ftse rejig Archives

Amara Raja Batteries Q4 Results: Net profit rises 38% YoY to Rs 189 crore

Amara Raja Batteries reported a 38% YoY increase in consolidated net profit to Rs 189.38 crore for the quarter ended March (Q4). Net profit has declined by 2.23% when compared to the previous quarter. Its revenue from operations rose 33% YoY to Rs 2,102.70 crore during the same period. For the financial year ended March 31, 2021 (FY21), net profit declined by 2.11% YoY to Rs 646.83 crore. The company’s board has announced a final dividend of Rs 6 per share.

Read more here.

Adani Green Energy’s arm transfers 74% stake of Mundra Solar Energy to Adani Tradecom

Adani Renewable Energy Holding Four Ltd, a wholly-owned subsidiary of Adani Green Energy, has transferred 74% shareholding of Mundra Solar Energy Ltd (MSEL) to Adani Tradecom LLP (ATLLP). The subsidiary has transferred 7,400 equity shares of the face value of Rs 10 each, aggregating to Rs 74,000, to ATLLP. MSEL is incorporated to manufacture crystalline silicon solar PV cells, modules, and ancillary products. It is yet to commence business operations.

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AkzoNobel Q4 Results: Net profit rises 37% YoY to Rs 74 crore

AkzoNobel India reported a 37% YoY increase in consolidated net profit to Rs 74.25 crore for the quarter ended March (Q4). Net profit has declined by 15% when compared to the previous quarter. The paints manufacturer’s revenue declined 9% YoY to Rs 2,421.3 crore during the same period. For the financial year ended March 31, 2021 (FY21), net profit has declined by 12.56% YoY to Rs 207.64 crore. The company’s board has announced a dividend of Rs 30 per share.

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Hero MotoCorp to resume production at all plants from May 24

Hero MotoCorp said it will resume production at all its manufacturing plants in India from May 24 (Monday). The two-wheeler manufacturer had temporarily shut down operations from April 22 due to the second wave of the Covid-19 pandemic. At the beginning of this week, the company had resumed partial operations at its three plants at Gurugram, Dharuhera (Haryana), and Haridwar (Uttarakhand).

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Natco Pharma gets USFDA approval for generic cancer treatment drug

Natco Pharma Limited has received approval from the US Food & Drug Administration (USFDA) for generic Lenalidomide capsules. The drug is indicated for the treatment of adults with multiple myeloma, mantle cell lymphoma, and myelodysplastic syndromes (cancer). The pharma company has also received final approval for its Abbreviated New Drug Application (ANDA) for Everolimus tablets. This drug is indicated for the treatment of organ rejection in kidney and liver transplants.

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Punjab & Sind Bank Q4 Results: Net profit at Rs 161 crore

Punjab & Sind Bank reported a net profit of Rs 161 crore for the quarter ended March (Q4 FY21). It had reported a net loss of Rs 236 crore in the corresponding quarter last year (Q4 FY20). This is the first quarterly profit for the bank after eight consecutive quarters of net losses. Its total income declined by 15.24% YoY to Rs 1,940.62 crore in Q4 FY21. For the financial year ended March 31, 2021 (FY21), net profit has widened to Rs 2,732.90 crore. This is compared with a net loss of Rs 990.80 crore in FY20.

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FTSE includes Gland Pharma, IRFC in All World Index

Index provider FTSE has included newly listed stocks Gland Pharma and Indian Railway Finance Corporation (IRFC) in its All World index as part of its quarterly rebalancing review. FTSE will also implement the fourth and final tranche of India Foreign Ownership Limit (FOL) changes. All changes will be effective from June 21, 2021. According to a report from Edelweiss Alternate Research, the inclusion of Gland Pharma and IRFC in the All World index is likely to bring in an estimated inflow of $68 million and $20 million, respectively.

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TVS Electronics Q4 Results: Net profit at Rs 5.85 crore

TVS Electronics has reported a standalone net profit of Rs 5.85 crore for the quarter ended March (Q4 FY21). It had posted a net loss of Rs 5.69 crore in the corresponding period last year (Q4 FY20). Its revenue from operations rose 35.79% YoY to Rs 72.31 crore in Q4 FY21. For the financial year ended March 31, 2021 (FY21), net profit has increased by 97.44% YoY to Rs 0.77 crore.

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TCS launches innovation hub to boost sustainable development in Europe

Tata Consultancy Services has launched a co-innovation and advanced research centre in Amsterdam to bring together an ecosystem of partners from academia, government institutions, start-ups, and technology providers. TCS Pace Port Amsterdam will serve as a hub for TCS teams to co-innovate with European customers, guiding them through the discovery, definition, refinement, and delivery phases of innovation.

