Indian equity markets closed lower past week, with the NIFTY down by 573 points or 2.39% and the Sensex down by 2.33%. But the real damage was done to mid-, small- and micro-cap stocks. Indices representing all these segments fell by 6% during the week -- one of the largest declines in two years. Market sentiment was dampened by multiple factors, including a realisation that economic growth is slowing down and leaving high valuations at the risk of de-rating. In response to the rise in respiratory illness cases, especially those associated with human metapneumovirus (HMPV), state governments have stepped up monitoring. The recent outbreaks of HMPV in China have heightened concerns about a possible health crisis. In India, at least eight cases of HMPV have been confirmed.
Foreign institutional investors (FIIs) maintained their selling streak, offloading Rs7,170.87 crore on 9 January 2025, with total withdrawals reaching Rs18,885 crore in the first six trading sessions of January. President-elect Donald Trump is set to take office on 20 January 2025. Recent reports indicate that his team is considering universal tariff proposals focused on essential imports, departing from his broader campaign rhetoric.
The national statistical office's (NSO’s) first advance estimate (FAE) for FY24-25 projects India's real gross domestic product (GDP) growth at 6.4%, significantly slower than the 8.2% for the past fiscal. According to CRISIL Ratings, fiscal consolidation, elevated interest rates and prolonged high food inflation weighed down the economy this year. In a report, the rating agency says, "Weak investments amid reduced government capital expenditure (capex) and subdued private investments are the primary reason for the deceleration. However, private consumption is expected to rise significantly after last fiscal's weak show." We have covered it in detail
here.
The trends of the major indices in the course of the week's trading are given in the table below:
News
Indian Overseas Bank planned to sell its non-performing assets (NPAs) of Rs11,500 crore to asset reconstruction companies (ARCs) through an e-auction under the open auction method on a portfolio basis. IDFC First Bank completed its integration with income-tax portal to collect direct tax on behalf of central board of direct taxes (CBDT), government of India.
SRF and Navin Fluorine International surged on Friday after reports of US gas distributor, IGas (USA) said that the supply of R32 and R125 has been impacted and prices will be increased by up to 200%.The R32 refrigerant is used in air-conditioning and low-temperature refrigeration systems. It absorbs heat and creates cool air. Similarly, the R125 is also used in air-conditioning, refrigeration and other industries.
Confidence Petroleum commissioned 13 additional auto LPG (liquefied petroleum gas) dispensing stations, bringing the total number of stations to 287. This accomplishment is a significant step forward in its mission to promote cleaner, greener fuel solutions for a more sustainable future and reduce vehicular pollution. Confidence Petroleum India (CPIL) commissioned five CNG (compressed natural gas) stations in the city of Bangalore. CPIL, in collaboration with GAIL, is dedicated to realising its vision of transforming Bengaluru into a green city.
Sudarshan Pharma Industries entered into a rent agreement with Daundi Biological to acquire premises for a period of five years to set up a new research & development (R&D) formulation centre in the city of Dehradun (Uttarakhand, India). It is expected to commence operations of the formulation R&D centre in March 2025.
Goldiam International successfully launched a dedicated website for its domestic retail lab-grown diamond brand, ORIGEM, under the domain www.origemindia.com. The website will serve as a digital platform to showcase ORIGEM’s innovative product portfolio and its commitment to redefining luxury with sustainability at its core.
Biocon’s subsidiary -- Biocon Biologics (bbl) -- received an approval from the pharmaceuticals and Medical Devices Agency (PMDA) of Japan for Ustekinumab BS subcutaneous injection [YD], a bio-similar to the reference product, Stelara (Ustekinumab). The bio-similar Ustekinumab has been developed and manufactured by the company and will be commercialised and marketed in Japan by the company’s exclusive commercial partner, Yoshindo Inc.
Wardwizard Innovations & Mobility signed a memorandum of understanding (MoU) with C4V, a New York-based lithium-ion battery technology company specialised in battery cell design and optimisation. Angel One reported 51.7% growth in client base to 29.52mn (million) in December 2024 against 19.45mn recorded in December 2023. The company's client base rose by 2.6% month-on-month (m-o-m) from 28.78mn clients in November 2024.
