Published on: January 13, 2025
The rapid rise of Global Capability Centres (GCCs) in India has raised concerns about a potential shift in technology spending away from IT services vendors. However, Tata Consultancy Services (TCS) showcases resilience with robust order inflows and an improving growth trajectory in 2025.
TCS reported shorter deal cycles and an uptick in discretionary spending, signaling faster revenue conversions, according to BOB Capital Markets. Despite a dip in global market share for Indian IT giants in FY24, primarily due to company-specific issues, the focus on cost optimization and modernizing technology stacks continues to support demand for IT services.
With customers prioritizing cost efficiencies, IT services vendors remain integral to global technology solutions. Analysts predict that increased discretionary spending could further enhance growth in the IT sector, counterbalancing the GCC-driven shift in operational strategies.
Published on: January 13, 2025
Mahanagar Telephone Nigam Limited (MTNL) shares dropped 2.8% on Monday, reaching an intraday low of ₹43.85 on the BSE. The decline followed the company’s announcement of its inability to fund the escrow account required under a Tri-Partite Agreement with the Department of Telecommunications (DoT) and Beacon Trusteeship Limited.
As per the agreement, MTNL must fund semi-annual interest payments 10 days before the due date. In case of default, the sovereign guarantee will be invoked, obligating the Indian government to cover the payment.
MTNL, primarily operating in Mumbai and Delhi, reported a net loss of ₹890.3 crore for Q2 FY2023-24, compared to ₹773.5 crore in the previous quarter. Revenue declined by 5.3% year-on-year, while EBITDA losses widened to ₹119.3 crore.
Despite a 30.15% gain in its stock over the past year, MTNL has faced persistent financial challenges. The stock’s 52-week high stands at ₹101.88, with a low of ₹31.24. At 12:33 PM, MTNL shares were trading at ₹43.99, down 2.57%, while the BSE Sensex fell 0.82%.
MTNL’s future hinges on government support and its ability to navigate ongoing losses and operational inefficiencies in the competitive telecom sector.
Published on: January 13, 2025
Hyundai Motor India Ltd (HMIL) foresees a significant acceleration in EV adoption in the Indian passenger vehicle market starting in 2025, with 2026 set to witness a doubling of EV volumes. The company's COO, Tarun Garg, highlighted the upcoming launch of the Creta EV, a mass-market electric SUV, as a key driver of this transformation.
Hyundai plans to introduce four EV models and expand its offerings beyond the mid-sized SUV segment, catering to broader customer demands. With a range of 390 km and 473 km for its two variants, the Creta EV aims to address range anxiety and leverage the strong brand equity of its ICE counterpart, which has sold 11 lakh units.
Currently, India’s EV penetration stands at 2.4%, but Hyundai projects this to rise to 17% by 2030, with robust product launches from major OEMs fueling growth. Competitor Maruti Suzuki will also unveil its eVITARA electric SUV at the Bharat Mobility Global Auto Show 2025.
Hyundai is enhancing EV infrastructure, with 10,000 charging points planned, including 7,500 app-based payment options and 80 fast chargers along major highways. The Creta EV, priced in the Rs 15-25 lakh range, is expected to capture a significant share of the market, contributing to Hyundai's goal of replicating its ICE success in the EV space.
Published on: January 13, 2025
Indian equity markets bounced back on January 14, breaking a four-day losing streak, as cooling CPI inflation at 5.22% fueled hopes of a 25 bps policy rate cut by the MPC in February. The Sensex rose 282.89 points (0.37%) to 76,612.90, while the Nifty gained 76.90 points (0.33%) to 23,162.85 by mid-morning.
Metal and PSU bank stocks were top performers, with the PSU Bank index rallying nearly 2%, led by SBI and Bank of Baroda. Realty, auto, and oil & gas sectors also posted gains, offering relief after recent losses. Meanwhile, IT stocks lagged, dragged by a 5% plunge in HCL Tech following underwhelming Q3 results and a muted growth outlook.
Mid- and small-cap indices recovered, advancing 1.33% and 0.8%, respectively. Despite today’s gains, analysts remain cautious, citing oversold conditions and persistent macroeconomic challenges, including elevated US bond yields, a strong dollar, and weak corporate earnings.
Among individual stocks, BSE Ltd. surged over 4% after Jefferies upgraded it to 'hold,' citing growth tailwinds in India’s capital markets. Bharat Electronics rallied 2% on securing additional orders worth Rs 561 crore.
Nifty support levels are seen at 23,000 and resistance at 23,250, according to experts. Market sentiment remains fragile, with direction hinging on the ongoing earnings season and macroeconomic developments.
Published on: January 13, 2025
IndusInd Bank’s shareholding data for Q3FY25 reveals a sharp decline in foreign ownership, dropping to 46.63% from 59.62% in Q2FY25, marking the fifth consecutive quarter of reductions. Foreign portfolio investors’ (FPI) stake shrank to 24.74% in December 2024, down from 39.79% in March 2024, as concerns over asset quality in its microfinance subsidiary, Bharat Financial Inclusion Ltd., weighed heavily on investor sentiment.
