Published on: December 31, 2024
Nuvama has raised its target price for Jindal Steel & Power Ltd. (JSPL) to Rs 1,292 from Rs 1,139, signaling a potential upside of 40%. The brokerage remains bullish on the stock, maintaining a 'buy' rating, following the company’s efforts to resolve operational bottlenecks in its pellet plant.
These efforts are expected to ramp up production volumes significantly by January, with the company targeting 80% capacity utilisation at the plant by fiscal 2026. This would lead to a rise in crude steel production to 8.3–8.4 million tonnes annually.
JSPL is also on track to expand its steel capacity by 3.3 million tonnes per annum by March, further driving growth. Nuvama forecasts strong earnings in the March 2025 quarter, supported by higher steel prices, increased government spending, and volume growth, alongside a drop in coking coal prices boosting margins.
Published on: December 31, 2024
On the final trading day of 2024, the Indian stock markets ended flat, with the BSE Sensex dropping by 109.12 points (0.14%) to close at 78,139.01, and the NSE Nifty 50 losing just 0.1 points, settling at 23,644.80. Despite the flat finish, 2024 marked a successful year for the benchmarks, with the Sensex rising by 8.12% and the Nifty gaining 8.75%, both reaching all-time highs in September.
While large-cap stocks saw some corrections, mid-cap and small-cap stocks had an exceptional year. The BSE Midcap surged by 25.62%, and the Nifty Midcap 50 rose by 21.01%.
The year ahead in 2025 is likely to be influenced by corporate earnings, the Union Budget, and global economic factors. Top performers in the Sensex and Nifty included Kotak Bank, ITC, and BEL, while Tech Mahindra, TCS, and Adani Enterprises faced losses.
Published on: December 31, 2024
In today’s trading session, shares in the power sector saw a varied performance. NLC India Ltd. emerged as a top gainer, closing up by 6.15%, followed by Torrent Power Ltd. with a rise of 5.44%.
Other notable gainers included GMR Power and Urban Infra Ltd. (up 5.00%) and Indo Tech Transformers Ltd. (up 5.00%).
On the downside, Adani Green Energy Ltd. was the biggest loser, dropping 3.25%, while other Adani Group companies such as Adani Power Ltd. and Adani Energy Solutions Ltd. also recorded losses.
The session saw a mix of positive and negative movement, with companies like GE Power India Ltd. and PTC India Ltd. showing modest gains, while stocks like NTPC Green Energy Ltd. and Inox Wind Energy Ltd. closed lower.
Published on: December 30, 2024
Hindalco Industries, part of the Aditya Birla Group, has been granted a vesting order for the Meenakshi Coal Mine in Odisha by the Ministry of Coal.
This follows the signing of a Coal Mine Development and Production Agreement (CMDPA) on November 22, 2024.
Hindalco anticipates beginning coal production by 2028, pending regulatory approvals. The Meenakshi mine, with a Peak Rated Capacity of 12 million tonnes per annum and geological reserves of 285.23 million tonnes, is expected to enhance the company’s energy efficiency, reduce operating costs, and ensure a stable supply of coal for its operations.
The mine's coal will be more cost-effective than the auction and linkage coal currently used by the company. The development is also expected to strengthen India's energy security and create approximately 16,000 jobs in the region.
Hindalco's recent financial performance has been strong, with a 78% profit increase in Q2 FY25, largely driven by robust operations and cost management.
Published on: December 30, 2024
Indian IT services companies are set to see improved operating margins in the third quarter of FY25, driven by the weakening rupee and lower local labour costs.
The US market, which constitutes 50-65% of revenue for top players such as Tata Consultancy Services (TCS), Infosys, and HCLTech, will benefit from the depreciating rupee, which has fallen by 3% against the dollar in 2024. Analysts predict that this trend will help companies offset challenges like wage hikes and furloughs.
The margin boost is expected to be particularly significant for firms such as Infosys, HCLTech, and L&T Tech Services, which had postponed wage hikes to defend margins.
While the weaker rupee will help improve margins, experts caution that the impact will depend on factors like hedging strategies and geographic revenue splits.
Some analysts believe the margin improvements will be more pronounced in Q4 of FY25 or early FY26, with a potential increase of 100-200 basis points.
Despite the short-term benefits, the long-term value will depend on economic growth in the US, particularly under the upcoming administration.
Published on: December 30, 2024
Fertiliser stocks had a mixed session on Monday, with several companies posting gains, while others faced losses. Madhya Bharat Agro Products Ltd. led the day’s rally, rising by 5.52%, followed by Bohra Industries Ltd. with a 4.85% increase.
