8th Pay Commission: How Much Salary Central Government Employees Can Expect?

On Thursday, January 16, 2025, Union Minister Ashwini Vaishnaw announced that Prime Minister Narendra Modi had approved establishing the 8th Central Pay Commission to review the salaries and benefits of central government employees. During a press conference in New Delhi, the union minister emphasised the importance of pay commissions in India’s post-independence history, noting that 7 such commissions have been established so far.

The minister stated, “For your information, our Prime Minister has approved the formation of the 8th Central Pay Commission for all central government employees,” emphasising the government’s commitment to regular pay commission reviews.

Historically, such commissions are formed every 10 years, and the 8th Pay Commission’s recommendations are expected to be implemented by 2026.

What Salary Increase Can Central Government Employees Expect?

The pay commission plays a crucial role in determining the salary structures, allowances, and other benefits for government employees. Its recommendations directly impact millions of workers and pensioners across India, with the salary hike being determined once the pay commission’s suggestions are finalised.

Fitment Factor in Pay Commission Recommendations

The fitment factor is a multiplier used to calculate the revised salaries of central government employees and pensioners. It is an essential part of the Pay Commission and is applied to adjust salaries and pensions after the commission’s recommendations are implemented.

Inconsistent assessments of grade pay and the spacing between pay bands directly affect the size of the fitment benefit.

Working of Fitment Factor in Salary Hikes

The salary used to calculate the revised pay under the new Central Pay Commission (CPC) will be the current salary or the salary the employee receives in the month the CPC is implemented. This salary refers to the basic pay, which is the sum of the pay band and grade pay. In the 7th Pay Commission, the fitment factor was set at 2.57, meaning the salary was multiplied by 2.57 to determine the new pay scale.

About 7th Pay Commission

The 7th Central Pay Commission, which was set up in 2016, is scheduled to conclude its term in 2026. Vaishnaw explained that setting up the 8th commission before 2025 will provide ample time to review and finalise its recommendations. This proactive move, he added, will allow the government to implement changes before the end of the current commission’s tenure.

 

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 securities market are subject to market risks, read all the related documents carefully before investing.

From T+1 to Cybersecurity: SEBI’s Efforts in Shaping India’s Securities Market

On January 16, 2025, SEBI organised India’s Securities Market Tech Stack in Mumbai, which showcased India’s tech journey in the Securities Market. The release by SEBI stated that India’s Securities Market has significantly grown and matured over the years, evolving in terms of people, processes, and products.

SEBI has played a crucial role in enhancing market efficiency through various initiatives. SEBI has been proactive in introducing policy reforms aimed at protecting investor interests while meeting the needs and aspirations of various market segments. These reforms ensure the market operates in a transparent, cost-effective, and efficient manner.

SEBI’s Role in Capital Raising

SEBI’s primary goal is to facilitate capital raising transparently and efficiently. Over the years, it has implemented several policies designed to protect investors and ease their access to markets. This approach has contributed to the significant growth of capital-raising activities in the Indian securities market.

As the Indian securities market has grown, it has provided various investment opportunities catering to the diverse needs of millions of investors. SEBI continues to focus on enhancing the scope of products and services available to investors.

Efforts in Settlement Cycles and Technology Use

India has pioneered the T+1 and T+0 settlement cycles globally. The use of technology has been a key enabler in implementing many market innovations, such as reducing IPO timelines from T+6 to T+3 and introducing features like the Pledge-Repledge mechanism, online KYC, Mutual Fund centralization, and ASBA in the secondary market.

SEBI’s Adoption of Technology for Operational Efficiency

SEBI has embraced technology to streamline its functioning across various areas, including development, regulation, inspection, and enforcement. The use of technology has significantly reduced the time required for registering intermediaries, issuing IPO observations, and resolving investor disputes online. Through its technological initiatives, SEBI has enhanced the ease of doing business for both market participants and retail investors, making the processes more efficient and accessible.

