Published on: January 9, 2025
HSBC Global Research has significantly raised its dividend forecast for Bharti Airtel Ltd., projecting a 114% increase in dividend per share (DPS) to Rs 17 by FY25. The brokerage anticipates that the telecom company’s dividend payment will quadruple to Rs 34 per share by FY27.
This boost in dividend payout is attributed to Bharti Airtel's improving free cash flow outlook and the rising financial needs of its promoter entity, Bharti Telecom Ltd., which recently increased its stake in Bharti Airtel.
With Bharti Telecom's interest expense set to rise due to increased debt, HSBC predicts that Bharti Airtel's dividend payments will cover these finance costs in the coming year. HSBC also maintained a ‘Buy’ rating for Bharti Airtel, with a target price of Rs 1,940, citing the company's strong prospects for growth, including improved mobile ARPU and significant EBITDA and EPS expansion.
Published on: January 9, 2025
India's benchmark indexes are set to open flat on Thursday, reflecting cautious sentiment as global markets grapple with rising U.S. Treasury yields and policy uncertainties under President-elect Donald Trump. The GIFT Nifty futures indicated a marginal opening near Wednesday’s close, while analysts expect a muted market ahead of key corporate earnings, particularly Tata Consultancy Services (TCS), which kicks off India's quarterly earnings season.
TCS is projected to report solid results, but market participants are also watching developments from IREDA, Tata Motors, and Quadrant Future Tek’s IPO. Meanwhile, U.S. Treasury yields rose as concerns about Trump’s potential national emergency declaration weighed on investor sentiment.
The markets will also focus on BHEL’s hydroelectric project success and other corporate updates such as Lupin’s U.S. drug regulator inspection report and Tata Motors’ JLR performance. Key earnings updates from major companies, including Reliance Industries, will also influence market movements in the coming week.
Published on: January 9, 2025
Shares of Tata Motors fell by 3% to Rs 769 in early trade on January 9, despite positive analyst recommendations from Nomura and Morgan Stanley following Jaguar Land Rover's (JLR) third-quarter sales update.
JLR reported a mixed performance, with wholesale volumes rising 3% year-on-year, supported by a 20% sequential increase from Q2 FY25, while retail sales saw a decline of 3%. Nomura maintained a 'buy' rating with a target price of Rs 990 per share, citing a strong regional growth in North America and Europe and a forecasted positive free cash flow.
Morgan Stanley kept an 'equal-weight' rating with a target of Rs 920, highlighting higher-than-expected wholesale volumes and projected EBIT margins. Despite a 33% drop from its peak, Tata Motors stock has gained nearly 8% in 2025 so far.
Published on: January 9, 2025
In the latest US economic data, conflicting signals on jobs emerged overnight. While US private payrolls growth slowed in December, initial claims for unemployment benefits dropped to their lowest level since February 2024, highlighting mixed trends in the labor market.
These developments, along with the minutes from the Federal Reserve’s latest meeting, kept bond yields elevated, as investors brace for a longer-than-expected inflationary adjustment. On Wall Street, equity markets showed little movement, while two of the three early risers in Asia opened in the red, with China’s inflation data expected to influence trade later.
Back in India, Q3 earnings season kicks off with Tata Consultancy Services, Tata Elxsi, and IREDA reporting their numbers today. In trade news, India’s merchandise trade deficit was revised to $32.8 billion for November after a correction in gold import figures, though it remains a significant concern.
Meanwhile, JLR’s third-quarter sales rose, despite disruptions, and steel prices could rise in 2025 if safeguard duties are imposed. Additionally, the Indian government made key appointments in the Department of Revenue and DIPAM.
Published on: January 9, 2025
India, the world’s third-largest consumer of crude oil, relies heavily on imports to meet over 85% of its oil requirements. The country is also among the top importers of natural gas, with around 50% of its gas needs being met through imports.
In light of this high dependency on energy imports, the Indian government is focused on enhancing domestic oil and gas production to reduce reliance on foreign sources.
Efforts are underway to encourage local oil and gas companies to ramp up production, aiming to strengthen the nation’s energy security and reduce vulnerability to global supply disruptions.
Published on: January 9, 2025
HDFC Bank has announced updated interest rates for bulk fixed deposits, offering up to 7.9% for senior citizens and 7.40% for the general public on amounts ranging from Rs 3 crore to Rs 5 crore, depending on tenure.
The bank has also lowered its Marginal Cost of Lending Rate (MCLR), which is expected to reduce monthly EMIs on loans. Meanwhile, the luxury travel sector is witnessing a shift towards unique experiences, with trends such as off-the-beaten-path destinations, branded residences, wellness travel, and privacy-focused accommodations on the rise.
As affluent travelers prioritize sustainability, personalization, and local experiences, the future of luxury hospitality is set to evolve with a focus on privacy, security, and environmental responsibility.
Published on: January 8, 2025
The National Stock Exchange (NSE) of India has announced the addition of six new securities to its Futures and Options (F&O) segment, effective January 31, 2025. The newly added stocks include Castrol India, Gland Pharma, NBCC, Phoenix, Solar Industries India, and Torrent Power.
This inclusion follows guidelines set by the Securities and Exchange Board of India (SEBI) and aims to enhance market liquidity and price discovery.
The NSE also revealed the removal of 16 stocks, such as PVR Inox, United Breweries, and Abbott India, from the F&O segment, effective February 28, 2025. This restructuring is part of ongoing efforts to ensure that only stocks meeting higher liquidity and size criteria remain in the derivatives market.