Gensol Engineering secured an engineering-procurement-construction (EPC) contract from renowned public sector undertaking (PSU) for development of 275MW (megawatt) solar photovoltaic (PV) project at RE Solar Park (Khavda Rann, Kutch, Gujarat), with a total bid value of around Rs1,061.97 crore, including three years of operations & maintenance (O&M).
Happy Forgings (HFL) received an approval for capex budget of around Rs650 crore to set up facilities for heavy weight forged and machined components.
Alkem Laboratories entered into a business transfer agreement with Rubicon Research to sell its manufacturing facility in Pithampur (Madhya Pradesh). The consideration received from the sale is Rs149 crore. Cipla launched a mobile application designed to enable the first line of screening for asthma in India. According to the Global Burden of Disease report, the total number of asthma patients in India is estimated to be around 34.3mn. India has a three-fold higher mortality rate and two-fold higher asthma-associated disability burden, compared to the global proportion.
Zydus Lifesciences entered into an agreement with CVS Caremark, a CVS Health company to add Zituvio, Zituvimet and Zituvimet XR (Sitagliptin / Sitagliptin and Metformin Hydrochloride) tablets to its template formulary. CVS Caremark will add the company’s Zituvio and combination products to its template formulary. According to IQVIA (MAT August-2023), US market for DPP-IV inhibitors and their combinations is US$10bn (billion).
Paras Defence and Space Technologies was granted a licence under the Arms Act, 1959 by department for promotion of industry & internal trade, ministry of commerce & industry, government of India. This licence authorises the company to manufacture MK-46 and MK-48 belt-fed light machine gun (LMG) -- modernised enhanced and redefined LMG with a proposed annual capacity of 6,000 each.
Route Mobile partnered with PT MRT Jakarta, Jakarta's premier urban rail transit provider, to launch a WhatsApp-based metro ticketing solution through vending machines. With over 91,000 daily riders and 33.5mn annual ridership, Jakarta MRT plays a vital role in the city’s transportation infrastructure.
Tata Technologies entered into partnership with Telechips, a comprehensive automotive semiconductor solutions company, at CES 2025 to innovate vehicle software solutions for next-gen software-defined vehicles (SDVs). Together, the companies aim to develop innovative solutions for Advanced Driver Assistance Systems (ADAS) platforms, automotive cockpit domain controllers, and central & zonal gateway controllers that will accelerate the realisation of software-defined vehicles (SDVs), a cornerstone of connected, autonomous and electric mobility.
Exicom Tele-Systems signed an MoU with Mufin Green Infra, a leading provider of turnkey project solutions for electric vehicle (EV) charging infrastructure. The MoU will ensure the creation of end-to-end EV charging solutions including installation of EV chargers and setting up of EV charging infrastructure. The collaboration will target customers like Charge Point Operators, bus operators, state utilities and other end-users to accelerate EV adoption with state-of-the-art charging solutions.
Mahindra & Mahindra (M&M) unveiled its new manufacturing and battery assembly facility at its Chakan plant, a fully integrated ecosystem dedicated to producing electric SUVs.
Lupin received the establishment inspection report (EIR) from the United States Food and Drug Administration (US FDA) for its Pithampur unit-1 manufacturing facility that manufactures active pharmaceutical ingredients (APIs) and finished products. The EIR was issued with an inspection classification of voluntary action indicated (VAI) after the inspection of the facility from 16 September to 27 September 2024.
Orders
Larsen & Toubro (L&T) won new orders for its power transmission & distribution (PT&D) vertical in India and the Middle East. It has won an order to implement advanced distribution management system in West Bengal. This technology makes power distribution smarter by combining outage management system and distribution management system functionalities. Through real-time monitoring and control of medium- and low-voltage networks, the reliability of the network will be enhanced with quick isolation of faults and faster restoration.
Voltamp Transformers received purchase order from Adani Power and Mahan Energen (wholly-owned subsidiary of Adani Power) for Rs41 crore for supply of various ratings of distribution transformers. The order is expected to be executed within 12 months.
KEC International secured new orders of Rs1,136 crore across its various businesses -- transmission & distribution (T&D) business secured an order for a 765kV (kilovolt) transmission line project in India, from PGCIL, transportation business secured a significant order in the prestigious train collision avoidance system (TCAS) segment under ‘Kavach’ in India and oil & gas pipelines business secured a design, supply and build order for pipeline and associated works from a leading PSU in India.
