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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- 0.08%
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|
🇮🇳 Sensex
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- 0.06%
|
|
🇮🇳 India VIX
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– 1.36%
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|
🇺🇸 S&P 500
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+ 0.22%
|
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🇺🇸 Nasdaq
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+ 0.16%
|
|
🇺🇸 Dow Jones
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+ 0.17%
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|
🇪🇺 Euro Stoxx
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- 0.33%
|
|
🇨🇳 China A50
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- 0.19%
|
|
🇨🇳 DJ Shanghai
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- 0.05%
|
|
🇬🇧 FTSE 100
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+ 0.05%
|
|
🇯🇵 Nikkei 225
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- 0.27%
|
|
🇮🇩 IDX Composite
|
- 0.04%
|
|
🇸🇦 Tadawul All Share
|
- 0.02%
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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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Tata Consultancy
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+ 1.97%
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Reliance Industries
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+ 1.92%
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ITC
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+ 1.90%
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Asian Paints
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+ 1.80%
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Wipro
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+ 1.11%
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TOP LOSERS ON INDIAN STOCK MARKET
|
Stocks
|
Change
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|---|---|
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Ultratech Cement
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- 1.75%
|
|
Larsen & Toubro
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- 1.26%
|
|
Tech Mahindra
|
- 0.94%
|
|
Sun Pharmaceuticals Industries
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- 1.19%
|
|
ICICI Bank
|
- 1.11%
|
NEWS
Stock Markets Walk a Tightrope with Bond Yields Surging
The bond market is flexing its muscles again, and equities might be the next to feel the heat. The US 10-year Treasury yield is flirting with the 4.7% mark, a level not seen since April, after a relentless climb of over one percentage point since mid-September. It’s déjà vu for anyone who remembers the sharp equity selloffs in 2022 and 2023 that came alongside similar yield spikes. This time, though, the stock market has been remarkably cool, with just a mild pause in its rally. But that calm could crack if bond yields keep climbing. Goldman Sachs strategists are already flashing warning signs. They’re pointing out that equity and bond yield correlations have flipped negative again—bad news for stocks if yields continue to rise without strong economic data to back them up. The risk of a short-term market correction looks higher, especially if growth numbers disappoint. The spotlight is on long-term rates, which have been the biggest movers as yield curves steepen. It’s not inflation driving this shift but rising real yields—a sign that markets are pricing in fiscal risks and productivity bets rather than inflation fears. The Federal Reserve’s policy trajectory remains a wild card, with the next rate cut not expected until July. Investors are waiting for clarity from the Fed’s minutes, hoping to decode the central bank’s stance in this volatile mix.
Kalyan Jewellers Faces Profit-Taking Dip Despite Strong Growth Numbers
Kalyan Jewellers shares stumbled 6.2% on Wednesday morning, hitting ₹677.55 on the BSE as investors took some chips off the table after an impressive Q3 performance update. The numbers were solid—a hefty 41% year-on-year revenue jump and a stellar 24% same-store sales growth, driven by robust festive and wedding demand across gold and studded jewellery categories. The company opened 24 new showrooms in India during the quarter, with even more launches in the pipeline for this year. Meanwhile, the Middle East operations held their ground with a 22% revenue growth, contributing 11% to the consolidated revenue. The digital-first brand, Candere, didn’t miss its moment either, posting an eye-catching 89% growth and rolling out 23 showrooms in Q3 alone. Even across the pond, Kalyan set up its first fully owned showroom in the US, marking a milestone. Despite today’s dip, the stock remains in a strong uptrend, making higher lows on the monthly chart and poised for a range breakout on the weekly scale. It’s hovering near its life-high territory and above short-term moving averages, with RSI momentum indicators suggesting further bullish moves ahead.
