Published on: January 28, 2025
HDFC Securities has entered into a strategic partnership with KFin Technologies to enhance the accessibility and adoption of the National Pension System (NPS), the companies announced today in Mumbai.
This collaboration will combine HDFC Securities’ wide network of over 3.5 lakh subscribers and 2,700 corporate clients with KFintech’s advanced Central Recordkeeping Agency (CRA) platform. The partnership aims to simplify NPS management through real-time notifications and flexible transaction statement features.
The move comes on the heels of the Government of India's increase in corporate NPS tax benefits, further boosting the potential for growth in the sector. Despite the announcement, KFin Technologies' shares fell 4.9% on the NSE, trading at ₹1,076.30.
Published on: January 28, 2025
Shares of Central Depository Services Ltd. (CDSL) fell over 7% on Tuesday, marking a five-month low, after the company reported a drop in both profit and revenue for the quarter ending December. The 16% decline in CDSL's stock over the last three sessions was driven by a reduction in transaction fees and lower income from online data charges and other sources.
Despite stable issuer income, transaction charges income dropped significantly from Rs 83 crore to Rs 59 crore. The decrease in market participation due to geopolitical issues and regulatory changes, along with a reduction in the number of net accounts opened, further dampened sentiment.
At midday, CDSL shares were trading 5.7% lower at Rs 1,267.40, while analysts remain divided on the stock, with a mixed outlook based on a 12-month price target implying a 7.2% upside.
Published on: January 28, 2025
Indian stocks and bonds surged after the Reserve Bank of India (RBI) announced a $18 billion liquidity infusion aimed at easing the country's worst cash crunch in over a decade. The move raised hopes of an interest-rate cut as early as next week, with analysts forecasting a 25 basis point reduction at the RBI's Feb.7 policy meeting.
The boost in liquidity is expected to support India's slowing economy and enhance transmission of future rate cuts, driving optimism in sectors like banking, which saw stocks of ICICI Bank and HDFC Bank rise over 1.5%. However, the rupee fell and bond yields continued their downward trajectory.
The RBI's intervention comes amidst a rise in the banking system's liquidity deficit and increased global uncertainty. Investors are now watching closely for further liquidity measures, as experts suggest more actions may follow.
Additionally, the upcoming Union Budget 2025 and sectors like infrastructure, real estate, and FMCG are expected to garner investor attention in light of the latest economic trends.
Published on: January 28, 2025
While benchmark indices Nifty and Sensex posted strong gains on Tuesday, shares in the broader market, particularly smallcap and midcap stocks, faced significant pressure. The Nifty Smallcap 100 index saw a sharp decline of 3.5 percent in the morning, but managed a partial recovery to close 1.81 percent lower.
Similarly, the Nifty Midcap 100 index briefly rebounded after an early 900-point drop but ended the day 0.51 percent lower. J&K Bank emerged as the top gainer on the Smallcap index, rising 7 percent, while Balkrishna Industries and Bank of India led the Midcap index with nearly 5 percent gains. The Nifty Smallcap 250 index entered a bear market, dropping over 20 percent from its peak before recovering slightly to close at 15,135.
Despite some afternoon recovery, the broader market indices remain under pressure, driven by heightened volatility during the ongoing Q3 earnings season. Anish Tawakley of ICICI Prudential MF expressed caution on smallcap and midcap stocks, reflecting the overall uncertainty in the market.
Published on: January 28, 2025
Suzlon Energy's share price tumbled to a seven-month low during Tuesday's trading session, falling by 4.82% to Rs 47.81 per share before recovering slightly to Rs 48.78. This decline comes just ahead of the company's third-quarter earnings announcement, expected to show a consolidated net profit of Rs 350 crore and a revenue of Rs 2,855 crore for the October-December period of FY2025.
The company's operating profit is forecasted to rise to Rs 431 crore, with margins potentially reaching 15.16%. Despite this, Suzlon's stock has been on a downward trajectory for the past six days, with no specific trigger for the drop.
Analysts remain generally positive on the stock, with four out of six maintaining a 'buy' rating, and a 57.6% upside potential according to the average 12-month price target.
