StockReport Archive

Newsletter: 05th February 2025

Titan Shines with Growth

Aaj Ka Bazaar

The Wall Street indices inched up during their trade yesterday after participants seemed to be optimistic about a breakthrough in the US-China trade war after the administration halted on implementation of tariffs on its neighbouring countries. In contrast, the Asian market saw mixed results; Nikkei faced selling pressure after a strong start, while Hang Seng initially rose modestly but later declined due to a drop in tech stocks. The Domestic bourses are expected pick up on the trend of US markets, as the GIFT Nifty indicates a strong start for the market. The optimism is likely to be further boosted by the heightened expectation of a rate cut by RBI in its upcoming MPC meet this week.

Markets Around Us

BSE Sensex –78,551.89 (-0.05%)

Nifty 50 – 23,759.05 (0.08%)

Bank Nifty – 50,323.20 (0.33%)

Dow Jones – 44,513.56 (-0.10%)

Nasdaq – 19,657.59 (1.37%)

FTSE – 8,570.77 (-0.15%)

Nikkei 225 – 38,765.46 (-0.08%)

Hang Seng – 20,663.39 (-0.61%)

Sector: Gems & Jewellery

Titan Company Ltd. Q3FY25

Titan’s diversified portfolio of jewellery, watches, and eyecare businesses has demonstrated strong revenue growth of 25% YoY, driven by robust demand for studded jewellery, watches, and eyecare products. The jewellery segment saw its strongest quarter for the current fiscal due to wedding seasons. During the quarter, Tanishq opened 11 new stores (net), while Mia added 13 stores in the domestic market. Additionally, the company’s emerging businesses, such as Taneira and SKINN fragrances, offer potential opportunities for expansion. During the quarter, its emerging business expanded its store by opening its first IRTH store in Mumbai, followed by a store opening in Chennai; Taneira opened one new store in Salem, Tamil Nadu, bringing the total store count to 82 stores covering 42 cities. However, the profitability of the company was impacted due to the custom duty-related losses on the inventory (held at the time of the duty change), which have been fully realised in this quarter.

Why it Matters:

The company continues to focus on expanding its market share and investing in capabilities across all its business segments. Looking ahead, with the growing trend of premiumisation and increased consumption in the economy post-budget, we remain constructive about the company’s business prospects, driven by product innovation and branding with a single-minded focus on satisfying the ever-evolving needs of lifestyle consumers.

NIFTY 50 GAINERS

BPCL – 264.45 (3.32%)

ONGC – 260.80 (2.64%)

INDUSINDBK – 1072.20 (2.39%)

NIFTY 50 LOSERS

ASIANPAINT – 2252.00 (-4.35%)

NESTLEIND – 2248.80 (-2.20%)

TITAN – 3537.00 (-1.69%)

Sector: Telecom

MTNL Soars 20% on Asset Sale Plans

MTNL shares hit a 20% upper circuit at ₹57.21 on February 5, driven by optimism over its asset monetization plans for FY26. This follows a 7% rise in the previous session after DIPAM Secretary Arunish Chawla reaffirmed the government’s commitment to monetizing MTNL and BSNL assets to clear liabilities. Despite being classified as an NPA last year, MTNL gained momentum after Finance Minister Nirmala Sitharaman announced a broadband scheme for government schools and health centers in Budget 2025. The telecom sector rallied, with the BSE Telecom index up 1.4%. However, the government’s telecom revenue is projected to decline by 33% to ₹82,443 crore in FY26 due to lower spectrum usage charges and deferred spectrum payments. At 10:20 am, MTNL was trading at ₹56.6, up 18.8%, with a 17% gain over the past three months.

Why it Matters:

MTNL’s 20% surge signals strong investor confidence in its asset monetization plan and government support. Despite high debt and past struggles, policy-driven initiatives could help revitalize the company and the broader telecom sector. However, the expected 33% decline in government telecom revenue raises concerns about long-term sustainability.

Around the World

Asian markets showed mixed performance on Wednesday as Chinese stocks fell due to rising U.S.-China trade tensions, while investors analyzed inflation data from South Korea and the Philippines. China’s Shanghai Composite dropped 0.4%, and Hong Kong’s Hang Seng fell 1% after China imposed retaliatory tariffs on U.S. goods following Trump’s 10% tariff on Chinese imports. The risk of a prolonged trade dispute kept markets uncertain. Japan’s Nikkei remained flat, Australia’s ASX 200 gained 0.6%, and Indonesia’s index dropped 0.5%. South Korea’s KOSPI rose 1.1% despite inflation crossing 2% for the first time in five months, fueled by AI-driven e-commerce stocks. The Philippines’ inflation stayed at 2.9%, supporting the central bank’s plan for rate cuts, boosting the PSEi Composite by 1.7%. U.S. stock futures declined as tech stocks fell after Alphabet’s weak earnings. Overall, trade tensions, inflation trends, and central bank actions shaped market sentiment.

Option Traders Corner

Max Pain

Nifty 50 – 23,600

Bank Nifty – 50,000

Nifty 50 – 23,641 (Pivot)

Support – 23,520, 23,302, 23,181

Resistance – 23,860, 23,981, 24,199

Bank Nifty – 49,949 (Pivot)

Support – 49,691, 49,224, 48,967

Resistance – 50,415, 50,673, 51,139

Did you know?

India's Mutual Fund Industry Sees 40% Growth

The total equity assets under management of India’s domestic mutual fund industry reached ₹33.4 trillion in 2024, marking a 40% increase compared to the previous year, according to Motilal Oswal’s Fund Folio Report.

Newsletter: 04th February 2025

Tata Chemicals Faces Losses

Aaj Ka Bazaar

Yesterday’s US market continued to show losses, though the extent was limited after the initial negative sentiment over global trade was eased by the Trump administration halting tariffs on Canada and Mexico, while maintaining them on China. The Asian markets reflected this positivity, with a notable surge in the Nikkei and similar optimism in the Hang Seng index as concerns over tariffs diminished. On the domestic front, Indian markets are expected to open on a positive note, buoyed by favorable global sentiments. GIFT Nifty indicates a strong start, and we anticipate that the market will sustain its upward momentum throughout the day, following a lack of positive triggers in previous sessions.