Focus on Cybersecurity

While SEBI continues to leverage technology to improve market efficiency, it also recognizes the potential risks associated with technology misuse. To safeguard the market and its own operations, SEBI has implemented robust cybersecurity measures for both market participants and its internal functions.

 

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 securities market are subject to market risks, read all the related documents carefully before investing.

Sun Pharma to Increase Presence in Canada with Acquisition of Antibe Therapeutics

On January 16, 2025, Sun Pharmaceuticals Ltd, India’s largest pharmaceutical manufacturer announced that its US subsidiary, Taro Pharma has agreed with Canada-based biotech company Antibe Therapeutics. As part of the deal, Sun Pharmaceuticals will acquire 100% of Antibe Therapeutics’ shares. The acquisition is expected to close by March 7, 2025, according to the company’s announcement.

The transaction is contingent on a reverse vesting order and approval from the Ontario Superior Court of Justice (Commercial List), as stated by Sun Pharma.

Acquisition of Stake in Taro Pharma

In a related move, Sun Pharma had previously acquired the remaining 21.52% of Taro Pharma’s outstanding shares for a cash consideration of $43 per share, totalling $347.73 million (₹2,891.76 crore, based on the USD-INR exchange rate on January 18, 2024).

About Antibe Therapeutics

Antibe Therapeutics, headquartered in Ontario, Canada, is a clinical-stage biotechnology company focused on developing novel drugs aimed at reducing pain and inflammation.

Currently, Antibe is under the management of a court-appointed receiver, who is authorized to oversee its sale. Sun Pharma disclosed this information in a regulatory filing on Thursday, January 16. For the financial year 2023-24, Antibe’s revenue was reported as NIL.

Sun Pharma Q3FY25 Result

Sun Pharma announced on January 16, 2025, that its board will meet on January 31, 2025, to consider and approve the unaudited financial results for the quarter and nine months ended December 31, 2024. Additionally, the board will decide whether to declare an interim dividend for the financial year 2024-25. If a dividend is declared, the record date for eligibility will be February 6, 2025.

 

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 securities market are subject to market risks, read all the related documents carefully before investing.

Capital Infra Trust InvIT Made Flat Listing at ₹99 on BSE and NSE

Capital Infra Trust share price made a flat debut on both the exchanges NSE and BSE and listed at ₹99 each against the issue price of ₹99-100 per unit. Backed by Gawar Construction, the infrastructure investment trust (InvIT) raised ₹703 crore from anchor investors.

Gawar Construction, the sponsor, is involved in developing road and highway projects across 19 states in India for various government and semi-government entities, including the Central Public Works Department, Mumbai Metropolitan Regional Development Authority, Ministry of Road Transport and Highways, and NHAI.

Capital Infra Trust InvIT IPO Details

Capital Infra Trust InvIT IPO was closed on Thursday, January 9, and was subscribed 2.80 times overall. The portion for other investors was subscribed 5.08 times, while the institutional investor portion saw a subscription of 93%.

Capital Infra Trust InvIT IPO specifics: The IPO comprises a fresh issuance of units worth ₹1,077 crore and a sale of units up to ₹501 crore by the selling unitholder, Gawar Construction Ltd., totalling ₹1,578 crore.

Use of IPO Proceeds

The company has decided to use the funds raised to provide loans to special purpose vehicles (SPVs) of the project to settle external debts and repay unsecured loans taken from the sponsor.

About Capital Infra Trust

Capital Infra Trust, established in September 2023, is an infrastructure investment trust (InvIT) sponsored by Gawar Construction Limited. The trust was formed to make investments and engage in activities as an InvIT in accordance with SEBI’s InvIT Regulations.

As of December 2024, Gawar Construction’s portfolio includes 26 road projects under the hybrid annuity mode (HAM) with NHAI. Of these, 11 projects have been completed, including five assets previously owned by Sadbhav Infrastructure Projects Limited, while 15 projects are still under construction.

 

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 securities market are subject to market risks, read all the related documents carefully before investing.

