Published on: February 17, 2025
The debt-ridden IL&FS Group has initiated an interim distribution of Rs 5,000 crore to its eligible creditors as part of its ongoing debt restructuring process. This distribution includes Rs 3,500 crore in Infrastructure Investment Trust (InvIT) units and Rs 1,500 crore in cash. The payout is being carried out by three key holding companies: IL&FS Ltd., IL&FS Financial Services Ltd., and IL&FS Transportation Networks Ltd., which collectively hold the majority of the group's debt.
With this distribution, the IL&FS Group has now resolved approximately Rs 43,000 crore of its total debt, representing over 70% of the targeted Rs 61,000 crore debt resolution goal. The InvIT units, valued at Rs 3,500 crore, are issued by the Roadstar Infra Investment Trust, which comprises six underlying road assets with an enterprise valuation of Rs 8,576 crore.
The distribution will be carried out through a private placement followed by a listing, with February 17, 2025, set as the record date. Key banks and institutions such as Bank of Baroda, SBI, ICICI Bank, and LIC Mutual Fund are among those receiving units or cash in this phase.
The IL&FS Board opted for the InvIT route in 2019 after facing weak responses to individual road asset monetization efforts, believing it would provide better valuations for creditors. This interim distribution framework was approved by the National Company Law Appellate Tribunal in May 2022, aiming to expedite debt resolution while awaiting the final resolution of certain entities.
Published on: February 17, 2025
NSDL (National Securities Depository Ltd.) has announced a 30% increase in its consolidated net profit, reaching Rs 85.8 crore for the quarter ending December 2024, up from Rs 66.09 crore in the same period last year. The total income for the October-December quarter also saw a 16.2% rise, amounting to Rs 391.21 crore, compared to Rs 336.67 crore in the previous fiscal year.
For the nine months ending December 2024, NSDL reported a 32.6% year-on-year growth in net profit, totaling Rs 259.82 crore, and a 13.3% increase in total income, which reached Rs 1,141.4 crore. NSDL, which became the first Indian securities depository to surpass Rs 500 lakh crore in asset value in September 2024, has received approval from SEBI to launch an initial public offering (IPO).
The IPO will be an offer for sale of over 5.72 crore equity shares by its shareholders, including the NSE, SBI, and HDFC Bank. As an offer for sale, NSDL will not receive any proceeds from the IPO. Once launched, NSDL will join Central Depository Services (CDSL) as India’s second publicly listed depository.
Published on: February 17, 2025
Indian benchmark indices closed on a positive note on Thursday, February 16, 2025, with the BSE Sensex gaining 318.74 points (0.42%) to settle at 77,042.82, and the NSE Nifty50 rising 98.60 points (0.42%) to end at 23,311.80. The market sentiment was supported by eased US inflation data, fueling hopes of potential rate cuts by the US Federal Reserve.
On February 17, several stocks are likely to remain in the spotlight, including Reliance Industries, Infosys, Axis Bank, and Wipro, as key companies announce their Q3 results. Other notable corporate actions involve HCL Technologies, Tata Consultancy Services, and Vantage Knowledge Academy trading ex-dividend.
Investors are also eyeing announcements from companies like Bharat Petroleum, TVS Motor Company, Mastek, and AstraZeneca Pharma India.
Published on: February 17, 2025
Indian benchmark indices closed on a positive note on Thursday, February 16, 2025, with the BSE Sensex gaining 318.74 points (0.42%) to settle at 77,042.82, and the NSE Nifty50 rising 98.60 points (0.42%) to end at 23,311.80.
The market sentiment was supported by eased US inflation data, fueling hopes of potential rate cuts by the US Federal Reserve. On February 17, several stocks are likely to remain in the spotlight, including Reliance Industries, Infosys, Axis Bank, and Wipro, as key companies announce their Q3 results.
Other notable corporate actions involve HCL Technologies, Tata Consultancy Services, and Vantage Knowledge Academy trading ex-dividend. Investors are also eyeing announcements from companies like Bharat Petroleum, TVS Motor Company, Mastek, and AstraZeneca Pharma India.
Published on: February 17, 2025
Shares of Rail Vikas Nigam (RVNL) fell by 7.3% in early trading on February 17, 2025, following the company's disappointing Q3 results. RVNL reported a 13% year-on-year drop in consolidated net profit to Rs 311.58 crore, with revenue declining by 2.6% to Rs 4,567.38 crore.
The company's EBITDA for the quarter also fell to Rs 239 crore, and its EBITDA margin decreased to 5.2%.
Despite the weak performance, RVNL remains an important player in the development of India's railway infrastructure, with recent project wins such as the Koraput-Singapur Road Doubling Project. Over the past year, RVNL shares have risen by 35.2%, outperforming the BSE Sensex.
