Category: News

India’s trade deficit hit a new high in November, and the cause? A mistake on the government’s part when it comes to importing precious metals—mainly gold. Turns out, the Ministry of Commerce and Industry had been using inaccurate data for months, which was only revealed after a deeper dive into the numbers. The culprit? A new data transmission system that wasn’t as reliable as expected, leading to some serious miscalculations. For November, gold imports were initially pegged at a jaw-dropping $14.8 billion, fueling worries over a massive trade imbalance. But a revision showed that the actual number was about $5 billion less—around $9.84 billion. That discrepancy, which pushed the trade deficit to a record $37.8 billion, had analysts scratching their heads. The surge in gold imports didn’t make sense, especially after the government slashed duties on the precious metal in July. As the government works to reconcile the numbers, they’re confirming that errors like these do happen from time to time, thanks to late data and occasional tweaks. In fact, the revised import figures for the April-November period now stand at $37.39 billion for gold imports, which is $11.7 billion lower than initially thought.

Shriram Finance shares nosedived 6 percent on January 10, marking the ex-date for its 1:5 stock split. The market response was less than enthusiastic, with the stock sliding to a day’s low of ₹528.70 on the BSE, despite an initial uptick to ₹569.95 at the opening bell. By mid-session, the optimism had fizzled, and the stock was trading well below its previous close of ₹562.55. The stock split, approved back in October, reduces the face value of shares from ₹10 to ₹2 each, effectively splitting one share into five. Shareholders needed to own the stock by January 9 to qualify, given the T+1 settlement cycle. The move, aimed at increasing liquidity and making the stock more accessible to smaller investors, was finalized following shareholder approval via postal ballot on December 20. While the split may benefit the stock in the long run, recent performance paints a grim picture. Shriram Finance shares have dropped 13 percent in the past month, 20 percent in three months, and 3 percent over the past six months. Yet, on a broader scale, the stock still boasts a 25 percent gain over the last year, reflecting a resilient long-term trajectory.

Tata Consultancy Services (TCS) shares surged nearly 5% on Friday morning as the IT heavyweight reported an impressive 11.95% rise in net profit for the December quarter, reaching ₹12,380 crore. The stock rallied to ₹4,227.70 on the BSE, climbing 4.73%, and hit ₹4,225 on the NSE, up 4.60%. This surge added ₹69,829 crore to TCS’s market valuation, propelling it to ₹15.30 lakh crore and making it the top gainer among Sensex and Nifty constituents in an otherwise muted market. The broader IT sector also saw a ripple effect, with stocks like Tech Mahindra, Infosys, HCL Tech, and Wipro trading in positive territory. Notably, new order bookings stood at $10.2 billion, a sharp jump from $7.9 billion in the year-ago quarter. CEO K Krithivasan acknowledged ongoing macroeconomic challenges but highlighted the diversified nature of the new orders across industries, geographies, and service lines, which provides “good visibility to long-term growth.” With a strong earnings report and optimistic projections, TCS has reaffirmed its position as a bellwether for the IT sector, offering a glimmer of optimism in an otherwise challenging environment.

India’s real estate market hit a historic milestone in 2024, attracting a staggering USD 11.4 billion in equity investments—a 54 percent surge compared to the previous year. Foreign investors played a significant role, with Singapore leading the charge, accounting for 36 percent of foreign equity inflows. Close behind were the United States and Canada, contributing 29 percent and 22 percent, respectively. Even the UAE made a stronger play, showing a marked increase in investments compared to 2023. Yet, domestic investors remained the bedrock, driving 70 percent of the total equity inflows. Developers were the largest recipients, cornering 44 percent of the equity pie, while institutional players secured 36 percent. Corporations, REITs, and other segments rounded out the rest, reflecting a diverse ecosystem of capital flows. Looking ahead to 2025, the momentum seems unstoppable. CBRE’s Anshuman Magazine predicts a robust pipeline for office assets and residential sites, fueled by the e-commerce and quick-commerce booms. These industries are driving demand for high-quality logistics and warehousing infrastructure, creating fresh opportunities for investors and developers alike. India’s metro and tier-I cities are expected to remain the epicenters of this activity, but tier-II cities are emerging as promising alternatives. With rising real estate development, these smaller hubs are seeing healthy demand across residential, mixed-use, retail, and hospitality sectors.