RBI Reviewing Tata Sons’ Request for NBFC De-registration

On Thursday, January 16, the Reserve Bank of India (RBI) announced that it is currently reviewing Tata Sons’ request for de-registration as a non-banking financial company (NBFC). This review does not impact its classification in the upper layer of NBFCs.

The RBI’s statement indicates that Tata Sons could still have an opportunity to avoid the central bank’s requirement for large NBFCs to list on the stock market by September 2025. If the RBI rejects Tata Sons’ application for de-registration, the company would likely need to consider an initial public offering (IPO) within the specified deadline.

In response to a Right to Information (RTI) query, the RBI confirmed that Tata Sons’ request to surrender its Certificate of Registration (COR) as a Core Investment Company (CIC) is still under review. RBI regulations mandate that upper-layer NBFCs must go public within three years of being classified.

Tata Sons was designated as an upper-layer NBFC in September 2022, meaning it has until September 2025 to meet the listing requirement. Tata Sons’ FY23 balance sheet reveals borrowings of approximately ₹20,270 crore. If the company reduces its debt to below ₹100 crore, it could potentially lose its classification as an upper-layer NBFC by the RBI.

 

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.

SEBI Focused to Increase Reach of Equities: Pushing ₹250 Monthly Investment Plans

India’s capital markets regulator, the Securities and Exchange Board of India (SEBI) is encouraging fund houses to promote monthly investments as low as ₹250 (approximately $3) in order to broaden the reach of equity investing in the world’s most populous country. The Securities and Exchange Board of India (SEBI) is planning to simplify customer identification rules and reduce costs, aiming to make small-scale investments through mutual funds more accessible, as mentioned in the various news reports.

Objective of ₹250 SIP

Currently, around 225 million investors use systematic investment plans (SIPs), but most of them are from large cities. Introducing smaller SIP amounts would help expand financial investments into smaller towns, creating new markets for fund houses. The regulator is seeking to build on the success of SIPs, which saw average monthly inflows of 223.6 billion rupees ($2.59 billion) into Indian equities last year. This has helped stabilize the market amid a period of foreign investor sell-offs.

SEBI Chairperson Madhabi Puri Buch announced that ₹250 SIPs would soon be launched to foster financial inclusion.

Indian MF Industry Performance

For the financial year 2024-25, SIP investments have surged more than fourfold, reaching ₹2.1 trillion, up from 2016-17, according to data from the Association of Mutual Funds in India. India’s mutual fund industry now manages ₹66.93 trillion ($797.87 billion) in both debt and equity assets.

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.

LTIMindtree Shares Fell ~2% After Release of Q3FY25 Earnings

LTIMindtree Ltd reported its financial results for the quarter ended December 31, 2024, showcasing moderate growth in revenue, while profitability experienced some pressure. The company reported revenue amounting to ₹96,609 million, up by 2.4% QoQ and 7.1% YoY. Net profit stood at ₹10,867 million, showing a decrease of 13.2% QoQ and 7.1% YoY.

In USD terms, the company recorded a revenue of $1,138.7 million, marking a 1.1% increase quarter-over-quarter (Q-o-Q) and a 5.1% rise year-over-year (Y-o-Y). Operating margin (EBIT) stood at 13.8%, reflecting a stable performance. However, net profit in USD declined by 14.3% Q-o-Q and 8.8% Y-o-Y, amounting to $128.1 million.

Client Growth and Workforce Expansion

As of December 31, 2024, LTIMindtree reported having 742 active clients, indicating a steady demand for its services. The company continues to see significant growth in its high-value client base, with the number of clients generating over $5 million in annual revenue increasing by 3 to a total of 152. Additionally, the number of clients contributing over $10 million and $50 million in annual revenue also grew, reaching 90 and 13, respectively.

On the workforce front, the company added 2,362 professionals in Q3 FY25, bringing the total headcount to 86,800. However, the trailing 12-month attrition rate stood at 14.3%, indicating a need for further efforts in talent retention.

