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Business Recorder
4 days ago
- Business
- Business Recorder
India's benchmark Nifty 50 logs best day in three weeks on RBI's bumper policy support
India's benchmark Nifty 50 logged its best day in three weeks as investors rallied behind the central bank's bumper policy measures. The Reserve Bank of India (RBI) cut the key lending rate by 50 basis points, exceeding the widely expected 25 basis point reduction. It also unexpectedly reduced the cash reserve ratio (CRR) requirement for banks by 100 bps and shifted its policy stance to neutral from accommodative. The Nifty 50 and the BSE Sensex added about 1% on the day and for the week to close at 25,003.05 and 82,188.99, respectively. The benchmarks also recorded their first weekly gain after two straight weeks of decline. 'This is not business-as-usual monetary policy. It is a deliberate realignment based on a rare convergence of falling inflation, stable external accounts, and the need to pre-empt global slowdown spillovers,' said Arsh Mogre, economist at PL Capital. The CRR cut is expected to boost banking liquidity by 2.5 trillion rupees, on top of the existing surplus of 3 trillion rupees, Barclays said. This liquidity boost is expected to lower the cost of funding for banks and spur credit growth, powering rate-sensitive stocks. All 13 sub-sectors climbed. Financials jumped 1.8% on the day to hit record highs, with heavyweight HDFC Bank touching a lifetime high level after an 1.5% surge. Non-bank lender Bajaj Finance gained 4.9%. Reliance, rate-sensitive sectors lead Indian shares higher, RBI decision in focus Real estate stocks soared 4.7% and automobile stocks added 1.5%. The smallcaps and midcaps gained 0.8% and 1.2%, respectively. 'Excess liquidity tends to find its way into capital markets, especially in an environment of declining savings and deposit rates,' said Apurva Sheth, head of market perspectives and research at SAMCO Securities. Bucking the trend, some railway stocks, including RailTel Corporation of India and RITES, slipped on the day after Kotak Institutional Equities said the recent surge in stocks contrasted their fundamentals.
Mint
26-05-2025
- Business
- Mint
Stock Picks 2025: PL Capital Bets on defence, healthcare, and consumption Revival
After months of being weighed down by persistent FII outflows, Indian equity markets have shown a sharp turnaround in recent weeks. According to PL Capital, the Nifty has delivered an impressive 10 percent return over the past six weeks, fueled by better-than-expected corporate earnings in the fourth quarter of FY25. Excluding oil and gas, earnings surprised on the upside, with EBITDA and PBT beats of 5.1 percent and 9.2 percent, respectively. The brokerage noted that markets have digested the uncertainty surrounding global tariff wars, buoyed by hopes of constructive trade agreements and reduced disruption. However, PL Capital cautioned that the end of global turmoil remains elusive, citing China's slowing growth, sticky US interest rates, and rising rates in Japan. In this backdrop, the brokerage believes that RBI could cut rates by 50 basis points over the next six months, though the declining rate differential with global economies remains a critical factor to monitor. PL Capital emphasized that Operation Sindoor has marked a paradigm shift in global warfare, showcasing India's growing strategic capabilities in drone technology, precision missiles, and air warfare systems. According to the brokerage, this has elevated India's position on the global military map and bolstered the urgent need for indigenized defence capabilities under the Make in India initiative. PL Capital expects India to significantly boost investments in military hardware, drones, space technology, air defense systems, and smart grid infrastructure. With global powers increasingly focusing on Southeast Asia, the brokerage believes geopolitical risks will escalate, particularly as India's eastern borders and neighbors like Bangladesh and Pakistan become focal points for strategic maneuvering. The brokerage noted that the suspension of the Indus Water Treaty could unlock huge EPC, PSP, and hydroelectric opportunities, especially with 20GW+ of hydro potential in J&K still untapped. PL Capital believes that India must now prepare for a three-front war, a significant escalation from its earlier two-front strategy. To that end, the country will need a sharp ramp-up in fighter aircraft squadrons, particularly 5th generation jets and domestic platforms like Tejas Mk1 and Mk2. The brokerage also anticipates substantial allocations toward air defense systems, radar technology, indigenous early warning systems, and next-gen platforms such as GE-414 and AMCA. On the naval front, India could potentially add a third aircraft carrier, expand its submarine fleet, and strengthen coastal defenses to safeguard its maritime interests in the Indian Ocean and Bay of Bengal. PL Capital also pointed out that warfare is now heavily reliant on power management and blackout systems, which should lead to higher smart grid and power transmission investments. Beyond geopolitics, PL Capital observed that the domestic macro backdrop is turning favorable. With CPI inflation at a four-year low (3.16 percent) and food inflation at 1.78 percent, the environment is ripe for a revival in discretionary demand. A strong Kharif and Rabi output (6.8 percent and over 3 percent growth), coupled with a normal monsoon forecast (106 percent of LPA) and tax cuts, could provide a strong fillip to sectors like