Category: Business & Economy

Italy’s parliament has passed a new budget for 2025, focusing on two main goals: meeting European Union demands to lower government deficits and keeping Prime Minister Giorgia Meloni’s promise to reduce taxes for families.

The budget, which is about 30 billion euros (around $31 billion), will mostly help low- and middle-income families by cutting taxes and social security fees. Italy’s total debt is nearly 3 trillion euros, one of the highest in the European Union, so they are trying to balance their spending carefully.

Meloni’s government wants to drop the public deficit to 3.3 percent of GDP in 2025, down from an expected 3.8 percent this year. However, this budget comes at a time when the economy is growing slowly; forecasts show a mere 0.5 percent growth for the year.

Key budget changes include:

– The lower two income tax brackets will merge, meaning people making 28,000 euros a year will pay 23 percent tax instead of 25 percent.
– More people will qualify for social security tax reductions.
– Families who have a newborn baby and earn up to 40,000 euros a year will receive a 1,000-euro bonus to encourage more births.

While environmental groups say there isn’t much done to fight climate change, Italy is removing bonus funds for gas boilers as requested by the EU. Instead, families who buy energy-efficient home appliances can get bonuses of up to 100 euros, and 200 euros for households earning under 25,000 euros.

Additionally, companies that hire more workers and reinvest their profits will benefit from a lower corporate tax rate, which will drop from 24 percent to 20 percent. To help fund these changes, Italy’s banking sector will provide a total of 3.4 billion euros over 2025 and 2026, agreeing to delay tax credits for two years to give the government the money it needs now.

Equity markets, where stocks are bought and sold, go through ups and downs – they rise, reach a peak, fall, and then hit a low point. It can be hard to predict these changes. Many people think that when the economy grows, equity markets should do well, but that’s not always true.

In India, the long-term returns from equity markets have mostly matched the country’s economic growth. However, there have been times when this wasn’t the case. For example, from 1993 to 2002, India’s economy grew by 12%, but the equity market didn’t change much. In contrast, between 2016 and 2023, while the economy grew around 9%, the Nifty 50 – a major stock index in India – gave returns of 15%.

Globally, there is often a weak link between a country’s GDP growth and its equity market performance, and India is no exception. In fact, the correlation between India’s GDP growth and Nifty 500 returns is low, at -0.31 for the next year and just 0.05 for the same year.

So, how can you better navigate these market cycles? To understand this, we need to look at equity markets as made up of different sectors. Each sector, like technology or real estate, behaves differently than the overall market. For example, the IT sector was a top performer in 2020-21 but struggled in 2022. On the other hand, real estate did poorly in 2022 but became a top performer in 2023.

Sectors aren’t the same either; they contain different businesses with different situations. For instance, the financial services sector includes private banks, public sector banks, and insurance companies. In 2018-19, public sector banks faced serious losses while private banks thrived. Recently, from November 2022 to October 2023, public sector banks went up by over 45% while private banks only grew by 6%.

The performance can even vary among companies in the same industry. For example, even when most public sector banks did well in profits recently, some still struggled.

This means that understanding the cycle of both the industry and the specific business is essential for success in the stock market. When looking for investment opportunities, it’s smart to prefer industries that have recently performed poorly (since they might bounce back) and to look at their current valuations.

For instance, private banks might not have performed well recently but are currently fairly priced and have good prospects for the future.

In the words of experienced investor Howard Marks, “The study of cycles is really about how to position your portfolio for the possible outcomes that lie ahead.” While following these strategies can’t guarantee success, they provide a helpful way to think about market cycles and improve your chances of navigating them effectively.

Gold has been shining bright this year, giving about a 21% return so far! This means it has done much better than popular Indian stock indexes like Nifty 50, BSE Sensex, and Bank Nifty, and has even outpaced inflation.

With Donald Trump winning the US elections again, many are wondering how gold will react. In 2024, gold prices went up mainly because of global tensions, making it a safer investment choice for many.

Experts believe that Trump being back can lead to more trade conflicts, which might worry investors. They might turn to gold, thinking it’s a safer bet. Anuj Gupta, the Head of Commodity & Currency at HDFC Securities, mentioned that during Trump’s second term, stock markets might face difficulties due to these rising tensions—and usually, gold prices go up when that happens.

