Nifty Financial Services Index: HDFC Bank & Bajaj Finance Drag

The Nifty Financial Services Index (FINNIFTY) represents the performance of India’s financial sector, encompassing banks, financial institutions, housing finance companies, insurance firms, and other financial services providers. It is composed of 20 stocks listed on the National Stock Exchange (NSE) and is computed using the free float market capitalisation method, ensuring a representation of market trends based on publicly traded shares.

Market Update: FINNIFTY Trades Lower

As of 3:24 PM on February 10, 2025, the Nifty Financial Services Index is down by 0.63%. Market sentiment remains weak, with 17 out of 20 stocks in red, while only three stocks are trading in the green.

Key contributors to the decline include HDFC Bank and Bajaj Finance, which have acted as draggers for the index. However, Kotak Bank and ICICI Bank have provided some support, helping the index recover from its intraday low.

Valuation Insights: Price-to-Book Ratio Below Averages

The price-to-book (PB) ratio of FINNIFTY currently stands at 2.84, which is lower than its short-term and long-term averages. Specifically, it is below:

  • 1-month, 3-month, and 6-month averages
  • 1-year, 2-year, and 5-year averages

The PB ratio is a key valuation metric for financial stocks, offering insights into whether the index is trading above or below its intrinsic value. A lower PB ratio may indicate potential undervaluation or weaker market sentiment in the financial sector.

Performance Overview: Outperforming the Nifty50 in 2025

Despite the recent decline, FINNIFTY has outperformed the broader Nifty50 index in CY 2025, registering a 0.55% decline so far. The index delivered a nearly 10% gain in CY 2024. 

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 Drops Over 2%: How Does the Valuation Look After an 11% Fall in 2025?

The Nifty Smallcap 100 Index, which tracks the performance of the small-cap segment on the National Stock Exchange (NSE), witnessed a significant decline on February 10, 2025. As of 3:08 PM, the index was down by over 2%, breaching the Budget Day low. Market breadth remained extremely weak, with 92 stocks in red and only 8 stocks trading in green.

Adding to the pressure, nearly 20 stocks in the index were seen trading down between 3% and 5%. This suggests a broad-based sell-off, significantly impacting investor sentiment in the small-cap space.

Smallcap 100 Index Underperforms 

The downturn in the Nifty Smallcap 100 Index is not an isolated event. The index has consistently underperformed the broader market in 2025 so far. On a year-to-date (YTD) basis, the Nifty Smallcap 100 Index has declined by 11.25%, while the benchmark Nifty 50 has fallen by a relatively smaller margin of 1.51%.

This underperformance highlights the heightened volatility and risk associated with small-cap stocks.

Valuation Check: How Does the Smallcap Index Compare to Historical Averages?

Despite the recent decline, valuation metrics suggest that the index is still trading at relatively higher levels. As of February 7, 2025, the price-to-earnings (PE) ratio of the Nifty Smallcap 100 Index stood at 29.79. While this is below its 1-year average PE of 30.56, it remains above the 2-year and 5-year averages, which are 26.34 and 28.15, respectively.

Performance Recap: Strong 2024 Gains Versus 2025 Decline

The recent downturn comes after a stellar performance in CY2024, when the Nifty Smallcap 100 Index outperformed the Nifty 50 by delivering a 24% return. This rally was driven by strong earnings growth, liquidity flows, and increased retail participation. However, in 2025, the trend has reversed, with small caps facing steep corrections amid shifting market conditions.

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 Breaks RBI Policy Day Low, Dragged by HDFC Bank and Axis Bank

The Nifty Bank Index is a benchmark that tracks the performance of the most liquid and large Indian banking stocks. Comprising a maximum of 12 banks listed on the National Stock Exchange (NSE), it serves as a key indicator for investors and market intermediaries to assess the capital market performance of Indian banks.

Nifty Bank Performance on February 10, 2025

On February 10, 2025, the Nifty Bank Index opened lower at 50,052 and continued to decline through the trading session. It slipped below the critical 50,000 mark, touching an intraday low of 48,703.10. As of 2:38 PM, the index recovered from its lows but remained under the 50,000 level, down by 0.50%.

Key Contributors to the Decline

Most of the banking stocks within the index were trading in the red, except for Kotak Mahindra Bank and ICICI Bank, which provided some support. However, HDFC Bank and Axis Bank emerged as the biggest draggers, pulling the index lower. Despite the slight recovery, selling pressure continued to weigh on the banking sector.

RBI’s First Rate Cut in 5 Years

The Reserve Bank of India (RBI) recently reduced the repo rate by 25 basis points (bps) to 6.25%, marking the first rate cut in five years. Alongside this decision, the Standing Deposit Facility (SDF) rate was lowered to 6%, and the Marginal Standing Facility (MSF) rate was adjusted to 6.5%. While the move aimed to stimulate economic growth, the central bank maintained a neutral policy stance.

