KEY ECONOMIC INDICATORS
WORLD ECONOMIC INDICATORS
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Stocks
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Change
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|---|---|
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🇮🇳 Nifty 50
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- 0.47%
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🇮🇳 Sensex
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- 0.55%
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|
🇮🇳 India VIX
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- 1.47%
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|
🇺🇸 S&P 500
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+ 0.87%
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🇺🇸 Nasdaq
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- 0.27%
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🇺🇸 Dow Jones
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+ 1.24%
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🇪🇺 Euro Stoxx
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+ 0.80%
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🇨🇳 China A50
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- 0.01%
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🇨🇳 DJ Shanghai
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+ 0.41%
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🇬🇧 FTSE 100
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+ 1.35%
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🇯🇵 Nikkei 225
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- 0.41%
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🇮🇩 IDX Composite
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+ 0.66%
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🇸🇦 Tadawul All Share
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+ 0.36%
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TOP GAINERS ON THE INDIAN STOCK MARKET
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Stocks
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Change
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|---|---|
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Reliance Industries
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+ 2.57%
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Nestle India
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+ 2.26%
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Tata Steel
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+ 1.96%
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Asian Paints
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+ 1.95%
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ITC
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+ 1.70%
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TOP LOSERS ON INDIAN STOCK MARKET
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Stocks
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Change
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|---|---|
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Infosys
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- 5.77%
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Axis Bank
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- 4.71%
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Kotak Mahindra Bank
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- 2.58%
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Wipro
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- 2.15%
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Mahindra & Mahindra
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- 2.11%
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NEWS
Jio Financial and Zomato Could Make Nifty 50 Debut
Jio Financial Services and Zomato are poised to join the elite club of the Nifty 50 index, potentially replacing Bharat Petroleum Corporation Ltd (BPCL) and Britannia Industries. This anticipated reshuffle, set for March 31, 2025, is based on average free float market cap data from August 2024 to January 2025, with official announcements expected in February. If included, the move could trigger substantial passive inflows for both companies. Analysts at JM Financial predict that Zomato could attract $620 million in inflows, while Jio Financial Services might see $356 million. Conversely, BPCL and Britannia Industries could face outflows of $212 million and $229 million, respectively. On a parallel track, the MSCI India Standard Index is gearing up for its own reshuffling. High-probability inclusions include Coforge, Fortis Healthcare, Paytm (One 97 Communications), and Coromandel International. Notably, IndusInd Bank’s weight in the MSCI index is expected to double, potentially driving $143 million in buying flows. These index rebalances highlight shifting market dynamics and the growing prominence of new-age companies like Jio Financial and Zomato. As the announcements draw closer, market participants will be closely watching for confirmation and preparing for the resultant shifts in fund flows.
Gensol Engineering Surges on EV Deal Buzz
Gensol Engineering caught investors’ attention on Thursday morning, with shares surging over 7% in early trade. The spark? A headline-grabbing tie-up with Refex Green Mobility that signals a big leap in the electric vehicle space. The stock opened strong at ₹750.05, already up 2.8% from the previous close of ₹729.70, and quickly gained momentum to hit an intraday high of ₹782.20. Clearly, the market liked what it heard: Refex Green Mobility is stepping in to take over Gensol’s fleet of 2,997 electric four-wheelers (e4Ws) in a strategic deal that could reshape the EV landscape. Here’s the breakdown: Refex will absorb Gensol’s loan facility of ₹315 crore, streamline operations, and expand e4W deployments in major markets like Chennai, Bengaluru, Hyderabad, Mumbai, and Pune, where it already has a solid presence. As part of the arrangement, the vehicles will be leased to Blu-Smart Mobility, a key player in electric mobility operating in Delhi NCR and Bengaluru. For Gensol, this isn’t just about shedding assets; it’s about sharpening focus while strengthening India’s shift toward sustainable mobility. Refex, meanwhile, sees this as a stepping stone in its push to scale cleaner transportation solutions, complementing its existing fleet of over 1,000 electric cars. Of course, there’s a caveat—the transaction hinges on regulatory and financial stakeholder approvals. But if all goes smoothly, this deal could mark a turning point, not just for Gensol and Refex, but for India’s broader EV ecosystem. Investors seem to think so too, and with momentum like this, Gensol’s stock might just keep charging ahead.
