My Newsfeed

Trendlyne Marketwatch
Trendlyne Marketwatch
05 Mar 2025
Market closes higher, Biocon's arm gets US FDA nod for lenalidomide and dasatinib tablets
By Trendlyne Analysis

Nifty 50 closed at 22,337.30 (254.7, 1.2%), BSE Sensex closed at 73,730.23 (740.3, 1.0%) while the broader Nifty 500 closed at 20,256.50 (338.7, 1.7%). Market breadth is overwhelmingly positive. Of the 2,457 stocks traded today, 2,095 were on the uptick, and 331 were down.

Indian indices closed higher with the Nifty 50 closing at 22,332.7, driven by a strengthening rupee against the US dollar, a drop in US treasury yields, and fear of higher inflation in the US. The Indian volatility index, Nifty VIX, rose 1.2% and closed at 13.7 points. Oil & Natural Gas Corp closed 1.3% higher as its subsidiary, ONGC Green, acquires PTC Energy from PTC India for a total consideration of Rs 925 crore as part of its plans to achieve a 10 GW renewable energy portfolio for ONGC by 2030.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, tracking the benchmark index. S&P BSE Utilities and Nifty Metal were among the highest-performing indices of the day. According to Trendlyne’s sector dashboard, Utilities emerged as the best-performing sector of the day, with a fall of 4.2%.

European indices are trading in the green. Major Asian indices closed higher, except Australia’s ASX 200 index, which closed 0.7% lower. US index futures are trading higher after President Donald Trump’s cabinet member hinted at a possible reduction of tariffs on Canada and Mexico.

  • Money flow index (MFI) indicates that stocks like Oracle Financial Services, Bajaj Auto, MRF, and Tata Communications are in the oversold zone.

  • Biocon is rising as its subsidiary, Biocon Pharma, receives approval from the US FDA for lenalidomide capsules and dasatinib tablets. The former is used for different types of lymphoma, while the latter is used to treat leukaemia in adults.

  • NAVA surges as its Rs 360 crore buyback of 72 lakh equity shares at Rs 500 per share opens on March 6 and closes on March 12.

  • Adani Enterprises rises sharply as 84.5 lakh shares, worth Rs 1,832 crore, reportedly change hands in a block deal at an average price of Rs 2,168.1 per share.

  • According to an SBI report, RBI may need to cut the cash reserve ratio (CRR) to ease liquidity pressures in the banking sector. The report notes that with unchanged government securities (G-secs) holdings in FY26, the open market operations (OMO) gap will likely remain around Rs 1.7 trillion, indicating a need for ongoing liquidity measures.

  • Spicejet rises sharply as Plutus Wealth Management LLP acquires 90 lakh shares via a bulk deal at an average price of Rs 46 per share.

  • BNP Geojit Paribas downgrades Coal India to a 'Hold' call from 'Buy' with a lower target price of Rs 393 per share. This indicates a potential upside of 7.7%. The brokerage believes the company's efforts to expand operations, including exploring coal gasification projects and renewable energy, are expected to drive growth. It expects the firm's revenue to grow at a CAGR of 6% over FY25-27.

  • Angel One surges as its board of directors appoints Ambarish Kenghe as its Group Chief Executive Officer (CEO), effective March 5.

  • UBS upgrades Mahindra & Mahindra to a 'Buy' rating with a lower target price of Rs 3,300. The brokerage believes the 19% drop in M&M's share price over the past month, driven by EV-related news and Tesla's potential entry into the Indian market, is an "overreaction." It expects M&M's volumes to grow by 9% in FY26, fueled by strong demand for its SUVs and the launch of its electric vehicles. The SUV segment is also likely to see high-single-digit volume growth.

  • Power Grid Corp rises sharply as it secures three inter-state power transmission projects under a tariff-based competitive bidding process. The projects will be developed under the build, own, operate, and transfer (BOOT) model, expanding transmission capacity across Rajasthan, Madhya Pradesh, Gujarat, Andhra Pradesh, and Karnataka.

  • Oil & Natural Gas Corp is rising as its subsidiary, ONGC Green, acquires PTC Energy from PTC India for a total consideration of Rs 925 crore as part of its plans to achieve a 10 GW renewable energy portfolio for ONGC by 2030. The acquisition will give ONGC access to PTC's operational wind generation capacity of 288.8 MW, located in Andhra Pradesh, Madhya Pradesh, and Karnataka.

  • KEC International is rising as it receives an income tax refund of Rs 177 crore from the Income Tax Department.

  • Indian oil companies like BPCL and HPCL are rising as OPEC+ decides to gradually roll back the 2.2mbpd voluntary production cut, which has been in place since November 2023. The rollback will begin in April 2025 and continue through September-December 2026. As a result, Brent oil futures hit the $70 per barrel mark. Emkay Global sees Brent prices falling to $60 per barrel but believes the $70-75 per barrel range is more likely than $75-80 earlier.

  • Star Cement is rising as it emerges as the preferred bidder for the North Boro Hundong Limestone Block (Part-A) at an e-auction held by the Assam Government. The block has an area of 200 hectares and an estimated limestone resource of 192.4 million tonnes.

  • JSW Energy rises sharply as it secures approval from the Competition Commission of India (CCI) to acquire KSK Mahanadi Power for nearly Rs 16,000 crore. This acquisition will enhance the company's generation capacity and strengthen its push toward renewable energy expansion.

  • Adani Wilmar is rising as it signs an agreement to acquire GD Foods Manufacturing (India), the owner of the Tops brand. The acquisition will occur in multiple tranches, with 80% of shares acquired in the first tranche and the remaining 20% over the next three years. This expands Adani Wilmar’s food portfolio to meet Indian kitchen needs.

  • India's Services PMI increases to 59 in February, up from 56.5 in January, staying well above the 50-mark. The increase signals strong demand, with faster growth in new business and output driven by robust international demand.

  • Apollo Hospitals Enterprise plans to invest Rs 250 crore in a comprehensive oncology centre in Hyderabad. The facility is expected to be operational by FY28 and expand proton therapy capacity, enabling treatment for 350 more patients annually.

  • Welspun Specialty Solutions rises sharply as it emerges as the lowest bidder for a Rs 231.8 crore order from Bharat Heavy Electricals. The order involves the supply of 4,050 tonnes of stainless steel seamless boiler tubes for a series of super critical thermal power projects.

  • Force Motors is rising as its wholesales grow 46.3% YoY to 3,600 units in February, driven by a 48.8% YoY increase in domestic wholesales. However, exports decline 16.8% YoY to 79 units.

  • Ola Electric misses the deadline to begin commercial cell manufacturing at its Tamil Nadu Gigafactory, initially expected by Q1FY26. The Industrial Finance Corporation of India (IFCI) issues a letter citing "Non-achievement of Milestone -1" under the PLI scheme.

  • Ambuja Cements is rising as it receives approval from the Competition Commission of India (CCI) to acquire a 72.8% stake in Orient Cement.

  • GE Vernova T&D India is rising as it secures three orders worth approximately Rs 500 crore from Power Grid Corp of India to supply and install 765 kV class transformers and reactors of various capacities under a bulk procurement deal.

  • Coforge surges as its board of directors approves the stock split of one equity share with a face value of Rs 10, fully paid up, into five equity shares of Rs 2 each. The company also bags a 13-year contract worth $ 1.6 billion (~ Rs 13,936 crore) from Sabre Corp to accelerate product delivery and launch additional AI-enabled solutions.

  • Rail Vikas Nigam is rising as it receives a letter of acceptance (LoA) worth Rs 729.8 crore from Himachal Pradesh State Electricity Board (HPSEBL) to develop distribution infrastructure in Himachal Pradesh’s Central Zone under the Revamped Distribution Sector Scheme.

  • Nifty 50 was trading at 22,133.55 (50.9, 0.2%) , BSE Sensex was trading at 73,139.91 (150.0, 0.2%) while the broader Nifty 500 was trading at 20,008.90 (91.1, 0.5%)

  • Market breadth is highly positive. Of the 1,989 stocks traded today, 1,625 were gainers and 315 were losers.

Riding High:

Largecap and midcap gainers today include Adani Green Energy Ltd. (848.70, 10.4%), Adani Energy Solutions Ltd. (709.45, 9.7%) and Coforge Ltd. (7,814.20, 8.3%).

Downers:

Largecap and midcap losers today include Bajaj Finance Ltd. (8,298.70, -3.4%), IndusInd Bank Ltd. (971.85, -1.6%) and Voltas Ltd. (1,387.80, -1.5%).

Volume Rockets

14 stocks in BSE 500 are trading on high volumes today.

Top high volume gainers on BSE included IIFL Finance Ltd. (313.70, 10.6%), Adani Energy Solutions Ltd. (709.45, 9.7%) and Coforge Ltd. (7,814.20, 8.3%).

Top high volume losers on BSE were UTI Asset Management Company Ltd. (930.55, -1.6%) and KNR Constructions Ltd. (219.83, -0.1%).

Timken India Ltd. (2,604, 3.7%) was trading at 5.3 times of weekly average. JK Cement Ltd. (4,464.10, 1.3%) and Ceat Ltd. (2,583, 7.7%) were trading with volumes 4.6 and 4.6 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

1 stock overperformed with 52 week highs, while 8 stocks hit their 52 week lows.

Stock touching their year highs included - Abbott India Ltd. (31,448.10, -0.3%).

Stocks making new 52 weeks lows included - Asian Paints Ltd. (2,164.15, 1.5%) and Bajaj Auto Ltd. (7,420.30, 1.2%).

