Fertiliser Stocks Surge as Budget 2025 Focuses on Agriculture Growth

The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman, introduced several key measures aimed at boosting the agriculture sector. The government’s focus on improving irrigation, promoting crop diversification, and enhancing farmer income has generated positive sentiment in the fertiliser industry. Following these announcements, shares of fertiliser companies witnessed a notable rise, reflecting investor optimism about increased demand and sectoral growth.

Agriculture Reforms Drive Fertiliser Stock Gains

One of the significant highlights of the budget was its emphasis on strengthening rural infrastructure and improving agricultural productivity. As farmers represent the primary consumer base for fertilisers, policies aimed at increasing their income and efficiency directly impact the fertiliser sector. Following the budget announcement, shares of several fertiliser companies surged by up to 4%, reflecting market confidence in the government’s vision for rural development. 

The stock of National Fertilizer went as high as ₹113.35 per share(or 3.72%)and, Chamal Fertilizers touched an intraday high of ₹513.85(or 1.93%). While Gujarat State Fertilizers went up to ₹211.99 per share(or 3.37%).

Additionally, the budget outlined multiple initiatives to uplift the rural economy, which is expected to drive higher fertiliser consumption. The proposed improvements in irrigation facilities and sustainable farming practices are likely to boost overall agricultural output, increasing the demand for fertilisers in the long term.

New Urea Plant to Strengthen Domestic Production

A major step announced in the budget was the establishment of a large-scale urea production plant in Assam, with an annual capacity of 12.7 lakh metric tonnes. This initiative aligns with the government’s long-term goal of reducing dependence on fertiliser imports while ensuring adequate domestic supply. Increased local production is expected to stabilise prices, improve availability for farmers, and strengthen the overall fertiliser industry.

Furthermore, the government’s continued emphasis on self-sufficiency in fertiliser production reinforces its commitment to supporting both the agricultural and manufacturing sectors. The setting up of new plants and expansion of existing facilities are likely to provide additional economic benefits, including employment generation and regional industrial development.

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.

Laurus Labs API Facility Inspection Concluded with 1 USFDA Observation

Laurus Labs received an update on its Active Pharmaceutical Ingredient (API) manufacturing facility, Unit-4. The US Food and Drug Administration (USFDA) conducted an inspection of the facility located in Andhra Pradesh from January 27 to 31, 2025. The inspection concluded with the issuance of a Form 483 with only 1 observation.

The company has confirmed that it will address the observation within the stipulated timelines. While details of the specific observation have not been disclosed, such regulatory feedback is a routine part of pharmaceutical compliance and does not necessarily indicate critical concerns.

Share price of Laurus Labs made an intraday high of ₹588.30 on NSE. At 12:54 PM, the stock price was trading down by 0.91%. 

Trump Administration’s Funding Halt and Market Reaction

On January 24, the Trump administration paused the disbursement of funds to programmes treating HIV in developing countries for at least 90 days. This move was in line with the ‘America First’ policy, which prioritises domestic interests in policymaking. The decision impacted the US President’s Emergency Plan for AIDS Relief (PEPFAR), a programme that has been instrumental in combating HIV globally.

Following the announcement, shares of Laurus Labs tumbled nearly 14%, influenced by profit-booking after its December quarter earnings report. In response, the company released a statement clarifying that it “reasonably believes” there will not be a significant impact on its business.

Temporary Waiver Restores Funding for Critical HIV Programmes

Amid growing concerns over the funding halt, US Secretary of State Marco Rubio issued a temporary waiver on January 28. This waiver allowed for the continuation of “life-saving humanitarian assistance”, including the PEPFAR programme, but excluded services related to abortion, gender diversity, transgender initiatives, and non-essential healthcare services.

The White House officially announced the waiver on 29th January, a move that was widely welcomed by global health agencies.

UNAIDS and Global Health Community Applaud the Waiver

Following the waiver announcement, UNAIDS Executive Director Winnie Byanyima expressed relief, stating:

“UNAIDS welcomes this waiver from the US Government, which ensures that millions of people living with HIV can continue to receive life-saving HIV medication during the assessment of US foreign development assistance.”

PEPFAR, established during the George W. Bush administration, has played a pivotal role in the fight against HIV/AIDS. Over the years, it has been credited with saving millions of lives, disbursing billions in funding, and providing antiretroviral (ARV) treatment to over 20 million people across 55 countries.