Published on: February 17, 2025
India's leading state power company, NTPC, is planning to build 30 gigawatts (GW) of nuclear power capacity over the next two decades, tripling its initial goal of 10 GW. The ambitious project, estimated to cost $62 billion, is part of the country’s broader push to meet its goal of 500 GW of non-fossil fuel electricity generation by 2030.
NTPC is already working with Nuclear Power Corp of India and building two 2.6 GW plants. The company is seeking land for new projects across eight states and is in talks with international partners, including Russia's Rosatom and the US’s General Electric and Holtec International, to explore small modular reactors (SMRs).
The Indian government has proposed law changes to allow private and foreign investment in the nuclear sector, aiming to overcome past hurdles related to local resistance and regulatory challenges.
Published on: February 17, 2025
Tata Consultancy Services (TCS) is set to roll out its annual salary increases in March, with payouts expected to begin in April. The hikes are likely to average between 4-8%, in line with a broader industry trend of gradual slowdown in annual pay raises.
This follows the high double-digit hikes seen during the COVID-19 pandemic period. The revisions come after Infosys, another major IT player, announced similar increases expected to range between 5-8%. TCS had previously linked its hikes and variable pay to compliance with its return-to-office policy, which was implemented in 2024.
Additionally, TCS reported an 11.95% YoY rise in its consolidated net profit for the December quarter, reflecting continued business growth despite moderate compensation adjustments.
Published on: February 17, 2025
Global brokerage firm Citi has reiterated its 'buy' rating on Indus Towers, setting a target price of Rs 490, indicating a potential upside of 46% from its closing price of Rs 335.15 on February 14. Citi's bullish outlook is driven by expectations of robust growth for the telecom infrastructure company over the next 1-2 years.
The growth is anticipated to be fueled by significant new network rollouts by major telecom operators such as Vodafone Idea and Bharti Airtel, which are expected to drive increased demand for Indus Towers' services.
Published on: February 17, 2025
Singapore Telecommunications Ltd (Singtel) is preparing to sell another tranche of shares in Bharti Airtel, potentially worth $1 billion (Rs 8,500 crore), according to sources reported by CNBC-Awaaz on February 17. Singtel currently holds a 9.5% stake in Airtel through its affiliate, Pastel Ltd. The sale is part of Singtel's ongoing capital recycling strategy, aimed at strengthening its balance sheet and providing more value to shareholders.
The telecom giant has previously sold portions of its stake in Airtel, including a 0.8% stake to GQG Partners in March 2024 and a 3.3% stake in 2022 for Rs 12,895 crore to Bharti Telecom, Airtel's holding company. Singtel has been a strategic investor in Airtel since 2000 and has focused on reducing debt while investing in growth areas like data centers and IT services.
The sale follows strong quarterly earnings by Bharti Airtel, with its profit for the December quarter rising significantly due to tariff hikes and a one-time gain from its stake in Indus Towers. Airtel’s ARPU also saw an 18% year-on-year increase, further strengthening the company's financial performance.
Published on: February 17, 2025
In the third quarter of FY24-25, Life Insurance Corporation of India (LIC), India's largest life insurer and domestic institutional investor, reduced its stake in 98 stocks, capitalizing on high valuations and a slowdown in earnings. The insurer's shareholding in companies listed on the NSE dropped to an all-time low of 3.51%. LIC's portfolio value fell by 8.8%, from ₹16.75 lakh crore in the September quarter to ₹15.28 lakh crore in Q3.
LIC's strategic selling included large stakes in Tata group companies such as Tata Power, Tata Chemicals, and Voltas, with significant reductions in HPCL and Strides Pharma. On the other hand, LIC raised its stake in 71 stocks, focusing on FMCG giants like Procter & Gamble Hygiene, Patanjali Foods, Nestle India, and Dabur. LIC also increased its stake in Cochin Shipyard and Astral to over 1%.
Amid a challenging market environment in 2025, analysts recommend investors to stick with large-cap stocks, noting that the current market correction is driven by a combination of high valuations, earnings slowdown, and economic uncertainties. With India's GDP expected to grow from 6.4% in FY25 to 7.0% in FY26, experts suggest that long-term investors should adopt a patient, accumulation strategy.
Published on: February 17, 2025
Indian stock markets are facing significant pressure as the Nifty Realty and Nifty PSU Bank indices hit their respective 52-week lows in intra-day trading on Monday, driven by relentless foreign institutional investor (FII) selling. The Nifty Realty index dropped 3% to 806.05, while the Nifty PSU Bank index saw a 2% decline to 5748.70. Both indices have underperformed the broader market, with the Realty sector falling 14% and PSU Banks declining by 8.7% in the past month.
Leading stocks in both sectors, such as State Bank of India (SBI), Bank of Baroda, DLF, and Godrej Properties, also hit their 52-week lows. The broader market has struggled this year, with the Nifty 50 down nearly 4%, underperforming global indices like the S&P 500 and European stocks. Analysts attribute the market weakness to a sharp slowdown in corporate earnings growth and high valuations, compounded by a stronger dollar.
