Indian share markets traded in green throughout the trading session and ended on a strong footing.Benchmark indices Sensex and Nifty surged, driven by gains in banking and IT stocks, as global markets were uplifted by softer US inflation data.At the closing bell, the BSE Sensex stood higher by 499 points (up 0.6%).Meanwhile, the NSE Nifty closed higher by 166 points (up 0.7%).ITC, Tech Mahindra, and HDFC Bank were among the top gainers today.Zomato, Marut,i and Nestle, on the other hand, were among the top losers today.The BSE MidCap index ended flat while the BSE SmallCap index ended lower by 0.6%.Barring telecom and auto, all sectoral indices ended on a positive note with stocks in the realty sector, banking sector, and FMCG sector witnessing most of the buying.Shares of Mankind Pharma, Sundaram Brake, and Thomas Scott hit their respective 52-week highs today.
Why Waaree Energies Share Price is RisingIn the latest developments from the renewable energy sector, shares of Waaree Energies surged today after its board approved a capital expenditure of Rs 551 crore and an investment of Rs 200 crore for setting up 300 MW of electrolyzer manufacturing plant.This will be done via its wholly owned subsidiary Waaree Clean Energy Solutions.Note that this development comes following another of its wholly owned subsidiaries Waaree Solar Americas starting trial production of solar modules at its manufacturing facility in the US.The first phase is of 1.6 GW solar module manufacturing capacity. The company plans to scale it up to 3 GW.Interestingly, Waaree Energies is the first Indian renewable energy company to establish a PV module manufacturing facility in Brookshire, Texas, US.In India, it aims to bolster its leadership in the utility and enterprise module sales market.To further strengthen its production capabilities, Waaree Energies is developing a fully integrated 6 GW facility that will produce ingots, wafers, solar cells, and PV modules, slated to begin operations in FY27.The company maintains approximately Rs 3.6 bn in debt, with an average borrowing cost of 10% from the Indian Renewable Energy Development Agency (IREDA) and 6% for buyer credits.Here’s how the stock has performed since listing:
Zomato Enters Sensex
In yet another milestone, Zomato has become the first new-age technology stock to join the BSE Sensex.It replaced JSW Steel in a routine half-yearly rebalancing of constituents.Although the rebalancing is a regular occurrence, Zomato’s inclusion highlights the rising importance of the domestic consumer internet sector and its growing presence in public markets.Zomato’s inclusion in Sensex comes after shares of the company have surged 45% over the past six months and 133% in 2024 so far.Zomato also became profitable in the first quarter of FY24, and it has posted a net profit in every quarter since then.In the most recent September 2024 quarter, its consolidated revenue jumped 68% to Rs 48 bn while net profit increased fivefold year-on-year to Rs 1.8 bn.This remarkable growth was supported by consistent improvement in food delivery margins and the break-even performance in its quick commerce operations.In her recent editorial, co-head of research at Equitymaster, Tanushree Banerjee compared Zomato entry in Sensex with Tencent, which became the first Asian technology company to cross the US$ 500 bn valuation mark in 2017.Here’s an excerpt:
Just the way Chinese technology majors like Alibaba, Tencent, JD.com were stock market favourites not just in China, but globally, a few years back.
There is no doubt that India needs to become self-reliant when it comes to critical technology. Else corporate India may continue to face growth bottlenecks.
Most companies in India have multiplied their tech spending. The spend on technology is not restricted platform companies alone. Companies across the board are spending on AI to integrate the technology in their day-to-day operations.
For instance, take the cases of manufacturing majors like Maruti Suzuki, Apollo Tyres, Godrej & Boyce and Saint-Gobain. AI has not only helped these companies reduce costs but also increase efficiencies and reduce workplace incidents.
Zomato’s inclusion in the prestigious benchmark index of 30 stocks could certainly be India’s Tencent moment. This would mark the recognition of the long-term potential of India’s home grown technology entities.
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