However, Gupta warned that the increase in gold prices might not be huge because the US dollar should stay strong. In 2025, Indian stock indexes like Nifty 50, BSE Sensex, and Bank Nifty will also face challenges from rising US Treasury yields, the strong US dollar, and other digital assets like Bitcoin.

So, what can we expect for gold prices in 2025? Gupta shares that, in the short term, gold might face some tough resistance at around ₹76,800 for every 10 grams. If it breaks through that price, it could rise further to reach ₹78,000!

Nimesh Chandan, who manages money for Bajaj Finserv AMC, recently shared his thoughts on investing. He believes that investors should be careful when choosing where to put their money, especially in big projects.

Chandan is very optimistic about the power infrastructure sector. He sees it as a global trend that has the potential for strong growth in the coming years. He is also optimistic about the pharmaceutical (pharma) sector, online businesses, and real estate.

Market Mood: Bullish or Bearish?

Chandan explained that the mood of the stock market can change very quickly. For example, from September to November, we saw a big shift in market behavior. Right now, he feels positive about large companies since they seem safer in terms of value compared to mid and small companies.

He pointed out that it’s essential for investors to think long-term. With global trends like renewable energy and artificial intelligence (AI) becoming more significant, finding the right investments could be rewarding down the line.

Expectations for 2025

Looking ahead to next year, Chandan believes that both the Sensex and Nifty indices could rise, even amid outside issues like global conflicts and slow earnings growth this year. Historically, the Nifty has delivered solid returns for multiple years, so there’s a chance of seeing growth again in 2025.

Chandan noted that many investors have made changes to their portfolios recently, anticipating an increase in government spending. He expects earnings to improve as the year continues.

Capex Themes and PSU Stocks

As the government may increase spending on big projects, Chandan sees a chance for public-sector companies (PSUs) and capex themes to shine again in 2025, but he advises being selective with investments.

Starting Fresh with Rs 10 Lakh

For those looking to start investing with Rs 10 lakh, Chandan recommends using a dynamic investment fund or a multi-asset fund. Large-cap funds, which focus on established companies, also present a good option because they balance risk and reward well.

Chandan’s Favorite Sectors

Chandan is particularly bullish on the pharma sector, believing it will continue to grow. The same goes for hospitals, diagnostics, and wellness trends. He also feels positive about online businesses, power infrastructure, and real estate.

Key Risks to Watch Out For

Chandan warns about potential risks that could disrupt the current market growth. He is concerned about rising prices in the mid and small-cap sectors, which have gained popularity in recent years. If the economy doesn’t grow as expected, it could be challenging for these smaller companies.

Additionally, changes in the value of the Indian Rupee (INR) due to global events could also affect the Indian stock market.

This week, the stock market ended almost the same as it started, with a slight positive vibe. The banking and pharmaceutical sectors did really well and helped balance out losses in the tech sector.

Only 13 small companies saw their stock prices jump by 10% or more this week, and three of them went up by over 20%. The biggest winner was Intellect Design Arena, which gained nearly 25%. Amber Enterprises followed with a 22% rise, while Greaves Cotton and Aarti Pharmalabs saw increases of 21% and 19%, respectively. About 10 other companies, like PTC Industries and Devyani International, also provided returns between 10% and 20%.

In the midcap category, Adani Wilmar was the only one to have a large gain, at 13%. Among the big companies in the Sensex group, Mahindra and Mahindra led with a 5% gain, followed by Adani Ports at 4% and Tata Motors at 3.7%.

Overall, the mid and small-cap indices stayed flat. Investors are worried about foreign investment outflows and the rupee losing value, as well as concerns about tariffs and fewer hopes for interest rate cuts in 2025.

What should you do now? Analysts believe that uncertainty around the economy and high stock prices may affect the market soon, especially in growing economies. Although foreign investment outflows are happening because of a stronger US dollar and rising US bond yields, the slowing rate of these outflows is a bit comforting. Looking forward, market reactions to earnings reports in the third quarter will be key, and investors may adjust their portfolios based on what they expect from the budget. Important upcoming data points, like PMI figures and US jobless claims, will also shape how investors feel, says Vinod Nair, Head of Research at Geojit Financial Services.

From a technical point of view, analysts say the Nifty index is showing a sideways movement with a slight upward trend. If it breaks above 24,000, we could see a quick rise to 24,500. Until that happens, it’s wise to “buy on dips,” according to Dhupesh Dhameja from SAMCO Securities.

