Nifty Smallcap 100 Index: Current Performance and Insights into Small-Cap Stocks

The Nifty Smallcap 100 Index is a benchmark designed to mirror the behaviour and performance of the small-cap segment within the Indian financial market. Comprising 100 tradable stocks listed on the National Stock Exchange (NSE), this index serves as a significant indicator of small-cap market trends and investor sentiment.

Recent Performance of the Index

As of 1:19 PM on January 20, 2025, the Nifty Smallcap 100 Index has shown outperformance, gaining approximately 1% intraday. The index is trading near its day’s high, supported by strong market breadth.

  • Market Breadth:
    • 71 stocks are trading in the green.
    • 29 stocks are in the red.
    • Notably, 5 stocks have surged over 5%, while 10 have risen between 3-5%.

Conversely, only 2 stocks have declined by more than 5%, underscoring the overall bullish sentiment.

Performance Over Time

Over the past 2-year, the Nifty Smallcap 100 Index has delivered an impressive gain of approximately 80%. However, 2025 has brought some profit-booking pressures:

  • Year-to-Date (YTD) Performance
    • The index is down by 4.95% as of January 20, 2025.
    • It has, however, recovered nearly 6% from the lows of January 13, 2025.

Valuation Analysis: Price-to-Earnings (PE) Ratio

The Price-to-Earnings (PE) ratio provides valuable insights into the index’s valuation:

  • Current PE Ratio (as of January 17, 2025): 32.64
  • Comparative Analysis
    • Below its 1-month average of 34.01 and 3-month average of 34.47.
    • Slightly lower than its 6-month average of 32.73.
    • Above its 1, 2, and 5-year average PE values, indicating relatively higher valuations over a longer time frame.

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.

Cyient Strengthens Partnership with Deutsche Aircraft

In a significant development for the aerospace industry, Cyient, a global leader in intelligent engineering services, has expanded its strategic partnership with Deutsche Aircraft. This collaboration focuses on the D328eco®, a 40-seater regional turboprop, underlining their shared commitment to innovation and sustainability in aviation.

Cyient’s share price is trading with a modest decline of 0.34% as of 1:25 PM on 20 January 2025.

Key Highlights of the Partnership

  1. Multi-Year Contract
    Cyient will manage advanced technical documentation for the D328eco®, supporting its lifecycle with cutting-edge solutions.
  2. Enhanced User Experience
    The partnership incorporates a modular and scalable architecture, ensuring a personalised experience and seamless access to technical documents across devices.
  3. Technological Integration
    Leveraging Cyient’s AI products, the solution promises faster time to market and optimised service delivery for Deutsche Aircraft’s global clientele.

Advancing Sustainability and Innovation

The D328eco® is designed to lead advancements in sustainable aviation, a vision strongly supported by this partnership. Cyient’s expertise in aerospace systems, software, and aftermarket solutions positions it as a global player driving technological progress.

Krishna Bodanapu, Executive Vice Chairman and Managing Director of Cyient, expressed enthusiasm about the collaboration, highlighting its role in shaping the future of aerospace innovation and sustainable technologies.

Support for the ‘Make in India’ Initiative

This partnership marks a critical step in promoting the “Make in India” initiative. According to Nico Neumann, Co-CEO of Deutsche Aircraft, this collaboration reaffirms their commitment to strengthening ties with India and advancing regional aviation capabilities.

About Cyient and Deutsche Aircraft

  • Cyient

Established in 1991, Cyient partners with over 300 clients globally, including 30% of the top 100 innovators. It specialises in engineering and technology solutions aimed at creating a sustainable future.

  • Deutsche Aircraft

A leading German aircraft manufacturer, Deutsche Aircraft is dedicated to developing climate-neutral regional aviation through its flagship product, the D328eco®.

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 Surges Over 800 Points: Sharpest Rally Since November 2024

On January 20, 2025, at 12:33 PM, the Nifty Bank Index witnessed a sharp surge, rising by over 800 points or 1.69%, marking its most significant single-day rally since November 25, 2024. Out of the 12 constituent stocks, 11 traded in the green, reflecting a robust advance-decline ratio for the day.

Despite the strong rally on January 20, 2025, the Nifty Bank Index is down by 2.80% on a year-to-date (YTD) basis as of the same date.

Key Contributors to the Rally

3major banking stocks—Kotak Bank, HDFC Bank, and SBI—played a pivotal role in driving the gains. Collectively, these 3 banks contributed 614 points to the overall rise in the Nifty Bank Index.

