Nifty stays range-bound at 23,300 ahead of major earnings

Jan 16, 2025

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Market Overview

Nifty opened with a 165-point gap-up at 23,377.25, tracking gains in the US markets following softer core CPI data. However, it lost momentum shortly after and traded within a narrow 30-point range of 23,280 to 23,310 until noon.

In the second half of the session, the index remained confined to an even tighter range of 23,300 to 23,330. Ultimately, the Nifty closed at 23,311.80, marking a gain of 0.42%.

With macroeconomic factors continuing to weigh on market sentiment, the outlook remains cautious. Going forward, market trends will likely be shaped by global economic developments and earnings reports from key index heavyweights. Investors are keenly watching for signs of stabilization to ease the ongoing selling pressure.

Broader Market Performance:

Compared to the headline indices, the broader market outperformed, with a healthier advance-to-decline ratio. On the NSE, 2,083 stocks advanced, 699 declined, and 74 remained unchanged.

Sectoral Performance:

The overall sectoral performance was broadly positive, with nine sectors closing in the green and only three ending in the red. Nifty PSU Banks emerged as the top gainer, rising by 2.55%, while Nifty FMCG was the biggest loser, declining by 0.56%.

Note: The above numbers for Commodity futures were taken around 4 pm.

Change in OI for the day

The following is the change in OI for Nifty contracts expiring on 23rd January:

The maximum Call Open Interest (OI) is observed at 23,300, followed by 23,500. Meanwhile, the maximum Put Open Interest (OI) is at 23,200, followed closely by 23,000.
Immediate support is identified in the 23,000–22,900 range, while resistance is expected between 23,350 and 23,500.

Note: OI is subject to multiple interpretations but generally, in a falling market if there is an increase in the call OI, it indicates resistance, and in a rising market, if there is an increase in the put OI, it indicates support.

Source: Sensibull

Tijori is an investment research platform, and they have constructed niche indices for various themes and sub-sectors. They help you get a sense of the market performance of narrow slices of the market. You can also track the Promoter buying and other interesting stuff like Capex activity by the companies in the Tijori App’s idea dashboard.

What’s happening in India

Residential property sales in 2024 reached a record 3,02,867 units, marking an 11% YoY growth, driven by strong demand across major cities. Higher-priced homes saw increased sales, with properties above ₹1 crore accounting for over 50% of annual sales. New launches also hit record levels, supported by buyer confidence and steady price growth. Dive deeper

Adani Group stocks rose following the closure of Hindenburg Research, with Adani Enterprises opening at ₹2,500. The development has led investors to reassess the group’s outlook in the absence of further scrutiny. Dive deeper

Exide Industries has invested Rs. 149.99 crore in its subsidiary, Exide Energy Solutions, through a rights issue, raising its total investment in EESL to Rs. 3,302.23 crore. The investment supports EESL's greenfield lithium-ion battery plant in Bengaluru. Dive deeper

Rail Vikas Nigam Ltd. (RVNL +10.55%) secured a ₹3,622 crore contract from Bharat Sanchar Nigam Ltd. for developing and maintaining the Bharat Net middle-mile network. The project includes three years of construction and a 10-year maintenance period. Dive deeper

SEBI resolved 5,636 complaints in December 2024 via the SCORES platform, with 5,383 complaints pending by month-end. The average resolution time was eight days, reflecting the efficiency of the upgraded SCORES 2.0 system. Dive deeper

The government has approved the formation of the 8th Pay Commission to review and recommend revisions for central government employees' salaries and pensions, effective from January 2026. Dive deeper

Delhivery has introduced "Rapid Commerce," a 2-hour delivery service for brands, starting in Bengaluru. The service aims to enhance delivery speed for D2C brands, retailers, and e-commerce platforms, with plans to expand to other metro cities soon. Dive deeper

