Category: Business & Economy

Varun Beverages Ltd. saw its share price drop by 3.65%, bringing it down to Rs 628.45 during Monday trading at 01:38 PM (IST). The highest price for the day was Rs 645.85, while the lowest was Rs 627.10. In the last trading session, the stock was at Rs 652.30.

So far today, there have been many shares traded with a total turnover of Rs 12.78 crore on the BSE. The company’s price-to-earnings (P/E) ratio is 83.76, meaning investors believe the company will grow in the future, and they are willing to pay more for its current earnings. Also, the price-to-book (P/B) ratio of 23.16 shows how much investors think the company is worth, even if it doesn’t grow.

Varun Beverages Ltd. operates within the FMCG (Fast-Moving Consumer Goods) Food & Beverages industry. As of September 30, 2024, promoters owned 62.66% of the company. Foreign Institutional Investors (FIIs) had a share of 24.18%, and domestic investors owned 4.93%.

Looking at the company’s financial health, Varun Beverages reported consolidated sales of Rs 4828.93 crore for the quarter ending September 30, 2024. This is down by 33.31% compared to the previous quarter, which saw Rs 7240.89 crore. However, sales are up by 24.17% from the same time last year when they were Rs 3889.02 crore. The company earned Rs 619.61 crore this quarter, which is 23.66% more than last year’s quarterly earnings.

Food prices in India have been rising, but they actually peaked in November. Amnish Aggarwal from Prabhuda Lilladher explains that even though people hoped that buying would go up during the festivals or because of good rain, that didn’t happen. Demand for everyday items is still low since many people are struggling with higher food prices.

Aggarwal points out that while people are spending more on things like jewelry, basic food items are still hard for many to afford. For example, edible oil prices increased towards the end of September, leading to higher prices at stores. Due to the inconsistent price changes, it’s hard to expect a big increase in the quantity of goods sold.

In terms of quick-service restaurants (QSRs) like Domino’s, which reported a strong boost in sales recently, the competition is still fierce. Many fast-food chains have managed to keep prices reasonable and attract customers again.

When we look at items people do enjoy, like jewelry and luxury cars, those sales are showing a good increase. This indicates that wealthier people are still spending, while those who rely on everyday staples are facing struggles.

As for future demand, it may take time for increased wages and decreased inflation to positively impact consumers. Companies in the fast-moving consumer goods (FMCG) sector may get some relief when prices balance out, likely by the end of the fourth quarter of this financial year. So, it might take another quarter for things to improve.

Regarding ITC Hotels, their stock price fell to around ₹450-₹460, which many people see as a good opportunity to buy, especially if prices stabilize without major tax changes.

Shares of Bharat Forge Ltd. dipped by 2.23% to Rs 1267.60 by 12:12 PM (IST) on Monday. The stock started the day lower, making a gap down. According to Niftystat, 16,702 shares were traded, totaling about Rs 2.13 crore by that time.

The company’s price-to-earnings (P/E) ratio is 63.93, which indicates how much investors are willing to pay for each rupee of earnings. The price-to-book value ratio is 7.33, and the return on equity (ROE) stands at 13.28%, meaning the company effectively uses its resources to generate profit.

During the trading session, Bharat Forge reached a high of Rs 1300.95 and a low of Rs 1263.00. Over the past year, the stock has seen a highest price of Rs 1826.20 and a lowest of Rs 1063.40. The stock has a beta value of 1.4518, which shows that it is more volatile than the market.

Technical indicators show that the 200-day moving average (200-DMA) is at Rs 1456.25, while the 50-day moving average (50-DMA) is at Rs 1351.13. When a stock is trading above both moving averages, it usually means the price is expected to rise. Conversely, trading below both suggests it may fall. If it’s between the two averages, it could go either way.

The Relative Strength Index (RSI) stands at 35.46. This indicator helps determine if a stock is overbought (above 70) or oversold (below 30).

Regarding ownership, promoters held 45.25% of Bharat Forge as of September 30, 2024. Foreign institutional investors owned 18.72%, while domestic institutional investors held 26.28%.

On Friday, India’s main stock markets finished lower, marking the first drop of 2025 after two days of gains. The decline was mainly due to falls in big companies in finance and IT as investors became cautious before the upcoming earnings announcements next week.

The benchmark BSE Sensex dropped by 720.60 points, which is 0.90%, ending the day at 79,223.11. The Nifty 50 index also fell by 183.90 points or 0.76%, closing at 24,004.75.

Vinod Nair, the Head of Research at Geojit Financial Services, indicated that the market is in a “sell-on-rally” mode due to a strong U.S. dollar and high valuations, leading to a shift towards investing in various assets. He mentioned that reducing jobless claims in the U.S. and possible policy changes suggest that the Federal Reserve may not lower interest rates anytime soon. Looking forward, the market is expected to focus on the third-quarter earnings, hoping for an improvement compared to the previous quarter.

