Editorial     

This (bearish) phase too shall pass!

The Indian stock market is currently in bad shape, passing through a distinctly bearish phase. During the last 50 days (from October 1 to November 20, 2024), the market capitalisation of all listed equities has fallen by over half a trillion US dollars, with investors losing Rs 48.5 lakh crore ($ 620 million) and the market cap sliding from Rs 478 lakh crore on September 27, 2024 to Rs 429.5 lakh crore on November 20, 2024.

Undeniably, the major driving force behind the massive slide in stock prices is the persistent and heavy selling by foreign investors. Due to several reasons, including overvaluation of Indian stocks, fears of political uncertainty in India, a strengthening dollar and rising US yields, foreign institutional and portfolio investors are diverting funds to China, where the government has planned stimulus packages to revive the weakened Chinese economy and where stock valuations are attractive compared to India. There are a few other reasons, like a depreciating rupee against the greenback, rising crude oil prices and a discouraging corporate performance during Q2FY25, that have aided the downward drift in Indian stock prices.

What is more, the end of the bearish phase does not seem to be in sight. As if the current disturbing situation is not enough, the environment has been vitiated further with an American court indicting the Adani group for bribing some Indian state governments to the tune of $ 250 million. Needless to say, it is a matter of national shame that an Indian industrialist is indicted by an American court on a charge of bribing Indian officials, even as the Indian government and the Securities and Exchange Board of India (SEBI) are seemingly unaware of the alleged wrongdoing.

In any case, these are bad days for the Indian stock market and investors. But the common investor should not get disheartened. After all, the stock market is characterised by both bearish and bullish phases. Price rises and falls are part and parcel of the stock market. In other words, this period too shall pass and after, say, 3 to 6 months the market will shed its nervousness and prices will chart an upward course once again.

Experts and analysts are confident of a consolidation phase in due course. In Q2FY25, the government was totally occupied with state elections. But during the second half of fiscal 2025, market sentiment is expected to improve on account of strategic development spending by the government and robust consumer demand.

Going ahead, investors will do well to keep a close watch on global developments and geopolitical tensions while focusing on building a well-diversified portfolio that can weather uncertainties and capitalise on emerging sectoral trends.

Admittedly, during the first half of fiscal 2025, Indian companies put up a discouraging performance, but many businesses are eyeing an upwards earnings trajectory during the second half. The government’s capital expenditure, which was lower in the first half, is expected to pick up post-state elections, underpinned by robust tax revenues. Along with this, the monsoon could bolster rural incomes and consequently drive consumer spending.

So, wise long-term investors should tighten their belt and get ready to restart investment decisions. Though FIIs and FPIs may offload their stocks for a few weeks more, on the plus side stock prices will shed extra ‘fat’. Remember, mutual funds are sitting on a humongous cash pile of Rs 1.85 lakh crore. PMS managers are also waiting to deploy their huge cash outlays.

Our prognosis: Let the current bearish phase weaken, and get ready to invest once again.

written by

Deven Malkan

Cover story     

Where Do Markets Go From Here ?

In the continuing mayhem on the Indian stock market, scrips across the India Inc board are facing a bearish embrace as sectoral indices of both BSE and NSE have continued their free fall since around a month before Vikram Samvat 2080 ended and the new Hindu religious year, Vikram Samvat 2081, began.

Captains Speak         

Speeding up carbon black capacities: Eyes global sales hike in carbon black

Realising that the carbon black market is getting stronger and its future prospects are highly promising, PCBL has embarked on an aggressive capacity expansion programme which will take the carbon black capacity of the company to one million tonnes per annum (mtpa) by fiscal 2027-28.

Mixed portfolio blunts headwinds 5 new clients in $ 100 mn bucke

The demand outlook at TCS continues to be cautious in the last few quarters. Little wonder that during Q2FY25, the same trend persisted and the company saw a significant decline of 23 per cent with the order book amounting to $ 8.6 billion.

Tailwinds expected from steel demand

Though the current performance of APL Apollo Tubes is far from satisfactory, the prospects for the company going ahead are highly encouraging.

Fortune Scrip     

Market Newbie With Huge Potential

This fortnight, we have picked Orient Technologies Solutions as the Fortune Scrip. The company entered the capital market just four months ago – August 21, 2024, to be exact. Its IPO shares were offered at a price of Rs 206, opened at a 47 per cent premium at Rs 302, and are currently quoted around Rs 456.

Portfolio Choice         

Widening its kitchenware basket

Incorporated in 1959, Hawkins Cookers is one of the leading players in the pressure cooker and cookware segment, with a strong brand equity in the domestic market. It also exports its products to various countries globally.

Straddling a host of segments: From textiles to e-com & realty

Arvind Limited is an integrated textile company which operates in three segments — textiles, advanced materials, and ‘others’. The textiles segment includes fabrics, garments and fabric retail. The advanced materials segment consists of human protection fabrics and garments.

Back in the black in fiscal 2024: Scrip trades at attractive valuation

South Indian Bank is a leading Keralabased private sector bank with a nationwide presence. It has 955 branches, 2 ultra small branches, 3 satellite branches, 1,158 ATMs and 127 CRMs across India, and a representative office in Dubai, the UAE.

Corporate Development         

Announces Kareena Kapoor Khan as brand ambassador for smart TVs

Cellecor Gadgets Limited, (NSE: CELLECOR),one of India’s fastest-growing consumer electronics brands, is thrilled to announce Bollywood superstar Kareena Kapoor Khan as the brand ambassador for its Smart TV.

