StockReport Archive

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.

To view the detailed report click here to Download

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.

Have you checked our latest YouTube Video

Newsletter: 24th January 2025

Mankind Pharma Faces Pressure

Aaj Ka Bazaar

Wall Street indices gained on Wednesday, driven by optimism surrounding President Donald Trump’s private-sector investment plan for AI infrastructure, which bolstered technology stocks. The S&P 500 rose by 0.61%, the Dow Jones Industrial Average climbed 0.30%, and the tech-heavy Nasdaq Composite climbed 1.28%. In the Asia-Pacific markets, stocks opened on a mixed note as investors reacted to varying regional economic data. Indian benchmark indices are expected to open slightly lower, as suggested by the GIFT Nifty trading marginally in the red, reflecting mixed global cues. On the stock-specific front, Bharat Petroleum Corporation Ltd. (BPCL) announced that its board has approved the submission of a development plan for the Nunukan block’s oil and gas reserves to the Indonesian regulator, with an estimated investment of $121 million. Additionally, BPCL’s board approved the formation of a joint venture with Praj Industries Ltd. to set up Compressed Bio Gas (CBG) plants across India.

Markets Around Us

BSE Sensex –76,318.43 (-0.11%)

Nifty 50 – 23,112.85 (-0.18%)

Bank Nifty – 48,568.45 (-0.32%)

Dow Jones – 44,1584.78 (0.01%)

Nasdaq – 20,015.54 (0.61%)

FTSE – 8,545.13 (-0.04%)

Nikkei 225 – 39,907.32 (0.65%)

Hang Seng – 19,821.26 (0.21%)

Sector: Pharmaceuticals

Mankind Pharma Falls 6% on Q3

Shares of Mankind Pharma dropped nearly 6% after the company reported a 16% year-on-year decline in net profit for the October-December quarter, falling to ₹385 crore due to higher expenses. The $1.6 billion acquisition of Bharat Serums and Vaccines (BSV), which began in October, also impacted profits. However, revenue rose 24% to ₹3,230 crore, supported by an increased market share in the domestic market from the BSV acquisition and leadership in gynae therapy. Despite the profit drop, the company’s EBITDA margin improved by 240 basis points to 25.8%, driven by a better product mix. Rising costs, including a significant jump in finance expenses and higher employee-related costs, weighed on the overall performance. At 9:51 am, the stock was trading at ₹2,515.25 on the NSE. Indian pharma companies, including Mankind Pharma, continue to grow due to strong domestic demand and new launches in specialty and chronic illness segments.

Why it Matters:

Mankind Pharma’s profit decline and rising expenses highlight the challenges of integrating large acquisitions like BSV while managing costs. Despite this, the revenue growth and improved EBITDA margin signal strong domestic demand and leadership in key segments. Traders should watch how the company balances growth and profitability in upcoming quarters.

NIFTY 50 GAINERS

WIPRO – 314.45 (1.73%)

ULTRACEMCO – 10865.85 (1.61%)

TECHM – 1699.90 (0.95%)

NIFTY 50 LOSERS

HINDUNILVR – 2267.50 (-3.22%)

NESTLEIND – 2170.00 (-1.71%)

LT– 3483.60 (-0.98%)

Sector: Telecom

Indus Tower Gains on Strong Q3

Indus Towers’ stock after the company reported strong Q3 results, with net profit jumping 159.9% year-on-year to ₹4,003 crore, driven by overdue payments from Vodafone Idea and significant tower additions. Revenue increased 4.8% to ₹7,547 crore compared to the same quarter last year. The company’s average sharing factor per tower stood at 1.65, with net lean colocation additions reaching 132 during the quarter. Indus secured a dominant share of Vodafone Idea’s rollouts, indicating strong tenancy growth. Citi Research maintained a ‘buy’ rating with a target price of ₹485, expecting a 32% upside from the current price of ₹370, citing robust free cash flow and potential dividend payouts in the coming quarters. This performance reflects the company’s strong execution capabilities and strategic positioning in the telecom infrastructure space, making it a key stock to watch for both traders and investors.

