Published on: January 22, 2025
US markets experienced volatility as President Donald Trump’s initial policy decisions on tariffs deviated from the more extreme expectations investors had feared. Despite his past promises of steep tariffs, Trump refrained from immediate actions, instead ordering a review of the US trade deficit.
His later remarks about imposing 25% tariffs on Mexico and Canada led to a brief market rebound, as the dollar regained some strength. Global markets reacted cautiously, with Chinese markets stabilizing and the Mexican peso and Canadian dollar recovering. Meanwhile, Trump's stance on reversing green energy policies has negatively affected battery and wind energy stocks.
Despite the unpredictability, some investors, particularly active managers, see opportunities in the current environment, even as the broader impact of protectionist policies remains unclear. The ongoing uncertainty is contributing to fluctuating interest rates and volatility in global currencies, including the Canadian dollar and Mexican peso, as markets await more concrete details of Trump's trade and economic strategies.
Published on: January 22, 2025
The inauguration of Donald Trump as the 47th President sparked a strong market reaction, with Wall Street closing higher despite concerns over tariffs. The Dow surged 500 points while the Nasdaq rose 0.6%, though a drop in Apple shares weighed on tech stocks.
Trump's tariff rhetoric has kept global markets uncertain, especially after comments targeting Mexico, Canada, and China. On Dalal Street, volatility continued as Indian markets slid to a six-month low amid global uncertainties. Meanwhile, at the World Economic Forum in Davos, Maharashtra secured investments worth Rs 4.99 lakh crore, which are expected to generate 92,000 jobs.
Additionally, India’s government plans to cooperate with the US to address illegal immigration, with reports identifying around 18,000 Indian migrants in the US for deportation. Key earnings from Hindustan Unilever, HDFC Bank, and Bharat Petroleum are also anticipated today.
Published on: January 22, 2025
Oil and Natural Gas Corporation Limited (ONGC) has received a tax demand of ₹6.72 crore from the GST authorities, which includes IGST recovery, interest, and penalties for the months of July, October, and November 2017.
The demand, issued under the Central Goods and Services Tax (CGST) Act, highlights discrepancies in ONGC's IGST payments.
The company disputes the demand, explaining that the delay was due to technical issues with the Offshore GST Registration, though it asserts that the delay did not significantly affect its operations. The penalty imposed is equal to the tax amount, emphasizing the serious compliance issues identified by the authorities.
Published on: January 22, 2025
JSW Renew Energy Five Ltd, a subsidiary of JSW Energy, has moved the Appellate Tribunal for Electricity (Aptel) to challenge a recent ruling by the Central Electricity Regulatory Commission (CERC).
The CERC had declined to adopt a tariff of ₹10.83 lakh per megawatt per month for JSW's 500-megawatt Battery Energy Storage System (BESS) pilot project, which was discovered via a reverse auction in 2022. CERC argued that the tariff was too high compared to the rates discovered in later auctions.
JSW Energy claims this decision undermines the sanctity of the bidding process and that only the rates at the time of bid submission should be considered. The company seeks a reversal of CERC's decision and adoption of the original tariff.
Published on: January 22, 2025
Ten Adani Group companies are scheduled to release their financial results for the October-December quarter between January 23 and 30. Key companies including Adani Enterprises, Adani Ports, Adani Energy Solutions, and ACC Ltd.
will unveil their earnings along with other important announcements like dividends and investor presentations. Notably, Adani Energy Solutions is expected to report a revenue of ₹5,280 crore and a net profit of ₹2,322 crore, while ACC Ltd. is estimated to post a revenue of ₹4,948 crore with a profit of ₹346 crore.
The bulk of the group’s earnings will come on January 27 and 29, with Adani Enterprises and Adani Ports releasing their results on January 30.
Published on: January 22, 2025
Hindustan Unilever Ltd. (HUL) has acquired a 90.5% stake in Jaipur-based direct-to-consumer (D2C) beauty brand Minimalist for a pre-money enterprise value of Rs 2,955 crore. The remaining 9.5% stake will be acquired from Minimalist’s founders, Rahul and Mohit Yadav, within two years.
The founders will continue to manage the business for the next two years as part of the agreement. Minimalist, founded in 2018, has rapidly grown in the skin, body, and hair care segments and is valued at around Rs 2,000-3,000 crore.
HUL’s acquisition aligns with its strategy to focus on premium, high-margin beauty and personal care products, enhancing its portfolio in the competitive and rapidly expanding Indian beauty market. The deal is expected to close by the June quarter of 2025, subject to regulatory approvals.