Despite the sell-off, brokerage Nuvama predicts a positive turn for the stock, with MSCI’s February 2025 review expected to double its free float weight. This adjustment could trigger passive fund inflows of up to $200 million. However, further foreign investment depends on signs of operational recovery, which the bank has yet to demonstrate convincingly.
IndusInd Bank’s fundamentals remain under pressure, with shrinking yields, deteriorating asset quality in microfinance, vehicle, and card segments, and missed growth targets. The stock has corrected 44% over the past year but rose 2.73% in early trading to Rs 962.70, reflecting cautious optimism about future prospects.
Published on: January 13, 2025
Indian equity benchmarks continued to decline on Monday, with the BSE Sensex falling 608.76 points (0.79%) to 76,770.15 and the NSE Nifty losing 205.95 points (0.88%) to 23,225.55. Broader markets faced sharper corrections as the Nifty Next 50 dropped 2.52% and the Nifty Midcap Select index fell 2.34%.
Banking and financial stocks struggled, with indices down 0.92%, though private players like IndusInd Bank and Axis Bank bucked the trend, rising 1.55% and 1.40%, respectively. IT stocks showed resilience, as TCS gained 1.30% and Infosys added 0.29%.
Retail major Trent led losses with a 4.65% drop, while Adani Enterprises, Apollo Hospitals, and Wipro also weighed on the indices. The negative sentiment was driven by surging crude oil prices, strong US jobs data, and sustained foreign institutional investor outflows.
With 3,270 declining stocks versus 680 advances on the BSE and 479 stocks hitting lower circuits, market breadth remained firmly negative. Investors now await domestic CPI data, HCL Technologies’ results, and the Standard Glass Lining Tech listing for further cues.
Published on: January 13, 2025
Axis Securities projects banks to deliver 12% YoY credit growth in Q3FY25, aligning with the industry growth trajectory, despite concerns over asset quality in unsecured lending and tighter lending constraints due to LDR pressures. The brokerage anticipates systemic growth for FY25 to stabilize around 11-12%.
Geojit Financial Services’ Pawan Parakh believes the banking sector is nearing its bottom, with easing deposit competition and lower interest rates expected to support asset quality improvement. Investors are advised to gradually increase exposure to the banking sector over the next two quarters, as the environment becomes more favorable for growth and stability.
Published on: January 13, 2025
Goldman Sachs initiated coverage on BSE Ltd. with a Neutral rating and a target price of Rs 5,060, indicating a 1% downside from its recent closing price. Despite the rating, Goldman highlighted BSE's potential to capitalize on India's growing equity capital markets, driven by its fixed-take-rate business model and strong nominal growth in listed corporate earnings.
The report emphasized that 60–70% of BSE's revenue stems from equities trading, while retail participation and derivatives trading offer structural support for long-term growth. Goldman Sachs expects regulatory reforms to enhance the base for Indian capital markets, unlocking further opportunities for BSE.
BSE shares, which gained 127.5% in the past year, saw a 1.92% dip to Rs 5,023.10 in early trading. Despite this, five out of nine analysts maintain a 'buy' rating, with an average consensus price target implying an 8.8% upside potential.
Published on: January 10, 2025
Nomura Group has cautioned that banking system liquidity is expected to remain in deficit for the next two months, driven by tightened rupee liquidity due to the Reserve Bank of India's (RBI) foreign exchange interventions and outflows in cash circulation. The global brokerage firm anticipates a continued liquidity deficit, compounded by persistent currency in circulation outflows in Q1.
As a result, Nomura suggests the RBI may need to undertake more proactive measures such as buy or sell swaps to inject liquidity and reduce rupee premiums. The report also highlights the increasing likelihood of open market operations (OMO) purchases and potential cuts in the cash reserve ratio (CRR).
Additionally, MIBOR has breached the 7.00% level, reflecting tighter liquidity. Nomura expects this elevated MIBOR to persist unless the RBI intervenes. The firm also closely watches the RBI's actions, particularly in light of the speculation surrounding Deputy Governor Michael Patra's upcoming term expiration.
Published on: January 10, 2025
Shares of Adani Wilmar fell 9.5% to Rs 292 on January 10, extending their losing streak for the third consecutive day. This decline comes after Adani Commodities launched a two-day offer-for-sale (OFS) for non-retail investors, with a retail portion to follow on January 13.
The OFS aims to sell 17 crore shares, representing 13.5% of Adani Wilmar's equity capital, at a discount of 6% to the current price. Additionally, an oversubscription option allows the sale of another 6.5% stake.
The Adani Group is divesting part of its stake to meet public shareholding requirements, and analysts view this as a move to enhance Adani Enterprises' liquidity. Over the past three days, Adani Wilmar’s stock has dropped more than 11%, significantly underperforming the broader market.
