Latest news with #NiftyMidcap150
Economic Times
5 days ago
- Business
- Economic Times
Bharat Dynamics shares rally 6% as govt plans Rs 40,000 crore defence R&D push
Bharat Dynamics shares jumped 5.6% after reports said the government plans to raise defence R&D spending to Rs 40,000 crore next year and double it over five years, allowing private players to compete with PSUs. Separately, a Rs 2,000–3,000 crore missile order for BDL is in the works. The company is also expanding output amid rising demand. Tired of too many ads? Remove Ads Support for private sector, acquisition reform Tired of too many ads? Remove Ads Separate Rs 2,000–3,000 crore missile deal in pipeline Strategic context: Aftermath of Operation Sindoor Long-term tailwinds for BDL Tired of too many ads? Remove Ads Shares of Bharat Dynamics surged as much as 5.6% on Friday to Rs 2,082.75 on the BSE after a report indicated that the Indian government is preparing to sharply increase defence R&D spending to Rs 40,000 crore next year, with plans to double it over the next five years, while enabling private players to compete on equal footing with public sector to an ETNOW exclusive citing government sources, the Ministry of Defence is working on a proposal to significantly raise R&D expenditure—from around Rs 27,000 crore currently to nearly Rs 40,000 crore by next year—and further scale it up to Rs 70,000–80,000 crore over the next four to five government also plans to simplify the defence acquisition process and amend existing rules to 'create a level playing field for the private sector,' the report said. It further noted that 'private sector companies will also be allowed to bid for various projects alongside PSUs such as Hindustan Aeronautics Ltd Mazagon Dock Shipbuilders Ltd , and Bharat Dynamics Ltd.'Shares of Bharat Dynamics Ltd (BDL) jumped on the news, with high trading volumes underscoring strong investor interest. BDL is part of the Nifty Midcap 150 index, highlighting its significance within India's mid-cap equity space. Shares of Hindustan Aeronautics Ltd also rose as much as 1.2% to Rs 5,063 on the BSE during Friday's Ministry is reportedly 'working on a proposal to support defence R&D projects' and plans to ensure that 'the private sector is likely to receive financial support comparable to public sector companies,' ETNOW anticipated overhaul in R&D funding and procurement rules comes amid the government's broader push to boost indigenous defence manufacturing and reduce import dependence. The defence establishment also aims to accelerate development timelines for critical technologies by streamlining approvals and increasing private sector Bharat Dynamics is in focus following a May 27 Moneycontrol report that the Ministry of Defence is preparing a procurement order for 500 Invar anti-tank guided missiles (ATGMs) from the state-run firm. The deal is estimated to be worth between Rs 2,000 crore and Rs 3,000 missiles, known for their precision strike capabilities, will be deployed on India's T-90 main battle tanks. The proposal is currently under financial expected missile procurement follows Operation Sindoor, a precision military strike launched in response to a deadly terrorist attack in Pahalgam that claimed 26 civilian lives. The operation showcased India's increasing reliance on indigenous high-tech defence systems, including drones, air defence networks, and electronic warfare plan to equip T-90 tanks with Invar missiles from Bharat Dynamics aligns with the government's broader thrust on operational preparedness and domestic is well-positioned to benefit from India's expanding defence budget and modernisation drive. The company currently has an order book of Rs 3,110 crore and is targeting revenue growth of 28–30% in FY25. It has also made significant progress in indigenising critical components to reduce supply chain state-run missile maker is expanding its production capacity, aiming to double output in 3–5 years and triple it within the next decade to meet rising domestic and global demand.: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Time of India
5 days ago
- Business
- Time of India
Bharat Dynamics shares rally 6% as govt plans Rs 40,000 crore defence R&D push
