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Informist, Friday, Nov. 28, 2025                                      Tel +91 (22) 6985-4000

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Equity Alert: GAIL down 6% on lower-than-expected transmission tariff hike

 

MUMBAI--1135 IST--Shares of GAIL (India) declined over 6% Friday to a more than one-month-low of INR 172.22 after the Petroleum and Natural Gas Regulatory Board's upward revision of the transmission tariff fell short of the company's initial ask. The regulatory body late Thursday raised the transmission tariff to INR 65.7 per million metric British thermal units, up 12% from the previous rate of INR 58.6 mBtu, but lower than the INR 78 per mBtu that GAIL had sought. The new tariff would be applicable from Jan. 1. 

 

At 1119 IST, shares of the company traded nearly 6% lower at 172.95 on the National Stock Exchange. The stock fell for the second consecutive session. Over 33 million shares of the company have changed hands so far, nearly 26 times higher than the 1.29 million shares traded till the same time Thursday. 

"Our base case estimates were at a 15% increase from 2026-27 (Apr-Mar), so the 12% increase implies a 2.5% to 4.7% hit to GAIL's earnings per share for financial year 2027 and 2028," CNBC quoted from an ICICI Securities report. The brokerage also said the adjustments for actual and future capital expenditure and operational expenditure are not being considered in the current tariff revision, stating that the regulator intends to limit the impact on the customer at one go. Instead, truing up of factors such as actual and future capital expenditure and operating expenditure, transmission loss, working days, revenue sharing adjustments, and other amendments will be considered in the next tariff review exercise, which will be done in FY28, and take effect from Apr. 1, 2028.

 

This deferred review of other parameters to FY28 could lead to a material increase in tariffs and place unexpected financial pressure on customers, MSN reported, citing a research report from Swiss financial services company UBS.

 

Systematix Institutional Research maintained its 'hold' rating on GAIL and slightly raised its target price on the stock. The brokerage believes operational issues will be offset by the company's robust project pipeline. With the new tariff hike, Systematix Research sees GAIL's earnings in FY26 and FY27 go up by 3.1% and 5.5%, respectively. However, "due to a delay in tariff revision, we were factoring lower tariff hike of 8% from FY27 while consensus was somewhere at around 18-20% hike... We don't foresee any further tariff hike before Apr' 28 and transmission and trading volume growth is also very modest," the report said.

 

Of the 16 brokerage reports on the company available with Informist, 12 have a 'buy' or equivalent rating on the stock, with an average target price of INR 218. Three brokerages have a 'hold' rating and one brokerage has a 'sell' rating on the stock.  (Eshitva Prakash)

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Equity Alert: Sudeep Pharma lists at INR 733.95, 24% premium to issue price

 

MUMBAI--1125 IST--Shares of Sudeep Pharma Friday listed at INR 733.95 on the BSE at a premium of 24% to its issue price of INR 593. After listing, the stock rose nearly 34% to a high of INR 792.90 from its issue price. About 3 million shares of the company have changed hands on the exchange so far in the day. At 1119 IST, shares of the pharmaceutical company were trading at INR 785.05 on BSE, up over 32%.

 

The public offer comprised a fresh issue of shares worth up to INR 950 million and an offer for sale of up to 13.49 million shares. Sudeep Pharma plans to use INR 758.14 million from the net proceeds for capital expenditure towards procurement of machinery for its production line at Nandesari Facility I in Gujarat. The company will also use a portion of the net proceeds for general corporate purposes. Ahead of the offer, the company had raised INR 2.68 billion by issuing 4.53 million shares to anchor investors at INR 593 per share.

 

Sudeep Pharma manufactures excipients and speciality ingredients for the pharmaceutical, food and nutrition industries. For the June quarter, the company reported a net profit of INR 308.07 million on a revenue of INR 1.25 billion.  (Arundathi A R)

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Equity Alert: Nirmal Bang sees double-digit 2-wheeler, PV sales volume Nov 

 

MUMBAI--1040 IST--Nirmal Bang Institutional Equities expects the automobile industry to post strong double-digit on-year growth in sales for November across passenger vehicles, two-wheelers, and light commercial vehicles. For medium and heavy commercial vehicles and tractors, the broking firm expects sales volume to grow in single digits for each segment, supported by positive consumer sentiment, improved affordability after the goods and services tax cuts, strong rural demand, and better financing availability, it said in its report.