Published on: January 22, 2025
The Nifty and Sensex rebounded from yesterday's significant losses to trade in the green on January 22, driven by a boost in bank and FMCG stocks. The market was supported by Wall Street’s rally, though caution persisted in the metal and PSU banking sectors, tempering the overall recovery.
The broader market indices, however, underperformed the benchmark indices, with mid- and small-cap stocks continuing to face resistance. FMCG, IT, and pharma sectors led the gains, with stocks like Infosys, Wipro, and HCL Tech advancing. The Nifty Metal index, however, dipped by 1%, with Tata Steel and Vedanta among the top losers.
Market experts caution that despite the brief rally, the market remains in a corrective phase, with selling pressure likely to continue unless sustained upside momentum is seen. Investors are also awaiting India's upcoming budget, which could provide further direction for market sentiment.
Published on: January 22, 2025
Hindustan Unilever Ltd. (HUL) has announced plans to list its demerged ice cream business, Kwality Wall’s, within a year. The company’s board approved the demerger, allowing shareholders to receive one share of the newly formed ice cream entity for every share of HUL.
The demerged entity is expected to be listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) by the March quarter of fiscal 2026. The ice cream business, which includes popular brands such as Kwality Wall's, Cornetto, and Magnum, posted a flat revenue growth in the December quarter, with a turnover of Rs 1,595 crore in FY24.
HUL emphasized that the separation will enable the ice cream business to gain greater focus, flexibility, and strategic independence to unlock its full growth potential. The move follows Unilever's global decision to separate its ice cream division, and the demerger is still subject to regulatory approvals and shareholder consent.
Published on: January 22, 2025
Hindustan Unilever Limited (HUL) announced the demerger of its ice cream business, Kwality Wall’s (India) Ltd (KWIL), which will soon be listed as an independent entity. In a move aimed at unlocking value, HUL shareholders will receive one share of KWIL for every share of HUL they own.
This strategic demerger is part of HUL's effort to streamline operations, offering the ice cream business more focus and flexibility to capture growth in India’s rapidly expanding ice cream market.
CEO Rohit Jawa emphasized that the ice cream category, with its popular brands such as Kwality Wall's, Cornetto, and Magnum, will continue benefiting from HUL’s global expertise and innovation while pursuing its growth objectives independently.
The ice cream business generated a turnover of Rs 1,595 crore in FY24, accounting for 2.7% of HUL’s total revenue.
Published on: January 22, 2025
On October 22, 2024, the equity markets saw a significant decline, with both Sensex and Nifty falling over 1%.
Sensex dropped by 930.55 points (1.15%) to close at 80,220.72, while Nifty tumbled by 309 points (1.25%) to settle at 24,472.10. The sell-off was driven by substantial foreign institutional investor outflows and sluggish global markets.
Top Gainers: ICICI Bank, Nestle, and Infosys, which saw gains despite the broader market slump.
Top Laggards: Mahindra & Mahindra, State Bank of India, and Tata Steel, which were among the major decliners in the Sensex pack.
Foreign institutional investors sold equities worth ₹2,261.83 crore, while domestic institutional investors bought ₹3,225.91 crore worth of shares, indicating strong domestic support in a generally negative market environment.
In corporate news, Zomato reported a ₹421 crore net profit for Q2, marking a significant year-on-year improvement, but its shares declined by 3.44%. Meanwhile, Hyundai Motor India's IPO had a lukewarm debut, closing 7% below its issue price.
Commodities saw mixed trends, with Brent Crude rising by 0.61% to USD 74.74 per barrel, while gold prices remained a focal point as festive demand was expected to keep prices elevated, possibly nearing USD 3000/Oz in the near future.
These factors combined to create a cautious outlook for the Indian stock market, with investors focusing on global trends and domestic earnings performance amidst the ongoing volatility.
Published on: January 22, 2025
Indian equities experienced significant volatility on January 22, with the benchmark indices shedding early gains. The Sensex dropped over 300 points from its day’s high, and the Nifty remained below the 23,050 mark due to sharp sell-offs in midcap and smallcap stocks.
At noon, the Sensex was up 109.33 points (0.14%) at 75,947.69, while the Nifty was nearly flat at 23,026.80. Midcap and smallcap indices underperformed, tumbling by 1.9% and 2.2%, respectively. The market breadth was weak, with most sectors closing in the red. The Nifty Realty sector lost 4% for the second consecutive session, while PSU Bank and Metal stocks also saw declines.