United Breweries Takes a Hit After Cutting Ties with Telangana Distributor
Shares of United Breweries, the name behind Kingfisher beer, took a sharp 7% dive on Wednesday after the company made a bold move—halting beer supplies to the Telangana Beverages Corporation Ltd (TGBCL). This public-sector giant controls all liquor distribution in Telangana, making it a key player in the state’s alcohol market. United Breweries pointed to financial woes as the tipping point. According to the company, TGBCL hasn’t updated the basic price of beer since 2019-20, leading to significant losses. Add to that a mountain of overdue payments for past supplies, and the company decided enough was enough. The financial mismatch made continued operations “unviable,” as stated in their announcement. The fallout was swift. The stock hit an intraday low of â‚ą1,920, marking a 7.4% drop. In Q2 FY25, it posted a 23% year-over-year jump in net profit, reaching â‚ą132 crore. EBITDA climbed 21% to â‚ą237 crore, and net sales rose 12% to â‚ą2,115 crore. The decision to cut off beer supplies in Telangana could hit United Breweries’ market share in the state, but the company’s overall financial strength offers some reassurance. The real test will be whether they can resolve the pricing and payment standoff with TGBCL without further dents to their bottom line.
IndusInd Bank’s Bumpy Ride and Hints of a Comeback
IndusInd Bank is clawing its way back from a steep sell-off, showing a 6% recovery in just eight sessions. The stock now trades at ₹983, bouncing from a one-year low of ₹928. The slump was largely tied to a disappointing Q2FY25 performance that led brokerage firms to slash their targets, triggering an intense sell-off. The bank’s much-anticipated Bharat Financial (BHAFIN) acquisition, aimed at building a strong rural deposit base, hasn’t delivered as hoped. Combined with struggles in retail lending and macroeconomic challenges in the microfinance (MFI) segment, IndusInd has found itself in a tight spot. On the auto finance front, weak demand has added to the challenges, while personal loans and credit cards—the backbone of its non-vehicle retail loan book—aren’t exactly thriving either. These factors have left analysts skeptical about the bank’s near-term trajectory. That said, there’s some optimism. Analysts expect stable margins for Q3FY25, aided by shifts in loan-to-deposit ratios and secured products. But risks in the bank’s MFI, vehicle finance, and small corporate portfolios remain a concern.
Blue Cloud Softech Hits Upper Circuit
Shares of Blue Cloud Softech Solutions reached their 5% upper circuit at ₹105.27 on Wednesday after the company announced a significant order from Discovery Oaks Public School. The ₹1.05 crore project will deploy Edugenie and Emotifics, two of the company’s flagship AI-driven products designed to revolutionize education through advanced technology. Edugenie, the centerpiece of the deal, is an AI-enabled Learning Management System (LMS) that promises tailored learning experiences while fostering better connections between instructors and students. Meanwhile, Emotifics, another innovative product from Blue Cloud, brings cutting-edge AI capabilities like gender and age detection, smile recognition, face tracking, and other advanced features to enhance learning environments. Blue Cloud Softech Solutions is no stranger to headlines, having recently announced a stock split that aims to enhance liquidity. The order from Discovery Oaks Public School is expected to strengthen Blue Cloud’s position in the rapidly evolving AI and education technology space. As the company expands its reach and aligns itself with innovative solutions, it could well be setting the stage for sustained growth, even as the market watches closely for its next moves.
Leo Dryfruits & Spices Hits Markets with Strong Debut but Sees Quick Dip
Leo Dryfruits & Spices kicked off its stock market journey with a bang on Wednesday, listing at ₹68 on the BSE SME platform—a solid 31% jump from its issue price of ₹52. However, the early enthusiasm cooled off quickly, with the stock slipping 2.2% to ₹66.50 in subsequent trading. The ₹25.12 crore IPO saw extraordinary demand during its subscription period from January 1 to January 3. Non-institutional buyers led the charge, oversubscribing their portion by a jaw-dropping 394 times, while retail investors followed with 154 times oversubscription. Even the qualified institutional buyers (QIBs) showed strong interest, bidding 68 times their allocated shares. Leo plans to channel the IPO proceeds into key areas like working capital, branding, advertising, marketing, and general corporate purposes. The majority of Leo’s business currently comes from Maharashtra, with sales in the state contributing over 96% of its revenue for the fiscal year ending March 2024. Now, Leo aims to extend its footprint across India and venture into international markets. Despite the initial dip post-listing, the market debut underscores strong investor confidence in Leo Dryfruits & Spices’ growth potential.