Key Deal Wins Focused on AI and Digital Transformation

LTIMindtree secured several significant deals during the quarter, with a particular focus on AI-driven solutions across multiple industries. Some of the notable wins include:

  • A global manufacturing company selected LTIMindtree to manage its IT landscape using the company’s AI in Operations platform.
  • A leading global investment firm chose LTIMindtree’s proprietary AI in Infrastructure platform to handle its infrastructure services.
  • LTIMindtree was also chosen by a prominent Middle Eastern nuclear energy company for end-to-end IT services using the AI in Operations platform, and by a major oil and gas company in the region to implement AI in cloud operations.

Additionally, LTIMindtree secured deals with clients across sectors like insurance, commercial property, and credit ratings, where it will deploy its AI and data management platforms.

Strategic Partnerships to Drive Innovation

LTIMindtree strengthened its position in the AI and cloud domains through several strategic partnerships. The company attained AWS GenAI competency, further solidifying its AI expertise on AWS platforms like Amazon Bedrock and Quicksight. This achievement marks LTIMindtree’s 11th AWS specialization and enhances its credibility in the AI innovation space.

Moreover, LTIMindtree and Microsoft have teamed up to drive AI innovation and digital transformation for global enterprises. The partnership will leverage Microsoft technologies like 365 Copilot and Canvas Sunshine.

LTIMindtree also launched a comprehensive solution for Oracle Database Migration to Azure Cloud, enabling smoother transitions and optimized performance for clients. In recognition of its prowess, LTIMindtree received several accolades, including ServiceNow’s ITOM visibility achievement and Boomi’s Asia Partner of the Year Award.

LTIMindtree shares opened at ₹5,780.30 and touched the day low of ₹5,780.30 at 09:20 AM, reflecting a fall of ~2% against the previous day close.

 

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 securities market are subject to market risks, read all the related documents carefully before investing.

Havells Share Price in Focus: Posted Drop of 2% in Revenue During Q3FY25

Havells India, the country’s largest home appliances manufacturer by market value, reported a nearly 2% decline in Q3FY25 profit on Thursday, as higher labour and advertising expenses impacted margins.

Havells Q3FY25 Results: Revenue Rose 11%

The company’s profit for the three months ending December 31 fell to ₹283 crore, compared to ₹288 crore in the same period last year. Havells reported an 11% increase in revenue from operations, reaching ₹4,883 crore, while total expenses grew by 12.3% to ₹4,564 crore. The company’s EBITDA margin stood at 8.7% for the quarter, down from 9.8% in the corresponding period of the previous fiscal year.

Havells Segment Overview

  • The real estate and project business drove growth in the domestic switchgear segment, although industrial switchgear (IP) showed softness.
  • Power cables saw strong growth, with the Tumkur plant, still in its ramp-up phase, contributing to the increase.
  • The softness in copper prices led to channel destocking in wires, negatively affecting revenue.
  • Lighting showed decent volume growth, although revenues were impacted by persistent price deflation in LED products.
  • The ‘Others’ segment continued its growth momentum.
  • Lloyd’s performance remained steady during the quarter.

Havells Interim Dividend

The board of directors declared an interim dividend of ₹4 per equity share (400% on the equity share capital of ₹1 each). This dividend will be paid to shareholders whose names appear in the register of members as of the record date, January 22, 2025. Shareholders will receive the dividend on or before February 14, 2025.

Havells shares price opened at ₹1,544.95 and touched the day high of ₹1617.95 at 09:25 AM, reflecting a rise of ~1.14% against the previous day close

 

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 securities market are subject to market risks, read all the related documents carefully before investing.

TCS Shares to Trade Ex-Date on January 17: Interim Dividend of ₹10

On January 17, 2025, TCS shares to trade ex-date, which means that the shareholders registered in the company’s books as of today will be eligible for the IT giant ₹76 interim and special dividend. On January 9, 2025, TCS announced a 3rd interim dividend of ₹10 and a special dividend of ₹66 per Equity Share of ₹1 for each of the Company.

