Big Selloff Hits Tata
- 29th April 2025
Aaj Ka Bazaar
The US market fluctuated before ending mixed overnight, and gold advanced as investors looked for signs of progress in tariff negotiations at the top of an eventful week of corporate earnings and economic data. Asian markets were broadly higher this morning as senior Chinese officials outlined plans to support jobs and help exporters and hinted at the possibility of more stimulus. China’s top diplomat warned countries against caving into US tariff threats after reports emerged that Asian economies like South Korea, Japan, and India are taking the lead in trade talks with Trump’s administration. Domestic markets are anticipated to open flat to positive on Tuesday due to mixed global cues, despite weak IIP data and varied corporate results keeping pressure on the market. Official data revealed that India’s industrial production rose 3% YoY in March, faster than the revised 2.7% growth in February. The expected increase was 3.3%. The overall growth in March was mainly due to the developments in the manufacturing and electricity segments.
Markets Around Us
BSE Sensex – 80,594.07 (0.47%)
Nifty 50 – 24,445.30 (0.48%)
Bank Nifty – 55,815.95 (0.69%)
Dow Jones – 40,287.32 (-0.42%)
Nasdaq – 17,366.13 (-0.10%)
FTSE – 8,417.34 (0.02%)
Nikkei 225 – 35,839.99 (0.00%)
Hang Seng – 22,020.68 (0.21%)
Sector: IT Services
Tata Tech Falls on TPG Stake Sale
Tata Technologies shares dropped 6% to an intraday low of ₹663.45 on Tuesday after reports that TPG Rise Climate sold a 3.95% stake through a bulk deal. The U.S.-based investor likely offloaded around 1.6 crore shares worth ₹1,094 crore at ₹683 per share, offering a discount of up to 5% to the current market price. As of March 2025, TPG held a 6.01% stake, and post-sale, the remaining shares will have a 60-day lock-in. BofA Securities is handling the deal, but official confirmation is still awaited. This comes shortly after Tata Technologies posted strong Q4 results with a 20% year-on-year profit jump to ₹189 crore, despite a slight revenue dip.
Why it Matters:
TPG’s bulk stake sale in Tata Technologies has raised concerns among investors, putting pressure on the stock despite strong Q4 results. The discounted deal suggests a cautious outlook from institutional players. Combined with bearish analyst ratings, this could affect near-term sentiment and valuation.
NIFTY 50 GAINERS
BEL – 311.45 (2.10%)
TATAMOTORS – 676.50 (1.25%)
TRENT– 5264.00 (1.05%)
NIFTY 50 LOSERS
NESTLEIND – 2360.40 (-1.90%)
DRREDDY – 1178.30 (-1.70%)
SUNPHARMA – 1812.60 (-1.57)
Sector : Pharma
Aurobindo Shares Dip After kakinada fire
Aurobindo Pharma shares dropped over 3% on April 29 after a fire broke out at its Penicillin-G manufacturing facility in Kakinada, Andhra Pradesh. The fire occurred on April 27 near the coal crusher area and damaged some supporting equipment, though the main plant infrastructure was not affected. Thankfully, no injuries were reported. As a result, the plant’s operations will be paused for about 20 to 25 days to replace the damaged equipment. The company stated that this incident is unlikely to have a major impact on its overall operations or financials and that the facility is fully insured. Aurobindo is still assessing the full extent of the damage. At 10 am, the stock was trading at ₹1,211, down 3% on the BSE. The stock’s 52-week range is between ₹1,010 and ₹1,592, and its current market value stands at ₹70,400 crore. The fire is believed to have started due to coal self-ignition.
Why it Matters:
Aurobindo Pharma’s shares fell after a fire incident paused operations at its Kakinada plant for up to 25 days. While the core infrastructure remains intact and the financial impact is expected to be minimal, the market reacted quickly. This reflects investor caution around operational risks, even when disruptions seem manageable.
Around the World
Most Asian stock markets moved higher on Tuesday, led by gains in auto stocks after the U.S. announced it would ease some auto tariffs, especially on foreign parts used in U.S.-made cars. This helped lift shares of automakers like NIO and Geely in Hong Kong and Hyundai in South Korea. Japan’s markets were closed for a holiday, though Nikkei futures rose 0.3%, suggesting gains when trading resumes. Investors are also watching the upcoming Bank of Japan policy meeting, where interest rates are expected to stay unchanged despite strong inflation. Meanwhile, China’s markets slipped slightly, with the Shanghai Composite down 0.1%, as Beijing held back on announcing new stimulus measures even amid continued U.S.-China trade tensions. While the U.S. signaled ongoing contact with China, no fresh progress on trade talks has been confirmed. Investors now await key Chinese manufacturing data on Wednesday for insights into the impact of tariffs on factory activity.
Option Traders Corner
Max Pain
Nifty 50 – 24300
Bank Nifty – 54600
Nifty 50 – 24245 (Pivot)
Support – 24,136, 23,944, 23,835
Resistance – 24,437, 24,546, 24,738
Bank Nifty – 55197 (Pivot)
Support – 54,817, 54,202, 53,822
Resistance – 55,812, 56,192, 56,807
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