Goldman Sachs Raises Concerns Over Bharti Airtel's 5% Stake Purchase in Airtel Africa

Goldman Sachs suggests Airtel should focus on India investments, acquisitions in B2B, fintech, and data centers instead of increasing stake in Airtel Africa.

Published on: February 25, 2025

Goldman Sachs has raised concerns over Bharti Airtel's proposal to purchase an additional 5% stake in Airtel Africa, suggesting that the company should prioritize investing in its India business. In a note released on Tuesday, the brokerage recommended that Airtel focus on acquisitions in business-to-business, fintech sectors, and consolidating its stake in data centers instead of increasing its stake in its Africa unit.

The acquisition, which will take place through Airtel Africa Mauritius Ltd., is expected to cost around $320 million, about 0.3% of Bharti’s market cap. Goldman Sachs predicts Airtel India’s operations will generate $14 billion in free cash flow from 2026 to 2028, with half of this amount expected to be distributed as dividends.

Despite Airtel Africa's solid revenue growth, the report highlighted a decline in the Africa business's contribution to Airtel's overall earnings before interest, depreciation, and amortization (EBITDA), dropping from 32% in fiscal 2019 to an estimated 18% in fiscal 2025. Airtel’s shares rose by 2.55% to Rs 1,641.6 on Tuesday, outpacing the benchmark Sensex's 0.2% gain.

Indian Indices End Mixed; Metal Sector Declines, Media Sector Shines

Nifty50 drops slightly, while Sensex closes higher; Rupee experiences its biggest fall since February against the US Dollar.

Published on: February 25, 2025

Indian benchmark indices ended Tuesday’s session on a mixed note, with the metal sector seeing the steepest decline, while media emerged as a top gainer. The NSE Nifty 50 closed 5.80 points or 0.03% lower at 22,547.55, while the BSE Sensex gained 147.71 points or 0.20%, closing at 74,602.12.

Mahindra & Mahindra and Bharti Airtel were among the top gainers, while Hindalco Industries and Dr. Reddy’s Laboratories were the top laggards. The rupee fell sharply by 55 paise to 87.25 against the US Dollar, marking its biggest intraday decline since early February.

The broader market also faced pressure, with both BSE Midcap and Smallcap indices closing lower. On the sector front, Nifty Metal and Realty sectors saw the biggest drops, while Media and Auto sectors posted strong gains. Market breadth favored the sellers, with 2,150 stocks declining on the BSE.

Bharti Airtel Shares Surge 2.6% After 5G Partnership Announcement with Ericsson

Airtel's collaboration with Ericsson for 5G Core technology boosts stock price, with a market cap of Rs 9.33 lakh crore.

Published on: February 25, 2025

Bharti Airtel's shares rose 2.6% in Tuesday's trade, hitting an intraday high of Rs 1,643 per share on the BSE, following the announcement of its partnership with Ericsson for 5G Core technology. At 12:36 PM, the stock was up 2.26% at Rs 1,637 per share, with a market capitalization of Rs 9.33 lakh crore.

This collaboration will enable Airtel to transition to a full-scale 5G standalone network, enhancing its capabilities for customers across India. Ericsson will deploy its signaling controller solution and introduce a 5G-enabled charging and policy solution.

Airtel, which has been working with Ericsson for over 25 years, also recently partnered with Apple to offer Apple TV+ and Apple Music to its Home Wi-Fi and postpaid customers. With a 42% rise in its stock price over the past year, Airtel outperformed the Sensex's 2.2% gain.

Shares of Narayana Hruday, Norben Tea, Mahamaya Steel Hit Fresh 52-Week Highs Amid Mixed Market Performance

Nifty50 sees gains from bluechip stocks, while several companies hit new 52-week lows; Sensex rises 164.11 points at mid-morning trade.

Published on: February 25, 2025

Shares of Narayana Hrudayalaya, Norben Tea Export, Mahamaya Steel, Nitiraj Engineers, and Camlin Fine Sciences hit fresh 52-week highs at 10:55 AM (IST) on the NSE. Meanwhile, the benchmark Nifty index rose by 9.96 points to 22,563.3, supported by buying in bluechip stocks like M&M, Bharti Airtel, Bajaj Finserv, Bajaj Finance, and Adani Ports SEZ.

However, stocks such as Ruchi Infra, Sanco Industries, AGS Transact Tech, Indef Manufacturing, and Eurotex Industries recorded their new 52-week lows. In the Nifty50 index, 24 shares were in the green, while 26 traded in the red.

The BSE Sensex rose by 164.11 points, reaching 74,618.52. Traders focused on sectors like IT-enabled services, auto, power, and services, while selling was observed in leather, textiles, non-ferrous metals, construction, and gas & petroleum sectors.

IndusInd Bank Revises Fixed Deposit Interest Rates; Senior Citizens Get Higher Returns

The bank’s new FD rates offer up to 7.75% for general citizens and 8.25% for senior citizens, while other banks also adjust rates following the RBI's recent repo rate cut.