Despite the cut, the Nifty Bank Index slipped below the lower levels recorded during the RBI’s first-rate reduction.

Year-to-Date Performance of Nifty Bank

Since the beginning of CY 2025, the Nifty Bank Index has declined by 1.84%. However, on February 10, 2025, it exhibited relative resilience compared to the broader Nifty50 index, which saw a steeper decline.

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

Sensex Tumbles Over 650 Points: Understanding Monday’s Sharp Market Sell-Off

The Indian stock market opened on a weak note on Monday, February 10, 2025, following global trade concerns and a sharp depreciation in the Indian rupee. As of 12:53 PM, the BSE Sensex was down by over 650 points, trading 0.85% lower at 77,202. The broader market sell-off erased ₹5.15 lakh crore in market capitalisation, bringing it down to ₹418.78 lakh crore.

US Tariff Warnings Fuel Market Anxiety

The key catalyst behind the market downturn was US President Donald Trump’s warning of fresh trade tariffs, set to be imposed this week. The announcement rekindled fears of a potential global trade war, leading to nervousness among investors. The proposed tariffs on steel and aluminium imports raised concerns about inflationary pressures and a possible slowdown in global trade, impacting investor sentiment worldwide.

Higher interest rates in the US, coupled with trade uncertainties, make emerging markets like India less attractive for foreign investors, prompting capital outflows from domestic equities.

Rupee Hits Lifetime Low: Another Blow to Market Confidence

The rupee added to the market’s woes by hitting a record low against the US dollar. In early trading, the Indian rupee depreciated to 87.95 per US dollar, breaching its previous all-time low of 87.5825 from last week. By midday, it was trading at 87.9325, down 0.6% on the day.

The sharp decline marked the rupee’s worst weekly performance since December 2022, with analysts predicting continued weakness due to the risk of new trade tariffs and upcoming US inflation data. A weak rupee increases the cost of imports, putting additional pressure on sectors dependent on foreign raw materials.

Sectoral Impact: Who Took the Biggest Hit?

The market breadth was notably weak, with 25 stocks in the red and only five managing to trade in the green. The sell-off was broad-based, with all sectoral indices trading lower.

  • Real Estate Stocks Plunge: The BSE Nifty Realty index saw the sharpest decline. 
  • Metal Stocks Under Pressure: The BSE Nifty Metal index followed suit, as fresh US tariffs on steel and aluminium threatened the global demand-supply balance, impacting major metal exporters.

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 in Red; Metal Index Down by 3% and India VIX Jumps 6% Amid Trump’s Tariff Proposal

The NSE benchmark Nifty50 index is experiencing a tough start to the week, as it extends its losing streak for the 4th session on Monday, February 10, 2025. The index slipped 180 points to 23,374 as of 10:33 AM, breaking below the psychological level of 23,500. The session opened on a negative note and witnessed further declines as volatility surged.

Global Trade Concerns Sour Market Sentiment

One of the key factors impacting investor confidence is the proposed tariff plan by US President Donald Trump. The announcement of a 25% tariff on all steel and aluminium imports into the US has heightened fears of a potential rise in US inflation, which could influence future decisions by the US Federal Reserve. The US dollar strengthened, adding further pressure on global equities.

Trump is expected to provide further details on his reciprocal tariff plan in a press conference scheduled for Tuesday or Wednesday. The move, aimed at ensuring fair treatment in trade, has sparked concerns over possible retaliatory measures from other economies, including India.

Metal Stocks Lead the Decline

With the proposed tariff plan weighing on market sentiment, the Nifty Metal Index emerged as one of the worst-hit sectors. The index was down nearly 3%, with all constituent stocks trading in the red. The anticipation of reduced export demand and the possibility of higher global steel and aluminium prices have contributed to the sell-off in metal stocks.

Foreign Investors Pull Out, India VIX Rises

Adding to the bearish sentiment, foreign institutional investors (FIIs) have been on a selling spree. So far in CY2025, FIIs have sold equities worth ₹97,463 crore, leading to increased selling pressure in domestic markets.

Meanwhile, the India VIX, which measures market volatility, has jumped by 6%, rising above 14.5. The surge in volatility indicates heightened uncertainty among market participants.

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

NATCO Gets Final Approval for Bosentan Tablets for Oral Suspension Treatment

Hyderabad-based NATCO Pharma has received final approval for its Abbreviated New Drug Application (ANDA) for Bosentan Tablets for Oral Suspension (TFOS), 32mg. The drug is a generic version of Tracleer®, originally developed by Actelion Pharmaceuticals US Inc.

