Aurobindo Pharma Share Price Gains Nearly 3%: Here’s Why the Stock is in Focus Today

Aurobindo Pharma share price rose nearly 3% to ₹1,222.9 on the BSE after its subsidiary, Eugia Pharma Specialities, received final approval from the US FDA to manufacture and sell Dasatinib tablets in the US. By 12:22 PM, the stock was trading 2.65% higher at ₹1,219.6, while the Sensex was up 0.20%.

What Is Dasatinib and Why It Matters

Dasatinib is used to treat specific types of blood cancers like chronic myeloid leukemia (CML) and acute lymphoblastic leukemia (ALL) in adults, especially in patients resistant or intolerant to earlier treatments like imatinib. The approval is for multiple strengths: 20 mg, 50 mg, 70 mg, 80 mg, 100 mg, and 140 mg.

Read More, Bank Nifty Retreats from Highs, Drops 423 Points Amid HDFC Bank Profit-Taking on Apr 23.  

Big Market Opportunity

The approved product is bioequivalent to Sprycel from Bristol-Myers Squibb. It has a large market size of $1.8 billion (as of February 2025), and Eugia plans to launch it in Q1FY26. This approval marks Eugia Pharma’s 181st ANDA approval, reinforcing its strong presence in oncology and speciality drugs.

About Aurobindo Pharma

Aurobindo Pharma is a global pharma company headquartered in Hyderabad, India. It produces a wide range of generic and branded drugs along with active pharmaceutical ingredients (APIs). Operating in over 150 countries, the company runs more than 30 manufacturing and packaging facilities. Its diverse product portfolio covers CNS, anti-retroviral, cardiovascular, antibiotics, gastrointestinal, anti-diabetics, and anti-allergy drugs, all backed by a solid R&D team.

This latest FDA approval strengthens Aurobindo Pharma’s US pipeline and reinforces its growth in the high-value oncology segment, boosting investor confidence and the stock price.

Conclusion

The USFDA approval for Dasatinib is a major win for Aurobindo Pharma, strengthening its oncology portfolio and opening doors to a multi-billion-dollar market. As the company gears up for the Q1FY26 launch, this move further solidifies its presence in the US generic drug space and boosts investor sentiment.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.              

              

Investments in securities market are subject to market risks, read all the related documents carefully before investing.           

 

Why Tech Stocks Are Rising: HCL Tech, Wipro, and More Fuel Market Rally

India’s tech sector is grabbing attention as IT stocks soar, helping major indices like the Sensex and Nifty reach new highs. The Sensex crossed the 80,000 mark for the first time since January, while the Nifty is trading steadily above 24,200. This marks the seventh consecutive session of gains.

What really stands out is the Nifty IT index, which surged over 3% in early trade. All 10 IT stocks in the index were in positive territory, with HCL Tech leading the way.

Top IT Stocks Driving the Rally

HCL Technologies was the star performer, jumping over 6% after posting strong Q4 results, including an 8% year-on-year profit growth. Tech Mahindra rose nearly 5%, while Coforge gained around 4.5%. MphasiS and LTIMindtree were also up by approximately 3.5%.

Other major IT names like Infosys, TCS, Wipro, Persistent Systems, and OFSS saw gains between 2% and 3%.

Read More, Bank Nifty Retreats from Highs, Drops 423 Points Amid HDFC Bank Profit-Taking on Apr 23.  

3 Reasons Behind the IT Rally

1. Strong Q4 Results from HCL Tech

HCL Technologies posted better-than-expected Q4 earnings, with an 8% rise in net profit. It also secured $3 billion in new bookings during the quarter. This positive news boosted market confidence and overshadowed the cautious outlook previously given by companies like Infosys and TCS.

2. Positive Global Trends

Indian IT stocks are following the upbeat sentiment from global markets. US tech stocks rose after signs of easing trade tensions, especially following comments from Donald Trump about being more moderate with China. Since Indian IT firms rely heavily on global markets like the US, this global optimism is lifting sentiment.

3. FIIs Return to Indian Markets

Foreign Institutional Investors (FIIs), who had recently pulled back, are showing renewed interest. As global risk appetite improves, they’re finding value again in India’s export-heavy IT sector, driving up demand for tech stocks.

This surge in IT stocks is not only powering up individual companies but also lifting the broader markets, reflecting strong investor confidence in the tech sector’s future.

