Tale of the Tape 

Hiya ya’ll.

Nifty (+0.4%) and Sensex (+0.3%) extended their gains for a third session in a row! Midcaps were flat, while Smallcaps (+0.1%) posted muted gains. The advance-decline ratio was evenly split. Check out the Stocktwits Sentiment Meter:

It was an even mix of red and green across sectors. Real Estate (+1.8%), Oil & Gas (+1.6%) and Pharma (+1.2%) were the top gainers. IT (-1.1%) and Auto (-0.4%) witnessed the most selling pressure.

Is the Bajaj Finance turnaround finally here? Read our top story to get all the deets.

Tata Motors (-7%) was the top Nifty loser after a rough Q3. Meanwhile, Bharat Electronics soared after a massive Q3 show. More details below.

Whirlpool of India cracked -20% after its promoter abandoned ship. The US Federal reserve has paused rate cuts. Understand what’s at play below.

Triveni Turbine (+2%) was in focus after UBS initiated coverage on the stock; it sees a +42% upside from current levels.

Info Edge (+2%) will consider its first-ever stock split on February 5.

Q3 results reaction. SRF (+6%) hit a 52-week-high after signalling a strong future outlook. Olectra Greentech (+7%) after its PAT jumped +72% YoY.

Laurus Labs jumped +8% after Trump resumed funding for its global AIDS drug programme.

ABB India cracked -6% after its parent firm’s India region orders fell -21% YoY.

Here are the closing prints:

Stock
Hamara Bajaj

Bajaj Finance is up +15% YTD in a weak AF market! ICYMI - the stock posted negative returns in 2024, the second time in the last three years. It’s gone through some rough times. So is it finally starting to turn a corner or is this a fake recovery? Here’s what you need to know.

 Recap time: The NBFC biggie was hit by a triple whammy over 2023-24 including higher credit costs, worsening asset quality & slowing growth. It had regulatory issues and also missed earnings estimates. With high valuations, it was kinda hit by the anti-BAAP sentiment.

So what’s changing? Well, Q3 results were solid. Bajaj posted a double-digit jump in net profit (+18% YoY) and net interest income (+23% YoY), beating Street estimates. Assets under management (AUM) jumped +28% YoY to hit Rs 3.98 lakh cr while new loans booked were its highest-ever at 12.06 million. Fun fact: a large part of this is because its new product lines (green finance, small business loans) are starting to pay off! Credit costs also came in lower than expected at 2.15% in Q3, which is a positive.But, rural loans are still suffering and Bajaj’s asset quality still isn’t out of the woods with gross NPA ticking up to 1.12% vs 0.95% last year. Finally, the company has guided for a solid FY26, with AUM growth of +25% YoY. FYI - this is partly why Jefferies has raised its target price to Rs 9,270 p/sh vs Rs 8,880 earlier.

Big Picture: Bajaj Finance is showing signs of a turnaround. But let’s be clear. When you’re as big as Bajaj Finance, your performance = Indian economy’s performance. Untill India comes out of its growth slump and urban demand bounces back, be careful!

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