Cholamandalam sees 28.04% net profit increase, Adani Power sees significant profit & revenue surge

Indian markets:

• The Nifty 50 and the Sensex saw a renewed decline on Thursday, January 25, driven by losses in select banking and IT giants. 
• Dampened expectations of a prompt rate cut by the US Fed prompted investors to cash in profits amid underwhelming December quarter earnings. 
• Moreover, rising bond yields are enticing foreign portfolio investors (FPIs) away from Indian equities, further fueling market volatility.
• Nifty IT led the sectoral indices in losses, dropping 1.60%, followed by Nifty Pharma (down 1.30%), Healthcare (down 1.26%), and FMCG (down 1.15%).
• Nifty Bank closed with a 0.48% loss, while Nifty Realty posted a modest gain of 0.67%.

Global Markets

• China and Hong Kong stocks led the Asia-Pacific markets higher on Thursday as the People’s Bank of China announced a reduction in reserve requirements for the country’s lenders. This move also boosted property stocks, contributing to increased liquidity for developers.
• In Europe, the pan-European Stoxx 600 showed a 0.3% decline in late-morning trading, with bank stocks down 0.6% and chemicals up 0.5%.
• Following its monetary policy meeting on Thursday, the central bank is anticipated to maintain interest rates at their current record high.
• The U.S. stock market’s continuous rise to all-time highs has drawn attention to its significant valuation premium over global equities, prompting some investors to explore opportunities abroad for potential higher returns.
• The S&P 500, which led most key regional indexes in 2023 with a 24% gain, continues its positive momentum in 2024, up over 2% so far and surpassing many rivals after achieving its first record high in over two years last week.

Stocks in Spotlight

• Cholamandalam Investment and Finance Company posted a 28.04% increase in standalone net profit at Rs 876.16 crore for Q3 FY 2023-24. Sequentially, net profit rose by 14.9% due to improved asset quality and higher disbursements. Gross non-performing assets (NPA) reduced to 3.92%, down from 4.07% in the previous quarter, while net NPA improved to 2.56% from 2.59%.
• In Q3 2023-24, Vedanta’s net profit fell 18% to Rs 2,013 crore due to higher finance and raw material costs amid slow sales. This contrasts with a profit of Rs 2,464 crore in the same quarter last year and a loss of Rs 1,783 crore in the previous quarter. The dip in the previous quarter was influenced by exceptional expenses related to changes in tax rates. Despite a 3.8% increase in revenue from operations to Rs 34,968 crore YoY, there was a nine percent sequential decline.
• Adani Power Ltd posted a substantial increase in consolidated net profit at Rs 2,738 crore for the quarter ending December 31, 2023, marking a significant jump from the Rs 9 crore reported in the same period last year. The company’s revenue also witnessed a robust growth of 67%, reaching Rs 12,991 crore in Q3FY24 compared to Rs 7,764 crore in Q3FY23.

News from the IPO world🌐

• Nova Agritech IPO: Issue subscribed over 100 times so far on last day
• BLS E-Services IPO to open on January 30.
• Swiggy to let go of 400 employees in Round 2 of layoffs ahead of IPO this year

Day Leader Board

Sectoral Performance

Advance Decline Ratio

Numbers to track

Please visit www.fisdom.com for a standard disclaimer.