Exicom Tele-Systems Gains Momentum
Exicom Tele-Systems, a key player in EV charging and critical power solutions, surged to its 5% upper circuit at ₹250 on Wednesday following the announcement of a strategic partnership. The company inked a Memorandum of Understanding (MoU) with Mufin Green Infra Limited to develop end-to-end EV charging infrastructure, signaling a strong move toward bolstering India’s EV ecosystem. As part of the deal, Exicom will manufacture and supply advanced EV charging hardware, equipped with its proprietary software to enhance efficiency and user convenience. The partnership will cater to a wide array of customers, including charge point operators, bus operators, and state utilities, aiming to accelerate EV adoption across the country. Exicom will also offer technical support, maintenance services, and digital solutions to complement its hardware offerings. Mufin Green Infra will focus on installing EV charging stations, creating fleet charging hubs, and onboarding new B2B customers. Both companies plan to leverage their market presence and collaborative efforts to scale operations and meet regulatory standards for environmental and safety compliance.
Ola Electric Faces SEBI Warning Over Disclosure Lapses
Ola Electric has landed in regulatory trouble after India’s market watchdog, SEBI, issued a warning regarding its failure to provide timely and equal information to investors. The issue arose when Ola’s founder, Bhavish Aggarwal, announced the opening of new stores on social media platform X before officially disclosing the information to stock exchanges. This delay of nearly four hours violated disclosure norms that mandate listed companies to inform investors first and within 12 hours of significant events. In a strongly worded letter, SEBI emphasized that such violations are viewed “very seriously,” marking another regulatory setback for Ola Electric. The company, which went public in August 2024, had previously drawn scrutiny over service quality issues following a government investigation. Although it recently celebrated the opening of 3,200 new stores and service centers to address mounting service complaints, the regulatory reprimand underscores broader challenges. After an impressive IPO debut where the stock doubled in value within a week, the company has struggled to sustain its early momentum, facing stiff competition from established.
Delta Corp Surges Amid GST Dispute Hopes
Delta Corp had a strong outing on Wednesday, climbing over 7% to hit Rs 117.4, thanks to a glimmer of hope for the beleaguered online gaming sector. The Supreme Court’s decision to hear the industry’s grievances over GST show cause notices on January 10 has brought a breath of fresh air to investors. The core issue? A massive Rs 1.12 lakh crore tax demand hanging over the heads of 71 online gaming firms, triggered by notices from the Directorate General of GST Intelligence (DGGI). To make matters worse, penalties could push the total demand to a staggering Rs 2.3 lakh crore. At the heart of the drama is a dispute over whether online gaming companies should have been paying 28% GST or 18% for the period before October 1, 2023. While the government insists the tax rate was always meant to be 28%, the industry argues that the change should only apply from October onward. In August 2023, the GST Council clarified the law, stating that all games involving bets—regardless of whether skill or chance was involved—would face the higher GST rate on the full value of bets placed.
OVERVIEW
On Wednesday, the Indian markets managed to dodge a larger slump, thanks in part to the steady support from heavyweights like Reliance Industries. The oil and gas sector led the charge as crude prices edged higher, raising hopes that stronger margins for these companies could help offset the broader market weaknesses. Even as global cues painted a bleak picture—US tech stocks taking a hit overnight and concerns mounting over the US Federal Reserve potentially delaying rate cuts in 2025—the domestic market found a way to claw back from early losses.
At one point, the Nifty 50 was flirting with a drop below 23,500, but it recovered to end the session with a slight dip of 0.08%. The Sensex, which had plummeted over 700 points during the day, rebounded by 666 points to finish with a modest loss of 0.06%. While the recovery was encouraging, the overall sentiment remains fragile, still under the weight of global headwinds and local challenges.
In the bigger picture, the market is caught in a tricky spot. The FPI outflow has been relentless, with over â‚ą8,500 crore worth of Indian equities sold in January alone, as investors move towards the stronger US dollar and rising bond yields. The ongoing global weakness, fueled by stronger-than-expected US job numbers, has investors jittery about a delay in any rate cuts by the US Fed this year. While there are some hopes for a Q3 earnings recovery in India, experts remain cautious, noting that any clear revival may only surface in Q4.
For those keeping an eye on technicals, the Nifty 50’s movements from 23,500 to 24,700 and back to near 23,500 in the past two months have shown how volatile the market has been, largely driven by FPI selling. If the index falls below the 23,200 mark, there could be a sharp drop to levels around 21,800 to 21,500. So, even though there’s been some resilience in the face of negative sentiment, the outlook for the near term remains uncertain, and any break of key support levels could tip the scales toward further declines.