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

Budget Day Gold and Silver Prices on February 1: Check Rates in Your City

On Saturday, February 1, 2025, the day of the Union Budget 2025, the price of gold increased as of 11:56 AM. Gold prices on Budget Day have risen by over ₹100 in India.

Gold prices have increased over the last couple of trading sessions in major metro cities.

  • In Mumbai, 24-carat gold is priced at ₹8,228 per gram, while 22-carat gold is at ₹7,542 per gram.
  • The 24-carat gold price stands at ₹82,280 per 10 grams, up by ₹120 as of 11:56 AM.
  • In Delhi, 22-carat gold is priced at ₹75,295 per 10 grams, and 24-carat gold is trading up by ₹120, at ₹82,140 per 10 grams.

Gold Prices Across Major Indian Cities (February 1, 2025)

Here is a detailed breakdown of gold prices as of February 01, 2025:

City 24 Carat Gold (per 10gm in ₹) 22 Carat Gold (per 10gm in ₹)
Chennai 82,520 75,643
Hyderabad 82,470 75,598
Delhi 82,140 75,295
Mumbai 82,280 75,423
Bangalore 82,340 75,478

Silver Prices in India (February 1, 2025)

Silver prices have declined on Budget Day, with a drop of about ₹500 as of 11:55 AM.

Silver Prices Across Major Indian Cities

 

City Silver Rate in ₹/KG 
Mumbai 93,610
Delhi 93,450
Kolkata 93,710
Chennai 93,850

Key Takeaways

  • Gold Prices: 22-carat and 24-carat gold prices have increased in India on Union Budget 2025, with 24-carat gold up by over ₹100 across major metro cities.
  • Silver Prices: Silver prices have decreased due to profit booking, showing a drop across major cities.

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

Budget 2025: Insurance Stocks Plunge Although FDI Limit Increased

Finance Minister Nirmala Sitharaman, in her Budget 2025 speech, announced an increase in the foreign direct investment (FDI) limit for the insurance sector from 74% to 100%. The change applies to insurers that reinvest the entire premium collected within India. The government aims to attract more foreign capital and increase insurance penetration in the country.

Immediate Market Impact

Shares of major Indian insurance companies like HDFC Life, SBI Life, and ICICI Prudential Life saw sharp declines of up to 6% today, on Saturday, February 1, despite an initial rally. The stocks had gained over 3% earlier in the session after the government announced an increase in the Foreign Direct Investment (FDI) limit to 100% from 74%. LIC, Go Digit Insurance, Max Financial, ICICI Lombard and New India Assurance also traded higher following the announcement.

However, the momentum reversed after the Budget proposed higher tax exemptions under the new tax regime, making income up to ₹12 lakh tax-free through rebates. Since the tax new regime creates concerns. ICICI Prudential fell 3.9% to ₹592.55, HDFC Life dropped 4.4% to ₹609.9, and SBI Life declined 6% to ₹1,396.

Industry Background

India’s insurance sector consists of 24 life insurers, 26 general insurers, six standalone health insurers, and one reinsurer- General Insurance Corporation. Over the years, the government has gradually increased the FDI limit in the sector. 

It was raised from 26% to 49% in 2015, then to 74% in 2021, and now to 100%.

Growth in FDI Inflows

The insurance sector has been among the top recipients of FDI in India’s service industry. However, insurance penetration in India remains lower than in many other countries. The increased FDI limit is expected to bring in more foreign investment, which could help insurers expand their operations.

Foreign Investment 

As of the December quarter, foreign shareholding in major insurance companies varied significantly. HDFC Life had the highest foreign holding at 25.14%, followed by ICICI Lombard at 24.36%. ICICI Prudential and SBI Life reported lower foreign stakes at 12.78% and 22.48%, respectively.

The insurance sector has seen multiple FDI limit revisions over the years. In the 2021 Budget, the cap was raised from 49% to 74%, allowing greater foreign participation. With the latest increase to 100%, the sector will be interesting to watch.

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.

Budget 2025: Kisan Credit Card Loan Limit Increased to ₹5 Lakh

The Union Budget 2025 has introduced significant measures to strengthen the agricultural sector, with a notable enhancement of the Kisan Credit Card (KCC) scheme. The government has raised the KCC loan limit from ₹3 lakh to ₹5 lakh, aiming to provide farmers with greater access to affordable credit. This initiative is anticipated to support farmers in adopting modern agricultural practices and improving their livelihoods.