Conclusion

The current momentum in the tech sector signals renewed investor confidence driven by strong earnings, positive global cues, and the return of FIIs. As Indian IT firms continue to show resilience and secure major deals, the sector may remain a key driver of market performance in the near term.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.             

             

Investments in securities market are subject to market risks, read all the related documents carefully before investing.          

Ambuja Cements Takes Control of Orient Cement with 46.66% Stake

Ambuja Cements, part of the Adani Group, has completed the purchase of 37.79% stake in Orient Cement Ltd (OCL) from its promoter, the CK Birla Group. With this acquisition, Ambuja Cements has officially become the promoter of Orient Cement.

Overall Stake Rises to 46.66%

In addition to buying shares from the promoter group, Ambuja also acquired 1.82 crore shares (about 8.87%) from public shareholders. As a result, Ambuja now holds a total of 46.66% stake in OCL.

According to a regulatory filing by Orient Cement, Ambuja Cements has purchased 7,76,49,413 equity shares from the promoter group, giving it majority control.

Read More, Indian Railways Finance Corporation (IRFC) Reschedules Q4 FY25 Earnings Announcement to April 28.

Ambuja Now Has Full Control of OCL

Following these transactions, Ambuja Cements has gained sole control of Orient Cement and is now officially listed as the promoter of the company.

This acquisition is part of Ambuja’s broader planning to expand its footprint in the cement industry. The deal, first announced in October last year, valued Orient Cement at ₹8,100 crore.

About Ambuja Cements Limited

Ambuja Cements Limited, earlier known as Gujarat Ambuja Cement Ltd, is a leading cement manufacturer in India. The company supplies both cement and clinker to domestic and international markets.

As of April 23, 2025, Ambuja Cements share price is trading at ₹572.05, with a market capitalisation of ₹1.41 lakh crore, a P/E ratio of 32.14, and a dividend yield of 0.35%. The stock has touched a 52-week high of ₹706.95 and a 52-week low of ₹453.05.

Conclusion

With this strategic acquisition, Ambuja Cements has significantly strengthened its position in the Indian cement sector. Gaining promoter status in Orient Cement aligns with the Adani Group’s vision to scale up its presence in core infrastructure sectors.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.            

            

Investments in securities market are subject to market risks, read all the related documents carefully before investing.          

Delta Corp Q4 FY25 Profit Soars 127% YoY to ₹165 Crore on Exceptional Gains, Declares ₹1.25 Dividend

Delta Corp’s consolidated net profit for Q4 FY25 rose sharply by 127.26% year-on-year to ₹164.56 crore, up from ₹72.41 crore in Q4 FY24. However, revenue from operations fell slightly by 1.20% to ₹182.65 crore from ₹184.87 crore last year.

Profit Before Tax and Cost Control Boost Margins

The company’s profit before tax (PBT) jumped 142.80% to ₹252.86 crore compared to ₹104.13 crore in the same period last year. Delta also managed to cut its total expenses by 0.73% YoY to ₹154.06 crore. Notably, the cost of materials dropped 35.42% to ₹15.35 crore, and license & registration fees fell slightly by 1.04% to ₹30.39 crore.

Read More, Indian Railways Finance Corporation (IRFC) Reschedules Q4 FY25 Earnings Announcement to April 28.

Mixed Segment Performance

  • Casino gaming revenue declined by 3.20% YoY to ₹166.39 crore.

  • On the other hand, hospitality revenue saw a healthy growth of 22.94% YoY to ₹16.72 crore.

Standalone Numbers Show a Decline

On a standalone basis, the performance was weaker. The net profit dropped 31.52% YoY to ₹59.35 crore, down from ₹86.68 crore in Q4 FY24. Standalone revenue also declined by 4.86% YoY to ₹146.54 crore.

Full-Year Highlights

For the full financial year ended March 31, 2025:

  • Net profit rose by 1.94% to ₹248.99 crore.

  • However, revenue from operations dropped 13.98% to ₹729.63 crore compared to FY23.

Exceptional Gains from Subsidiary Sale

The company reported exceptional gains of ₹213.22 crore, which included:

  • ₹130.49 crore from selling 51% stake in Deltatech Gaming Ltd (DGL).

  • ₹81.65 crore gain from revaluing the remaining 49% stake in DGL.

  • ₹1.08 crore gain from the closure of Delta Offshore Developers.

Last year, exceptional items stood at ₹49.78 crore, including a profit from selling shares in Caravella Entertainment and a write-off of IPO expenses.

