Axis MF Files Draft For Axis Nifty AAA Bond Financial Services – Mar 2028 Index Fund

The Axis Nifty AAA Bond Financial Services – Mar 2028 Index Fund is an open-ended target maturity index fund. It passively tracks the Nifty AAA Financial Services Bond Mar 2028 Index, aiming to replicate its performance before fees and expenses. 

The fund is for investors with moderate interest rate risk tolerance and low credit risk preferences. Its maturity date aligns with the index’s target of March 31, 2028.

Asset Allocation

The fund invests 95%-100% of its portfolio in AAA-rated financial services bonds included in the index. A maximum of 5% of assets can be allocated to money market instruments to manage liquidity needs. These allocations will help align with the benchmark while maintaining liquidity for redemption requests.

Investment Plans and Minimum Contributions

The fund offers two plans: Direct and Regular. Both plans come with Growth and Income Distribution cum Capital Withdrawal (IDCW) options.

  • Minimum investment during the NFO: ₹5,000.
  • Additional investments: ₹1,000 and multiples of ₹1 thereafter.
  • Units are priced at ₹10 per unit during the New Fund Offer period.

The New Fund Offer (NFO) dates are yet to be announced 

Expense Ratio and Fees

The fund’s expense ratio is capped at 1%, as per SEBI regulations. Direct plans exclude distributor commissions, reducing costs for investors. Importantly, there is no entry or exit load, making the fund more accessible without additional charges.

Redemption and Liquidity

Investors can redeem units on any business day, with redemption proceeds typically disbursed within three working days. Units will automatically mature on March 31, 2028, and the proceeds will be credited within the same timeline.

Benchmark and Tracking

The fund’s benchmark is the Nifty AAA Financial Services Bond Mar 2028 Index. While it aims to track the index precisely, minor deviations (tracking error) may occur due to operational factors or market conditions.

Key risks include interest rate fluctuations and liquidity concerns. However, the inclusion of AAA-rated bonds minimizes credit risk.

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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 are subject to market risks, read all scheme-related documents carefully.

Aditya Birla Sun Life Active Debt FOF: Major Changes Announced

Aditya Birla Sun Life Mutual Fund has announced modifications to its scheme, Aditya Birla Sun Life Active Debt Multi-Manager FOF, effective March 3, 2025. These changes include a name change, an updated investment strategy, a revised asset allocation, and adjustments to its benchmark and risk profile. Here’s everything you need to know:

Scheme Name and Investment Objective

The scheme will now be called Aditya Birla Sun Life Debt Plus Arbitrage FOF. Its revised investment objective introduces a dual focus on generating returns from both debt-oriented funds and the Aditya Birla Sun Life Arbitrage Fund. Previously, the scheme was exclusively invested in pure debt-oriented funds.

Revised Asset Allocation

The updated allocation strategy brings more flexibility to the portfolio. The fund will allocate 50-100% of its assets to debt-oriented mutual funds and up to 45% in arbitrage funds, diversifying its approach while catering to a wider range of investment opportunities.

Change in Benchmark

To reflect its revised investment strategy, the scheme’s benchmark will shift from the CRISIL Composite Bond Index to a hybrid benchmark:

  • CRISIL Composite Bond Index (60%)
  • NIFTY 50 Arbitrage Index TRI (40%).

This adjustment aligns the benchmark with the inclusion of arbitrage funds in the portfolio.

Risk-O-Meter Adjustment

The scheme’s risk-o-meter has been updated, moving from a “moderate” risk level to “low to high”, showcasing the varying risk levels associated with the inclusion of arbitrage funds.

Exit Window for Investors

A 30-day exit window has been provided to investors, running from January 30, 2025, to February 28, 2025. During this period, investors can redeem or switch their investments without incurring an exit load. No action is required for those who accept the changes.

These updates aim to help boost the scheme’s appeal by offering diversification and flexibility in its investment strategy, aligning with evolving market conditions and investor preferences.

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 are subject to market risks, read all scheme-related documents carefully.

Tata Power Solar Subsidiary Secures ₹455 Crore Solar Module Order

TP Solar Ltd, a subsidiary of Tata Power Renewable Energy Ltd (TPREL), has been awarded a ₹455 crore contract by Maharashtra State Power Generation Company Ltd (MSPGCL). The contract involves the supply of 300 MWp ALMM-certified solar modules under the Mukhyamantri Saur Krushi Vahini Yojana (MSKVY) 2.0 project. These modules are expected to be delivered across various locations in Maharashtra by the end of this year.

Tata Power Company Ltd shares are trading at ₹349.35, down by 0.72% today (28 Jan, 12:54 PM), with a 21.01% decline over the past six months and 8.44% over the past year.