Auto, QSR, Hotels, Airlines, Consumer Durables, Apparel, Paints, Building Materials, and AMCs. PL Capital also maintained a positive outlook on sectors like Capital Goods, Defence, Hospitals, Pharma, EMS, Travel, and Telecom, where demand remains resilient and long-term growth visibility is intact. Large Caps: ABB India, Bharti Airtel, Britannia Industries, Hindustan Aeronautics (HAL), ICICI Bank, InterGlobe Aviation, ITC, Kotak Mahindra Bank, Mahindra & Mahindra, Max Healthcare Institute, Sun Pharmaceutical Industries, Titan Company Mid/Small Caps: Astral Ltd, Chalet Hotels, Crompton Greaves ,Consumer Electricals, Eris Lifesciences, IRCTC, Ingersoll-Rand (India), KEI Industries, Rainbow Children's Medicare, and Triveni Turbine. As part of its conviction list reshuffle, PL Capital has added HAL, Sun Pharmaceutical Industries, and Rainbow Children's Medicare, while removing Bharat Electronics, Cipla, Maruti Suzuki, Aster DM Healthcare, and Kaynes Technology. HAL stands out with a robust ₹ 1.9 trillion order book and more than ₹ 1 trillion in the pipeline, driven by strong momentum in Tejas Mk1A, Mk2, AMCA, and IMRH programs. PL Capital sees HAL benefiting from sustained defence capex and indigenization policies. Sun Pharmaceutical Industries is expected to continue its growth trajectory, supported by a strong specialty portfolio, clinical pipeline, and upcoming product launches like Leqselvi. The brokerage sees strong performance in both domestic and international markets. Rainbow Children's Medicare was lauded for its asset-light hub-and-spoke model, superior margins, and aggressive expansion plans. The company plans to add 780+ beds by FY27, which is expected to drive a 19 percent revenue CAGR and 26 percent PAT CAGR through FY25–27. PL Capital values the stock at 28x FY27E EV/EBITDA and maintains a 'BUY' rating with a target price of ₹ 1,785/share. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Economic Times
23-05-2025
- Business
- Economic Times
PL Capital highlights 21 stocks with upside potential up to 35% as market digests geopolitical risks
Large Cap Mid / Smallcap Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Shrugging off geopolitical uncertainties, Indian equity markets have staged a sharp rebound over the past six weeks, reflecting investor optimism amid easing global tariff tensions and better-than-expected corporate results. This has prompted domestic brokerage firm Prabhudas Lilladher Capital to pick a bouquet of 21 stocks which could deliver returns of up to 35%.The report identifies the following stocks as top investment picks, with estimated upside potential ranging from 5% for Titan Company to 34.3% for Triveni Turbine:ABB India, Bharti Airtel, Britannia Industries, Hindustan Aeronautics, ICICI Bank, InterGlobe Aviation, ITC, Kotak Mahindra Bank, Mahindra & Mahindra, Max Healthcare Institute, Sun Pharmaceutical Industries, Titan CompanyAstral, Chalet Hotels, Crompton Greaves Consumer Electricals, Eris Lifesciences, IRCTC, Ingersoll-Rand (India), KEI Industries, Rainbow Children's Medicare, Triveni TurbinePL Capital noted that the markets appear to have digested uncertainties surrounding global tariff tensions, with hopes pinned on limited disruption and new trade global risks persist, including China's economic slowdown and interest rate dynamics in the US and a further 50 basis point rate cut by the RBI is seen as possible over the next six months, although narrowing rate differentials with major global economies remain a key report highlights 'Operation Sindoor' as a key development redefining the role of advanced military technology, including air warfare, drone systems, and space Capital states that India is being viewed as a potential global military superpower, with rising investments in related sectors like air defense systems, smart grids, power solutions, and hydroelectric also adds that the abeyance of the Indus Water Treaty may open up fresh opportunities in EPC, PSP, and hydroelectric the macroeconomic front too, PL Capital says conditions are favourable for a recovery in domestic demand. It attributes this to factors such as low food inflation (1.78% as of November 2021) and the CPI at 3.16%, the lowest since August to this, the Indian Meteorological Department has forecasted a normal southwest monsoon for 2025 at 106% of the long-period average, which could aid in demand report further highlights that the personal income tax cuts proposed in the FY26 budget are beginning to reflect in improved demand. PL Capital estimates a demand surge of around Rs 2.5 lakh crore (USD 30 billion) due to the tax cuts, with a stronger impact expected for individuals earning above Rs 1 lakh per seen benefiting from this trend include Travel, Durables, QSR, Apparel, Auto, building materials, and Capital concludes that demand recovery is visible across segments such as auto, hotels, airlines, durables, household goods, paints, and capital goods, with continued positivity in hospitals, pharma, EMS, travel, and telecom.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
Hans India
23-05-2025
- Business
- Hans India
India needs to further ramp up investments in military hardware, space tech: Report