First-to-File Status 

NATCO claims to have First-to-File (FTF) status for this drug, which means it is eligible for 180 days of marketing exclusivity in the U.S. This exclusivity period allows the company to be the only generic manufacturer of the drug for six months after launch. However, details about the launch timeline remain undisclosed.

Partnership with Lupin

The product will be marketed in the U.S. by Lupin Pharmaceuticals, Inc., NATCO’s partner for this ANDA. Lupin will handle distribution, but there is no official confirmation on the expected availability of the product in the market.

Indication and Usage

Bosentan TFOS is prescribed for the treatment of pulmonary arterial hypertension (PAH) (WHO Group 1) in children aged three years and older with idiopathic or congenital PAH. The drug is intended to help lower pulmonary vascular resistance (PVR), which may improve exercise ability in affected patients.

Company Background

NATCO Pharma develops and manufactures generic and specialty pharmaceuticals. The company has nine manufacturing sites and two R&D facilities in India and is involved in both domestic and international markets. Its products are approved by multiple global regulatory authorities, including the U.S. FDA, Health Canada, Brazil ANVISA, and WHO.

Natco Pharma Ltd shares were trading at ₹1,294.05, down ₹25.35 (1.92%) as of February 10, 11:45 AM. Over the past six months, the stock has declined by 13.41%, but it remains up 55.25% over the past year.

Further details on the product launch and distribution remain unavailable at this time.

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.

IRCON Secures Major Contracts for Railway Safety and Infrastructure Development

Ircon International Limited (IRCON) has received two significant contracts, reinforcing its position in India’s infrastructure sector. The company has been awarded a project by Central Railway for installing Kavach, an advanced railway safety system, and another contract for infrastructure development in Manipur. These projects highlight IRCON’s expertise in executing large-scale infrastructure initiatives.

IRCON to Implement Kavach Railway Safety System

IRCON has secured a Letter of Acceptance (LOA) from Central Railway for the installation of 665 towers as part of the Kavach railway safety system. This project involves surveying, designing, supplying, installing, testing, and commissioning the system, which aims to prevent train collisions. The contract, valued at approximately ₹194.46 crore, is set to be completed within 14 months from the LOA issuance date.

Infrastructure Development Project in Manipur

On 7 February, IRCON was awarded an EPC contract worth ₹531.9 crore for infrastructure development in Manipur. The project, granted by the Office of the Project Director, Externally Aided Projects (EAP), Public Works Department (PWD), focuses on constructing rigid pavement and lined drains across selected roads in the Imphal South Division. Covering a total length of 111.182 km, the project will be executed in collaboration with AMRIL, which holds a 74% share in the joint venture. IRCON’s contribution amounts to ₹138.29 crore, representing 26% of the total contract value. The construction work is scheduled for completion within 36 months.

IRCON Share Performance

As of February 10, 2025, at 1:50 PM, the shares of IRCON International are trading at ₹187.06 per share down by 1.13% from its previous closing price. The stock has declined by 2.72% over the past month.

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

Rail Vikas Nigam Limited Secures Railway Project Worth ₹210.78 Crores

RVNL, a government-owned company, has secured the lowest bid (L1) for a ₹210.78 crore project awarded by South Eastern Railway. The contract involves upgrading the electric traction system to enhance freight capacity.

Project Details

RVNL has been selected as the lowest bidder (L1) for a significant railway infrastructure project by the South Eastern Railway. Being the L1 bidder means that RVNL has submitted the most cost-effective proposal compared to other competing bids, allowing them to secure the contract for the project. 

Scope of the Project

The awarded contract involves upgrading the existing electric traction system from 1 x 25 KV to 2 x 25 KV in the Kharagpur-Tatanagar section of the Kharagpur/Chakradharpur division. This achievement highlights RVNL’s competitive pricing and technical expertise in executing large-scale railway projects.  

The enhancement will enable the railway system to handle higher power loads efficiently, reducing operational bottlenecks.  

Impact of the Electrification Upgrade

One of the primary objectives of this upgrade is to support a 3000 MT loading capacity which will significantly enhance freight transportation efficiency. The improved traction system will allow for the movement of heavier loads with better power distribution, making railway freight operations more sustainable and cost-effective. 

About RVNL

Rail Vikas Nigam Limited (RVNL) is a government-owned company under the Ministry of Railways. Established in 2003, RVNL specialises in infrastructure development including railway construction, electrification and modernisation projects. The company plays a crucial role in enhancing railway networks across India, ensuring better connectivity and efficiency in freight and passenger transportation.