Part of a Larger Tender

This order is a part of MSPGCL’s larger 750 MWp solar tender, which was finalized through a competitive e-reverse auction (eRA) process. The modules supplied by TP Solar will contribute to Maharashtra’s renewable energy, particularly in supporting agricultural power needs under the MSKVY 2.0 scheme.

Largest Solar Cell Facility

TP Solar operates India’s largest single-location solar cell and module manufacturing plant in Tirunelveli, Tamil Nadu. The plant has a production capacity of 4.3 gigawatts (GW) each for solar cells and modules.

 It has been designed to accommodate future expansion and a push toward increasing domestic solar manufacturing capacity.

Technological Features 

The facility uses advanced technologies like TOPCon and Mono PERC for manufacturing. It produces ALMM-certified modules, as well as domestically produced DCR modules, with India-made solar cells. This will help strengthen the solar value chain within the country.

Investment in Renewable Energy

Tata Power has invested ₹4,300 crore in the Tirunelveli facility. This is in an effort to reduce dependency on imported solar components and encourage indigenisation in the renewable energy sector.

The modules under the current contract are expected to be deployed within 2025. This project shows the role of large-scale tenders in boosting solar energy adoption in India, particularly through state-led renewable energy initiatives.

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 are subject to market risks, read all scheme-related documents carefully.

Delhivery Secures HPCL’s Lubricant Distribution Nationwide Order

Hindustan Petroleum Corporation Ltd (HPCL) has partnered with Delhivery to manage the distribution of its branded lubricants, HP Lubricants, across India. The deal involves the movement of millions of lubricant stock-keeping units (SKUs) using Delhivery’s logistics network.

The collaboration will rely on Delhivery’s Part Truck Load (PTL) logistics network and its centralized tracking systems. These tools are expected to simplify supply chain management, enabling HPCL to streamline deliveries and monitor things effectively.

Statements from the Companies

Ch Srinivas, Executive Director of HPCL’s Lubes segment, described the partnership as an opportunity to integrate HPCL’s existing systems with Delhivery’s logistics capacity. “This collaboration ensures a smooth, end-to-end distribution system while maintaining efficiency and product quality,” he said.

Suraj Saharan, co-founder of Delhivery, talked about the scale of operations and the company’s readiness to manage them. He stated that the deal highlights Delhivery’s ability to deliver solutions for large-scale logistics operations.

HPCL’s and Delhivery’s Reach

HPCL, a Maharatna public sector company, operates a vast network of over 23,000 retail outlets and 6,400 LPG distributors. It serves millions of customers and manages two refineries in addition to a lube refinery.

Delhivery, known for its extensive reach, operates across more than 18,700 pin codes in India. Since its inception, it has handled over 3.2 billion shipments and serves over 38,000 clients, ranging from startups to established enterprises.

Market Reaction

As of 3:30 PM today, on January 27, Hindustan Petroleum Corporation Ltd shares closed at ₹345.65, down by 2.04% for the day, showing a 9.29% decline over the past six months but a 14.63% increase over the past year, whereas Delhivery’s stock ended at ₹315.60, down by 1.91% today, showing a 23.47% drop in the last six months and a 26.24% decline over the past year.

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.

Understanding the Nifty Financial Services Index: Performance and Valuation Trends

The Nifty Financial Services Index (FINNIFTY) is designed to track the performance and behaviour of India’s financial market. It includes banks, financial institutions, housing finance firms, insurance companies, and other financial services providers. The index comprises 20 stocks listed on the National Stock Exchange (NSE), representing the broader financial sector.

Recent Performance of FINNIFTY

On January 27, 2025, the Nifty Financial Services Index ended lower by 0.58%. Out of the 20 constituent stocks, 18 closed in the red, with only ICICI Bank and SBI managing to end in positive territory.

January 2025 has been particularly challenging for FINNIFTY, which recorded a sharp decline of 4.80%—its steepest fall in January since 2016. This marks the 3rd time since 2021 that the index has dropped over 4% in January. Historical declines include:

  • January 2021: 4.04%
  • January 2023: 4.67%
  • January 2024: 4.61%

Valuation Trends in FINNIFTY

The Price-to-Book Value (P/BV) Ratio is a key metric used to evaluate financial stocks. As of January 24, 2025, the P/BV ratio for the Nifty Financial Services Index stood at 2.72, which is:

  • Near the lower end of its 1, 3, and 6-month ranges.
  • Close to the 1- and 2-year range lows.
  • Below the 5-year average of 3.54.