Why it Matters:

Persistent Systems’ strong Q3 results highlight its solid growth trajectory, improved margins, and robust deal pipeline exceeding $1 billion. Despite mixed brokerage views, its ability to secure large deals and expand into new verticals showcases long-term potential. The stock’s surge indicates market confidence, making it a key player to watch in the IT sector.

Around the World

Asian stocks mostly rose on Friday, following record highs on Wall Street and optimism over more economic support from China. Japan’s Nikkei 225 and TOPIX gained slightly despite the Bank of Japan hiking interest rates by 25 basis points, signaling more hikes ahead amid rising inflation and slower growth forecasts. Chinese markets also rose, supported by government policies encouraging investment in local equities, while Hong Kong’s Hang Seng rallied 1.7% on chipmaking stock gains. South Korea’s KOSPI gained 0.8% due to optimism over a U.S. artificial intelligence project. Australia’s ASX 200 added 0.5%, while Singapore’s market dipped after the central bank loosened monetary policy. Meanwhile, India’s Nifty 50 futures indicated a flat open near seven-month lows. Investors are also focused on next week’s U.S. Federal Reserve meeting, where rates are expected to remain unchanged. Chinese markets prepare for the Lunar New Year, with key PMI data due Monday.

Option Traders Corner

Max Pain

Nifty 50 – 23,250

Bank Nifty – 49,600

Nifty 50 – 23,102 (Pivot)

Support – 23,034, 22,913, 22,846

Resistance – 23,222, 23,290, 23,411

Bank Nifty – 48,526 (Pivot)

Support – 48,271, 47,819, 47,564

Resistance – 48,879, 49,234, 49,687

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 Brand Ad

Newsletter: 23rd January 2025

Polycab Bounces Back Strong

Aaj Ka Bazaar

Markets Around Us

BSE Sensex –76,318.43 (-0.11%)

Nifty 50 – 23,112.85 (-0.18%)

Bank Nifty – 48,568.45 (-0.32%)

Dow Jones – 44,1584.78 (0.01%)

Nasdaq – 20,015.54 (0.61%)

FTSE – 8,545.13 (-0.04%)

Nikkei 225 – 39,907.32 (0.65%)

Hang Seng – 19,821.26 (0.21%)

Sector: Cables-Electricals

Polycab Gains 3% After Strong Q3

Polycab India’s shares rose over 3% to ₹6,380 in early trade on January 23, bouncing back after a two-day losing streak, driven by its Q3 results. The company reported an 11% increase in net profit to ₹457.57 crore and a 20% rise in revenue to ₹5,226 crore compared to the same period last year, marking its highest-ever Q3 revenue. Despite slightly missing revenue estimates, its EBITDA exceeded expectations, supported by better margins in the wires and cables segment and reduced losses in the FMEG business. Brokerages like UBS, Citi, Jefferies, and Macquarie remain bullish on the stock, with price targets ranging from ₹7,537 to ₹9,220, citing its strong medium-term growth potential in capex and housing. Polycab has already exceeded its FY26 revenue goal and projects a steady revenue and profit growth trajectory. Shares are still down 15% year-to-date but show promising recovery signs.

Why it Matters:

Polycab India’s strong Q3 results and improved margins signal robust business performance, making it a promising stock for traders and investors. Major brokerages remain bullish with high target prices, indicating significant growth potential. Its success in exceeding revenue targets ahead of schedule highlights its leadership in the wires and cables market, despite near-term challenges.