16 stocks climbed above their 200 day SMA including Hitachi Energy India Ltd. (13,191.10, 8.2%) and Deepak Fertilisers & Petrochemicals Corporation Ltd. (1,047.40, 7.3%). 5 stocks slipped below their 200 SMA including Anand Rathi Wealth Ltd. (1,895.70, -6.5%) and Medplus Health Services Ltd. (723, -0.4%).

 
logo
The Baseline created a screener Fast growing companies with …
05 Mar 2025
 
logo
The Baseline
04 Mar 2025
Five stocks to buy from analysts this week - March 04, 2025
By Divyansh Pokharna

1. SRF:

Emkay reiterates its ‘Buy’ rating on this specialty chemicals firm with a target price of Rs 3,250. This indicates a potential upside of 13.9%. SRF is experiencing strong demand and higher prices for refrigerant gases in India. Globally, prices of R32 and R22, commonly used in air conditioning and cooling, are rising due to higher refrigerant gas prices in China and a shift to eco-friendly alternatives with lower global warming impact. Analysts Meet Vora and Meet Gada expect prices to remain stable through this season and into 2025. 

Vora and Gada noted the company’s efforts to reduce costs for key products while keeping profit margins steady (EBITDA margin at 19.7% in FY24). SRF’s new active ingredients (AIs) are expected to start making a significant impact from FY26 and reach full production by FY28. The total market for manufacturing these AIs is estimated at around $1-1.5 billion, with SRF aiming to capture a 35-40% share.

The analysts project SRF’s revenue to grow at a CAGR of 17.6% and net profit at 52% over FY25-27. This growth is expected to be driven by increasing contributions from new products, and rising refrigerant gas prices globally.

2. Godrej Properties:

Hem Securities initiates a ‘Buy’ rating on this Mumbai-based realty company with a target price of Rs 2,405. This indicates a potential upside of 19.8%. The company’s revenue grew 126% YoY to Rs 1,240 crore in Q3FY25, driven by the delivery of 2.6 million square feet (msf) of projects.

Analyst Deepanshu Jain highlights that the company has achieved 71% of its Rs 27,000 crore FY25 booking value target. Godrej Properties has surpassed its business development guidance of Rs 20,000 crore, adding 16.9 msf of saleable area with a potential booking value of Rs 23,450 crore. 

Management remains confident in achieving its Rs 30,000 crore launch target, supported by Rs 7,000 crore in Q4 launches across Hyderabad, Noida, Gurugram, Mumbai, Pune, and Indore. The company also raised Rs 6,000 crore through a qualified institutional placement (QIP) to expand its project pipeline.

Jain is optimistic about the company, citing its CY24 pre-sales of Rs 2.9 lakh crore as the highest among peers. With better cash flow, a strong land bank, and high demand, he expects sales to grow at 39.8% CAGR and net profit at 31.4% over FY25-26.

3. AU Small Finance Bank:

ICICI Securities upgrades its rating to ‘Buy’ on this bank with a target price of Rs 725, indicating a potential upside of 32.2%. AU Small Finance Bank (AU SFB) merged with Fincare Small Finance Bank in April 2024. Following the merger, AU SFB’s profitability was affected by higher-than-expected loan defaults in its credit card (CC) and microfinance (MFI) portfolios, leading to increased credit costs. For 9MFY25, credit costs stood at 5.4% in the MFI segment and 9.2% in the CC segment. 

AU SFB’s return on assets (RoA) fell to 1.5% in Q3, reflecting a continued pressure on profitability. Analysts Renish Bhuva and Chintan Shah expect RoA to gradually improve to ~1.8% by FY27, driven mainly by a reduction in credit costs, which are projected to normalize to 3% in the MFI segment and 6–7% in the credit card segment.

Bhuva and Shah are optimistic about the RBI’s 25 bps rate cut to 6.25%, believing that the bank is well-positioned to benefit the most in the current falling rate cycle. They point out that during the last rate-cut cycle, the repo rate dropped from 6.5% in December 2018 to 4% in May 2020. Within a year of the cut, AU SFB’s margins expanded by 100–120 bps.

The bank’s management has raised its net interest margin (NIM) estimate to 6% for FY25, up from its earlier guidance of 5.8% in H1 FY25, while analysts expect it to be slightly higher at 6.2%.

4. Krishna Institute of Medical Sciences:

Geojit BNP Paribas upgrades its rating to ‘Buy’ on this hospitals company with a target price of Rs 622, indicating an upside of 21.3%. In Q3FY25, the company’s revenue grew 27.5% YoY to Rs 772 crore, while average revenue per operating bed (ARPOB) increased by 25.2%. However, occupancy declined to 50.7% from 61.6% in Q3 FY24, mainly due to lower occupancy at its Telangana facilities. 

Krishna Institute of Medical Sciences (KIMS) recently signed an agreement with Valiyath Institute of Medical Sciences (VIMS) in Kerala’s Kollam district to manage its 300-bed facility. It also plans to expand capacity over the next two years, including in Telangana and Andhra Pradesh. The company has allocated Rs 500-600 crore for expansion in the coming year.

The analysts highlight that with new units set to contribute, KIMS is well-positioned to achieve its FY25 revenue growth target of 24% and continue expanding beyond that. They project revenue and profit CAGR of 28% and 32%, respectively, over FY25-27.

5. Healthcare Global Enterprises:

Axis Direct maintains a ‘Buy’ rating on this cancer care hospitals company with a target price of Rs 575, indicating an upside potential of 12.1%. In Q3FY25, revenue rose 18.9% YoY to Rs 1,058.7 crore, driven by a 3.5% YoY increase in average revenue per occupied bed (ARPOB) and 16% growth in occupied days. 

Analysts Ankush Mahajan and Aman Goyal note that during the quarter, the company acquired MG Hospital in Vizag, which contributed Rs 25 crore in revenue with EBITDA margins of 24%. The company’s digital business grew by 14% YoY, generating Rs 76 crore in revenue. Meanwhile, KKR, an American private-equity and investment firm, acquired a majority stake 54% in Healthcare Global for approximately Rs 3,350 crore, taking full control from CVC Asia.

Mahajan and Goyal stated that the company operates in the cancer treatment industry, which is expanding at 17% CAGR. To capitalize on the emerging opportunities the company plans to add 900 beds over the next 4-5 years. Management expects EBITDA margins to expand by 100-150 bps in FY26. The analysts also anticipate a 1,000 bps increase in return on invested capital (RoIC) over the next three years.

Note: These recommendations are from various analysts and are not recommendations by Trendlyne.

(You can find all analyst picks here)

 
Trendlyne Marketwatch
Trendlyne Marketwatch
04 Mar 2025
Market closes lower, HBL Engineering secures a Rs 148 crore contract from Bhopal railway
By Trendlyne Analysis

Nifty 50 closed at 22,082.65 (-36.7, -0.2%) , BSE Sensex closed at 72,989.93 (-96.0, -0.1%) while the broader Nifty 500 closed at 19,917.85 (20.9, 0.1%). Market breadth is in the green. Of the 2,446 stocks traded today, 1,419 were gainers and 997 were losers.

Indian indices closed lower, with the benchmark Nifty 50 index closing at 22,082.7 points. The Indian volatility index, Nifty VIX, rose 0.5% and closed at 13.8 points. One97 Communications (Paytm) closed 3.9% lower after it received a show-cause notice from the Enforcement Directorate for alleged violations of the Foreign Exchange Management Act (FEMA), involving Rs 611 crore.

Nifty Smallcap 100 closed higher, while Nifty Midcap 100 closed flat. Nifty Media and Nifty PSU Bank closed in the green. According to Trendlyne’s sector dashboard, Healthcare Equipment & Supplies emerged as the best-performing sector of the day, with a rise of 2.8%.

European indices are trading in the red, except for Russia’s RTSI and MOEX. Major Asian indices closed flat or lower. US index futures are trading mixed, indicating a cautious start to the session. Trump's 25% tariffs on Canada and Mexico take effect today, along with a 10% duty on China, raising the total tariff to 20%. In response, China announced 15% tariffs on US exports, while Canada plans to impose 25%. Meanwhile, Target, Ross Stores, Best Buy, Nordstrom, and CrowdStrike are set to report their earnings later today.

  • Relative strength index (RSI) indicates that stocks like Route Mobile, Tata Communications, Grindwell Norton and Cera Sanitaryware are in the oversold zone.

  • Zydus Lifesciences is rising as it is set to develop the world’s first combination vaccine to offer protection against shigellosis and typhoid in infants and children. The project, backed by the Gates Foundation, begins in March 2025 and includes early-stage development, animal immunogenicity studies, and regulatory preclinical toxicology assessments.

  • Ventura initiates coverage on State Bank of India with a 'Buy' call and a target price of Rs 1,049 per share. This indicates a potential upside of 46.3%. The brokerage believes the bank's asset quality will stabilise, with the gross and net NPAs at 1.6% and 0.4% by FY27E, respectively. It expects the lender's net interest income to grow at a CAGR of 13.5% over FY25-27.

  • HBL Engineering rises sharply as the HBL-Shivakriti consortium receives a letter of acceptance (LoA) for a Rs 148.4 crore contract from West Central Railway's Bhopal division. The contract involves installing KAVACH across multiple railway sections in the region, set for completion in 540 days.

  • Senores Pharmaceuticals rises over 5% as its US subsidiary acquires 14 abbreviated new drug applications (ANDAs) and its applicable affiliates from Dr. Reddy’s Laboratories.

  • Maharashtra state tax authorities inspect Poonawalla Fincorp's records at its registered office in Pune under Section 67 of the Central and Maharashtra Goods and Services Tax Act, 2017.

  • Godrej Properties is falling as it cancels its land development agreement with TCM for a project in Thrikkakara, Kochi.

  • Zen Technologies rises as it secures its third patent for the T-90 tank simulator. The patent is for a portable, high-tech driving simulator designed to train military personnel.