Markets Around Us

BSE Sensex –77,736.24 (0.71%)

Nifty 50 – 23,519.10 (0.68%)

Bank Nifty – 49,627.15 (0.85%)

Dow Jones – 44,485.04 (0.14%)

Nasdaq – 19,405.61 (-1.13%

FTSE – 8,583.56 (-1.05%)

Nikkei 225 – 38,960.88 (1.14%)

Hang Seng – 20,622.98 (1.99%)

Sector: Commodity Chemicals

Tata Chemicals Reports Loss, Stock Falls

Tata Chemicals’ stock dropped over 4% after the company reported a net loss of Rs 21 crore for Q3, reversing the profit of Rs 194 crore from the same quarter last year. The decline in profits was mainly due to lower soda ash prices and a one-time exceptional loss of Rs 70 crore, which was linked to plant closures and employee termination costs in the UK. Revenue also fell 3.8% to Rs 3,590 crore, and the operating margin shrank to 12.1% from 14.5% a year ago. The company faced higher fixed costs in the US due to a production outage and lower demand for soda ash. Tata Chemicals’ debt increased, with gross debt rising to Rs 6,722 crore and net debt reaching Rs 5,329 crore. The CEO expects short-term challenges to continue but anticipates improvement over time due to sustainability trends.

Why it Matters:

Tata Chemicals’ Q3 loss highlights ongoing challenges, including lower prices and higher costs, affecting profitability. The stock drop reflects investor concerns about the company’s financial stability. Increased debt could impact its future growth and ability to recover in the short term.

NIFTY 50 GAINERS

HINDALCO – 594.20 (3.51%)

BEL – 282.45 (3.03%)

ONGC – 255.55 (2.63%)

NIFTY 50 LOSERS

TRENT – 5865.40 (-4.40%)

HINDUNILVR – 2414.10 (-1.14%)

BRITANNIA – 5050.25 (-1.08%)

Sector: NBFC

Bajaj Finance Hits Record High on Optimism

Shares of Bajaj Finance rose more than 5%, reaching a new all-time high, and are up over 21% this year, following strong quarterly results for December. Investors are optimistic, expecting a 25 basis point rate cut by the Reserve Bank of India (RBI) later this week, which could further support consumption, especially after the tax relief in the recent budget. The company has improved its loan portfolio, reducing customers with multiple unsecured loans to pre-Covid levels, and expects credit costs to stay below 2% in FY26. Bajaj Finance’s strong performance in Q3FY25 included an 18% increase in net profit, driven by a rise in assets under management. Analysts remain positive, with some setting price targets above Rs 8,000 per share. The company also announced a leadership transition plan, as the current MD’s tenure ends in March, though he will stay involved in the strategic direction.

Why it Matters:

Bajaj Finance’s strong performance and expectations of an RBI rate cut drive optimism, boosting investor confidence. The company’s improved asset quality and growth potential suggest solid long-term prospects. This makes it an attractive investment in 2025, especially with its leadership transition and market momentum.

Around the World

Asian currencies made a mild recovery on Tuesday as the dollar lost some ground after U.S. President Donald Trump delayed plans to impose trade tariffs on Canada and Mexico. However, the gains in regional currencies were limited due to the ongoing 10% tariffs on China, which were still set to take effect later in the day. Chinese markets were closed for the Lunar New Year holiday, but the yuan showed wild fluctuations in offshore trade. Despite some recovery in Asian currencies, concerns about high U.S. interest rates lingered, keeping regional markets under pressure. The Japanese yen rose slightly, while the South Korean won remained unchanged. The Indian rupee stayed close to a record high against the dollar. Investors are also waiting for the U.S. nonfarm payrolls data this week, which could influence expectations about interest rates, while the Fed’s stance on inflation and the economy continues to impact the dollar.

Option Traders Corner

Max Pain

Nifty 50 – 23,500

Bank Nifty – 50,000

Nifty 50 – 23,321 (Pivot)

Support – 23,261 23,161, 23,101

Resistance – 23,421, 23,481, 23,580

Bank Nifty – 49,163 (Pivot)

Support – 48,953, 48,695, 48,485

Resistance – 49,420, 49,630, 49,815

Did you know?

India's Mutual Fund Industry Sees 40% Growth

Check Union Budget 2025-26: Market Impact & Insights with Manish Chowdhury

Weekly Report: 02nd February 2025

Weekly Trend Report

Week Gone By

The key equity indices remained volatile on Budget Day, ending near the flat line despite key announcements by Finance Minister Nirmala Sitharaman in the Union Budget 2025-26. Despite this, broader markets traded mixed. With the exception of two day’s decline, the benchmark indices rallied for four consecutive days. The Economic Survey presented in Parliament has projected that India will achieve GDP growth of 6.3-6.8% in the financial year 2025-26, supported by strong fundamentals, disciplined fiscal consolidation, and steady private consumption. In the week ended on Saturday, 01 February 2025, The Nifty 50 ended slightly lower by 0.11% at 23,482, while the Sensex remained nearly unchanged at 77,505. The Nifty Smallcap 100 index edged up 0.12% to 16,560, while the Nifty Midcap 100 index declined 0.42%, closing at 53,486. Meanwhile, the Nifty Smallcap 100 index managed to stay positive, rising 0.41% to settle at 16,979.

Week Ahead

Indian markets closed the special Budget Day trading session on February 1 with little movement as investors responded to the Union Budget 2025’s capital expenditure figures. The current Q3 earnings season will continue to dominate market attention as some of the major companies are slated to announce their third-quarter earnings in the next week. On February 04, data pertaining to job openings that are part of the Job Openings and Labor Turnover Survey (JOLTS) of the US will be announced. Further, The Reserve Bank of India’s (RBI) rate-setting committee is scheduled to meet later this week (February 5-7), with analysts largely anticipating the central bank to introduce rate cuts—the first in over four years. Further, The Bank of England holds its latest policy-setting meeting this week and is widely expected to cut interest rates and hint at more reductions to come as the UK economy stagnates.

