Why IT Stocks Down Today? Know the Reasons

IT stocks took a hit today, with Nifty IT falling 2.56% to 39,504.85, making it the worst-performing sector. Major IT companies saw losses, with Wipro dropping 3.53%, Infosys dropping 3.33%, TCS dropping 2.30%, LTIMindtree dropping 3.87%, Mphasis dropping 3.59% and L&T Technology dropping the most by 4.31% as of 01:27 PM on February 24.

Several factors contributed to this decline, including economic concerns in the US, foreign investor outflows, and uncertainty around tariffs.

US Inflation Data and Economic Slowdown

New US inflation data showed higher-than-expected figures, leading to concerns about an economic slowdown. This affected investor sentiment, with many shifting towards safer assets like gold.

  • The University of Michigan’s consumer sentiment index dropped by nearly 10% to 64.7 in February.
  • US home sales fell more than expected, reaching 4.08 million units.
  • The US services purchasing managers’ index (PMI) moved into contraction territory.

These indicators suggest that businesses in the US might reduce discretionary spending, including IT services, which directly impacts Indian IT companies.

Foreign Institutional Investors (FIIs) Selling Continues

FIIs have been selling Indian equities for months. In February, FIIs sold ₹36,977 crore worth of stocks, and January saw even higher outflows of ₹87,375 crore. Out of 15 trading sessions in February, FIIs were net sellers in 13.

If this trend continues, February will be the fourth straight month of consistent FII selling. This impacts market liquidity and puts additional pressure on IT stocks.

Tariff Concerns and Weak Deal Momentum

As per the news reports, uncertainty around potential US tariffs remains a concern for Indian IT firms. There is still no clarity on the impact of trade restrictions, but it continues to create uncertainty.

At the same time, the news reports say that there are signs of weak deal ramp-ups in the IT sector for Q4 FY24. Companies are cautious about spending, which slows the growth outlook for IT services.

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

Nifty Bank Recovers 400 Points from Lows, Led by Kotak Bank and Axis Bank

The Nifty Bank Index consists of the most liquid and large Indian banking stocks. It serves as a key benchmark for tracking the capital market performance of Indian banks and is widely used by investors and market participants. The index follows the free float market capitalisation method and comprises a maximum of 12 companies listed on the National Stock Exchange (NSE).

Apart from reflecting banking sector trends, the Nifty Bank Index is also utilised for launching index funds, Exchange-Traded Funds (ETFs), and structured products. It plays a vital role in portfolio benchmarking for investors focusing on the banking sector.

Market Movement: Nifty Bank Bounces from Lows

The Nifty Bank Index opened lower but found support at 42,281.90, from where it rebounded. As of 2:53 PM, the index is trading around 48,700 levels, recovering over 400 points from the day’s low. Despite this recovery, it remains in negative territory, down 0.51% for the session.

Key Contributors and Draggers

The recovery in Nifty Bank was largely driven by 2 key stocks:

However, some heavyweight banking stocks acted as a drag on the index, preventing a full recovery:

In terms of market breadth, 9 stocks in the Nifty Bank Index were trading in the red, while only 3 stocks were in the green.

Relative Performance Against Nifty 50

Despite the negative market breadth, the Nifty Bank Index showed signs of relative outperformance compared to the Nifty50 Index. 

Performance in February: Down 1.82% and Year-to-Date (YTD) Performance: Down 4.26%

Notably, the index has managed to hold the lows of January, indicating resilience despite the ongoing weakness in the broader banking sector.

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

Nifty Smallcap 100 Index Falls Over 8% In February So Far

The Nifty Smallcap 100 Index, designed to track the performance of the small-cap segment, is witnessing a challenging month. As of 2:39 PM on February 24, 2025, the index is down nearly 1%, with 78 out of 100 stocks in the red. Notably, 65 stocks are trading with losses ranging from -3% to 0%, reflecting broad weakness in the small-cap segment.