  • Reliance Industries declines after the Delhi High Court overturns a previous arbitration ruling in favour of RIL, BP Exploration, and NIKO in the KG-D6 gas field dispute with the government. The company had earlier won this case against the Government of India (GOI) over claims of alleged gas migration from ONGC’s blocks. The arbitration panel had awarded $1.55 billion (approximately Rs 12,900 crore) to the consortium.

  • RateGain Travel Technologies is rising as it partners with Mews to improve hotel operations, enhance guest experiences, and drive revenue growth. The integration of RateGain’s Channel Manager with Mews’ cloud-native property management system enables hoteliers to manage rates, inventory, and reservations across over 400 distribution channels.

  • Axis Direct retains its 'Buy' call on Ultratech Cement with a higher target price of Rs 13,510 per share. This indicates a potential upside of 29.5%. The brokerage remains positive on the stock's growth driven by capacity expansion, market share gains, operational efficiencies, and benefits from industry consolidation. It expects the firm's net profit to grow at a CAGR of 28% over FY25-27.

  • Suzlon Energy is rising as it bags another order for 65 S144 wind turbine generators (WTGs) with a total capacity of 204.8 MW from Jindal Renewables' subsidiary, Jindal Green Wind 1. This is the third order from Jindal Renewables, bringing the total capacity of the orders to 907.2 MW.

  • Ravi Jakhar, Chief Strategy Officer at Allcargo Group, remains optimistic about achieving double-digit growth in the domestic express business. He highlights that the company's contract logistics are expanding at 40-50% and expects this trend to continue. He adds that air volumes will constitute around 5% of the total, with 95% coming from surface volumes. Jakhar also mentions that the company has received shareholder approval for its demerger and plans to implement it within the next three months.

  • Wells Fargo offloads 26.6 lakh ITC shares worth Rs 106.6 crore through a block deal at an average price of Rs 401.6 per share.

  • Solar Industries India is rising as its wholly-owned subsidiary, Solar Defence and Aerospace, secures a contract worth Rs 239 crore from the Ministry of Defence, Government of India, to supply multi-mode hand grenades.

  • IndiGrid Infrastructure Trust's subsidiary, IndiGrid 2, receives a Letter of Intent (LoI) from REC Power Development and Consultancy for an inter-state transmission project under the tariff-based competitive bidding (TBCB) framework. The project will be completed in 24 months, with annual transmission charges of Rs 195.2 crore post-commissioning

  • Citi upgrades SBI to a 'Buy' rating and raises its target price to Rs 830. The brokerage highlights the bank's strong focus on enhancing net interest margins (NIMs) through greater attention to current account deposits, reduced reliance on bulk deposits, and optimization of borrowing costs. It believes the bank's upcoming loan repricing and growth in higher-yielding loans will further boost NIMs.

  • Indian Energy Exchange's electricity volume increases by 9% YoY to 9,622 million units (MU) in February. IEX Green Market achieves a volume growth of 85% YoY to 552 MU.

  • Time Technoplast is rising as it expands its polyethylene (PE) pipe segment with pipes designed for gas distribution in public and private sectors. The company expects 30% growth in this segment.

  • Azad Engineering rises sharply as it raises Rs 700 crore through a qualified institutional placement (QIP) of 54.7 lakh shares at an issue price of Rs 1,278 per share.

  • One 97 Communications (Paytm) receives a show-cause notice from the Enforcement Directorate (ED) for alleged violations of the Foreign Exchange Management Act (FEMA), 1999, involving Rs 611 crore. The ED claims Paytm made foreign investments in Singapore but did not report the creation of an overseas step-down subsidiary to the Reserve Bank of India (RBI).

  • Uno Minda establishes a research & development (R&D) and engineering centre in the Czech Republic. The facility will focus on developing lighting technologies for the automotive industry.

  • Maharashtra State GST officials conduct searches at three RBL Bank offices under Section 67 of the Maharashtra Goods and Services Tax Act, 2017.

  • ASK Automotive surges as it signs a Technical Assistance and License Agreement with Japan’s Kyushu Yanagawa Seiki (KYSK) to manufacture high-pressure die-cast alloy wheels for two-wheelers.

  • Glenmark Pharmaceuticals launches acetylcysteine injection single-dose vials after acquiring the abbreviated new drug application (ANDA) from Aspen Pharma USA. The injection has a market size of $15.2 million (~ Rs 132.8 crore) for the year ending January 2025, according to IQVIA.

  • Nifty 50 was trading at 21,968.45 (-150.9, -0.7%), BSE Sensex was trading at 72,728.21 (-357.7, -0.5%) while the broader Nifty 500 was trading at 19,683.55 (-213.4, -1.1%).

  • Market breadth is moving down. Of the 1,980 stocks traded today, 270 were on the uptrend, and 1,669 went down.

Riding High:

Largecap and midcap gainers today include Hindustan Petroleum Corporation Ltd. (315.20, 5.8%), General Insurance Corporation of India (382.20, 5.3%) and GlaxoSmithKline Pharmaceuticals Ltd. (2,647.55, 5.1%).

Downers:

Largecap and midcap losers today include Bajaj Auto Ltd. (7,333.30, -5.0%), Adani Green Energy Ltd. (768.55, -4.4%) and Supreme Industries Ltd. (3,377.35, -4.4%).

Volume Shockers

17 stocks in BSE 500 are trading on high volumes today.

Top high volume gainers on BSE included India Cements Ltd. (295.20, 15.1%), Concord Biotech Ltd. (1,743.50, 14.6%) and Sun Pharma Advanced Research Company Ltd. (127.04, 13.4%).

Top high volume loser on BSE was Sapphire Foods India Ltd. (319.90, -1.9%).

AstraZeneca Pharma India Ltd. (7,306.25, 6.5%) was trading at 11.6 times of weekly average. DCM Shriram Ltd. (1,013.50, 9.7%) and Schaeffler India Ltd. (3,212.70, 4.1%) were trading with volumes 10.5 and 8.1 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

2 stocks hit their 52 week highs, while 56 stocks hit their 52 week lows.

Stocks touching their year highs included - Abbott India Ltd. (31,539.90, 1.1%) and Narayana Hrudayalaya Ltd. (1,559.85, -3.5%).

Stocks making new 52 weeks lows included - Asian Paints Ltd. (2,132.10, -1.6%) and Astral Ltd. (1,306.85, -3.1%).

8 stocks climbed above their 200 day SMA including AstraZeneca Pharma India Ltd. (7,306.25, 6.5%) and Godrej Agrovet Ltd. (738.40, 2.8%). 13 stocks slipped below their 200 SMA including Jubilant Foodworks Ltd. (610.25, -3.7%) and Five-Star Business Finance Ltd. (695.95, -3.3%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
03 Mar 2025
Market closes flat, Bombay Dyeing receives a Rs 440.2 crore GST demand
By Trendlyne Analysis

Nifty 50 closed at 22,119.30 (-5.4, 0.0%), BSE Sensex closed at 73,085.94 (-112.2, -0.2%) while the broader Nifty 500 closed at 19,896.95 (16.1, 0.1%). Market breadth is sharply down. Of the 2,468 stocks traded today, 623 were on the uptrend, and 1,821 went down.

Indian indices closed flat, with the benchmark Nifty 50 index closing at 22,119.3 points. The Indian volatility index, Nifty VIX, declined 1.1% and closed at 13.8 points. India’s manufacturing PMI declined to a 14-month low of 56.3 in February, compared to 57.7 in January, due to softer demand in the sector despite rising export orders.

Nifty Midcap 100 closed flat, while Nifty Smallcap 100 closed in the red. BSE Power & BSE Capital Goods were among the top index gainers today. According to Trendlyne’s Sector dashboard, General Industrials emerged as the best-performing sector of the day, with a rise of 1.5%.

Asian indices closed mixed, while European indices are trading higher except Russia’s MOEX & RTSI index. US index futures traded in the green, indicating a positive start to the trading session. Brent crude oil futures are trading in the red. UBS adopted a cautious outlook on the US market, pointing to factors like extremely high relative valuations, a slowdown in the pace of buybacks, and crowded conditions in the US according to their data. They also highlighted that the gap in relative GDP growth between the US, Europe, and Japan is narrowing.

  • Money flow index (MFI) indicates that stocks like VIP Industries, Oracle Financial Services, Cera Sanitaryware, and Tata Elxsi are in the oversold zone.

  • MOIL rises as it revises manganese ore prices from March 1, 2025, raising ferro-grade ore (Mn 44% and above) by 10% and lower grades by 6.5%. The company's February production stands at 1.5 lakh tonnes, with exploratory core drilling up 43% YoY to 11,455 meters.

  • Bombay Dyeing and Manufacturing is falling as it receives a GST demand worth Rs 440.2 crore from the deputy Commissioner of State Tax, Mumbai, for FY21.

  • ICICI Securities retains its 'Buy' call on Crompton Greaves Consumer Electricals with a lower target price of Rs 440 per share. This indicates a potential upside of 34.9%. The brokerage believes that the company's air cooler segment will report robust growth owing to expectations of a hot summer. It expects the firm's revenue to grow at a CAGR of 11.6% over FY25-27.

  • India’s manufacturing PMI declines to a 14-month low of 56.3 in February, compared to 57.7 in January, due to softer demand in the sector despite rising export orders.

  • IndusInd Bank is falling as Integrated Core Strategies sells 50.9 lakh shares via a bulk deal at an average price of Rs 986.7 per share.

  • Tata Motors falls to its 52-week low of Rs 606.3 as its total domestic wholesales decline 9% YoY to 77,232 units in February due to a 7% YoY and 9% YoY drop in commercial vehicle and passenger vehicle sales, respectively.

