Trent Delivers Stylish Growth
- 29th April 2025
Aaj Ka Bazaar
The US market rose overnight as Commerce Secretary said the Trump administration had reached its first trade deal. He declined to name the country involved, adding their prime minister and the parliament will give their approval shortly. Investors shrugged off downbeat economic reports, with the US trade deficit in goods widening to a record high in March, job openings falling to the lowest since September, and consumer confidence sinking to a five-year low, driven by tariffs and recession fears. Asian markets were broadly lower this morning as downbeat factory activity data from China and Japan added to tariff-related worries and fears of a US economic slowdown. Indian markets are poised for a flat start on Tuesday, tracking marginal gains in global markets. The recent upside has been driven by strong Q4FY25 earnings, particularly from Reliance Industries, and easing global trade tensions. Improving domestic economic indicators and optimism around potential RBI rate cuts have further supported investor sentiment. However, caution is creeping in, especially with uncertainties surrounding US trade policies and upcoming earnings.
Markets Around Us
BSE Sensex – 80,232.96 (-0.07%)
Nifty 50 – 24,329.40 (-0.03%)
Bank Nifty – 55,246.25 (-0.26%)
Dow Jones – 40,436.54 (-0.22%)
Nasdaq – 17,463.99 (0.56%)
FTSE – 8,463.46 (0.54%)
Nikkei 225 – 35,905.99 (0.18%)
Hang Seng – 22,028.92 (0.19%)
Sector: Retail
Trent Ltd Shows Strong Growth
Trent Ltd, part of the Tata Group, delivered a strong Q4 performance, driven by its focus on offering trendy yet affordable products. Revenue growth remained solid and is expected to stay stable, supported by rapid store expansion and frequent updates to its product range, which help attract more customers. Newer segments like beauty and personal care, innerwear, and footwear are gaining traction and now contribute about 20% of total revenue. The company’s Star business also saw better operating performance, mainly due to stronger sales of its own brands. Management believes this strategy will continue adding value for both customers and shareholders. Looking ahead, Trent is optimistic about long-term growth, especially through its direct-to-consumer model, expanding into new categories, and growing its store presence. The company will closely track demand trends across major cities and smaller towns, along with the progress of new store openings, which are key for future growth.
Why it Matters:
Trent’s strong performance highlights solid consumer demand and smart execution of its strategy. With growing contributions from emerging categories and rapid store expansion, its revenue outlook remains strong. This positions the company well for long-term growth and market leadership in Indian retail.
NIFTY 50 GAINERS
HDFCLIFE – 735.60 (2.87%)
POWERGRID – 308.75 (1.91%)
HDFCBANK– 1936.90 (1.47%)
NIFTY 50 LOSERS
BAJAJFINSV – 1939.30 (-6.17%)
BAJAJFINANCE – 8655.50 (-4.81%)
TRENT – 5178.00 (-3.96)
Sector : NBFC
Bajaj Finance Delivers Growth
Bajaj Finance delivered a strong Q4FY25 performance, with solid growth in assets under management (AUM) and a sharp rise in profit, helped by favorable tax adjustments. The rise in AUM was driven by strong disbursements in unsecured loans, especially personal and car loans. Net interest income (NII) also grew well. However, there was a slight dip in asset quality, which could indicate early signs of stress in the credit cycle, and this will need close monitoring. Margins were under some pressure due to higher funding costs. Still, Bajaj Finance’s diversified lending portfolio—across both secured and unsecured segments—supports its ability to grow despite macroeconomic challenges. The overall results met expectations, and the company remains well positioned for future growth. Going forward, asset quality trends will be the key area to watch.
Why it Matters:
Bajaj Finance’s strong Q4 performance shows resilience amid emerging credit concerns. Its well-diversified loan portfolio provides stability even in a challenging economic environment. Going forward, asset quality will be crucial to watch for sustained growth.
Around the World
Asian currencies mostly stayed within a narrow range on Wednesday, with the Chinese yuan flat due to weak economic data that showed the impact of the ongoing trade war with the U.S. The Australian dollar performed well, rising after stronger-than-expected inflation data raised questions about future interest rate cuts by the Reserve Bank of Australia. Despite the Chinese yuan’s slight decline, most other Asian currencies posted gains for April, benefiting from a weaker dollar amid uncertainty over U.S. policies. The Japanese yen stood out as the best performer, driven by higher demand for safe-haven assets. The South Korean won, Singapore dollar, and Taiwan dollar saw small losses in April, while the Indian rupee remained mostly stable despite political tensions between India and Pakistan. Market focus is now shifting to the Bank of Japan’s meeting, where no major changes in interest rates are expected.
Option Traders Corner
Max Pain
Nifty 50 – 24350
Bank Nifty – 54700
Nifty 50 – 24361 (Pivot)
Support – 24,265, 24,194, 24,098
Resistance – 24,432, 24,528, 24,599
Bank Nifty – 55537 (Pivot)
Support – 55,116, 54,841, 54,421
Resistance – 55,811, 56,232, 56,507
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