Published on: February 25, 2025

IndusInd Bank has updated its fixed deposit (FD) interest rates for deposits below Rs 3 crore. The bank now offers a maximum rate of 7.75% for general citizens and 8.25% for senior citizens, applicable to tenures ranging from 1 year 5 months to just under 1 year 6 months.

For deposits between seven days to ten years, general citizens can earn interest rates between 3.50% and 7.75%, while senior citizens can get rates ranging from 4% to 8.25%.

These revised rates follow a recent trend, with other banks like DCB Bank and Shivalik Small Finance Bank also adjusting their FD rates after the RBI's 25 basis points repo rate cut in February. Despite the changes, some banks continue to offer senior citizens interest rates as high as 9.10% per annum.

Axis Bank Mulls Sale of Majority Stake in Shadow-Banking Unit Axis Finance

The private lender is exploring strategic options for Axis Finance, potentially valuing the deal between $900 million to $1 billion, while deliberations continue on the sale.

Published on: February 25, 2025

Axis Bank Ltd. is considering various strategic options for its shadow-banking arm, Axis Finance Ltd., including the possible sale of a majority stake. The private-sector lender is working with advisers on a review of the unit, which could be valued between $900 million and $1 billion in a potential transaction.

Axis Finance, a wholly owned subsidiary, provides services like corporate loans, collateral financing, and real estate funding.

While deliberations are ongoing, there is also a possibility that Axis Bank may choose not to proceed with the sale. The bank has supported Axis Finance's growth with equity infusions and funding lines, as reported by Fitch's India Ratings.

Mumbai Deposit Shifts from Cooperative Banks to Public Sector Banks After RBI Action

Following RBI's governance crackdown on New India Cooperative Bank, depositors in Mumbai are moving their accounts to public sector banks like SBI, fearing the instability of urban cooperative banks.

Published on: February 25, 2025

Amid a series of actions by the Reserve Bank of India (RBI) against New India Cooperative Bank due to governance concerns, Mumbai-based depositors are shifting their accounts to larger public sector banks, with many opening new society accounts at the State Bank of India (SBI).

This movement follows the RBI's suspension of deposit withdrawals and ban on issuing new loans, which led to widespread panic among the bank's customers. The arrest of former bank officials over embezzlement has further fueled concerns about the health of urban cooperative banks in the region.

Despite some depositors remaining confident in urban cooperative banks, many are now seeking safer alternatives in PSU banks, which have seen a boost in business following the turmoil.

InCred Equities Downgrades SBI to 'Hold' as Stock Hits 52-Week Low

Brokerage Cuts Target Price and Forecasts Moderating Return on Assets Amidst Rate Cuts and Non-Core Income Concerns

Published on: February 24, 2025

State Bank of India (SBI) shares hit a fresh 52-week low of Rs 710.90 on February 24, 2025, following a downgrade by InCred Equities from 'Add' to 'Hold'. The brokerage cited concerns over SBI's return on assets (RoA), which is materially influenced by non-core income like treasury gains and recoveries from written-off accounts, both of which are difficult to predict.

InCred Equities reduced its target price for SBI to Rs 795 from Rs 1,100, reflecting a potential upside of just 10.17% from its previous close. Analysts expect SBI's return on equity (RoE) to decline as credit costs normalize and core profitability is impacted by the repo rate cut cycle.

The report also highlighted slower-than-expected recovery rates from SBI's written-off pool and moderate margin growth going forward, leading to a reduced outlook on the stock despite its current valuation being not expensive.

RBI Proposal to Remove Foreclosure Charges Could Shake Up NBFCs and Banks

Feedback Window Open Until March 21 as Industry Weighs Impact on Profitability and Loan Churn

Published on: February 24, 2025

The Reserve Bank of India (RBI) has proposed removing foreclosure charges on loans, a move that could significantly impact the fee-based income of non-banking financial companies (NBFCs) and banks. The central bank has invited feedback from stakeholders until March 21, 2025, before implementing the final guidelines.

According to a report by Morgan Stanley, the removal of foreclosure fees is likely to result in increased loan churn, as borrowers may switch lenders more frequently in search of better rates. The regulation could particularly affect NBFCs with high exposure to floating-rate loans against property (LAP). Key players like Aditya Birla Capital, PNB Housing Finance, and Cholamandalam Investment are expected to feel the brunt.

While the proposed change may reduce profitability, experts suggest that banks and NBFCs might adjust by raising processing fees or tweaking loan spreads. The move could also spark increased competition in the lending space, with borrowers more inclined to transfer balances to institutions offering better terms.

Nifty Bank Index Drops Over 1% Amid FII Sell-Off and Weak Global Sentiment

Major Bank Stocks Struggle, IndusInd Bank and HDFC Bank Hit Hardest

Published on: February 24, 2025

The Nifty Bank index saw a sharp decline of over 1%, falling nearly 530 points to 48,452 on February 24, as several major bank stocks experienced losses of up to 2%. The index extended its losses for the third consecutive session, driven by sustained selling from foreign portfolio investors (FPIs), who hold significant exposure to the sector.