Fabtech Technologies Cleanrooms hit the stock market running, debuting at ₹161.50 on BSE SME, a stunning 90 percent jump from its IPO price of ₹85. This remarkable start highlights the overwhelming demand for the ₹27.74 crore IPO, which saw bids pouring in during its subscription period from January 3 to January 7. The enthusiasm was palpable, with the IPO oversubscribed a jaw-dropping 227.67 times. The breakdown was equally impressive: retail investors booked 101.79 times, non-institutional investors a staggering 501.75 times, and Qualified Institutional Buyers locked in 242.4 times the shares allocated. Fabtech’s IPO consisted entirely of a fresh issue of 32.64 lakh shares, with no offer-for-sale component. Retail investors entered with a minimum lot size of 1,600 shares, requiring an investment of ₹1.36 lakh. Ahead of the IPO, Fabtech raised ₹7.89 crore from anchor investors, setting the stage for its stellar listing. The funds raised are earmarked for critical growth strategies: bolstering working capital, acquiring Kelvin Air Conditioning and Ventilation Systems Private Limited, and covering general corporate expenses. Fabtech Technologies, established in 2015, has carved a niche in cleanroom solutions, catering to pharmaceutical, healthcare, and biotech clients.

Adani Wilmar’s stock took a hit this morning, dropping nearly 9.5% to ₹292.65, as news broke that its promoter is offloading up to 20% of the company through an Offer For Sale (OFS). The sale is set to see Adani Commodities, one of the key promoters, unload 13.5% of the company’s shares, amounting to about 17.5 million shares. The kicker? The shares are being sold at ₹275 each, a sharp 15% discount from Thursday’s closing price. Just last month, Adani Enterprises, the powerhouse behind the Adani Group, decided it was time to exit its joint venture with Adani Wilmar. This sale is part of a plan to meet public shareholding rules and mark a shift in ownership. With Wilmar International agreeing to pick up the rest of the stake, the landscape for Adani Wilmar is clearly changing. As the sale kicks off for non-retail investors today and retail buyers can join in on January 13, the market is bracing for potential volatility. The numbers suggest that Adani Wilmar is holding its ground in a tough market, but the big question now is how much this fresh round of selling will shake investor confidence. With a complex shift in ownership and stock now trading under pressure, things could get even more interesting in the coming days.

After a brief respite in December, foreign portfolio investors (FPIs) have resumed their selling spree in January, shedding nearly ₹12,000 crore worth of Indian stocks so far. The shift in sentiment isn’t entirely new. FPIs had been net sellers during October and November, pulling out close to ₹1.60 lakh crore before turning net buyers in December. However, even in December, the enthusiasm faded quickly, as intensified selling in the latter half led to a 2% drop in the Nifty 50 index. This persistent selling pressure has taken a toll on FPI ownership in Indian equities, which slipped to 16.1% in December 2024—a 12-year low—down from 16.8% in the same period a year earlier. The total Equity Assets Under Custody (AUC) held by FPIs fell to ₹71.1 trillion in December, compared to ₹71.9 trillion in November, per a JM Financial report. The January selloff appears to be driven by a mix of factors. Concerns about the HMVP virus and lackluster earnings updates for the December quarter have dampened investor sentiment. Global cues are also adding pressure. A dollar index at 109 and a U.S. 10-year bond yield hovering around 4.67% have made Indian equities less appealing to foreign investors. Market volatility is expected to persist as investors digest Q3 results, await Union Budget announcements, and keep an eye on potential policy shifts in the U.S. While the long-term fundamentals of the Indian economy remain solid, the immediate outlook appears clouded by uncertainties that could keep foreign investors on edge.