 

The broking firm said its top picks in the four-wheeler category is Mahindra and Mahindra, and Eicher Motors and Hero MotoCorp among two-wheelers. Among the auto components players, Suprajit Engineering and ASK Automotives remain its preferred stocks. In the tyre segment, its top pick is CEAT. 

 

Auto companies are scheduled to release their monthly sales volume data Monday. Ahead of the likely strong sales data, shares of most auto companies traded higher Friday and primarily pushed the benchmark Nifty 50 higher. The Nifty Auto was the top sectoral gainer, up almost 1% at 1040 IST. Top index gainers were Mahindra & Mahindra, Exide Industries, and TVS Motor Co., which were up 1-2%. On the other hand, Bajaj Auto, Tube Investments of India, and Bharat Forge were the worst-hit auto stocks, down around 1?ch. 

 

In the two-wheeler category, Nirmal Bang expects Bajaj Auto's sales to grow almost 9% on year at 400,000 units in November, TVS Motor Co. to post a 12% rise to 440,000 units, and Hero MotoCorp to report nearly 17% growth to 536,000 units. Sales volume of Eicher Motor's Royal Enfield is expected to rise almost 17% to 95,800 units, it said. 

 

For the passenger vehicles segment, sales volume of Maruti Suzuki India is likely to rise 12% on year to 200,000 units. A similar growth is seen for Mahindra & Mahindra as well as Tata Motors to 52,000 units each. For Hyundai Motor, sales are expected to grow nearly 9% on year to 66,500 units. 

 

Coming to commercial vehicle sales volume, the broking firm said it expects medium and heavy vehicle sales of Tata Motors to grow 9% to 28,500 units, that of Ashok Leyland to rise 10% to 15,600 units, and sales of Eicher to increase almost 10% to 6,100 units. The growth would be supported by improving freight movement, consumption, and stable financing, along with the momentum in exports, it said in the report.  (Anjana Therese Antony)

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Equity Alert: Mkt opens tad higher but turns choppy thereafter; auto cos up

 

MUMBAI--1000 IST--After notching fresh record highs in the previous session, the benchmark indices extended the gains to open marginally higher Friday. However, these indices turned choppy soon after the trading session began. Broader market indices were also choppy in early trade. Investors are likely to track India's GDP data due later in the day and the Reserve Bank of India's policy meeting, due next week. US equity markets are closed on account of Thanksgiving holiday. 

 

At 1009 IST, the Nifty 50 was at 26261.40 points, up 45.85 points, or 0.2%. The BSE Sensex was at 85904.35 points, up 183.97 points, or 0.2%. Index heavyweight Reliance Industries, up nearly 1%, lifted the Nifty 50 index further. India VIX, the Dalal Street's fear gauge, was down nearly 6%, indicating an ease in nervousness among investors. 

Sectoral indices were mixed in early trade, with the Nifty Auto up 0.4% and the top gainer. The index gained ahead of the release of monthly wholesale volumes data due Monday, where the automobile makers are expected to post robust volume growth. The sectoral index notched its all-time high level Thursday at 27832.60 points.

 

Among Nifty 50 stocks, Mahindra and Mahindra gained the most, up over 2%. The company plans to sell around 7,000 units of electric vehicles by the end of the financial year, Business Standard reported quoting a top executive of the company. TVS Motor Co., Hero MotoCorp, and Eicher Motors were up nearly 0.3-1.0%.

 

Information technology stocks recovered from initial losses and were trading slightly higher. The Nifty IT index was up 0.2% with Coforge, Tech Mahindra, and Mphasis up nearly 1%. (Arundathi A R)

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Equity Alert: Benchmark indices to open tad up; investors may buy on dips

 

MUMBAI--0827 IST--India's headline equity indices are expected to open marginally higher Friday after notching record gains in the previous session. While some analysts expect some profit booking at higher levels, others said every dip is an opportunity to buy. Some analysts said the equity indices are likely heading towards a fresh record high. Investors await India's GDP data for the September quarter, due later in the day. Analysts said the near-term trigger for the market is the Reserve Bank of India's monetary policy meeting, scheduled next week. It could especially impact policy-sensitive sectors such as banks and non-banking financial companies.  

