BEL Secures ₹593 Crore Deal
- 03rd April 2025
Aaj Ka Bazaar
The US equities posted modest gains, with all three major indices closing in positive territory before the US President’s announcement of reciprocal tariffs. The new measures impose a 10% baseline duty on all imports, with higher rates for key trading partners. Indian exports to the US will face a 26% tariff, while Chinese imports will be subject to a 34% duty. Goods from the European Union, the United Kingdom, and other select nations are also targeted with increased levies. Following the announcement, the US futures market saw sharp declines, with the Dow Jones Industrial Average dropping over 2%, the S&P 500 losing more than 3%, and the Nasdaq sliding by approximately 4%. The ripple effect was felt across Asian markets, where the Nikkei opened in negative territory and extended losses due to tariff concerns, while the Hang Seng also struggled as investors weighed the economic impact. Domestic markets are expected to follow global trends, with investor sentiment likely dampened by the tariff measures. Amidst the jitters, Pharma sector is likely to outperform the indices today as exceptions made by the US president on pharmaceutical imports will positively impact the Indian pharma companies.
Markets Around Us
BSE Sensex – 76,180.52 (-0.57%)
Nifty 50 – 23,233.00 (-0.43%)
Bank Nifty – 51,113.85 (-0.46%)
Dow Jones – 41,378.16 (-2.01%)
Nasdaq – 17,601.05 (0.87%)
FTSE – 8,608.48 (-0.31%)
Nikkei 225 – 34,401.91 (-3.67%)
Hang Seng – 22,808.13 (-1.68%)
Sector: Aerospace & Defense
BEL Signs ₹593 Cr IAF Contract Deal
Bharat Electronics (BEL) shares are expected to stay in focus on April 3 after the company signed a ₹593.22 crore contract with the Indian Air Force for maintenance services of the Akash Missile System. In addition, BEL has concluded talks for securing orders worth ₹5,000 crore. For FY24-25, the company recorded a 16% rise in turnover, reaching ₹23,000 crore, including export sales of $106 million. In March alone, BEL received orders worth ₹2,463 crore for Ashwini Radars and additional orders worth ₹2,805 crore. Over the past year, the stock has gained more than 27%, with a 52-week high of ₹340.35 and a low of ₹218.30. It currently trades 17% below its peak and 29% above its lowest level. The company’s market cap is ₹2.06 lakh crore. Traders and young investors alike are keeping an eye on BEL, given its strong order book and steady financial growth.
Why it Matters:
Bharat Electronics’ new ₹593 crore deal with the Indian Air Force adds to its strong order pipeline, boosting revenue visibility. With ₹5,000 crore worth of additional orders under negotiation, the company is set for robust growth.
NIFTY 50 GAINERS
DR REDDYS LABS – 1212.00 (5.39%)
CIPLA – 1514.10 (4.25%)
NTPC – 356.35 (1.31%)
NIFTY 50 LOSERS
TCS – 3452.65 (-2.58%)
BAJAJ AUTO– 7878.70 (-2.41%)
INFOSYS – 1534.65 (-2.39%)
Sector : Compressors, Pumps & Diesel Engines
Kirloskar Oil wins Defence Ministry order
Kirloskar Oil Engines shares may extend gains for the third straight session on April 3 after securing a ₹270 crore order from the Defence Ministry. The order is for designing and developing a 6MW medium-speed marine diesel engine under the Make-I scheme, with 70% funding from the government. The engine, to be developed in-house with over 50% indigenous content, will be used for propulsion and power generation on Indian Navy and Coast Guard ships. This project also allows the company to scale engine designs from 3MW to 10MW, opening doors for future defence opportunities. Despite a 30% drop in the last three months, the recent order win has renewed investor interest. The stock is currently trading 49.7% below its 52-week high of ₹1,450 and 34% above its 52-week low of ₹544.15. With a market cap of ₹10,586 crore, this order strengthens Kirloskar’s positioning in India’s defence manufacturing space.
Why it Matters:
Kirloskar Oil’s ₹270 crore order from the Defence Ministry is a significant boost, positioning the company in the high-potential marine engine segment. This aligns with India’s Make-I initiative, promoting self-reliance in defence manufacturing. The project also opens doors to long-term partnerships with the Indian Navy and Coast Guard, enhancing future growth prospects.
Around the World
Asian stock markets fell sharply on Thursday after U.S. President Donald Trump announced a 10% tariff on all imports starting April 5, 2025, along with higher tariffs on countries with trade barriers against the U.S. Japan was hit hardest, with the Nikkei falling nearly 5% due to a 25% tariff on autos and parts, which make up a major chunk of its exports. Other affected countries include China (54% tariff), Vietnam (46%), Taiwan (32%), India (26%), and the EU (20%). These tariffs raise concerns about slower export growth and weaker earnings for companies in Asia. Japanese automakers like Toyota and Honda may face higher costs and falling demand. China’s markets were slightly down despite better-than-expected services data, while Australia’s trade balance dropped to a four-year low. South Korea, Hong Kong, and other Asian indices also declined, and Nifty 50 futures in India slipped 0.2% as investors braced for global trade tensions.
Option Traders Corner
Max Pain
Nifty 50 – 23250
Bank Nifty – 51400
Nifty 50 – 23280 (Pivot)
Support – 23,210, 23,088, 23,018
Resistance – 23,402, 23,471, 23,593
Bank Nifty – 51220 (Pivot)
Support – 51,036, 50,724, 50,540
Resistance – 51,532, 51,716, 52,027
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