Published on: February 24, 2025
The Nifty FMCG index ended its 15-session losing streak on Monday, posting a 0.36% gain, up by 187.65 points, closing at 52,285. The index had seen a 9.27% decline during its longest-ever losing streak since its inception in 1999, with the sharpest drop on February 11.
The sector saw gains from beverage stocks like Varun Beverages, United Spirits, and United Breweries, while stocks such as Godrej Consumer and Marico were the biggest decliners. Analysts expect immediate resistance between 52,400–52,500, with support around 51,500–51,600.
Rural demand is expected to continue boosting FMCG sales, despite challenges like urban demand weakness and input cost inflation. Nuvama Research suggests that FMCG companies with greater rural exposure will likely outperform in the coming quarters.
Published on: February 24, 2025
Manappuram Finance shares rose 4% to Rs 209 on the BSE in early Monday trade, as discussions between the company and American private equity giant Bain Capital neared completion. Bain is set to acquire a substantial portion of the promoter's 35.25% stake in the gold loan provider, valued at Rs 17,000 crore.
The deal will involve Bain infusing capital via a preferential allotment, along with a secondary sale of shares by the promoters. The transactions will lead to Bain acquiring up to 46% of the company's equity following a voluntary open offer, potentially paying Rs 9,000-10,000 crore.
A new CEO will be appointed as Bain seeks management control, while current CEO Nandakumar and his family will take non-executive roles. Manappuram’s shares have surged 36.67% in anticipation of the deal.
Published on: February 24, 2025
State-run NTPC has entered into a non-binding Term Sheet with EDF India to collaborate on the development, operation, and maintenance of pumped storage projects (PSPs) and other renewable energy initiatives.
The two companies will form a 50:50 joint venture (JVC) following government approval, aimed at enhancing India’s renewable energy capacity. NTPC, India’s largest integrated power utility, brings its expertise in thermal, hydro, and renewable energy, while EDF India, owned by the French multinational Électricité de France, will contribute its global knowledge.
This partnership is expected to drive innovation and help NTPC achieve its goal of 60 GW of renewable energy capacity by 2032.
Published on: February 24, 2025
HCLTech CEO C Vijayakumar emphasized the growing impact of generative AI technologies on the Indian IT sector, urging companies to rethink their business models in the face of rapid advancements.
Highlighting the potential for AI to drastically reduce project timelines, he called on India to develop its own language models to reduce reliance on foreign technologies and mitigate geopolitical risks.
Vijayakumar also suggested that the IT industry must adopt a proactive, non-complacent approach to stay competitive, a sentiment echoed by Infosys CEO Salil Parekh, who emphasized the importance of staying vigilant in the evolving landscape.
Published on: February 24, 2025
Infosys shares experienced a sharp 3.6% intra-day fall on Monday, dropping below its long-term 200-Day Simple Moving Average (SMA) for the first time since June 2024. The stock has declined nearly 7% in February, following recent news of layoffs, including the dismissal of 400 trainees.
Additionally, there are concerns that up to 4,500 more trainees could face similar actions. The company recently postponed internal assessments for trainees amidst an outcry. Analysts indicate the stock is near oversold levels, with downside risks in the near term.
Key support levels are seen at Rs 1,729 and Rs 1,670, while resistance is pegged at Rs 1,783. The overall technical outlook remains negative as long as the stock stays below Rs 1,860.
Published on: February 24, 2025
The Telecom Regulatory Authority of India (TRAI) has proposed a new framework allowing private companies such as Infosys, Tata Communications, and Larsen & Toubro to directly access spectrum and set up their own 5G networks, potentially at 40% lower costs than using telecom operators' networks.
This recommendation, aimed at promoting captive non-public networks (CNPN), could drastically increase enterprise 5G adoption in India. While it could offer significant cost savings and growth potential, telecom giants like Bharti Airtel, Reliance Jio, and Vodafone Idea oppose the move, citing concerns over unfair competition and national security.
TRAI's proposal is a step towards catching up with global trends where private 5G networks have flourished.
Published on: February 24, 2025
Despite a significant drop in the benchmark NSE Nifty and BSE Sensex on Monday, several stocks including Shree Rama News, Reliance Naval & Engg, Deccan Cements, Camlin Fine Sc, and Nitiraj Engineers hit fresh 52-week highs.
The Nifty closed 242.56 points lower at 22,553.35, with 38 of its constituents ending in the red. In contrast, stocks like Stallion India Fluor, NTPC Green Energy, Khandwala Sec, Gayatri Highways, and SEL Manufacturing Co reached their 52-week lows.
On the sector front, traders favored General, IT-Enabled Services, Auto, and Beverages - Alcoholic, while selling pressure was seen in Leather, Textiles, Metals, and IT Software sectors. M&M, Dr. Reddy's, and Kotak Bank were among the top gainers in the Nifty 50 index, while Wipro, Infosys, and Bharti Airtel saw declines.
Published on: February 24, 2025
The recent market correction since September 2024 has brought valuations down, making many large, mid, and small-cap stocks attractive for long-term investors, according to analysts. As of February 21, 2025, 272 of the top 500 stocks have fallen by more than 20% since their September highs.
The Nifty 100 index is trading at a lower PE ratio of 20.6x, a 17.2% drop from September. Key stocks from the Adani group, including Adani Green Energy and Adani Energy Solutions, have seen their PE ratios fall by 63% and 54%, respectively.