Dividend Announcement

Delta Corp’s board has recommended a final dividend of 125%, or ₹1.25 per equity share. The dividend will be paid within 30 days after shareholder approval at the upcoming AGM.

About Delta Corp

Delta Corp is India’s only listed casino gaming company, operating in live, electronic, and online gaming. It also has interests in hospitality and real estate.

As of 11:42 AM on April 23, Delta Corp share price is trading at ₹92.25, down 1.05% for the day. The stock opened at ₹93.50 and touched a high of ₹95.18 and a low of ₹91.42 during the session. The company’s market capitalisation stands at ₹2,470 crore, with a price-to-earnings (P/E) ratio of 15.77 and a dividend yield of 1.36%. Over the past 52 weeks, the stock has hit a high of ₹154.90 and a low of ₹76.66.

Conclusion

Despite a marginal decline in revenue and casino gaming performance, Delta Corp delivered strong profitability in Q4 FY25, thanks to exceptional gains from its strategic stake sale in Deltatech Gaming. While standalone results were weaker, the company’s full-year earnings remained steady. With a robust dividend payout and its unique position in India’s casino gaming sector, Delta Corp continues to bet on diversified growth.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.           

           

Investments in securities market are subject to market risks, read all the related documents carefully before investing.         

ITR Filing: 6 Ways the New Tax Regime Can Help You Save More in FY2024- 25

As the new financial year begins, taxpayers are preparing to file their ITRs (income tax returns) for FY2024- 25 (AY2025- 26). Many people are also comparing the old and new tax regimes to choose the best option for saving taxes.

While the old tax regime still offers more deductions and exemptions, the new tax regime has lower tax rates and is suitable for those who haven’t made many tax-saving investments. Let’s take a look at 6 ways the new regime can help you save money on your income tax.

Higher Standard Deduction

In the new tax regime, the standard deduction has been increased to ₹75,000, compared to ₹50,000 in the old regime. This means more of your salary is tax-free.

Read More, ITR Filing 2025: A Step-by-Step Guide to Using the ‘e-Pay Tax’ Feature.

NPS Contribution Exemption – Section 80CCD(2)

If your employer contributes to your NPS (National Pension System), you can claim extra tax benefits:

  • Government employees: Up to 14% of basic salary plus DA is tax-exempt

  • Private sector employees: Up to 10% is tax-exempt
     Note: This benefit is only for salaried individuals.

Agniveer Corpus Fund – Section 80CCH(2)

Under the Agnipath scheme, contributions made by both the Agniveer and the government are fully tax-free. The final amount received under this scheme is also exempt from tax.

Family Pension Exemption – Section 57(iia)

If someone receives a family pension after a government or private employee’s death, a part of it is exempt:

  • 1/3rd of the pension or ₹25,000, whichever is lower, is tax-free.

Transport & Conveyance Allowance

  • Transport Allowance: Disabled employees can claim up to ₹3,200 per month as a tax exemption if they commute to work.

  • Conveyance Allowance: Actual expenses incurred while doing office work can be claimed as a deduction.

New Exemptions under Section 10

Some new tax-free benefits have been included under Section 10 in the new regime:

  • Voluntary Retirement Scheme (VRS): Up to ₹5 lakh is tax-free.

  • Gratuity: Fully tax-free for government employees; for others, it’s partially exempt depending on conditions.

  • Leave Encashment: Up to ₹25 lakh is exempt at the time of retirement or resignation.

Conclusion

If you don’t invest in many tax-saving instruments, the new tax regime may suit you better. It offers a simpler and lower tax structure, along with some basic exemptions and a higher standard deduction—ideal for salaried individuals with fewer deductions. Always compare both regimes before filing your ITR to choose the one that gives you the best savings.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.          

          

Investments in securities market are subject to market risks, read all the related documents carefully before investing.        

 

Tata Communications Q4 FY25 Net Profit Soars 115% to ₹761 Crore; Declares ₹25 Dividend

Tata Communications reported a 115% increase in its net profit for the January–March quarter of FY25, reaching ₹761.17 crore, compared to ₹354.57 crore in the same quarter last year. This growth was supported by a strong demand for its data services and a one-time gain from selling a land parcel in Chennai.

Revenue Sees Modest Rise

The company’s revenue from operations went up by 6% to ₹5,990.35 crore in Q4FY25, from ₹5,645.07 crore in the year-ago period.

