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RBI Holds Repo Rate Steady as PSU Banks Gain Amid Market Fluctuations

Nifty and Sensex traded flat on December 6 as the RBI maintained the repo rate at 6.5% for the eleventh consecutive time, while cutting the CRR by 50 basis points to inject Rs 1.16 lakh crore into the system. PSU banks, auto, and FMCG stocks gained, with Bajaj Auto, Axis Bank, Titan Company, BPCL, and ITC leading the Nifty's top gainers. The market showed resilience amid a choppy session, with 2,076 shares advancing against 1,289 declining.

Indian Markets Rally as Nifty Surpasses 24700 Ahead of RBI Policy Decision

In a volatile session on December 5, the Indian equity market closed higher, with Nifty surpassing 24,700 for the fifth consecutive session, driven by broad-based buying except in the realty sector. The Sensex rose by 809.53 points to 81,765.86, while Nifty gained 240.95 points to close at 24,708.40. Key gainers included TCS, Infosys, and Titan Company, while SBI Life Insurance and Bajaj Auto were among the notable losers, as investors remained cautious ahead of the Reserve Bank of India's policy announcement.

Nifty closes above 24250 driven by gains in auto and energy sectors

The Nifty 50 index rebounded on November 27, closing above 24,250, driven by gains in auto, energy, metal, and media sectors. After a flat opening and rangebound trading, the index surged past 24,350 before some selling pressure emerged. Notable gainers included Adani Enterprises and NTPC, while Apollo Hospitals and Titan Company were among the losers. Broader indices also performed well, with the Nifty Midcap rising 0.6% and the Nifty Smallcap up 1.3%.

Indian markets gain modestly as Adani stocks rebound and autos rally

In a volatile session on November 27, the Sensex rose by 230.02 points to close at 80,234.08, while the Nifty gained 82.20 points, ending at 24,276.70. The rally was driven by gains in energy, auto, metal, and bank stocks, alongside a notable recovery in Adani Group shares, which surged by up to 12 percent. Despite some laggards like Titan Company and Wipro, market sentiment improved with indications of foreign institutional investors becoming net buyers.

tock market surges as key sectors rebound ahead of election results

The stock market experienced a significant rebound, with the Sensex rising by 1,961.32 points (2.54%) to 79,117.11 and the Nifty up by 557.35 points (2.39%) to 23,907.25. Key sectors such as IT, PSU banks, and realty saw gains of 2-3%, driven by stocks like State Bank of India and TCS. Analysts noted that the rally was fueled by short covering in underperforming sectors ahead of crucial state election results, with potential for further gains or volatility depending on the election outcome.

market faces pressure as key support levels are tested and outlook remains uncertain

The domestic markets faced pressure for the seventh consecutive week, with the Nifty index closing at 23,500 after a 2.55% decline. Continued selling by foreign institutional investors and a strong dollar have contributed to this downtrend, raising concerns about market stability. Key support levels are being tested, and failure to hold above 23,500 could lead to further declines, while a move above 23,700 may trigger a relief rally.

quarterly earnings reports reveal mixed results across various sectors

The Q2 earnings season for FY25 is underway, with major companies like Apollo Hospitals, Kansai Nerolac Paints, and Trident set to release their results. While many firms have reported, the overall corporate earnings scorecard has been weak, with only 62% meeting or exceeding profit expectations, particularly in the consumption sector. Notably, GAIL's earnings missed expectations due to lower gas trading margins, while Power Grid's profit remained flat year-on-year.

Titan Company receives buy rating with target price of Rs 3782

Titan Company has shown robust growth across most segments, driven by a 10% cut in custom duty boosting jewellery sales, strong demand in watches and wearables, and positive responses in sub-2 lakh jewellery lines. The company is investing in advertising and consumer activations to enhance growth, with strong demand trends noted in October. The stock is now rated as a Buy with a target price of Rs 3782, reflecting a favorable risk-reward scenario following recent corrections.

titan company faces challenges as earnings estimates are revised downwards

Titan Company's domestic jewellery revenue saw a strong revival of approximately 25% YoY, driven by improved demand, although it may underperform peers due to a customs duty cut. The high-value studded segment faced pressure from global price uncertainty, leading to a decline in EBIT margins, prompting management to revise guidance downwards to 11-11.5%. Earnings estimates for FY25E and FY26E have been cut by around 23% and 10%, respectively, with a revised target price of INR 3,100.

titan company maintains growth despite margin pressures and adjusts earnings outlook

Emkay Global Financial has maintained a "BUY" rating on Titan Company, setting a target price of Rs 4,050 despite a ~10% EBITDA miss in Q2, attributed to jewelry margin pressures and customs duty losses. The company reported impressive jewelry growth of 15% LFL and 21% UCP, with positive trends expected in Q3. However, a reduction in jewelry margin outlook to 11-11.5% for FY25 and evolving competition in the LGD space pose potential risks.

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