Published on: February 4, 2025
On February 4, the Nifty Bank index surged by nearly 2%, reaching near the 50,100 mark as bank stocks experienced strong gains. IndusInd Bank emerged as the top performer, climbing 3.25%, followed by Kotak Mahindra Bank, which saw a 3% rise.
Other notable gainers included State Bank of India, Axis Bank, Canara Bank, and HDFC Bank. In contrast, shares of IDFC First Bank and AU Small Finance Bank faced slight declines.
Investors are eagerly awaiting the Reserve Bank of India's upcoming Monetary Policy Committee (MPC) meeting on February 7, where a 25 basis point rate cut is expected. Market experts anticipate further rate cuts in 2025, which could benefit the banking sector.
Published on: February 3, 2025
Equity benchmark indices BSE Sensex and NSE Nifty ended the last week with gains exceeding 1.5%, recovering from oversold territory following the Budget 2025 announcements. The Sensex and Nifty saw a 3% bounce from recent lows, closing the week at 77,506 and 23,482, respectively.
Looking ahead, stock market movement will be influenced by global developments, particularly the trade tensions sparked by US President Donald Trump’s recent tariff imposition on Canada, Mexico, and China, with retaliatory tariffs expected. Domestically, markets will also keep an eye on the RBI’s policy meeting later in the week, where analysts anticipate a potential 25 basis points rate cut.
For the week ahead, the BSE Sensex has support at 76,885 and 76,500, with resistance at 78,150 and 78,500. A breach of 78,150 could signal a further rally towards the 80,000 mark. On the Nifty, support is pegged at 23,268, while resistance levels are seen at 23,600 and 23,800. The market bias remains cautiously positive, provided the Nifty holds above 23,150, with potential for further upside if it breaks above 23,600.
Published on: February 3, 2025
Shares of UPL rallied as much as 5.32% on Monday, hitting a new 52-week high of Rs 636.45 following a rating upgrade by brokerage firm Investec. The firm raised UPL’s target price to Rs 700 from Rs 450, citing the company’s strong performance in Q3FY25 and expectations of sustained recovery in global demand. Investec’s ‘Buy’ rating indicates an upside potential of 15.83% from the previous closing price of Rs 604.30.
UPL reported a consolidated net profit of Rs 828 crore for Q3FY25, bouncing back from a loss of Rs 1,217 crore in the same period last year. The revenue for the quarter rose by 10.3% YoY to Rs 10,907 crore, driven by a 9% increase in volumes and a 5% rise in prices. UPL’s EBITDA saw a remarkable 420% YoY jump to Rs 2,163 crore, with margins expanding significantly to 19.8%.
The company's solid recovery, along with a focus on operational efficiency and reduced working capital, has instilled confidence in the market. Additionally, the recent Budget announcement, particularly the ‘Prime Minister Dhan-Dhaanya Krishi Yojana’, is expected to benefit agricultural productivity, providing a further boost to UPL’s growth prospects.
At 1:20 PM, UPL shares were trading 3.60% higher at Rs 626.05, outperforming the broader market.
Published on: February 3, 2025
Shares of Coal India saw a 3% decline in morning trade on Monday after the company released its production and offtake data for January 2025. Despite a slight drop in January production to 77.8 million tonnes (mt), a 0.8% decline from January 2024, the company reported strong growth in off-take volumes, which rose 2.2% year-on-year to 68.6mt.
For the period from April 2024 to January 2025, cumulative offtakes stood at 630.2mt, a 1.8% increase compared to the same period last year. The company continued to see solid demand from the power sector, which remains a key driver of growth. Analysts expect volumes to non-power producers to continue rising.
While the slight dip in production was a factor in the share price drop, Coal India’s overall performance remains positive, supported by strong e-auction volumes and profitability. Analysts continue to have a favorable outlook, citing ongoing coal-washer capacity expansion and diversification plans.
Published on: February 3, 2025
Indian metal stocks were hit hard on Monday, February 3, as the global trade war intensified following US President Donald Trump's announcement of new tariffs on trading partners, including China, Canada, and Mexico. The Nifty Metal index fell 3.6% in intraday trade, with major stocks like SAIL, JSW Steel, and Hindustan Copper seeing losses of up to 5.4%.
Trump's decision to impose a 25% tariff on goods from Canada and Mexico, alongside a 10% additional tariff on Chinese goods, has sparked retaliatory measures from these countries, further escalating trade tensions. The potential for a global trade war raises concerns over supply chain disruptions, inflation, and slower growth in metal demand.
As base metal prices dropped on the London Metal Exchange, experts warned that the global economy could face prolonged challenges, with higher tariffs potentially impacting growth, inflation, and metals markets. With China already under pressure due to its property sector issues, further stimulus is expected from Beijing to counter the economic fallout.
Published on: February 3, 2025
In a significant policy shift, the Indian government’s Budget 2025 marks a departure from the traditional focus on heavy infrastructure spending. Instead, policymakers are prioritizing stimulating consumer spending and domestic demand. A key move in this direction is the extension of the tax-free threshold to Rs 12.75 lakh for individual salaried taxpayers, putting an estimated Rs 1 trillion into the hands of middle-class households. This initiative is expected to boost consumption, benefiting sectors such as FMCG and durable goods.