NIFTY 50 GAINERS

WIPRO – 314.45 (1.73%)

ULTRACEMCO – 10865.85 (1.61%)

TECHM – 1699.90 (0.95%)

NIFTY 50 LOSERS

HINDUNILVR – 2267.50 (-3.22%)

NESTLEIND – 2170.00 (-1.71%)

LT– 3483.60 (-0.98%)

Sector: Computers-software & Consulting

Persistent Jumps 7% Amid Mixed Review

Persistent Systems surged over 7% after the company reported strong Q3 results, with a 15% sequential and 30% year-on-year rise in net profit to ₹372.99 crore. Revenue grew 6% QoQ and 23% YoY to ₹3,062.3 crore. The IT firm impressed with improved margins and a robust order pipeline exceeding $1 billion, backed by large deals in the energy sector. However, brokerages offered mixed views. Nuvama and Motilal Oswal are bullish, citing strong growth potential despite high valuations, with targets of ₹7,000 and above. Meanwhile, Nomura and HSBC took a cautious approach, highlighting valuation concerns but acknowledging steady deal wins. Citi remained bearish, raising its target to ₹5,000 but maintaining a sell rating due to stretched valuations. Despite the mixed outlook, Persistent’s strong execution and growth in non-healthcare verticals stand out, making it a stock to watch.

Why it Matters:

Around the World

Most Asian markets rose on Thursday, led by gains in Japan and China. Japanese stocks, up 0.5%, gained ahead of an expected Bank of Japan rate hike, which is largely priced in, while inflation and PMI data are due Friday. Chinese markets rebounded, with the Shanghai Composite rising 0.7%, boosted by Beijing’s plans to direct state insurers to invest in local stocks, signaling more government support amid trade tariff challenges. South Korea’s KOSPI fell 0.9% on weak GDP data and profit-taking in tech stocks like SK Hynix, despite its record profits. Broader Asian markets saw mixed performance, with Australia’s ASX 200 falling 0.6% and Singapore’s Straits Times index gaining 0.6%. Wall Street futures cooled in Asian trade after a rally on Wednesday fueled by AI investment announcements and strong earnings, with the S&P 500 briefly hitting record highs.

Option Traders Corner

Max Pain

Nifty 50 – 23,250

Bank Nifty – 49,600

Nifty 50 – 23,102 (Pivot)

Support – 23,034, 22,913, 22,846

Resistance – 23,222, 23,290, 23,411

Bank Nifty – 48,526 (Pivot)

Support – 48,271, 47,819, 47,564

Resistance – 48,879, 49,234, 49,687

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 Brand Ad

Newsletter: 22nd January 2025

Cyient Investors Face Shock

Aaj Ka Bazaar

Wall Street indices were up on Tuesday, with the S&P 500 and the Dow reaching their highest levels in over a month, as investors reacted to Donald Trump’s initial actions as US president. His comments on international trade were perceived to be less aggressive than anticipated. The Dow Jones Industrial Average rose by 1.24%, the S&P 500 gained 0.88%, and the Nasdaq Composite gained 0.64%. In the Asian markets, most stocks advanced as Trump’s emphasis on boosting investment in AI improved the outlook for regional tech firms. After closing at their lowest levels since June, the Indian markets are expected to open on a slightly positive note, tracking global gains, as indicated by GIFT Nifty. On the stock-specific front, Adani Energy Solutions Ltd., India’s largest private transmission and distribution company, secured a Rs. 25,000 crores contract for the Bhadla (Rajasthan) to Fatehpur (Uttar Pradesh) HVDC transmission project. This marks its largest order win to date, boosting its order book to Rs. 54,761 crores and expanding its transmission network to 25,778 km with a transformation capacity of 84,186 MVA.

Markets Around Us

BSE Sensex –76,184.30 (0.46%)

Nifty 50 – 23,089.70 (0.28%)

Bank Nifty – 48,633.60 (0.13%)

Dow Jones – 44,084.07 (0.13%)

Nasdaq – 19,753.89 (0.63%)

FTSE – 8,548.29 (0.32%)

Nikkei 225 – 39,631.50 (1.57%)

Hang Seng – 19,836.29 (-1.36%)

