose more than 2 per cent on Tuesday, bouncing after steep losses last week and a China-fueled rebound in global equities.

The 30-share Sensex, which plunged to 15-month low in Monday’s trade, staged a strong comeback to reclaim the 25,000-level and settled 424.06 points higher at 25,317.87 on Tuesday on value-based buying in recently beaten down blue-chips and a firming trend in global markets, helped by a late rally in Chinese equities.

(With inputs from agencies)

The Maggi issue aside, investors have been concerned about excessive price hikes and lack of innovation, and the resultant impact on volumes. While it is hard to establish causality in a slowing market, we believe these concerns are now behind us.

Price increases in the past three years have been reasonable, while the pace of product launches has remained steady. We believe Nestle is now well positioned for an eventual recovery in urban spends.  Maintain buy.

Nestle grew at its slowest pace ever in the past three years, with revenue growth at c9% p.a. in CY11-14 against a historical average of c14% p.a. Volume trends look even worse, with most of its segments registering a decline as opposed to 7-19% p.a. growth. The market has largely attributed this to Nestle’s pricing strategy and excessive focus on margins. While it is hard to establish causality, given the broader weakness in consumption particularly in urban discretionary categories, we believe these concerns are now largely behind us.

Nestle’s price increases in the past four years are at par with other companies and in line with the broader consumer price inflation trends. Recent pricing action in dairy likely indicates the company’s willingness to pass on commodity benefits.

The market has also been concerned about lack of innovation in recent years. This is partly true, as Nestle has had no new brands, except the premium chocolate brand Alpino in 2013. However, the company has maintained a steady stream of product launches in recent years, no different from its 10-year track record.