Read More, Mahindra Finance Shares in Focus: PAT Slipped 32% YoY, Proposed Final Dividend of ₹6.50.

Gains from Asset Sales Boost Profits

Tata Communications earned ₹577 crore from selling the Chennai land and ₹311 crore from the sale of its entire stake in Tata Communications Payment Solutions, which significantly contributed to the quarterly profit jump.

Capex Plans for FY26

The company plans to raise its capital expenditure to over $300 million in FY26, up from $265–270 million in FY25. The focus will be on maintaining infrastructure, customer success, and strategic investments such as undersea cables and cloud platforms.

The CFO, Kabir Ahmed Shaikh, said that despite a dip in margins from the previous quarter, the company targets a margin expansion to 23–25% in 2 years, from the current 19.8%.

Possible Stake Dilution in Loss-Making Arm

Tata Communications is considering reducing its stake in a foreign subsidiary that operates in the data services segment, which reported a ₹105 crore loss on ₹33 crore revenue in FY25.

Revenue Doubling Timeline Likely to be Delayed

The company had earlier set a goal to double its revenue to ₹28,000 crore by FY27. However, with FY25 revenue closing at ₹23,238 crore, it now plans to revise this target, with more details to be shared on Investor Day.

Debt and Expenses Update

As of March 31, Tata Communications had a total debt of ₹9,377 crore. The company plans to bring down its net debt-to-EBITDA ratio below 2x by September 2024. Meanwhile, total expenses rose by 6% due to a 16.4% increase in network and transmission-related costs.

Focus on Core Business

The company is restructuring its operations and selling non-core assets to focus on key areas like cloud, networking, cybersecurity, media, and entertainment.

Dividend Declaration

The board has recommended a final dividend of ₹25 per share (250%) for FY25. If shareholders approve it at the upcoming AGM, the dividend will be paid afterward. Tata Communications has issued 22 dividends since 2003, including ₹16.70 per share in the past year.

Stock Performance

As of 10:17 AM IST on April 23, Tata Communications share price is trading at ₹1,599, up 0.019%. The stock opened at ₹1,650 and touched an intraday high of ₹1,655.30 and a low of ₹1,595. It has a market capitalisation of ₹45,570 crore, a price-to-earnings (P/E) ratio of 40.80, and a dividend yield of 1.04%. Over the past 52 weeks, the stock has reached a high of ₹2,175 and a low of ₹1,291.

Conclusion

Tata Communications has delivered a strong Q4 with a sharp rise in profitability, backed by both operational growth and strategic asset sales. While the company is revisiting its ambitious revenue targets, it remains focused on core business expansion and strengthening margins. The dividend payout further signals its commitment to shareholder returns.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.         

         

Investments in securities market are subject to market risks, read all the related documents carefully before investing.       

Dividend Stocks in Focus Today: Schaeffler India and CIE Automotive to Trade Ex-Dividend on April 23

Schaeffler India Ltd and CIE Automotive India Ltd will be trading ex-dividend today, April 23, 2025. This means today is the record date for identifying shareholders eligible to receive the dividend payout. Investors who wanted to receive the dividend needed to purchase shares on or before April 22, following the T+1 settlement system.

Understanding the Record Date

The record date is used to identify shareholders who qualify for the dividend. Only those who owned the shares before this date will be eligible to receive the payout after AGM approval.

Read More, Mahindra Finance Shares in Focus: PAT Slipped 32% YoY, Proposed Final Dividend of ₹6.50.

Dividend Announcement by Schaeffler India

Schaeffler India has recommended a dividend of ₹28 per equity share of face value ₹2 each for the financial year ending December 31, 2024. The company confirmed that the dividend, if approved at the AGM (Annual General Meeting) scheduled for April 30, 2025, will be paid within 30 days from the date of the AGM. The company had announced the record date for this dividend as April 23, 2025.

Dividend Declaration by CIE Automotive India

CIE Automotive India has proposed a final dividend of ₹7 per equity share of face value ₹10 for the year ended December 31, 2024. The board recommended this dividend on February 20, 2025. Shareholders whose names appear in the records as of April 23, 2025, will be eligible for the payout, which will be made within 30 days after the AGM on April 30, 2025.

Conclusion

Shareholders of Schaeffler India and CIE Automotive who bought shares before April 23 will qualify for the upcoming dividend payouts. Both companies have confirmed that the dividends will be disbursed within a month following shareholder approval at their respective AGMs.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.         