Technical Overview

The benchmark index began the trading week on a panic note, opening 152 points lower, which led to extreme oversold conditions.
However, the markets quickly rebounded following the announcement of the Reserve Bank of India (RBI) purchasing G-sec securities worth Rs. 60,000 crore, a move intended to ease liquidity measures in the equity segment.
This sparked a pre-budget rally of 721 points. On Saturday, the index closed with a sense of indecision after the budget announcement.
Ultimately, the index finished the trading week 389 points higher on a weekly basis, forming an outside bar candle pattern, with most sectoral and broader indices showing an improvement in their negative momentum for the third consecutive week.
Subsequently, the VIX cooled off 15.8% 14.09.
The pre-budget rally has resulted in a notable recovery in intermediate breadth, as over 50% of NSE stocks are now trading above 10DMA.
However, less than half of NSE stocks continue to trade above 20DMA. Additionally, the figures for 50 and 200 DMA over the past 7 and 4 consecutive weeks serve as pressing indicators, and a failure to improve in the near future could warrant caution.
From a technical standpoint the index has formed an outside bar on the weekly timeframe.
The formation of outside bars, particularly when the closing is relatively robust, indicates that buyers have prevailed. Consequently, when this pattern occurs during a pullback, it enhances the likelihood of diminishing declines.
As a result, support levels have been elevated from 22786 to 23050, with immediate support positioned near 23430. Sustaining above this zone could enable the index to gain bullish strength and test the 50 and 200 DMA, currently trading near 23809 and 24000.

To view the detailed report click here to Download

Newsletter: 01st February 2025

Slower Growth Hits IndusInd

Aaj Ka Bazaar

The US markets closed the week on a down note after the White House announced that President Donald Trump would impose 25% tariffs on Mexican and Canadian imports and 10% tariffs on Chinese imports. This negative sentiment stemmed from concerns about the tariffs’ impact on the economy and inflation. Domestically, as the country gears up for the Union Budget, the markets are expected to open Saturday’s trading session positively, as anticipation towards the budget is likely overpowering the influence of the US dec;ine. Throughout the day, participants will closely follow Nirmala Sitharaman’s eighth Union Budget speech, which is anticipated to drive market momentum. We remain optimistic about the budget and expect the market to continue its rally from yesterday.

Markets Around Us

BSE Sensex -77,698.74 (0.26%)

Nifty 50 – 23,567.40 (0.25%)

Bank Nifty – 49,773.55 (0.38%)

Dow Jones – 44,544.66 (-0.75%)

Nasdaq – 19,623.27 (-0.30%)

FTSE – 8,673.96 (0.31%)

Nikkei 225 – 39,572.13 (0.00%)

Hang Seng – 20,255.11 (0.00%)

Sector: Banking

IndusInd Bank Ltd. Q3FY25

Private lender IndusInd Bank reported disappointing performance in Q3FY25, primarily due to slower loan growth, elevated slippages, and increased credit costs. These developments were expected, as management has been cautious in disbursing loans, particularly in the MFI segment, where the bank is the second largest lender. This cautious approach has contributed to sluggish credit growth during the quarter. The bank is gradually reducing its exposure in the MFI sector. Vehicle financing activity exhibited muted growth, but there are expectations for improvement in Q4FY25. In previous quarter, management projected a growth of 16%, so it will be important to monitor whether this guidance has been revised in light of recent performance. NIMs experienced compression due to a decline in the high-yielding MFI loan segment and rising deposit costs. However, there is optimism that NIMs will improve if growth in the microfinance sector resumes. In terms of asset quality, both GNPA and NNPA deteriorated, and Return on Assets also declined, indicating increased stress.

Why it Matters:

Deposit growth remained strong, driven by retail deposits. Overall, IndusInd Bank reported a weak quarter in Q3FY25. Moving forward, we will closely monitor management’s strategy regarding credit costs and to ensure that NIMs and slippages show improvement.

NIFTY 50 GAINERS

ITCHOTELS – 166.80 (2.36%)

ULTRACEMCO – 11749.65 (2.28%)

INDUSINDBK – 1013.80 (2.28%)

NIFTY 50 LOSERS

ONGC – 258.70 (-1.48%)

HEROMOTCO – 4283.00 (-1.29%)

NESTLEIND – 2290.05 (-1.00%)

Sector: Banking

IndusInd Bank Ltd. Q3FY25

Why it Matters:

On a positive note, deposit growth remained strong, driven by retail deposits. Overall, IndusInd Bank reported a weak quarter in Q3FY25. Moving forward, we will closely monitor management’s strategy regarding credit costs and to ensure that NIMs and slippages show improvement.

Around the World

In the United States, major stock indexes are showing mixed results as investors digest the latest earnings reports and economic data. The S&P 500 is up slightly, boosted by strong performances in tech stocks, while the Dow Jones is facing pressure from weaker-than-expected results in the industrial sector. In Europe, stock markets are down, with concerns over inflation and higher interest rates in the eurozone weighing on investor sentiment. The German DAX and UK’s FTSE 100 are both seeing declines as investors react to slower economic growth forecasts. In Asia, the Japanese Nikkei has seen a rise, driven by a rebound in tech stocks and investor optimism ahead of a major government stimulus package. Meanwhile, China’s Shanghai Composite is experiencing volatility as concerns about economic recovery continue to affect investor confidence. In emerging markets, Brazil’s Bovespa index has gained momentum due to stronger commodity prices.

