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 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 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

Reliance Industries Limited (RIL) is India’s largest private-sector enterprise, with a diversified business portfolio spanning energy, petrochemicals, retail, and digital services. Originally founded in the late 1970s as a textile company, RIL has expanded through backward and vertical integration into polyester, fibre intermediates, plastics, petrochemicals, petroleum refining, and oil and gas exploration. This strategic approach has positioned RIL as a global leader, making it the world’s largest polyester yarn and fibre producer and one of the top 10 petrochemical producers globally.

Beyond hydrocarbons, RIL has a significant presence in retail, oil marketing, and digital services through its subsidiaries. The company has gained market leadership in India’s digital services and retail sectors, with both segments contributing substantially to its profitability.

Reliance Industries Share Price Movement on Budget Day

On Budget Day, February 1, 2025, the share price of Reliance Industries opened at ₹1,265.10, reflecting a near-flat movement compared to the previous trading session’s close. During intraday trade, the stock touched a high of ₹1,270.55 on the National Stock Exchange (NSE). However, by 1:26 PM, the stock had declined by 1.23%, trading at ₹1,250.10.

Reliance Industries Stock Performance: A Shift in Trend

For the first time in nearly a decade, Reliance Industries’ share price registered a negative return in CY2024, declining by almost 6%. Since 2015, the stock has been on an upward trajectory, delivering consistent returns to investors. However, market conditions, economic policies, and sectoral headwinds contributed to the downturn in 2024.

Despite the setback in the previous year, Reliance Industries has started CY2025 on a positive note, showing signs of recovery. As of February 1, 2025, the stock has gained nearly 3% year-to-date. 

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

In her Union Budget 2025 speech, Finance Minister Nirmala Sitharaman announced a significant push for broadband connectivity in schools across India. The government aims to leverage the BharatNet project to expand high-speed internet to educational institutions, ensuring digital access for students even in the most remote regions. This move aligns with the broader vision of digital inclusion, potentially increasing opportunities for companies involved in broadband expansion and network services.

Atal Tinkering Lab Union Budget 2025

As part of the Union Budget 2025-26, Finance Minister Nirmala Sitharaman unveiled a significant initiative to strengthen STEM (Science, Technology, Engineering, and Mathematics) education. The government plans to expand the Atal Tinkering Lab (ATL) programme to 50,000 government schools over the next 5 years. This expansion aims to foster creativity, critical thinking, and practical learning among students, ensuring they can apply theoretical concepts to real-world challenges more effectively.

What is BharatNet?

BharatNet is a government-led initiative designed to provide high-speed broadband connectivity to rural and underserved areas of India. Launched in 2011, the project utilises an optical fibre network to connect villages and towns, ensuring affordable internet access to schools, healthcare centres, and other public institutions. By enabling digital services for rural communities, BharatNet plays a pivotal role in bridging the urban-rural digital divide.

BharatNet’s Impact on School Connectivity

The increased investment in BharatNet will extend high-speed internet to schools, particularly in underserved regions. This initiative will:

• Enhance Digital Learning: Students will gain access to online platforms, educational videos, and digital resources for better learning outcomes.
• Support Teacher Training: Teachers can access professional development programmes, equipping them with digital skills for improved instruction.
• Streamline Government Initiatives: Better connectivity will ensure the efficient delivery of educational schemes and resources nationwide.

Stocks That Could Benefit from BharatNet Expansion

Several telecom and infrastructure companies stand to gain from the BharatNet broadband expansion. These companies are instrumental in providing broadband services, laying optical fibre networks, and enhancing internet connectivity. Some key players include:

HFCL (Himachal Futuristic Communications Limited)

HFCL is a leading provider of telecom infrastructure and optical fibre cable manufacturing in India. Given BharatNet’s reliance on fibre optic connectivity, HFCL is well-positioned to benefit from increased demand for broadband expansion.

Bharti Airtel

As one of India’s largest telecom service providers, Bharti Airtel is actively expanding its broadband network. The government’s focus on increasing internet access in schools could contribute to higher revenues for Airtel’s broadband segment.

Reliance Jio (via Reliance Industries)

Reliance Jio, through its extensive fibre-optic network, is a key player in India’s broadband sector. Jio’s involvement in digital initiatives aligns well with BharatNet’s expansion, potentially leading to increased data consumption and subscriber growth.

Vodafone Idea

While facing financial challenges, Vodafone Idea remains a significant broadband and telecom provider in India. The government’s push for expanded connectivity could provide potential growth opportunities for the company.

Tejas Networks

Tejas Networks specialises in telecommunications networking products and has been a beneficiary of government-led broadband projects. BharatNet’s expansion could further drive demand for its high-speed internet solutions.