         

Investments in securities market are subject to market risks, read all the related documents carefully before investing.       

Stocks to Watch Today on April 23, 2025: HCLTech, Ambuja, Airtel and More in Focus

Indian stock markets are likely to continue their upward trend for the seventh day in a row on Wednesday, supported by positive global signals and renewed interest from foreign investors. GIFT Nifty hints at a strong opening for domestic markets.

However, by 7:00 AM, the early Nifty indicator had dropped 221 points (0.91%) to 24,390.

Asian markets are bouncing back, taking cues from Wall Street gains. Investors are feeling optimistic after US President Donald Trump expressed hope about easing trade tensions with China. Japan’s Nikkei gained 1.58%, and South Korea’s Kospi rose 1.12%.

On Tuesday in the US:

  • S&P 500 rose 2.51% 
  • Nasdaq Composite dropped 2.71% 
  • Dow Jones fell 2.66% 

Indian Market Snapshot – April 22

  • Sensex closed 187 points higher at 79,595 (+0.24%) 
  • Nifty50 gained 41 points to close at 24,167 (+0.17%) 
  • FIIs were net buyers, investing ₹1,290.43 crore 
  • DIIs were net sellers, offloading ₹885.63 crore 

Here are stocks to watch today: 

HCLTech

HCL Tech reported a net profit of ₹4,307 crore for the fourth quarter, marking a 7.81% year-on-year rise. Revenue from operations came in at ₹30,246 crore, a growth of 6.1% YoY, slightly missing analysts’ expectations.

Read More, Mahindra Finance Shares in Focus: PAT Slipped 32% YoY, Proposed Final Dividend of ₹6.50.

Hathway Cable & Datacom

Hathway posted a marginal rise in consolidated net profit to ₹34.8 crore in Q4. Revenue from operations also grew, reaching ₹513.15 crore compared to ₹493.37 crore in the same quarter last year.

AU Small Finance Bank

AU Small Finance Bank reported a strong 18% year-on-year increase in net profit at ₹504 crore for the January–March quarter of FY25. The performance was driven by robust growth in net interest income and other revenues.

Tata Communications

Tata Communications reported a 15% increase in net profit to ₹336 crore in Q4. The improvement was fueled by strong demand in its data services segment.

Ambuja Cements

Ambuja Cements, part of the Adani Group, has acquired a 37.8% promoter stake in Orient Cement Ltd (OCL) from the CK Birla Group. In addition, it purchased 1.82 crore shares, or 8.87%, from public shareholders, raising its total stake in OCL to 46.66%.

Gensol Engineering & Power Finance Corp (PFC)

Power Finance Corporation (PFC) has filed a complaint with the Economic Offences Wing (EOW) against Gensol Engineering Ltd, alleging the submission of falsified documents. PFC is currently investigating the matter under its anti-fraud policy.

Bharti Airtel

Bharti Airtel and its subsidiary Bharti Hexacom have signed agreements with Adani Data Networks to utilise 400 MHz of spectrum in the 26 GHz band, a move expected to support their 5G network capabilities.

Conclusion

While early indicators like the GIFT Nifty show a dip, strong global cues and ongoing FII inflows could keep the bullish momentum alive. Key corporate developments, including earnings from HCLTech and AU Small Finance Bank, strategic moves by Ambuja Cements and Airtel, and regulatory issues surrounding Gensol, are likely to drive stock-specific action today. Investors should stay cautious amid volatility but look for opportunities in fundamentally strong counters.

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.         

         

Investments in securities market are subject to market risks, read all the related documents carefully before investing.     

Closing Bell: Markets Extend Winning Streak for 6th Day; Sensex Ends 187 Pts Higher, Nifty Marks 29th Anniversary

On Tuesday, April 22, 2025, Indian stock markets extended their rally for the sixth straight trading session, led by gains in FMCG and private banking shares.

The BSE Sensex opened strong with a 320-point jump at 79,728. However, due to weak cues from the US market, it briefly turned negative, hitting a low of 79,253. It later recovered and stayed in the green for the rest of the day, touching a high of 79,824 before closing 187 points higher at 79,596.

In 6 sessions, the Sensex has gained a total of 5,749 points, or 7.8%.

The NSE Nifty 50 also dipped to a low of 24,072 but rebounded to a high of 24,243. It ended the day up 42 points at 24,167 — a 0.2% gain. The Nifty has now climbed 1,768 points, or 7.9%, in the last six days. Notably, Tuesday marked the 29th anniversary of the Nifty 50 index.