Shares of Bharat Dynamics surged as much as 5.6% on Friday to Rs 2,082.75 on the BSE after a report indicated that the Indian government is preparing to sharply increase defence R&D spending to Rs 40,000 crore next year, with plans to double it over the next five years, while enabling private players to compete on equal footing with public sector firms. According to an ETNOW exclusive citing government sources, the Ministry of Defence is working on a proposal to significantly raise R&D expenditure—from around Rs 27,000 crore currently to nearly Rs 40,000 crore by next year—and further scale it up to Rs 70,000–80,000 crore over the next four to five years. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Mountain Gear for Extreme Conditions Trek Kit India Learn More Undo The government also plans to simplify the defence acquisition process and amend existing rules to 'create a level playing field for the private sector,' the report said. It further noted that 'private sector companies will also be allowed to bid for various projects alongside PSUs such as Hindustan Aeronautics Ltd , Bharat Electronics Ltd , Mazagon Dock Shipbuilders Ltd , and Bharat Dynamics Ltd.' Shares of Bharat Dynamics Ltd (BDL) jumped on the news, with high trading volumes underscoring strong investor interest. BDL is part of the Nifty Midcap 150 index, highlighting its significance within India's mid-cap equity space. Shares of Hindustan Aeronautics Ltd also rose as much as 1.2% to Rs 5,063 on the BSE during Friday's session. Support for private sector, acquisition reform Live Events The Ministry is reportedly 'working on a proposal to support defence R&D projects' and plans to ensure that 'the private sector is likely to receive financial support comparable to public sector companies,' ETNOW said. This anticipated overhaul in R&D funding and procurement rules comes amid the government's broader push to boost indigenous defence manufacturing and reduce import dependence. The defence establishment also aims to accelerate development timelines for critical technologies by streamlining approvals and increasing private sector participation. Separate Rs 2,000–3,000 crore missile deal in pipeline Separately, Bharat Dynamics is in focus following a May 27 Moneycontrol report that the Ministry of Defence is preparing a procurement order for 500 Invar anti-tank guided missiles (ATGMs) from the state-run firm. The deal is estimated to be worth between Rs 2,000 crore and Rs 3,000 crore. The missiles, known for their precision strike capabilities, will be deployed on India's T-90 main battle tanks. The proposal is currently under financial vetting. Strategic context: Aftermath of Operation Sindoor The expected missile procurement follows Operation Sindoor, a precision military strike launched in response to a deadly terrorist attack in Pahalgam that claimed 26 civilian lives. The operation showcased India's increasing reliance on indigenous high-tech defence systems, including drones, air defence networks, and electronic warfare capabilities. The plan to equip T-90 tanks with Invar missiles from Bharat Dynamics aligns with the government's broader thrust on operational preparedness and domestic capability-building. Long-term tailwinds for BDL BDL is well-positioned to benefit from India's expanding defence budget and modernisation drive. The company currently has an order book of Rs 3,110 crore and is targeting revenue growth of 28–30% in FY25. It has also made significant progress in indigenising critical components to reduce supply chain vulnerabilities. The state-run missile maker is expanding its production capacity, aiming to double output in 3–5 years and triple it within the next decade to meet rising domestic and global demand. Also read | Market surge leads to Rs 50,000 crore worth stake sales by promoters and shareholders ( Disclaimer : Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Time of India
5 days ago
- Business
- Time of India
D-St Bull Run Fires up Blockbuster Deals of Promoters, Shareholders
The stock market rebound in the past few months has prompted dominant shareholders and promoters of companies to trim their stakes. So far this month, they have sold shares worth over ₹50,000 crore through bulk and block deals on the bourses after a lull, continuing from where they left off before October, when the stock market was in the midst of a bull run. According to exchange data, prominent shareholders and promoters divested stakes in ITC, Bharti Airtel, InterGlobe Aviation (IndiGo), PNB Housing and One 97 Communications (Paytm) this month, along with Kfin Technologies, KPR Mill and PG Electroplast. The divestments ranged from ₹1,133 crore to ₹12,941 crore since May 1. 'A significant amount of domestic liquidity had been waiting on the sidelines for market stability,' said Ajay Saraf, ED and head of investment banking at ICICI Securities. 