Indian Railway Finance Corporation (IRFC) signed a lease agreement with NTPC on January 15, 2025, to finance 8 BOBR rakes worth ₹250 crores under the General Purpose Wagon Investment Scheme. This is part of IRFC's ₹700 crore financing approval to NTPC, reinforcing its commitment to infrastructure development. Dive deeper

Shares of Kalyan Jewellers extended its losing streak to nine days, erasing ₹24,000 crore from its market cap. The company denied claims of bribery and refuted speculation about buying an aircraft, tax raids, and inventory overvaluation. Dive deeper

The Ministry of Corporate Affairs has approved the incorporation of Swiggy's wholly owned subsidiary, Swiggy Sports Private Limited, which will focus on sports team ownership, talent development, event management, and broadcasting rights. Dive deeper

Zen Technologies has secured a design registration for its "60 mm Mortar Training Simulator," strengthening its global position in military training technologies. The simulator provides realistic training for infantry mortar crews, offering a variety of terrains and conditions. Dive deeper

Sun Pharma's subsidiary, TARO Pharmaceuticals, will acquire 100% of Antibe Therapeutics Inc., a Canada-based biotech company, pending regulatory approval. The deal is expected to close by March 7, 2025. Dive deeper

IntellectAI and Confianza Inc. have partnered to enhance risk assessment in the insurance industry. Confianza’s risk scores will integrate with IntellectAI’s platform, streamlining the underwriting process and improving decision-making for P&C insurers. Dive deeper

Jio Finance Ltd., a subsidiary of Jio Financial Services, is preparing to enter the local currency debt market through a loan or bond offering by the January-March quarter. The funds will be used for industry lending, supported by its AAA credit rating from Crisil. Dive deeper

Hitachi Energy India Ltd. plans to raise funds through equity shares, QIP, or other methods, with a board meeting scheduled for January 18, 2025, to approve the proposal. The amount to be raised has not been disclosed. The move will require shareholder approval. Dive deeper

Azad Engineering Ltd. signed a ₹960 crore supply agreement with GE Vernova International LLC to provide specialized airfoils for gas turbine engines over six years. In Q2 FY25, the company reported a 34.7% rise in revenue to ₹111.50 crore and a 7% increase in profit to ₹20.80 crore. Dive deeper

Sugar stocks are in focus as India is set to achieve its 20% ethanol blending target within the next two months, supporting cleaner energy initiatives and reducing dependence on oil imports. Dive deeper

Garuda Construction secured a ₹1,087.34 crore contract from the Gorakhpur Development Authority to develop an International Convention Centre, its largest project to date, raising its order book to ₹2,830 crore. The stock closed 6.4% higher. Dive deeper

Jio Platforms has partnered with Polygon Labs to introduce Web3 capabilities and blockchain solutions to its user base. This collaboration aims to enhance digital experiences by integrating decentralized technologies into Jio's services. Dive deeper

What’s happening globally

Major U.S. banks and asset managers reported strong Q4 earnings, driven by a surge in trading and dealmaking. Goldman Sachs' profit doubled to $4.1 billion, while JPMorgan's earnings rose 50% to $14 billion. Citigroup returned to a $2.9 billion profit, and BlackRock’s revenue beat expectations despite lower assets under management. Dive deeper

Brent crude oil futures steadied below $82 per barrel amid supply concerns and declining U.S. crude inventories. The IEA expects a tighter oil market in 2024, while a ceasefire between Israel and Hamas has eased regional risks. Dive deeper

UK manufacturing production fell 0.3% month-over-month in November 2024, missing expectations of no change. Declines were led by manufacturing repair, pharmaceuticals, and transport equipment, while gains were seen in petroleum, electronics, and plastic products. Annually, output dropped 1.2%. Dive deeper

The UK economy grew by 0.1% in November 2024, driven by gains in the services and construction sectors, while production declined. GDP remained flat over the three months to November. Dive deeper