Top Gainers and Losers

Among the top performers on the Sensex were FMCG giants ITC and Hindustan Unilever, both gaining over 2%. Other notable gainers included Mahindra & Mahindra, HDFC Bank, Eternal (Zomato), and Kotak Mahindra Bank.

On the losing side, IndusInd Bank dropped 5% following reports that the bank hired EY for a new forensic audit into a ₹600 crore issue in its microfinance accounts. Other notable losers included Power Grid, Bharti Airtel, Infosys, Bajaj Finserv, Adani Ports, and NTPC, which fell by 1–2%.

Read More, Top Gainers and Losers on April 22, 2025: ITC Gains While IndusInd Bank Drops.

Broader Markets Outperform

Mid-cap and small-cap stocks outshone large caps. Both the BSE MidCap and SmallCap indices gained up to 0.8%. Market sentiment was broadly positive, with nearly 2,500 advancing stocks compared to about 1,500 declining on the BSE.

Sector Highlights

  • Top Gainers: BSE Realty rose 2.4%, FMCG climbed 1.9%, and Consumer Durables gained 1.4%.

  • Top Losers: The IT and Power sectors saw losses for the day.

Oil Prices 

As of April 22, 2025, at 03:16 PM, Brent Crude was trading at $67.14, up by 1.37%

Conclusion

With the Sensex and Nifty maintaining upward momentum for the sixth straight session, supported by strong sectoral gains, market sentiment remains optimistic. However, concerns over select financial stocks and global cues could influence near-term volatility.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.         

         

Investments in securities market are subject to market risks, read all the related documents carefully before investing.       

Small Loans, Big Trouble: Why Are Young Indians Defaulting?

India’s young generation is independent, ambitious, and tech-savvy. But with this confidence comes a growing problem — many are defaulting on small personal loans, especially those under ₹50,000. Recent data from CRIF and the Digital Lenders Association of India (DLAI) shows that around 26% of these loans haven’t been repaid for more than 90 days, making them non-performing assets (NPAs).

Alarming Defaults on Tiny Loans

The most concerning trend is seen in loans under ₹10,000, where the default rate is the highest. These loans were mostly disbursed between December 2023 and June 2024. In 2019, the NPA rate for small loans was 13.9%. By July 2023, this figure had doubled to 26.2%. Even for loans up to ₹1 lakh, the NPA rate rose from 12.4% to 14.4%.

Read More: RBI Governor Flags Liquidity Risks in India’s Money Market.

Who Is Giving These Loans?

Most of these loans are issued by NBFCs (non-banking financial companies) through digital apps. They mainly focus on smaller towns and rural areas — places that traditional banks often don’t reach. These loans are easy to get and require little paperwork, making them attractive to young people. However, they’re now turning into a serious financial burden for many.

Rising Stress in Microfinance

According to an RBI report, from March to September 2024, stressed microfinance loans (overdue between 31 and 180 days) increased from 2.15% to 4.3%. Borrowers with multiple loans or higher outstanding amounts showed more signs of financial stress.

Why Are Young People Defaulting?

  • Lifestyle Spending: Young consumers are spending more on lifestyle and aspirational products, often influenced by social media and e-commerce.
  • Easy Credit Access: Fintech apps and Buy Now Pay Later (BNPL) services offer quick loans with little background check.
  • Irregular Income: Many Gen Z workers are freelancers or part of the gig economy, meaning their income isn’t stable.
  • Lack of Financial Knowledge: Many don’t fully understand how loans work — including interest rates, penalties, and the impact on credit scores.
  • Lender Gaps: Financial institutions are sometimes too eager to offer credit without proper risk checks.

What Needs to Be Done?

  • Financial Education: Start teaching students about money management and credit from an early age.
  • Responsible Lending: Lenders must ensure loans are given based on real repayment ability, not just digital presence.
  • Greater Transparency: Clear terms and penalties, especially in BNPL services, are crucial.
  • Savings and Emergency Funds: Encourage young people to save and build financial backups.
  • Innovation with Responsibility: All stakeholders must work together to ensure the financial health of India’s youth.

Conclusion

As small loans become easier to access, it’s vital to equip young Indians with the right tools and knowledge to manage them wisely. With responsible lending and stronger financial literacy, we can help build a financially secure and empowered generation.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.        

        

Investments in securities market are subject to market risks, read all the related documents carefully before investing.