This slump extends beyond a single session. So far in February 2025, the index has declined by 8.31%, bringing it dangerously close to its worst-ever losing streak in February. If it ends the month in the red, this will mark 4 consecutive years of February declines—an unprecedented trend for the index.

A Repeating Pattern? Historical February Performance

The small-cap segment appears to have developed a February curse. The Nifty Smallcap 100 Index recorded the following February losses in previous years:

  • February 2022: -11.44%
  • February 2023: -3.64%
  • February 2024: -0.31%

This streak has raised concerns among market participants. If 2025 also ends negatively, it will be the first time in history that the index has logged 4th consecutive February losses.

Déjà Vu: Parallels to the COVID Sell-Off

The current downturn in small-cap stocks draws parallels to the COVID-induced market turmoil in 2020. That year, small-cap stocks faced a similar wave of selling pressure in the month of February as risk aversion gripped investors. 

Key Takeaways

  • The Nifty Smallcap 100 Index is down 8.31% in February 2025. 
  • If the index ends in red, it will be the 4th consecutive year of February declines.
  • Historical data suggests that February has been a challenging month for small-cap stocks.

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

Top 5 Best Small-Cap Mutual Funds with Over 25% Return: Investment of ₹5 Lakh Now Worth ₹27.24 Lakh

The recent stock market turmoil has significantly impacted small-cap stocks, with many declining by up to 50%. As of  February 24, 2025, the small-cap index has dropped by 17.5% year-to-date, affecting the returns of several small-cap mutual funds. However, despite this correction, some funds have demonstrated impressive long-term performance.

For investors looking at historical trends, here is a list of 5 small-cap mutual funds that have delivered over 25% annualised returns in the past 5 years.

5 Top-Performing Small-Cap Mutual Funds Over the Last 5 Year

The table below illustrates how a ₹5 lakh lump sum investment in these funds 5 years ago has grown into a substantial corpus today.

Mutual Fund Scheme Name Launch Date AUM (₹ in Crore) Invested Amount in ₹ Current Value in ₹ 5 YR Annualised Return %
Quant  Small Cap Jan 1, 2013 24,812.54 5,00,000 27,24,579 40.39
Nippon India Small Cap Jan 1, 2013 57,009.70 5,00,000 18,58,768 30.05
Bank of India Small Cap Dec 12, 2018 1,555.78 5,00,000 18,20,033 29.5
Tata Small Cap Nov ,5 8,883.40 5,00,000 17,59,214 28.63
Canara Robeco Small Cap Feb 25, 2019 11,527.91 5,00,000 17,23,853 28.1

Vale of investment as of February 21, 2025. 

Analysing the Growth Potential

These funds highlight the wealth-creating potential of small-cap mutual funds, despite short-term market volatility.

Want to plan regular withdrawals? Our SWP Calculator helps you calculate how much you can withdraw while keeping your investments intact. Try it now!

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. 

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

Defence Stock Zen Technologies: Targeting 50% CAGR Revenue growth and 35% EBITDA Margin

Zen Technologies Limited (ZTL) is a prominent developer, designer and supplier of computer-based training simulators and anti-drone systems. Its clientele includes the Ministry of Defence, police and paramilitary forces, various government departments and private entities. The company upholds high standards with ISO 9001:2008 (QMS) and ISO 27001:2005 (ISMS) certifications and is a recognised CMMI Level 3 organisation. Additionally, its research and development unit has received acknowledgement from the Department of Scientific and Industrial Research, Ministry of Science and Technology, Government of India.

Revenue Guidance 

For the financial year FY25, Zen Technologies has maintained its revenue guidance at ₹900 crore with a 35% EBITDA margin. The company is targeting a robust top-line growth, forecasting an average compound annual growth rate (CAGR) of 50% over the next 3 years. 