Option Traders Corner

Max Pain

Nifty 50 – 23,250

Bank Nifty – 49,300

Nifty 50 – 23,444 (Pivot)

Support – 23,341 23,174, 23,072

Resistance – 23,611, 23,713, 23,780

Bank Nifty – 49,431 (Pivot)

Support – 49,187, 48,788, 48,544

Resistance – 49,830, 50,044, 50,473

Did you know?

2 Million Indian Travelled to USA

The number of Indians who travelled to the United States in the first 11 months of 2024, up 26% from the same period last year.

Have you checked our latest YouTube Video

Newsletter: 31st January 2025

L&T Sees Strong Growth

Aaj Ka Bazaar

The US indices ended up higher yesterday after beating the volatility in the market amidst the slew of key corporate earnings. The sentiments were largely supported by the upbeat commentary from Tesla, which helped mitigate the concerning sentiments stemming from the dull outlook of Microsoft. The Asian market also started the day, supported by the bias from the relatively positive US market. On the commodity front, Gold touched the mark of Rs. 81,000/10g amidst a slowdown in trade in the domestic market, led by heightened anticipation of an upward revision of custom duty on the metal in the Union Budget and tariff concerns from the Trump administration. The dollar also continued to trade higher amidst tariff concerns. The domestic markets are likely to open on a negative note as per the cue from GIFT Nifty, drifting away from the global peer sentiments. The markets are expected to remain highly volatile, as key blue chip earnings are likely to influence the market, in addition to expectations from the Union Budget.

Markets Around Us

BSE Sensex –76,937.97 (0.24%)

Nifty 50 – 23,312.30 (0.27%)

Bank Nifty – 49,187.40 (-0.25%)

Dow Jones – 44,976.97 (0.20%)

Nasdaq – 19,680.70 (0.25%)

FTSE – 8,646.88 (1.03%)

Nikkei 225 – 39,652.63 (0.35%)

Hang Seng – 20,255.11 (0.00%)

Sector: Construction

Larsen & Toubro Ltd. Q3FY25

Engineering giant Larsen & Toubro (L&T) delivered a decent operating and financial performance during the quarter. While the company did not surpass street estimates, its robust order book, record-high order inflows, and ramp-up in execution momentum bode well for future growth. The company anticipates that the Union Budget will prioritize infrastructure development, technology adoption, skill enhancement, and energy transition policies, which could further drive economic momentum. L&T stands to benefit from the government’s continued push towards infrastructure developments and economic growth.

Why it Matters:

The company has been performing well with improved operational efficiency and sustained digital adoption. Its strong near-term order prospects and confidence in maintaining growth momentum position it for continued success in the coming quarters.

NIFTY 50 GAINERS

LT – 3560.00 (4.06%)

TATACONSUM – 1005.35 (4.00%)

BEL – 286.40 (2.74%)

NIFTY 50 LOSERS

ITCHOTELS – 158.30 (-3.02%)

INFY – 1598.00 (-2.61%)

BAJAJFINSV – 1713.40 (-1.82%)

Sector: FMCG

Tata Consumer Products Ltd. Q3FY25

Tata Consumer Products Limited, a Tata Group engaged in the business of food and beverages, reported healthy revenue growth in Q3FY25, mainly led by its strong operational performance in the Indian market. During the quarter, the consolidated revenue increased by 17% YoY. Its beverages business reported a revenue growth of 9%, with tea volumes growing at 7% YoY and strong momentum in coffee continued with 28% revenue growth. The Salt business revenue grew by 7% driven by pricing hike that company took in October 2024 and modest volume growth of 1%. The value added salt segment continued its strong momentum and reported a 31% revenue growth. The company continues to strengthen its market share in salt business. The company’s recently acquired Capital Foods and Organic India have created a momentum with combined revenues crossing Rs. 850 crores. Further, Tata Starbucks, which aims to have 1000 stores by 2028, added 16 new stores and entered 4 new cities bringing total stores count to 473 across 74 cities, reinforcing its position as India’s largest organized cafe operator. Internationally, the company reported a robust revenue growth of 8%, due to strong performance in the UK market. On consolidated level, EBITDA margins were impacted by 234 bps, due to inflation in India tea cost. However, calibrated price increases across tea portfolio have helped the company to partially offset this significant increase in tea cost.

Why it Matters:

The management is strategically focusing on expanding its market share by reaching new geographies, exploring new distribution channels like e-commerce, split route and launching new innovative products and smaller SKUs. Overall, Tata Consumer’s domestic business is poised for further growth, especially in the tea and salt segments which commands significant market share.

Around the World

Asian stock markets remained mostly stable on Thursday as investors reacted to the U.S. Federal Reserve’s decision to keep interest rates unchanged with a cautious outlook. Tech stocks stayed under pressure due to mixed signals on artificial intelligence. Meanwhile, Australian markets outperformed, reaching record highs on expectations of a rate cut by the Reserve Bank of Australia in February. Concerns over potential U.S. trade tariffs under Trump’s policies added uncertainty. Trading volumes were low due to Lunar New Year holidays in major Asian markets like China, Hong Kong, and South Korea. Japan’s stock indexes stayed flat as tech losses balanced gains in domestic sectors, with SoftBank declining further after reports of a $25 billion investment in OpenAI. Australian stocks gained on rate cut bets, though core inflation remains high. India’s Nifty 50 was set for a slight positive open, while Philippine markets dipped after weak GDP data.

Option Traders Corner

Max Pain

Nifty 50 – 23,250

Bank Nifty – 49,300

Nifty 50 – 23,236 (Pivot)

Support – 23,151, 23,054, 22,968

Resistance – 23,334, 23,419, 23,517

Bank Nifty – 49,256 (Pivot)

Support – 49,087, 48,862, 48,692

Resistance – 49,481, 49,651, 49,875

Did you know?

2 Million Indian Travelled to USA

The number of Indians who travelled to the United States in the first 11 months of 2024, up 26% from the same period last year.