Enhancement of the Kisan Credit Card Scheme

The Kisan Credit Card scheme, established in 1998, has been instrumental in providing timely credit to farmers for their agricultural needs. The recent increase in the loan limit to ₹5 lakh reflects the government’s commitment to addressing the evolving financial requirements of the farming community. This adjustment is expected to enable farmers to invest in advanced farming equipment, quality seeds, fertilisers, and efficient irrigation systems, thereby enhancing crop yields and income.

Anticipated Benefits for the Agricultural Sector

The enhancement of the KCC loan limit is poised to yield several benefits for the agricultural sector. Firstly, it is expected to reduce farmers’ dependence on informal lending sources, which often come with exorbitant interest rates, thus alleviating their financial burden. Secondly, with increased access to formal credit, farmers can adopt modern agricultural practices, leading to improved productivity and sustainability. Additionally, this move is likely to stimulate rural economic growth by increasing farmers’ purchasing power, thereby boosting demand in rural markets.

Conclusion

The government’s decision to raise the Kisan Credit Card loan limit to ₹5 lakh in the Union Budget 2025 signifies a strategic effort to empower farmers financially. By facilitating greater access to affordable credit, this initiative aims to enhance agricultural productivity, improve farmers’ livelihoods, and stimulate overall rural economic development.

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. 

Budget 2025: Customs Duty Waived on 36 Life-Saving Drugs

The government has removed customs duty on 36 life-saving medicines, Finance Minister Nirmala Sitharaman announced while presenting the Union Budget 2025-26. This is aimed at reducing the cost of treatment for patients suffering from cancer and rare diseases. In addition to this, customs duty has also been waived on raw materials used to manufacture these drugs.

Additional Concessions

Along with the complete duty exemption on 36 medicines, six more life-saving drugs will now be subject to a reduced customs duty of 5%. The government has also exempted medicines provided under 13 patient assistance programs from basic customs duty, making treatments accessible to those who rely on financial aid.

Impact on Cancer Treatment

Cancer treatment is expensive in India, and high import duties on medicines have been a major concern. According to the National Centre for Disease Control (NCDC), India saw 1.46 million new cancer cases in 2022. The exemption is expected to bring some relief to families struggling with treatment costs. Similarly, around 70 Million Indians are suffering from rare diseases in India.

Previous Duty Cuts

This announcement follows last year’s reduction of customs duties on three cancer medicines, Trastuzumab Deruxtecan, Osimertinib, and Durvalumab from 10% to nil. As per the reports, healthcare experts have been calling for further tax relief on cancer-related treatments, including radiotherapy machines, which still attract high duties.

Daycare Cancer Centres in District Hospitals

As part of its broader healthcare plan, the government has also proposed setting up 200 daycare cancer centres in district hospitals in 2025-26. These centres will provide chemotherapy, immunotherapy, and other essential treatments, reducing the need for patients to travel to major cities.

Medical Education and Healthcare Expansion

The government plans to add 10,000 medical seats next year and 75,000 seats over the next 5 years to address the shortage of healthcare professionals. There is also a push to promote medical tourism by improving infrastructure and specialised treatment facilities.

The customs duty exemption and other measures are expected to lower treatment costs and improve access to healthcare for patients across the country.

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.

Will Phones, TVs, and Electronics Get Cheaper Post Budget 2025?

In an effort to strengthen India’s electronics manufacturing sector, Finance Minister Nirmala Sitharaman announced significant reductions in import duties on key components in the Union Budget 2025. These changes are expected to make mobile phones, smart TVs, and other electronic devices more affordable for consumers while improving India’s role in global supply chains.

One of the most significant reductions is in the Basic Customs Duty (BCD) on mobile phones, chargers, and printed circuit board assemblies (PCBAs), which has been cut from 20% to 15%. This move is expected to ease production costs and improve accessibility to high-end devices such as iPhones and flagship Android smartphones.

Understanding India’s Import Duties

Before delving into the implications of the new tax cuts, it’s essential to understand the various types of import duties levied in India:

  • Basic Customs Duty (BCD): The primary duty imposed on imported goods.
  • Additional Customs Duty: Imposed to equalise the excise duty on domestic goods.
  • Countervailing Duty (CVD): A tax to offset subsidies given to foreign manufacturers.
  • Anti-Dumping/Safeguard Duty: Applied to prevent unfair trade practices and protect local industries.
  • Other levies: Additional charges such as the Social Welfare Cess, Agriculture Infrastructure Development Cess (AIDC), and Integrated Goods and Services Tax (IGST).