MTNL (Mahanagar Telephone Nigam Limited)

MTNL, a state-owned telecom service provider, plays a crucial role in expanding broadband services, especially in metropolitan regions. BharatNet’s expansion could provide new opportunities for MTNL’s broadband and network infrastructure segments.

ITI Limited

ITI Limited, a government-owned telecom equipment manufacturer, contributes to India’s telecom infrastructure. The company could benefit from increased demand for network components and broadband expansion under BharatNet.

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

The Union Budget 2025-26 brought a sharp rally in footwear stocks as Finance Minister Nirmala Sitharaman introduced a new policy for the leather and footwear industry. The announcement, made during her budget speech in the Lok Sabha, included a dedicated scheme to improve productivity, boost quality, and support manufacturing in the sector.

Gains in Footwear Stocks

Following the announcement, multiple footwear stocks saw gains. Relaxo Footwears surged 8.97% to ₹598.75, while Liberty Shoes climbed 8% to ₹425.80. Bata India touched ₹1,335, rising nearly 3%. Other footwear companies, including Mirza International and Campus Activewear, recorded increases of 13.46% and 5.54%, respectively. Sreeleathers and Lehar Footwears also saw moderate gains.

Government’s Focus on Growth and Employment

The finance minister talked about how the scheme is expected to create employment for 22 lakh people. The sector is projected to reach a turnover of ₹4 lakh crore, with exports exceeding ₹1.1 lakh crore. 

The policy aims to support both leather and non-leather footwear manufacturing, including improving design capacity, component production, and machinery.

Market Reaction and Broader Implications

The footwear sector was among the notable beneficiaries of the budget, with stocks reacting positively. Meanwhile, the broader market saw volatility as the Sensex and Nifty 50 fluctuated during the speech. Historically, Budget Day trading sessions see movements within a 2-3% range, as investors react to various sectoral policies.

Budget Session and Other Announcements

This is Sitharaman’s 8th budget since 2019 and the second under the Modi government’s 3rd term. 

In addition to the footwear policy, the finance minister also introduced measures for infrastructure, banking, and manufacturing, while mentioning plans to develop India as a global toy manufacturing hub.

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

HBL Engineering Limited, formerly known as HBL Power Systems Limited, has received an order worth ₹410.42 crore (inclusive of 18% GST) from the Ahmedabad Division of Western Railway. The order has been issued to the HBL-Shivakriti Consortium, where HBL Engineering is the lead member.

Scope of Work

The contract involves the supply and installation of way-side Kavach across two railway sections:

• Ahmedabad-Palanpur section
• Ahmedabad-Samakhiyali section

The total coverage spans 402 km. The project is expected to be completed within 730 days from the issuance of the purchase order.

Kavach Implementation

Kavach is an automatic train protection (ATP) system designed to reduce the risk of train collisions. It works by controlling train speeds and braking when necessary. The Indian Railways has been deploying Kavach across multiple routes to improve safety.

Financial Considerations

The project is classified as a domestic contract. 

HBL Engineering Ltd shares are trading at ₹608.80, up ₹44.70 (7.92%) as of today, February 1, 11:41 AM. While the stock has declined 3.98% over the past month, it has gained 17.83% in the last five days.

Execution Timeline

HBL Engineering and its consortium partner, Shivakriti International, are responsible for implementing the system within the stipulated two-year period. The installation will be carried out in phases across the designated railway sections.

Regulatory Disclosure

This order was disclosed as per Regulation 30 of SEBI Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015. Additional details were provided in compliance with SEBI’s Master Circular No. SEBI/HO/CFD/PoD2/P/0155 dated November 11, 2024, and subsequent updates from December 2024.

The order is another phase in the implementation of Kavach across India’s railway network. The project will be monitored over the next two years as the installation progresses on the Ahmedabad Division routes.

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

Quess Corp Limited has announced that its promoter, Fairbridge Capital (Mauritius) Limited, a subsidiary of Fairfax Financial Holdings Limited, has acquired equity shares of the company. This acquisition was conducted through market trades on the stock exchanges and represents a minor percentage of the company’s paid-up capital.

Acquisition Details

Fairbridge Capital (Mauritius) Limited purchased 3,77,218 equity shares of Quess Corp Limited, amounting to 0.25% of the company’s total paid-up capital. The transaction took place on 1st February 2025, as per the disclosure submitted to the stock exchanges. The acquisition aligns with the regulatory framework, and necessary disclosures under SEBI’s Substantial Acquisition of Shares and Takeovers Regulations, 2011, and SEBI’s Prohibition of Insider Trading Regulations, 2015, will be filed accordingly.

Regulatory Compliance

In adherence to SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Quess Corp Limited has officially notified the stock exchanges regarding the share purchase. Such acquisitions require timely disclosure to ensure transparency in financial transactions and compliance with regulatory norms. The company has assured that all necessary documentation and regulatory filings will be completed as per SEBI’s guidelines.