The government aims to encourage private sector investment while enhancing agriculture and consumption growth. However, as the market absorbs the immediate effects of the budget, global economic factors, such as new tariffs imposed by US President Donald Trump, are causing uncertainty. The market has seen increased volatility, with the US dollar strengthening and global markets facing pressure.
While the budget has driven short-term market movements, all eyes are now on the RBI’s upcoming policy meeting on February 7, with investors eager for insights on interest rates and inflation. Indian equities are currently under pressure, but the market is poised for long-term growth as domestic economic indicators show signs of recovery.
Published on: February 3, 2025
Shares of state-owned oil marketing companies (OMCs) are under significant pressure, with declines of up to 7% in intra-day trading on Monday. Bharat Petroleum Corporation (BPCL), Indian Oil Corporation (IOC), and Hindustan Petroleum Corporation (HPCL) have all hit their respective 52-week lows, reflecting concerns over the FY26 budget’s impact. Analysts believe that OMCs will continue to face profitability challenges, as the budget failed to deliver the expected stimulus.
Despite an upward revision in the LPG subsidy for FY25 to Rs 14,700 crore, the FY26 budget allocation of Rs 12,100 crore for LPG subsidies is much lower than anticipated, which could further squeeze the margins of OMCs. Additionally, under-recoveries for LPG remained significant in the current fiscal year, and rising crude prices due to supply disruption fears are adding to the pressure.
However, Elara Securities India remains optimistic, reiterating a "Buy" recommendation on IOC and other OMCs, citing elevated integrated margins driven by strong retail fuel margins and expected higher long-term margins due to a projected Rs 6 trillion capex over the next five years. Despite recent stock corrections, analysts believe this long-term investment could pay off as the government focuses on energy transition via OMCs.
Published on: February 3, 2025
TVS Motor Company’s shares have risen by 7.74% over the past two days, driven by robust January 2025 sales, solid Q3 results, and a recovery in rural demand. On Monday, the stock hit an intraday high of Rs 2,647.70, up 3.52% for the day.
The company’s January sales reached 397,623 units, reflecting a 17% YoY increase, with strong growth in the two-wheeler segment (up 18%) and a 55% surge in electric vehicle (EV) sales. Domestic sales of two-wheelers grew by 10%, with scooters seeing a significant 29% increase. Exports were also robust, with a 46% rise in total exports and a 52% increase in two-wheeler exports.
TVS Motor's Q3 FY25 results showed a 4.2% YoY increase in net profit, reaching Rs 618.5 crore, while revenue grew 10.3% to Rs 9,097.1 crore. The company’s Ebitda surged 17%, pushing its Ebitda margin to a record 11.9%.
Analysts are bullish on the company, citing strong growth in the scooter segment, the recovery in rural markets, and the potential boost from the recent Budget. Emkay, Nuvama, Macquarie, and JPMorgan have all issued positive ratings, with target prices ranging from Rs 2,800 to Rs 3,130.
Published on: February 3, 2025
Divi's Laboratories announced a 64% year-on-year (YoY) increase in its net profit for the December quarter, reaching Rs 589 crore compared to Rs 358 crore in Q3 FY24. The company's revenue also saw a robust 25% growth, rising to Rs 2,319 crore from Rs 1,855 crore in the previous year.
Sequentially, the company's profit after tax (PAT) rose by 15%, up from Rs 510 crore in Q2 FY25, while revenue dipped slightly by 0.80% compared to the previous quarter. Profit before tax (PBT) for the quarter stood at Rs 726 crore, marking a significant improvement over Rs 489 crore in the year-ago period.
Divi's Laboratories also highlighted progress on its Kakinada Project (Unit-III), which commenced commercial operations in January 2025, with the rest of the project expected to be operational in six months.
The company has capitalized assets worth Rs 433 crore for the quarter and Rs 557 crore for the nine-month period, including Rs 418 crore for the Kakinada Project. Following the positive earnings, the company's shares jumped 3% to hit a high of Rs 5,780.05 on the NSE.
Published on: February 3, 2025
Divi's Laboratories reported a remarkable 65% increase in its profit after tax (PAT) for the December quarter, rising to Rs 589 crore from Rs 358 crore in the same period last year. The company's revenue also saw significant growth, reaching Rs 2,319 crore, up from Rs 1,855 crore year-on-year.
The company highlighted the commencement of commercial operations for part of its Kakinada Project (Unit-III) from January 1, 2025. The full Kakinada project is expected to be operational within the next six months. Divi's also capitalized assets worth Rs 433 crore during the quarter and Rs 557 crore for the nine-month period of the fiscal year, with Rs 418 crore attributed to the Kakinada Project.
In addition, the company's board has approved the re-appointment of Kiran S Divi as the Chief Executive Officer for another five years. Following the strong financial results, Divi's Laboratories shares rose by 3.69%, trading at Rs 5,829.75 per share on the BSE.