Published on: January 8, 2025
Oil and Natural Gas Corporation (ONGC) has appointed BP Exploration (Alpha) Ltd. as the Technical Service Provider (TSP) for its flagship Mumbai High fields, which have been facing a steady decline in output.
BP, selected after a competitive bidding process, will implement advanced recovery technologies and operational best practices to improve production. The partnership aims to increase oil and gas output by up to 60% over the next decade.
Mumbai High, one of India's most prolific oil fields, currently contributes 38% of the country's oil production. ONGC hopes the collaboration will help tap into the remaining reserves of over 80 million tonnes of oil and 40 billion cubic meters of gas.
Published on: January 8, 2025
JSW Steel Ltd., India’s largest steelmaker, is embroiled in a legal dispute after Mozambique’s government revoked the coal mining lease for Minas de Revuboè (MdR), a concession JSW Steel agreed to acquire for $74 million in May 2023.
The lease, valued at approximately $50 billion, was cancelled by the government in June 2023, leading to a legal challenge from MdR, which is now seeking to restore the lease through arbitration proceedings in Geneva.
The dispute has placed JSW Steel in a difficult position as it awaits the outcome of the case, which could affect its plans to secure coal for steel production. The cancellation of the mining rights also coincides with growing instability in Mozambique, following contested elections and rising civil unrest.
Published on: January 8, 2025
The State Bank of India (SBI) has revised its GDP growth forecast for India in the financial year 2024-25 (FY25) to 6.3%, down from the National Statistical Office’s (NSO) projection of 6.4%.
The revision stems from concerns over a slowdown in lending, manufacturing, and aggregate demand, as well as a large base effect from the previous year. SBI also highlighted that while private consumption is expected to drive growth with a 7.3% real growth rate, the manufacturing and services sectors are projected to see slower growth.
Despite the downgrade, government consumption is anticipated to support the economy, with nominal growth predicted at 8.5%. The bank cautioned that a slowdown in credit could further impact GDP growth.
Published on: January 8, 2025
HDFC Bank witnessed a reduction in stake by retail investors and India's mutual funds during the October-December quarter, as per the latest shareholding data. Retail investors pared their stake by 40 basis points, while domestic mutual funds reduced their holding by 60 basis points.
Conversely, Foreign Portfolio Investors (FPIs) increased their stake in the lender by one percentage point. HDFC Bank's shares gained 2.3% in the quarter, contributing to a 6% gain in 2024, marking the ninth consecutive year of positive returns.
The bank’s management is focusing on reducing its Credit-Deposit Ratio, which fell below 100% during the quarter.
Published on: January 8, 2025
HSBC Global Research has upgraded its dividend forecast for Bharti Airtel Ltd., projecting a 114% increase to ₹17 per share in financial year 2025, driven by stronger free cash flow and rising cash flow needs at the promoter entity, Bharti Telecom Ltd.
The research firm anticipates Bharti Airtel’s dividend could quadruple to ₹34 per share by FY27. This revision is due to the growing debt at Bharti Telecom, which owns a significant stake in Bharti Airtel. The brokerage also forecasts a 33% year-on-year rise in the dividend per share (DPS) to ₹22.7 in FY26, and a 50% increase in FY27.
HSBC maintains its 'Buy' rating on Bharti Airtel with a target price of ₹1,940, citing improved cash flow outlook and higher mobile ARPU driven by tariff hikes and subscriber shifts.
Published on: January 8, 2025
Tata Steel shares are expected to be in focus following the company's strong Q3 update, showcasing impressive growth in production and deliveries.
In the third quarter, Tata Steel India’s crude steel production rose by 6% YoY and 8% QoQ to 5.68 million tonnes, driven by the successful commissioning of the 5 MTPA blast furnace at Kalinganagar. The company's deliveries reached a record 5.29 million tonnes, marking the best-ever Q3 performance.
Domestic deliveries grew by 4% QoQ and 8% YoY, supported by steady sales in the domestic market and a strategic export presence. For the first nine months of FY25, deliveries stood at 15.3 million tonnes, reflecting a 4% YoY increase in domestic deliveries.
Published on: January 8, 2025
Tata Steel’s ‘H’ Blast Furnace at its Jamshedpur plant has reached a significant milestone, surpassing 50 million tonnes of hot metal production. This achievement marks the first time in India that a blast furnace has hit this mark without undergoing mid-term repairs.
Commissioned in 2008, the furnace has consistently outperformed its designed capacity by approximately 20%. Tata Steel lauded the accomplishment as a testament to the exceptional engineering and operational capabilities of its team.
The ‘H’ Blast Furnace has also been recognized for its energy-saving innovations, earning accolades from the President of India and the World Steel Association for its excellence in coal injection and process safety.
Published on: January 7, 2025
The Nifty Auto index edged up by 0.23% in a positive market session on Tuesday, with Tata Motors leading the gains, up 1.11%. Other top performers included Balkrishna Industries, Mahindra & Mahindra, and Bharat Forge.
On the flip side, Eicher Motors, MRF, TVS Motor Company, Apollo Tyres, and Bosch saw declines. The broader market was also in the green, with the Nifty50 index rising 127.11 points to 23,743.15, and the Sensex gaining 309.07 points to 78,274.06.
Stocks like Vodafone Idea, Zomato, and ONGC were among the most actively traded on the NSE. Several stocks reached fresh 52-week highs, while others, including PVR and Odigma Consultancy, touched new lows.