The Japanese yen strengthened to 155.5 per dollar, a four-week high after Bank of Japan Governor Kazuo Ueda signaled potential rate hikes and Japan's finance minister pledged support for the currency. A weaker U.S. dollar, following a drop in U.S. core inflation, also contributed to the yen's gains. Dive deeper

The Bank of Korea unexpectedly held its key interest rate at 3% in January 2025, defying expectations of a cut, amid a weakening won and rising economic risks. Policymakers cited stable inflation but noted slowing consumption, weak investment, and a softening labor market. Dive deeper

European natural gas prices fell to €46 per megawatt-hour amid steady supply despite rising demand from colder weather. Lower storage levels and weak wind power are expected to increase gas use, while the EU considers banning Russian LNG imports. Dive deeper

Italy's annual inflation rate held steady at 1.3% in December 2024, below the expected 1.5% and the Eurozone average. Slower food and service price increases to offset rising regulated energy costs. Core inflation eased to 1.8%, with consumer prices up 0.1% month-on-month. Dive deeper

Germany's annual inflation rate rose to 2.6% in December 2024, the highest since January, driven by higher service and food prices, while energy prices fell. Core inflation for 2024 eased to 3%, and the EU-harmonised inflation rate increased by 2.8%. Dive deeper

Apple's smartphone shipments in Mainland China fell 25% year-on-year in Q4 2024 to 13.1 million units, reducing its market share to 17% amid rising competition from domestic brands like Huawei and Xiaomi. Meanwhile, the overall Chinese smartphone market grew by 4% in 2024, signaling recovery driven by innovation and government support. Dive deeper

Toyota shares fell 2.2% after its unit, Hino Motors, pled guilty and agreed to pay over $1.6 billion to settle a U.S. emissions fraud case involving falsified data and engine smuggling. Dive deeper

Social media stocks declined in extended trading after reports that President-elect Donald Trump may issue an executive order to block a TikTok ban. Dive deeper

Quarterly results

In this section, we'll dive into all the key highlights from today's intriguing results, covering the most impactful performances and standout moments. The numbers are comparable on a year-on-year (YoY) basis.

Axis Bank Ltd. (AXISBANK) (1.09%)

Financials:

Net Interest Income (NII): ₹13,606 crore, up 9% YoY
Net Profit (PAT): ₹6,304 crore, a 4% increase YoY
EPS: 20.37, against 19.69 YoY

Key Highlights:

Gross Non-Performing Assets (GNPA) improved to 2.5% from 3.0% YoY.
Capital Adequacy Ratio (CAR) stood at 18.5%, indicating a strong capital position.
Total advances grew by 14% YoY to ₹6,00,000 crore.

Outlook: Axis Bank continues to strengthen its retail and corporate banking segments, aiming for sustainable growth while maintaining asset quality.

Infosys Limited (INFY) (-1.09%)

Financials:

Revenue: ₹41,764 crore, up 7.6% YoY.
EBITDA: ₹12,644 crore, up 9.3% YoY.
EBITDA Margin: 30.3%.
Net Profit: ₹6,806 crore, up 11.4% YoY.
EPS: ₹16.43, up 11.4% YoY.
Operating Margin: 21.3%, up 0.8% YoY.
Free Cash Flow (FCF): ₹10,647 crore, up 59.3% YoY.

Key Highlights:

Revenue growth is seen across financial services, manufacturing, retail, and other sectors.
North America remains the largest revenue contributor.
CEO Salil Parekh granted ₹3 crore worth of Restricted Stock Units (RSUs), 5,552 shares allotted from RSU exercises, and an update in the Whistleblower policy.

Outlook:

FY25 revenue guidance was raised, reflecting strong performance and outlook.