IRB Infrastructure Surges After Promoter Unveils Share Pledge Release
IRB Infrastructure Developers saw a 4% jump in its stock price on January 17, following the release of a significant share encumbrance by promoter Sudha Dattaray. This move, disclosed under SEBI’s Substantial Acquisition of Shares and Takeovers Regulations, revealed the release of 28.4 lakh pledged shares, or 0.047% of the company’s equity. Dattaray, holding 50.59 lakh shares (0.08% of total equity), had previously pledged 35.90 lakh shares for personal borrowing. With this disclosure, only 7.5 lakh shares (0.01% of equity) remain encumbered. The reduction in pledged shares signals eased financial obligations, boosting investor confidence amid a tepid market. The stock hit a day’s high of ₹54.78, marking a 4.2% rise. Despite being 30% below its 52-week peak of ₹78.05 (June 2024), the stock has climbed 22% from its 52-week low of ₹44.96 in January 2024, with a 15.5% annual gain. Operationally, IRB posted a 4% rise in Q2FY25 net profit to ₹99.86 crore, though total income dropped to ₹1,751.16 crore from ₹1,874.50 crore YoY. Toll collections surged 25% YoY, driven by its Private InvIT projects, highlighting robust asset performance despite monsoon disruptions. Management remains optimistic, citing steady toll growth and portfolio resilience, further reinforcing the positive sentiment surrounding the share pledge release.
PVR Inox Faces Pressure but Analysts See Recovery Potential
Shares of PVR Inox, India’s largest multiplex operator, have been under heavy selling pressure, falling 30% in the last six weeks and plunging 37% from a September high of ₹1,748 to ₹1,100. The stock hit its lowest level since April 2021, shrinking the company’s market cap from ₹16,553 crore to just ₹11,000 crore in four months. The decline stems from disappointing Q3FY24 results and concerns over the HMPV virus. However, analysts at JM Financial suggest much of the selling was technical, driven by arbitrage funds that exited trades as spreads narrowed due to weaker box office (BO) performances and PVR Inox’s exclusion from F&O. With arbitrage fund holdings now below 1%, the technical drag seems to have subsided. Despite a 3% drop in 2024’s ₹118 billion BO collection—impacted by Hollywood strikes, a quiet Bollywood calendar, and events like the T20 World Cup—JM Financial remains optimistic about 2025. The Hollywood slate is packed with blockbusters like Jurassic Park, Avatar, and Marvel films, while Bollywood megastars return with Sikandar and Sitare Zameen Par. JM Financial expects growth to rebound and has set a revised price target of ₹1,600, indicating a 45% upside from the current price. Geojit Financial Services echoes this optimism, upgrading the stock to a ‘buy’ with a target price of ₹1,437. Ventura Securities, meanwhile, remains bullish with a target of ₹2,657, highlighting the potential for long-term recovery. Though challenges remain, analysts believe the stock is attractively valued, with a promising pipeline poised to rekindle growth. For investors willing to weather short-term volatility, PVR Inox may present an opportunity for significant gains.
SBI Life Insurance Delivers Strong Q3 Earnings Growth
SBI Life Insurance Company announced impressive results for Q3FY25 on January 17, with net profit surging 71% year-on-year to ₹550.82 crore, compared to ₹321.75 crore in the same quarter last year. Sequentially, the profit rose by a modest 4% from ₹529.42 crore in Q2FY25, signaling consistent performance. The company’s net premium income hit ₹24,828 crore, marking an 11% YoY increase and a 22% rise over the previous quarter. Renewal premiums played a significant role, growing 14% YoY to ₹14,468 crore and showing a strong 23% sequential jump. Single premiums also exhibited steady demand, reaching ₹4,079 crore, up slightly from ₹4,062 crore a year earlier. For the nine-month period ending December 2024, SBI Life reported a marginal 1% growth in New Business Premiums (NBP), totaling ₹26,260 crore. However, renewal premiums demonstrated robust growth, climbing 15% YoY to ₹34,730 crore. The Gross Written Premium (GWP) for the period rose 9% to ₹60,980 crore, driven by a 12% increase in New Business Regular Premiums and sustained growth in renewals. Investors responded positively to the results, pushing the stock up by 2.7% to a day high of ₹1,555.55. Although it remains 20% below its September 2024 peak of ₹1,935, the stock has recovered 19% from its 52-week low of ₹1,307 recorded in June 2024. With strong renewal premiums and steady growth across segments, SBI Life Insurance continues to demonstrate resilience and a promising outlook for the remainder of FY25.
Surana Telecom and Power Shares Surge on Major Order Win
Shares of Surana Telecom and Power surged 8% on January 17, reaching ₹25.80 per share, after the company announced it had secured a significant order from Maharashtra State Electricity Distribution. The order, worth ₹190 crore, involves the development of solar photovoltaic power-generating stations with a combined capacity of 54 MW (AC). This order value represents 55% of the company’s market capitalisation, which stands at ₹342 crore. The project is expected to be completed within 18 months from receiving the Letter of Award (LOA), with a 25-year operation and maintenance period from the Commercial Operation Date (COD). The company confirmed that the solar power stations are part of the Mukhyamantri Saur Krushi Vahini Yojana 2.0, an initiative under the PM-KUSUM Scheme. The electricity tariff for the project is set at ₹3.09 per kWh, with a subsidy of ₹1.05 crore per MW. This major contract is a significant boost to the company’s prospects. Surana Telecom and Power’s stock has performed impressively over recent months, rising 194% from ₹8.40 in April 2023 to its current value of ₹25. Over the past five years, the stock has delivered an even more remarkable 523% gain, consistently posting positive returns each calendar year since CY20. The latest order win further enhances its growth outlook, boosting investor confidence.