Published on: February 3, 2025
Cipla Ltd. has announced an infusion of ZAR 900 million (around Rs 415 crore) into its wholly owned subsidiary, Cipla Medpro South Africa Proprietary Ltd. The funds will be used to reduce inter-group debt and improve the capital structure of Cipla Medpro and its subsidiaries. The investment is expected to be completed by February 28, 2025.
Cipla Medpro is engaged in manufacturing, marketing, and distributing pharmaceutical products in South Africa. In its latest Q3 performance, Cipla posted impressive results, with a 49% year-on-year increase in consolidated net profit, reaching Rs 1,571 crore—surpassing analyst estimates of Rs 1,208 crore. The company’s revenue grew by 7.1% to Rs 7,073 crore, while earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose by 13.8% to Rs 1,989 crore.
Despite this strong financial performance, Cipla's stock fell 1.32% on Monday, closing at Rs 1,420.55. Analysts are generally optimistic, with 24 out of 37 recommending a ‘buy’ on the stock, and the 12-month price target suggesting a potential upside of 16.2%.
Published on: February 3, 2025
India's electronics sector stands to benefit in the short term from the United States' decision to impose a 10% tariff on Chinese imports, particularly in product categories like smartphones, laptops, and electronic devices. The new tariff is expected to boost global brands such as Apple and Motorola, which have increasingly used India as a key export base. However, industry leaders emphasize the need for comprehensive trade agreements with the US and improved infrastructure to sustain long-term growth.
Dixon Technologies’ Chairman, Sunil Vachani, highlighted India’s competitive edge in labour-intensive, high-value manufacturing, which positions the country as an attractive alternative to other hubs like Mexico. The Union Budget 2025 further supports this push, with the removal of import duties on key components used in mobile phone production, aimed at enhancing India’s manufacturing competitiveness.
With exports of mobile phones reaching a record $20.4 billion in 2024, led by Apple and Samsung, India is poised to increase its role in the global electronics supply chain. Apple plans to produce a significant portion of its iPhones locally within the next few years, strengthening its ties with Indian manufacturers and fostering the sector’s growth.
Published on: February 3, 2025
Stay updated with the latest movements in Tech Mahindra’s stock as we provide real-time data, analysis, and insights into its performance on February 3, 2025. As of 06:33:34 PM IST, Tech Mahindra's stock was priced at Rs 1654.7, showing a modest 0.51% increase for the day. The stock has seen fluctuations throughout the day, including a slight drop of 0.16% earlier in the session and a 4.45% decrease over the past week.
Key metrics for Tech Mahindra include a price-to-earnings ratio of 43.24, earnings per share of 38.27, and a market capitalization of Rs 161,959.9 crore. The stock is showing a stable investment profile with a six-month beta of 0.1656, highlighting its lower-risk nature.
Investors are closely watching the company's short-term price movements, including a recent negative breakout signal, as well as the impact of market sentiment shifts on Tech Mahindra's future performance. For more detailed insights on historical trends and expert market analysis, stay tuned to our liveblog for continuous updates.
Published on: February 3, 2025
Gopal Vittal, Vice-Chairman and Managing Director of Bharti Airtel, has been appointed as the Acting Chair of the GSMA Board, following the resignation of José María Álvarez-Pallete, Chairman and CEO of Telefónica.
In an official statement, Airtel confirmed that Vittal, who was recently re-elected as Deputy Chair of the GSMA, would now assume the acting leadership role. Vittal has previously served on the GSMA board for the 2019-2020 term.
The GSMA, which represents the global telecommunications industry, includes over 1,100 companies from across the telecom ecosystem, including service providers, handset makers, software companies, equipment providers, and internet firms, among others. Vittal’s appointment marks a significant shift in the leadership of the global telecom body.
Published on: February 3, 2025
Finance Minister Nirmala Sitharaman's Union Budget 2025 has garnered largely favorable responses from multinational investment banks, with tax cuts, a reform-driven agenda, and fiscal discipline being hailed as key drivers for India's economic growth. Despite the global economic challenges, analysts remain optimistic about India's medium-term growth, with a focus on investments, job creation, and consumption.
Goldman Sachs has praised the budget for balancing fiscal responsibility with growth measures, while Nomura highlighted the targeted approach to fiscal discipline and capital expenditure. However, concerns over government revenue generation and the potential impact of tax cuts on fiscal consolidation remain a point of caution.
JPMorgan noted that pressures on fiscal consolidation could lead to expenditure compression, potentially affecting infrastructure-related capex growth. HSBC expressed concerns over the performance of tax revenues, while BofA appreciated the balance between growth and fiscal prudence, but emphasized the importance of executing capex spending.
On a more critical note, Bernstein criticized the budget for lacking boldness, while Citi highlighted the positive impact on consumption demand, particularly in the auto sector, and anticipated benefits for companies like Maruti Suzuki and InterGlobe Aviation. Overall, the market's reaction to the budget will depend heavily on the government's ability to meet revenue targets and effectively execute its capex plans.