Published on: January 28, 2025
The Sri Lankan government has initiated discussions with the Adani Group to reduce the cost of power from two planned wind power projects in the island nation’s northern province. This move comes after the U.S. accused Adani executives, including founder Gautam Adani, of involvement in a bribery scheme related to securing power contracts. Adani has denied these allegations.
Sri Lanka aims to lower the previously proposed price of $0.08 per kilowatt-hour (kWh) to around $0.06 per kWh. Cabinet spokesman Nalinda Jayatissa confirmed that talks have already begun. Adani Green Energy is set to invest $442 million in building two wind power stations, part of a broader $1 billion commitment to Sri Lanka’s green energy sector.
Despite concerns raised by the U.S. allegations, Adani Group has maintained its commitment to the project, emphasizing that the tariff review by the Sri Lankan government is a standard process with a new administration.
Published on: January 28, 2025
Benchmark stock indices, Sensex and Nifty, broke their two-day losing streak on Tuesday as investors viewed the recent market selloff as exaggerated. The gains were primarily driven by banking stocks, with Axis Bank leading the way with a 1.74% jump.
Tata Steel also saw positive movement, despite reporting a 36% drop in Q3 PAT, which nonetheless exceeded street expectations. While Wall Street ended mixed after a strong rally and the dollar index retreated from recent highs, concerns over muted earnings, fears of a US-China trade conflict, and a slowing Chinese economy linger.
Investors are now keenly awaiting the two-day US Federal Open Market Committee meeting and the Union Budget announcement on February 1. Experts, like V K Vijayakumar from Geojit Financial Services, suggest that the Indian market, which is trading at average valuations, presents a potential opportunity for investors to buy high-quality stocks as the market is likely set for a rebound.
Published on: January 28, 2025
The third-quarter earnings season for FY2024-25 is in full swing, with leading companies from various sectors releasing their Q3 financial results. Among the key performers, Bajaj Auto reported an 8.02% rise in profit, driven by strong motorcycle sales and electric vehicle growth.
Hyundai Motor India saw a decline in profit by 18.56%, primarily due to slower market conditions, while Cipla's profit surged 48.74%, supported by robust growth across global markets. Meanwhile, Exide Industries reported a 21.83% drop in profit, citing a slowdown in government capex and weaker demand from automotive OEMs.
Companies like Suzlon Energy, TTK Prestige, and Jubilant Ingrevia also posted mixed results, with some seeing significant growth while others faced challenges. As the earnings season unfolds, analysts anticipate modest performance across sectors, with risks of EPS cuts for many companies.
Published on: January 28, 2025
Emami shares climbed 4.7% on Tuesday, reaching an intraday high of Rs 560.7 per share, following the company’s strong Q3 results and announcement of a dividend payout. As of 10:53 AM, the stock was trading at Rs 541.5 per share, outpacing the broader market.
Emami reported a 7% year-on-year increase in consolidated net profit, reaching Rs 279 crore for the quarter. Revenue also grew 5.3% to Rs 1,049 crore. The company’s key brands, including Healthcare and BoroPlus, showed strong growth despite mild winters.
Navratna and the Pain Management portfolio delivered steady results. Emami also declared a dividend of Rs 4 per equity share, equating to a 400% payout, with the record date set for February 4, 2025.
Despite challenges posed by food inflation and liquidity constraints, the company noted resilience in rural demand, driven by favorable monsoon conditions. Over the past year, Emami shares have outperformed the Sensex, rising 7%, compared to the Sensex's 4.7% increase.
Published on: January 28, 2025
Vedanta has announced that its ambitious Rs 1 trillion aluminium refinery and smelter project will be set up in Rayagada district, Odisha. The project will feature a 6 MTPA alumina refinery and a 3 MTPA green aluminium plant, with the first phase of the project expected to be commissioned in the next three years.
Chairman Anil Agarwal confirmed that the Sijimali bauxite mine in Rayagada will be developed for exploration to support the refinery. The company had previously disclosed its plans to invest Rs 1 trillion in Odisha for this project, but the location had remained undisclosed.
Vedanta has already invested over Rs 1 trillion in Odisha and operates a 1.8 MTPA smelter in Jharsuguda and a 3.5 MTPA alumina refinery in Lanjigarh, in addition to mining operations in Jajpur and Dhenkanal.