Zomato’s Decline Offers Potential Buying Opportunity
Zomato’s stock has fallen by around 16% over the past month, prompting analysts to suggest that this could be a good buying opportunity, especially for long-term investors. According to JM Financial, the recent negative sentiment surrounding the stock presents a chance to capitalize on the dip. The stock is currently trading 21% lower than its all-time highs, primarily due to growing concerns over increased investments in Blinkit’s supply chain and heightened competition in the quick commerce sector. While these worries are valid, JM Financial believes that the impact on Blinkit’s adjusted EBITDA margin may not be significant and that the deviation from break-even targets will be limited. Additionally, the firm sees the supply chain investments as a necessary step to help Blinkit compete with emerging rivals. JM Financial maintains a target price of ₹300 for Zomato, based on a 75x multiple on its Mar’27 earnings per share. The brokerage continues to rate the stock as a “BUY” and considers Zomato one of its preferred picks in the Internet space. Similarly, global brokerage CLSA has also shown optimism about Zomato, placing it in its High Conviction O-PF list. Zomato will release its Q3FY25 earnings on January 20, with analysts watching closely after its Q2FY25 profit surged fivefold to ₹176 crore. However, the company did report a 30% drop in profit compared to Q1FY25. Despite this, its operating revenue showed strong growth, increasing by 69% YoY to ₹4,799 crore.
Citi Research Initiates Coverage on Aadhar Housing Finance with Buy Rating
Global brokerage firm Citi Research has initiated coverage on Aadhar Housing Finance with a ‘buy’ rating and a target price of ₹565 per share, suggesting an upside potential of 42% from its current price of ₹398. The firm is optimistic about the company’s consistent growth, which has averaged over 16% CAGR over the past 4-6 years, significantly outpacing the single-digit growth seen in the affordable housing finance market. Aadhar has carved out a niche, with a 2% market share in the low-income housing finance segment (defined as an average ticket size under ₹2.5 million). The brokerage expects Aadhar’s disbursement growth to continue driving AUM growth at a 21-22% CAGR, with additional levers including expanding beyond its core states, increasing sales offices, and further growing its share of self-employed customers. Additionally, the company is expected to improve productivity as new branches mature and manage its repayment and prepayment rates effectively. From a financial standpoint, Citi projects a 22% PAT growth from FY24 to FY27, driven by AUM growth, stable NIMs on AUM, contained credit costs, and lower operational expenses as leverage kicks in. The brokerage believes these factors will enhance Aadhar’s return on assets (RoA) and return on equity (RoE), pushing them to above 4.5% and 16.5%, respectively, over the same period. Despite a recent 23.15% correction from its all-time high of ₹516.65 per share in September, Aadhar’s stock has gained 26.3% since its IPO in May 2024. It debuted at ₹329 per share, 4.6% higher than its issue price of ₹315.
OVERVIEW
Indian stock markets ended on a negative note on Friday, January 17, as weak earnings from major companies like Infosys and Axis Bank led to a sharp sell-off in banking and IT stocks. The Nifty index closed 0.47% lower at 23,311.8, after reaching a high of 23,292.1 and a low of 23,100.35. Similarly, the Sensex dropped 0.55%, closing at 77,042.82, reflecting a decline of 423.49 points from its opening price.
While the frontline indices struggled, the broader market showed resilience. The Nifty Midcap 50 ended 0.05% higher, and the Nifty Small Cap 100 gained 0.16%, closing at 17,643.3. The mid- and small-cap stocks continued their outperformance, marking their fourth consecutive day of gains.
The market’s decline was largely due to disappointing results from IT giant Infosys and private lender Axis Bank. Infosys dropped 5.4% after its quarterly revenue exceeded estimates but raised concerns about the quality of earnings, driven by a higher proportion of third-party items in its deal pipeline. Axis Bank fell 5.2% as its quarterly profit missed expectations, impacted by slower loan growth and higher provisions for bad loans.
Despite the losses in key stocks, the market was supported by gains in heavyweights like Reliance Industries, which rose 2.2% after reporting strong profits in its retail and telecom divisions. Other stocks, including BPCL, Hindalco, Coal India, Nestle India, and Bharat Electronics, also posted gains of 2%–2.5%.
Gold prices hit a two-month high, trading at ₹80,630 per 10 grams, supported by hopes of rate cuts by the US Federal Reserve in 2025. Meanwhile, oil prices continued their upward trajectory, with Brent crude futures rising 0.7% to $81.84 per barrel, heading for a fourth consecutive week of gains amid sanctions on Russian energy exports.