Tata Motors Powers EV Shift

Aaj Ka Bazaar

Indian equity indices, NSE Nifty50 and BSE Sensex, are expected to open positively today after reaching record highs on September 25. GIFT Nifty's rise and gains in Asia-Pacific markets, supported by a weak yen and China’s stimulus, indicate a continued uptrend. U.S. futures are in the green, led by tech stocks like Micron following strong earnings. Key U.S. economic indicators like Q2 GDP, pending home sales, and jobless claims are in focus, along with Singapore’s August industrial production. Metal and power stocks may show momentum. In stock specific news, Hindustan Copper remains in focus after approving the sale of its Malanjkhand copper ore tailing plant.

Markets Around Us?

BSE Sensex - 85,290.06 (0.15%)

Nifty 50 - 26,038.30 (0.13%)

Bank Nifty - 54,069.10?(-0.06%)

Dow Jones - 41,971.87 (0.13%)

Nasdaq - 18,082.21 (0.04%)

FTSE - 8,268.70 (-0.17%)

Nikkei 225 - 38,793.35 (2.35%)

Hang Seng - 19,565.03 (2.32%)

Sector: Automobiles

Tata Motors to invest ￡500 mn in plant upgradation

Tata Motors-owned Jaguar Land Rover (JLR) is investing ￡500 million ($669 million) to upgrade its Halewood plant in England for electric SUV production, following an earlier ￡250 million investment. The goal is to make Halewood JLR’s first all-electric factory, despite challenges like higher costs and weak consumer demand for electric vehicles (EVs). JLR plans to spend ￡18 billion over five years to offer electric options across all its models by the end of the decade. Like other European carmakers, JLR is slowing its EV push due to reduced subsidies and softer demand. The Halewood plant, which currently produces Range Rover Evoque and Discovery Sport models, will start making electric SUVs alongside hybrid and combustion-engine vehicles.

Why it Matters:

From an investor's perspective, the substantial ￡18 billion investment over the next five years reflects Tata Motors' long-term vision, but it also suggests increased capital expenditure, which may affect short-term profitability.?

NIFTY 50 GAINERS

MARUTI - 13,044.95?(2.03%)

TATAMOTORS - 974.40?(1.12%)

LTIM - 6,167.75?(1.07%)

NIFTY 50 LOSERS

HEROMOTOCO - 5,946.65 (-2.33%)

ONGC - 294.30 (-1.47%)

POWERGRID - 359.75?(-1.10%)

Sector: Industrial Minerals

NMDC Steel to breakeven in FY25

NMDC Steel is on track to break even financially in the current fiscal year, according to the management. The company, which was spun off from state-owned NMDC in 2022 and operates a 3 million tonne steel plant in Chhattisgarh, aims to produce 2.1 lakh tonnes of hot metal and 1.5 lakh tonnes of hot-rolled (HR) coils per month by Q3 FY25. While NMDC Steel reported ?3,049 crore in revenue last year, it also incurred a loss of ?2,201 crore due to a ?1,226 crore capital expenditure. The plant, built for around ?24,000 crore, began operations in August 2022 and has produced 1 million tonnes of HR coils since. NMDC Steel's stock has risen over 53% since listing in 2023. The company plans to focus on operational efficiency, strategic growth, and sustainability as India targets a steel production capacity of 300 million tonnes by 2030.

Why it Matters:

Improved operational efficiencies and strategic growth plans could contribute to value creation for shareholders. However, concerns over capital expenditure and past losses might still weigh on investor sentiment, making ongoing performance improvements crucial for sustained stock gains.

?

Around the World

Most Asian stocks rose on Thursday, boosted by optimism over China’s stimulus measures and strong earnings from U.S. chipmaker Micron, which lifted tech stocks, especially chipmakers. South Korea’s KOSPI surged 2.1%, with SK Hynix jumping 9% after starting mass production of advanced memory chips for AI. Japan’s Nikkei 225 and TOPIX also rose 2.4% and 1.8%, driven by gains in companies like Advantest and Tokyo Electron. Chinese markets extended their winning streak, with the Shanghai Composite and Hong Kong’s Hang Seng gaining on stimulus measures, including lower bank reserve requirements. Australian stocks rose on hopes tied to China, while India’s Nifty 50 futures pointed to a strong opening, with the index hitting a record high. Investors are now focused on U.S. Fed Chair Jerome Powell's address and inflation data later this week.

Option Traders Corner

Max Pain

Nifty 50 - 25,850

Bank Nifty - 54,000

Nifty 50 - 25,969 (Pivot)

Support - 25,906, 25,807, 25,744

Resistance - 26,067, 26,130, 26,228

Bank Nifty - 54,011 (Pivot)

Support - 53,882, 53,663, 53,534

Resistance - 54,231, 54,360, 54,579

Have you checked our latest Brand Ad

Did you know?

Thermal power capacity to go up

Thermal power capacity of 28.4 GW is under construction, and will be installed by FY2032, according to the union ministry of power.

Disclaimer