HDFC Shares Rise 3.8%
- 15th April 2025
Aaj Ka Bazaar
The overall global market outlook remain positive for today’s trading session, with gains recorded across markets. The US market ended higher on Monday, albeit modestly with Apple leading the gaon across indices as the US administration exempted smartphones and computers from its tariff portfolio. Uncertainty over future tariffs capping potential optimism, with concerns over how companies will navigate their supply chain amidst the tariff chaos. On the Asian front, Nikkei started off with a robust debut, largely on the back of the broader equity market rebound with Automotives, Technology, and export linked shares being the key growth drivers further aided by weaker yen, boosting the sentiments of exports. Hang Seng however experienced a steep declines from its debut, with concerns of failing tariff negotiation weighing in on the investor sentiment. On account of the positive global market landscape, the the domestic indices are likely to remain buoyant during the day, the expectations being further bolstered by the positive cue from GIFT Nifty. We expect Pharma stocks to likely be in light during the trading session, owing to dynamic changes in the landscape with the onset of Trump’s hefty 145% tariff on China, which will likely pressurize the supply chain of Indian pharma companies.
Markets Around Us
BSE Sensex – 76,771.05 (2.15%)
Nifty 50 – 23,310.95 (2.11%)
Bank Nifty – 52,191.75 (2.32%)
Dow Jones – 40,536.93 (0.03%)
Nasdaq – 16,831.48 (0.64%)
FTSE – 8,134.25 (2.05%)
Nikkei 225 – 34,314.41 (0.98%)
Hang Seng – 21,457.61 (0.19%)
Sector: Banking
Rate Cut Sparks 4% HDFC Surge
HDFC Bank shares rose 3.8% in early trade on Tuesday, hitting ₹1,875 on the NSE after the bank cut its savings account interest rate by 25 basis points to 2.75%, effective April 12. This is now the lowest rate among major private sector banks, with ICICI and Axis Bank still offering 3% on similar balances. The move follows the RBI’s second repo rate cut of the year and is likely aimed at reducing the bank’s cost of funds to support margins in a falling interest rate environment. While this may help improve profitability, it could also raise concerns among depositors in a competitive market. Since merging with HDFC in July 2023, the bank’s credit-deposit ratio has risen above 100%, putting more focus on growing its deposit base. By lowering savings rates, the bank may be encouraging customers to move funds into higher-return products like fixed or recurring deposits, which offer more stability.
Why it Matters:
HDFC Bank’s savings rate cut helps lower its funding costs, which can support profit margins. It may also encourage customers to shift funds into term deposits, improving long-term deposit stability. This move reflects how banks are adjusting to a softer interest rate environment following recent RBI rate cuts.
NIFTY 50 GAINERS
INDUSINDBK – 731.15 (6.04%)
TATAMOTORS – 622.90 (4.68%)
LT– 3255.00 (4.46%)
NIFTY 50 LOSERS
HINDUNILVR – 2352.50 (-0.58%)
NESTLEIND – 2355.40 (-0.25%)
ITC- 420.85 (-0.17)
Sector : Auto Components
High Volume Lifts Sona BLW Shares
Sona BLW Precision Forgings shares jumped 5.44% to ₹454.85 in today’s session, backed by trading volumes well above the 20-day average. This spike signals strong investor interest, likely driven by market optimism or potential developments within the company. Sona BLW is part of several major indices like NIFTY 500 and NIFTY Midcap 100, reflecting its importance in the auto components sector. Financially, the company has shown solid growth, with revenue rising from ₹538.69 crore in 2020 to ₹2,891.83 crore in 2024, and net profit climbing from ₹84.08 crore to ₹484.48 crore in the same period. Its EPS has also improved over time, though recent quarterly figures show some fluctuations. Despite strong fundamentals, current investor sentiment is cautious, with the stock closing at ₹455.25 on April 15, 2025. Overall, today’s price action suggests growing interest in the stock amid a volatile market and sector-focused momentum.
Why it Matters:
Sona BLW’s sharp rise in price and volume reflects renewed investor interest backed by strong financial growth. Its presence in key market indices underlines its importance in the auto components space. While short-term sentiment remains cautious, the company’s fundamentals point to solid long-term potential.
Around the World
Most Asian stocks rose on Tuesday, supported by hopes that U.S. President Trump would grant more exemptions from his trade tariffs, although concerns about the trade war and additional tariffs limited gains. Chinese stocks were mixed as Beijing faced tensions with the U.S., with some relief from tariff exemptions but uncertainty over their temporary nature. Markets in Asia were lifted by a positive Wall Street lead, where gains were driven by optimism over tariff exemptions and strong bank earnings. Tech and auto stocks, particularly in Japan and South Korea, saw strong performances, with Japanese carmakers Honda and Toyota surging after Trump suggested he might reduce auto tariffs. Chinese stocks, however, faced pressure amid the trade conflict and fears of economic slowdown, with analysts lowering growth forecasts. Investors are awaiting China’s GDP data, due Wednesday, to see if stimulus measures have helped boost growth.
Option Traders Corner
Max Pain
Nifty 50 – 23200
Bank Nifty – 51600
Nifty 50 – 22815 (Pivot)
Support – 22,708, 22,587, 22,479
Resistance – 22,936, 23,044, 23,165
Bank Nifty – 50960 (Pivot)
Support – 50,676, 50,349, 50,065
Resistance – 51,286, 51,570, 51,897
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