Namaste! Aaj ka news roundup, Newswala style!

MARKETS

Markets: Markets extended their losing streak for the seventh session, dragged down by IT, oil & gas, and telecom stocks, though gains in banking, metals, auto, and FMCG sectors offered some relief. Investor sentiment remained cautious amid sustained fund outflows and surging US bond yields.

TOP STORIES

Nifty 50 Earnings Head for a 5-Year Low

What happened?

The Nifty 50 firms are facing their weakest earnings growth in five years, with FY25 estimates down to just 5%. In Q2FY25, operating profits grew by a mere 4% year-on-year, the slowest in at least four quarters. 

Revenue growth was limited to 6%, while profit margins for 2,626 companies (excluding banks, financials, and oil firms) shrank. 

Why it matters?

The slowdown is broad-based, with rising input costs and weak consumption squeezing profits. Analysts at Kotak Institutional Equities noted disappointing results across net sales, EBITDA, and net profits. 

For example, Asian Paints had to spend more to maintain market share, while JSW Energy faced declining tariffs and weak sales. Citi and Jefferies have downgraded their earnings expectations for several companies, signalling caution for investors. 

On the positive side, firms like Dr. Reddy’s posted 16.5% sales growth, and Larsen & Toubro impressed with a 21% jump in revenues, showing some resilience in select sectors.

Conclusion

India Inc. is clearly under pressure, with weak demand, rising costs, and slowing growth making it a tough quarter. While a few sectors like pharma and engineering have managed to shine, the broader market remains subdued. Investors may need to focus on defensive stocks or those benefiting from niche opportunities. For now, it seems like companies are bracing for a tough road ahead.

PAISON KA KHEL

ACME secures ₹3,753 crore for renewable projects

ACME Sun Power has secured a ₹3,753 crore loan from REC Ltd for 320 MW renewable energy projects. Solar power will light up Jaisalmer, Rajasthan, while windmills will energise Bhuj and Jam Khambhaliya, Gujarat.

A power purchase deal with SJVN and grid connectivity are already in place. With this boost, ACME is set to advance India’s renewable energy goals, adding to its 1,340 MW operational and over 5,000 MW upcoming capacity.

Tata to take over Pegatron’s iPhone plant

Tata Electronics is buying a 60% stake in Pegatron’s iPhone factory in Tamil Nadu, forming a joint venture. Tata will manage daily operations, while Pegatron keeps 40% and offers tech support. This plant, with 10,000 employees, makes 5 million iPhones a year.

The deal boosts Tata’s role as an Apple supplier and supports Apple’s plans to expand in India. Tata already runs an iPhone plant in Karnataka and is building another in Hosur. With India set to make 25% of iPhone shipments this year, it’s a big step for “Make in India.”

TOP STORIES

Reliance Group Makes Big Comeback 

What happened

Anil Ambani’s Reliance Group has announced a revival plan to raise ₹17,600 crore. The funds will be used to grow its key companies, Reliance Infrastructure (Reliance Infra) and Reliance Power. 

Reliance Infra aims to raise ₹4,500 crore through an equity issue, ₹7,100 crore via foreign currency bonds, and ₹6,000 crore through institutional placements. The group has also created the Reliance Group Corporate Centre (RGCC) for guidance. 

Why it matters

The revival plan is a crucial step for Reliance Group, which has been dealing with debt and financial struggles for over 15 years. The proposed ₹17,600 crore infusion aims to clear debts and fuel future expansions across various sectors like power, infrastructure, and defence. Reliance Infra has already reduced its debt to ₹475 crores, with a net worth of ₹9,041 crore, positioning itself for new ventures, including metro rail projects and defence manufacturing. 

Despite facing a challenge over alleged fake documents submitted by Reliance Power, the group is moving forward with its "Vision 2030" growth strategy.

Zoom out

Reliance Power has secured 1,270 MW of renewable energy projects in Bhutan, marking a strong push into the green energy sector. Reliance Infra is expanding its footprint with a metro line in Mumbai, multiple road projects, and power distribution in Delhi. Additionally, through Reliance Defence, the group is setting up a major manufacturing facility in Maharashtra, further diversifying its portfolio. 

GLOBAL NAZARA

Russia cuts gas to Austria over payment spat 

Russia has stopped gas supplies to Austria after a payment dispute with OMV, Austria's energy giant. OMV withheld payments for gas as part of a €230 million arbitration claim, prompting Gazprom to pull the plug on Saturday. 

Despite this, Russia continues to send 42.4 million cubic meters of gas daily to Europe via Ukraine, meeting rising demand from other buyers. Austria, however, remains unfazed, relying on ample gas reserves.

Meta gets a ₹213-crore slap 

The Competition Commission of India (CCI) has fined Meta ₹213 crore, citing abuse of dominance through WhatsApp's controversial 2021 privacy policy update. The policy forced users to share data with Meta companies like Facebook, undermining their ability to opt-out.

The CCI ordered WhatsApp to stop sharing user data for advertising with Meta entities for five years. For non-advertising purposes, WhatsApp must clearly specify what data is shared and why.

TOP STORIES

Green Hydrogen and Profits Keep Waaree Shining Bright

What happened?

Waaree Energies posted a 14.77% rise in net profit for Q2 FY25, reaching ₹361.65 crore compared to ₹315.09 crore last year. Revenue growth was modest, increasing just over 1% to ₹3,574.37 crore. The company announced plans to invest ₹600 crore in its subsidiaries to develop infrastructure for renewable energy projects and bidding pipelines. 

It is also exploring new areas, like manufacturing green hydrogen electrolysers and lithium-ion energy storage systems, with detailed plans expected in two months. Meanwhile, Waaree’s stock rose 6.46%, closing at ₹3,106 on November 18.

Why it matters

Waaree Energies, a leader in India’s solar energy sector with a 12 GW PV module manufacturing capacity, is making bold moves to expand its footprint in renewable energy and green hydrogen. These initiatives align with India’s push toward sustainable energy solutions. 

With a ₹600 crore investment and ambitious plans in the pipeline, the company aims to stay ahead in the renewable energy race. Its stellar IPO and solid profits prove it’s got the fuel for growth, but future success hinges on how well it executes its diversification strategy.  

Conclusion

The company's strong Q2 profits and robust IPO debut last month—oversubscribed 76.34 times and listed at a 66.3% premium—highlight investor confidence in its growth potential. However, stagnant revenue growth may raise eyebrows, making its diversification into energy storage and hydrogen crucial for maintaining its edge.

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