Titan Shines with Growth
- 05th February 2025
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.