  • MSTC falls as it receives a Rs 105.6 crore tax demand from the Income Tax Department for AY 2019-20. The company plans to challenge the assessment and file an appeal before the Commissioner of Income Tax.

  • TeamLease Services declines as Goldman Sachs India Equity Portfolio sells over 2 lakh shares via multiple bulk deals for Rs 48.8 crore. Meanwhile, Nippon India Mutual Fund acquires 2.7 lakh shares in the company worth Rs 50.7 crore.

  • Jindal Worldwide's board of directors approves the issue of 4 bonus shares for every share held in the company. The company will issue up to 80.2 crore shares.

  • Larsen & Toubro rises as its power transmission and distribution unit secures large orders worth Rs 2,500-5,000 crore in India and overseas. The company will develop transmission lines for a renewable energy zone in Uttar Pradesh and a 380 kilovolt (kV) substation in Saudi Arabia.

  • Maruti Suzuki's total sales grow by 5.1% YoY to 1.9 lakh units in February. Passenger vehicle sales increase 5.4% YoY, while commercial vehicle sales are down 8.1% YoY.

  • The Bombay High Court grants an urgent hearing to the pleas filed by SEBI and BSE against the FIR order in the Cals Refineries case. The FIR alleges that SEBI officials facilitated market manipulation and corporate fraud by approving the company's listing, which did not meet the required norms. SEBI and BSE's former chairpersons, Madhabi Buch and Pramod Agarwal, are named in the FIR along with three whole-time members of SEBI.

  • Eicher Motors is rising as its total sales grow by 19% YoY to 90,670 units in February. Domestic vehicle sales increase 19.4% YoY, while exports are up 23% YoY.

  • Reliance Industries plunges to its 52-week low of Rs 1,156 per share as reports suggest it could receive a $14 million (~ Rs 122.3 crore) penalty for failing to establish a battery cell plant. This project is part of the government's push to cut import dependence under the PLI program, where manufacturers are eligible for Rs 18,100 crore subsidies to meet milestones for the project to set up 30 GWh of advanced chemistry cell battery storage.

  • Adani Ports and Special Economic Zone handles 36.5 million metric tonnes (MMT) of cargo in February, primarily driven by an increase in containers (16% YoY) and liquids & gas (12% YoY). For FY25, the company expects cargo volumes to range between 460-480 MMT.

  • A report by Centrum projects India's GDP growth for FY25 at 6.5%, with the economy expected to accelerate in Q4. Factors like robust government capital spending, a recovery in the rural economy, a possible rise in private investment, and further rate cuts by RBI are expected to support recovery in the coming quarters. The brokerage believes the potential boost in consumption demand from spending during the 'Maha-Kumbh' could positively influence the growth outlook.

  • Dalmia Bharat, through its subsidiaries, announces a Rs 3,520 crore investment in Maharashtra and Karnataka. The company plans to set up a 3.6 million tonnes per annum (MnTPA) clinker and 3 MnTPA grinding unit in Belgaum, Karnataka, along with a new 3 MnTPA greenfield split grinding unit in Pune, Maharashtra.

  • Mankind Pharma falls sharply as it receives a Rs 111.7 crore tax demand from the Income Tax (IT) Department for AY 2021-22. The company believes the demand is not tenable and plans to appeal against the order under applicable laws.

  • Piramal Enterprises is falling as it receives a GST demand worth Rs 1,502 crore from the Deputy Commissioner of State Tax, Maharashtra, for the sale of its pharma business for Rs 4,487 crore. The department contends that the sale is an itemized sale instead of a slump sale, levying an 18% GST on the sale consideration.

  • Ola Electric declines over 4% as it reportedly plans to lay off more than a thousand employees and contract workers across multiple departments to reduce its growing losses.

  • Indian Overseas Bank plunges to its 52-week low of Rs 41.2 per share as it receives a GST demand worth Rs 699.5 crore for assessment year FY21 from the Deputy Commissioner, Large Taxpayers Unit, Chennai.

  • Mastek is falling as it receives a warning letter from the Securities and Exchange Board of India (SEBI) after identifying unpublished price-sensitive information.

  • NCC is rising as its transport division bags an order worth Rs 218.8 crore from a state government.

  • Ujjivan Small Finance Bank is rising as it sells its non-performing assets (NPAs) worth Rs 364.5 crore to an asset reconstruction company (ARC) for a consideration of Rs 34.3 crore.

  • Markets rise on early trading, Nifty 50 was trading at 22,253.75 (129.1, 0.6%), BSE Sensex was trading at 73,560.62 (362.5, 0.5%) while the broader Nifty 500 was trading at 19,987.70 (106.8, 0.5%).

  • Market breadth is overwhelmingly positive. Of the 2,074 stocks traded today, 1,372 were on the uptrend, and 650 went down.

Riding High:

Largecap and midcap gainers today include Tube Investments of India Ltd. (2,640.10, 7.2%), Supreme Industries Ltd. (3,532.80, 6.1%) and Prestige Estates Projects Ltd. (1,184, 5.1%).

Downers:

Largecap and midcap losers today include Indian Renewable Energy Development Agency Ltd. (147.31, -5.6%), Central Bank of India (42, -4.5%) and UCO Bank (34.84, -4.2%).

Movers and Shakers

18 stocks in BSE 500 are trading on high volumes today.

Top high volume gainers on BSE included Anupam Rasayan India Ltd. (709.30, 12.2%), Narayana Hrudayalaya Ltd. (1,615.60, 11.8%) and Authum Investment & Infrastructure Ltd. (1,566.95, 11.2%).

Top high volume losers on BSE were Angel One Ltd. (1,978.05, -8.8%), Hatsun Agro Products Ltd. (898.30, -7.6%) and Jubilant Ingrevia Ltd. (580.55, -5.8%).

Welspun Living Ltd. (116.87, 9.3%) was trading at 8.3 times of weekly average. Action Construction Equipment Ltd. (1,026.50, -2.3%) and Blue Star Ltd. (2,032.50, 6.0%) were trading with volumes 7.6 and 5.7 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

2 stocks made 52 week highs, while 162 stocks were underachievers and hit their 52 week lows.

Stocks touching their year highs included - Abbott India Ltd. (31,183.55, 2.6%) and Narayana Hrudayalaya Ltd. (1,615.60, 11.8%).

Stocks making new 52 weeks lows included - 3M India Ltd. (26,275.90, -0.1%) and ACC Ltd. (1,825.75, 0.4%).

10 stocks climbed above their 200 day SMA including Authum Investment & Infrastructure Ltd. (1,566.95, 11.2%) and Sapphire Foods India Ltd. (326.05, 5.1%). 18 stocks slipped below their 200 SMA including eClerx Services Ltd. (2,622.55, -7.5%) and Multi Commodity Exchange of India Ltd. (4,715.15, -5.5%).

 
logo
The Baseline
28 Feb 2025
Five Interesting Stocks Today - February 28, 2025
By Trendlyne Analysis

1. Ultratech Cement:

This cement & cement products company fell 6.2% since Thursday despite announcing its foray into the wires and cables (W&C) segment, investing Rs 1,800 crore to set up a plant in Gujarat over the next two years. 

The stock plunged after analysts at Citi Research said the expansion would hurt Ultratech’s positioning as a pure-play cement company. Other analysts at JM Financial, Axis Capital, and Jefferies noted that the firm’s investment in a non-cement business might raise doubts among investors about capital allocation. 

The company’s board of directors also approved the demerger of the cement business from its subsidiary, Kesoram Industries. As per the demerger agreement, shareholders of Kesoram Industries will get one share of the demerged entity for every 52 shares held in the company.

The board aims to meet the growing demand for wires and cables across residential, commercial, infrastructure, and industrial sectors. The wires and cables industry grew at a CAGR of 13% from FY19-24. 

CLSA expects the new segment to drive 4x- 5x revenue growth with 11-13% margins. However, the brokerage expects rising competition in the wires and cables segment may hurt sector profitability. It also expects UltraTech to prioritize wires over cables in its new venture. 

Speaking on the expansion plans, Ultratech Cement’s Chairman, Kumar Mangalam Birla said, “We intend to expand our presence in the construction value chain through our foray in the cables and wires segment, which aligns with our vision of providing comprehensive solutions to our end customers in the construction sector.”

The company’s expansion news came as a disaster for the cables & wires industry, with Polycab India, KEI Industries, R R Kabel, and Havells India plunging 18.8%, 21%, 19.8%, and 6.2%, respectively, on Thursday. These stocks fell after expectations of de-rating and margin pressure from investors.

2. Blue Star:

This air conditioner manufacturer's stock rose 2.5% on February 27 after it announced the commissioning of a new assembly line for room air conditioners (AC) at its Sri City plant in Andhra Pradesh. The company has allocated Rs 200 crore for the project, expanding its capacity by 20,000 units per month.

Blue Star’s Sri City facility is operating at full capacity with 6.5 lakh units and will expand to 12 lakh units by FY27. The company aims for a 13.8% market share by FY25 and 14.3% in FY26. Its 15% target, initially set for FY25, has been pushed to FY27.

Managing Director B. Thiagarajan said, "We aim to maintain an 8.5% operating margin while working towards a 15% market share. The original equipment manufacturers (OEMs) are increasing their production capacity, which should help stabilize supply and demand." He also mentioned that the room AC market is expected to grow by 20-25% with a promising summer ahead.

In Q3FY25, Blue Star’s revenue grew 20% YoY, driven by outperformance in the electro-mechanical projects and commercial AC segment. Net profit rose 36% YoY, driven by lower finance costs and inventory destocking. Both revenue and net profit beat Forecaster estimates by 4% and 5%, respectively.