In the U.S., stock markets bounced back on Friday with positive news about Federal Reserve rate cuts and business-friendly policies. The Dow Jones picked up 339.86 points or 0.80%, while the S&P 500 climbed by 73.92 points or 1.26%. The Nasdaq also rose by 340.88 points or 1.77%.

European stocks, on the other hand, ended in the red, affected by losses in luxury goods and spirits companies. The STOXX 600 index dropped by 0.5% amid light trading after the New Year holidays.

From a technical perspective, the Nifty index couldn’t surpass the 50 EMA on daily charts, leading to a correction. However, Rupak De from LKP Securities noted that sentiment remains positive as the index stayed above 24,000. On the upside, if it passes 24,220, it could reach 24,500. Conversely, dropping below 24,000 could push it down to 23,700.

Most Active Stocks
In terms of trade value, the most active stocks included ITI Ltd, Avenue Supermart, HDFC Bank, Tata Motors, Reliance Industries, ITC, and ICICI Bank.

Most Traded by Volume
The highest traded stocks by volume were Vodafone Idea, YES Bank, ITI Ltd, Bank of Maharashtra, ONGC, Zomato, and Suzlon Energy.

Stocks With Buying Interest
Demand was high for stocks like ITI Ltd, Saregama India, Avenue Supermart, and PTC Industries.

52-Week Highs and Lows
199 stocks reached their 52-week highs, including ITI Ltd and Lloyds Metals. Meanwhile, 23 stocks hit their 52-week lows.

Stocks Facing Selling Pressure
Stocks like Zomato, Tanla Platforms, and Ajanta Pharma saw significant selling.

Market Sentiment
Overall, market sentiment was neutral. Of the 4,103 stocks on the BSE, 1,965 declined, while 2,032 advanced, and 106 remained the same.

NEW DELHI: On Friday, the Nifty Realty index saw mixed results. Some stocks did well while others struggled. Among the top gainers, Macrotech Developers rose by 1.95%, Brigade Enterprises climbed by 1.41%, Raymond increased by 0.5%, and Mahindra Lifespace Developers added 0.23%.

On the flip side, Godrej Properties fell by 2.77%, Phoenix Mills dropped by 1.77%, Oberoi Realty decreased by 1.19%, DLF went down by 0.88%, and Prestige Estates slipped by 0.38%.

The Nifty Realty index ended the day up by 0.62%, closing at 1045.10. The main NSE Nifty50 index dropped by 183.91 points, landing at 24004.75, while the BSE Sensex fell by 720.6 points to reach 79223.11. Among the 50 stocks in the Nifty, 21 saw price increases, while 29 experienced declines.

Some of the most actively traded stocks included Vodafone Idea, Vishal Mega Mart, YES Bank, ITI Ltd, and Bank of Maharashtra. Additionally, five stocks hit new 52-week highs: ITI Ltd, Avonmore Capital, Dev Information Tech, Deccan Cements, and Lloyds Metals. Meanwhile, Spacenet Enterprise, Jai Corp, Aki India, Astral Poly Tech, and Global Surfaces reached new 52-week lows.

The Securities and Exchange Board of India (SEBI) has stopped former stock broker Ketan Parekh from buying or selling stocks again. This is because he is accused of using secret information to make trades for a US-based fund, as reported by Bloomberg.

In the early 2000s, Parekh was involved in one of India’s biggest financial scandals. SEBI looked into his trades and the trades of those connected to him for two years, ending in June 2023. The investigation found that Parekh got confidential information about a big US fund’s trades from Rohit Salgaocar, who was based in Singapore. Salgaocar had an agreement to send trades of this fund to Motilal Oswal Financial Services Ltd. and NiftyStat.

After getting this information, Parekh shared it with his friends to make a profit before the actual trades happened. SEBI member Kamlesh Varshney explained this in the order released on January 2, 2025.

In 2003, SEBI had banned Parekh for 14 years because he was found guilty of insider trading, price manipulation, and unfairly using bank funds for stock trading. His actions caused a stock market crash in February and March 2001. SEBI has also ordered that about ₹65.80 crore in illegal profits made by those involved in this scam be returned.

Parekh and 21 others mentioned in the SEBI report have 21 days to respond to these allegations.

On Friday, fertilizer company stocks had a great day! Mangalore Chemicals & Fertilizers Ltd. jumped by 6.56%, while Paradeep Phosphates Ltd. increased by 5.62%. Other gains included Aries Agro Ltd. (up 4.37%), Rama Phosphates Ltd. (up 2.94%), and Agro Phos India Ltd. (up 1.63%).