In contrast, Axis Bank was the only stock trading in the red during this rally, bucking the overall positive sentiment in the sector.

Kotak Bank: Reviving Investor Confidence

Kotak Bank emerged as a sentiment booster for the banking sector. The stock’s positive performance was underpinned by its improving net interest margin (NIM). After declining for 3 consecutive quarters, the NIM stabilised and expanded to 4.93% in Q3 FY25, up from 4.91% in Q2 FY25. This stability has reassured investors about the bank’s financial health and operational efficiency.

Evaluating the Sector: Nifty Bank’s Price-to-Book Ratio

The Price-to-Book (P/B) ratio, a crucial metric for evaluating banking stocks and the sector, reflects the current valuation trends:

  • P/B Ratio on January 17, 2025: 2.14, close to its 1, 3, and 6-month lows.
  • The ratio is also near its 1 and 2-year lows. 
  • Furthermore, it is trading below its 1, 3, and 6-month averages, as well as its 2 and 5-year long-term averages.

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.

Nifty50 Trades Above 23,300 Led By Kotak Bank and HDFC Bank; PE Below Long-Term Averages!

The NSE benchmark index, Nifty50, started the trading session on January 20, 2025, on a positive footing. However, volatility soon gripped the market, causing the index to briefly slip below the crucial 23,200 mark. Despite this, the index rebounded in mid-session trades to hover above the 23,300 level, registering a 0.61% gain. The volatility gauge, India VIX, surged over 5%, reflecting heightened market uncertainty.

Amid this turbulence, buying interest emerged at intraday lows, supported by broad participation across sectors. The advance-decline ratio turned positive, with 27 stocks advancing against 23 decliners by mid-session.

Key Contributors to Nifty50’s Gains

As of 11:58 AM, Kotak Mahindra Bank and HDFC Bank were the top contributors to the index’s gains.

Together, these 3 banking heavyweights contributed approximately 104 points to the Nifty50, offsetting some of the drag caused by IT majors.

Kotak Mahindra Bank Soars Over 9%

Kotak Mahindra Bank share price surged more than 9%, marking its highest single-day gain since October 2020. The rally came after the lender reported strong quarterly earnings.

  • Net Profit: Increased by 10% year-on-year to ₹3,305 crore for Q3FY25, compared to ₹3,005 crore in the previous year.
  • Net Interest Income (NII): Grew by 10% year-on-year to ₹7,196 crore, underscoring healthy core income growth.

IT Majors Act as Drags

On the flip side, IT bellwethers TCS and Infosys weighed down the Nifty50, limiting its upward momentum. These stocks exhibited weakness despite the overall positive sentiment in the banking and financial sectors.

Valuation Insights: Nifty50 PE Ratio Below Long-Term Averages

As of January 17, 2025, Nifty50’s price-to-earnings (PE) ratio stood at 21.36. This level is trading near 1, 3, and 6-month lows and remains below its 2- and 5-year long-term averages. 

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.

How Long to Turn ₹1 Lakh into ₹2 Lakh? The Rule of 72 Explained with a Handy Table

What is the Rule of 72?

The Rule of 72 is a quick and simple formula used to estimate how long it will take for an investment to double at a fixed annual rate of interest. You divide 72 by the annual interest rate (in percentage terms), and voilà, you get the approximate number of years for your money to double.

Formula of the Rule of 72

The formula is:Years to Double = 72/Interest Rate

For instance, if the interest rate is 12%, your investment will double in approximately:
72/12=6 years

How Long for ₹1 Lakh to Become ₹2 Lakh?

If you invest ₹1 lakh at different interest rates, the Rule of 72 helps you estimate the time it takes to double your investment.

Here’s a table showing the doubling time for interest rates from 8% to 14%:

Interest Rate (%) Doubling Time (Years)
8 9
9 8
10 7.2
11 6.5
12 6
13 5.5
14 5.14

Key Observations from the Table

  1. Higher Interest Rates Reduce Doubling Time:
    At 8%, it takes 9 years to double ₹1 lakh, while at 14%, it takes just 5.14 years.
  2. Small Increases in Interest Rates Have Big Impacts:
    A shift from 10% to 12% reduces the doubling time by more than a year.
  3. Compounding Works Wonders Over Time:
    The faster your investment doubles, the more cycles of compounding you benefit from.

Why is the Rule of 72 Useful?