Quess Corp Share Performance

As of February 01, 2025, at 1:38 PM, shares of Quess Corp are trading at ₹622.70 per share up by 6.30% from its previous day’s closing price. The stock has fallen by 6.35% over the past month

Conclusion

The acquisition by Fairbridge Capital (Mauritius) Limited indicates continued confidence in Quess Corp Limited. The company has fulfilled its disclosure obligations under SEBI regulations, ensuring compliance with market regulations.

 

Tata Power subsidiary Tata Power Renewable Energy Limited (TPREL) has signed a Memorandum of Understanding (MoU) with Rajasthan’s power distribution companies (Discoms) to promote rooftop solar adoption. 

The agreement includes Jaipur Vidyut Vitran Nigam Limited (JVVNL), Ajmer Vidyut Vitran Nigam Limited (AVVNL), and Jodhpur Vidyut Vitran Nigam Limited (JDVVNL) and focuses on implementing the Pradhan Mantri Surya Ghar: Muft Bijali Yojana (PMSG: MBY) in residential areas.

Focus Areas

The partnership aims to increase solar installations in Rajasthan, starting with cities like Jaipur, Udaipur, Jodhpur, Kota, and Bikaner before expanding to other regions. This will involve awareness programs, vendor training, and cost-effective solutions to encourage more households to adopt solar energy.

Officials Present at the Signing

The MoU was signed in the presence of Additional Chief Secretary – Energy, Alok, and Chairperson of Rajasthan Discoms, Arti Dogra. Other attendees included Deepesh Nanda, CEO & Managing Director of TPREL, and Shivram Bikkina, Chief of Solar Rooftop & EV Charging Business at TPREL. 

Senior officials from Rajasthan Discoms and representatives of the PMSG: MBY scheme were also part of the signing event.

Rajasthan’s Solar Energy Push

Rajasthan has been focusing on increasing its renewable energy capacity, and this partnership is part of that larger plan. The state already has a major presence in solar energy, and rooftop installations are seen as a way to expand its renewable portfolio while providing cost-efficient energy alternatives to households.

With the initial phase targeting major cities in Rajasthan, further expansion will depend on adoption rates and infrastructure readiness. 

TPREL’s Role

TPREL has been involved in various renewable energy projects across the country. Under this MoU, the company will work with Rajasthan Discoms to streamline solar adoption, provide pricing for installations, and train local vendors for better execution.

Tata Power Company Ltd was trading at ₹372.75, up ₹20.60 (5.85%) today as of Feb 1, 12:14 PM, but has declined 5.08% over the past month and 4.23% 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

Niranjan Gupta has resigned as the CEO of Hero MotoCorp, with his departure effective April 30, 2025. The company announced that Vikram Kasbekar, currently the Executive Director (Operations), will take over as acting CEO from May 1, 2025, until a permanent replacement is found.

Management Reshuffle

Along with the CEO transition, Hero MotoCorp has made several leadership changes:

• Ram Kuppuswamy, Chief Procurement Officer, will take on an expanded role as Chief Operations Officer (COO) – Manufacturing from April 1, 2025.
• Ashutosh Varma, National Sales Head – India Business Unit, will become Chief Business Officer (CBO) – IBU from May 1, 2025, replacing Ranjivjit Singh.
• Jyoti Singh, currently Head HR – R&D, will be elevated to Deputy Chief Human Resources Officer on February 1, 2025.

Niranjan Gupta’s Background

Gupta, who joined Hero MotoCorp in 2017, served as CFO before being promoted to CEO in 2023. His tenure included financial restructuring and partnerships with brands like Harley-Davidson. Before Hero MotoCorp, he worked at Vedanta and Unilever.

EV Unit Becomes Independent

Hero MotoCorp announced that its EV & Emerging Mobility Business Unit (EMBU) will operate independently starting February 1, 2025. The division will report to Executive Chairman Pawan Munjal.

The company’s board is to meet on February 6, 2025, to discuss and approve the unaudited financial results for the quarter and nine-month period ending December 31, 2024.

Financial Performance

The company reported a consolidated net profit of ₹1,045.89 crore in Q2 FY25, a 26.29% increase from the previous year. Revenue from operations rose by 15.4% to ₹10,210.79 crore.

Following the announcement, Hero MotoCorp’s stock fell 1.18% to ₹4,289.65. Despite this, shares had closed 3.84% higher at ₹4,340.85 the previous day. However, today, Hero MotoCorp Ltd shares are trading at ₹4,266.70 as of 12:01 PM on February 1, up 2.13% today, recovering 5.77% over the past five days but still down 20.55% in the last six months.

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