Over the past quarter, foreign investors increased their holdings from 18.1% to 18.5%, while mutual funds reduced their stake from 20.8% to 20.1%. However, mutual funds have shown renewed interest, as the stock appears in a screener of companies where they increased holdings in the last month.

Jefferies downgraded Blue Star to 'Hold', citing limited upside potential after the stock surged 140% in CY24. However, the brokerage noted that demand for ACs and cooling products in Q4FY25 is expected to exceed 25%.

3. Havells India:

This electrical equipment company fell 6.2% to a new 52-week low of Rs 1,402.2 on Thursday, following UltraTech Cement's announcement of its entry into the wires and cables segment, with a Rs 1,800 crore investment over the next two years. This development is expected to intensify competition and lead to pricing pressures in the industry, impacting companies like Havells India, Polycab India, and KEI Industries.

In Q3FY25, Havells' net profit fell 3.3% YoY to Rs 278.3 crore as its EBITDA margin contracted 100bps YoY to 8.8%. However, revenue grew 10.8% YoY to Rs 4,889 crore, driven by the wires and cables segment, which rose 7% YoY to Rs 1,690 crore. This segment contributes 35% to the total revenue. 

The lighting segment faced challenges due to price cuts owing to competitive pressure from brands like Philips, which impacted the margins. Havells’ Lloyd division, acquired in 2017 for Rs 1,600 crore, still remains unprofitable. Although performance improves during peak seasons, the division has not yet achieved full-year breakeven.

Havells India plans to enter the electric vehicle (EV) charging market within the next six months. Vivek Yadav, Executive Vice President of the company,stated, “The EV scene in India is set to grow multi-fold. We identified chargers as a key business, as the charging infrastructure in India is still nascent.” The company intends to start with a business-to-business focus on automakers before expanding into the retail market.

Additionally, Havells is investing in internet-connected household devices, enhancing its Internet of Things (IoT) capabilities, which enables consumers to monitor and optimize their energy consumption efficiently. Yadav noted that the company allocates over 2% of its turnover to research and development.

Motilal Oswal maintains its ‘Neutral’ rating on the company, highlighting that while revenue growth in Q3FY25 was driven by improved consumer demand, lower margins in the switchgear segment and higher losses in the Lloyd division weighed on earnings. The brokerage expects revenue, EBITDA, and net profit to grow at a CAGR of 14%, 21%, and 23% over FY25-27.

4. Chalet Hotels:

Thishotel company’s share price rose 3.6% over the past week afterICICI Securities increasedthe target price to Rs 1,017 (from Rs 965 earlier) while retaining its ‘Buy’ call. Chalet Hotels recentlyacquired Mahananda Spa and Resorts in an all-cash deal worth Rs 530 crore. 

This deal adds the Westin Resort & Spa to Chalet Hotels' portfolio. The acquired hotel has 141 rooms, with an expected average room rate of Rs 25,000-30,000 per night. The resort has 45% occupancy and is expected to reach 60% within a year. With the addition of these 141 rooms, the company will have around 3,200. It aims to reach around 5,000 rooms over the next two quarters. 

Chalet Hotels’ revenue grew 21.9% YoY to Rs 457.8 crore inQ3FY25, beatingTrendlyne’s Forecaster estimates by 0.6%. Improvements in the hospitality and rental segments drove growth. Meanwhile, net profit increased 36.7% YoY to Rs 96.5 crore.

During thequarter, the company’s hospitality revenue grew 17% YoY. Chalet Hotels’ revenue per available room (RevPAR) increased 16% to Rs 9,090, while its occupancy reached 70%. The management is optimistic that the company will achieve double-digit RevPAR in FY25. 

Commenting on the future outlook, Managing Director and CEO Sanjay Sethisaid, “Q4 is always better than Q3, and we expect this trend to continue in the coming quarters. For Q1FY26, we see weddings contributing to demand, which was not the case last year, providing an upside. Additionally, we expect corporate travel to remain strong in the coming months.”

ICICI Securities believes the recent acquisition strengthens growth prospects while its expansion plans are on track. The brokerage is optimistic about Chalet's growth, citing its rental expansion, hotel developments, and upcoming projects like the Taj Hotel at Delhi Airport T3, Hyatt Regency Navi Mumbai, and CIGNUS POWAI Tower II. Analysts expect strong industry demand driven by leisure and business travel. The changing preference for branded hotels, a shift of weddings to hotels, and growth in destination weddings also bode well for the hotel operator.

5. Bharti Airtel:

Thistelecom company surged 2.5% on Wednesday following theannouncement of ongoing discussions to merge the Tata Group’s DTH business with its own. This deal is reportedly expected to be structured as a share swap, with Airtel acquiring a majority stake and existing Tata Play shareholders retaining a 45-48% stake in the combined entity.

InQ3, the firm reported revenue growth of 19%, and its net profit surged six times YoY. Both revenue and net profit exceeded Forecaster estimates. The surge in net profit was due to the consolidation of Indus Towers and a lower tax rate. Average revenue per user (ARPU) grew 18% YoY to Rs 245, driven by tariff hikes, and net subscriber addition stood at around 5 million, 50% higher than that of Jio.

Mobile services, whichcontribute most of its revenue, surged 21% YoY as subscribers transitioned from 2G to 4G. Postpaid subscriber growth of 13% YoY and rising ARPU added to the revenue surge. VC and MD Gopal Vittal believes that 80 million subscribers can potentially upgrade to Airtel’s postpaid services, further adding to the growth momentum.

Bharti Airtel incurred 5% lower capex of Rs 7,400 crore in Q3 compared to the same period last year. Vittalsaid, “We are not putting any investments in 4G capacity; all we are doing is a few more 5G radios as we expand and see more devices coming in.” He expects capex to decline this year and further reduce in FY26.

ICICI Securitiesmaintains a ‘Buy’ rating on the stock as it expects Bharti to increase its market share further and narrow its gap with Jio. They also believe that disciplined capital allocation and tight control on capex will improve EBITDA margins by 410bps in FY26. With a target price of Rs 1,925, Bharti Airtel has a potential upside of 22.6%.

Trendlyne's analysts identify stocks that are seeing interesting price movements, analyst calls, or new developments. These are not buy recommendations.

 
Trendlyne Marketwatch
Trendlyne Marketwatch
28 Feb 2025
Market closes lower, Solar Industries bags Rs 2,150 crore export orders for defence products
By Trendlyne Analysis

Nifty 50 closed at 22,124.70 (-420.4, -1.9%), BSE Sensex closed at 73,198.10 (-1,414.3, -1.9%) while the broader Nifty 500 closed at 19,880.90 (-434.7, -2.1%). Market breadth is highly negative. Of the 2,430 stocks traded today, 340 showed gains, and 2,077 showed losses.

Indian indices closed lower with the Nifty 50 closing at 22,124.7 due to the MSCI reshuffle, FII sell-off, and rising US bond yield. The Indian volatility index, Nifty VIX, rose 4.5% and closed at 13.9 points. Granules India closed 8.9% lower as it received a warning letter from the US FDA with an official action indicated (OAI) following an inspection at its Gagillapur facility.

Nifty Smallcap 100 and Nifty Midcap 100 closed in the red. Nifty IT and Nifty Auto were among the worst-performing indices of the day. According to Trendlyne’s sector dashboard, Telecom Services emerged as the worst-performing sector of the day, with a fall of 5.1%.

European indices are trading in the red, except the UK’s FTSE 100 index, which is trading 0.2% higher. Major Asian indices closed lower. US index futures are trading lower after President Donald Trump’s announcement that tariffs on Canada and Mexico would proceed as planned.

  • Relative strength index (RSI) indicates that stocks like Sonata Software, TCS, Dr Lal Pathlabs and KNR Construction are in the oversold zone.

  • MPS' board approves raising funds up to Rs 300 crore through the issuance of equity shares. The company plans to do this through one or more public or private offerings, including a qualified institutional placement.

  • Zen Technologies secures a patent for its Automated Hard Kill Firearm Mounting System. The system enhances defense capabilities by autonomously detecting and engaging targets, reducing response times and improving operational efficiency in combat.

  • Angel One falls sharply as it reports a compromise of some Amazon Web Services (AWS) resources and potential unauthorized access to client data. The company has hired an external forensic partner to investigate the impact.

  • The Union Ministry of Ports, Shipping and Waterways establishes regulations to set up jetties and terminals by various entities, including private, public, and joint ventures, on national waterways across the country. This regulation aims to promote the use of inland waterways and increase participation from the private sector. 

  • Anupam Rasayan India is rising as it signs a letter of intent (LoI) with US-based Elementium Materials to supply essential chemicals for an advanced electrolyte used in electric vehicle (EV) batteries. The supply begins by the end of FY26 under a potential five-year agreement valued at $350-450 million (approximately Rs 3,000-4,000 crore).

  • ICICI Securities upgrades AU Small Finance Bank to 'Buy' from 'Hold' with a higher target price of Rs 725 per share. This indicates a potential upside of 30.8%. The brokerage expects the bank to maintain its RoA at 1.6% in FY25 and improve to around 1.8% by FY27, in line with management guidance. It expects the firm's net interest income (NII) to grow at a CAGR of 21.7% over FY25-27.

  • Solar Industries India receives export orders worth Rs 2,150 crore from international clients to supply defence products, with deliveries scheduled over six years.

  • India's Contract Research Development and Manufacturing Organisation sector reportedly requests the government to reduce regulatory bottlenecks and to increase rate of approvals for raw materials imports.

  • KSB rises as its Q3FY25 net profit grows 33.2% YoY to Rs 73.1 crore owing to lower finance costs and inventory destocking. Revenue jumps 21% YoY to Rs 736.6 crore, driven by a higher contribution from the pumps and valves segments. It appears in a screener of stocks with consistently high returns over the past five years.