The Rule of 72 offers a quick, no-fuss way to estimate growth. Whether you’re planning long-term investments or simply comparing financial products, it’s a handy tool to gauge how effectively your money can grow.

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.

Quick Commerce Sees Major GOV Growth

Quick commerce platforms such as Zomato’s Blinkit, Swiggy’s Instamart, and Zepto have reported sharp increases in their gross order value (GOV). Zepto’s annualised GOV reached $3 billion (₹24,500 crore) in January 2025, tripling within 8 months. In April 2024, Zepto’s annualised GOV stood at $1 billion, according to reports.

Zomato share price stands at ₹252.85, showing a 1.63% increase today (Jan 20, 11:42 AM) and a rise of 14.36% over the past six months and 94.85% in the past year, compared to Swiggy Ltd, which is trading at ₹477.30, up 0.89% today (Jan 20, 11:42 AM), with an all-time increase of 10.82%.

Market Shares 

As of recent reports, Blinkit holds the largest share in the quick commerce market with 46%, followed by Zepto with 29%, and Instamart with 25%, according to analysts. Blinkit’s GOV for Q2 FY25 was reported at ₹6,132 crore, while Instamart recorded ₹3,382 crore during the same period.

Zepto’s Structural Changes

Zepto has undertaken several operational changes, including establishing Zepto Marketplace Private Ltd and receiving approval from the National Company Law Tribunal (NCLT) to make Kiranakart Pte. Ltd its holding company. 

The company is also preparing for an IPO, planning to raise over ₹2,900 crore from domestic investors, to increase its domestic shareholding.

Growth Compared to Food Delivery Services

The GOV growth for quick commerce platforms is reportedly outpacing the growth seen in food delivery services for companies like Zomato and Swiggy. For FY24, Blinkit recorded a year-on-year GOV growth of 169%, while Instamart reported a 57.63% increase.

Investments in Quick Commerce

Zomato infused ₹500 crore into Blinkit to support its quick commerce business. Zepto’s leadership noted that the company aims to continue this momentum, focusing on profitability in the near future. The growth in GOV for quick commerce platforms indicates an increasing consumer preference for these 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.

Caplin Point’s Subsidiary Secures USFDA Nod for Seizures Treatment Injection

Caplin Point Laboratories, a prominent pharmaceutical company serving Latin America and Africa, has announced a significant milestone. Its subsidiary, Caplin Steriles, has received final approval from the United States Food and Drug Administration (USFDA) for its Abbreviated New Drug Application (ANDA) for Levetiracetam in Sodium Chloride Injection.

A Breakthrough in Seizure Treatment

Levetiracetam in Sodium Chloride Injection is an antiepileptic drug designed as an adjunctive therapy for partial-onset seizures in adults with epilepsy, myoclonic seizures in adults with juvenile myoclonic epilepsy, and primary generalised tonic-clonic seizures in adults with idiopathic generalised epilepsy. The drug is a generic therapeutic equivalent of the Reference Listed Drug (RLD) from HQ Specialty Pharma Corp.

Market Potential and Company Growth

The US market for Levetiracetam in Sodium Chloride Injection was valued at approximately $19 million for the 12-month period ending November 2024, according to IQVIATM (IMS Health). This approval provides Caplin Steriles with an opportunity to capture a share of this market, further strengthening its presence in the US.

Caplin Point Laboratories has consistently showcased innovation and growth, leveraging its state-of-the-art manufacturing facilities to produce a wide range of finished dosage forms. With this latest milestone, the company continues to affirm its commitment to delivering high-quality, affordable healthcare solutions globally.

Caplin Point Laboratries Share Performance

As of January 20, 2025, 10:30 AM, the Caplin Point Laboratories share price is trading at ₹2,194.00 per share with a decline of 0.56% from its previous day’s closing price. Over the last month, the stock has seen a decline of 5.08% and over the last year, it has surged by 45.90%. The stock has a 52-week high and 52-week low of ₹2,641.00 per share and ₹1,225.00 per share, respectively. 

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.

EPFO Introduces Simplified Process for Member Profile Updates

The Employees Provident Fund Organisation (EPFO), under the Ministry of Labour & Employment, has taken a significant step towards enhancing member services by simplifying the process for updating member profiles. This initiative reflects EPFO’s commitment to ensuring data accuracy and improving ease of living for its members.

Member Self-Approval for Profile Updates

The revised process allows EPFO members, whose Universal Account Number (UAN) is Aadhaar-validated, to independently update critical personal information such as name, date of birth, gender, nationality, marital status, and employment details. Notably, members who obtained their UAN before 1 October 2017 will require employer certification in specific cases.

