KEC Stock Gains Momentum
- 17th March 2025
Aaj Ka Bazaar
Wall Street saw positive momentum today after a report from the U.S. Labor Department showed a smaller-than-expected rise in consumer prices for February. The Consumer Price Index (CPI) increased by 0.2%, compared to 0.5% in January, which was lower than the anticipated 0.3%. This led to optimism that the Federal Reserve may soon resume interest rate cuts. Asian markets showed mixed results as U.S. President Donald Trump ramped up trade tensions, threatening new tariffs on European Union goods, and signaling possible financial consequences if Russia rejects a ceasefire in Ukraine. On the Indian front, the market opened on a positive note with expectations of further rate cuts, driven by robust industrial production and a slowdown in retail inflation, which hit a seven-month low in February. This painted a favorable picture for the economy, boosting investor sentiment.
Markets Around Us
BSE Sensex – 74,171.03 (0.46%)
Nifty 50 – 22,502.20 (0.47%)
Bank Nifty – 48,409.90 (0.73%)
Dow Jones – 41,296.92 (-0.45%)
Nasdaq – 17,754.09 (2.61%)
FTSE – 8,632.33 (1.53%)
Nikkei 225 – 37,522.50 (1.27%)
Hang Seng – 24,276.64 (1.30%)
Sector: Cement
KEC Interantional Share Surge 6%
KEC International’s stock rose over 6% on March 17 after the company secured new orders worth Rs 1,267 crore across its different business areas. The orders include major projects in the Transmission & Distribution (T&D) sector, like 800 kV HVDC and 765 kV transmission lines in India and the Americas. The company also received orders for supplying cables and conductors in both domestic and international markets. These new wins have strengthened KEC’s position in the growing T&D market, particularly in renewable energy projects. With these orders, KEC’s total order intake for the year has reached over Rs 23,300 crore, reflecting a 35% growth compared to last year. The stock is currently trading significantly below its 52-week high but remains above its 52-week low, which suggests there is still potential for growth. The company’s strong order book and recovery in execution make it well-positioned for future success.
Why it Matters:
KEC International’s new orders boost investor confidence, highlighting strong demand in key sectors like T&D and cables. With a growing order book and solid growth prospects, the company is well-positioned to benefit from India’s expanding energy infrastructure. This positive momentum could lead to higher earnings and potential stock value growth in the coming quarters.
NIFTY 50 GAINERS
INDUSINDBK– 695.15 (3.39%)
DRREDDY – 1141.25 (3.01%)
TATASTEEL – 152 (1.13%)
NIFTY 50 LOSERS
BPCL – 260,40 (-1.52%)
NESTLEIND– 2160.75 (-1.42%)
BRITANNIA – 4669.75 (-1.26%)
Sector : Private Sector Bank
INDUSLND Bank Share Rise 3%
IndusInd Bank’s shares rose over 3% on March 17 after the Reserve Bank of India (RBI) reassured the market that the bank is “well-capitalized” and financially stable. The RBI highlighted the bank’s strong financial position, with a Capital Adequacy Ratio of 16.46%, a Provision Coverage Ratio of 70.2%, and a Liquidity Coverage Ratio of 113%, all above regulatory requirements. This followed concerns about discrepancies in the bank’s derivatives portfolio, which may impact its net worth by around 2.35%. However, the RBI has directed the bank to address the issue by the end of the current quarter. Despite this, the positive outlook from the RBI has reassured investors, leading to the stock’s price increase. The bank is also expected to make required disclosures and take corrective actions soon, which should help limit any significant negative financial impact in the near future.
Why it Matters:
RBI’s assurance of IndusInd Bank’s strong financial health boosts investor confidence, stabilizing its stock. Despite recent concerns over discrepancies in its derivatives portfolio, the bank’s solid capital ratios and liquidity position provide a buffer. This reassures the market, mitigating fears and supporting future growth.
Around the World
Asian currencies remained mostly stable against the U.S. dollar on Monday, as investors awaited key interest rate decisions from the U.S., Japan, China, and Taiwan later this week. The U.S. Dollar Index stayed at 103.71, slightly above a recent four-month low. Investors are particularly focused on the U.S. Federal Reserve’s meeting, expecting no change in interest rates but closely watching comments on tariffs’ impact on inflation. The Bank of Japan is expected to keep its interest rate at 0.5%, despite inflation concerns and trade tensions with the U.S. China’s currency remained steady as the country announced a plan to boost consumption, aiming to support economic growth. China’s industrial production and retail sales showed positive growth, but the unemployment rate rose to 5.4%, signaling ongoing challenges. These developments highlight the importance of government actions to stimulate the economy and achieve growth targets for 2025.
Option Traders Corner
Max Pain
Nifty 50 – 22500
Bank Nifty – 48600
Nifty 50 – 22422 (Pivot)
Support – 22,330, 22,263, 22,149
Resistance – 22,511, 22,624, 22,691
Bank Nifty – 48139 (Pivot)
Support – 47,793, 47,780, 47,580
Resistance – 48,273, 48,486, 48,619
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