  • PSP Projects secures work orders worth Rs 1,764.1 crore for various infrastructure and construction projects in Ahmedabad, primarily in the institutional and residential sectors.

  • GE Power India secures an additional Rs 273.5 crore contract from GREENKO KA01 IREP for the Saundatti Hydro project in Karnataka. The contract covers electromechanical work for an additional 320 MW unit at the pumped storage facility.

  • European Commission (EC) President Ursula von der Leyen indicates that the EU is in agreement with the Indian Government to conclude the free trade deal by the end of 2025. The EC and the Indian Government will meet today and tomorrow to highlight key sectors for cooperation as part of the partnership.

  • Granules India plunges as it receives a warning letter from the US FDA with an official action indicated (OAI) following an inspection at its Gagillapur facility.

  • Tata Consultancy Services extends its partnership with Norway’s DNB Bank ASA for five years. TCS continues to support DNB’s digital transformation, application development, security improvements, and innovation.

  • Transrail Lighting rises sharply as it secures orders worth Rs 2,752 crore, mainly in the transmission and distribution (T&D) segment.

  • Analysts at ICICI Bank expect India's GDP to grow by 6.3% in Q3FY25 due to an improvement in rural consumption, agriculture output and an increase in the government's capex and industrial activity. However, lower urban consumption and a decline in real estate activity are expected to dampen growth. The brokerage expects a growth of 6.3% in FY25 and 6.5% in FY26. 

  • Life Insurance Corp of India receives a Rs 479.9 crore demand order for goods & services tax, interest and penalty from the Commissioner of State Tax, Mumbai.

  • Rajoo Engineers' board of directors schedules a meeting for March 4 to consider a proposal to raise funds via a qualified institutional placement (QIP) of equity shares.

  • Coal India is rising as its board of directors approves imposing an additional charge of Rs 300 per tonne across NLC mines. The board estimates an additional revenue of Rs 3,877.5 crore.

  • The Securities and Exchange Board of India (SEBI) appoints Finance Secretary, Tuhin Kanta Pandey, as the new Chairperson for the next three years, replacing Madhabi Puri Buch. 

  • Rail Vikas Nigam receives a letter of acceptance worth Rs 135.7 crore from Central Railway for setting up a 132/55 kV traction substation and related infrastructure in the Bhusaval-Khandwa section. The project, under the EPC mode, supports a 3,000 MT loading target.

  • Mankind Pharma receives approval from the National Company Law Tribunal (NCLT) for the merger of Shree Jee Laboratory, JPR Labs and Jaspack Industries with itself.

  • Schaeffler India is rising as its Q3FY25 net profit grows 13.2% YoY to Rs 237.3 crore, helped by lower finance costs. Revenue jumps 14% YoY to Rs 2,170.9 crore, driven by an improvement in the vehicle lifetime solutions and bearings & industrial solutions segments. It features in a screener of stocks outperforming their industries over the past quarter.

  • Tata Power's subsidiary, TP Solar, secures a Rs 632 crore contract from the Solar Energy Corporation of India (SECI) to supply 292.5 MWp Domestic Content Requirement (DCR) solar modules to a designated site in Ramagiri, Andhra Pradesh.

  • Market sinks in morning trading. Nifty 50 was trading at 22,322.05 (-223, -1.0%) , BSE Sensex was trading at 74,039.40 (-573.0, -0.8%) while the broader Nifty 500 was trading at 20,041.10 (-274.5, -1.4%)

  • Market breadth is highly negative. Of the 1,949 stocks traded today, 193 were on the uptick, and 1,720 were down.

Riding High:

Largecap and midcap gainers today include Star Health and Allied Insurance Company Ltd. (375.30, 3.0%), Phoenix Mills Ltd. (1,548.10, 2.4%) and HDFC Bank Ltd. (1,732.40, 1.9%).

Downers:

Largecap and midcap losers today include Jubilant Foodworks Ltd. (626.10, -6.7%), Indian Railway Finance Corporation Ltd. (112.42, -6.6%) and Jio Financial Services Ltd. (207.61, -6.4%).

Movers and Shakers

55 stocks in BSE 500 are trading on high volumes today.

Top high volume gainers on BSE included Home First Finance Company India Ltd. (1,018.65, 10.1%), Craftsman Automation Ltd. (4,501.85, 7.7%) and Shoppers Stop Ltd. (536.40, 3.8%).

Top high volume losers on BSE were TBO Tek Ltd. (1,200.85, -11.7%), Granules India Ltd. (461.80, -8.9%) and Sun Pharma Advanced Research Company Ltd. (112.39, -7.7%).

Sanofi India Ltd. (5,011.55, 0.5%) was trading at 29.7 times of weekly average. JK Lakshmi Cement Ltd. (671.60, -3.1%) and IndusInd Bank Ltd. (990.10, -5.4%) were trading with volumes 19.6 and 14.6 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

157 stocks tanked below their 52 week lows.

Stocks making new 52 weeks lows included - 3M India Ltd. (26,297.30, -0.6%) and ACC Ltd. (1,818.55, -0.4%).

4 stocks climbed above their 200 day SMA including Home First Finance Company India Ltd. (1,018.65, 10.1%) and Five-Star Business Finance Ltd. (761.50, 4.2%). 28 stocks slipped below their 200 SMA including Deepak Fertilisers & Petrochemicals Corporation Ltd. (953.15, -7.4%) and Zensar Technologies Ltd. (738.45, -7.4%).

 
Trendlyne Marketwatch
Trendlyne Marketwatch
27 Feb 2025
Market closes flat, SpiceJet reports a net profit of Rs 20.4 crore in Q3FY25
By Trendlyne Analysis

Nifty 50 closed at 22,545.05 (-2.5, 0.0%) , BSE Sensex closed at 74,612.43 (10.3, 0.0%) while the broader Nifty 500 closed at 20,315.55 (-103.2, -0.5%). Market breadth is highly negative. Of the 2,428 stocks traded today, 397 were gainers and 2,004 were losers.

Nifty 50 closed flat after paring gains from the morning session. The Indian volatility index, Nifty VIX, fell 3% and closed at 13.3 points. Companies like Polycab, KEI Industries, and Havells India plunged after UltraTech Cement announced its entry into the wires and cables business with a Rs 1,800 crore investment over two years.

Nifty Smallcap 100 and Nifty Midcap 100 closed lower. Nifty Media and Nifty Alpha 50 Indices were among the top index losers today. According to Trendlyne’s sector dashboard, Telecommunications Equipment emerged as the worst-performing sector of the day, with a fall of 4.1%.

Asian indices closed mixed. European indices are trading lower, except for the UK’s FTSE 100, which is trading higher. US index futures are trading higher, indicating a positive start to the trading session as investors assess quarterly earnings from Nvidia and look ahead to Dell’s results today. Brent crude futures are trading higher as supply concerns grew after Trump revoked Chevron's Venezuela license, affecting its 240,000 barrel per day exports, over a quarter of the country's output.

  • Nestle India sees a long buildup in its February 27 futures series, with open interest increasing by 45% and a put-call ratio of 0.4.

  • ITC is falling as 30.8 crore shares, worth Rs 123.9 crore, reportedly change hands in a block deal at an average price of Rs 401.7 per share.

  • Zydus Wellness falls as its subsidiary, Zydus Wellness Products (ZWPL), receives a GST demand of Rs 56.3 crore from the tax authority. The demand relates to Heinz India's acquisition of intellectual property rights from Heinz Italia S.P.A., now merged with ZWPL.

  • SpiceJet is falling as its Q3FY25 revenue decreases 35.4% YoY to Rs 1,237 crore due to lower contribution from the air transport services, and freighter & logistics services segments. However, it posts a net profit of Rs 20.4 crore in Q3FY25 compared to a net loss of Rs 298.6 crore in Q3FY24, driven by strong passenger demand and improved operational efficiency. The company appears in a screener of stocks underperforming their industry price change in the quarter.

  • Morgan Stanley reiterates its ‘Overweight’ stance on Titagarh Rail Systems but cuts the target price to Rs 1,090 from Rs 1,300. The brokerage believes that limited freight wheelset supply from Indian Railways may impact earnings. In addition, Vande Bharat passenger projects are facing a nine-month delay due to design changes. This poses near-term execution challenges for Titagarh’s revenue growth.

  • Lemon Tree Hotels signs a license agreement for Lemon Tree Resort in Shirdi, Maharashtra. The hotel, managed by its subsidiary Carnation Hotels, will feature 50 rooms and is expected to open in FY28.

  • BNP Geojit Paribas retains its 'Buy' call on ZF Commercial Vehicle Control System with a lower target price of Rs 13,082 per share. This indicates a potential upside of 20.5%. The brokerage believes the company will grow in the long term owing to economic growth, a wider portfolio, and the government's push on infrastructure development. It expects the firm's revenue to grow at a CAGR of 17.5% over FY25-27.

  • Utkarsh Small Finance Bank's board of directors approves raising Rs 750 crore by issuing equity shares through a qualified institutional placement (QIP) or other securities.

  • NSE data shows Nifty 50 promoters offloaded stakes at a record pace, with ownership hitting a 22-year low of 41.1% in Q3FY25. Many sold as valuations peaked, booking profits before a market correction, with Cipla and Tata Motors seeing the steepest declines.

  • Nuvama Wealth Management falls sharply as Blackstone-backed PE firm PAG reportedly considers options to exit its majority stake of over 54%, valued at $1.2 billion.

  • Emkay reportedly maintains its 'Buy' call on SRF with a target price of Rs 3,250 per share. This indicates a potential upside of 14.3%. The brokerage remains positive on the company as it expects a recovery in the specialty chemicals business due to the stabilisation of existing products.