Disclaimer: Recommendations or opinions in this article are solely those of the experts and do not represent the views of NiftyStat.

NEW DELHI: On Friday, shares of fertilizer companies had a mixed day on the stock market. Some companies made gains, while others lost value.

Top Gainers:
– Sikko Industries Ltd. saw a rise of 4.80%.
– The Fertilisers and Chemicals Travancore Ltd. was up by 1.61%.
– Paradeep Phosphates Ltd. gained 0.96%.
– Mangalore Chemicals & Fertilizers Ltd. increased by 0.63%.
– Nagarjuna Fertilizers and Chemicals Ltd. went up by 0.33%.
– Krishana Phoschem Ltd. saw a 0.20% rise.
– Coromandel International Ltd. edged up by 0.06%.

Top Losers:
– Aries Agro Ltd. dropped by 4.29%.
– Deepak Fertilisers & Petrochemicals Corporation Ltd. fell by 2.14%.
– Gujarat State Fertilizer & Chemicals Ltd. went down 1.25%.
– Southern Petrochemicals Industries Corporation Ltd. lost 1.22%.
– Zuari Agro Chemicals Ltd. slipped by 1.20%.
– Madhya Bharat Agro Products Ltd. dropped 1.18%.
– Rama Phosphates Ltd. decreased by 0.71%.
– Gujarat Narmada Valley Fertilizers & Chemicals Ltd. fell by 0.69%.
– Madras Fertilizers Ltd. went down 0.62%.
– National Fertilizers Ltd. dropped by 0.56%.

In the broader market, the NSE Nifty50 index closed down by 63.21 points at 23813.4, while the 30-share BSE Sensex rose by 226.59 points to close at 78699.07.

Nifty Gainers:
– Dr. Reddy’s Laboratories Ltd. was up 2.54%.
– Mahindra & Mahindra Ltd. gained 2.49%.
– IndusInd Bank Ltd. increased by 2.31%.
– Eicher Motors Ltd. went up by 1.58%.
– Bajaj Finance Ltd. rose by 1.35%.
– Wipro Ltd. increased by 1.33%.
– Tata Motors Ltd. also saw a rise of 1.31%.
– Bajaj Finserv Ltd. was up by 1.29%.
– Sun Pharmaceutical Industries Ltd. gained 1.09%.
– Cipla Ltd. closed up by 1.08%.

Nifty Losers:
– Hindalco Industries Ltd. fell by 1.81%.
– State Bank of India dropped 1.58%.
– Coal India Ltd. saw a decrease of 1.58%.
– Oil And Natural Gas Corporation Ltd. went down 1.4%.
– Bharat Electronics Ltd. fell by 1.07%.
– Adani Ports & Special Economic Zone Ltd. dropped 1.07%.
– Tata Steel Ltd. decreased by 1.04%.
– Shriram Finance Ltd. went down by 0.96%.
– Hero MotoCorp Ltd. dropped by 0.87%.
– HDFC Life Insurance Company Ltd. lost 0.72%.

NEW DELHI: The Nifty Realty index finished the day on a mixed note on Friday. Some companies saw their shares rise, with Mahindra Lifespace Developers up by 0.73%, Sobha Ltd. up by 0.54%, Brigade Enterprises rising by 0.05%, and Prestige Estates Projects up by 0.04%.

On the downside, Phoenix Mills fell by 1.95%, Godrej Properties dropped by 0.88%, Raymond Ltd. went down by 0.53%, DLF Ltd. decreased by 0.46%, and Macrotech Developers was down by 0.41%. The Nifty Realty index closed at 1071.35, which is a dip of 0.55%.

In the broader market, the NSE Nifty50 index gained 63.21 points to reach 23813.4, while the BSE Sensex went up by 226.59 points to settle at 78699.07. Among the 50 stocks in the Nifty index, 29 stocks finished in the green (gained) while 21 stocks finished in the red (lost).

Very active shares on the NSE included Vodafone Idea, Sagility India, Finolex Industries, YES Bank, and Ola Electric Mobility. Some stocks, like Greaves Cotton, Elgi Rubber Co, Caplin Point, Lords Chloro, and Sagility India, reached their highest prices in the last 52 weeks. Conversely, stocks like Aki India, Balaxi Pharma, B&B Triplewall Containers, K P Energy Ltd., and Palred Technologies reached their lowest prices in the last 52 weeks.

