Welcome to Aftermarket Report, a newsletter where we do a quick daily wrap-up of what happened in the markets—both in India and globally.
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Market Overview
The Nifty opened flat at 23,674.75, reaching the day’s high of 23,689.50 at the opening before starting to decline. It remained within the range of 23,600 to 23,650 for an hour, then dropped sharply by 100 points from the 23,650 level within minutes.
The index hovered between 23,540 and 23,570 for the next 90 minutes before attempting to recover, testing the 23,610 level. However, it failed to break through and dropped again, breaking the previous day’s low to hit a fresh low of 23,503 in the final hour. Nifty ultimately closed at 23,526.50, down 0.68%.
After market hours, TCS kickstarted the earnings season with a mixed set of results. Revenues came in slightly below estimates, profits were in line with expectations, and the company reported strong deal wins along with a positive management outlook. These results could influence market movements today as investors react to TCS’s performance and prepare for upcoming earnings reports.
Broader Market Performance:
In line with the headline indices, the broader markets faced a tough day, with 766 stocks advancing, 2,037 declining, and 90 remaining unchanged.
Sectoral Performance:
The sectoral performance showed a negative trend, with all sectors ending in the red except FMCG. Nifty FMCG was the only gainer, rising 0.93%. On the other hand, Nifty Realty and Nifty Energy were the biggest losers, falling by 2.73% and 2.03%, respectively.
Note: The above numbers for Commodity futures were taken around 4 pm.
Change in OI for the day
The following is the change in OI for Nifty contracts expiring on 16th January:
- The maximum Call Open Interest (OI) is observed at 24,000, followed by 23,800. Meanwhile, the maximum Put Open Interest (OI) is at 23,500, followed by 23,600.
- Immediate support is identified in the 23,500–23,300 range, while resistance is expected between 23,800 and 24,000.
Note: OI is subject to multiple interpretations but generally, in a falling market if there is an increase in the call OI, it indicates resistance, and in a rising market, if there is an increase in the put OI, it indicates support.
Source: Sensibull
Tijori is an investment research platform, and they have constructed niche indices for various themes and sub-sectors. They help you get a sense of the market performance of narrow slices of the market. You can also track the Promoter buying and other interesting stuff like Capex activity by the companies in the Tijori App’s idea dashboard.
What’s happening in India
Borosil Renewables Limited has announced a 50% increase in its solar glass manufacturing capacity, from 1,000 tons per day to 1,500 tons per day. This expansion follows the introduction of a “Reference Price” to curb cheap imports, supporting domestic production and the supply chain for PV module manufacturers. Dive deeper
Indian companies raised $2.8 billion through external commercial borrowings in November 2024, with 82 firms seeking $1.4 billion under the automatic route. Notably, Reliance Industries, Bajaj Finance, InterGlobe Aviation, and REC sought a combined $1.4 billion through the approval route, with Reliance requesting $1 billion. Dive deeper
SRF Ltd. and Navin surged by approximately 13.7% and 9.5%, respectively, after a leading U.S. distributor of refrigerant gases with substantial quotas raised concerns about R32 and R125. The distributor cited global supply constraints that are posing significant challenges for the HVAC (Heating, Ventilation, and Air Conditioning) industry.