Strategic Acquisitions and Capital Management

Zen Technologies has recently executed Qualified Institutional Placements (QIP) to support acquisitions and meet working capital needs. While this has led to a dilution of the promoter’s stake, it has provided the necessary liquidity to pursue growth opportunities. Notably, the acquisition of a 51% stake in Vector Technics has brought in extraordinary intellectual property, with plans to export to North America. An order worth ₹800 crores is anticipated to be finalised by Q1FY26 or, at the latest, by Q2FY26.

Quarterly Financial Performance

The Q3FY25 results reflect substantial progress:

  • Revenue: Increased to ₹141.52 crores from Rs.98.08 crores in Q3FY24, representing a 44% growth.
  • EBITDA: Rose to ₹58.68 crores from ₹48.40 crores, with the margin reaching 35.90% of revenue—an improvement of 21% on a percentage basis.
  • Profit After Tax: Grew to Rs.38.62 crores compared to ₹31.66 crores in Q3FY24, marking a 22% increase, despite a slight contraction in the profit margin (from 32% to 27%).
    Within the total revenue, ₹130.82 crores were generated from equipment sales, while the Annual Maintenance Contract (AMC) business contributed ₹10.70 crores.

Share Price Performance

The share price of Zen Technologies traded marginally higher by 0.02% as of 13:13 on 24 February 2025.

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

Retirement Planning One-Time Investment: How To Turn ₹11 Lakh to a ₹3.3 Crore Retirement Corpus

Retirement planning is a subject of growing interest, especially when one considers how a modest lump sum can evolve into a substantial corpus over time. This article presents an informational exploration of two distinct scenarios where an initial investment of ₹11,00,000 grows significantly through the power of compounding, without offering any recommendations or advice.

Understanding the Retirement Corpus Concept

A retirement corpus is the accumulated fund that supports living expenses during retirement. The key element behind building such a corpus is compound interest—the process where returns are reinvested to generate additional earnings over the long term. This natural growth mechanism demonstrates how even a single, one-time investment can multiply over several decades. This calculator is used for calculation. 

Case Study 1: A 30-Year Investment at 12% Annual Return

In the first scenario, an investment of ₹11,00,000 is assumed to grow at an estimated annual return of 12% over a period of 30 years. Under these conditions:

  • Initial Investment: ₹11,00,000
  • Estimated Growth Rate: 12% per annum
  • Final Corpus Value: Approximately ₹3,29,55,914
  • Estimated Returns: Around ₹3,18,55,914 over the original amount

This case illustrates how a longer investment horizon, even at a moderate rate, allows the power of compounding to generate a sizeable retirement fund.

Case Study 2: A 25-Year Investment at 14.6% Annual Return

The second scenario considers a higher annual return of 14.6% over a relatively shorter span of 25 years. Here, the same one-time investment is projected to reach:

  • Initial Investment: ₹11,00,000
  • Estimated Growth Rate: 14.6% per annum
  • Final Corpus Value: Approximately ₹3,31,90,067
  • Estimated Returns: Around ₹3,20,90,067 in addition to the principal

This case demonstrates that a higher rate of return can compensate for a reduced investment period, leading to a comparable final corpus value despite the shorter duration.

The Role of Compound Interest in Long-Term Growth

Compound interest plays a pivotal role in these examples by reinvesting earnings to generate further returns. The difference in outcomes between the two scenarios highlights the delicate interplay between the investment duration and the annual growth rate. Whether the growth is achieved over 30 years at a moderate rate or over 25 years at a higher rate, the underlying principle remains the same—small beginnings can lead to substantial outcomes through consistent compounding.

Observations and Final Thoughts

These two scenarios serve as an illustration of the potential embedded in long-term, compounded investments. While one approach benefits from a longer period at a steady rate, the other leverages a higher growth rate over a shorter span. Both demonstrate that, from an informational standpoint, even a one-time investment of ₹11,00,000 can evolve into a retirement corpus of roughly ₹3,30,00,000.

The examples provided here are purely for informational purposes and are intended to highlight how differing parameters in investment scenarios can influence the final retirement corpus.

