Strong Quarter for L&T
- 09th May 2025
Aaj Ka Bazaar
US stocks ended on a positive note on Thursday as the investors cheered a new trade agreement between US and Britain, and signaled traiffs on Chinese goods may fall if the talks go well. Following this development Aisan markets inched higher. Domestically Indian benchmarks are estimated to open lower due to escalating geopolitical tension between India and Pakistan. In stock specific news, Lupin is expected to remain in focus as the company received U.S. drug regulator’s approval for Raltegravir tablets, used to treat HIV-1 infection in adults.
Markets Around Us
BSE Sensex – 80,697.58 (-0.06%)
Nifty 50 – 24,097.65 (-0.73%)
Bank Nifty – 53,917.60 (-0.82%)
Dow Jones – 41,408.90 (0.09%)
Nasdaq – 17,928.14 (1.07%)
FTSE – 8,531.61 (-0.32%)
Nikkei 225 – 37,430.55 (1.36%)
Hang Seng – 22,749.48 (-0.12%)
Sector: Civil Construction
L&T Q4 Delivers strong growth
Larsen & Toubro (L&T) delivered a strong operating and financial performance during the quarter, positioning itself as a resilient player in India’s infrastructure and engineering space. Although the company did not exceed street estimates, its robust order book and high order inflows reflect operational strength and bode well for future growth. L&T stands to benefit from the government’s continued push towards infrastructure development and economic growth. The management remains cautiously optimistic, citing India’s resilient macro landscape, government capex, and public-private investment traction in energy transition and real estate as key growth drivers. The company also emphasized prudent capital allocation and liquidity management. It has been performing well with improved operational efficiency and sustained digital adoption. Its strong near term order prospects and confidence in maintaining growth momentum, driven by domestic infrastructure momentum and global energy transitions, position it for continued success in the coming, as Otsuka’s exclusivity comes to an end. The company will enjoy a 180-day sole generic exclusivity, potentially extending further, and is expected to remain the only generic player for most of FY26.
Why it Matters:
L&T’s strong Q4 results highlight its resilience in India’s infrastructure and engineering space. Backed by a healthy order book and execution momentum, the company is well-positioned for sustained growth. Continued government capex and energy transition opportunities further boost its long-term outlook.
NIFTY 50 GAINERS
TITAN – 3514.50 (4.31%)
LT – 3466.20 (4.28%)
BEL– 315.80 (2.82%)
NIFTY 50 LOSERS
POWERGRID – 301.70 (-2.12%)
ICICIBANK – 1414.90 (-1.44%)
EICHERMOT – 5303.00 (-1.29)
Sector : Consumer Durable
Asian Paints Q4 Stays Subdued Again
Asian Paints Limited, India’s largest home decor company, reported a weak performance due to muted demand stemming from customer sentiments, which led to a preference for more affordable options and intense competition, particularly in urban areas. Although sales volume increased marginally on a sequential basis, value growth remained impacted and is expected to continue being affected for a quarter or two. Going forward, we will closely monitor the company’s margin and demand trends, especially as government initiatives aimed at boosting discretionary spending take effect and competitive pressures intensify. These factors will be crucial for evaluating Asian Paints’ performance and strategic positioning in a dynamic market environment.
Why it Matters:
Asian Paints reported a muted Q4 performance amid weak consumer sentiment and heightened competition, especially in urban markets. While volumes saw a slight uptick, value growth remained under pressure and is likely to stay subdued in the near term. The company’s future performance will hinge on margin trends and the impact of government-led discretionary spending initiatives.
Around the World
Asian stock markets mostly rose on Friday, led by Japan’s Nikkei, after the U.S. and U.K. signed a new trade deal framework. This boosted hopes for similar deals, especially with China. The Nikkei jumped 1.5%, supported by a weaker yen, while other Asian indexes like Australia, Singapore, and the Philippines also saw gains. However, China’s markets dipped slightly despite trade data showing stronger-than-expected exports and improving import trends, reflecting stable demand. Investors are now waiting for China’s inflation data due Saturday. U.S. markets had gained the previous night, and futures remained steady during Asian hours. Meanwhile, India’s Nifty 50 edged up slightly despite rising tensions with Pakistan after drone and missile incidents. Overall, markets are reacting positively to easing global trade tensions, though geopolitical risks and upcoming economic data are being watched closely.
Option Traders Corner
Max Pain
Nifty 50 – 24150
Bank Nifty – 54200
Nifty 50 – 24290 (Pivot)
Support – 24,133, 23,993, 23,836
Resistance – 24,430, 24,587, 24,727
Bank Nifty – 54470 (Pivot)
Support – 54,003, 53,641, 53,174
Resistance – 54,832, 55,299, 55,661
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