Previously, any changes in member profiles required document uploads and employer endorsements before reaching EPFO for approval. However, with this reform, 45% of the 8 lakh annual requests for corrections can now be self-approved by members, bypassing employer involvement. This change reduces processing delays, saving an average of 28 days per request.

Benefits for Members and Employers

The simplification of the profile update process immediately benefits approximately 3.9 lakh members with pending requests. Members can withdraw pending employer-verified requests and self-approve changes under the new system.

This initiative is also expected to reduce the volume of grievances related to profile and KYC issues, which currently constitute 27% of member complaints. Employers, in turn, experience a reduced workload, further promoting ease of doing business.

Conclusion

EPFO’s move to simplify member profile updates marks a pivotal step in improving service efficiency and minimising errors. By enabling self-approval for most changes, this initiative ensures faster resolution of member requests, reduces grievances, and promotes seamless service delivery for millions of EPF account holders.

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.

Burman Family’s Open Offer for Religare Enterprises to Start on January 27

The Burman family, promoters of FMCG company Dabur India, will launch an open offer to acquire an additional 26% stake in Religare Enterprises Ltd (REL). The open offer, valued at ₹2,116 crore, is scheduled to start on January 27, 2025, and close on February 7, 2025.

Religare Enterprises Ltd (REL) is trading at ₹273.00, down 0.40% today (as of today, Jan 20, 11:34 am), but has gained 15.65% over the past 6 months and 25.78% over the past year.

Details of the Open Offer

The offer aims to acquire up to 9,00,42,541 fully paid-up equity shares of REL. Each share has a face value of ₹10 and represents 26% of the expanded voting share capital. The acquisition will be executed by four Burman family entities: M.B. Finmart Private Ltd, Puran Associates Private Ltd, VIC Enterprises Private Ltd, and Milky Investment & Trading Company.

Ownership and Approvals

As of September 30, 2024, the Burman family held a 25.12% stake in REL through their four entities. The open offer is an attempt to increase their stake in the company. The Reserve Bank of India (RBI) approved the open offer in December 2024. The process has met the necessary regulatory requirements, enabling the offer to proceed as planned.

Opposition from Directors

REL’s independent directors have raised objections to the open offer, alleging fraud and breaches by the Burman family entities. Complaints have been filed with the Securities and Exchange Board of India (SEBI), the RBI, and the Insurance Regulatory and Development Authority (IRDA).

Timeline of the Open Offer

The Burman family announced the open offer in September 2023. Public shareholders will have the opportunity to tender their shares during the offer period, which runs from January 27 to February 7, 2025.

Background

Religare Enterprises is a non-banking financial company (NBFC). The Burman family’s existing investments include Dabur India and Eveready Industries. The outcome of this open offer will impact the ownership structure of REL, depending on the response from public shareholders and regulatory observations.

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.

Swan Defence Shares Resume Trading on NSE and BSE on January 20

Swan Defence and Heavy Industries Ltd has made a comeback to the stock market as its shares resume trading on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on Monday, January 20. The development comes after the company underwent a rebranding and a strategic overhaul under the ownership of Swan Energy Ltd, marking a fresh chapter in its corporate journey.

Swan Defence to Begin a New Chapter

Previously known as Reliance Naval and Engineering Ltd, the company was officially renamed Swan Defence and Heavy Industries Ltd on January 2. The rebranding reflects a renewed focus and direction under the management of Swan Energy Ltd, which acquired the company through an insolvency resolution process.

Vivek Merchant, Director of Swan Defence and Heavy Industries, commented on the milestone, stating, “The resumption of trading marks the beginning of a new journey for the shipyard.” The move is expected to bolster the company’s position in the defence and heavy industries sector.

Key Listing Details: T Group of Securities

Swan Defence shares will be listed in the ‘T’ Group of Securities, a specialised segment on the Bombay Stock Exchange. This category mandates trade-to-trade transactions, requiring mandatory delivery of shares for every trade. Unlike standard trading practices, intraday transactions and BTST (Buy Today, Sell Tomorrow) or STBT (Sell Today, Buy Tomorrow) strategies are not permitted for stocks in this group.

The listing in the ‘T’ Group ensures stricter regulatory compliance, promoting stability and transparency in trading. This step aligns with the company’s focus on rebuilding trust and reinforcing its foundation in the competitive market.

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.