  • Mastek secures multiple contracts worth $85 million (approximately Rs 741 crore) from a UK public service department. These two-year contracts extend and expand the company’s existing collaboration to improve the department’s digital, data, and technology services.

  • George Alexander, Managing Director of Muthoot Finance, says the opening of new branches will help improve loan growth for the company. He projects an AUM growth of 25-30% in the near term, as well as a 50-60bps reduction in cost of funds for its Belstar business. Muthoot Finance received approval from the Reserve Bank of India to open 115 new branches across India on Wednesday.

  • Godrej Properties sells over 1,398 homes worth Rs 1,000 crore in its newly launched Pune project, Godrej Evergreen Square. The project spans 2.4 million sq. ft. and has an estimated revenue potential of Rs 2,045 crore.

  • Ceigall India is falling as the National Highways Authority of India (NHAI) terminates its Rs 1,071 crore contract for the four-lane Greenfield Amritsar connectivity project.

  • RailTel Corp's consortium bags two orders worth Rs 168.1 crore from the South Central Railway for signalling and communication work related to the provision of an automatic block signalling system from Errupalem to Vijayawada and Innandalur to Renigunta.

  • Bharti Airtel is in discussions with the Tata Group to explore a potential merger between Tata Play’s direct-to-home (DTH) business and Bharti Telemedia. Reports suggest the merger will be via a share swap, boosting Airtel’s non-mobile revenues. Airtel will own 52-55%, while Tata Play shareholders, including Disney, will hold 45-48%.

  • L&T Finance, Bajaj Finance, Shriram Finance, Cholamandalam Investment, and other NBFC stocks rise after the Reserve Bank of India reverses the November 2023 rule imposing an additional 25% risk weight on bank loans. The move reduces capital requirements for lenders, potentially boosting their lending capacity for consumer loans.

  • Paytm partners with Perplexity to add AI-powered search in its app. Users can ask financial questions, explore topics in local languages, and get real-time insights. This move aligns with Paytm’s efforts to expand AI use in digital payments.

  • Varun Beverages falls sharply as it delays the acquisition of SBC Beverages Ghana, valued at $15.1 million (~ RS 1,271 crore), to March 31 from February 28 due to pending regulatory approvals.

  • Ultratech Cement announces its foray into the wires and cables (W&C) segment, investing Rs 1,800 crore to set up a plant in Gujarat over the next two years. CLSA expects the new segment to drive 4x-5x revenue growth with 11-13% margins. The brokerage anticipates that rising competition may hurt sector profitability. It also expects UltraTech to prioritize wires over cables in its new venture.

  • Prestige Estates Projects is falling as the Income Tax Department conducts a search at its registered and branch offices.

  • Glenmark Pharmaceuticals launches epinephrin injection United States Pharmacopeia (USP) multiple dose vials. The injection is a bioequivalent and therapeutically equivalent to BPI Labs' reference listed drug, Epinephrine Injection USP. It has a market size of $42.7 million for the year ending December 2024, according to IQVIA.

  • Jupiter Wagons' specialised wheelset manufacturing arm, Jupiter Tatravagonka Railwheel, secures a contract worth Rs 255 crore from Braithwait & Co. to supply 9,140 wheelsets of 840 mm diameter for 25-tonne axle load applications.

  • Adani Green Energy is rising as its subsidiary, Adani Saur Urja, bags an order from Uttar Pradesh Power Corp (UPPCL) to procure 1,250 MW energy storage capacity from pumped hydro storage projects.

  • Nifty 50 was trading at 22,588.70 (41.2, 0.2%), BSE Sensex was trading at 74,706.60 (104.5, 0.1%) while the broader Nifty 500 was trading at 20,432.15 (13.4, 0.1%).

  • Market breadth is in the red. Of the 1,958 stocks traded today, 807 were gainers and 1,087 were losers.

Riding High:

Largecap and midcap gainers today include Au Small Finance Bank Ltd. (556.70, 6.2%), Shriram Finance Ltd. (606.80, 5.7%) and Cholamandalam Investment & Finance Company Ltd. (1,438.65, 5.2%).

Downers:

Largecap and midcap losers today include Polycab India Ltd. (4,679.55, -18.8%), Havells India Ltd. (1,451.25, -6.2%) and Varun Beverages Ltd. (448.30, -5.9%).

Crowd Puller Stocks

30 stocks in BSE 500 are trading on high volumes today.

Top high volume gainers on BSE included CreditAccess Grameen Ltd. (971.45, 12.1%), Aether Industries Ltd. (817.75, 6.3%) and Cholamandalam Investment & Finance Company Ltd. (1,438.65, 5.2%).

Top high volume losers on BSE were KEI Industries Ltd. (2,999.05, -21.0%), R R Kabel Ltd. (890.55, -19.8%) and Polycab India Ltd. (4,679.55, -18.8%).

Kirloskar Brothers Ltd. (1,702, 2.0%) was trading at 10.2 times of weekly average. Havells India Ltd. (1,451.25, -6.2%) and Gujarat Narmada Valley Fertilizers & Chemicals Ltd. (489.40, -10.0%) were trading with volumes 9.0 and 8.2 times weekly average respectively on BSE at the time of posting this article.

BSE 500: highs, lows and moving averages

2 stocks hit their 52 week highs, while 81 stocks were underachievers and hit their 52 week lows.

Stocks touching their year highs included - Bajaj Finance Ltd. (8,705.40, 2.6%) and Chambal Fertilisers & Chemicals Ltd. (574.75, 1.9%).

Stocks making new 52 weeks lows included - ACC Ltd. (1,825.30, -0.5%) and Alembic Pharmaceuticals Ltd. (776.10, -2.0%).

9 stocks climbed above their 200 day SMA including Shriram Finance Ltd. (606.80, 5.7%) and Bharti Hexacom Ltd. (1,306.10, 4.8%). 17 stocks slipped below their 200 SMA including Jubilant Ingrevia Ltd. (648.40, -5.3%) and Star Cement Ltd. (202.67, -4.6%).

 
logo
The Baseline
26 Feb 2025
Nifty Midcap is the winner among indices. But it's not without risks | Screener: Stocks that outperformed Q3, with strong estimates for next quarter
By Tejas MD

The Indian stock market has been caught in a bear hug. The Nifty 50 is set to post losses for the fifth straight month—a trend we haven't seen since 1996. Unlike previous sharp corrections though, this downturn has been a slow bleed, with red ink drip-dripping across the charts every month.

Just six months ago, the mood was very different. Markets were hitting record highs. It seemed like stocks could only go up.

A mix of heavy FII selling, earnings downgrades, and global uncertainty, especially from the US, sent the market into reverse. If you poured in money during the highs, well, let’s just say that it hasn’t been the most rewarding stretch.

As the joke goes, "Everyone becomes a long-term investor in a falling market."

So with this extended correction, have valuations finally become attractive, or are stocks still overpriced?

To get a clearer picture, we turned to Trendlyne’s Historical PE Analysis tool to see where things stand for the Nifty 50, Nifty Midcap 100, and Nifty Smallcap 100.

Let’s dive in.

In this week’s Analyticks, 

  • Valuation check: The benchmark Nifty 50 index turns attractive 
  • Screener: Stocks which beat Q3 Forecaster estimates for revenue and net profit with high revenue and EPS growth expectations for Q4FY25

Nifty Midcap 100 wins in the long run, but there are risks

The recent market correction has dragged the major indices down from their peaks. The Nifty 50 and Nifty Midcap 100 have entered the correction zone after falling over 10% from their highs, and the Nifty Smallcap 100 has crossed the 20% loss mark (bear market territory). 

Nifty Midcap 100 outperforms peers in long term gains

Despite these short-term setbacks, the Nifty Midcap 100 has proven its strength over the long run, outperforming both the Nifty 50 and the Nifty Smallcap 100. But this impressive performance comes with heightened valuation risks.

Sankaran Naren, Chief Investment Officer of ICICI Prudential Mutual Fund, said in an event on February 12, “India has one of the best macros in the world compared to other countries, but our smallcap and midcap valuations are absolutely absurd right now”. He asked investors to pause their SIP in the current environment.  

However on Monday, Citigroup upgraded its rating on Indian stocks from ‘neutral’ to ‘overweight’, pointing to improving consumer sentiment, expected rate cuts, and minimal exposure to US trade risk.

Midcaps shine, but earnings struggle

The Nifty Midcap 100 has historically commanded a higher price-to-earnings (PE) ratio, due to the stronger growth potential of its companies, which are seen as mid-sized and fast-growing. At 33.9, it has the highest PE among the three major indices.

But this elevated PE is also due to a sharp drop in its earnings per share (EPS) in Q4FY24.

Nifty 50 PE falls 12.2% in the past year, while Nifty Midcap 100 PE surges 33.2%

The Q3FY25 results did not help the Nifty Midcap’s EPS recover to the March 2024 level. Companies like Oil India (Oil and gas), Petronet LNG (Oil and gas), and Oracle Financial Services (Software and services) reported sharp falls in their EPS. As a result, the Nifty Midcap continues to trade at a high PE.

Analysts see Nifty 50 as the most promising, backed by historical data

Like the Nifty Midcap, the Nifty Smallcap 100 is also trading at a premium compared to its 10-year average. Nifty Midcap 100 and Smallcap 100 both beat the Nifty 50 in revenue growth - they posted a Q3FY25 revenue growth of 8.2% and 8.7%, outpacing Nifty 50’s 4.5% increase. 

But indices with high PE ratios are more vulnerable to market downturns, as seen in the past quarter. The Nifty Midcap 100 and Nifty Smallcap 100 both suffered steeper losses than the Nifty 50.

