Record Growth for Kalyan
- 07th January 2025
Aaj Ka Bazaar
The US market rose broadly overnight, the dollar dropped, and yields on long-term Treasury securities increased as Foxconn reported record fourth-quarter revenue. President-elect Donald Trump called reports about him considering scaling back his tariff plans “fake news.” The Asian market was mainly higher this morning after a rally in technology shares boosted Wall Street’s main indexes overnight. Oil steadied after its first drop in six sessions, while gold ticked higher as investors awaited more US economic data this week for additional clues on the Fed’s rate trajectory. Indian markets are expected to remain under selling pressure on Tuesday despite positive global cues led by the decline to high valuations, weak business updates from banks and FMCG firms, and concerns over the spread of human metapneumovirus (HMPV). Tightening liquidity, slowing deposit growth, and foreign portfolio investor (FPI) outflows have further dampened sentiment.
Markets Around Us
BSE Sensex –78,019.80 (0.07%)
Nifty 50 – 23,679.90 (0.27%)
Bank Nifty – 50,061.20 (0.28%)
Dow Jones – 42,630.97 (-0.25%)
Nasdaq – 19,867.81 (1.25%)
FTSE – 8,249.66 (0.31%)
Nikkei 225 – 40,109.18 (2.04%)
Hang Seng – 19,335.49 (-1.82%)
Sector: Jewellery
Kalyan Jewellers Thrives on Festive Demand
Kalyan Jewellers reported a strong 39% growth in consolidated revenue for the December quarter, driven by robust festive and wedding demand. Its India operations saw a 41% increase, with notable demand in both gold and studded jewelry. Same-store sales grew by 24%, and the company opened 24 new showrooms in India, with more planned for the coming quarter. Looking ahead to FY26, Kalyan plans to launch 170 showrooms, including 75 in non-south India, 15 in south India and international markets, and 80 under its Candere brand. The company also expanded internationally by opening its first showroom in the U.S. Revenue from the Middle East rose 22%, contributing 11% of total revenue, while Candere, its digital-first platform, grew by 89% and added 23 showrooms. Over the past year, Kalyan Jewellers’ shares have surged by more than 108%, reflecting strong investor confidence in its growth strategy.
Why it Matters:
Kalyan Jewellers’ strong performance highlights the significant demand in the festive and wedding sectors, indicating a robust growth opportunity for the company. Its strategic showroom expansions and digital growth are key drivers for long-term success. This solid financial performance, combined with a share price surge, makes it an attractive option for investors.
NIFTY 50 GAINERS
APOLLOHOSP – 7440.00 (1.94%)
TATACONSUM – 950.00 (1.12%)
TITAN – 3476.50 (0.72%)
NIFTY 50 LOSERS
TATASTEEL – 132.00 (-4.60%)
TRENT – 6989.95 (-4.35%)
BPCL – 285.50 (-3.68%)
Sector: Real Estate
Ashoka Buildcon Surges on NHAI Deal
Ashoka Buildcon shares rose over 4% to ₹290 after its subsidiary signed a deal with NHAI for a ₹1,391 crore project in West Bengal. The project involves building a four-lane road on NH 116A under the hybrid annuity model and will take 910 days to complete. Recently, the company also secured a ₹1,055 crore contract with Bangalore International Airport for constructing taxiways and other infrastructure, set to finish in 24 months. Ashoka Buildcon reported a massive 334% rise in Q2 net profit to ₹462.5 crore, with revenue up 15.5% and EBITDA margins improving significantly to 36.4%. The stock has rallied over 25% in the past three months, outperforming the Nifty 50 index, and hit a 52-week high of ₹319 on December 31, 2024. This strong performance reflects the company’s robust order book and operational efficiency, making it a key player in infrastructure development.
Why it Matters:
Ashoka Buildcon’s strong project wins, including a ₹1,391 crore NHAI deal and a ₹1,055 crore airport contract, highlight its growing presence in infrastructure development. Its robust financial performance, with a 334% profit rise in Q2, showcases operational strength. The stock’s outperformance signals investor confidence in its growth trajectory.
Around the World
Asian stock markets saw gains on Tuesday, driven by a rebound in technology shares following strong performance on Wall Street. Japan’s Nikkei 225 surged 2.4%, and South Korea’s KOSPI rose 0.9%, supported by optimism around artificial intelligence, particularly NVIDIA’s anticipated announcements at a major tech event. Meanwhile, Chinese markets underperformed, with the Hang Seng index falling 0.5% as Tencent and CATL dropped over 5% after being added to a U.S. blacklist, raising concerns over trade tensions between the U.S. and China. Broader Asian markets showed modest gains, with Australia’s ASX 200 up 0.2% and Singapore’s Straits Times Index rising 0.1%. In India, Nifty 50 futures indicated a slight recovery after a sharp 1.6% drop on Monday due to weak earnings from major firms like HDFC Bank and Dabur. Despite Tuesday’s gains, regional markets remained cautious about prolonged U.S. interest rate hikes and ongoing trade uncertainties.
Option Traders Corner
Max Pain
Nifty 50 – 23,755
Bank Nifty – 50,181
Nifty 50 – 23,752 (Pivot)
Support – 23,415, 23,214, 22,877
Resistance – 23,953, 24,290, 24,491
Bank Nifty – 50,233 (Pivot)
Support – 49,439, 48,957, 48,164
Resistance – 50,715, 51,508, 51,990
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.
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