TCS Dividend History

Announcement Date Ex-Date Dividend Type Dividend Amount (₹)
30 Sep, 2024 18 Oct, 2024 Interim 10
28 June 2024 19 July 2024 Interim 10
12 April 2024 16 May 2024 Final 28

TCS Leadership Take on Q3FY25 Earnings

During Q3FY25, TCS reported a revenue of ₹63,973 crore, marking a growth of 5.6% year-over-year (YoY), with a 4.5% increase in constant currency (CC). This growth was primarily driven by the Consumer Business Group, which grew by 1.1%, as well as by the Energy, Resources, and Utilities sector, which saw a 3.4% increase.

K Krithivasan, Chief Executive Officer and Managing Director said: “We are pleased with the excellent TCV performance in Q3 which was well-rounded across industries, geographies and service lines lending good visibility to long-term growth. BFSI and CBG returning to growth, continued stellar run of Regional Markets and early signs of revival in discretionary spending in some verticals give us confidence for the future. Our continuing investments in upskilling, AI/Gen AI Innovations and partnerships set us up to capture the promising opportunities ahead.”

Samir Seksaria, Chief Financial Officer, said: “In a quarter that saw significant cross-currency volatility, TCS’s strong execution, cost management and deft currency risk management helped deliver healthy margin improvement and free cash flows. Disciplined investments in talent and infrastructure should lend good support to long-term business growth.”

Milind Lakkad, Chief HR Officer, said: “We promoted over 25,000 associates this quarter which brought the total promotions this financial year to more than 110,000. We continue to invest in employee upskilling and overall well-being. Our campus hiring for the year is going according to plan and preparations are afoot to onboard a higher number of campus hires next 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 securities market are subject to market risks, read all the related documents carefully before investing.

Stocks That Hit Circuit Limits On January 16, 2025, Reliance Power, Aeroflex Industries and More

The Indian stock market extended the gains for the third straight day on January 16, 2025. The BSE Sensex closed 0.42% higher at 77,042.82, while Nifty50 rose 0.42% to 23,311.80. During the session, many stocks, including Reliance Power and Aeroflex Industries hit circuit limits, indicating significant price movements. Here is the list of stocks hitting lower and upper circuits today.

Stocks That Hit Lower Circuit on January 16, 2025

Company Name LTP (₹) % Change Price Band % Volume (Lakhs) Value (₹ Crores)
Diamond Power Infrastructure 115.89 -5 5 4.44 5.31
Delta Autocorp 152.80 -4.98 5 3.28 5.04
Kore Digital 1,531.75 -5 5 0.26 3.99
Bartronics India 22.11 -5.03 5 15.78 3.49
Teerth Gopicon Ltd 544.00 -2.81 5 0.42 2.29

Stocks That Hit Upper Circuit on January 16, 2025

Company Name LTP (₹) % Change Price Band % Volume (Lakhs) Value (₹ Crores)
Sterling and Wilson Renewable Energy 451.90 6.49 10 85.36 388.38
Aeroflex Industries 223.35 20 20 112.42 245.26
Reliance Power 41.20 4.99 5 175.56 71.93
GE Vernova T&D India 1,982.00 4.66 5 3.25 63.62
Spandana Sphoorty Financial 371.80 4.32 5 16.83 60.90

Overview of Companies Hitting Circuits Today

Sterling and Wilson Renewable Energy

Sterling and Wilson Renewable Energy shares hit a 10% upper circuit and reached the day high of ₹466.75 on NSE after opening at ₹430.00.

Aeroflex Industries

Aeroflex Industries shares hit a 20% upper circuit and reached a day high of ₹223.35 after opening at ₹202.60 on NSE.

Reliance Power

Reliance Power shares hit an upper circuit of 5% and reached the day high of ₹41.20 after opening the trading session at ₹40.05 on NSE on Jan 16, 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.