IndusInd Bank led the losses, falling 1.6% to Rs 1,027 per share, followed by HDFC Bank, which dropped nearly 1.4% to Rs 1,669. ICICI Bank also recorded a decline of 1.29%. However, a few stocks like Federal Bank showed resilience, rising by over 1%, with analysts maintaining a 'BUY' rating for the stock.

The ongoing downturn is attributed to factors such as persistent FII outflows, concerns over potential US tariffs, and rising inflation expectations in the US, which are affecting global market sentiment.

Sensex and Nifty Tumble Amid Global Market Weakness and FII Outflows

Indian Equities Drop Sharply in Early Trade on US Tariff Concerns and Foreign Selling

Published on: February 24, 2025

Equity benchmark indices Sensex and Nifty witnessed a sharp decline in early trade on Monday, tracking weak trends in global markets, sustained foreign institutional investor (FII) outflows, and concerns over US tariffs.

The Sensex plunged by 567.62 points to 74,743.44, while the Nifty dropped 188.4 points to 22,607.50. Major stocks from the Sensex pack, including HCL Tech, IndusInd Bank, and TCS, were among the biggest losers. FIIs continued to offload equities, with over Rs 23,710 crore in outflows this month alone, contributing to total outflows of over Rs 1 lakh crore in 2025.

Global trade uncertainties, particularly around US President Trump's tariff policies and rising inflation expectations in the US, added to the market's volatility. Asian markets followed suit, trading lower, while global oil prices also saw a dip.

RBI's Repo Rate Cut Brings Relief to Home Loan Borrowers

Banks Pass On 25 Bps Rate Cut, Lowering Home Loan Interest Rates Across Lenders

Published on: February 24, 2025

On February 7, 2025, the Reserve Bank of India (RBI) reduced the repo rate by 25 basis points to 6.25 percent, marking its first rate cut in nearly five years. This move is expected to ease the burden on borrowers, especially those with floating-rate home loans linked to the repo rate.

Banks are now required to pass on the full benefit of this cut to borrowers. Following the reduction, several banks have lowered their home loan interest rates, with Union Bank of India and Central Bank of India offering the lowest rates starting at 8.10 percent.

The revised rates across major banks now range between 8.10 percent and 9 percent, with home loan EMIs for a Rs 1 lakh loan over 20 years varying accordingly.

Quality Power Electrical Equipments Makes Muted Market Debut with Discount Listing

Shares debut at a discount on BSE, with the stock opening lower than its issue price, reflecting subdued investor sentiment.

Published on: February 24, 2025

Quality Power Electrical Equipments had a muted debut on Dalal Street on Monday, listing at Rs 432.05 on BSE, a 1.66% discount to its issue price of Rs 425. The stock opened lower than its issue price of Rs 430 on BSE, marking a subdued start for the energy transition equipment maker.

Prior to the listing, the grey market premium (GMP) was negative, indicating a weak debut. The IPO, which ran from February 14-18, was subscribed 1.29 times, with the retail investor portion being the most subscribed.

Despite the muted listing, the company, engaged in high-voltage electrical equipment and power technologies, raised Rs 858.7 crore through its IPO.

Tata Motors Stock Liveblog: Real-Time Updates and Expert Analysis

Stay ahead with the latest information and insights on Tata Motors' stock performance, including key metrics and breaking news.

Published on: February 24, 2025

Welcome to the Tata Motors Stock Liveblog, your go-to source for real-time updates and in-depth analysis of one of the most prominent stocks in the market. Get the latest details on Tata Motors' stock performance, including last traded price (Rs 668.25), market capitalization (Rs 245,991.17 crore), volume (8,861,769 shares), price-to-earnings ratio (7.74), and earnings per share (86.3).

Our liveblog combines fundamental and technical insights, along with expert recommendations, to help you stay informed and make smarter investment decisions.

Keep up with breaking news and market shifts that could impact Tata Motors' performance. Updated as of 06:33:05 PM IST on February 24, 2025.

Zomato Set to Join Nifty50 Index, Boosting Market Visibility

The food delivery giant replaces Britannia Industries and BPCL in the benchmark index, expected to drive stock inflows.

Published on: February 24, 2025

Zomato is set to gain traction in Monday's trade following its inclusion in the Nifty50 index, effective March 27, 2025. The food delivery company will replace Britannia Industries and BPCL as part of the semi-annual reshuffling of the benchmark index, announced by the NSE.

Despite settling in the red on Friday, down 1% to Rs 230.25, Zomato's inclusion in the index is likely to boost its visibility and attract institutional investments.

The company reported a 57.25% decline in net profit to Rs 59 crore for Q3FY25, while its sales rose by 64.39% to Rs 5,405 crore. Over the past year, Zomato's stock has gained more than 45%, and it has returned 182% over the past three years.