Sector: Industrial Product

Cyient DLM Falls 12% on Q3 Weakness

Cyient DLM shares dropped 12% on January 22 after the company reported a steep decline in net profit and margins for the December quarter. At 9:35 AM, the stock was trading 10% lower at ₹533, extending its 18% loss over the past year, significantly underperforming the Nifty 50’s 3% drop. Consolidated net profit fell 30% sequentially and 40% year-on-year to ₹11 crore, while EBITDA margins dropped to 8.1% from 9.2% a year ago, impacted by higher costs from integrating Altek Electronics, a U.S.-based EMS company. However, revenue from operations grew to ₹444.2 crore in Q3FY25, up 38% year-on-year and 14% from the previous quarter, with EBITDA also rising to ₹35.9 crore. Despite revenue growth, higher expenses and shrinking margins have weighed on the stock, raising concerns among investors.

Why it Matters:

This matters because Cyient DLM’s sharp profit decline and shrinking margins raise concerns about cost management and future profitability, despite revenue growth. The stock’s significant underperformance against the market reflects reduced investor confidence. It highlights the impact of rising expenses from acquisitions on financial performance.

NIFTY 50 GAINERS

APOLLOHOSP – 6939.90 (2.35%)

ULTRACEMCO – 10869.85 (2.31%)

WIPRO – 304.40 (1.38%)

NIFTY 50 LOSERS

ADANIENT – 2422.50 (-0.83%)

ONGC – 267.16 (-0.82%)

TRENT– 6042.00 (-0.79%)

Sector: Internet & Catalogue

Indiamart Slumps 10% on Weak Q3

Indiamart Intermesh shares fell 10% to ₹2,065 on January 21, despite a 47.6% YoY jump in Q3 net profit to ₹121 crore and a 16% rise in revenue to ₹354.3 crore. While EBITDA surged 61.4% to ₹138.3 crore, concerns emerged over a decline in paying subscribers for the first time since COVID and weak standalone collection growth of 8% YoY. Management’s guidance of sub-10% collection growth for future quarters, coupled with high customer churn and low retention, has raised doubts about medium-term growth. Brokerages like Nuvama and Nomura downgraded the stock, citing subdued collection trends and reduced profit estimates for FY25-27 by 4-13%. Nuvama set a target price of ₹1,970, while Nomura lowered it to ₹1,900. The stock has dropped 9% over the past three months, reflecting investor concerns over slow subscriber growth despite temporary boosts in profitability from reduced marketing costs.

Why it Matters:

This matters because Indiamart’s decline in paying subscribers and weak collection growth signal potential long-term challenges for its business model, despite strong profit and revenue numbers. Investor confidence is shaken as brokerages downgrade the stock, citing slow growth, high churn rates, and reduced medium-term profit expectations. These issues could impact its ability to sustain growth and compete effectively in a dynamic market.

Around the World

Asian stocks rose on Wednesday, led by technology shares, after OpenAI announced a $500 billion partnership with major U.S. firms to build AI infrastructure, boosting demand for AI chips and tech equipment. Japan’s Nikkei 225 jumped 1.5%, while South Korea’s KOSPI and Taiwan’s TSMC gained as optimism around AI lifted chipmakers and tech stocks. However, Chinese markets lagged, with the Shanghai Composite down 0.8%, as U.S. President Trump hinted at imposing 10% tariffs on Chinese imports by February over fentanyl-related issues. This reignited trade war concerns, even as Chinese stimulus measures are expected. Meanwhile, Wall Street’s tech rally, driven by strong Netflix earnings, added positive momentum to most Asian markets, with Australia’s ASX 200 and Indian Nifty 50 futures also showing slight gains. However, Hong Kong’s Hang Seng fell 1.3%, reflecting caution amid ongoing trade uncertainties.

Option Traders Corner

Max Pain

Nifty 50 – 23,300

Bank Nifty – 50,000

Nifty 50 – 23,142 (Pivot)

Support – 22,858, 22,693, 22,409

Resistance – 23,308, 23,592, 23,757

Bank Nifty – 48,848 (Pivot)

Support – 48,153, 47,736, 47,041

Resistance – 49,265, 49,960, 50,340

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.