Have you checked our latest YouTube Video

Newsletter: 30th January 2025

Tata Motors: Mixed Q3 Signals

Aaj Ka Bazaar

The US market mainly moved lower on Wednesday, partly offsetting the notable rebound seen in the previous session. The lower close on Wall Street came after the Federal Reserve announced its widely expected decision to leave interest rates unchanged following its first monetary policy meeting of 2025. The decision to leave rates unchanged came as the Fed noted inflation remains somewhat elevated and reiterated its strong commitment to returning inflation to its 2% objective. Asian markets were mixed in thin holiday trade this morning as investors waited for clarity on the Trump administration’s plans for trade policy. Indian shares look set to open on a muted Thursday as investors react to a hawkish Fed policy statement and a mixed set of earnings results from Tata Motors and Bajaj Finance. Investors also await cues from next week’s MPC meeting. Following recent measures to address tight liquidity conditions in the banking system, economists expect the Reserve Bank of India to commence the rate easing cycle with a 25-basis point rate cut in the February 7 policy meeting.

Markets Around Us

BSE Sensex –76,820.98 (0.36%)

Nifty 50 – 22,026.00 (0.30%)

Bank Nifty – 48,941.10 (0.15%)

Dow Jones – 44,857.32 (0.32%)

Nasdaq – 19,630.73 (-0.52%)

FTSE – 8,557.81 (0.28%)

Nikkei 225 – 39,425.04 (-0.02%)

Sector: Automobile

Tata Motors Ltd. Q3FY25 Outlook

Tata Motors experienced a tepid quarter during the fiscal, falling short on expectations on all fronts. Despite this, there’s a silver lining with gradual recovery in financial performance on a sequential basis. The top-line growth was largely supported by the robust contribution of JLR, which had shown sluggishness in the previous quarter. Improved wholesale demand post the supply disruption was the key driver for improved revenues, further bolstered by accretive margins for the segment due to an improved mix and lower D&A (Depreciation & Amortization). However, the commercial vehicle (CV) and passenger vehicle (PV) segments partially offset these gains, led by lower volumes and an unfavorable product mix. The overall profitability was hindered by a rise in the raw material (RM) basket, increased inventory costs, and miscellaneous expenses. On the brighter side, margins across segments showed a positive recovery on a sequential basis, reflecting the company’s effective cost control measures.

Why it Matters:

Tata Motors. Key uncertainties related to demand in the US and China warrant close monitoring. Additionally, management’s commentary on the global demand scenario for JLR will be crucial for future performance.

NIFTY 50 GAINERS

BAJFINANCE – 7995.85 (3.04%)

INFY – 1840.10 (2.78%)

HINDALCO – 599.85 (2.70%)

NIFTY 50 LOSERS

TATAMOTORS – 701.05 (-6.84%)

INFY – 1866.90 (-0.76%)

ITCHOTLES – 171.30 (-0.32%)

Sector: NBFC

Bajaj Finance Ltd. Q3FY25 Result

India’s leading NBFC, Bajaj Finance, showed strong performance in Q3FY25, marked by significant growth in assets under management and an 18% YoY increase in net profit, surpassing estimates. The company experienced a highest number of new loan bookings and a steady customer acquisitions during the quarter. Bajaj Finance holds a 7% overall market share and a dominant 37% share in the NBFC personal loans segment. However, in Q3FY25, there was some deterioration in asset quality and an increase in provisions. The industry is currently navigating a credit cycle with rising credit costs, although Bajaj Finance’s credit cost is expected to stabilize in the near term. The company has ended co-branded partnerships with RBL Bank and DBS Bank, and management commentary on these will be closely monitored.

Why it Matters:

Strategic partnership with Airtel and its transformation into a Finance + AI (FINAI) company, by integrating AI-driven processes across operations, are expected to enhance performance. AUM growth remains strong, and return ratios are within management’s guidance. Overall, Bajaj Finance delivered strong performance with expectations for improved profitability and asset quality in the upcoming quarters.

Around the World

Option Traders Corner

Max Pain

Nifty 50 – 23,200

Bank Nifty – 49,300

Nifty 50 – 23,107 (Pivot)

Support – 23,031, 22,900, 22,825

Resistance – 23,238, 23,314, 23,445

Bank Nifty – 49,071 (Pivot)

Support – 48,943, 48,721, 48,594

Resistance – 49,293, 49,421, 49,643

Did you know?

2 Million Indian Travelled to USA

The number of Indians who travelled to the United States in the first 11 months of 2024, up 26% from the same period last year.

Have you checked our latest YouTube Video

Newsletter: 29th January 2025

Bajaj Auto’s Strong Q3

Aaj Ka Bazaar

The US market ended higher after seeing considerable weakness in the previous session, stocks showed a strong return to the upside during trading on Tuesday. The tech-heavy Nasdaq led higher after posting a particularly steep loss on Monday. In economic releases, durable goods orders fell 2.2% in December, while consumer confidence declined for the second month in January, separate reports showed. Buying interest was somewhat subdued as investors looked ahead to the Federal Reserve’s monetary policy announcement on Wednesday. The Fed is almost universally expected to leave interest rates unchanged, but investors will likely pay close attention to the accompanying statement for clues about the rate outlook. In Asia, Japanese, Australian and New Zealand market rose this morning while most other markets were closed for the Lunar New Year holidays. Indian market are opening a tad higher on Wednesday, mirroring firm cues from global markets and amid hopes for a rate cut by the RBI next week. However, the mood is still downbeat among participants, with Q3 results from India Inc. either on expected lines or below market expectations. The focus has shifted to two significant events – the FOMC meeting scheduled tomorrow and the Union Budget 2025 on 1st February.

