Dr. Reddy's Revenue Surge

Aaj Ka Bazaar

The US benchmarks ended their Friday session by being in positive territory after showcasing mixed performance throughout the rest of the week. The participants' positive outlook was on the back of the PCE (Personal Consumption Expenditure) data, which inched up by 0.1%, which aligns with the market expectations, which further adds confidence in the participants for a possible rate cut soon. The Asian markets are also trading in a positive region, with NIKKEI and Hang Seng in the green owing to the positive global outlook. The Indian markets are also expected to open up higher, as indicated by GIFT Nifty, following the positive global cues. As we advance, the upcoming Q1 earnings update, global trends, and the upcoming release of key economic data will be the key drivers to gauge what kind of momentum picks up hereon.

Markets Around Us?

BSE Sensex - 81,744.57 (0.51%)

Nifty 50 - 24,944.80 (0.44%)

Bank Nifty - 52,167.95 (1.70%)

Dow Jones - 40,751.26 (0.40%)

Nasdaq - 17,357.88 (1.03%)

FTSE - 8,258.71 (1.20%)

Nikkei 225 - 38,653.46 (2.63%)

Hang Seng - 17,319.48 (1.76%)

Sector: Power

NTPC posts strong Q1FY25 numbers

With economic activities booming in the country and increasing consumption patterns, the company’s revenue from operations showed a positive growth from the earlier period. Complementing such a situation, the reducing fuel costs aided the company to report a better operational profit during the quarter, thereby enhancing the overall margins. The company also increased its installed capacity during the quarter, signifying its preparedness for the upcoming demand in the country. The company’s increase in its green energy portfolio signals the future segment of growth for the company, thereby indicating the reducing load on traditional power-generating assets. The company’s improvement in the plant availability factor and the plant load factor signifies the constant improvement in the efficiency and effectiveness of the company’s assets in generating energy.?

Why it Matters:

Going ahead, the increased focus of the Government on building the power infrastructure and increased demand for domestic consumption (both retail and commercial) would trigger growth for the sector. We believe that a mix of capacity expansion, reduced fuel prices and increased tariff rates would help the company in improving its financial performance going ahead.?

NIFTY 50 GAINERS

LT - 3,773.95?(2.56%)

SBIN - 884.30?(2.53%)

ICICIBANK - 1,236.65?(2.44%)

NIFTY 50 LOSERS

CIPLA - 1,541.80?(-2.11%)

TATACONSUM - 1,188.20?(-2.10%)

TITAN - 3,433.95?(-1.72%)

Sector: Pharmaceuticals

Generic Business drives Dr. Reddy's numbers for Q1FY25

The company has delivered healthy revenue growth during the quarter, aided by new product performance, an increase in the volume of base business in the US, new product launch momentum, and strong performance in Europe, partly offset by price erosion in the US and Europe. ?During the quarter, the company launched three new products in the US market. ?The company is focused on higher investments in sales & marketing activities to strengthen existing brands and new business initiatives, including scaling up OTC, digitalization initiatives and building strong commercial capabilities. The company will also actively look for new investment avenues for growth across all the business segments, continue to strengthen core businesses and make strategic investments in biologics and consumer healthcare to drive patient impact and value creation.?

Why it Matters:

We believe Dr Reddy's long-term growth outlook remains intact, and we expect the company to continue to deliver robust performance in the upcoming quarters.

Around the World

Most Asian stocks rose sharply on Monday, driven by hopes of interest rate cuts ahead of the Federal Reserve meeting this week, with tech stocks leading the gains. However, Chinese markets underperformed due to persistent negative sentiment and upcoming economic data. Strong performance on Wall Street on Friday, spurred by easing inflation, also boosted Asian markets. The Fed is expected to keep rates steady on Wednesday, but any hints about future rate cuts are eagerly awaited. Tech-heavy indices like Japan’s Nikkei 225, South Korea’s KOSPI, and Hong Kong’s Hang Seng saw significant gains, while Chinese stocks continued to lag. Investors are also anticipating key earnings from U.S. tech giants, which could provide more insights into the sector. Broader Asian markets, including Australia and Japan, also saw gains, and India's Nifty 50 is expected to open positively after hitting record highs last week.

Option Traders Corner

Max Pain

Nifty 50 - 24,800

Bank Nifty - 51,800

Nifty 50 - 24,702 (Pivot)

Support - 24,543, 24,252, 24,093

Resistance - 24,993, 25,152, 25,443

Bank Nifty - 51,044 (Pivot)

Support - 50,689, 50,083, 49,729

Resistance - 51,650, 52,004, 52,610

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