Other notable gainers included Deepak Fertilisers & Petrochemicals Corporation Ltd. (up 2.33%) and Coromandel International Ltd. (up 1.24%). On the flip side, Sikko Industries Ltd.
Saw the sharpest decline, falling by 4.93%, while Zuari Agro Chemicals Ltd. dropped 4.32%. Gujarat State Fertilizer & Chemicals Ltd. and other major fertiliser players also recorded losses, with declines ranging from 1.51% to 3.78%.
The performance of the sector remained varied, with some stocks maintaining their upward momentum while others struggled.
Published on: December 30, 2024
Aether Industries saw its shares rise nearly 3% on Monday following the announcement that its 15 MW solar power project has been fully commissioned.
The project, part of the company’s Captive Power Producer segment, is expected to generate annual energy savings exceeding Rs 15 crore. Aether’s stock surged as much as 2.87%, reaching Rs 895 per share, amid market optimism.
The solar facility, awarded to KPIG Energia Private Ltd., will supply power to Aether’s manufacturing facilities, aligning with the company’s commitment to sustainability and renewable energy.
This initiative is expected to significantly reduce Aether’s carbon footprint while supporting long-term environmental and growth goals.
Despite the positive development, Aether’s stock has declined by 1.22% in the last year. Analysts remain mostly bullish, with a 12-month target price of Rs 1,043.60, indicating an upside of 16.6%.
Published on: December 30, 2024
The Indian stock market reversed early gains to end sharply lower, with the Nifty 50 and Sensex closing in the red. Private banking stocks, particularly HDFC Bank and ICICI Bank, led the decline, contributing to the broader market weakness.
After a strong rally in banking stocks pushed indices higher, resistance at the 23,900 level triggered a pullback, causing both indices to erase gains and close lower.
The Nifty 50 fell 153.40 points or 0.64% to 23,660.00, while the Sensex dropped 450.94 points or 0.57% to 78,248.13. Market volatility was marked by a correction in mid and small-cap stocks, with the Pharma sector emerging as a key outperformer.
The broader market showed resilience, with MidCaps outperforming the benchmark indices. The rupee closed flat at 84.84 against the US dollar.
Published on: December 30, 2024
British International Investment Plc (BII) will invest Rs 650 crore in Mahindra Electric Automobile Ltd. (MEAL), a subsidiary of Mahindra & Mahindra, marking the final tranche of their investment commitment.
The amount is lower than the originally planned Rs 725 crore, following joint assessments and other factors.
This brings BII's total investment in MEAL to Rs 1,850 crore, increasing its shareholding in the subsidiary to between 2.64% and 4.58%. Earlier, Mahindra & Mahindra had approved a Rs 1,200 crore investment plan for MEAL to support its electric vehicle (EV) initiatives, with additional investments from Temasek’s arm Jongsong Investments.
Meanwhile, Mahindra & Mahindra's Q2 FY2025 net profit rose by 13% to Rs 3,841 crore, with revenue reaching Rs 27,553 crore.
Despite a 1.53% decline in its stock, the company has seen a significant 73.64% increase in share price year-to-date, with strong analyst recommendations.
Published on: December 29, 2024
2025 is off to an exciting start with a major corporate announcement from FMCG giant ITC Limited. The company has confirmed that its much-anticipated hotels business demerger will take effect from January 1, 2025, with Monday, January 6, 2025, set as the record date for the allocation of ITC Hotels shares.
Background on ITC Hotels Demerger:
In August 2023, ITC unveiled its plan to demerge its hotels business into a separate listed entity, signaling a strategic move to unlock shareholder value. As part of this demerger, ITC will retain a 40% stake in ITC Hotels, while the remaining 60% will be allocated to ITC shareholders in proportion to their holdings in ITC Limited.
Record Date and Ex-Date:
To determine eligibility for receiving ITC Hotels shares, January 6, 2025, has been fixed as the record date. This is the date when ITC will identify shareholders eligible for the spin-off.
On the same day, the shares of ITC Limited will trade ex-date, meaning the stock will no longer carry the benefit of the demerger from this date onward. With the T+1 settlement cycle in place, only those who purchase ITC shares on or before Friday, January 3, 2025, will qualify for ITC Hotels shares.
Eligibility Criteria - To participate in the demerger, investors must ensure the following:
Purchase Deadline:
Acquire ITC shares on or before January 3, 2025.
Hold in Demat Account:
Shares must be present in the investor's demat account by the record date (January 6, 2025) to be eligible.
Demerger Ratio:
Eligible shareholders will receive 1 share of ITC Hotels for every 10 shares of ITC they hold. This ratio ensures a fair distribution of the new entity’s equity based on shareholder investments in ITC Limited.