However, IT stocks, led by Infosys, TCS, Tech Mahindra, and Wipro, offered a bright spot. Analysts are cautious, expecting elevated volatility, and technical experts suggest that the Nifty's support at 22,900 remains fragile, with possible declines to 22,800-22,700 if breached. Investors are advised to focus on stock-specific strategies amid ongoing market uncertainties.
Published on: January 22, 2025
Shares of Reliance Naval & Engg, United Polyfab Gujarat, Navkar Builders, Cubex Tubings, and Super Spinning surged to fresh 52-week highs at 10:19 AM (IST) on the NSE, as the benchmark Nifty index rose by 67.5 points, reaching 23,092.15. Bluechip stocks led the rally, with Wipro, TCS, Infosys, Sun Pharma, and Tech Mahindra among the top gainers.
However, stocks like Cyient DLM, IndiaMART, Tanla Platforms, and Noida Toll Bridge Co touched their fresh 52-week lows. While 24 Nifty 50 stocks traded in the green, 26 were in the red.
Sectoral movements showed buying interest in General, IT Enabled Services, Auto, and Beverages - Alcoholic, while sectors such as Textiles, Paper, Defence, and Ferrous Metals saw selling pressure. The BSE Sensex was up by 345.3 points at 76,183.66 at the same time.
Published on: January 20, 2025
Tata Motors will continue investing approximately Rs 2,000 crore annually towards the development of new commercial vehicles and capital equipment, with a strong focus on sustainable mobility solutions. The company is exploring various technologies, including battery electric, fuel cell electric, hydrogen internal combustion engines (H2 ICE), and alternative fuels like CNG, LNG, and ethanol.
Tata Motors' Executive Director, Girish Wagh, shared that over 40% of this investment will go towards advanced technologies such as electrification, ADAS (advanced driver-assistance system), and connected vehicle platforms. At the Bharat Mobility Global Expo 2025, Tata Motors showcased a diverse range of commercial vehicles, emphasizing its commitment to sustainability.
The company is working on solutions for both light-duty and heavy-duty vehicles, with battery electric solutions focused on short-range applications and hydrogen technology targeted for long-haul transportation.
Tata Motors also announced a brand repositioning for its commercial vehicles division to align with changing customer expectations, particularly among India's younger, more aspirational population. The company's new value proposition, "Better Always," reflects its commitment to continuous improvement, growth, and technological innovation.
Published on: January 20, 2025
The Adani Group, led by Gautam Adani, has enlisted two prominent US law firms, Kirkland & Ellis and Quinn Emanuel Urquhart & Sullivan LLP, to defend itself against bribery charges in the United States. The charges, unsealed by the US Attorney’s Office in Brooklyn, accuse Gautam Adani, Sagar Adani, and Vneet Jaain of conspiring to commit securities fraud and paying over $250 million in bribes to Indian government officials in exchange for solar energy contracts.
The indictment alleges that the bribes were used to mislead US investors and banks to secure billions of dollars. In a parallel legal action, the US Securities and Exchange Commission (SEC) has also charged Gautam Adani, Sagar Adani, and Cyril Cabanes with involvement in the massive bribery scheme under the Foreign Corrupt Practices Act (FCPA).
The SEC claims the Adani family orchestrated the scheme to secure energy deals at above-market rates, benefiting Adani Green and Azure Power. Both law firms, known for handling high-profile litigation, will represent the Adani Group in the ongoing legal battle. Meanwhile, Adani Green is expected to release its third-quarter results on January 23.
Published on: January 20, 2025
Indian Railway Finance Corporation (IRFC) reported a lukewarm performance for Q3 FY25, with a 2% year-on-year (YoY) increase in profit and flat revenue growth. The company's profit for the quarter stood at ₹1,630.66 crore, up 1.98% from ₹1,598.93 crore in Q3 FY24, while revenue from operations reached ₹6,763.43 crore, showing only a slight increase of 0.4% from the previous year. On a sequential basis, revenue dipped marginally from ₹6,899.34 crore in Q2 FY25.
IRFC’s shares ended the trading day flat at ₹146.50, a modest gain of 0.17%. Over the past six months, the stock has declined by over 28%, though it has seen a significant rise of over 16% in the past year, with multibagger returns of more than 340% in the last two years.
For the nine months ending December 2024, IRFC reported a slight increase in both profit and revenue, with PAT rising to ₹4,820.13 crore compared to ₹4,694.78 crore last year, and revenue coming in at ₹20,428 crore, up from ₹20,171.48 crore.
The company also signed a lease agreement with NTPC for 8 BOBR rakes worth ₹250 crore, marking another step in its ongoing financing activities. Additionally, IRFC has paid eight dividends since February 2021, with a dividend yield of 1.02% over the past year.