Other large-cap stocks like Bharti Airtel, BPCL, and ABB India are also offering attractive valuations. Despite the potential for further declines, analysts suggest that the current market conditions present an opportunity for strategic long-term investments, particularly in stocks with significant dips in their PE ratios.
Published on: February 24, 2025
The National Stock Exchange (NSE) has revealed significant changes in its benchmark indices, with Zomato and Jio Financial Services set to join the Nifty50 index as part of its upcoming semi-annual rebalancing on March 25, 2025, replacing BPCL and Britannia.
In other corporate news, Bharti Airtel plans to increase its stake in Airtel Africa, acquiring up to 5% of the company through its subsidiary. RVNL has won a ₹156.35 crore contract from South Western Railway for a major infrastructure project. Coal India has entered into a joint venture with EDF India for renewable energy initiatives, while Vedanta has emerged as the preferred bidder for the Kauhari Diamond Block in Madhya Pradesh.
Bajaj Auto is set to invest 150 million euros in its Dutch subsidiary, and Paisalo Digital has withdrawn its plan for equity warrants due to market fluctuations. These moves highlight the evolving dynamics in India's corporate sector and the ongoing restructuring within key indices.
Published on: February 24, 2025
The Indian stock market continues to slide, with both Sensex and Nifty down 13-14% from their record highs in September 2024, as the correction extends into a fifth consecutive month. On February 24, 2025, Sensex fell 856 points to 74,454, and Nifty dropped 242 points to 22,553, driven by weak global cues, lackluster Q3 earnings, and ongoing concerns over US President Trump’s tariff threats.
Foreign institutional investors (FII) remain net sellers, exacerbating the market's downward pressure. Analysts predict further declines, with technical indicators pointing to potential support levels of 22,400 for Nifty.
Key sectors such as IT, metal, and capital goods saw the steepest losses, while only a few stocks in sectors like FMCG and banking managed to gain. As global headwinds continue, the domestic market remains volatile, making investors cautious.
Published on: February 20, 2025
Tata Motors, India's leading electric vehicle manufacturer, is celebrating a major milestone of surpassing 200,000 EV sales by offering special limited-period deals for 45 days.
Customers can avail of benefits such as an exchange bonus of up to Rs 50,000, 100% on-road financing with zero down payment, and complimentary access to Tata Power’s charging network.
Additionally, Tata EV owners upgrading to new models like the Nexon EV and Curvv EV can receive loyalty bonuses. The announcement comes amid Tesla's expected entry into India in April 2024, with plans to launch affordable EVs priced around Rs 21 lakh.
Published on: February 20, 2025
Hindustan Unilever (HUL) has upgraded its homegrown eB2B app, Shikhar, with AI-powered features to help kirana stores increase sales and enhance engagement with shoppers. The new update allows retailers to create personalized promotions, improve store visibility, and track order frequency, aiming to shift from monthly to multiple orders per week.
With 70% of retailer partners currently placing monthly orders, HUL expects this figure to rise. The AI-driven platform allows store owners to upload their photos, personalize offers, and better communicate with their customer base.
HUL’s strategy focuses on strengthening its relationship with the 1.4 million kirana stores, which generate 75% of the company’s revenue. The app helps retailers manage smaller inventories, improve cash flow, and rotate capital efficiently, driving higher sales while catering to the increasing demand from both urban and rural markets.
Published on: February 20, 2025
A rally in India's consumer staples shares, triggered by the federal government’s $12 billion income tax cut, has fizzled out as investor focus shifts back to weak demand. The Nifty FMCG Index, which surged 3% on February 1 following the announcement, marked 13 consecutive sessions of losses, its longest losing streak on record.
While the tax cuts initially fueled optimism, skepticism has risen over whether they can boost broader consumption, with analysts suggesting that the stimulus may benefit discretionary spending more than essential goods.
Shares of key companies like Hindustan Unilever and ITC have seen significant declines, and experts warn that addressing earnings cuts is crucial for stabilizing valuations, urging better execution from company management to counter inflation and sluggish demand.
Published on: February 20, 2025
Vedanta's proposal to demerge into five independent, sector-focused companies has been overwhelmingly approved by its shareholders and creditors. According to the company’s stock exchange filing, 99.9987% of shareholders, 99.5900% of secured creditors, and 99.9588% of unsecured creditors voted in favor of the demerger.
Under the scheme, shareholders will receive one additional share in each of the four newly formed companies. The five entities include Vedanta Aluminium, Vedanta Oil & Gas, Vedanta Power, Vedanta Iron and Steel, and Vedanta Limited, which will focus on zinc and silver production.
The demerger aims to streamline operations, enhance efficiency, and provide targeted capital access for each business, enabling specialized investors and partners to drive future growth. The restructuring is still subject to regulatory approvals, including clearance from the National Company Law Tribunal (NCLT).
Published on: February 20, 2025
Larsen & Toubro (L&T) announced on Thursday that it has secured a significant order from Hindalco for the construction of an 850 KTPA greenfield alumina refinery plant in Odisha. The order, classified as "large" by L&T, falls between Rs 2,500 crore and Rs 5,000 crore.
The scope of work involves engineering, manufacturing, supply, construction, and installation, with collaboration from reputed technology providers.
The project will be executed under L&T's Minerals & Metals (M&M) business vertical, which specializes in end-to-end solutions in the Engineering, Procurement, and Construction (EPC) domain, catering to sectors such as mining, minerals processing, and material handling.