Markets Around Us

BSE Sensex –76,176.98 (0.36%)

Nifty 50 – 22,026.00 (0.30%)

Bank Nifty – 48,941.10 (0.15%)

Dow Jones – 44,874.45 (0.05%)

Nasdaq – 19,719.11 (1.95%)

FTSE – 8,533.87 (-0.12%)

Nikkei 225 – 39,268.83 (0.75%)

Hang Seng – 20,255.11 (0.00%)

Sector: Automobile

Bajaj Auto Ltd. Q3FY25 Result

Bajaj Auto reported a decent quarterly performance, which was largely anticipated by the market, given the decline in domestic 2W sales during the quarter and slugged production. The buoyancy in the topline was supported by 3W volumes and increased export contribution; however, a weaker product mix was the main pressure point during the three-month period. An improved ASP, with a 6% YoY growth, was one of the key pillars that enabled the company to help maintain its operational margins. The benefits of premiumisation largely reflected its products like Speed 400 and Duke 200/250, clocking in the highest-ever retail sales, with the expansion of its touchpoints boding well for the company. The company also experienced a five-fold surge in its e3W volumes, with market share expanding to a new quarter high (3x YoY), supported by an extended network from 600 to over 850 touchpoints. Chetak maintained its robust momentum, with volumes growing by ~2.5x YoY and an exit market share of 25% (+1100 bps).

Why it Matters:

The company had mentioned improvement in its margin structure in the previous quarter’s concall, which was expected to materialize post the launch of the upgraded Chetak in November. Follow-up on the commentary would be key to gauge the profitability of its EV portfolio. Moving forward, management’s comments on the CNG portfolio pipeline, production expansion plans, and margin improvement guidance will be key areas to watch.

NIFTY 50 GAINERS

BAJAJ-AUTO – 8781.35 (4.56%)

INFY – 1860.40 (1.68%)

BEL – 261.80 (1.37%)

NIFTY 50 LOSERS

TATACONSUM – 950.60 (-1.41%)

NTPC – 316.40 (-1.80%)

DRREDDY– 1179.60 (-1.51%)

Sector: Energy

Suzlon Surges 5% on 91% Profit Growth

Suzlon Energy shares surged 5% after the company reported a strong 91% jump in net profit for Q3 FY25, reaching ₹387 crore compared to ₹203 crore last year. Revenue also saw a sharp rise, growing 91% to ₹2,969 crore. The company achieved record quarterly deliveries of 447 MW, supported by a capacity ramp-up to 4.5 GW, though total installations remained lower than the previous year. Suzlon’s order book hit an all-time high of 5.5 GW, ensuring strong revenue visibility over the next two years. Nuvama upgraded the stock to ‘buy’ with a ₹60 target, citing valuation comfort and growth potential in India’s renewable energy sector. Morgan Stanley maintained an ‘overweight’ rating with a ₹71 target, expecting industry challenges like land acquisition to ease by FY26. Suzlon also plans ₹350-400 crore capex for new blade manufacturing in MP and Rajasthan, strengthening future production capacity.

Why it Matters:

Suzlon’s 91% jump in profit and revenue highlights its strong growth in the renewable energy sector. With a record 5.5 GW order book and ₹350-400 crore planned expansion, the company is well-positioned for future growth.

Around the World

Asian stocks moved higher on Wednesday as the sharp selloff in tech stocks due to concerns over DeepSeek, a new Chinese AI model, started to ease. Australian stocks led the gains, hitting a nearly two-month high after lower-than-expected inflation raised hopes of an interest rate cut by the Reserve Bank of Australia. Trading volumes were low due to Lunar New Year holidays in China, Hong Kong, Taiwan, Singapore, and South Korea. U.S. markets had rebounded overnight, but futures dipped ahead of the Federal Reserve’s policy decision. Investors are also watching key earnings reports from Microsoft, Tesla, ASML, and Alibaba. Japanese tech stocks, which had been hit hard by DeepSeek’s launch, saw some recovery, with Sony rising over 4% after announcing a new CEO. Meanwhile, Australia’s ASX 200 gained 0.9% on rate cut hopes, while India’s Nifty 50 struggled near a seven-month low.

Option Traders Corner

Max Pain

Nifty 50 – 23,100

Bank Nifty – 49,300

Nifty 50 – 22,984 (Pivot)

Support – 22,830, 22,703, 22,550

Resistance – 23,110, 23,264, 23,391

Bank Nifty – 48,854 (Pivot)

Support – 48,461, 48,056, 47,663

Resistance – 49,259, 49,652, 50,0075

Did you know?

2 Million Indian Travelled to USA

The number of Indians who travelled to the United States in the first 11 months of 2024, up 26% from the same period last year.

Have you checked our latest YouTube Video

Newsletter: 28th January 2025

Federal Bank Profit Dips

Aaj Ka Bazaar

US benchmarks showed a mix of performances, with both the Nasdaq and S&P 500 registering losses, while the Dow Jones Industrial Average (DJIA) remained positive. The decline in the Nasdaq and S&P 500 was mainly due to the significant drop in tech stocks, particularly Nvidia, after the introduction of DeepSeek, a Chinese AI assistant that’s much cheaper than its US counterparts, affecting the AI landscape dynamics. Over in Asia, the Nikkei fell as the US tech stock turmoil spread to Japan, and the strengthening yen further dampened market sentiment. Meanwhile, the Hang Seng index stayed nearly flat after starting the day strong. Domestically, markets are expected to open on a positive note, but global sentiments might influence the benchmarks as the day goes on. The IT sector is predicted to remain under pressure due to the developments around DeepSeek and the general weakness in global tech sentiment.

Markets Around Us

BSE Sensex –75,652.76 (0.38%)

Nifty 50 – 22,906.40 (0.34%)

Bank Nifty – 48,563.35 (1.04%)

Dow Jones – 44,677.63 (-0.10%)

Nasdaq – 19,343.41 (-3.06%)

FTSE – 8,503.71 (0.02%)

Nikkei 225 – 39,142.50 (-1.07%)

Hang Seng – 20,277.23 (0.20%)

Sector: Bank

Federal Bank Slides on Q3 Profit

Federal Bank shares dropped 7% after reporting a weaker-than-expected Q3 net profit of ₹955.4 crore, down 5% year-on-year and below estimates of ₹1,022 crore. The decline was driven by a surge in provisions, which more than doubled to ₹290 crore. Despite this, the bank’s net interest income grew nearly 15% year-on-year to a record ₹2,431.3 crore, beating expectations. On the asset quality side, slippages rose 14.7% quarter-on-quarter, but strong recoveries and upgrades helped reduce the gross NPA ratio to 1.95% and the net NPA ratio to 0.5%. At 10:09 AM, Federal Bank shares were trading at ₹178.76 on the NSE. Analysts attributed the weak bottom line to higher provisions, though operational metrics like net interest income and improved asset quality offered some positives for the bank’s overall performance.