 

The Nifty 50 is expected to open flat or marginally higher Friday and will likely move within a tight range of 26000-26400, Mandar Bhojane, a senior research analyst, said. The index will likely face resistance near 26350 points and find strong support at 26000 points, he added. 

 

The Nifty 50 hit its all-time high of 26310.45 points Thursday, but came off highs to close marginally higher at 26215.55 points. Among Nifty 50 constituents, 86% of them are yet to hit their record highs, with some even trading at half their previous highs. The BSE Sensex, which hit a record high of 86055.86 points Thursday, closed at 85720.38 points, up 110.87 points.    

 

For the September quarter, the Indian economy is likely to have fallen to a three-quarter low of 7.2% due to a slower pace of government spending and moderation in services sector activity, as per a poll of 21 economists by Informist. However, this growth is expected to be higher than the RBI's forecasts of 7.0% rise. 

 

In the US, benchmark indices were shut on account of Thanksgiving holiday. Elsewhere, in Asia, most indices were a tad lower in early trade. Only, Japan's Topix and FTSE Singapore Straits Times were higher. The South Korean market was down over 1?ter the country's central bank Thursday kept interest rates unchanged and signalled an end to the monetary policy easing cycle.  (Gopika Balasubramanium)

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Equity Alert: Asian markets mixed; South Korea's Kospi down 1%

 

 

MUMBAI--0800 IST--Equity indices in Asia were mixed in early trade Friday and MSCI's Asia index, excluding Japan, was marginally lower. South Korea's benchmark index was among the hardest hit, pulled down by a fall in shares of LG Energy Solutions. China's CSI 300 was marginally higher after falling earlier in the session. Most equity markets in the region were set for a monthly loss despite a weekly gain, owing to a fall in technology stocks and recent uncertainty over the US Federal Reserve's interest rate trajectory going forward.

 

Equity markets in the US were closed Thursday, owing to the Thanksgiving holiday. Stock futures were marginally higher before a shortened trading session Friday.

 

South Korea's KOSPI was 1% lower. Shares of LG Energy Solution fell more than 5?ter its parent LG Chem said it would pare its stake to about 70% from almost 80%, in order to improve shareholder returns, CNBC said. Shares of battery materials maker Enchem listed on the small-cap Kosdaq index jumped almost 13?ter South Korean media reported it had won an order from Chinese battery maker Contemporary Amperex Technology.

 

Hong Kong's Hang Seng index was 0.5% lower. Shares of Pop Mart International Group were up almost 5?ter China announced a new plan to boost consumption, including promoting upgrades of consumer goods in sectors such as pets and toys. JPMorgan Chase & Co. raised its recommendation to 'overweight' on Chinese stocks, stating that the prospect of large advances next year outweighs the risk of significant losses, Bloomberg reported.  

Over in the mainland, China's blue-chip CSI 300 index rose after a decline in early trade. Shares of real estate developer China Vanke fell 3?ter the company said it was seeking to delay an onshore bond repayment. "It is difficult to gauge if the government will continue to offer financing support to Vanke," Reuters quoted UBS property analysts as saying. The analysts also said that they saw spillover risk for the sector.

 

Japan's Nikkei 225 index was slightly lower and the broader Topix index was flat. Headline inflation in Tokyo eased to 2.7% in October from 2.8% the month before. Core inflation came in at 2.8%, slightly higher than the 2.7% expected by economists polled by Reuters. The Bank of Japan maintains a 2% inflation target and this reading increased the chances of the central bank raising its interest rate in the near term.

 

Following were the levels of key Asian indices at 0802 IST:

 

Index	Level	Change in %
CSI 300 Index	4520.98	0.12
Hang Seng Index	25899.65	(-)0.18
Nikkei 225 Day	50110.37	(-)0.11
TOPIX FIRST SECTION	3369.49	0.03
KOSPI	3947.36	(-)0.99
FTSE Singapore Strait Times	4531.15	0.48
S&P/ASX 200 Index	8615.10	(-)0.03

 

(Eshitva Prakash)

 

End

 

US$1 = INR 89.46

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Subhojit Sarkar

 

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