TCS has also announced plans to set up over 100 Covid-19 vaccination centres across India. The IT company is partnering with hospitals and health care providers to procure doses for vaccinating its associates and their families.

Read more here.

MCX Q4 Results: Net profit declines 41% YoY to Rs 38 crore

Multi Commodity Exchange of India reported a 41% YoY decline in consolidated net profit to Rs 38.44 crore for the quarter ended March (Q4). Net profit has declined by 46.5% when compared to the previous quarter. Its total income declined by 19.62% YoY to Rs 108.46 crore during the same period. For the financial year ended March 31, 2021 (FY21), net profit fell 4.77% YoY to Rs 225.22 crore. MCX’s board has announced a final dividend of Rs 27.70 per share.

Mangalam Cement Q4 Results: Net profit rises 134% YoY to Rs 36 crore

Mangalam Cement reported a 134.5% YoY increase in standalone net profit to Rs 36.4 crore for the quarter ended March (Q4). Net profit has declined by 2% when compared to the previous quarter. Its revenue from operations rose 38.42% YoY to Rs 410.82 crore during the same period. For the financial year ended March 31, 2021 (FY21), net profit has increased by 43.5% YoY to Rs 108.98 crore. Mangalam Cement’s board has declared a dividend of Rs 1.50 per share.

Read more here.

On February 19, UK-based index provider Financial Times Stock Exchange (FTSE) announced certain vital changes as part of its quarterly index review. The FTSE report mentions various Indian stocks that will be added or removed in its All-World and All-Cap Index. As per reports, India is expected to receive significant inflows in the range of $800 million to $1 billion (~Rs 5,789 crore – Rs 7,232 crore) as a result of these changes. Let us have a detailed understanding of what this actually means.

What is FTSE?

The Financial Times Stock Exchange (FTSE) Group is a UK-based organization that is engaged in the management of asset exchanges and creation of index offerings for global financial markets. It manages the FTSE 100 (also known as “Footsie”), which is an index of 100 companies listed on the London Stock Exchange with the highest market capitalization.

Similarly, FTSE manages a large number of other prominent indices that are tracked by investors around the world. Let us take a look at a few of these:

The FTSE Global Equity Index Series is a series of stock market indices that provides coverage of over 16,000 stocks in 49 countries.
The FTSE All-World Index is a market-capitalisation weighted index representing the performance of the large and mid-cap stocks from the FTSE Global Equity Index Series.
Meanwhile, the FTSE Global All Cap Index is a market-capitalisation weighted index representing the performance of the large, mid, and small-cap stocks globally.

Latest Announcements from FTSE:

According to its recent ‘March-21 Semi-Annual Rebal Results’ report, FTSE will add 29 Indian stocks to the All Cap Index, while 5 stocks will be added to the All-World Index. Also, FTSE will be implementing the 3rd tranche (round) of the India Foreign Ownership Limit (FOL) changes on March 19, 2021. When FTSE introduces these changes to the FOL, it would pave the way for a huge infusion of foreign money into these Indian stocks.

Here is a list of prominent stocks that will be added to FTSE’s indices:

Large Cap Index:

Stocks that will be Included	Stocks that will be Excluded
Reliance Industries Partly Paid-up Shares	United Breweries
Adani Enterprises	Punjab National Bank
Adani Total Gas

Mid Cap Index:

Stocks that will be Included	Stocks that will be Excluded
Honeywell Automation	Adani Enterprises
Hindustan Aeronautics	Future Retail
Apollo Hospitals
Mindtree
Varun Beverages
United Breweries
Punjab National Bank

What is the Impact of these Changes?

We normally see that Mutual Funds and Exchange Traded Funds (ETFs)— who are continuously tracking these particular indices— would begin to infuse millions into the stocks that have just been included. Or, various institutional investors would see potential in these stocks due to their impressive fundamental or technical forecasts. This confidence from big players will also make small retailers invest more money into these stocks. Eventually, the share prices of these companies would have a high chance of increasing.

We witnessed a very similar case when there was a reorganisation in the Morgan Stanley Emerging Markets Index in October 2020. You can read more about the MSCI rejig here.

As per a report from Edelweiss Research, Reliance Industries Partly Paid-up Shares are set to see inflows worth $165 million (~Rs 1,195 crore) after being included in the FTSE All-World index. It was also reported that Mindtree, Varun Beverages, Hindustan Aeronautics, Adani Gas, Honeywell Automation, and Apollo Hospitals are likely to receive inflows in the range of $20 million-$80 million (~Rs 144 crore – Rs 579 crore).

On the other hand, the inclusion of these stocks in major global indices shows encouraging signs of how our Indian companies are performing. Do look out for such important and relevant news (such as the FTSE rejig), as it could have an effect on how markets perform on specific days.