Osamu Suzuki, the longtime chairman of Suzuki Motor Corporation, died from lymphoma on December 25, 2024. He was 94 years old. For many years, he made Suzuki one of the biggest car companies in the world and helped it become the largest automaker in India.

Under his leadership, Suzuki teamed up with famous car companies like General Motors and Volkswagen to sell cars in North America and Europe. In 2019, he formed a partnership with Toyota. As he said in his book, “I’m a Small-Business Boss,” “If I were to listen to everybody, it would make things too slow. Never stop, or else you lose.”

Although he stepped down as president in 2015, he remained the chairman and CEO. He even took a big pay cut after the company had issues with how it reported fuel mileage for its cars, saying sorry and taking responsibility for what happened.

Osamu Suzuki had a unique start to his journey. Born as Osamu Matsuda on January 20, 1930, he was the fourth son of a farming family. He once wanted to be a politician and worked at a bank. Everything changed when he married Shoko Suzuki, whose grandfather started the Suzuki company in 1909.

After marrying, he took her last name, a common practice in Japan when there are no male heirs. He joined the family business in 1958, and from there, he helped build Suzuki into a global name. In the fiscal year 2023-24, Suzuki sold around 3.2 million vehicles worldwide, with over half of those sold in India. They are now just behind Toyota, the largest car company in the world.

One of his biggest successes was creating a joint venture with the Indian government, which led to the Maruti 800, a popular car in India. He found out about this chance when he saw a newspaper article about the Indian government looking for a car partner. In 1982, he met with government officials in a Tokyo hotel to discuss the project.

Today, Suzuki is also one of the top motorcycle makers, selling about 1.9 million bikes in the same fiscal year.

Rohit Sharma, the Indian cricket team captain, is having a tough time with his performance. Notable cricketer Sunil Gavaskar pointed out during a game that Rohit hasn’t been playing well lately. If he doesn’t score runs in his next match, some think he might need to step away from the game. After getting out quickly against Australia, many fans are wondering if it’s time for him to retire from Test cricket.

So far, Rohit has only scored 155 runs in eight Test matches, which is very low for a player with his experience. If India doesn’t perform well in the World Test Championship, Sydney might be his last Test match. There are rumors that Ajit Agarkar, the head of the selection committee, who is currently in Melbourne, may talk about Rohit’s future.

With younger players like KL Rahul and Yashasvi Jaiswal doing really well, should Rohit think about stepping back from the next Test? Gautam Gambhir did something similar when he felt he wasn’t playing well enough.

Rohit is still a strong player in One Day Internationals (ODIs), especially with the big Champions Trophy coming up soon. However, his recent Test performances have been disappointing. Although he struggled with batting in a new spot at first, he went back to opening the innings. Sadly, his confidence seems low, and he isn’t hitting the ball as well as he used to.

Even former Australian captain Ricky Ponting said that Rohit is making poor choices when selecting his shots. Rohit must focus on making better decisions while batting, especially against tough teams like Australia. With the future of the team at stake, it’s time for Rohit to think about his performance.

SRF Ltd. Shares Update: What You Need to Know!
In New Delhi, SRF Ltd.’s shares went up by 0.16% on Friday morning at 11:26 AM. About 492 shares were traded. The stock opened at Rs 2267.25 and reached a high of Rs 2277.40 and a low of Rs 2263.15 during the day. Right now, the highest price for SRF shares in the last year was Rs 2697.45, while the lowest was Rs 2088.55.

As for the company’s total market value, it stands at Rs 67,205.44 crore. In the last quarter, which ended on September 30, 2024, SRF made about Rs 3,457.63 crore in sales, which is just a little less than the Rs 3,489.38 crore from the previous quarter, but a good bit higher than last year’s Rs 3,206.48 crore. They earned a net profit of Rs 201.42 crore, which is 33.03% more than the same time last year.

Looking at the ownership, by September 30, 2024, domestic investors held a 9.8% stake in the company, while foreign investors owned 18.29%, and the promoters had 50.26%.

In terms of valuation, the stock is trading at a price-to-earnings ratio of 59.51 and a price-to-book ratio of 6.63. A high P/E ratio means people believe the company will grow more in the future, while the price-to-book value shows how much people are willing to pay for the company, even if it doesn’t grow.

SRF Ltd. operates in the Diverse Industry.