Current Stock Performance:
As of the latest trading session, ITC shares closed at ₹478.90 apiece on the BSE, with the company’s market capitalization standing at ₹5,99,185.81 crore.
What Does This Mean for Investors?
The ITC Hotels demerger represents an opportunity for ITC shareholders to benefit from a standalone entity focused solely on the hospitality sector. Investors are encouraged to monitor ITC's stock performance and ensure compliance with the record date requirements to maximize their benefits from this corporate restructuring.
Stay tuned for further updates as ITC Hotels gears up for its listing in 2025, paving the way for its independent journey in the hospitality industry.
Published on: December 27, 2024
India's coal sector is gearing up for significant developments in 2025, with plans to launch a coal exchange for trading and rate determination of dry fuel, alongside a push for coal gasification to support the country's energy transition.
As India's economy continues to expand, coal demand is expected to rise, prompting efforts to enhance coal production and align it with growing needs. The government is also focusing on sustainable coal practices, balancing environmental concerns with the welfare of coal-dependent communities.
Coal India Ltd and other commercial mines have shown strong production growth, with the sector set for further expansion. Additionally, coal gasification, which produces cleaner energy, is a priority, supported by a government incentive scheme worth Rs 8,500 crore.
With the launch of a coal exchange, the country aims to streamline the market and ensure efficient fuel availability, while bolstering the growth of thermal and coking coal production.
Published on: December 27, 2024
In Friday's market session, Vodafone Idea, One Mobikwik Systems, and Greaves Cotton emerged as the top gainers in terms of trading volume, with Vodafone Idea leading at 18.11 crore shares traded. Other notable stocks with high trading volumes included Finolex Industries, YES Bank, and GI Engineering.
The NSE Nifty index rose 63.21 points to close at 23,813.40, while the BSE Sensex gained 226.59 points, closing at 78,699.07.
However, some stocks faced declines, with Hindalco Industries, Coal India, and State Bank of India among the top losers, each seeing losses over 1%. The trading session reflected significant market activity with volatility in certain sectors.
Separately, a special webinar focused on Binghamton University, part of the prestigious Public Ivy institutions in the US, will provide valuable insights for Indian students considering studying abroad.
The session will cover admissions, scholarships, and career opportunities at Binghamton University, offering a roadmap for students in their critical years of education.
Published on: December 27, 2024
In today's market session, Jyothy Labs Ltd. led the gains with a rise of 5.21%, followed by Adani Wilmar Ltd. (up 2.59%) and Patanjali Foods Ltd. (up 1.65%). Other notable gainers included Heritage Foods Ltd. (up 1.15%), ADF Foods Ltd. (up 1.10%), and Mrs. Bectors Food Specialities Ltd. (up 1.00%).
On the downside, Dangee Dums Ltd. took the biggest hit, falling by 5.16%, followed by Honasa Consumer Ltd. (down 1.83%) and Umang Dairies Ltd. (down 1.69%).
Other decliners included Procter & Gamble Hygiene & Healthcare Ltd., Sheetal Cool Products Ltd., and Godrej Consumer Products Ltd. Despite the overall mixed performance, the FMCG sector showed notable strength, with several stocks recording gains.
Published on: December 27, 2024
As Indian investors prepare for the new year, stocks like Adani Enterprises, IndusInd Bank, and Tata Motors are emerging as top picks with the highest return potential, according to Bloomberg's average analyst consensus.
Despite ongoing domestic and geopolitical challenges, these blue-chip stocks are expected to see significant growth over the next 12 months. Jefferies predicts the Nifty 50 will hit 26,600 by December 2025, with a 13% EPS growth expected in FY2026 and 2025.
Meanwhile, HSBC has revised its BSE Sensex target for 2025, citing concerns over high valuations and earnings downgrades.
Top stocks with the highest expected upside include Adani Enterprises, IndusInd Bank, SBI Life Insurance, Adani Ports, and Coal India, with potential upsides ranging from 39% to 78%.
Published on: December 27, 2024
Madhav Marbles & Granites Ltd. topped the gainers list with a rise of 1.41%, followed by 20 Microns Ltd. (up 1.16%) and Gujarat Mineral Development Corporation Ltd. (up 0.74%).
Other notable gainers included Lexus Granito (India) Ltd. (up 0.50%) and Pokarna Ltd. (up 0.29%). However, several mining stocks faced losses, led by NMDC Ltd., which dropped 3.03%, followed by Oriental Trimex Ltd. (down 2.18%) and Ashapura Minechem Ltd. (down 1.81%).
Coal India Ltd. and KIOCL Ltd. also faced declines, adding to the sector's mixed performance for the day.