In comparison, the Nifty 50 appears more reasonably valued. Its current PE is below its historical averages, and its forward PE of 19 makes it even more appealing.

Buy zone?: 1 year forward PE of indices below current PE

Beating the bears: Midcaps dominate the list of top performers

The top-performing midcap companies have held on to their gains over the past year, even as the broader market has faced turbulence.

In contrast, smallcap stocks have taken a big hit since the correction began, wiping out the triple-digit returns that once dominated the Nifty Smallcap 100. This has especially hurt large investors who specialize in smallcaps, like Ashish Kacholia.

Top performers in Nifty Midcap 100 outperform large and Smallcap cos

Midcaps have emerged as clear winners, with all the top five stock market performers in the Nifty Midcap 100. In the Nifty 50, the auto sector has stood out, with Mahindra & Mahindra and Eicher Motors securing two of the top five spots. 

Foreign institutional investors (FIIs) have been selective in their bets. Only five companies across the three indices saw FII holdings increase by over 3% in Q3FY25: IDFC First Bank, Voltas, BSE, PNB Housing, CDSL, and Chambal Fertilisers. And none of these companies are in the Nifty 50.

Worst-performing stocks: some investors are feeling the pain

The Nifty Smallcap 100 has struggled in the past year, with only 43% of its stocks delivering gains. The Nifty Midcap 100 and Nifty 50 have fared slightly better, with 53% and 50% winner-to-loser ratios, respectively.

Four companies across the three indices have lost nearly half their value. Hopefully, none of your portfolio picks are on this list—Mangalore Refineries (falling profits), Vodafone Idea (loss-making), Sterling and Wilson (PE of 234), Tanla Platforms (falling profits) and Sonata Software(falling margins).

Five companies in the Nifty Smallcap 100 lose nearly half their value in the past year

In the Nifty 50, Adani Enterprises takes the unwanted top spot as the worst performer, shedding a third of its value over the past year.

The market correction has affected all the major indices. While midcaps have outperformed over the long term, their high valuations and recent earnings struggles raise concerns. Large caps appear more reasonably valued and could offer a safer bet amid market uncertainty. 

But foreign brokerages like Citi and Jefferies are turning bullish on Indian markets, citing Nifty 50's attractive valuation at 19x forward earnings, which is below its historical averages.

Looking ahead, factors like good Q4 earnings, rate cuts and FII interest could provide some support. But the red flags of elevated valuations in mid and small-cap stocks are still there. 

Screener: Stocks which beat Q3 Forecaster estimates for revenue and net profit with high revenue and EPS growth expectations for Q4FY25

Stocks beating Forecaster estimates are from diverse sectors

With the end of the Q3FY25 results season, we look at stocks that outperformed expectations during the quarter, that also have high growth estimates for Q4FY25. This screener shows stocks which beat Trendlyne's Forecaster estimates for revenue and net profit in Q3FY25, with high revenue and EPS YoY growth expectations for Q4FY25.

The screener consists of stocks from the aerospace & defence, cement & cement products, commercial vehicles, consumer electronics, IT consulting & software, and pharmaceuticals industries. Interesting stocks in the screener are Bharat Electronics, Ambuja Cements, Indian Hotels Company, Ashok Leyland, Blue Star, APL Apollo Tubes, Bajaj Finance, and Bharti Airtel.

Bharat Electronics features in the screener after beating Forecaster estimates for revenue and net profit by 17.4% and 37.3%, respectively, in Q3FY25. This aerospace & defence stock’s revenue and net profit grew 37.6% YoY and 52.5% YoY, respectively. Revenue growth was supported by a strong order book of Rs 71,100 crore and an order inflow of Rs 11,000 crore during 9MFY25.

Analysts at Motilal Oswal expect the company’s revenue to surge on the back of large-sized order inflows from quick reaction surface-to-air missile (QRSAM) and next-generation corvettes. However, the focus will shift to order execution. Any delays can hurt the company’s top and bottom line. 

Indian Hotels’ Q3FY25 revenue and net profit beat forecaster estimates by 4.3% and 1.1%, respectively. This hotels stock’s revenue increased by 29.4% YoY, driven by an improvement in the food & beverage and new business segments, rising average room rate (ARR), and occupancy.

Its net profit jumped by 28.9% YoY, led by improving margins in the new business segment and a recovery in US subsidiaries. Axis Direct expects the company’s revenue and net profit to grow on the back of a low supply of rooms and an increase in Foreign Tourist Arrivals (FTAs), which positively impact ARRs.

You can find more screeners here.

 
logo
The Baseline
26 Feb 2025
By Abdullah Shah

2024 witnessed a slew of global conflicts, sticky inflation, and high interest rates, resulting in Foreign Institutional Investors (FIIs) getting a lot pickier with their investments in the Indian equity market. Investments and withdrawals were sector-specific investments and withdrawals. 

The trend persists in 2025 as Trump has been known to make both friends and enemies easily, and he brings this penchant into geopolitics. Markets have reacted sharply to his tariffs against allies and his outreach to Putin. 

Since January 2024, FIIs have sold total equities worth Rs 77,597 crore. FII shareholding in Indian equities were at a 12-year low of 16% in January 2025.

Speaking on the FII sell-off, Finance Minister Nirmala Sitharaman said, “FIIs go out when they are in a position to book profits. The Indian economy has an environment today where investments are yielding good results and profit-booking is happening.” 

Sitharaman is dodging a bit here. Profit booking isn’t the only factor driving FIIs to sell. Concerns such as earnings downgrades, a weakening rupee, slower-than-expected GDP growth, and anemic private capital expenditure are also fueling the outflows.

This Chart of the Week dives into the patterns of FII investments across various sectors in the past several months.

FIIs trim holdings in Finance, Oil & Gas, and IT stocks 

The financial sector bore the brunt of FII sell-offs in 2024 and January 2025. FIIs offloaded financial sector shares worth Rs 83,229 crore since January 2024, with January and October 2024 witnessing the highest outflows of Rs 30,013 crore and Rs 26,139 crore, respectively. 

After four consecutive years of healthy double-digit growth, Indian equities faced earnings downgrades in the past two quarters. 

The Indian government's estimates for GDP in FY25 confirmed the vibes – that the economy is seeing a slowdown. Real GDP growth is estimated to decelerate to 6.4% from 8.2% in FY24. This is below both the Ministry of Finance's forecast of 6.5% and the Reserve Bank of India's projection of 6.6%. 

The Indian rupee also weakened to a record low of Rs 87.2 against the US dollar in January 2025, after the RBI stopped aggressively defending the rupee via dollar sales. This depreciation has increased currency risk for FIIs, potentially triggering further outflows as investors sought to limit foreign exchange losses. 

Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, noted, "Despite the massive FPI selling in financials, this sector is resilient since the valuations are fair and every selling is being absorbed by Domestic Institutional Investors (DIIs) and individual investors, particularly HNIs." 

The oil & gas sector also saw substantial FII exits, with total sell-offs amounting to Rs 57,912 crore by January 2025. Notably, October, November, and December 2024 alone accounted for Rs 45,616 crore of these outflows. 

Fluctuating global oil prices from geopolitical tensions and supply-demand imbalances from US sanctions on Russian crude oil, have created uncertainty in the sector. FIIs further lost confidence in the sector due to domestic policy adjustments, including changes in subsidies and taxation.

The oil & gas marketing industry’s revenue and net profit declined by 3.8% YoY and 65.8% YoY during Q3FY25, further contributing to the sell-off. With the sector weakening, BPCL fell out of the Nifty 50 index in the most recent reshuffle.

The IT sector presents a mixed picture. While specific periods saw FII interest, the overall trend  indicates caution. In January 2025, FIIs withdrew approximately Rs 6,471 crore from IT stocks, reversing the Rs 14,566 crore invested in November and December 2024. Signs of a potential slowdown in key markets such as the US, have investors anticipating reduced demand for IT services.

High valuations in the IT sector and earnings downgrades prompted FIIs to book profits. Aamar Deo Singh, Senior Vice President of equity, commodity, and currency at Angel One, referred to this as a "double whammy," as the dip in consumer sentiment follows higher-than-expected January inflation figures of 3% compared to 2.9% in December. 

Consumer Services and Capital Goods sectors see limited FII interest

FIIs showed mixed interest in sectors like consumer services and capital goods. While these sectors saw good FII activity, the investments were modest. The sectors saw FII investment in H1CY24. However, investor interest declined towards the end of 2024 and January 2025.  

Despite the Union Budget's focus on boosting discretionary spending, concerns over stretched valuations and a slowing trend in urban consumption led to profit-booking by foreign investors. A continued recovery in demand is needed for investors to return.

Healthcare and Realty sectors attract FIIs, backed by favourable government regulations

As a defensive sector, the healthcare sector attracted FII investments with inflows of Rs 23,984 since January 2024. The sector also witnessed FIIs investing Rs 20,823 crore from June to September 2024 after expectations of increased spending. India's healthcare sector continued to expand, with growing demand for hospital chains, specialized treatments, and innovative drug research. Government initiatives to improve healthcare services made the sector attractive to foreign investors.

The realty sector saw a surge in foreign institutional investments of Rs 5,375 crore, Rs 2,061 crore and Rs 4,778 crore in September, November, and December 2024. This suggests growing confidence in India's real estate market. Rapid urbanization and government initiatives aimed at infrastructure development have strengthened the realty sector's prospects. 

Overall, 2024 witnessed significant FII outflows, with financials and oil & gas sectors facing the largest withdrawals. So far, 2025 has seen a similar trend. However, the healthcare and real estate sectors have attracted foreign investments – investors are lifting some boats over others