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

Gold and Silver Prices in Your City on February 24

On February 24, 2025, gold prices experienced a marginal rise. In the international market, the spot gold price increased by 0.07% to $2,939.22 per ounce as of 12:07 PM.

In India, gold prices rose by ₹60 per 10 grams in major cities on February 24, 2025.

In Mumbai, 24-carat gold is priced at ₹8,614 per gram, while 22-carat gold now costs ₹7,896 per gram. The 24-carat gold rate is ₹86,140 per 10 grams as at 12:07 PM.

In Delhi, 22-carat gold is currently ₹78,833 per 10 grams, whereas 24-carat gold is trading at ₹86,000 per 10 grams.

Gold Prices Across Major Indian Cities on February 24, 2025

Here is a detailed breakdown of gold prices as of February 24, 2025:

City 24 Carat Gold (per 10gm in ₹) 22 Carat Gold (per 10gm in ₹)
Chennai 86,390 79,191
Hyderabad 86,280 79,090
Delhi 86,000 78,833
Mumbai 86,140 78,962
Bangalore 86,210 79,026

Silver Prices in India on February 24, 2025

International silver prices increased by 0.56% to $32.66 as of 12:07 PM. In India, silver prices edged up marginally by ₹40 per kg.

Silver Prices Across Major Indian Cities

City Silver Rate in ₹/KG 
Mumbai 96,500
Delhi 96,330
Kolkata 96,370
Chennai 96,780

Key Takeaways

  • Gold Prices: Both 22-carat and 24-carat gold prices have risen in major Indian cities, with a marginal increase internationally.
  • Silver Prices: Silver prices have also increased slightly in both international and domestic markets.

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

Earning ₹10 Crore Salary: Comparing Net Take-Home in the US, India, UAE and Finland

In today’s global economy, high-income earners often compare tax structures across different countries to understand the real value of their earnings. This article presents an informational comparison of how a ₹10 crore salary is affected by marginal tax rates in several countries, with a focus on the United States, India, the United Arab Emirates (UAE) and Finland.

Understanding Marginal Tax Rates

Marginal tax rates refer to the percentage of tax levied on an additional unit of income earned above a predetermined threshold. According to Section 2(29C) of the Income Tax Act, 1961, the “maximum marginal rate” is defined as the rate applicable to the highest income bracket, including any surcharges that may apply. In simple terms, as an individual’s income increases, higher portions of that income are taxed at increased rates.

This concept is crucial in financial planning, as it determines the amount deducted from every additional rupee earned. Although this overview is purely informational, understanding marginal tax rates helps clarify how different tax regimes influence take-home earnings.

Comparative Analysis: A ₹10 Crore Salary

When considering a ₹10 crore annual income, tax rates vary significantly across nations. Here is a direct comparison of the net in-hand amount after tax deductions in the 4primary countries:

  • United States: A marginal rate of 37% typically results in a net take-home of approximately ₹6.3 crore.
  • India: With a marginal tax rate of around 42.74%, the net in-hand amount comes to about ₹5.7 crore.
  • UAE: Benefitting from a 0% marginal tax rate, an individual retains the full ₹10 crore salary without deductions.
  • Finland: With one of the highest marginal tax rates at 56.9%, the net amount received is roughly ₹4.31 crore.

Global Perspective: Additional Comparisons

Beyond the primary countries, it is informative to observe how other major economies compare:

  • China: A top marginal rate of 45% leads to a net take-home of approximately ₹5.5 crore.
  • Japan: With a marginal rate of 55.97%, the net earnings are around ₹4.4 crore.
  • Germany: A 45% marginal tax rate results in a net in-hand of about ₹5.5 crore.
  • United Kingdom: Also at 45%, the effective net amount is approximately ₹5.5 crore.

This broader view highlights that while tax rates can vary widely, the ultimate impact on net earnings is substantial and differs considerably based on the local tax regime.