These duties significantly impact the final cost of imported electronics. The latest reductions are expected to bring down manufacturing costs, indirectly leading to lower prices for end consumers.

Reduction in Duties for Mobile Phone Components

One of the biggest highlights of the Budget 2025 is the full exemption of customs duties on several mobile phone components. These include Printed Circuit Board Assemblies (PCBA),
Camera Modules, USB Cables and Fingerprint Readers

Previously, these components were taxed at 2.5%, but with the new exemptions, domestic manufacturers will see lower production costs, which could make smartphones, including iPhones, more affordable in India.

This policy is also in line with the Production Linked Incentive (PLI) scheme, which encourages global and domestic brands to set up manufacturing plants in India, reducing dependence on imports.

Impact on Smart TVs: What’s Changing?

For television manufacturers, the government has announced a full exemption of customs duties on open cells used in LED and LCD TV panels.

Exempting Customs Duties on Battery Materials 

Beyond electronics, the government has also prioritised electric vehicle (EV) manufacturing by exempting customs duties on critical battery materials.

Duty Exemptions Announced for: Cobalt Powder, Lithium-Ion Battery Scrap and 12 other critical minerals. These materials are crucial for the production of lithium-ion batteries, which power not only EVs but also smartphones, laptops, and other electronic devices.

With this move, the government aims to: Reduce dependence on imported batteries, Boost domestic EV production and Lower costs for electric 2-wheelers and e-wheelers. 

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

Budget 2025 Boosts EV Adoption; Auto Stocks Like Maruti Suzuki Gain

Auto stocks surged on February 1, 2025, following the Union Budget 2025, which introduced measures aimed at accelerating electric vehicle (EV) adoption and strengthening infrastructure. Finance Minister Nirmala Sitharaman unveiled several initiatives to develop an ecosystem for solar PV cells and EV batteries, bolstering investor sentiment and driving gains across major auto stocks.

Maruti Suzuki Leads Gains Amid EV Plans

Maruti Suzuki’s share price rallied over 6%, benefiting from the Budget’s EV-focused incentives. The automaker is set to launch its first electric vehicle, the E-Vitara, under its premium NEXA brand in 2025. With a projected range of over 500 km and advanced safety features, Maruti’s entry into the EV market has heightened investor confidence. The stock also saw positive momentum from a 6.5% rise in January sales.

Mahindra & Mahindra Benefits from Local Battery Incentives

Mahindra & Mahindra (M&M), the best-performing Nifty 50 auto stock of 2024, gained over 3% by 2:13 PM, buoyed by incentives for local battery manufacturing. M&M’s focus on electric SUVs has kept the stock in an uptrend, further supported by 18% growth in domestic sales and nearly doubled exports in January. Hyundai Motor India also saw a 2% increase, expected to gain from similar Budget-driven advantages.

Tata Motors Faces Pressure Despite EV Leadership

While Tata Motors, India’s largest EV maker, has led the market in electric mobility, its stock declined over 1% following a dip in January sales. Despite its dominance in the sector, factors such as high battery costs and supply chain constraints continue to pose challenges.

Government’s E-Drive Scheme and Policy Outlook

The Prime Minister’s E-Drive scheme, backed by an ₹109 billion outlay, underscores India’s commitment to expanding EV adoption. The scheme aims to strengthen domestic EV manufacturing and charging infrastructure. However, obstacles such as high battery costs, reliance on imported components, and an inadequate charging network remain key concerns.

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 Bank Share Price in Focus on Union Budget 2025

HDFC Bank continues to hold its position as the largest private sector bank in India in terms of both advances and deposits. As of Q2FY25, its net advances stood at ₹24,951 billion, demonstrating its strong lending capabilities. The bank maintains a vast retail presence with a market-leading share across multiple product categories. At the end of Q2FY25, HDFC Bank operated 9,092 branches and employed 2,07,000 people, underscoring its expansive reach and operational scale.

HDFC Bank Share Price Movement on Budget Day

On February 1, 2025, HDFC Bank’s share price exhibited high volatility in response to the Union Budget announcement. The stock:

  • Opened at ₹1,697.50
  • Made an intraday high of ₹1,713 
  • Dropped to an intraday low of ₹1,676.05
  • Was trading at ₹1,685 (-0.80%) at 1:54 PM

This fluctuation reflected market reactions to budget announcements, investor sentiment, and broader economic indicators.