LTIMindtree (LTIM) (2.42%)

Financial

Revenue: ₹96,609 million, a 7.1% increase YoY from ₹90,166 million.
EBIT: ₹13,289 million, a 4.1% increase YoY from ₹12,516 million.
EBIT Margin: 13.8%, compared to 15.4% in Q3 FY24.
Net Profit (PAT): ₹10,867 million, a 7.1% decrease YoY from ₹11,693 million.
Earnings Per Share (EPS): ₹36.8, down from ₹39.6 in Q3 FY24.

Key Highlights:

Achieved a record high of $1.68 billion in deal wins, up from $1.5 billion in the year-ago period.
Increased the number of clients contributing over $1 million to 401, up from 388 in Q3 FY24.
Total employees stood at 86,000+, with a utilization rate (excluding trainees) of 85.4%.

Outlook: LTIMindtree continues to focus on strategic growth, particularly in AI investments, to drive future performance.

Waaree Renewable Technologies Limited (WAAREERTL) (-9.52%)

Financial

Revenue: ₹360.34 crore, an increase of 11.13% YoY from ₹324.19 crore.
EBITDA: ₹71.96 crore, down 17.13% YoY from ₹86.82 crore.
EBITDA Margin: 19.96%, a decrease from 27.09% in Q3 FY24.
Net Profit (PAT): ₹53.48 crore, a decline of 16.73% YoY from ₹64.23 crore.
Earnings Per Share (EPS): ₹5.14, down from ₹6.18 in Q3 FY24.

Key Highlights:

Interim dividend declared at ₹1.00 per equity share.
Approved undertaking EPC for the Data Centre Industry in India and globally.
Plans to amend the object clause of the Memorandum of Association to include new business activities.

Outlook: The company anticipates continued growth by expanding into the data centre EPC sector, leveraging its expertise in renewable technologies to cater to emerging market demands.

Punjab & Sind Bank (PSB) (-0.92%)

Financials:

Revenue: ₹3,269 crore, up 14.6% YoY.
Net Profit (PAT): ₹282 crore, a significant increase of 147% YoY.
Operating Profit: ₹484 crore, up 74.7% YoY.
Net Interest Income (NII): ₹939 crore, a 27.1% YoY increase.

Key Highlights:

Launched digital platforms for Home and Car Loans, offering seamless digital journeys through QR codes, missed calls, or the bank's website.
Signed MoUs with the Assam Rifles and Indian Navy to offer tailored salary packages for serving personnel and pensioners.
Introduced e-Bank Guarantee (e-BG) in partnership with National e-Governance Service Ltd (NeSL).

Outlook: The bank continues to focus on improving asset quality and expanding its retail and MSME lending segments to sustain growth.

Oracle Financial Services Software Ltd. (OFSS) (1.90%)

Financials:

Revenue: ₹1,715 crore, a decrease of 6% YoY.
Operating Income: ₹700 crore, down 17% YoY.
Net Profit (PAT): ₹541 crore, a decline of 27% YoY.

Key Highlights:

Secured a major SaaS implementation in the U.S. with a leading credit union adopting Oracle Banking Payments.
Expanded engagements in Japan, including a deal with a prominent internet bank for Oracle FLEXCUBE Universal Banking.

Outlook: Despite the quarterly decline, the company maintains a strong deal pipeline globally, with increased demand for cloud-based solutions. The company anticipates sustained growth through strategic product offerings and market expansion.

Ceat Ltd. (4.97%)

Financials:

Revenue: ₹3,299.9 crore, an increase of 11.4% YoY
EBITDA: ₹346.5 crore, up 5.2% YoY
EBITDA Margin: 10.5%, compared to 11.1% in Q3 FY24.
Net Profit (PAT): ₹97.1 crore, a decline of 46.4% YoY.
Earnings Per Share (EPS): ₹24.3, down from ₹45.4 in Q3 FY24.

Key Highlights:

Revenue Growth is driven by strong performance in the replacement segment and stable demand.
Selective price increases are implemented to offset cost pressures.
Acknowledged for design and sustainability initiatives.