In response to shifting global dynamics, India will need to significantly ramp up investments in military hardware, space technology, drones, air defence systems, aircraft carriers, smart grids and power infrastructure, a report showed on Friday. 'Operation Sindoor' has showcased a transformative application of advanced air warfare, missile systems, and drone technology, reinforcing the strategic importance of the 'Make in India' initiative. 'As global powers seek to expand their footprint in Southeast Asia, geopolitical uncertainties are expected to intensify,' according to the report by PL Capital. Additionally, the suspension of the Indus Water Treaty is likely to unlock new opportunities across engineering, procurement, and construction (EPC), pumped storage projects (PSPs), and hydroelectric equipment, it added. PL Capital believes geopolitical complexities are on the rise and are likely to intensify in the near future. While the Middle East has long been a region of fragile stability, Southeast Asia now finds itself on the brink of disruption. The growing involvement of global powers in India's neighbourhood is expected to heighten tensions across various fronts, potentially reshaping existing alliances, triggering economic volatility, and increasing the risks of conflict, terrorism, and regional instability, the report mentioned. Recent developments surrounding 'Operation Sindoor' mark a significant step in India's emergence as a global military power. 'However, this also underscores the urgent need for India to accelerate its technological advancement and economic growth in response to these shifting geopolitical dynamics,' the 'India Strategy Report' mentioned. Moreover, the Indian markets, which had been under pressure in recent months due to FII selling, have staged a sharp recovery, delivering a 10% return on the Nifty over the past six weeks. The Q4 FY25 results so far have exceeded expectations, with EBITDA and PBT (excluding Oil and Gas) surpassing estimates by 5.1 per cent and 9.2 per cent, respectively. Also, early signs of recovery are emerging in urban consumption, with a gradual but sustained improvement expected in the coming quarters. In FY25, agricultural production has recorded a growth of 6.8 per cent in Kharif crops and around 3 per cent in Rabi crops. Wheat procurement has reached 29.5 million tonnes, already exceeding last year's 26 million tonnes — a development that will significantly enhance the government's ability to control wheat prices during the off-season, said the report. Additionally, water reservoir levels in May are 22 per cent higher compared to the same period last year. A normal monsoon is expected to sustain elevated water tables, which will positively impact the next Rabi crop as well, said the report.
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Business Standard
16-05-2025
- Business
- Business Standard
BSE500 stock soars 51% in 8 days; nearly doubles from April month low
Share price of Apar Industries today Shares of Apar Industries hit an over three-month high of ₹8,399.95, gaining 6 per cent on the BSE in Friday's intra-day trade in an otherwise subdued market on expectations of strong future outlook. The BSE500 stock was trading at its highest level since January 28, 2025. It had hit a 52-week high of ₹11,797.35 on January 8, 2025. In comparison, the BSE Sensex was down 0.2 per cent at 82,369.56 at 01:30 PM. The stock price of Apar Industries, the world's largest aluminium alloy conductor manufacturer, 3rd largest transformer oil manufacturer and India's largest renewable cables manufacturer, was quoting higher for the eight straight day, soaring 51 per cent during the period. It has nearly doubled or zoomed 97 per cent from its previous month low of ₹4,270 touched on April 7, 2025. Strong Q4 results, outlook Despite the current uncertainties relating to reciprocating tariffs from the US, Apar saw a strong recovery in its US business. This growth is expected to continue on the back of a supply and demand gap which is filled by $20 bn imports annually. The management said the company has achieved a historic milestone of revenue in Q4FY25 surpassing ₹5,000 crore. Strategic business depth, resilient domestic market and growth in the US business have all contributed to achieving healthy operating margins. The management is optimistic that the future outlook will continue to remain strong with a steadfast commitment to higher efficiency and innovative product offerings as the world goes through the energy transition. Brokerage view – PL Capital Domestic demand continued to show strength while recovery in the US further pushed the top line. The company announced a ₹1,300 crore capex to enhance manufacturing capabilities across segments, supporting future expansion. Favorable macro tailwinds - such as re-conductoring opportunities, public capex in T&D, and the energy transition - will support management guidance of 10 per cent volume growth in the Conductors segment and 25 per cent sales growth in the Cables business in FY26. Analysts believe, US exports, Chinese competition in other markets and pace of re-tendering in the Indian market to be key monitorable in the medium term. However, we are long-term positive on the stock owing to 1) robust transmission & distribution (T&D) capex driving demand across segments; 2) focus on premium conductors in the domestic market, 3) healthy traction in elastomeric cables used in renewables, defence and railways, and 4) market leadership in the growing T-oils business. About Apar Industries Apar Industries is a diversified $2 billion conglomerate with a strong presence in over 140 countries. As the largest aluminium and alloy conductor manufacturer and the 3rd largest transformer oil manufacturer, the company enjoys a leadership position in the global markets. Apar also offers over 350 grades of speciality oils, the largest range of speciality cables, lubricants, speciality automotive and polymers.