Why it Matters:

Federal Bank’s weaker Q3 profit signals pressure from higher provisions, impacting investor confidence as shares fell 7%. Despite record net interest income and improving asset quality, the unexpected profit miss raises concerns about cost management. Traders are closely watching for signs of recovery in the upcoming quarters.

NIFTY 50 GAINERS

SHRIRAMFIN – 523.50 (2.32%)

INFY – 1857.20 (1.93%)

AXISBANK – 965.50 (1.84%)

NIFTY 50 LOSERS

SUNPHARMA – 1726.00 (-3.41%)

NTPC – 316.40 (-1.80%)

DRREDDY– 1179.60 (-1.51%)

Sector: Energy

Adani Total Gas Profit Drops

Adani Total Gas shares fell 1.09% on January 28 after the company reported a 19% year-on-year drop in Q3 net profit to ₹142.38 crore, down from ₹176.64 crore a year ago. The profit also declined 23.28% sequentially. Despite this, revenue grew 13% to ₹1,400.88 crore, reflecting operational strength. However, profits were impacted by higher natural gas procurement costs, which rose 20% due to reduced government gas supplies in October-November. The shortfall forced the company to buy costlier natural gas to maintain uninterrupted CNG supply. After opening flat and hitting a high of ₹627.15 per share, the stock reversed gains and traded at ₹612.65 on the NSE

Why it Matters:

Adani Total Gas’s profit decline highlights rising input costs, with higher gas procurement expenses eroding margins despite revenue growth. The stock’s reaction reflects investor concerns about cost pressures and profitability. Traders are monitoring how the company navigates fluctuating gas supply and pricing dynamics.

Around the World

Asian markets traded flat-to-lower on Tuesday, with Japan’s Nikkei falling nearly 1% as major chipmakers like Advantest and Tokyo Electron slid on concerns about a new AI model, DeepSeek, which matches top competitors like ChatGPT but uses cheaper hardware, threatening demand for advanced AI chips. Chinese and South Korean markets were closed for Lunar New Year, while Hong Kong’s Hang Seng rose 0.2%, with gains in tech giants like Alibaba and Tencent, fueled by optimism around China’s AI advancements. Australian markets stayed cautious ahead of key inflation data, which could influence interest rate decisions, while Indian stocks signaled a positive recovery after recent lows. Meanwhile, U.S. markets showed signs of stabilization after tech-heavy losses, and traders await major U.S. tech earnings and the Federal Reserve’s interest rate decision later this week.

Option Traders Corner

Max Pain

Nifty 50 – 23,200

Bank Nifty – 49,000

Nifty 50 – 22,874 (Pivot)

Support – 22,741, 22,653, 22,521

Resistance – 23,962, 23,095, 23,182

Bank Nifty – 48,076 (Pivot)

Support – 47,832, 47,600, 47,357

Resistance – 48,307, 48,551, 48,782

Did you know?

2 Million Indian Travelled to USA

The number of Indians who travelled to the United States in the first 11 months of 2024, up 26% from the same period last year.

Have you checked our latest YouTube Video

Weekly Report: 27th January 2025

Weekly Trend Report

Week Gone By

The Indian benchmarks ended the week with a modest decline of 0.5%, driven by moderations in corporate earnings and potential uncertainties led by U.S. policies under President Donald Trump. Additional pressure was created by the continuous exodus of FPIs from the domestic market. On the economic front, India’s foreign exchange reserves declined by USD 8.7 billion to USD 625.9 billion as per the latest RBI data. HSBC Flash India Composite Output Index fell from a final reading of 59.2 in December to 57.9 in January. This indicated the weakest rate of expansion in 14 months, however remained above the long term average of 54.7. Globally, The Bank of Japan raised its key short-term interest rate to around 0.5%, the highest in 17 years, in an effort to further “normalize” its monetary policy.

Week Ahead

The approaching week holds significant importance as the domestic stock market gears up for the Union Budget presentation on Saturday, 1 February 2025. Both BSE and NSE will conduct live trading to accommodate this event. This marks Finance Minister Nirmala Sitharaman’s eighth consecutive Budget presentation, sparking high investor anticipation. Throughout the week, focus will remain on corporate earnings. Globally, key events include the US Federal Reserve’s interest rate decision and US Q4 GDP growth data, both set for Thursday, 30 January 2025. Additionally, Japan’s Consumer Confidence Index for January is slated for release on Wednesday, 29 January 2025.

Technical Overview

The benchmark index commenced the trading week with a positive outlook. However, it experienced a significant decline on Tuesday, with the previous gap down area near 23430 serving as an immediate supply zone, marking a new low of 22976 in the current downward trend.
A mild recovery was observed in the latter half of the trading week; nonetheless, the week concluded with a decrease of 111 points, characterized by an outside bar formation, establishing the weekly lows as immediate pivotal support.
The Volatility Index (VIX) recorded its third consecutive weekly close at elevated levels of 16.7, suggesting the likelihood of further increases in the following week.
The week ended with all broader indices and the majority of sectoral indices exhibiting a downtrend, although there was slight improvement in their negative momentum for consecutive weeks.
The percentage of stocks trading above the shorter-term moving averages continues to remain below the 50% bullish threshold, indicating repeated oversold conditions and suggesting that the forthcoming reversals may continue to be weak.
The percentage of stocks trading above 50 DMA remains significantly below the median threshold for six consecutive weeks, while those trading above 200 DMA have been below for three weeks, presenting a negative development.
On the momentum breadth front, a modest recovery was observed on Monday; however, it failed to provide any significant follow-through during the week, reflecting a lack of broader market participation in the bullish direction. The breadth analysis further indicates that the downtrend is likely to persist across all timeframes.
From a technical perspective, the index operates within a no-money environment, and a choppy market is anticipated to continue until the Union Budget.
Trading is confined to a no-trading zone, with overhead resistance near 23430 and support within the range of 23060-22976. It is imperative that the support zone remains intact on a closing basis to foster bullish strength.
Currently, the overall swing confidence stands at zero; thus, it is advisable for portfolios to refrain from engaging in any open permissible risk.