Tata Consultancy Services (TCS), India’s IT bellwether, made waves on January 9 with its third interim dividend announcement, sweetened by a generous special dividend. Shareholders are set to receive ₹10 per equity share as an interim dividend and an additional ₹66 per share as a special dividend, both on shares with a face value of ₹1 each. The payout will hit accounts on February 3, 2025, for those listed in the company records by January 17. TCS unveiled its financial results for the October-December quarter after market hours on Thursday, revealing a 12% year-on-year rise in net profit, reaching ₹12,380 crore, compared to ₹11,058 crore in the same period last year. Revenue from operations climbed 5% to ₹63,973 crore, up from ₹60,583 crore a year earlier. The Communication, Media, and Technology (CMT) segment emerged as the star performer, with revenue surging 20% to ₹11,989 crore, marking a sharp contrast to its previous ₹9,932 crore. The BFSI (Banking, Financial Services, and Insurance) segment, a critical revenue driver for TCS, posted a steadier 3.6% growth to ₹23,481 crore, compared to ₹22,667 crore in the preceding quarter. Despite the positive results, the market appeared unimpressed, as TCS shares slipped 1.72% to ₹4,036.65 by the close of Thursday’s trading session. Investors might be weighing the broader implications of a global slowdown in IT spending, even as TCS continues to deliver stable growth.

Manappuram Finance got a solid boost on Thursday morning, climbing 6% after the RBI finally lifted loan restrictions on its microfinance arm, Asirvad Micro Finance. Investors cheered the news, pushing the stock up to ₹191.50 intraday—a clean 6% rise from its prior close of ₹180.05. The stock has seen its fair share of ups and downs, losing ground since its ₹230.05 peak. But don’t write it off just yet—it’s up over 32% since its October low of ₹138.40, showing some serious resilience. The lifting of RBI’s October 2024 sanctions, which had frozen Asirvad’s loan activities, is a major relief. With these curbs now a thing of the past, Manappuram’s Q4 could tell a brighter story when results roll out. Analysts had slashed earnings estimates for FY25 and FY26 by nearly 19% and 12%, citing regulatory hiccups and sector struggles. But with this regulatory hurdle cleared, there’s hope for a rebound. Elara Securities remains cautiously optimistic, keeping an “Accumulate” rating on the table. While the stock has taken a beating, it seems the correction is already priced in, setting the stage for a potential comeback. The market’s reaction today suggests investors are betting on a turnaround, and with fundamentals potentially improving, Manappuram’s story isn’t over yet.

The festive season did little to shift the gears for India’s automobile sector in Q3 FY25, with a muted 6% YoY volume growth that left analysts scratching their heads. While the Passenger Vehicle (PV) segment rode the festive wave, two-wheelers stalled, and commercial vehicles continued to struggle. On the brighter side, tractors bucked the trend, showing solid recovery and hinting at improving rural sentiment. The slowdown in two-wheelers is particularly striking, given the segment’s strong run in the first half of FY25. Domestic sales flatlined in Q3 compared to a 15% growth earlier, though export markets like Africa offered a glimmer of hope. Several key players saw earnings downgrades, reflecting the tepid demand outlook. Bajaj Auto, Tata Motors, and Ashok Leyland faced cuts of 13%, 6%, and 7%, respectively. Even ancillary giants like Sona BLW and Motherson Sumi took hits. Despite this cautious backdrop, analysts see promise in Maruti Suzuki and Hyundai. Maruti’s upcoming launches and Hyundai’s alignment with UV trends position them for potential growth. For Maruti Suzuki, strong volumes could deliver a 16% YoY revenue growth, but higher discounts might squeeze margins. Tata Motors, buoyed by Jaguar Land Rover and India PV growth, is expected to post a 9% rise in net profit with improving margins.