Key Takeaways

  • Broad Market Reflection: The Nifty Financial Services Index provides insights into the overall performance of India’s financial sector.
  • Steep Declines in January 2025: A 4.80% fall reflects a challenging start to the year, mirroring previous sharp January declines in 2021, 2023, and 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 Index Sees Worst January Fall; Down Over 13%

The Nifty Smallcap 100 Index is a key benchmark representing the performance of the small-cap segment of the Indian financial market. Comprising 100 actively traded stocks listed on the National Stock Exchange (NSE), it provides insights into the health and trends of this market segment.

A Sharp Fall in the Nifty Smallcap 100 Index

On January 27, 2025, the Nifty Smallcap 100 Index fell sharply by 4%, reaching its lowest point in seven months. The bearish market sentiment was evident, with 90 stocks declining while only 10 stocks managed to eke out gains. This broad sell-off underscored the challenging environment for small-cap investors.

A January to Remember

January 2025 has been particularly harsh for the Nifty Smallcap 100 Index:

  • The index has declined by 13.3% in January, marking its steepest fall in the month since 2012.
  • This represents an 18% correction from the highs seen in December 2024.
  • The last double-digit January correction occurred in 2016 when the index fell by 11.02%.

Valuation Perspective of Smallcap Index

As of January 24, 2025, the Nifty Smallcap 100 Index’s Price-to-Earnings (PE) ratio stood at 31.2. Here’s how it compares:

  • Near-term averages: 1- and 3-month ranges align closely with the current PE.
  • 6-month average: Slightly higher at 32.83, indicating a recent moderation in valuations.
  • Longer-term averages: The current PE remains above the 1-, 2-, and 5-year averages of 30.57, 26.09, and 28.13, respectively.

Performance Comparison with Nifty50

After a strong performance in recent years, the Nifty Smallcap 100 Index has lagged behind the broader Nifty50 Index in 2025. This reversal indicates a shift in market dynamics, with large-cap stocks possibly gaining favour amidst market 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 the securities market are subject to market risks, read all the related documents carefully before investing.

Nifty Bank Index Faces Pressure: 3rd Consecutive January in Red?

The Nifty Bank Index is a barometer of the Indian banking sector, comprising the most liquid and large-cap banking stocks. On Monday, January 27, 2025, the index opened below the critical psychological level of 48,000 and touched an intraday low of 47,844.15. Despite a partial recovery, the index remains under pressure, continuing a downward trend seen throughout the month.

Intraday Movements on January 27, 2025

By 2:42 PM, the Nifty Bank Index was trading 0.58% lower, reclaiming the 48,000 mark after earlier losses. However, the advance-decline ratio highlighted bearish sentiments, with 8 stocks in red and only 4 stocks posting gains. This reflects the broader challenges facing the banking sector.

Key Losers: Disappointing Earnings Impact Stock Performance

  • IDFC First Bank:
    IDFC First Bank emerged as the worst performer, plunging nearly 9% to hit a fresh 52-week low. The decline came on the back of disappointing Q3 results, with a more than 50% drop in standalone net profit. The bank also reported a decline in its net interest margin (NIM), attributed to a reduced microfinance business and increased wholesale banking composition.
  • AU Small Finance Bank:
    Shares of AU Small Finance Bank tumbled 6% after announcing quarterly results. The earnings report signalled challenges that further dampened investor confidence.

Top Gainer: ICICI Bank Shines Amidst Challenges

In contrast to its peers, ICICI Bank recorded a 1.44% gain as of 2:42 PM. The positive momentum followed its robust quarterly earnings, which showcased healthy loan growth and improved profitability. The bank’s resilience amidst broader sectoral weaknesses stands out.

A Month to Forget: January’s Grim Performance

As of January 27, 2025, the Nifty Bank Index had fallen 5.64% for the month, marking its worst January performance since 2017. For context, the index saw a 5.42% drop in January 2023, and if it closes in red this month, it will be the 3rd consecutive January to witness negative returns. This trend underscores the sector’s vulnerability to cyclical pressures and market sentiment at the start of the year.

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 Mutual Funds With the Highest Direct Plan AUM in December 2024

The mutual fund (MF) industry in India has witnessed remarkable growth in direct plan investments. According to a recent analysis of December 2024 data, direct plans now constitute 46% of the total mutual fund assets, amounting to a staggering ₹31.86 lakh crore. This blog provides an overview of the top fund houses excelling in direct plan AUM, highlighting their contributions and proportions.

1. SBI Mutual Fund: The Leader in Direct Plan AUM

SBI Mutual Fund stands at the forefront of the industry with direct plan assets worth ₹6.31 lakh crore. Impressively, direct plans contribute 57% to SBI MF’s overall AUM, showcasing its dominance in this segment. 

