Category: News

Indian IT stocks had a nice little bump on Friday morning, rising up to 1%. What’s behind the buzz? Accenture’s blowout Q1 results, which seem to have reinvigorated investor confidence in the tech space. Accenture ended Thursday with a solid 7% gain in its stock price, closing at $372.16. The company crushed Wall Street’s revenue estimates, reporting $17.7 billion in Q1 revenue versus the expected $17.12 billion. A year-on-year growth of 8% (in constant currency terms) doesn’t hurt either, especially since it surpassed their guidance range of 2-6%. Accenture analysts credit it to the rising adoption of AI-powered solutions and the ramp-up of large deals in consulting (up 6% YoY). Meanwhile, managed services shone brighter, clocking an impressive 11% YoY growth. Encouraged by this momentum, Accenture bumped its FY25 revenue growth guidance by 100 basis points to a range of 4-7%. So, while the broader market may have its ups and downs, Indian IT seems to be surfing the AI and digital transformation wave just fine—for now.

India’s market regulator, SEBI, has unveiled sweeping changes to strengthen investor protection and streamline market operations. To safeguard investors and maintain the accessibility of SME IPOs for informed participants, SEBI has increased the minimum application amount from ₹1 lakh to ₹2-4 lakh. Promoters face tighter controls on share sales, with a limit of 20% of their holdings per IPO and phased lock-in periods for excess holdings. Furthermore, the proceeds from the IPO allocated for general corporate purposes are limited to either 15% of the total amount raised or ₹10 crore, whichever is lower. SEBI also has introduced stricter qualifications and financial thresholds for merchant bankers. Both categories must maintain liquid net worth equal to 25% of their minimum requirement and meet cumulative revenue targets over three years. Sponsors can now transfer locked-in units within their group, while REITs can invest in unlisted companies providing ancillary services, subject to conditions. SEBI also has broadened the definition of unpublished price-sensitive information (UPSI) and introduced a two-day window for event updates.

The Federal Reserve’s hawkish tone, despite its recent rate cut, has triggered a selloff in Asian currencies. The Bloomberg Asia Dollar Index slid 0.4% on Thursday, highlighting the dollar’s broad strength. The Federal Reserve’s decision to cut rates, paired with its renewed focus on inflation, has shifted market dynamics. Chair Jerome Powell acknowledged that their year-end inflation projections have faltered, suggesting tighter monetary conditions ahead. Bank Indonesia has openly intervened in domestic markets, signaling a strong stance to traders.The Reserve Bank of India has used both offshore and onshore mechanisms to stabilize the rupee but has refrained from public commentary. Also, many expect the yuan to face further challenges in 2025, especially amid the looming possibility of another US-China trade war. The region’s currencies have collectively shed nearly 4% against the dollar this year, even as the Fed shifted to rate reductions.

Shares of IOL Chemicals & Pharmaceuticals surged over 8% in morning trade on Thursday as investors rallied behind the company’s announcement of a potential stock split. IOL Chemicals & Pharmaceuticals, a prominent player in the pharma and specialty chemicals space, is renowned as the world’s largest producer of Ibuprofen, commanding a ~30% global market share. The stock opened slightly higher at ₹406 on the BSE, compared to its previous close of ₹405.35, and quickly climbed to an intraday high of ₹441. This spike comes ahead of a pivotal board meeting scheduled for Friday, December 27, where the company will deliberate on subdividing its equity shares with a face value of ₹10 each. To maintain compliance, the company has also closed its trading window for insiders, effective from December 19 to December 29. With its robust portfolio and the potential stock split, IOL is clearly signaling its intent to enhance shareholder value and expand market accessibility. Investors are already taking notice, as reflected in the stock’s bullish movement.

Bharti Airtel continues its streak of cleaning up financial baggage, announcing on Thursday a prepayment of ₹3,626 crore to the Department of Telecom. This move wipes out all its spectrum liabilities from the 2016 auction, effectively closing the chapter on dues with interest rates above 8.65%. The telecom giant reported a stellar Q2 FY25 performance with profits surging 168% year-over-year to ₹3,593.20 crore. Revenues reached ₹41,473.30 crore, reflecting a 12% increase, fueled by robust growth in India and consistent progress in Africa. Operating profits (EBITDA) clocked in at ₹21,846.3 crore, underscoring robust operational efficiency.This isn’t their first financial house cleaning effort. Earlier in September, they shelled out ₹8,465 crore for the same 2016 spectrum dues, which had carried an interest rate of 9.3%. The company also paid off ₹7,904 crore in June to settle spectrum liabilities from auctions dating back to 2012-2015, where interest rates soared to 9.75% and 10%.

