Season of Possibilities: Market Volatility Ends on a Mixed Note
The budget season is upon us! And we’re dishing out the scoop on the government’s financial blueprint-from potential boosts in infrastructure to green energy revolutions. Curious about strategic buying in emerging sectors and what the interim budget might hold? Oh, we’ve got you covered. But before we get into that, take a stroll through some market updates and highlights. 📈💡
📈 Weekly Update
The Indian stock market didn’t have the best week, taking a hit for the second time in a row. Blame it on HDFC Bank and Axis Bank shares, putting some downward pressure on things. The Nifty 50 said goodbye with a 0.47% dip at 21,352.60, and the Sensex wasn’t faring much better, wrapping up 0.51% lower at 70,700.67. Both Nifty 50 and Sensex 30 saw a 1% decline in this shortened trading week. Internationally, all eyes were on China’s potential rescue package, with its central bank making some moves in early February. Meanwhile, investors are eagerly awaiting the European Central Bank’s monetary policy decision and the US GDP data for Q4. Quite a week, isn’t it? 📉💼🌐
3QFY2024 results this week:
- 📈 Coforge reports 1.8% CC QoQ revenue growth, with Q3 revenue at ₹23,233 Mn, up 12% YoY.
- 🔄 Persistent System Ltd reports QoQ revenue growth of 3.6% and YoY growth of 15.2% at ₹24,982 Mn,
- 💰 ICICI Bank records a profit of ₹103 bn, up 23.6% YoY and 0.1% QoQ, with NII growing moderately by 13.4% YoY/2% QoQ to INR 187 bn.
- 🏦 IDFC First Bank reports a profit of ₹7.16 bn, up 18.4% YoY/down 4.7% QoQ, with NII increasing by 30.5% YoY and 8.5% QoQ to ₹42.8 bn
- 🏛️ Axis Bank demonstrates healthy asset quality in Q3FY24 with a 3.7% YoY and 3.5% QoQ profit growth at ₹60.7 bn, and NII for the quarter increasing by 9.4% YoY/1.8% QoQ to ₹125.32 bn.
- 💊 Cipla reports a 33% YoY increase in net profit to ₹1,049 cr, with revenue rising by 14.2% to ₹6,544 cr.
Upcoming results :
29th January: ABSLAMC, ADANIGREEN, BAJFINANCE, BEL, BPCL, CSBBANK, GAIL, GARFIBRES, GODFRYPHLP, ICIL, ITC, LATENTVIEW, MAHLOG, MARICO, NAM-INDIA, NTPC, NUVOCO, PEL, PETRONET, RBA, TATAINVEST, UTIAMC
30th January: LT, ATGL, KEC, KPITTECH, BAJAJFINSV, POLICYBZR, BAJAJHLDNG, ASTRAL, SHYAMMETL, BLUESTARCO, M&MFIN, STAR, TRIVENI, COCHINSHIP, VAIBHAVGBL, STARHEALTH, DRREDDY, JUBLINGREA, SIS, COROMANDEL, ZFCVINDIA, SRF, TEAMLEASE, VOLTAS, SYMPHONY
31st January: AMBUJACEM, BANKBARODA, AJANTPHARM, MAXHEALTH, GODREJCP, SUNPHARMA, WESTLIFE, MARUTI, PGHH, DCMSHRIRAM, JINDALSTEL, CARBORUNIV, GESHIP, IDFC, JUBLFOOD, RELAXO, IRB, DIXON, DABUR, LUXIND, KALYANKJIL, JYOTHYLAB, SHREECEM, KAJARIACER, POLYMED
1st February: HFCL, ABBOTINDIA, INDIACEM, ADANIPORTS, CASTROLIND, APTUS, GODREJAGRO, GMMPFAUDLR, SONATSOFTW, BATAINDIA, PRSMJOHNSN, MPHASIS, ABCAPITAL, AAVAS, ORIENTELEC, RITES, TITAN, CUB, SUMICHEM, TINDIA, VGUARD
2nd February: ALKYLAMINE, LICHSGFIN, CENTURYTEX, INDIGO, BANKINDIA, MHRIL, TATAMOTORS, TATAMTRDVR, SUDARSCHEM, TORNTPHARM, JUBLPHARMA, MEDPLUS
📰 Quick Bites
- 📈 The import duty on gold and silver has been increased from 10% to 15%.
- ⏰ The National Company Law Tribunal has postponed the hearing of Go First airline’s insolvency case to 29 Feb 2024.
- 📊 Think & Learn, the parent company of Byju’s, reported an operating revenue of ₹5,014 cr for the financial year 2022, with losses surging 80% year-on-year to ₹8,245 cr.
- 🛢️ Coal imports by India’s power plants for blending witnessed a 40.66% decline to 17.08 million tonnes (MT) during April-Dec, while coal-based power generation increased by 7.14%.
- 🚀 On 24th January, the government gave the go-ahead for a coal-to-Synthetic Natural Gas project in collaboration with Coal India and GAIL, as well as a coal-to-ammonium nitrate project through a venture between CIL and BHEL.
📰 Stocks In News
- 📉 Sony Group confirms termination of the merger agreement with its India unit, ZEE Entertainment Enterprises.
- ✈️ Aditya Pande assumes the role of Group CEO at IndiGo.