2. ICICI Prudential Mutual Fund

With a direct plan AUM of ₹4.18 lakh crore, ICICI Prudential MF secures the 2nd position. Direct plans account for 47% of its total AUM.

3. HDFC Mutual Fund: Solidifying the Third Spot

HDFC Mutual Fund occupies the 3rd position with ₹3.33 lakh crore in direct plan assets. Direct plans form 42% of its total AUM.

4. Nippon India Mutual Fund

Nippon India MF ranks 4th with a direct plan AUM of ₹3.15 lakh crore. Notably, 54% of its total assets are derived from direct investments.

5. Kotak Mutual Fund: Rounding Out the Top Five

Kotak Mutual Fund secures the 5th position with a direct plan AUM of ₹2.39 lakh crore. Direct plans contribute 48% of its total AUM.

Other Notable Mentions

Several other fund houses also garner substantial assets through direct plans:

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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.

UltraTech Cement Eyes Acquisition of HeidelbergCement India

According to the news reports, UltraTech Cement, the flagship company of the Aditya Birla Group and India’s largest cement manufacturer by capacity, is reportedly in advanced talks to acquire the Indian operations of HeidelbergCement. The deal, valued at approximately ₹3,381 crore based on HeidelbergCement’s January 24 closing price, involves the potential purchase of a 69.39% stake held by Heidelberg Materials Group. This acquisition aligns with UltraTech’s strategic pursuit of inorganic growth in a highly competitive market.

UltraTech Cement’s Strategic Acquisitions

UltraTech Cement has consistently focused on acquisitions to solidify its position as the industry leader. In 2024, the company acquired a 55.49% stake in India Cements through a combination of transactions, including an open offer. Additionally, it purchased an 8.69% stake in Star Cement for ₹851 crore in December 2024. With a current capacity exceeding 120 million tonnes per annum (MTPA) and plans to expand to 140 MTPA in the next five years, UltraTech remains the dominant player in the Indian cement sector.

Industry Consolidation and Heidelberg Cement’s Background

The Indian cement industry has witnessed significant consolidation over the past five years, with major players securing 97 MTPA through mergers and acquisitions, compared to 51-53 MTPA from organic growth. Notable deals include Adani Group’s 2022 acquisition of Ambuja Cements and ACC Limited for $6.6 billion, making it the second-largest cement manufacturer in India.

HeidelbergCement entered the Indian market in 2006 by acquiring Mysore Cements and expanding its capacity to 14 MTPA. Its Indian operations include four integrated plants, four grinding units, and a terminal, making it a valuable asset in the competitive market.

UltraTech Cement Share Performance

As of January 27, 2025, at 2:00 PM, UltraTech shares are trading at ₹11,242.45 per share, down 0.38% from the previous closing price. Over the last month, the stock has fallen by 1.42%. While over the year it has surged by 9.4%.

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.

BSE Sensex Witnesses Worst January Since 2017: Understanding the Drastic Fall

The BSE Sensex, India’s benchmark stock index, experienced a steep fall of 800 points on January 27, 2025, marking a decline of over 1%. This performance contributed to its worst January since 2017, with the index losing 3.5% so far this month. A significant rise in India VIX, up by 9% to 18.30, highlights growing market volatility.

Adding to the dismay, the market capitalisation of BSE-listed firms plummeted by ₹10 lakh crore in a single session, dropping below ₹410 lakh crore from ₹419.5 lakh crore in the previous session as of January 27, 2025. 

 

Key Drivers Behind the Downfall

  1. Weak Corporate Earnings
    Disappointing Q3 earnings from Indian corporates have dampened investor sentiment. Many sectors have reported slower-than-expected recoveries, further straining an already cautious market due to high valuations.
  2. Global Uncertainty
    Persistent foreign outflows and concerns around U.S. trade policy have compounded market pressures.
  3. Budget 2025 Speculations
    As the Union Budget 2025 approaches, markets are grappling with uncertainty. Investors are keenly observing whether the government will balance fiscal prudence with measures to boost consumption. Concerns over a potential shift toward populist measures or relaxed fiscal discipline could add further volatility.

Sectoral Performance: The Advance-Decline Ratio

The market breadth remained negative, with 24 stocks declining compared to just six advancing.

Historical Context: Worst January Since 2017

The 3.5% correction in January 2025 marks the worst monthly performance for the Sensex since 2017. The last significant January decline occurred in 2021 when the index fell by 3.07%.

Conclusion: A Month of Challenges

January 2025 has been a challenging month for Indian equities, with weak earnings, global headwinds, and investor uncertainty driving the Sensex to its worst start in 8 years. As Budget 2025 looms, all eyes remain on how policymakers. 

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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.