Leadership Change at HDFC Bank

In a significant leadership development, Mr V. Chakrapani, who was appointed Group Head – Change Agent on April 1, 2024, is set to retire on January 31, 2025. Over a 30-year tenure, he played a crucial role in shaping the bank’s growth and expansion across diverse business lines. The bank acknowledged his instrumental contributions in driving strategic transformation initiatives.

HDFC Bank Q3FY25 Financial Performance

HDFC Bank posted a 2.2% year-on-year (Y-o-Y) increase in net profit to ₹16,735.50 crore for Q3FY25, despite slower core income growth and higher slippages from agricultural loans.

Key Financial Metrics

  • Net Interest Income (NII): ₹30,650 crore (+7.7% Y-o-Y)
  • Other Income: ₹11,450 crore (Flat Y-o-Y)
  • Mark-to-Market Gain on Investments: ₹70 crore (vs ₹1,470 crore in Q3FY24)
  • Net Interest Margin (NIM): 3.43%, unchanged Y-o-Y but lower than 3.5% in Q2

Provisioning and Asset Quality Trends

HDFC Bank saw an improvement in provisioning, but asset quality deteriorated:

  • Provisions and Contingencies: ₹3,150 crore (vs ₹4,220 crore in Q3FY24)
  • Gross Non-Performing Assets (GNPA): ₹36,019 crore (vs ₹34,251 crore in Q2FY25 and ₹31,012 crore in Q3FY24)
  • GNPA Ratio: 1.42% (vs 1.36% in Q2FY25 and 1.26% in Q3FY24)

The rise in non-performing assets (NPAs) signals increased stress in loan quality, particularly from the agriculture segment.

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.

CESC Expands Power Distribution Business with Chandigarh Acquisition

CESC Limited, a major player in India’s power distribution sector, has strengthened its market presence with a significant acquisition. Its wholly owned subsidiary, Eminent Electricity Distribution Limited (EEDL), has successfully acquired Chandigarh Power Distribution Limited (CPDL), marking a strategic expansion in the power sector.

Share price of CESC made an intraday high of ₹145.29 on NSE. At 1:45 PM, the stock price was down by 2.29 as on February 1, 2025. 

The Acquisition at a Glance

The acquisition follows the Chandigarh Electricity Reforms Transfer Scheme, 2025, which mandates the transfer of assets, liabilities, and personnel of the Electricity Wing of the Engineering Department, Chandigarh (EWEDC), to CPDL. This transition is set to take effect from February 1, 2025.

With this acquisition, CPDL will now operate under EEDL as a wholly owned subsidiary, making it a step-down subsidiary of CESC Limited.

Financial Details of the Transaction

  • Total Consideration: ₹871 crore
  • Form of Payment: Cash transaction
  • Equity Stake Acquired: 100%
  • Completion Date: Expected by February 1, 2025

The transaction has received the necessary approvals from the Administration of the Union Territory of Chandigarh, and the execution of the share purchase agreement finalises the process.

About Chandigarh Power Distribution Limited (CPDL)

CPDL was incorporated on April 23, 2022, and is licensed by the Joint Electricity Regulatory Commission under the Electricity Act, of  2003. It is responsible for the distribution and retail supply of electricity in the Union Territory of Chandigarh. With this transition, CPDL will officially commence business operations as a subsidiary of EEDL.

Strategic Rationale for the Acquisition

CESC has a long-standing presence in India’s power distribution market, and this acquisition aligns with its broader strategy of expanding its distribution footprint. The inclusion of Chandigarh into its portfolio strengthens its position as a key player in the regulated power distribution business.

This move also comes as part of India’s ongoing power sector reforms, which aim to enhance efficiency, ensure better service delivery, and attract private sector investment in electricity distribution.

Regulatory and Operational Impact

With the acquisition now formalised, CPDL will be integrated into CESC’s operational framework, ensuring a smooth transition of services for consumers in Chandigarh. The transfer of EWEDC’s assets, liabilities, and personnel to CPDL ensures continuity in service delivery.

Given that no related party transactions are involved, this acquisition stands as an independent expansion move by CESC, solely aimed at enhancing its distribution business.

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