RVNL Share Performance 

As of February 10, 2025, at 10:35 AM, with a market capitalisation of ₹794.39 billion, the shares of RVNL are trading at ₹381.40 per share, down 3.46% from the previous day’s closing price. Over the last month, the stock has declined by 3.03% and over the last year it has fallen by 10.91%. The stock’s 52-week high is ₹647 and 52-week low is ₹213.05

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.

Suzlon Energy Limited Announces Q3 Results: Know Dividend Plans

Suzlon Energy Limited presented its Q3 FY25 earnings report, highlighting robust growth and strong financial performance. The company continues to expand its order book while reinforcing its leadership in the renewable energy sector. With an increased manufacturing capacity and improved profitability, Suzlon remains well-positioned for long-term growth.

Operational Performance and Order Book Expansion

Suzlon reported a record-high order book exceeding 5.5 GW, ensuring a steady pipeline of projects for FY26 and beyond. The company has also secured non-EPC orders, focusing on high-quality projects with better margins.

On the manufacturing front, Suzlon expanded its capacity to over 4.5 GW by upgrading facilities in Pondicherry and adding new blade lines in Madhya Pradesh and Rajasthan. The S144 turbine model has gained significant traction, surpassing 5 GW in orders, showcasing Suzlon’s technological strength and customer confidence.

Execution efficiency was a key highlight, with a record quarterly delivery of 447 MW, reflecting a 163% year-on-year increase. The company delivered 977 MW in the first nine months of FY25, exceeding the entire FY24 output of 710 MW. However, industry-wide challenges such as transmission delays and land-related issues have slowed overall wind energy installations in India.

Financial Performance and Dividend Plans

Suzlon posted strong financial results in Q3 FY25, with consolidated revenue reaching ₹2,969 crores, a 91% year-on-year growth. The WTG segment’s contribution margin improved to 22.7%, up from 19.4% in the previous year. EBITDA stood at ₹500 crores, marking a 102% year-on-year increase, with margins rising to 16.8%. The company reported a quarterly profit after tax (PAT) of ₹388 crores, further strengthening its financial position.

Suzlon’s net worth reached ₹4,914 crores, with a net cash position of ₹1,107 crores. The company continues to expand its Operations & Maintenance Services (OMS) business, ensuring 96% machine availability across a 15 GW portfolio. Renom, its multi-brand OMS subsidiary, has achieved assets under management of over 3 GW, further consolidating Suzlon’s position in the sector.

Regarding dividend plans, CFO Himanshu Mody said, “Of course, we keep looking out. We will be very selective. We won’t go very aggressive in organic opportunities. There is a scheme that is impending that requires for reclassification of results. So, once that is done, we can have the dividend-paying capabilities. I hope and assume that should be completed, that scheme should go through by June, July”.

Suzlon Energy Share Performance

As of February 10, 2025, at 2:50 PM, the shares of Suzlon Energy are trading at ₹53.66 per share up by 0.09% from its previous closing price.

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

Government Sanctions ₹6,000 Cr for BSNL, MTNL 4G Expansion

To strengthen India’s telecom infrastructure, the government has allocated ₹6,000 crore for BSNL and MTNL’s 4G expansion. This move aims to enhance network coverage and reduce reliance on foreign technology.

Expansion Details 

The Indian government has approved a ₹6,000 crore financial package to speed up the 4G network expansion of BSNL and MTNL. This funding will help set up around 1,00,000 new 4G sites, improving connectivity and mobile services across the country, especially in rural areas.

Promoting Domestic Technology

A key focus of this investment is using Indian-developed technology for 4G equipment. The government aims to reduce dependence on foreign vendors and strengthen India’s telecom sector by promoting self-reliant infrastructure development.

Previous Support and Financial Revival

BSNL and MTNL have already received ₹3.22 lakh crore in revival packages since 2019, helping them achieve operating profits from FY21. This additional ₹6,000 crore will further improve their financial stability and help them compete better in the telecom industry.

About BSNL 

Bharat Sanchar Nigam Limited (BSNL), a government-owned telecom company, was established in 2000 to expand and improve telecom services across India. It offers landline, broadband, fibre and mobile services, including 4G. BSNL plays a key role in connecting rural and remote areas, supporting India’s digital growth.

About MTNL

MTNL, is a government-owned telecom company established in 1986. It provides landline, broadband, 3G, VoIP and IPTV services in Mumbai, Delhi and Mauritius. Its name means “Big City Corporation,” and its motto translates to “If MTNL is there, everything is fine.”

MTNL Share Performance 

As of February 10, 2025, at 2:50 PM, the shares of MTNL are trading at ₹54.04 per share, up 3.13% from the previous closing price. Over the last month, the stock has surged by 19.74% and over the last year it has increased by 5.32%. The stock’s 52-week high is ₹101.93 and its 52-week low is ₹31.20

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.