'With foreign funds turning positive on India's secondary market and key overhangs like geopolitical tensions and tariff concerns easing, the deal market has roared back to life.' This momentum is expected to continue as long as the current positive sentiment holds and no major crisis disrupts the environment, said Saraf. Among the largest deals, British American Tobacco sold 2.5% of its stake in ITC, worth ₹12,941 crore while Singtel affiliate Pastel Ltd sold Bharti Airtel shares worth ₹12,880 crore. BAT is the largest shareholder in ITC, while Singtel is part of the promoter group of Bharti. InterGlobe Aviation promoter Rakesh Gangwal and his family trust sold a 5.72% stake for about ₹11,564 crore. Private equity firm Carlyle's subsidiary, Quality Investment Holdings, offloaded its entire stake of 10.4% in PNB Housing Finance worth ₹2,713 crore. Ant Financial, the fintech subsidiary of Alibaba Group, sold shares of One 97 Communications worth ₹2,104 crore through open-market transactions. Kfin Technologies promoter General Atlantic Singapore Fund Pte sold shares worth ₹1,790 crore. 'The resurgence in Indian equity capital market deals is being driven by a confluence of positive factors — stabilising geopolitical tensions, easing trade uncertainties, encouraging full-year corporate earnings, improving high-frequency macro indicators, renewed FII interest, and sustained retail inflows into domestic mutual funds,' said Ranvir Davda, co-head of investment banking at HSBC India. 'We believe that IPOs, blocks, and follow-on activity in the second half of calendar year 2025 will be significantly higher compared to the first half, with multiple companies having already received Sebi approval and several other listed companies having announced plans for fund-raising.' The selling in the secondary market was not limited to large caps and extended to small and midcap companies such as PG Electroplast and KPR Mill, in which promoters reduced stakes by selling shares worth ₹1,132 crore and ₹1,232 crore, respectively. So far in May, the Nifty 50 has gained 2.05% while the Nifty Midcap 150 has risen 6.5% and the Smallcap 250 has advanced 9.2%. 'FY24 saw an all-time high in promoter exits, which was also on the back of a bullish market,' said Pranav Haldea, MD, Prime Database Group. 'While promoter buying is always a good sign, reasons for exit can vary and range from cashing out due to good valuation, setting up other businesses, debt reduction and personal reasons.' While policy announcements from the US remain unpredictable, the momentum in open-market transactions looks likely to continue, he said.
Time of India
6 days ago
- Business
- Time of India
Smallcap mania is back. But do Q4 earnings really justify the multibagger hype?
A smallcap rally is exciting investors, with the BSE Smallcap Index rising nearly 10% in a month and many stocks delivering over 30% returns. However, earnings growth lags behind, with smallcaps showing lower profit growth compared to largecaps. Experts advise caution, suggesting a focus on fundamentals and a potential shift towards largecaps due to stretched valuations in the smallcap segment. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads A blistering rally in smallcap stocks is reigniting investor dreams of overnight riches but the numbers are telling a far more complicated story. With the BSE Smallcap Index up nearly 10% in one month, retail participation is surging, echoing the speculative fervor of the last bull market that climaxed in September 2024. And the excitement isn't just index-level: in the last one month, a staggering 69 smallcap stocks have delivered over 30% returns. Among the biggest gainers, Suven Life Sciences surged 83%, while GRSE Nelcast , and HLE Glascoat all rallied at least 50%.But while prices soar, fundamentals remain shaky and earnings aren't keeping pace with the hype.'Indian smallcaps and midcaps seem to have outperformed largecaps in Q4 FY25, but the numbers tell a different story,' said Akshay Badjate, Fund Manager at Merisis PMS. 'Our analysis of the top 750 listed companies shows smallcaps lagging in profit growth, with a median PBT growth of just 4% compared to 11% for the top 250 largecaps. Many smallcaps even posted flat or negative growth, undermining the narrative of a broad-based rally.'Despite the tepid performance on the bottom line, investor appetite has remained insatiable. The Nifty Smallcap 250 has rallied 9% in the last two months, triple the 3% rise seen in the Nifty 50. Badjate attributes this surge to 'liquidity, retail enthusiasm, and domestic growth optimism,' but warns that the disconnect between price and performance may not be sustainable.'Our view at Merisis Advisors is cautious,' he said. 'While select smallcaps with strong fundamentals remain appealing, the segment risks a correction if earnings don't align with valuations. We're trimming smallcap exposure and leaning into largecaps and large midcaps, where we see better operational momentum and value.'Q4 did deliver a few bright spots for the broader market. 