Persistent Systems has launched Pi-OmniKG, an AI-driven knowledge graph solution developed with Google Cloud technology, designed to accelerate biomedical research. The solution streamlines data mining, integrates diverse data types, and enhances research efficiency by enabling faster evidence-based decisions. Dive deeper
IHCL set a new growth record in 2024 with 85 signings and 40 hotel openings, expanding its portfolio to 360 hotels. The growth is driven by the Taj brand and strategic acquisitions like Tree of Life, with a focus on capital-light signings under the “Accelerate 2030” strategy. Dive deeper
Swiggy Instamart expands to 76 cities and will launch a standalone app. This strategic move enhances accessibility and user adoption beyond 100M+ users. Dive deeper
Tata Motors Group reported global wholesales of 341,791 units in Q3 FY25, a 1% increase from Q3 FY24. The commercial vehicle and Tata Daewoo segment saw a slight decline of 1%, while passenger vehicle wholesales, including electric vehicles, grew by 1%. Jaguar Land Rover wholesales rose by 3%, with Land Rover contributing the majority of sales. Dive deeper
CCL Products (India) Limited appointed Mr. Chaithanya Agasthyaraju as CFO effective February 07, 2025, succeeding Mr. V. Lakshmi Narayana, who resigned. Mr. Agasthyaraju has 19 years of experience in finance, having previously worked at Griffith Foods and OLA Electric. Dive deeper
Puravankara Limited has acquired a 3.63-acre land parcel in Vajrahalli, Kanakapura Road, Bengaluru, with a potential GDV of over Rs 700 crore. The land, offering 5.42 lakh sq ft for premium residential development, benefits from strong connectivity and infrastructure. Dive deeper
Adani Ports and Special Economic Zone (APSEZ) ranked in the Top 10 global transportation companies in the 2024 S&P Global Corporate Sustainability Assessment, retaining its #1 position in the Environment dimension. Dive deeper
Novelis Inc., a subsidiary of Hindalco Industries, has raised $750 million through a bond offering, increasing the amount by $250 million. The proceeds will be used to repay debt and support general corporate purposes, with the closing scheduled for January 13, 2025. Dive deeper
GMR Airports Limited has agreed to acquire up to 50% of Bird Delhi General Aviation Services Pvt. Ltd. (BDGASPL) for approximately Rs. 15.02 crore. This acquisition strengthens GMR’s presence in airport-related businesses. Dive deeper
LIC’s Bima Sakhi Yojana reached 50,000 registrations within a month of its launch, with 27,695 Bima Sakhis receiving appointment letters and 14,583 actively selling policies. LIC aims to recruit 2 lakh Bima Sakhis over the next three years, providing a monthly stipend and commission-based earnings. Dive deeper
GMR Group has secured a ₹6,300 crore investment from the Abu Dhabi Investment Authority (ADIA), which will help reduce debt for its promoter entity, GMR Enterprises Pvt Ltd. This funding will also help lower share pledges and refinancing risks. Dive deeper
Bisleri International reported an 82.8% profit surge to Rs 316.95 crore in FY24, with consolidated revenue increasing by 18.32% to Rs 2,814.04 crore. The growth was driven by higher operations revenue and other income, marking the highest revenue in the last five years for the company. Dive deeper
SENCO Gold’s QIP raised Rs.459 Cr.; highest sales achieved in a month and quarter, with showrooms expanding. New subsidiary ‘Sennes’ launched. Dive deeper
What’s happening globally
WTI crude oil futures dropped below $73 per barrel, following a 1 million barrel decline in US crude stocks. Supply increases in gasoline and distillates, along with a stronger US dollar and weak demand in China, weighed on prices, though concerns in Russia and cold weather in the US offered some support. Dive deeper
The People’s Bank of China (PBoC) will auction CNY 60 billion in six-month bills on January 15 to reduce yuan liquidity and raise funding costs, aiming to counter short-selling pressures. This move comes amid concerns over China’s economy and US tariffs, with the PBoC stabilizing the yuan through daily reference rates. Dive deeper
Minutes from the December 2024 Federal Open Market Committee (FOMC) meeting showed that most officials saw rising inflation risks and acknowledged delays in the disinflation process. The Fed cut rates by 25bps in December and signalled two further 50bps cuts in 2025. Dive deeper
The yield on UK 10-year gilts rose to 4.8%, the highest since 2008, while the 30-year yield reached 5.38%. This increase reflects concerns over the UK’s budget, which included significant borrowing and spending, along with rising inflation and wage growth. Dive deeper
Germany’s industrial production in November 2024 rose by 1.5%, driven by sectors like energy, construction, and transport equipment. However, production fell by 1.1% on a three-month basis, indicating a brief slowdown after the increase. Dive deeper
Exports increased by 2.1% in November, recovering from previous declines, with higher sales to the US, Russia, and the UK. Despite this, exports were down 1.4% for the first eleven months of 2024 compared to the previous year. Dive deeper
Egypt’s annual urban inflation eased to 24.1% in December 2024, down from 25.5% in November, with slower price increases in food and non-alcoholic beverages. Despite this, inflation remains above the central bank’s target, and consumer prices rose 0.2% month-on-month. Dive deeper
Taiwan’s exports rose 9.2% year-on-year to USD 37.5 billion in December 2024, driven by growth in electronics, machinery, and base metals. Key markets such as ASEAN, South Korea, and the USA saw strong demand, while exports to Japan and Europe declined. Total exports for 2024 reached USD 475.1 billion, up 9.9% from the previous year. Dive deeper
China’s producer prices fell 2.3% YoY in December, a slight improvement from November’s 2.5% decline. This was the softest deflation since August, with continued drops in production materials and consumer goods. Dive deeper
U.S. natural gas futures rose over 6% to above $3.6 per million British thermal units (MMBtu) due to supply disruptions and strong global demand. Utilities withdrew 40 billion cubic feet of gas in the week ending January 3, reducing stockpiles to 3,373 billion cubic feet (BCF). Cold weather and higher LNG exports are tightening supply, pushing prices up. Dive deeper
Quarterly results
In this section, we’ll dive into all the key highlights from today’s intriguing results, covering the most impactful performances and standout moments. The numbers are comparable on a year-on-year (YoY) basis.