Micron Technology took a heavy hit, with shares plunging 15% in premarket trading on Thursday after the company issued a grim forecast. The surge in sales of AI-related chips was overshadowed by weak demand for PCs and smartphones, causing concern among investors. While Micron sees only modest smartphone growth in 2025, global PC shipments dropped another 1.3% in Q3, according to Gartner. On the brighter side, revenue from high-bandwidth memory (HBM) chips—crucial for AI systems—more than doubled sequentially, highlighting an opportunity in data center investments expected to grow in 2025. Despite a 22% rise in Micron’s stock this year driven by AI chip demand, analysts remain cautious. At least six brokerages slashed their price targets post-earnings, reflecting tempered expectations.

The stock market’s recent performance has left investors reeling, with wealth worth ₹9.65 lakh crore wiped out over just four days. The BSE Sensex tumbled 2,915 points—or 3.54%—during this period, with Thursday’s 964-point plunge (1.20%) taking the index to 79,218.05. Meanwhile, the market capitalization of BSE-listed firms dropped sharply to ₹4,49,76,402.63 crore, adding to the gloom. IT stocks bore the brunt, with the BSE Focused IT index tanking 1.20%. In contrast, defensive plays like Sun Pharma, Hindustan Unilever, and Power Grid provided some relief, emerging as rare gainers in the chaos. Midcap and small-cap indices weren’t spared either, declining 0.30% and 0.28%, respectively. Foreign Institutional Investors (FIIs) offloaded Indian equities worth ₹1,316.81 crore on Wednesday, further pressuring domestic markets.The sell-off, triggered by negative global cues, was exacerbated by the US Fed’s hawkish commentary, which dampened hopes for rate cuts in 2024. Broad-based selling followed the Fed’s hawkish stance, fueling concerns over tightening liquidity and economic uncertainties.

Yash Highvoltage made a sizzling debut on the BSE SME, listing at ₹277.40—an impressive 90% premium over its IPO issue price. But the fireworks didn’t stop there. The stock soared further to ₹291.25, locking in its upper circuit and delivering a jaw-dropping 99.49% gain for investors on day one. For a company deeply entrenched in this niche but crucial industry, today’s blockbuster listing underscores not just investor confidence but also the potential for Yash Highvoltage to spark brighter innovations in the energy sector. Yash Highvoltage specializes in transformer bushings, offering a wide range of products such as Oil-Impregnated Paper (OIP), Resin-Impregnated Paper (RIP), and Resin-Impregnated Synthetic (RIS) condenser bushings.

Solarium Green Energy Limited is preparing for its public debut as the Bombay Stock Exchange (BSE) approves its Draft Red Herring Prospectus. The SME IPO is expected to launch shortly, offering as many as 5,500,000 equity shares, each with a face value of ₹10. As the company ventures into the public domain, the IPO marks not just a financial milestone but also a strategic move to expand its foothold in the ever-growing solar energy market. As of September 2024, Solarium is overseeing 41 ongoing projects totaling ₹165.29 crore in value, while new tenders worth ₹252.86 crore are currently up for bidding. This growing pipeline underscores the company’s leadership in India’s renewable energy space. The company’s financials paint an optimistic picture. For the fiscal year ending March 31, 2024, Solarium reported revenue of ₹177.80 crore, EBITDA of ₹23.78 crore, and a net profit of ₹15.59 crore. Its track record between FY22 and FY24 includes 8,506 residential rooftop projects, 152 commercial and industrial (C&I) projects, and 8 government ventures.

Infosys, India’s second-largest IT services company, has added a significant chapter to West Bengal’s IT growth narrative by inaugurating a cutting-edge development centre (DC) in New Town, Kolkata. This expansive 320,000 sq. ft. facility, with an investment surpassing ₹426 crore, is designed to accommodate over 4,000 employees in a hybrid work environment, combining both in-office and remote work arrangements. For Infosys, this move signifies its growing footprint in Eastern India. Unveiled by West Bengal Chief Minister Mamata Banerjee, the event was marked as a “historic” moment for the state’s IT ambitions. Banerjee called it a “New Year gift” to Bengal, emphasizing how the facility strengthens the state’s position as a leading IT hub in India. Banerjee also spotlighted complementary developments, including a “Silicon Valley” project spanning 200 acres in New Town. This ambitious venture, with an investment of ₹27,000 crore, is expected to generate 75,000 jobs. Additionally, she announced plans for a cable landing station to bolster connectivity for IT firms, reinforcing the state’s tech-friendly ecosystem. For Bengal, it’s a signal to the world: the state is ready to innovate, grow, and lead in the IT sector.