Published on: January 10, 2025
JSW Steel Ltd. reported its highest-ever consolidated crude steel production for Q3 FY25, reaching 7.03 million tonnes, marking a 4% increase from the previous quarter and a 2% rise year-on-year. Indian operations also saw a record production of 6.82 million tonnes, up 3% from the previous quarter and the same period last year.
Despite a temporary setback due to scheduled maintenance at its Dolvi plant in October, production resumed by November. While the company’s performance remained strong, its shares saw a slight decline, falling 1.2% before recovering to trade 0.29% higher. Analyst sentiment remains generally positive, with a 10.1% upside potential based on the average 12-month price target.
Published on: January 10, 2025
Tata Consultancy Services (TCS) saw its shares surge by 6% on January 10 after reporting a stellar third-quarter performance, with a 25.93% year-on-year rise in Total Contract Value (TCV), reaching $10.2 billion.
Despite Q3 typically being a weaker quarter, the IT giant’s strong deal wins and early signs of demand revival have lifted investor confidence. TCS CEO Krithivasan highlighted growth in sectors like BFSI and CBG, along with shorter deal conversion cycles, fueling optimism for 2025 and beyond.
TCS's net profit for the quarter rose 4% sequentially to Rs 12,380 crore, slightly above expectations, while its operating margin improved to 24.5%. This upbeat performance boosted investor sentiment across the IT sector, with other major IT stocks also rallying.
Published on: January 10, 2025
In today's morning update, the big talking point is the earnings from Tata Consultancy Services (TCS), with the IT giant reporting a 4.1% rise in net profit to Rs 12,444 crore for Q3. The result met expectations despite a slight decline in revenue. TCS's optimistic outlook for 2025, citing early signs of revival in discretionary spending, is lifting investor sentiment in the IT sector.
Overseas, US bond yields slightly retreated from an eight-month high, and markets are awaiting crucial payroll data that could provide insights into the Federal Reserve's policy stance. Meanwhile, in Asia, Japan's consumer spending dropped in November, and regional markets are starting the day lower.
In domestic news, Tata Elxsi and IREDA also reported solid earnings, while gas stocks are in focus after the government’s decision to revise domestic gas allocations. Investors will be closely watching these developments as the market reacts to both earnings results and broader global economic data.
Published on: January 10, 2025
Information technology stocks saw a strong uptick on January 10, 2025, driven by upbeat earnings from Tata Consultancy Services (TCS). The industry giant's 6% surge, coupled with its positive outlook for the demand environment, lifted investor sentiment across the IT sector.
Infosys, HCLTech, Wipro, and Tech Mahindra also gained 2-4%, contributing to the Nifty IT index’s near 4% rise, making it the only sectoral index in the green. TCS’s Q3 results revealed strong deal wins and an optimistic outlook for CY25 and FY26, spurring hopes of a recovery in discretionary spending within the sector.
Analysts have called the commentary on demand revival the most positive in two years, with experts such as V K Vijayakumar from Geojit Financial Services highlighting TCS’s resilience as a key indicator for the sector’s performance. With major IT players like Infosys and HCLTech set to report their earnings next week, the sector remains in focus for potential growth.
Published on: January 10, 2025
The Indian stock market is bracing for another day of volatility, with the GIFT Nifty futures trading lower by 67.1 points at 23,581. As the Sensex and Nifty continue to face pressure, a number of stocks are expected to remain in focus on January 10, 2025, amid fresh updates and earnings reports.
Key stocks to watch include Tata Consultancy Services (TCS), which posted an 11.9% rise in Q3 net profit, boosting investor optimism. Indian Renewable Energy Development Agency (IREDA) reported a 27% jump in its quarterly profit, signaling strong growth. Meanwhile, Tata Elxsi saw a slight dip in profit, but continues to attract attention.
In the real estate sector, Keystone Realtors reported a 40% growth in sale bookings, while Adani Total Gas and Mahanagar Gas will benefit from an increase in domestic gas allocation, potentially enhancing their profitability. Adani Wilmar also catches the eye with an upcoming Offer for Sale (OFS) by a major promoter.
On the banking front, Indian Overseas Bank plans to offload Rs 11,500 crore in non-performing assets to asset reconstruction companies. Vodafone Idea secured Rs 1,910 crore through a preferential share allotment, as it seeks to improve its financial position.
Additionally, Swiggy's expansion in the quick-commerce space and Emami's new branding initiative in the male grooming market are generating buzz. Meanwhile, the National Restaurant Association of India (NRAI) may approach the Competition Commission of India (CCI) to address issues concerning Swiggy and Zomato’s new food delivery apps.
Other notable developments include Steel Authority of India's (SAIL) contribution to the Mahakumbh Mela, and a potential government subsidy to oil companies IOC, BPCL, and HPCL, which could support their financial performance.