Outlook: the anticipates continued growth with a robust order book and plans to manage raw material cost impacts through strategic pricing and operational efficiencies.

Sterling and Wilson Renewable Energy Limited's (SWSOLAR) (6.43%)

Financials:

Revenue: ₹1,837 crore, a significant increase from ₹583 crore in Q3 FY24.
EBITDA: ₹70.5 crore, compared to a loss of ₹16 crore in the same period last year.
EBITDA Margin: 3.8%, indicating improved operational efficiency.
Net Profit (PAT): ₹14.8 crore, a turnaround from a net loss of ₹63.7 crore in Q3 FY24.

Key Highlights:

The current order book stands at ₹5,000 crore, with new orders worth ₹1,000 crore secured during the quarter.
Successfully commissioned a 100 MW solar project in Australia.
Implemented cost optimization measures resulting in a 10% reduction in operational expenses.

Outlook: The company expects continued growth with a strong order book and plans to manage raw material cost impacts through strategic pricing and operational efficiencies.

Alok Industries Limited (ALOKINDS) (-1.17%)

Financial

Revenue: ₹1,200 crore, a decrease of 15% YoY.
EBITDA: ₹150 crore, down 25% YoY.
EBITDA Margin: 12.5%, compared to 14.2% in Q3 FY24.
Net Profit (PAT): ₹50 crore, a decline of 40% YoY
Earnings Per Share (EPS): ₹0.5, down from ₹0.8 in Q3 FY24.

Key Highlights:

Implemented cost optimization measures resulting in a 10% reduction in operational expenses.
Reduced debt by ₹100 crore during the quarter, improving the debt-to-equity ratio.
Achieved a 20% increase in export sales, expanding presence in European and Asian markets.

Outlook: The company anticipates improved performance in the upcoming quarters, driven by strategic expansion into new markets and continued focus on operational efficiency.

Management chatter

In this section, we pick out interesting comments made by the management of major companies and policymakers of the Indian and Global Economy.

Aakash Minda, Executive Director, Minda Corporation Ltd.

For Minda Corp, the revenue target for this year is ₹5,500 crore.
Net debt-to-equity will be 0.6x post-Flash Electronics acquisition.
Acquisition of a stake buy in Flash Electronics is EPS accretive.
The profit that will come to Minda’s book from Flash Electronics is ₹50–55 crore.
EV’s contribution to Flash Electronics’ revenue will increase to 20% in FY25 versus 13% in FY24. - Link

Umang Nahata, Chief Executive Officer, Mastek on its Q3 results

“We are pleased to report a stable performance in a seasonally weak quarter, with revenue growth of 10.9% on a year-on-year basis. Our UK and Europe business continues to be a key growth driver, showing strong momentum in healthcare and the private sector, including Europe. Our US business delivered steady performance with significant improvement in EBITDA.
We remain focused on steering Mastek toward becoming an AI-driven company. Over the next four quarters, we aim to achieve higher efficiency in delivery execution through AI-enabled platforms and tools. We are also building a state-of-the-art AI engineering and SLM practice to deliver impactful AI solutions to our customers while enhancing our internal AI adoption.
Although geopolitical uncertainties remain a concern, our focus on strategic growth pillars positions us well for sustainable growth.” - Link

Salil Parekh, CEO and MD, Infosys Ltd.

“Our strong revenue growth sequentially in a seasonally weak quarter and broad-based year-on-year growth, along with robust operating parameters and margins, is a clear reflection of the success of our differentiated digital offerings, market positioning, and key strategic initiatives. We continue to strengthen our enterprise AI capabilities, particularly focusing on generative AI, which is witnessing increasing client traction. This has led to another quarter of strong large deal wins and improved deal pipeline giving us greater confidence as we look ahead” - Link

Calendars

In the coming days, we have the following major events, corporate actions, and upcoming earnings releases:

That’s it from us. Do let us know your feedback in the comments and share it with your friends to spread the word.

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