Escorts Kubota Sales Drop
- 01st January 2025
Aaj Ka Bazaar
The weakness on Wall Street extended the sharp pullback seen over the two previous sessions as some traders cashed in on this year’s substantial gains. Despite the recent softness, the major averages still posted standout gains for 2024, with the tech-heavy Nasdaq soaring by nearly 30% for the year. The Dow also surged by almost 13% for the year, while the S&P 500 posted its second consecutive yearly gain of more than 20%, spiking by more than 23%. Asian markets, including China, Japan, Australia, New Zealand, Taiwan, Hong Kong and South Korea, remain closed today for the New Year 2025 holiday. Crude oil prices ended higher on Tuesday but ended 2024 with a 3% loss, slipping for a second straight year amid persisting concerns about the outlook for global oil demand due to weak Chinese growth and uncertainty about interest-rate trajectory. Indian market looks set to open lower on Wednesday, the first trading session of the New Year 2025, due to ongoing concerns about a firmer dollar and elevated US Treasury yields. On stock-specific news, ITC will be focused as the company is set to finalise the demerger of its hotel business, with January 1, 2025, as the effective date.
Markets Around Us
BSE Sensex –77,960.83 (-0.23%)
Nifty 50 – 23,580.70 (-0.27%)
Bank Nifty – 50,612.20 (-0.26%)
Dow Jones – 42,540.54 (-0.08%)
Nasdaq – 19,305.25 (-0.93%)
FTSE – 8,173.02 (0.64%)
Nikkei 225 – 39,894.54 (0.00%)
Hang Seng – 20,059.95 (0.00%)
Sector: Tractors
ITC Hotels Gains ₹1,500 Crore Boost
Shares of Escorts Kubota Ltd fell by over 3% on January 1, 2025, after the company reported a 10.82% drop in tractor sales for December compared to the same month last year. The company sold 5,472 tractors in December, down from 6,136 in December 2024. This news ended the company’s three-day streak of stock gains. The stock reached an intraday low of Rs 3,225.55 per share, down 3.21%, and was trading at Rs 3,248.25 per share by 10 a.m., down 2.53%. Despite the drop in sales, the company’s revenue for the second quarter remained almost the same as last year at Rs 2,488.5 crore, and it posted a strong 54% growth in net profit to Rs 324 crore. The company’s EBITDA also stayed stable at Rs 265 crore, and its margin was steady at 10.6%.
Why it Matters:
The drop in tractor sales signals a slowdown in demand, which impacts Escorts Kubota’s growth outlook. This decline affects investor sentiment, leading to a fall in stock price. As tractor sales are a key revenue driver, this could influence future earnings and the company’s financial stability.
NIFTY 50 GAINERS
APOLLOHOSP – 7385.00 (1.21%)
ASIANPAINT – 2298.00 (0.73%)
LT – 3630.55 (0.63%)
NIFTY 50 LOSERS
BAJAJAUTO – 8627.85 (-1.94%)
ADANIPORTS – 1368.95 (-1.41%)
DRREDDY – 1368.95 (-1.41%)
Sector: Power generation
SJVN Stocks jumps 6.5% after MoU
SJVN’s stock surged 6.5% on January 1, 2025, after the company signed a Memorandum of Understanding (MoU) with the Bihar government for a Rs 5,663 crore project. The company will develop the 1,000 MW Hathidah Durgawati Pumped Storage Project (PSP), which will create jobs and attract investments. The project will have a tariff of Rs 9.39 per kWh and is expected to generate a daily peak output of 6.325 million units of energy. SJVN is also working on other pumped storage projects in Bihar and across various states. The announcement sparked heavy trading, with over two crore shares changing hands, far above the usual monthly average. This project is part of SJVN’s broader plan to develop about 12,000 MW of power storage projects, which strengthens the company’s position in the energy sector.
Why it Matters:
The MoU with the Bihar government boosts SJVN’s growth prospects, significantly increasing its project portfolio. The Hathidah Durgawati project enhances the company’s energy capacity and employment generation. The stock surge reflects investor confidence in the company’s future earnings and market expansion.
Around the World
Asian stocks remained subdued on Wednesday, following a decline on Wall Street due to low trading volumes as the year draws to a close. Many markets, including Japan, South Korea, and Thailand, were closed for the day, while others like Hong Kong and Australia had shorter sessions. Chinese manufacturing data for December showed continued growth for the third month, supported by recent stimulus measures, but the slower-than-expected expansion raised concerns about the country’s economic recovery amidst its ongoing property crisis. Chinese markets saw slight losses, while Hong Kong gained 0.5%. Investors are waiting for more details on Beijing’s fiscal policy. Australia’s ASX 200 dropped 0.8%, reflecting concerns over China’s economic performance. India’s Nifty 50 Futures fell 0.1%, and Malaysia’s KLCI saw a marginal dip. Meanwhile, political uncertainty continues in South Korea, as President Yoon Suk Yeol faces controversy following his impeachment. South Korean markets remained closed today.
Option Traders Corner
Max Pain
Nifty 50 – 23,800
Bank Nifty – 52,000
Nifty 50 – 23,598 (Pivot)
Support – 23,506, 23,368, 23,227
Resistance – 23,736, 24,827, 23,965
Bank Nifty – 50,801 (Pivot)
Support – 50,658, 50,456, 50,312
Resistance – 51,003, 51,114, 51,349
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