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Newsletter: 27th January 2025

Laurus Labs Tumbles 10%

Aaj Ka Bazaar

The weakness that emerged on Wall Street on Friday may have reflected concerns about the outlook for interest rates ahead of the Federal Reserve’s monetary policy meeting next week. While the Fed is almost universally expected to leave interest rates unchanged, traders will likely pay close attention to the accompanying statement for clues about the rate outlook. Asian markets traded mixed this morning, giving up some early gains after disappointing Chinese industrial profits and manufacturing and non-manufacturing data were released. Indian market looks set to open a tad lower on Monday after declining for three straight weeks in a row. A cautious undertone may prevail due to continued foreign fund flows, tariff uncertainties and concerns over slowing corporate earnings growth. The next batch of Q3 earnings, expectations surrounding the upcoming Budget, the monthly F&O expiry and caution ahead of the US Federal Reserve’s interest-rate decision may sway markets as the week progresses.

Markets Around Us

BSE Sensex –75,700.43 (-0.64%)

Nifty 50 – 22,940.15 (-0.66%)

Bank Nifty – 47,881.65 (-1.01%)

Dow Jones – 44,287.47 (-0.29%)

Nasdaq – 19,956.29 (-0.49%)

FTSE – 8,502.35 (-0.74%)

Nikkei 225 – 39,824.96 (-0.29%)

Hang Seng – 20,266.42 (1.08%)

Sector: Pharmaceuticals

Laurus Labs Falls 10% Post Earnings

Laurus Labs shares dropped 10% as investors booked profits after a two-day rally fueled by strong Q3 results. The company reported a net profit of ₹92 crore, a sharp rise from ₹23 crore in the same quarter last year, supported by a significant increase in other income. Revenue grew 18.5% year-on-year to ₹1,415 crore, with a sequential increase of 16%. Notably, the EBITDA margin improved by 500 basis points to 20.2%, the highest since Q4 FY23, driven by better gross margins and operating leverage. While Laurus expects further margin improvements through asset utilization and productivity gains, Goldman Sachs maintained a ‘sell’ rating with a target price of ₹475, citing the need for sustained financial improvement. The management remains optimistic about medium-term growth, with a focus on maintaining 20% EBITDA margins for FY25.

Why it Matters:

Laurus Labs’ strong Q3 results highlight a sharp recovery in profitability and operating efficiency, with EBITDA margins crossing 20% after several quarters. However, the stock’s sharp drop reflects profit booking, signaling cautious sentiment among investors. The company’s medium-term growth plans and margin guidance make it a key stock to watch.

NIFTY 50 GAINERS

BRITANNIA – 5129.95 (0.56%)

SHRIRAMFIN – 529.35 (0.36%)

DRREDDY – 1255.00 (0.05%)

NIFTY 50 LOSERS

INFY – 1841.05 (-1.83%)

JSWSTEEL – 916.00 (-1.76%)

HCLTECH– 1765.25 (-1.54%)

Sector: Construction

KEC Wins ₹1,445 Cr Orders

KEC International’s share price is in focus today after securing new orders worth ₹1,445 crore for transmission and distribution (T&D) projects in India, including ± 800 kV HVDC and 400 kV transmission line orders from Power Grid Corporation of India (PGCIL). The company’s board will meet on February 3, 2025, to review its financial performance for the quarter and nine months ending December 31, 2024. Earlier this month, KEC bagged orders worth ₹1,136 crore across various segments, adding to December’s orders of ₹1,073 crore. The stock recently traded 36.4% below its 52-week high of ₹1,312 and 35.64% above its 52-week low of ₹615.15. These consistent order wins highlight KEC’s strong business momentum, making it a stock to watch for potential opportunities.

Why it Matters:

KEC International’s consistent order wins, including the ₹1,445 crore T&D projects, highlight its robust growth trajectory in the infrastructure sector. This strengthens its revenue pipeline and market position, making it an attractive opportunity for investors. Additionally, the upcoming financial results could provide insights into its performance and future prospects.

Around the World

Asian stocks fell on Monday after U.S. President Trump imposed 25% trade tariffs on Colombia, sparking fears of more tariffs on countries like Canada, Mexico, and China. Chinese markets were mixed, with gains in tech stocks like Baidu and Alibaba driven by optimism over DeepSeek R1, a new AI model. However, weaker-than-expected PMI data highlighted a slowdown in China’s economy, dampening broader market sentiment. Hong Kong’s Hang Seng index outperformed, rising 0.6%, while Japan’s Nikkei 225 fell 0.4%, and South Korea’s KOSPI stayed flat. Regional volumes were muted due to upcoming holidays, and focus remains on the Federal Reserve meeting this week, with expectations of steady interest rates.

Option Traders Corner

Max Pain

Nifty 50 – 23,350

Bank Nifty – 49,200

Nifty 50 – 23,163 (Pivot)

Support – 22,979, 22,865, 22,681

Resistance – 23,276, 23,460, 23,573

Bank Nifty – 48,476 (Pivot)

Support – 48,094, 47,820, 47,438

Resistance – 48,749, 49,132, 49,405

Did you know?

2 Million Indian Travelled to USA

The number of Indians who travelled to the United States in the first 11 months of 2024, up 26% from the same period last year.