Tata Chemicals Faces Losses
- 04th February 2025
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
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