Rs. 48.95 crore rights issue to finance expansion plans

Ahmedabad-based Mercury Trade Links (BSE:512415), engaged in trading agricultural and allied products has entered the capital market with a rights issue of Rs. 48.95 crore on November 7 is receiving good response.

BFL buys axle maker for Rs 545 cr

Bharat Forge Limited (BFL), has entered into a definitive agreement to acquire AAM India Manufacturing Corporation Private Limited (‘AAMIMCPL’), a subsidiary of American Axle & Manufacturing Holdings Inc.

LNG pact to buffer domestic demand

GAIL, a ‘Maharatna’ Central PSE, recently signed a 10- year sales and purchase agreement (SPA) with ADNOC Gas for the delivery of up to 0.52 million metric tons per annum (mmtpa) of liquified natural gas (LNG).

Acquisition to power refrigeration

Pune-based Kirloskar Pneumatic Company (KPCL) recently entered into a share purchase agreement to acquire a 55.26% stake, for around Rs 15.50 crore, in Systems & Components India Pvt Ltd.

Raises Rs. 60 crore through allotment of NCDs

Standard Capital Markets Ltd. (BSE: 511700), a leading non-banking financial company (NBFC), has announced that the board has approved the allotment of 6000 unrated, unlisted, secured NCDs.

Launches innovative solar solutions, strengthening commitment to renewable energy

Servotech Power Systems Ltd, (NSE: SERVOTECH), a leading manufacturer of renewable energy solutions, launches its new series of innovative.

Board approves preferential equity share and warrant allotment

Mercury EV Tech Ltd. (BSE: 531357), a leading player in EV Industry engaged in the business of manufacturing wide range of electric vehicles has announced that its board, Pursuant to receipt of approval of the shareholders of the Company.

Board approves allotment of equity shares against conversion of warrants

PC Jeweller Ltd. (BSE: 534809, NSE: PCJEWELLER), one of the leading and fastest-growing jewellery retail chains in India, has allotted 3,38,85,000 equity shares of FV of Rs. 10 each, on conversion of 3,38,85,000.

Powering India’s hi-speed rail network

BEML Limited, a leading central PSE under the Ministry of Defence, has been awarded a contract for the design, manufacture and commissioning of two high-speed trainsets, each comprising 8 cars, by Integral Coach Factory (ICF).

Corporate Performance         

Impressive Earnings show for H1FY25, PAT shoots up 64% YoY

Nandan Denim Ltd. (BSE: 532641, NSE: NDL), a leader in the denim industry, has announced its earnings for the quarter and half year ended 30 September 2024.

Stellar earnings for Q2FY25, PAT jumps to Rs. 6.94 cr

Rathi Steel and Power Ltd. (BSE: 504903), a leader in stainless steel products like Wire Rods, Billets, Flats, has announced its earnings for the quarter and half year ended 30 September 2024.

Robust earnings show for Q2FY25: PAT shoots up 172.54% YoY Board approves 2:5 bonus issue

Hardwyn India Ltd.’s (BSE: 541276, NSE: HARDWYN), a leader in architectural hardware and glass fittings, in its board meeting held on November 14, 2024, has announced robust earnings for the quarter and half year ended 30 September 2024.

Gratifying show for Q2FY25, EBITDA grows 37.56% QoQ

MIC Electronics Limited (BSE: 532850, NSE: MICEL), a global leader in the design, development, and manufacturing of LED video displays, has announced earnings for the quarter and half year endd 30 September 2024.

Half-time performance cheers: Revenues shoot up 883.51% yoy

Srestha Finvest Ltd. (BSE: 539217), a leader in financial solutions, has announced its earnings for the quarter and half year ended 30 September 2024. For the quarter ended 30 September 2024, revenue from operations grew by 70.31% from Rs. 210.21 lakhs in Q2FY24 to Rs. 357.98 lakhs in Q2FY25.

Stellar earnings show for Q2FY25, PAT spurts 101% YoY

Motisons Jewellers Ltd. (BSE: 544053, NSE: MOTISONS), a leading player in the jewelry industry, in its board meeting held on 28 October 2024, has approved its un-audited financial results for the quarter and half year ended 30 September 2024.

Improving performance: Half-time revenues cross Rs. 3000-mn-mark

Zee Media Corporation Ltd. (BSE: 532794, NSE: ZEEMEDIA), one of the leading and largest news networks of India, approved and took on record the financial results of ZMCL for the quarter and half year ended September 30, 2024.

Stellar earnings show for Q2FY25, PAT Jumps 76% YoY

Pavna Industries Limited (BSE: 543915, NSE: PAVNAIND), a leading player engaged in the business of manufacturing wide range of reliable and high-quality automotive parts for reputed OEMs, in its board meeting held on 28 October 2024, has approved its un-audited financial results for the quarter and half year ended 30 September 2024.

November 30, 2024 - Second Issue

Industry Review

VOL XVI - 06
November 16-30, 2024

Formerly Fortune India Managing Editor Deven Malkan Assistant Editor A.K. Batha President Bhupendra Shah Circulation Executive Warren Sequeira Art Director Prakash S. Acharekar Graphic Designer Madhukar Thakur Investment Analysis CI Research Bureau Anvicon Research DD Research Bureau Manager (Special Projects) Bhagwan Bhosale Editorial Associates New Delhi Ranjana Arora Bureau Chief Kolkata Anirbahn Chawdhory Gujarat Pranav Brahmbhatt Bureau Cheif Mobile: 098251-49108 Bangalore Jaya Padmanabhan Bureau Chief Chennai S Gururajan Bureau Chief (Tamil Nadu) Ludhiana Ajitkumar Vijh Bhubaneshwar Braja Bandhu Behera

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