Tata Consultancy Services Ltd. (-1.52%)
What Happened:
- Revenue was up by 5.6% at ₹63,973 crore, up from ₹60,583 crore YoY.
- Operating Margin at 24.5%; a decline of 50 bps YoY*, sequential improvement of 40 bps
- Net Profit at ₹12,380 crore, +12% YoY, up from ₹11,058 crore YoY
Why?
- The strong Total Contract Value (TCV) performance was well-balanced across industries, geographies, and service lines, ensuring good visibility for future growth.
- BFSI (Banking, Financial Services, and Insurance) and CBG (Consumer Business Group) segments have returned to growth, providing positive momentum for the business.
- Deft handling of currency fluctuations helped mitigate potential risks and added to the financial stability.
Tata Elxsi Ltd. (-1.30%)
What Happened:
- Q3 revenue rose 2.73% to ₹939.17 crore, up from ₹914.23 crore YoY.
- Operating EBITDA for Q3 was ₹246.6 crore, with an EBITDA margin of 26.3%.
- PAT was down 3.6% to ₹199.0 crore with a margin of 20.3%, down from ₹206 crore in Q3 FY2023.
Why?
- Strategic focus on Japan, emerging markets, and the India opportunity yielded positive results, with India revenue growing 21.9% YoY, and Japan and emerging markets seeing a 66.8% YoY increase.
- Tata Elxsi is launching the AVENIR SDV software suite at CES 2025. This suite, powered by Qualcomm, offers a compelling solution for global OEMs to accelerate their software-defined vehicle and future mobility strategies.
- Tata Elxsi has announced the establishment of an Offshore Development Center for Suzuki, Japan. This highlights the company’s role in supporting innovation and accelerating technology development in connected, autonomous, and electric vehicles.
Management chatter
In this section, we pick out interesting comments made by the management of major companies and policymakers of the Indian and Global Economy.
K Krithivasan, Chief Executive Officer and Managing Director, TCS
“We are pleased with the excellent TCV performance in Q3 which was well-rounded across industries, geographies, and service lines lending good visibility to long-term growth. BFSI and CBG returning to growth, continued stellar run of Regional Markets, and early signs of revival in discretionary spending in some verticals give us confidence for the future. Our continuing investments in upskilling, AI/Gen AI Innovations, and partnerships set us up to capture the promising opportunities ahead.” - Link
Salil Parekh, CEO of Infosys
“India is a huge opportunity… The growth that we are seeing for different types of work across Indian environment is massive, and we are very much part of making sure that we engage both with private sector companies and with government agencies where we can support, for example, the government’s vision on digital India…” - Link
Ravi Kumar, CEO of Cognizant
“ A significant part of the future is going to come from global capability centres getting set in India. And why is that an important thing? Technology is so core to businesses.” - Link
Calendars
In the coming days, we have the following major events and corporate actions:
That’s it from us. Do let us know your feedback in the comments and share it with your friends to spread the word.