Agarwal also addressed the company's proposed university in Odisha, which is currently stalled due to a Supreme Court ruling canceling land acquisition proceedings. Despite the setback, he expressed his intention to set up a university with an investment of Rs 6,000 to Rs 10,000 crore, reaffirming his commitment to development in the state.
Published on: January 28, 2025
Shares of TVS Motor Company surged 6.64% to Rs 2,375 on January 28, 2025, after the company reported strong financial results for Q3 FY25. The company's net profit increased by 4.24% to Rs 618.48 crore, while operating revenue grew 10% to Rs 9,097 crore.
The company's EBITDA saw a robust 17% growth, reaching Rs 1,081 crore, with its operating margin reaching an all-time high of 11.9%. TVS Motor's overall two-wheeler and three-wheeler sales, including exports, rose by 10%, reaching 12.12 lakh units. Notably, electric scooter sales soared by 57%, marking significant growth in the EV segment.
Additionally, TVS Motor announced the approval of a scheme for the amalgamation of its wholly owned subsidiary, Sundaram Auto Components. The company continues to see strong momentum in the market, with shares trading 5% higher at Rs 2,338.10.
Published on: January 28, 2025
Bank of Baroda is expected to report a weak set of results for the October-December (Q3) quarter of FY25, with analysts forecasting either flat or an 18% year-on-year decline in profit. The anticipated decline is attributed to lower Other Income and a significant rise in provisions.
Analysts are divided on the extent of the impact. Nomura forecasts a 2% year-on-year drop in net profit to Rs 4,490 crore, while Citi predicts a slight 1% rise to Rs 4,620 crore. On the other hand, Prabhudas Lilladher expects an 18% drop due to a sharp rise in loan-loss provisions.
Key metrics like NII are expected to show moderate growth, with projections of around 7% YoY. Bank of Baroda's net interest margin (NIM) may face pressure, partly due to competitive pricing and a shift towards secured lending in retail.
The bank will release its Q3FY25 results on Thursday, January 30, 2025, and analysts will closely monitor the outlook for loan and deposit growth, as well as asset quality trends. Key expectations also include guidance on recoveries, slippages, and the impact of provisions on overall profitability.
Published on: January 28, 2025
Bajaj Auto Ltd posted an 8% year-on-year increase in consolidated net profit for Q3 FY25, reaching Rs 2,196 crore, exceeding analysts' expectations. The company's revenue rose 8% to Rs 13,169 crore, driven by robust exports, strong green energy portfolio, and record spares sales.
The domestic market also saw a boost, with all-time high retail volumes during the festive season. Electric vehicle (EV) sales significantly contributed to the strong performance, with the EV segment delivering approximately 100,000 units. The company reported a notable shift in the EV segment, turning marginally profitable compared to losses in the previous year.
Bajaj Auto's market share in electric two-wheelers and three-wheelers saw substantial growth, while exports continued their recovery for the fourth consecutive quarter. Despite the positive results, the company faced challenges with inventory recalibration in the domestic market.
Published on: January 27, 2025
TVS Motor Company is set to announce its Q3FY25 financial results on January 28, 2025. Analysts are anticipating a healthy year-on-year revenue growth of 10-11%, driven by strong performance in the two-wheeler (2W) segment and better realisations.
Expected revenue for the quarter is around Rs 9,118-9,152 crore, with adjusted PAT estimated at Rs 645-660 crore, reflecting robust operational execution and demand. Analysts predict a 13.1% Y-o-Y increase in EBITDA and a positive margin expansion, supported by a favourable production mix.
Despite margin pressure in the sector, TVS Motor’s performance stands out, with revenue growth and an expected EBITDA margin of 11.5-11.7%.
Published on: January 27, 2025
Tata Motors shares continued their downward trend on Monday, slipping 2.83% to settle at Rs 713.15, marking a 52-week low. The stock has seen a significant correction of 36.54% over the past six months. Analysts are suggesting a bleak technical outlook for the stock, with immediate support levels seen around Rs 700-680.
The carmaker is set to announce its Q3 FY25 results on January 29, 2025. Despite the current pain in the stock price, market experts recommend holding Tata Motors for the long term, advising investors to average the stock at lower levels around Rs 650.
The stock is currently trading below its key moving averages, signaling potential further downward pressure in the short term.