Experts believe that a recovery in earnings and a weakening dollar may reverse the current market trend, but caution that this could take time. The real estate sector remains vulnerable to macroeconomic factors, with demand fluctuating due to economic conditions. Similarly, state-owned banks have faced margin compression due to a shift in deposit mix and lower trading gains. Despite the challenges, credit costs and profitability have remained relatively stable.
Published on: February 17, 2025
The IL&FS Group has initiated the distribution of Rs 5,000 crore to its creditors as part of its ongoing debt restructuring process. The interim distribution includes Rs 3,500 crore in Infrastructure Investment Trust (InvIT) units and Rs 1,500 crore in cash. The funds are being distributed by three key holding companies—IL&FS Ltd., IL&FS Financial Services Ltd., and IL&FS Transportation Networks Ltd.—which collectively hold the majority of the group’s debt.
This distribution is a significant step in the group’s efforts to resolve its Rs 61,000 crore debt, with the payment reducing its debt by over 70% to approximately Rs 43,000 crore. The InvIT units are issued by Roadstar Infra Investment Trust, which holds six road assets with a total enterprise valuation of Rs 8,576 crore. Notable institutions like Bank of Baroda, State Bank of India, and ICICI Bank will benefit from this phase of the distribution.
The move follows the IL&FS Board's 2019 decision to use the InvIT route for better valuations, after weak responses to individual road asset monetization efforts. The National Company Law Appellate Tribunal had approved the interim distribution framework in May 2022, which aims to expedite creditor payouts while waiting for the final resolution of other IL&FS entities.
Published on: February 17, 2025
State Bank of India's (SBI) share price has fallen by 2.77% over the past five trading days, reflecting broader market trends. This drop comes after the bank announced interest rate reductions on a variety of retail and business loans, following the Reserve Bank of India's (RBI) recent 25 basis point repo rate cut. SBI's new home loan rates are set at 8.9% (EBR-linked), with other loan categories also experiencing rate adjustments.
Despite this dip in stock performance, Nuvama has maintained a 'Buy' recommendation for SBI, citing the bank's expected loan growth of 14-16% for FY25, strong asset quality, and stable net interest margin (NIM) of around 3%. SBI's recent Q3 results reported an 84% jump in net profit to Rs 16,891 crore, driven by growth in interest income and total income.
While SBI's share price has declined by over 11% in the past six months, the bank’s solid fundamentals and positive loan growth outlook continue to support a favorable long-term perspective, according to analysts. In contrast, the Nifty 50 index has also shown a slight decline over the past month but has outperformed SBI’s stock in the last year.
Published on: February 17, 2025
A report by the State Bank of India (SBI) suggests that even with higher US tariffs in the range of 15 to 20 percent, the impact on Indian exports will be minimal, with an estimated decline of just 3 to 3.5 percent. The report highlights that this small impact can be mitigated by India's strategic focus on export diversification, value addition, and the exploration of new trade routes.
While the US remains India's top export destination, accounting for 17.7% of total exports in FY 2023-24, India is working to reduce its dependency on a single market by strengthening trade relations with Europe, the Middle East, and other regions. The report also points out that India's dynamic tariff policies, which have seen a significant rise in tariffs on US imports, reflect the country's efforts to balance trade relations and protect domestic industries.
India's shift towards exporting higher-value finished goods rather than raw materials is expected to ensure competitiveness in global markets, even in the face of tariff hikes. Additionally, the country is working to enhance its supply chain networks, which will further bolster India's position in international trade despite potential trade challenges. Overall, the report suggests that India's proactive trade strategies will help sustain steady export growth in the long term.
Published on: February 17, 2025
Kotak Mahindra Bank has reduced its savings account interest rates, effective February 17, 2025, following the Reserve Bank of India’s (RBI) recent decision to lower the repo rate by 25 basis points. The new rates will see a decrease for balances between Rs. 5 lakh and Rs. 50 lakh, with rates falling from 3.5% to 3%, and for balances above Rs. 50 lakh, from 4% to 3.5%. Balances of Rs. 5 lakh or less will continue to earn 3% per annum.
The reduction in interest rates comes after the RBI lowered the repo rate from 6.50% to 6.25% on February 7, 2025. The new rates will apply to both Resident and Non-Resident (NRE/NRO) savings accounts. The interest on these savings accounts is calculated quarterly and paid on June 30, September 30, December 31, and March 31.
While Kotak Mahindra Bank has not altered its fixed deposit rates, customers with balances between Rs. 5 lakh and Rs. 50 lakh, and those with larger balances, will see a reduction in their interest income. This change could impact customers who rely on their savings for regular income.
However, customers with balances of Rs. 5 lakh or less will not experience any change in their returns. Customers are advised to consider how these changes might affect their savings, particularly in light of inflation and potential future rate cuts, and to contact their branch for further details or clarification.