'The Nifty Midcap 150 reported 15% YoY profit growth and the Smallcap 250 delivered 12%. Margin performance was largely stable in midcaps, though smallcaps saw some pressure,' said Krishna Appala, Fund Manager at Capitalmind Appala also flagged that the earnings catch-up story has its limits. 'Valuations remain stretched — midcaps trade at 34x and smallcaps at 32x trailing earnings, well above the 22x seen in largecaps. The divergence between earnings and valuations in the broader market calls for greater selectivity.'He further added that while largecaps may appear sluggish, they now offer a better risk-reward profile. 'Despite the sharp upmove recently, largecaps currently offer a better balance of earnings visibility and valuation comfort on a forward-looking basis. The environment today rewards fundamentals and discipline over broad-based exposure — especially when mid and smallcap multiples leave little room for error.'Still, not all fund managers are ready to write off smallcaps just yet. Vaibhav Chugh, Director and Head of Sales at Whiteoak Capital AMC, sees rich opportunity in the chaos — provided investors pick wisely.'Yes, the result season started slow but as it progressed, midcaps and smallcaps have surprised on growth trajectory as well as upgrades to downgrades statistics,' Chugh said. 'We continue to be overweight small caps. We find relatively high alpha opportunities due to the heterogeneity of business models, sectors and sub-sectors in the smallcap space — which is the ideal setup for bottom-up stock pickers.'With nearly 70 smallcap names delivering eye-popping returns in a matter of weeks, the lure of the next multibagger is proving hard to resist. But experts caution that investors need to tread carefully — the fundamentals are not as broad-based as the rally suggests, and elevated valuations leave little room for disappointment. The smallcap story is far from over, but chasing momentum without earnings to back it could lead to painful lessons.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Economic Times
26-05-2025
- Business
- Economic Times
What does Nifty's surge above 200-DMA mean for investors?
Agencies Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Mumbai: The recent rebound in the stock market has pushed the Nifty above its 200-Day Moving Average (DMA)-a long-term trend indicator-signalling a bullish undertone among blue chips. Beneath the surface, the optimistic mood may not be as widespread, but it's more sanguine than it was a couple of months the top 500 stocks, 226 are trading above 200-day moving averages, according to Axis Securities . When a stock or an index is above its 200 DMA, it's said to be in a long-term uptrend and vice versa. It's the average price of a stock or index over the last 200 trading days, which is close to a full trading year, helping investors get a better view of the price trends over a longer period. Nifty's 200-DMA is at 24,631, about 0.9% below Friday's closing level of 24, the stocks that are above 200-DMAs are still less than 50% in Nifty 500 index, it's higher compared to 95 in March and 45 in February, a sign of gradually improving investor confidence with a tinge of caution."The investor sentiment has improved significantly since February-March as the broader market has witnessed renewed buying interest, but the recovery is gradual as investors remain selective buyers focusing on companies that delivered good results," said Ruchit Jain, vice president- head technical research at Motilal Oswal Financial Services Of the stocks trading above 200- DMA, 62 are trading 10-20% away from the average price and 15 are at a 20-30% distance, while 138 are as much as 10% away. 11 stocks are trading 30% above their 200-DMA, according to Axis. Similarly, 162 stocks are up to 10% below the 200- DMA, 69 are 10-20% below the level, and 25 are over 20% bullish conditions, fewer than 50% of the top 500 stocks below the 200-DMA would not be a reason to celebrate, but given the lingering concerns over the economic fallout of tariffs and uncertainty over corporate earnings, optimists would consider this number acceptable.'Despite the muted fourth quarter earnings, a greater number of stocks out of the NSE 500 universe are trading above the 200-DMA compared to February and March, indicating investor confidence is returning on the street,' said Rajesh Palviya, head of technical and derivatives, Axis Nifty 500 Index slumped by nearly 8% in February but bounced back in March and April, gaining 7.3% and 3.2%, respectively. The Nifty Midcap 150 and Smallcap 250 indices have risen 17.6% and 20.2%, respectively, from their lows this year on February 28 and March 3.'Mid-caps moved up when domestic investors bought, and large-cap names performed well when foreign investors began purchasing after a period of aggressive sell-off, so there has been rotation among the stocks,' said Jain.
