Published on: February 6, 2025
Kotak Mahindra Mutual Fund has introduced India’s first exchange-traded fund (ETF) that tracks the MSCI India Index, designed to reflect the performance of large-cap and mid-cap stocks in the Indian market.
This ETF aims to cater to global and domestic investors interested in India's economic growth. With 156 stocks, the MSCI India Index covers about 85% of the Indian equity universe, offering exposure to key sectors like financials, consumer discretionary, and IT.
While the fund offers promising growth potential, it comes with risks such as political changes, economic slowdowns, and currency fluctuations. Investors should weigh these factors while considering it as a potential addition to their portfolios. The NFO for the Kotak MSCI India ETF is open until February 12, 2025.
Published on: February 5, 2025
India has accused South Korean automaker Kia of evading $155 million in taxes by misclassifying imports of components for assembling its luxury Carnival minivan.
The tax authorities allege that Kia imported parts separately to evade higher duties on completely knocked down (CKD) kits, which are taxed at a higher rate. Kia denies any wrongdoing and has submitted evidence to support its compliance with regulations, while continuing to fight the charges.
If the dispute is lost, Kia could face a penalty of up to $310 million. This marks the latest tax-related conflict between a foreign automaker and India, following similar issues faced by companies like Volkswagen and Tesla.
Published on: February 5, 2025
JM Financial has forecasted that food delivery giant Zomato Ltd. and financial services firm Jio Financial Services could be added to the Nifty 50 index during the upcoming March rebalancing. This follows the NSE's inclusion of these companies in the F&O segment in November 2024.
The potential additions are expected to attract significant passive inflows, with Zomato expected to bring in $702 million and Jio Financial Services $404 million, totaling $1.11 billion.
On the other hand, Bharat Petroleum Corporation (BPCL) and Britannia Industries are likely to be excluded from the index, leading to combined outflows of $500 million. The official announcement on Nifty 50 constituent changes is expected in February, with the adjustments taking effect from March 31, 2025.
Published on: February 5, 2025
Britannia Industries is expected to report a 5-7% year-on-year growth in its Q3FY25 sales, driven by volume upticks, but its margins and net profit may face a hit due to rising raw material prices and inflation.
Brokerages predict a net profit decline of 5.4-8% for the quarter, with estimates for revenue ranging between Rs 4,404 crore and Rs 4,485 crore. Despite the pressure on margins, Britannia's volume growth is projected at around 5-7%.
Investors will be closely watching the company's guidance on urban/rural demand, raw material costs, and competition in the FMCG space.
Published on: February 5, 2025
ITC Hotels Ltd., recently demerged from parent company ITC Ltd., was removed from the BSE Sensex and other indices ahead of Wednesday's market opening. Asia Index Pvt. had announced that ITC Hotels would exit the indices unless the stock hit a lower circuit by the cut-off time.
Despite the exit, ITC Hotels shares were trading higher after opening lower by 1.34%. Following the demerger, ITC Hotels has become India's second-largest hotel chain, with 140 properties and plans to expand further under its asset-light model. The company aims to reach 186 properties by March 2030, with a portfolio of 17,265 keys.
Published on: February 5, 2025
ITC Ltd. has inaugurated its global Centre of Excellence for Artificial Intelligence near Kolkata, marking a significant step in its innovation journey. The centre, located in the New Town area, was virtually launched by West Bengal Chief Minister Mamata Banerjee.
ITC Chairman Sanjiv Puri highlighted the state’s vast investment potential, particularly in the hospitality sector, and reiterated the company’s commitment to further expanding its presence across various sectors, including hotels, manufacturing, IT, and agriculture in West Bengal.
Published on: February 5, 2025
Godrej Properties' Executive Chairman, Pirojsha Godrej, affirmed the company’s confidence in meeting its pre-booking target of Rs 27,000 crore for FY25, despite a slight 5% year-on-year decline in pre-sales bookings for the December quarter.
The company has reported strong revenue, bottom-line growth, and customer collections. Brokerages remain optimistic, attributing the dip in bookings to delayed launches, rather than a slowdown in demand.
The company is also focused on expanding its presence in key markets, including NCR, Bengaluru, Pune, and Mumbai, with major launches planned for the upcoming quarter. The company expects to launch its upscale Worli project in the next financial year, pending necessary permissions.
Published on: February 5, 2025
Godrej Properties reported a record-breaking Rs 28,800 crore in property sales for the 2024 calendar year, the highest among listed real estate companies in India. This marks a 69% year-on-year growth, driven by a 54% increase in volume with 26.38 million square feet sold.
The company’s strong performance was led by key markets such as Delhi-NCR, Mumbai, and Bengaluru.
Godrej Properties also launched 30 new projects with a sales potential of Rs 34,300 crore and acquired 16 land parcels. The company’s December quarter net profit surged 2.5 times to Rs 162.64 crore, reflecting the robust housing demand.
Published on: February 5, 2025
Info Edge, the parent company of Naukri.com, saw its stock price rise by 2.4%, reaching an intraday high of ₹7,889.55 per share on BSE after the company’s board approved a 1:5 stock split. The stock split will reduce the face value of each share from ₹10 to ₹2, aiming to increase liquidity and attract retail investors.
The record date for the split will be determined after shareholder approval. The company's market capitalization stood at ₹1,01,794.81 crore. In its Q3 update, Info Edge reported a 15.8% YoY growth in standalone billings for the quarter ended December 2024. Over the past year, Info Edge shares have gained 43.8%, outpacing the Sensex's 9.5% rise.
Published on: February 5, 2025
At the 8th Bengal Global Business Summit 2025, Mukesh Ambani announced that Reliance Industries would invest ₹50,000 crore in Bengal by the end of the decade, adding to their ₹50,000 crore commitment in the past decade.
The investments will focus on digital services, green energy, and retail, generating one lakh jobs in the state. RP-Sanjiv Goenka Group also revealed plans to invest ₹10,000 crore in sectors such as energy, healthcare, and education.
Simultaneously, Cashfree Payments raised $53 million in a funding round led by Krafton, aiming to enhance its cross-border payment offerings. Additionally, in corporate news, NSE Clearing faces a liquidity shortfall due to dues from BSE, while Welspun Corp reports a significant rise in net profit.
Published on: February 5, 2025
In its latest note, JM Financial has predicted that Zomato Ltd. and Jio Financial Services are poised to join the Nifty 50 index in the upcoming March 2025 rebalancing, while FMCG giant Britannia Industries and oil major BPCL could be excluded.
The changes, expected to be announced later in February 2025, will take effect from March 31, 2025. JM Financial projects that Zomato's inclusion could bring in passive inflows of $702 million, while Jio Financial Services could attract $404 million, totaling $1.11 billion in passive flows.
However, the exclusion of BPCL and Britannia may result in $240 million and $260 million in outflows, respectively, amounting to a combined $500 million in total. The rebalancing will reflect the average free-float market cap from August 1 to January 31.
Published on: February 5, 2025
On February 5, Sensex and Nifty lost momentum, ending the session lower due to a mix of domestic and global uncertainties. The Sensex closed down by 312 points at 78,271, while the Nifty fell 43 points to 23,696. FMCG stocks led the decline, while broader market indices outperformed, with BSE Midcap rising 0.7% and BSE Smallcap rising over 1%.
Liquidity-boosting measures by the RBI, such as OMOs and VRR auctions, have eased cash crunch, and expectations of a 25-basis-point rate cut may provide further support. On the global front, tariff uncertainty linked to President Trump’s recent announcements led to initial market turmoil, but the stance softened shortly after.
Despite challenges, optimism remained in sectors like energy, with oil refiners and energy stocks seeing gains. Investors are also eyeing Q3 results from major Nifty companies scheduled for February 6.
Published on: February 5, 2025
Dreamfly Innovations, a company focused on developing high power-density battery technology for drones, aviation, and aerospace, has successfully raised $1.4 million (Rs 12 crore) in its seed funding round.
The funding, led by Avaana Capital and supported by Sunicon Ventures and other investors, will help the startup scale its production, expand its team, and invest in research and development. As the global drone market is expected to reach $54 billion by 2025, India is poised to capture a significant share.
Dreamfly Innovations aims to address the challenges of limited drone component manufacturing in India by offering reliable, fire-resistant, and efficient thermal battery technologies. Its customers include major industry players like Tata Advanced Systems, Larsen & Toubro, and General Aeronautics.
Published on: February 5, 2025
Lemon Tree Hotels' shares surged by 4.9% on February 7, 2025, reaching an intraday high of Rs 154.8 after the company announced its robust Q3 earnings. The hospitality firm reported an 82% increase in consolidated net profit for the December 2024 quarter, amounting to Rs 79.9 crore, compared to Rs 43.8 crore last year.
Revenues for the quarter stood at Rs 355.2 crore, marking a 25% year-on-year growth. The company’s management remains optimistic about sustaining growth, focusing on expanding its management and franchised portfolio, and continuing renovations to improve hotel performance. Lemon Tree's stock has risen 5.3% over the past year, slightly trailing the Sensex’s 9.5% gain.
Published on: February 5, 2025
In an exclusive interview with Moneycontrol, Neelkanth Mishra, Chief Economist at Axis Bank, analyzed the Indian economy and markets post-Union Budget. He discussed the fiscal implications of tax cuts, the government's capex plans, and the challenges facing sectors like real estate and power.
While consumption could rise among high-income tax bracket individuals, the impact on overall growth remains uncertain due to global risks and domestic fiscal constraints. Mishra also highlighted the likelihood of a slow credit recovery and the importance of private-sector capex.
Looking ahead to 2025, he anticipates steady earnings growth but cautioned that market performance could face pressure due to global uncertainties and high equity supply.