Sun TV Crashes 7%
- 10th February 2025
Aaj Ka Bazaar
Wall Street ended sharply lower on Friday, with benchmark Treasury yields climbing in response to a mixed U.S. payrolls report, disappointing consumer sentiment data, and renewed trade war concerns. U.S. futures declined after President Trump announced he would reveal new steel and aluminum tariffs on Monday, along with reciprocal tariffs aimed at other countries. In Asia, however, markets showed an upward trend, as both the Nikkei and Hang Seng indices reported solid gains driven by a rally in technology stocks. On the domestic front, Indian indices are drawing attention following the Delhi Assembly elections, where the BJP emerged victorious after 26 years. Given the global market dynamics, Indian equity benchmarks are anticipated to open flat on Monday, influenced by the global trade anxieties stemming from Trump’s tariff decisions.
Markets Around Us
BSE Sensex -77,977.28 (-0.10%)
Nifty 50 – 23,416.15 (-0.61%)
Bank Nifty – 49,915.20 (-0.49%)
Dow Jones – 44,392.78 (0.20%)
Nasdaq – 19,525.73 (-1.35%)
FTSE – 8,700.53 (-0.31%)
Nikkei 225 – 38,828.48 (0.11%)
Hang Seng – 21,435.42 (1.43%)
Sector: TV Broadcasting
Sun TV Falls on Weak Q3 Margins
Sun TV Network shares dropped over 7% on February 10 after the company posted weak Q3 results. Net profit fell 20% year-on-year to ₹363 crore from ₹453.9 crore in Q3 FY24, while revenue declined 10.4% to ₹827.6 crore. The company’s advertising revenue also dropped to ₹332.17 crore from ₹355.43 crore a year ago, impacting overall performance. The biggest concern was a sharp fall in EBITDA margins, which dropped to 53.7% from 63.8% last year due to weaker ad revenue and higher costs. Investors reacted negatively to the earnings report, leading to the stock decline.
Why it Matters:
Sun TV’s weak Q3 earnings highlight struggles in the media sector, with declining ad revenue and shrinking profit margins. A 20% drop in net profit and a sharp fall in EBITDA margins signal operational challenges. The 7% stock decline shows investor concerns over future growth and profitability.
NIFTY 50 GAINERS
BRITANNIA – 4979.35 (2.24%)
BHARTIARTL – 1692.55 (0.94%)
HINDUNILVR – 2384.00 (0.85%)
NIFTY 50 LOSERS
TATASTEEL – 133.79 (-3.27%)
JSWSTEEL – 953.20 (-2.81%)
POWERGRID – 271.00 (-2.57%)
Secto: Defense
Bharat Electronics Rises on ₹962 Cr Orders
Bharat Electronics (BEL) secured new orders worth ₹962 crore, including ₹352 crore since January 28, 2025. These contracts cover anti-drone systems, fuzes, fire detection systems, vessel communication systems, spares, and services. With this, BEL’s total orders for the financial year now stand at ₹11,855 crore. In Q3, BEL’s revenue surged 37% year-on-year to ₹5,643.25 crore, while net profit soared 47% to ₹1,316.06 crore. The biggest highlight was its EBITDA margin expanding by 330 basis points to 28.7%, far exceeding its 23-25% guidance over the last six to eight quarters.
Why it Matters:
Bharat Electronics’ strong order inflow boosts its revenue visibility and growth prospects. The sharp rise in profitability and margins signals operational efficiency and strong demand for its defense products. Beating margin guidance consistently strengthens investor confidence in the company’s long-term potential.
Around the World
Asian stock markets had a mixed start this week, with most indices falling after U.S. President Donald Trump announced new 25% tariffs on all steel and aluminum imports, raising trade tensions. China plans to retaliate with tariffs on U.S. goods, adding to market uncertainty. Mining and steel stocks in South Korea, Japan, and Australia declined, while Indonesia’s market dropped 2% and India’s Nifty 50 fell 0.4%. However, Chinese AI stocks, including Baidu and Alibaba, surged, driving Hong Kong’s Hang Seng up 1.5%. China’s Shanghai Composite gained 0.4%, supported by investor optimism in AI and expectations of government stimulus. Inflation data showed weak consumer and industrial demand, increasing speculation that Beijing might introduce economic support, such as interest rate cuts or infrastructure spending. Despite trade concerns, AI-related stocks in China remained strong, helping offset broader market weakness. Meanwhile, U.S. stock index futures were trading higher in Asia hours, providing some relief to investors.
Option Traders Corner
Max Pain
Nifty 50 – 23,500
Bank Nifty – 50,400
Nifty 50 – 23,565 (Pivot)
Support – 23,437, 23,314, 23,185
Resistance – 23,688, 23,817, 23,938
Bank Nifty – 50,223 (Pivot)
Support – 49,806, 49,453, 49,035
Resistance – 50,576, 50,994, 51,347
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