However, not all companies did well. Sikko Industries Ltd. fell by 3.89%, and The Fertilisers and Chemicals Travancore Ltd. dropped by 3.23%. Some took a hit, like Gujarat Narmada Valley Fertilizers & Chemicals Ltd. (down 1.28%) and Deepak Fertilisers & Petrochemicals Corporation Ltd. (down 1.24%).

In the bigger market, the NSE Nifty50 index went down by 183.91 points to close at 24,004.75, while the BSE Sensex dropped 720.6 points to settle at 79,223.11.

In other sectors, Oil and Natural Gas Corporation Ltd. was one of the winners, rising by 5.21%. Tata Motors Ltd. also had a good day, increasing by 3.32%. Other gainers included Titan Company Ltd. (up 1.86%) and SBI Life Insurance Company Ltd. (up 1.79%).

On the downside, Wipro Ltd. saw a 3.08% decrease, and HDFC Bank Ltd. fell by 2.49%.

MUMBAI: On Friday, many stocks in Mumbai saw a big jump, with some rising by as much as 15%! This happened even though the main stock market indexes, BSE Sensex and NSE Nifty, were down. The stocks that did really well included Avonmore Capital (up 20.00%), ITI Ltd (up 19.99%), Astec Lifesc (up 19.99%), and Saregama India (up 15.31%).

The 30-share BSE Sensex ended lower, dropping 720.6 points to close at 79,223.11. Similarly, the 50-share NSE Nifty index fell by 183.91 points, ending at 24,004.75. In the Nifty50 index, 21 stocks went up, but 29 stocks went down.

Some stocks like Avonmore Capital, ITI Ltd, Tai Industries, P G Foils, and Dev Information Tech reached their highest prices in the last year. On the other hand, stocks such as Jai Corp, Shangar Decor, IGC Industries, Quadrant Tele, and Transgene Biotek hit their lowest prices in a year today.

A brokerage called Kotak Institutional Equities has given Bajaj Housing Finance shares a ‘sell’ rating because they believe the stock is too expensive. They set a target price of Rs 100, which suggests that the stock could fall by 21%.

According to Kotak, Bajaj Housing Finance is trading at a high price—4.7 times its book value and 39 times its expected earnings for 2026. The brokerage predicts that the company will grow its earnings by 25% each year from 2024 to 2027, mainly due to a 24% growth in its assets. They also expect the company’s profit margins to stay steady and plan to manage costs carefully.

Bajaj Housing Finance is the second-largest home loan company in India, with Rs 91,400 crore in assets this year. They focus on lending to salaried workers who have good jobs. The company has been growing rapidly, with an expected growth rate of 24% for the next few years. Their loan types include home loans (58%), loans against property (10%), and loans for developers (11%).

Bajaj Housing Finance has kept its asset quality strong, with bad loans at just 0.3% this year, which is much better than many of its competitors. They have good strategies to keep credit risks low, focusing on safe borrowers and using smart technology for lending.

Despite these strengths, Kotak warns that there are risks involved, such as changes in interest rates and tough competition in the market. As of 1:30 PM today, the Bajaj Housing Finance stock was unchanged at Rs 126.50.

Dharmesh Shah from ICICI Direct shares his thoughts on the stock market’s recent performance. He believes that while there will be ups and downs, now is a good time to buy stocks when their prices dip. The dollar index has changed, and despite recent highs, he expects it to stabilize around 85.75.

This year has started brightly, with the Nifty 50 index rising by about 500 points. A key level of 23,900 has been broken, and he predicts the Nifty could rise to 24,500 soon. But January is known for its unpredictable nature, especially with earnings reports coming up and the US presidential transition affecting global policies.

In the automotive sector, recent positive sales numbers have surprised everyone. Stocks like Tata Motors and Maruti are bouncing back due to being previously undervalued. Among the auto stocks, Mahindra & Mahindra looks strong, with a target price of 3,350. Two-wheeler stocks like Eicher Motors are also promising, expecting to reach around 5,650. Additionally, tire companies like Ceat Tyres and JK Tyres should benefit from lower crude oil prices.

On the international front, the dollar index has been fluctuating. After the US election, it climbed to 109, but there’s a chance it might struggle to get past 110-111. If this happens, it could be good for Indian metal stocks, which have already been factoring in some bad news. Stocks like Tata Steel and JSW Steel are considered good options in the metal sector.

Shah also emphasizes the potential in the defense sector, with Hindustan Aeronautics (HAL) being a top pick due to its strong fundamentals and technical support. He anticipates a target price of 4,685 for HAL, with a stop-loss at 3,920.

Looking ahead, the infrastructure sector seems bright, especially with expectations of increased government spending. JK Cement is identified as a promising stock, with an anticipated target of 5,320.