NTPC Green Energy’s (NGEL’s) wholly-owned subsidiary -- NTPC Renewable Energy (NTPC REL) -- signed an MoU with Deendayal Port Authority (DPA) in Gandhidham (Gujarat). This MoU intends furthering the green energy technologies in Kandla Port under DPA and especially green hydrogen mobility project.
TV Today Network received an approval for the closure of FM radio broadcasting operations of the company (comprising of three FM radio stations in Mumbai, Delhi and Kolkata under the frequency 104.8 FM) subject to regulatory approvals.
Puravankara acquired a 3.63-acre land parcel in Kanakapura Road (Bengaluru). According to the company, this acquisition aligns with the company’s strategic vision to expand its footprint in key Bengaluru micro-markets with robust infrastructure, connectivity, and residential demand. The recently acquired land parcel in Vajrahalli (Kanakapura Road), spans an area of 3.63 acres, with a saleable area of 542,000sqft (suare feet) and a total estimated gross development value of Rs700+ crore.
Investment/ Acquisition / Stake Stale
Newgen Software Technologies’ material subsidiary-- Newgen Software Inc (NSI), executed an agreement with a USA-based healthcare client for enterprise content management. The aggregate value of the aforesaid agreement is $2,576,284 and duration of contract is three years.
L&T Technology Services (LTTS) completed the acquisition of 100% share of Intelliswift Software (India). Further LTTS’s wholly-owned subsidiary --L&T Technology Services LLC -- has completed the acquisition of 100% share of Intelliswift Software Inc.
Bajaj Housing Finance raised Rs2,898.83 crore through the allotment of 2,87,500 non-convertible debentures (NCDs), at face value of Rs1,00,000 each, on a private placement basis.
WPIL’s European subsidiary -- Gruppo Aturia -- acquired 100% shareholding of MISA ITALY, based in Arzignano (Italy). MISA is a leading Italian company in the business of large pumping station projects and supply of pumps and hydro turbines with a rich heritage dating back to 1901 and large reference list across Europe and North Africa.
Polyplex Corporation received an approval for setting up a BOPET manufacturing film plant in India, to expand the business of the company. The investment required for the plant will be Rs558 crore and will be funded through mix of debt and internal accruals.
Aarti Drugs signed and executed the share subscription and shareholders’ agreement with Prozeal Green Power (promoter company) and Pro-Zeal Green Power Six, a special purpose vehicle (SPV) formed for developing, constructing, operating and maintaining a solar power plant, for acquisition of at least 26.25% equity shares of the SPV and compulsory convertible debentures.
Earnings
One Mobikwik Systems reported net loss at Rs3.59 crore for Q2FY24-25 compared to net profit of Rs5.23 crore for the same quarter in the previous year. However, total income of the company increased by 41.99% at Rs293.67 crore for Q2FY24-25 compared to Rs206.83 crore for the corresponding quarter of the previous year.
GMR Airports entered into a share purchase agreement to acquire up to 5,00,000 equity shares and up to 1,90,00,000 non-cumulative compulsorily convertible preference shares of Bird Delhi General Aviation Services (BDGASPL) (representing up to 50% of the paid-up share capital of BDGASPL) from the existing shareholders of BDGASPL, for a total consideration of around Rs15.02 crore in one or more tranches.
GTPL Hathway reported 60.96% fall in net profit at Rs9.63 crore for Q3FY24-25 compared to Rs24.67 crore for the same quarter in the previous year. However, total income of the company increased by 4.07% at Rs895.68 crore for Q3FY24-25 compared to Rs860.67 crore for the corresponding quarter of the previous year.
IREDA reported 26.78% rise in its net profit at Rs425.38 crore for Q3FY24-25 compared to Rs335.53 crore for the same quarter in the previous year. Total income of the company increased by 35.57% at Rs1,698.98 crore for Q3FY24-25 compared to Rs1,253.19 crore for the corresponding quarter of the previous year.
Transformers And Rectifiers (India): In Q3FY24-25, sales increased by 51.4% year-on-year (y-o-y) to Rs559 crore. Net profit was up 253% y-o-y to reach Rs55.5 crore.
Top gainers and losers of the major indices for the week are given in the table below:
