Equity Alert
HEG ends over 7% higher; stock up over 13% in four sessions
This story was originally published at 16:34 IST on 29 December 2025
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Equity Alert: HEG ends over 7% higher; stock up over 13% in four sessions
MUMBAI--1600 IST--Shares of graphite electrode manufacturer HEG ended over 7% higher, closing higher for the fourth consecutive session. The stock's total traded shares also spiked. Nearly 10 million shares of the company exchanged hands on the National Stock Exchange during Monday's session, over five times the number of shares traded in the previous session. Shares of the company have risen more than 13% in the last four sessions to end at INR 600.25 Monday.
HEG is well-positioned to lead the next global cycle that is forming through China's anti-involution shift, Europe's carbon border adjustment mechanism, and a globally coordinated policy resolve aimed at lifting the steel industry out of a prolonged downturn through rising protectionism, Business Standard newspaper reported, citing Emkay Global Financial Services. The brokerage said HEG's business model is historically geared to cycle amplitude. The company hopes that in the next two to three quarters, its steel production will increase and the new electric arc furnace capacities will start coming online in the next one to two years, according to the same report.
All four brokerage reports available with Informist on the stock have a 'buy' recommendation on the stock with an average target price of INR 1,501, indicating an over 150% upside to spot price. (Eshitva Prakash)
Equity Alert: Benchmark indices end lower; IT, financial svcs stocks drag
MUMBAI--1553 IST--Benchmark indices ended the session lower, dragged down by information technology and financial services companies. The Nifty 50 fell below the mark of 26000. The fall in shares of Reliance Industries and Bharti Airtel, around 1?ch, also weighed on the Nifty 50.
The Nifty 50 index ended at 25942.10 points, down 100.20 points or 0.4% and the BSE Sensex ended 84695.54 points, down 345.91 points or 0.4%. The information technology stocks ended the session lower with shares of Infosys, Wipro, HCL Technologies, and Tata Consultancy Services down around 1-2%. Tech Mahindra ended flat.
Tata Steel and Tata Consumer Products aided the Nifty 50 index, ending the session 2% higher each. Shares of Asian Paints and Grasim Industries ended around 1% higher each. Adani Ports and Special Economic Zone was the worst hit, down over 2%. Shares of Power Grid Corp. of India closed nearly 2% lower. Heayweight stocks such as Reliance Industries and ICICI Bank were down 1?ch. Shares of financial services companies such as Bajaj Finserv, Shriram Finance, and Bajaj Finance ended 0.2-1% lower.
In the sectoral indices, Nifty Media was the top gainer, up nearly 1%, followed by Nifty FMCG and Nifty PSU Bank, down around 0.1%.
Housing & Urban Development Corp. was the top gainer in the Nifty 200 index, up over 2%. Shares of Rail Vikas Nigam and Indian Railway Finance Corp. were the worst hit in the Nifty 200 index, down over 5?ch. Both the companies fell after hitting the one-month high. The stocks fell after rising for five consecutive sessions on hope of government support for railway infrastructure and operational efficiency before the Union Budget. (Adhithya Aji)
Equity Alert: Nifty 50 Dec ends at premium of 13.70 points to spot index
MUMBAI--1543 IST--The December futures contract of the Nifty 50 closed at a premium of 13.70 points to the spot index. Open interest in the contract rose 4.3% to 10.81 million, according to provisional data.
--Nifty 50 closed at 25942.10 points, down 100.20 points or 0.4% vs Fri
--Nifty 50 December closed at 25955.80 points, down 104.40 points or 0.4% vs Fri
Nifty 50 options, expiring Tuesday, with maximum change in open interest:
Call: 26000, Put: 25900
Nifty 50 options, expiring Tuesday, with maximum open interest:
Call: 26000, Put: 26000
(Gopika Balasubramanium)
Equity Alert: Jupiter Wagons falls 4%, snapping five-day winning run
MUMBAI--1530 IST--Shares of Jupiter Wagons fell around 4% to an intraday low of INR 334.05, snapping a five-day winning streak. The recent gains in the stock followed the company's promoter Tatravagonka A.S. increasing its stake in the firm through the conversion of convertible warrants issued under a previously approved preferential allotment.
The positive sentiment around the stock was also boosted by optimism ahead of the Union Budget 2026, driven largely by expectations of government support for railway infrastructure and operational efficiency. On Monday, shares of the company closed nearly 3% lower at INR 337.70 on the National Stock Exchange.
The stock fell after gaining around 37% in the past five sessions. On Dec. 19, the company's board had approved the allotment of 2.87 million shares of the company at a premium of INR 460 per share, pursuant to the conversion of 2.87 million convertible warrants promoter Tatravagonka A.S. Post allotment, Tatravagonka holds 19.2 stake in the company compared to the 18.7% stake it held as of Sept. 31. The three research reports on the company available with Informist have a 'buy' recomendation on the stock with target prices of INR 360-INR 500. (Arya S. Biju)
Equity Alert: Hind Zinc down 3?ter silver price drops 8% from record high
MUMBAI--1530 IST--Shares of silver producer Hindustan Zinc snapped a four-day winning streak after the white metal's price declined as much as 8% from its record high on the Multi Commodity Exchange of India. At 1518 IST, the March futures contract of silver was at INR 235,903 per kilogram, down nearly 2% from its previous close. The metal had hit a record high of INR 254,174 per kg earlier in the day.
Shares of Hindustan Zinc fell almost 3% to INR 618.55 after having risen over 3?rlier in the day. Shares of the company went into the red around midday, tracking the decline in silver price. Over 27 million shares of the company exchanged hands on the NSE, more than double the 13.46 million shares traded Friday. The price of silver has been making fresh highs the past few sessions, due to which Hindustan Zinc has risen more than 27% so far in December.
Of the seven brokerage reports on the stock available with Informist, five have a "buy" recommendation with an average target price of INR 574, while one brokerage each has a "sell" and a "hold" recommendation. (Eshitva Prakash)
Equity Alert: Europe indices open lower; Ukraine-US talks affect defence cos
MUMBAI--1512 IST--Indices in Europe opened lower with defence stocks falling in early trade after the weekend peace talks between US President Donald Trump and Ukraine's President Volodymyr Zelenskyy. Shares of German defence and aerospace company Hensoldt fell 2% while those of Rheinmetall also fell over 2%. Shares of Swedish defence company Saab also fell over 2%.
French biotech company Abivax emerged as one of the best performers in Europe on optimism over the prospects for its lead asset, a treatment for ulcerative colitis, according to a report from CNBC. Shares of the company rose nearly 3%.
Trading volumes may be light this week because of the Christmas holidays with regional markets closing for New Year's Day as well. Prospects of a peace deal for Ukraine before the end of the year are fading after the presidents of the US and Ukraine said that despite progress made during talks, "one or two very thorny" issues still persist, the report from CNBC said. Oil prices rose as investors gauged the prospects of a peace deal to end the Ukraine war. US crude oil rose 1% to $57.34 a barrel while global benchmark Brent gained 1% to $61.27.
Following were the levels of major European indices at 1512 IST:
|
Index |
Level |
Change in % |
|
FTSE 100 Index |
9872.08 |
0.01 |
|
DAX Performance-Index |
24288.70 |
(-)0.21 |
|
CAC 40 |
8105.94 |
0.03 |
|
FTSE MIB Index |
44510.49 |
(-)0.22 |
| STOXX 50 | 5744.40 | (-)0.03 |
(Akshat Saksena)
Equity Alert: Indices remain lower as IT, financial services stocks weigh
MUMBAI--1440 IST--The benchmark indices remain lower as information technology stocks added pressure along with financial services stocks. A decline in heavyweight stocks such as ICICI Bank and Reliance Industries, which fell nearly 1% and 0.5% respectively, also weighed on the Nifty 50 index.
At 1439 IST, the Nifty 50 was at 25948.20 points, down 94.10 points or 0.4%. The BSE Sensex was at 84727.77, down 313.68 points or 0.4%.
Shares of information technology companies such as Wipro, Infosys, Tata Consultancy Services, and HCL Technologies were down around 1%. Shares of Asian Paints rose 2?ter hitting a one-month low of INR 2,735 and were among the top gainers in the 50-stock index. Tata Steel was up nearly 2%. Tata Consumer Products was up over 1%. Meanwhile, Adani Ports and Special Economic Zone hit a month's low of INR 1,457.40 and was the worst-hit stock in the benchmark index.
Indian Railway Finance Corp. and Rail Vikas Nigam were the worst hit in the Nifty 200 index, down nearly 5% and over 4%, respectively. The stocks of these companies fell after gaining for five consecutive sessions on expectations of government support for railway infrastructure and operational efficiency before the Union Budget.
Shares of state-owned MMTC rose 11% to a two-month high of INR 71.25, supported by rising gold and silver prices, which lifted sentiment for bullion-linked companies, amid a sharp spike in trading volumes. The stock was the top gainer in the Nifty 500 index. (Adhithya Aji)
Equity Alert: Reliance Infra hits lower circuit after 5-session trading pause
MUMBAI--1410 IST--Shares of Anil Ambani-led Reliance Infrastructure fell 5% Monday and hit a lower circuit at INR 164.54. The stock had resumed trading after a five-session pause, prior to which, it had risen for six straight sessions. The stock was restricted from trading due to regulatory curbs, after the company was admitted into the insolvency resolution process under the Insolvency and Bankruptcy Code, according to media reports.
The stock had risen for six straight sessions until Dec. 19, when it paused trading. During that period, Reliance Infrastructure advanced 34%. Despite this, the volatility-prone stock has lost over 4% so far in the month and is down 45% in the past 52 weeks. The Enforcement Directorate had placed a INR-778.60-million lien on the company's bank accounts for alleged violations under the Foreign Exchange Management Act, 1999. In another case, the Enforcement Directorate attached seven properties of the company for alleged violations of the Prevention of Money Laundering Act, 2002. The agency has so far attached assets worth INR 101 billion in a money-laundering case against Anil Ambani-linked companies, including assets worth INR 3.39 billion pertaining directly to Reliance Infrastructure.
Over 4 million shares of the company exchanged hands on the National Stock Exchange before the trading was suspended. (Eshitva Prakash)
Equity Alert: Asian indices mixed, KOSPI emerges as top gainer
MUMBAI--1405 IST--Asian equity indices moved on a mixed note. South Korea's KOSPI emerged as the highest gaining index, rising over 2%. Hong Kong's Hang Seng index was the worst performer, down 0.7%, despite opening higher. Shares of Samsung and SK Hynix, the two biggest companies by market capitalisation, hit record highs.
The KOSPI crossed the 4200-point mark for the first time in 39 trading sessions, according to a report from The Chosen Daily. SK Hynix saw a pent-up buying pressure as the stock was designated as an investment warning stock from Dec. 11 due to its closing price on Dec. 10, jumping 200% compared with a year ago which led to trading restrictions being imposed. If the stock is labeled as an investment warning then investors need to pay 100% margin for purchases which makes margin trading and credit-based buying impossible with alternate exchange transactions also being blocked, the report said.
The Chinese military said it has dispatched air, navy and rocket troops to conduct joint millitary drill around Taiwan. The drill came after China expressed anger over the US arm sales to Taiwan and a speech made by Japanese Prime Minister Sanae Takaichi, where in the leader said Japan's military could get involved if China were to take action against Taiwan, according to a report from the Associated Press.
Spot silver prices rose to an all-time high of over $80 per ounce earlier in the day before pulling back sharply over 5% to $74.93 per ounce, according to a CNBC report. According to experts, the recent surge in silver is driven by speculative buying and lingering supply tightness. This rally refelcts an exhaustion of freely traded inventory which is amplifying price movement as demand increases, the report added.
Following were the levels of key Asian indices at 1405 IST:
|
Level |
Last |
Change in % |
| KOSPI |
4220.56 |
2.20 |
|
Nikkei 225 Day |
50526.92 |
(-)0.44 |
|
S P/ ASX 200 INDEX |
8725.70 |
(-)0.42 |
|
IDX Composite |
8620.67 |
0.97 |
|
TAIEX |
28768.14 |
0.74 |
|
Hang Seng Index |
25635.23 |
(-)0.71 |
|
CSI 300 Index |
4639.37 |
(-)0.38 |
(Akshat Saksena)
Equity Alert: Emkay initiates coverage on Lenskart with 'buy' recommendation
MUMBAI--1340 IST--Emkay Global Financial Services has initiated coverage on Lenskart Solutions with a 'buy' recommendation and a target price of INR 525. The brokerage sees a six-time revenue scale-up for the company in India over the next decade, at a compounded annual growth rate of around 20%.
Emkay expects Lenskart to see an average annual margin gain of around 150 basis points, as the business model shifts towards company-owned, company-operated stores and benefits from operating leverage over growth investments, it said in a research report. It further expects the annual margin gain to drive around 30% compounded annual growth of earnings before interest, tax, depreciation, and amortisation over the next decade.
From 2024–25 (Apr-Mar) to FY28, the company is likely to have a strong outperformance, with around 25% compounded annual growth of revenue and around 50% compounded annual growth in EBITDA, on the back of supply-chain efficiencies and operating leverage on head office costs, which accounts for around 25% of its sales, according to the Emkay report. Significant improvement in return on invested capital to around 23%, by gradually bridging the gap between the company's and store-level margins is also a key factor the brokerage watched for in its financial expectations.
At 1320 IST, shares of the company traded 0.3% higher at INR 452.20 on the National Stock Exchange. So far, over 1 million shares of the company have changed hands on the NSE, lower than nearly 4 million shares traded till the same time Friday. (Arundathi A R)
Equity Alert: Nifty Metal up 5% in Dec; Hind Copper, Hind Zinc top gainers
MUMBAI--1327 IST--The Nifty Metal index rose almost 2% Monday, hitting yet another record high, before retreating. The sectoral index was up for the seven straight sessions amid a rise in prices of precious metals. Technical analysts have reiterated a positive outlook on the sectoral index, owing to strong performance on the charts. The index has advanced 5% so far in December.
At 1312 IST, the index was marginally lower at 10797 points, weighed down by a near 3?ll in Hindustan Zinc after prices of silver dropped sharply on an intraday basis. The Nifty Metal index has risen in seven consecutive previous sessions and has advanced over 3% during this period. Among its constituents, Hindustan Copper has advanced 21% in the last seven days and almost 50% so far in December, aided by sharp gains on Monday after the January contract of copper rose to a fresh record high of INR 1,354.60 per kilogram on the Multi Commodity Exchange of India. Copper prices have been on the rise amid tight supplies, strong demand, and tariff-related stockpiling in the US. National Aluminium Co. and NMDC have advanced almost 4% in the last seven days.
Shares of silver producing companies such as Hindustan Zinc and its parent, Vedanta, have risen 29% and 14%, respectively, in the last 30 days amid a surge in silver prices. Meanwhile, on a 30-day basis, JSW Steel and Jindal Steel have underperformed their fellow constituents of the index, declining over 5% and 4%, respectively. (Eshitva Prakash)
Equity Alert: MMTC surges 11%; higher gold, silver prices boost sentiment
MUMBAI--1325 IST--Shares of MMTC rose around 11% to INR 71.25, their highest price in two months, supported by rising gold and silver prices, which have lifted sentiment for bullion-linked companies, amid a sharp spike in trading volumes. At 1320 IST, the stock was up nearly 7% at INR 68.50 on the National Stock Exchange and was the top gainer in the Nifty 500 index.
So far in the day, over 69 million shares of the company have changed hands on the NSE, higher than the around 54 million shares traded till the same time Friday. This was also way higher than the stock's three-month average volume of 3.6 million shares.
Shares of MMTC rose for the seventh straight session and have gained around 32% in the period. The sharp rise in stock comes amid a strong rally in gold and silver prices, which hit new all-time highs Monday as bullish sentiment remained intact across global markets. A weaker dollar index, expectation of further rate cuts by the US Federal Reserve in 2026, and rising geopolitical tensions boosted safe-haven assets like gold and silver and supported their prices, said Rahul Kalantri, vice president commodities at Mehta Equities said in a note.
MMTC is a government-owned trading company which is involved in the business of importing and exporting metals, minerals, bullion, fertilisers, coal and agricultural products. The company is one among the nominated agencies designated by the Ministry of Commerce and Industry and Reaserve Bank of India for the import of bullion into India. Higher bullion prices usually lead to an increase in the value of rupee and fees or commissions on imports and exports as well as domestic trading, media reports said.
The two research reports on the company available with Informist have a 'buy' recommendation on the stock with target prices of INR 90 and INR 108. (Arya S. Biju)
Equity Alert: Indices remain lower weighed by fall in heavyweight stocks
MUMBAI--1302 IST--Benchmark indices remained lower as losses in heavyweight stocks continued to add pressure Monday. Shares of heavyweights such as HDFC Bank and ICICI Bank were down 0.3% and 0.4%, respectively. Reliance Industries fell nearly 1%.
At 1246 IST, the Nifty 50 index was at 25957.70 points, down 84.60 points or 0.3% and the BSE Sensex index was at 84746.81 points, down 294.64 points or 0.4%. Tata Steel was the top gainer in the Nifty 50 index, up over 2% and rose to a one-month high of INR 174.13. Tata Consumer Products rose 2% to an intraday high of INR 1,200.90 after opening lower. The stock was among the top gainers in the index. Shares of Hindalco Industries fell nearly 1?ter hitting an all-time high of INR 887.45.
Vedanta fell 0.2?ter rising nearly 3% to an all-time high of INR 616. The stock rose after the company was declared as the successful bidder for the Depo Graphite-Vanadium Block, the Economic Times reported. Shares of its subsidaiary, Hindustan Zinc fell 2?ter hitting over an one-year high of INR 656.35.
Shipbuilding companies such as Shipping Corp. of India and Mazagon Dock Shipbuilders were up 0.7-4.0?ter the Ministry of Ports, Shipping and Waterways announced the operational guidelines for two major shipbuilding initiatives to boost domestic capacity.
Among other stocks, HFCL rose to an inraday high of INR 68.04 due to a surge in volumes traded. At 1301 IST, 132.89 million shares of the company traded on the NSE, over twice the number of shares traded for the entire previous session. The stock was up over 4% and among the top gainers in the Nifty 500 index. (Adhithya Aji)
Equity Alert: Emkay sees chemical cos' Q3 results to be muted on weak demand
MUMBAI--1235 IST--Emkay Global Financial Services sees the December quarter earnings of most chemical companies to be lacklustre owing to sluggish demand and weak exports. These companies continue to face pressure from Chinese oversupply amid speculation on the US-India trade deal, the brokerage said in its report. "Prolonged monsoons have not led to pent-up demand from end-user industries (except for agro) nor capacity ramp-up," the brokerage said. It expects a gradual margin recovery owing to cost optimisation efforts as volume and pricing remain steady.
Emkay sees the refrigerant gas manufacturers like SRF and Navin Fluorine International as the only standouts, as the R32 (refrigerant gas) prices are still on an uptrend, according to the report. Manufacturers in India are seeing R32 prices stabilising on the back of US tariff impact, and a marginal uptick in R134A prices in the US market.
The brokerage expects prices of bulk chemicals to continue impacting revenue growth and spreads for companies like Aarti Industries, Atul Ltd., Deepak Nitrite, and Gujarat Heavy Chemicals. Emkay observed that the prices have stabilised for liquid epoxy resin, soda ash (still depressed due to US dumping), phenol, and 2,4-D and expects the demand scenario to improve in 2026, leading to better prices, it said in the report. It sees a delay in the finalisation of the US-India trade deal.
At 1159 IST, shares of SRF were down marginally at INR 3,091.70 on the National Stock Exchange. So far, nearly 68,000 shares of the company have changed hands on the NSE, lower than over 271,000 shares traded till the same time Friday. Of the 17 brokerage recommendations available with Informist on the company, 12 have a 'buy' recommendation with an average target price of INR 3,445. Four have a 'hold' recommendation with an average target price of INR 2,855 and the remaining one has a 'sell' recommendation.
At 1212 IST, shares of Navine Fluorine International were up nearly 1% at INR 5,815. So far, nearly 40,000 shares of the company changed hands on the NSE, lower than over 62,000 shares traded around the same time Friday. Of the 16 brokerage recommendations available with Informist on the company, 12 have a 'buy' recommendation with an average target price of INR 5,583. Three have a 'hold' recommendation and the remaining one has a 'sell' recommendation on the stock. (Arundathi A R)
Equity Alert: Railway cos fall after recent rally on pre-Budget optimism
MUMBAI--1216 IST--Shares of most railway companies declined, after rising for several sessions on expectations of government support for railway infrastructure and operational efficiency before the Union Budget. Indian Railway Finance Corp. and Rail Vikas Nigam were the worst performing constituents of the Nifty 200 index, falling over 3% and 4%, respectively. These two stocks have advanced 9% and 15%, respectively, so far in December.
The recent rise in railway stocks highlights a recurring pattern of pre-Budget rally seen from one week up to five weeks before the Union Budget, said Divyam Mour, research analyst at SAMCO Securities. "Railway fares have been increased for the second time in the current year and only the third time in the last five years, marking a clear shift towards revenue rationalisation," Mour said in a note. Under the new railway rates, fares have been increased by 1 paise per kilometre for ordinary class journeys beyond 215 kilometres, and by 2 paise per km for non-air conditioned classes of mail and express trains as well as AC classes across all trains. Shares of Indian Railway Catering and Tourism Corp. and Railtel Corp. of India fell almost 1?ch.
Higher passenger and freight realisations improve the internal cash generation of Indian Railways, reducing dependence on budgetary support while simultaneously enabling higher capital expenditure, according to the analyst. The analyst added that the win ratio for railway companies also improves materially as the time window expands, signalling that this is a repeating seasonal phenomenon rather than a one-off event, which is why market participants have increasingly started pricing in railway-focused announcements ahead of the budget.
The decline in railway stocks comes after The Financial Express reported Saturday, quoting an official, that the budgetary support for Indian Railways' capital expenditure is likely to witness modest growth in 2026–27 (Apr-Mar) to INR 2.75 trillion, up nearly 4% from the Budget Estimate for FY26. Shares of railway engineering companies were also lower, with RITES and Jupiter Wagons falling around 3?ch. (Eshitva Prakash)
Equity Alert: HFCL rises 11% to intraday high levels on surge in volumes
MUMBAI--1156 IST--Shares of HFCL rose nearly 11% to an intraday high of INR 68.04 due to a surge in volumes traded. At 1156 IST, 122.84 million shares of the company exchanged hands on the bourse so far during the session. This is over twice the number of shares traded for the entirety of the previous session, nearly nine times its one-year average volume and over 7% of its five-year average volume. At 1156 IST, shares of the company traded over 6% higher at INR 65.34 on the National Stock Exchange.
The shares of the company snapped a two-day losing streak during which it shed over 7% of its value. The stock hit a low of INR 60.72 in the previous session, which was the last time the stock saw its value lower than in April 2023. On a yearly basis, the stock has lost nearly 43% in the last 52 weeks, and has shed nearly 26% of its value in the last 180 days. (Akshat Saksena)
Equity Alert: Indices fall after opening higher; Nifty 50 below 26000 mark
MUMBAI--1152 IST--Benchmark indices fell after opening higher with the Nifty 50 falling below 26000 points. The fall in financial services stocks put pressure on the Nifty 50 index, along with heavyweight stocks such as HDFC Bank, ICICI Bank and Reliance Industries. Shares of Reliance Industries fell nearly 1%, HDFC Bank was down 0.2%, and ICICI Bank slipped 0.4%.
At 1148 IST, the Nifty 50 index was at 25985.95 points, down 56.35 points, or 0.2% and the BSE Sensex was at 84820.29 points, down 221.16 points, or 0.3%. Shares of financial services companies such as Bajaj Finance, Shriram Finance, Jio Financial Services, and Bajaj Finserv were down nearly 1?ch in the Nifty 50 index.
Most defence stocks were in the green. Shares of Hindustan Aeronautics, Bharat Electronics, and Bharat Dynamics were up 1-2%. The Nifty India Defence was up nearly 1%. The stocks rose ahead of a key meeting of the Defence Acquisition Council in which the council is set to take up proposals to acquire weapon systems worth INR 800 billion, CNBC-TV 18 reported. The Defence Procurement Manual 2025, emphasises the participation of private industry, micro, small and medium enterprises as well as public sector undertakings, the report said.
Shares of Hindustan Copper rose 15% to hit an all-time high of INR 545.95 and were the top gainers in the Nifty 500 index. The stock rose after copper futures on the Multi Commodity Exchange of India hit a fresh record high on Monday, tracking gains in prices on the London Metal Exchange. Hindustan Zinc rose 3% to a one-year high of INR 656.35 after futures contract of silver on MCX hit fresh record highs. The stock was up for the fifth consecutive session and gained over 11% during the period. (Adhithya Aji)
Equity Alert: Axis Bank NIM to bottom out Jan-Mar or Apr-Jun - Motilal Oswal
MUMBAI--1145 IST--Axis Bank's earnings may improve gradually in the upcoming quarters as its asset-quality stress normalises and margin recovers in 2026 (Apr-Mar), Motilal Oswal Financial Services said in a research report. The bank's management, in an interaction with the brokerage, said Axis Bank's net interest margins will bottom out in Jan-Mar or Apr-Jun. The brokerage expects the bank's return on assets to improve on the back of loan growth accelerating to the mid-teens, lower credit costs, and a recovery in the net interest margin. However, it expects Axis Bank to face further margin pressure and technical slippages, along with negative impacts from agriculture-related accounts in the December quarter, which may affect the bank's operating performance. The brokerage maintained its 'neutral' rating on the stock with a target price of INR 1,300.
At 1144 IST, shares of Axis Bank traded almost flat at INR 1,227.70 on the National Stock Exchange.
The bank's net interest margins contracted by seven basis points quarter-on-quarter in September to 3.73%. The bank's management told the brokerage that its margins will continue to reflect drag from repo-linked repricing and a moderation in unsecured retail loans. Its management expects margins to bottom out in the March quarter or in the June quarter, aided by the 25 basis point repo rate cut. However, a higher liquidity coverage ratio outflow could further exert pressure on margins, according to the brokerage. The company expects to restore its net interest margins to 3.8% within 15 to 18 months from the date of the last repo rate cut on the back of favourable factors such as cash reserve ratio cuts, asset mix improvement, and residual deposit repricing.
The bank's management expects technical slippages to recur in the December quarter, largely driven by seasonality in agricultural kisan credit card and overdraft accounts. However, these slippages are likely to be lower than the ones seen in the June quarter. The bank's core retail unsecured portfolio has stabilised, with credit card metrics improving and personal loans holding steady, while recoveries and upgrades are trending positively, the brokerage said. The recent standard provisioning for agricultural loans was largely technical, and the brokerage expects it to unwind over time without translating into material economic losses. The bank's capital allocation remains disciplined, with retained earnings fully reinvested into the balance sheet and a focus on maintaining around 4?pital buffer over the regulatory minimum, the brokerage said.
Axis Bank's loan growth is rebounding, with 12% on year and a 5% on quarter growth in the September quarter, supported by a pickup in wholesale banking and improving traction in granular segments. The company is shifting towards a higher risk-adjusted return portfolio with its small business banking, small and medium-sized enterprises, and mid-corporate loan book growing to around INR 2.66 trillion, which now constitutes around 24% of the bank's total advances, up 7.4% in four years. Additionally, the retail loan growth had slowed after the unsecured cycle correction, with vehicle loans and mortgages remaining soft, the brokerage said. However, disbursements have begun to improve, which should gradually translate into stronger asset under management growth.
The bank's deposits in the September quarter grew 11% on year and its quarterly average balances rose 10%, indicating "steady yet suboptimal" traction in a fiercely competitive environment," the brokerage said. The banking industry is struggling to attract low-cost current account savings accounts, which is why incremental flows have shifted towards wholesale deposits, pressuring funding consistency and mix, the brokerage said. Despite this, early repricing actions aided Axis Bank as the cost of funds declined 24 bps on quarter and 30 bps on year, while current account savings accounts held stable at around 38–40% in the September quarter. The brokerage said Axis Bank's liquidity is "comfortable", with an average liquidity coverage ratio of around 119%, and the bank has shifted its attention from loan-to-deposit ratio optimisation to liquidity coverage ratio management. The brokerage expects ongoing liability initiatives to gradually narrow the bank's funding gap against its peers. (Eshitva Prakash)
Equity Alert: Most shipbuilding cos up after govt's INR 447-billion push
MUMBAI--1135 IST--Shares of most shipbuilding companies rose Monday after the Ministry of Ports, Shipping and Waterways Saturday announced the operational guidelines for two major shipbuilding initiatives to boost domestic shipbuilding capacity. At 1128 IST, shares of Cochin Shipyard, Mazagon Dock Shipbuilders, and Garden Reach Shipbuilders & Engineers were up 0.3-1.7%. Soon after opening, shares of Swan Defence and Heavy Industries hit the 5% upper circuit at INR 1,388.20, marking a fresh record high.
The Ministry of Ports on Saturday notified the operational guidelines for the Shipbuilding Financial Assistance Scheme and the Shipbuilding Development Scheme with a total outlay of INR 447.00 billion. Under the Shipbuilding Financial Assistance Scheme, the government will provide financial assistance ranging from 15% to 25% per vessel, depending on the vessel category. The scheme with a total corpus of INR 247.36 billion introduces graded support for small normal, large normal and specialised vessels, with stage-wise disbursement linked to defined milestones and backed by security instruments, the minstry said in a press release.
The scheme also provides for the establishment of the National Shipbuilding Mission for planning and execution of shipbuilding initiatives, and Shipbreaking Credit Note, under which ship owners scrapping vessels at Indian yards will receive a credit equivalent to 40% of the scrap value. Over the next 10 years, this scheme is expected to expected to support shipbuilding projects worth about INR 960 billion, the ministry said.
The Shipbuilding Development Scheme provides for the development of greenfield shipbuilding clusters, expansion and modernisation of existing brownfield shipyards, and the establishment of an India Ship Technology Centre under the Indian Maritime University to support research, design, innovation and skills development. Umder this, greenfield shipbuilding clusters will receive 100?pital support for common maritime and internal infrastructure through a 50:50 Centre–state special purpose vehicle while existing shipyards will receive 25?pital assistance for brownfield expansion. The scheme has a budgetary outlay of INR 199.89 billion. (Arya S. Biju)
Equity Alert: Defence cos rise ahead of Defence Acquisition Council meeting
MUMBAI--1028 IST--Shares of defence companies rose Monday, with Nifty India Defence rising over 1% to an intra-day high of 7885.20 points. This comes ahead of the Defence Acquisition Council meeting later in the day. The council is expected to approve defence procurement proposals worth INR 800 billion during the meeting to be chaired by Defence Minister Rajnath Singh, according to a report from CNBC-TV18. A key proposal includes an integrated air defence system to protect the Delhi-National Capital Region, according to a report from ICICI Direct Research.
Other key proposals include the purchase of 850 loitering munitions for the Army, medium-range surface-to-air missile systems for the Navy, and large-scale induction of Astra Mk-2 air-to-air missiles for the Air Force, among others. The council is expected to discuss foreign-linked proposals such as leasing two MQ-9B Sea Guardian drones from the US, procuring of Meteor air-to-air missiles and Spice-1000 precision-guided munitions from Israel. The council will also discuss procuring six mid-air refueller aircraft with Israeli Aircraft Industries as the sole vendor, the brokerage said.
Bharat Electronics is expected to be one of the key beneficiaries for its air defence systems and radars, the brokerage said. Other beneficiaries include Bharat Dynamics for Astra Mk-2 and medium-range surface-to-air missile systems and Solar Industries for the development of Pinaka rockets and loitering munitions, according to the brokerage report. Shares of Bharat Electronics were trading 0.4% higher and those of Bharat Dynamics and Solar Industries were 1.7% and 0.3% higher, respectively.
Nifty India Defence was nearly 1% higher at 7831.95 points. Almost all of its constituents were upbarring Bharat Forge, Paras Defence and Space Technologies, Dynamatic Technologies, and Cyient DLM, which were down 0.1-0.7%. Mishra Dhatu Nigam was the highest gainer in the thematic index, up over 11%. (Akshat Saksena)
Equity Alert: Hind Copper up 15% on rising copper prices, gains 57% in Dec
MUMBAI--1010 IST--Shares of Hindustan Copper rose nearly 15% Monday to yet another record high at INR 545.95. The stock has been up for seven straight sessions amid a surge in copper prices. The January contract of copper rose to a fresh record high of INR 1,354.60 per kilogram on the Multi Commodity Exchange of India. Copper prices have been on the rise amid tight supplies and strong demand growth and tariff-related stockpiling in the US, according to a report by ICICI Securities. Growing speculation over output reduction from China's top smelters in 2026 also pushed prices to hit record high, it said.
At 0931 IST, shares of the company were off the day's highs, but still traded nearly 6% higher at INR 503.55 on the National Stock Exchange. The stock has risen over 27% in the last seven days and added almost 57% in the month of December. More than 32 million shares of the company have changed hands so far in the opening minutes of trade on the bourse, double the number of shares traded till the same time Friday.
All the three brokerage recommendations available with Informist on the stock have a 'buy' rating ranging with their target price ranging from INR 352-INR 450. (Eshitva Prakash)
Equity Alert: Indices open higher led by gains in metal, bank stocks
MUMBAI--0957 IST--Benchmark equity indices opened slightly higher, supported by gains in metal and financial services stocks. Gains in index heavyweight HDFC Bank, as well as in Tata Steel, Hindalco Industries, and Infosys, supported the Nifty 50 index.
At 0938 IST, the Nifty 50 index was at 26073.45 points, up 31.15 points or 0.1%, and the BSE Sensex was at 85124.30 points, up 82.85 points or 0.1%. Tata Steel was the top gainer in the Nifty 50 index, up over 2%, followed by Eternal, which was up over 1%. Hindalco Industries was up nearly 1%. Meanwhile, Adani Ports and Special Economic Zone and Power Grid Corp. of India were the worst hit in the index, down around 1?ch.
Shares of metal companies Tata Steel and Hindalco Industries rose after the March silver contract on MCX hit a fresh record high, tracking COMEX prices. Shares of Steel Authority Of India were the top gainer in the Nifty 200 index, up over 4%.
Among sectoral indices, the Nifty Metal was the top gainer, up 1.3%. The sectoral index was up for the eighth consecutive session and hit an all-time high of 10960.15 points. Over the last seven days, the index has gained nearly 3%.
Among other stocks, Reliance Infrastructure hit the lower circuit at INR 164.54 and was down 5% in the Nifty 500 index. Indian Railway Finance Corp. was the worst hit in the Nifty 200 index, down nearly 2%. (Adhithya Aji)
Equity Alert: Elara Sec downgrades Coforge to 'reduce', cuts target price 19%
MUMBAI--0955 IST--Brokerage Elara Securities (India) has downgraded Coforge to 'reduce' from 'accumulate' and reduced its target price by around 19% to INR 1,720. The brokerage sees Coforge's acquisition of US-based artificial intelligence software engineering firm Encora at an enterprise value of $2.35 billion as expensive given the latter's single-digit revenue growth over the past two years, lower than that of Coforge.
"Despite lower growth, Coforge is acquiring Encora at 3.9X EV/sales (3.9 times enterprise value to sales) and around 21x EV/EBITDA (21 times enterprise value to earnings before interest, tax, depreciation, and amortisation), in line with Coforge's multiples, which appears expensive," Elara Securities said in a report Monday.
Coforge in an exchange filing Friday announced the acquisition of Encora from Advent International, Warburg Pincus, and other minority shareholders in an all-stock transaction. The $2.35 billion enterprise value includes equity consideration of $1.89 billion to be paid through a preferential allotment of 93.8 million shares in Coforge to Encora Holdco and AI Altius Parent.
Further, Elara Securities has reduced the estimate for Coforge's earnings for 2026–27 (Apr-Mar) and FY28 by 7% and 8%, respectively. "Organically also, some costs for Coforge witnessed an uptick in recent quarters, which may strain its margins, going ahead," the brokerage said. The stock is already down 10% in a week, likely reflecting these concerns, Elara said, adding that the key upside is higher-than-expected growth and earnings.
At 0950 IST, shares of Coforge were up around 2% at INR 1,703.40 on the National Stock Exchange. So far, over 3 million shares of the company changed hands on the NSE, compared to the 515,354 shares traded till the same time Friday. (Arya S. Biju)
Equity Alert: Brokerages largely positive on Coforge's stake buy in Encora
MUMBAI--0902 IST--Brokerages remain largely positive on Coforge's acquisition of US-based artificial intelligence software engineering firm Encora. The acquisition is expected to accelerate Coforge's shift toward higher-value, artificial intelligence-led engineering services, according to brokerage reports. However, some brokerages see near-term challenges due to execution risks, funding structure, and further potential equity dilution.
Coforge Friday announced the acquisition of 100% stake in Encora from Advent International, Warburg Pincus, and other minority shareholders in an all-stock transaction, according to an exchange filing. The transaction values Encora at an enterprise value of $2.35 billion, which includes equity consideration of $1.89 billion to be paid through a preferential allotment of 93.8 million shares in Coforge to Encora Holdco and AI Altius Parent. The management has guided the acquisition to be earnings per share-accretive in 2026-27 (Apr-Mar).
Coforge expects the combined business to operate at an earnings before interest margin of 14%. "The new US$2.5Bn ($2.5 billion) firm, with a US$2Bn ($2 billion) enterprise core of AI-led Engineering, Data and Cloud services, will set the benchmark on making the promise of AI real for enterprises," Coforge's Chief Executive Officer and Executive Director Sudhir Singh said in a statement. It expects the acquisition to immediately scale its 'hi-tech' and healthcare verticals, expand its nearshore delivery capabilities in Latin America, and increase its client footprint in the western and midwestern regions of the US.
"With USD600mn ($600 million) revenue (30% of Coforge), Encora is Coforge's biggest and boldest bet yet. We like the acquisition and transaction structure and see Encora further accelerating Coforge's growth," Nuvama Institutional Equities said in a report on Saturday. This will enhance the near-shore delivery through Encora's around 3,100 Latin America workforce serving US clients, Nuvama said. Further, a stronger presence in the US West and Midwest is expected to drive around a 50% jump in Coforge's North America revenue and the number of $10 million-plus scalable client relationships is expected to rise to 45, the brokerage said.
"While we acknowledge the strategic rationale, we view the acquisition valuation as demanding, given Encora's high single-digit organic revenue growth over the past two years," Emkay Global said in a report. While the brokerage sees near-term overhang on the stock due to execution risks and further potential equity dilution, the company's execution track record provides some comfort, it said. "Near-term earnings are likely to be diluted on an as-is basis," brokerage Morgan Stanley was cited as saying in an NDTV Profit report. Any material weakness in the stock could offer a long-term accumulation opportunity, Morgan Stanley said. Global brokerage Jefferies expects that the successful execution of the deal could lead to a valuation re-rating, NDTV Profit reported, citing the brokerage. (Arya S. Biju)
Equity Alert: Indices seen in range, volatile ahead of Nifty 50 F&O expiry
MUMBAI--0840 IST--Benchmark equity indices are likely to remain confined to a thin range on Monday due to lack of fresh triggers. Moreover, trading activity is expected to be low after a holiday-shortened week and ahead of the New Year, analysts said. The domestic market may also take cues from its global peers.
The depreciating rupee and continued outflows of foreign investments from Indian equities have been exerting pressure on the market. However, analysts expect volatility in the rupee to ease and the currency to settle at 88.0-88.5 per dollar in the coming sessions. Corporate earnings for the December quarter are seen driving the equity market and bringing back foreign investments, according to analysts.
The GIFT Nifty's December contract suggests a slow start for the market. At 0825 IST, the contract was just 18 points below its previous close at 26089 points and a mere 47 points over the Nifty 50's close on Friday. The January contract of the GIFT Nifty was 9 points lower from previous close at 26265.50 points at 0825 IST.
The Nifty 50 ended at 26042.30 points, down 99.80 points or 0.4% on Friday. Support for the Nifty 50 is pegged at 25950 points and resistance at 26150-26230 points on Monday, Vipin Kumaar, derivatives and technical analyst at Globe Capital Market, said. So far, expiry of the December contract is seen at 25850-26230 points, he said.
US indices closed marginally lower Friday, while Asian indices were mixed in early trade on Monday. Indices in Japan were down after the summary points of Bank of Japan's latest monetary policy meeting hinted at further rate hikes going ahead. At the December meeting, the central bank raised the key interest rate by 25 basis points on Friday to a three-decade high, as widely expected. (Simran Rede)
Equity Alert: Asian indices broadly higher, Nikkei snaps two-day winning run
MUMBAI--0824 IST--Asian equity indices traded broadly higher on Monday. Japan's Nikkei index fell, snapping a two-day wining streak. The index was down nearly 0.4%. South Korea's Kospi index rose due to optimism around semiconductor stocks.
Shares of Samsung Electronics Co. Ltd. rose over 1% on the South Korean index, with SK Hynix Inc. rising nearly 5%. Shares of SK Hynix rose after the Korea Exchange lifted its warning on the stock for 10 trading sessions from Dec. 11 following sharp gains, according to a report by Yonhap news agency. Taiwanese index TAIEX rose 0.8% to 28774.43 points on Monday, reaching its yearly high of 28788.64 points. The index has been trading higher for six consecutive sessions during which it has gained nearly 5%. The Chinese CSI 300 index was up for the seventh consecutive session, gaining nearly 3% during the period.
Following were the levels of key Asian indices at 0824 IST:
|
Level |
Last |
Change in % |
| IDX Composite |
8589.996 |
0.61 |
|
S P/ ASX 200 INDEX |
8756.30 |
(-)0.07 |
|
TAIEX |
28774.43 |
0.76 |
|
SSE Composite Index |
3978.57 |
0.38 |
|
Nikkei 225 Day |
50550.17 |
(-)0.39 |
|
KOSPI |
4186.74 |
1.38 |
|
CSI 300 Index |
4662.23 |
0.11 |
(Akshat Saksena)
Equity Alert: US indices close tad lower Fri; S&P 500 hits record high
MUMBAI--0732 IST--US equity indices ended slightly lower Friday, with the S&P 500 index closing lower after hitting a new all-time high of 6945.770 points. The index snapped a five-day winning streak in which it gained over 3%. The indices are seeing what is known as a Santa Claus rally, in which indices see a surge between the last five trading days of a year and the first two days of the new year.
"People are taking profits here and there, or buying on lows, but there's not a lot of information. You're not getting corporate profit results. You're not getting a lot of economic data, so it's probably just more technicals and positioning heading into here," Tom Hainlin, national investment strategist at US Bank Asset Management, was cited as saying in a report by CNBC. According to Hainlin, the broadening seen by the markets was a trade in play for the new year, with the record high seen by the S&P 500 index due to a push in cyclical areas, financials and industrials, rather than technology stocks.
"We had a very strong five-day rally, so in a way we're just simply catching our breath today after the holiday," Ryan Detrick, chief market strategist at Carson Group in Omaha, was cited as saying in a report by Reuters. "There are still a few days left for the Santa Claus rally, so there is still a more upward bias going forward," Detrick said.
The three major indices are on track to record double-digit percentage gains for the year, led by the NASDAQ, the report said. This, Detrick said, was a reminder that volatility was the price needed to be paid for the solid gains seen in the last three years.
Following are the closing levels of US indices Friday:
|
Index |
Level |
Change in % |
|
S&P 500 |
6929.94 |
(-)0.03 |
|
NASDAQ Composite |
23593.097 |
(-)0.09 |
|
Dow Jones Industrial Average |
48710.97 |
(-)0.04 |
(Akshat Saksena)
US$1 = INR 89.98
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Tanima Banerjee
All prices from National Stock Exchange, unless otherwise specified.
All percentage changes for share prices are rounded off to the nearest whole number; percentage changes for index values are rounded off to one decimal place.
All times are Indian Standard Time.
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