- 🔩 Tarun Khulbe gains approval as CEO and whole-time director at Jindal Stainless.
- 🏦 Tata Steel allots 8.65 cr shares to eligible shareholders of Tinplate Company following the merger.
- 🚗 Tata Motors plans to initiate electric vehicle production at its Sanand plant from April 2024, acquired from Ford India.
- 🏍️ Hero Moto partners with CG Motors to establish an assembling factory in Nepal; aims to introduce three new electric 2-wheelers by FY 2025.
- 📦 Mahindra Logistics invests ₹170 cr in a warehousing facility near Pune.
- 🏗️ L&T’s subsidiary ‘Heavy Engineering’ secures orders ranging between ₹1,000 cr to ₹2,500 cr in domestic and international markets.
- 💰 Paytm achieves 100 million monthly transacting users for the first time in Q3FY24.
- 🖥️ Dabur appoints Ashish Pandey as Global CIO.
- ⛽ ONGC establishes a new subsidiary for its gas business and clean energy projects.
- 🏨 Indian Hotels signs its third hotel in Ayodhya, UP.
🌱 Sustainability Corner
- 🌐 Piyush Goyal urges OEMs to boost exports, positioning India as an export hub.
- 🔋 Agratas collaborates with Tata Technologies to enhance global battery product development and integration.
- ⚡️ Amara Raja Energy plans inaugural giga factory with 16 GWh lithium-ion battery capacity by end of 2025.
- 🚀 Montra Electric aims for Rs 500 crore investment, targeting 15% market share in Indian market in 4-5 years.
- 🏍 Hero MotoCorp plans 13 new electric models; Vida range to include 10 scooters and motorcycles.
- 🔧 Lohum to recycle EV batteries for Tork Motors’ Kratos R electric motorcycle.
- 🏢 Altair opens Innovation Experience Centre in Pune, focusing on automotive digital twins and AI-driven technology.
- 🤖 Eatron Technologies and WMG develop solution to predict EV battery life accurately.
- 🔌 Ather Energy co-founder suggests incentives for electric two-wheelers in India not needed beyond a couple of years.
- ⚡️ TVS iQube electric scooter surpasses 250,000 units in 4 years, last 100,000 in 6 months.
- 🏆 Montra Electric’s Super Auto three-wheeler with 155km range wins Red Dot Design Award.
- 📜 Govt invites bids for 10 GWh ACC battery manufacturing under PLI scheme, bidding opens on April 23.
- 🚗 BorgWarner targets growing demand for EV components in India, showcasing latest portfolio at SIAT 2024.
- 🏍 Hero MotoCorp’s first electric bike likely to be premium, with 3 electric scooters planned for FY25.
- 🚗 KPIT and Microsoft develop AI-driven automotive repair solution, Azure OpenAI-powered Copilot maximizes returns in aftersales.
It’s Budget Time, Baby!
Hey there, budget enthusiasts! It’s that time of the year again when numbers and allocations take center stage – the budget season is upon us! Grab your coffee, get cozy, and let’s dive into what we can expect from the government’s financial blueprint in the coming months.
Investment Opportunities Galore!
Rumor has it that the government is gearing up to boost infrastructure, defense, and railways in its budget. Brace yourselves for a surge in budgetary provisions for these sectors – the investing world is buzzing with potential opportunities. Whether you’re a seasoned investor or a rookie, now might be the time to explore these areas before and after the budget is unveiled. The coming years are looking promising, especially in the realms of infrastructure, defense, railways, and the green energy revolution.
Strategic Buying in Emerging Sectors
While we’re all eager for the budget to drop, seasoned investors suggest adopting a strategic buying approach in emerging sectors. The buzz is that sectors like energy and education might witness some post-election announcements. Caution is the word during the budget period as market volatility might be on the horizon. If you’re playing the long game, consider waiting for the budget, then pounce on the opportunities that unfold.
What to Expect in an Interim Budget
As this is an interim budget, major bombshells may not be dropped. With elections around the corner, the government is likely to focus on actions that appeal to the masses. Think housing incentives, a boost for rural economies, and farmer-friendly policies. We might even see nods to the women of the nation, with skill training programs and other benefits in the pipeline.
Green Vibes and Fiscal Goals
The buzz continues with a green economy in sight. The government might steer towards renewable energy, biofuels, and electric transport. Expect strategies for overall food storage capabilities, initiatives for warehousing and cold storage, and support for domestic tourism. The fiscal targets for GDP growth in FY26 are optimistic, and we might witness a post-election unveiling of growth strategies.
Middle-Class Matters
Inflation’s impact on the middle class won’t be ignored. Brace yourselves for potential tax incentives and expanded limits. The government’s Vision 2047 program might roll out incentives for infrastructure development, especially in roads and railways.
What’s in the Pipeline?
While our crystal ball might not be perfect, we’re expecting a neutral budget with the possibility of tax relief and a surge in PF interest rates. Don’t hold your breath for major tax changes – it’s an interim budget after all. Keep an eye out for deductions and interest rate incentives, especially for housing loans, and get ready for a balanced budgetary approach.
In conclusion, budget enthusiasts, buckle up for an exciting ride. The Interim Budget 2024 is set to address economic challenges, foster growth, and, who knows, it might even bring a few surprises. Stay tuned, and let the budget games begin! 🚀💸