Understanding the Impact on Net Earnings

The variations in net take-home pay from a ₹10 crore salary underscore the importance of recognising local tax policies. Marginal tax rates determine how much of each additional rupee is effectively retained, influencing overall financial outcomes. In jurisdictions with no personal income tax, such as the UAE, the full salary is retained. Conversely, higher marginal tax rates, as seen in Finland, result in significantly lower net earnings.

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

HDFC MF Declares Income Distribution for Balanced Advantage Fund

HDFC Mutual Fund has announced an income distribution of ₹0.25 per unit under the Income Distribution cum Capital Withdrawal (IDCW) option for both regular and direct plans of the HDFC Balanced Advantage Fund. The record date for this distribution is February 25, 2025. Investors holding units as of this date will be eligible for the payout.

Fund Details

The HDFC Balanced Advantage Fund is an open-ended scheme that was launched on January 1, 2013. It follows a hybrid strategy, investing in both equity and debt instruments. The fund’s benchmark is the NIFTY 50 Hybrid Composite Debt 50:50 Index.

As of January 31, 2025, the fund manages ₹94,251 crore in assets. It has an expense ratio of 0.78%. The risk level, as per the riskometer, is classified as very high. The fund has delivered a 15.53% return since inception.

Asset Allocation

The HDFC Balanced Advantage Fund allocates 54.79% of its portfolio to equities, providing market-linked growth potential, while 30.57% is invested in debt securities to add stability. A small portion, 1.46%, is allocated to real estate, and 13.18% is held in cash and cash equivalents, to ensure liquidity for redemptions.

Investment Requirements

The fund allows investments starting at:

  • ₹100 minimum investment
  • ₹100 minimum additional investment
  • ₹100 minimum SIP investment
  • ₹100 minimum withdrawal
  • Minimum six cheques required for SIPs

There is no lock-in period for this fund. However, an exit load of 1% applies if more than 15% of the investment is redeemed within 365 days.

Recent Dividends

Previously, on January 27, 2025, the fund declared an income distribution of ₹0.25 per unit under the IDCW option.

The income distribution and other details remain subject to market conditions, and investors are advised to review the fund’s performance and investment strategy before making any decisions.

Plan your SBI SIP investments better! Use our easy-to-use SBI SIP Calculator and estimate future returns with just a few clicks. Your financial growth starts here.

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. 

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

LIC Mutual Fund Announces Income Distribution for Aggressive Hybrid Fund

LIC Mutual Fund has declared an income distribution of ₹0.10 per unit under the IDCW option for both regular and direct plans of its LIC MF Aggressive Hybrid Fund. The record date for this distribution is February 25, 2025.

Fund Details

The LIC MF Aggressive Hybrid Fund is an open-ended scheme that was launched on January 3, 2013. The fund follows the CRISIL Hybrid 35+65 Aggressive Index and has generated a 10.67% return since inception. It currently holds ₹508 crore in assets under management (AUM) as of January 31, 2025, with an expense ratio of 1.41%. 

The risk level is classified as ‘Very High’, according to the riskometer.

Asset Allocation & Dividend

The fund’s portfolio is structured with 74.69% allocated to equities, while 23.15% is invested in debt instruments, and the remaining 2.16% is held in cash and cash equivalents.

The last dividend payout of ₹0.10 per unit was recorded on November 24, 2023. The fund has periodically distributed income, depending on availability and market conditions.

Fund Management 

The fund is managed by Sumit Bhatnagar, and KFin Technologies Ltd. serves as the registrar and transfer agent.

Investment Requirements

  • Minimum investment: ₹5,000
  • Additional investment: ₹500
  • Minimum SIP investment: ₹200
  • Minimum withdrawal amount: ₹500
  • Minimum number of SIP cheques: 30

For redemptions within three months, an exit load of 1% applies if the withdrawn amount exceeds 12% of the total investment. There is no lock-in period for this fund.

Ensure steady returns with systematic withdrawals! Estimate your withdrawals with our SWP Calculator and manage your finances seamlessly.

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. 

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