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Who doesn’t want their savings to be secure and grow simultaneously? As we carefully choose the banks we deposit our hard-earned money, here’s something to bring some cheer. Public sector banks (PSBs) have extended their winning streak for the third consecutive day, with many reaching new record highs. 

This upward trend is driven by various factors, creating a positive outlook for the sector. All 12 banks in the Nifty PSU Bank index experienced gains. 

New Records Achieved

As several leading PSBs saw significant stock price jumps on Thursday, Bank of India Punjab and Sind Bank were at the forefront, with gains of 5.8% and 5.3%, respectively. Here’s what the numbers look like for these and other players:

• Canara Bank: The shares jumped to reach a new high of ₹594.7 each, increasing by almost 5%. The stock has risen continuously since the bank shared its Q3 results on January 24, gaining more than double (104%) in a year.
• Bank of Baroda (BoB): Similarly, Bank of Baroda’s shares reached a new high of ₹277 each, increasing by 3.5%. The bank’s shares have consistently risen since the Q3 results were announced.
• State Bank of India (SBI): Shares of State Bank of India (SBI) went up by 2.43% to reach a new highest price of ₹761.5 each during today’s session. According to a recent report by Motilal Oswal, a local brokerage firm, they still recommend buying SBI shares and set a target price of ₹860 each.
• Bank of Baroda (BOB): In the final week of January, BoB shares surged by 12.40%, marking the most significant weekly increase since February 2021. Since the beginning of CY24, it has risen by 19%.

5 Reasons for the Upward Trend

Several key factors are contributing to the current rally in PSB stocks:

1. Strong Financial Performance:

• Q3 FY24 saw impressive results for many PSBs, with solid profit growth and improved asset quality.
• According to data reported by PTI, the combined profit of 12 PSBs jumped 3.84% to ₹30,297 crore compared to the previous year. 
• This positive financial performance shows the improved health of the sector and prepares well for future growth.

2. Attractive Valuations:

• Compared to private banks, PSBs are currently trading at lower valuations, making them appear more attractive to investors.
• The valuation gap offers a chance for prices to go up later. As PSBs do better and narrow this gap, there’s a big chance for prices to increase.

3. Government Initiatives:

• The Indian government has implemented various measures to support PSBs, including capital infusions and reforms.
• These initiatives aim to strengthen the sector and improve its efficiency, enhancing investor confidence.

4. Economic Growth:

• The Indian economy is projected to grow steadily in the coming years, creating a favorable environment for businesses, including banks.
• This expected growth presents many opportunities for PSBs to expand their loan portfolios and increase profitability.

5. Focus on Retail Banking:

• Many PSBs are actively expanding their retail banking operations to tap into a growing consumer base.
• This shift towards retail banking is expected to drive future growth and profitability for the sector.

Here’s a list of all 12 PSU banks listed on the National Stock Exchange (NSE):

NSE PSU Bank List To Know

1. Allahabad Bank
2. Bank of Baroda
3. Bank of India
4. Bank of Maharashtra
5. Canara Bank
6. Central Bank of India
7. Indian Bank
8. Indian Overseas Bank
9. Punjab National Bank
10. State Bank of India
11. UCO Bank
12. Union Bank of India

In the first nine months of this fiscal year, PSB’s total profit surged by 40.17%. to a huge ₹ 98,358 crore, up from ₹70,166 crore last year. This remarkable growth wasn’t just for one period. Q1 and Q2 showed steady profits, with ₹34,418 crore and ₹33,643 crore earned respectively. This consistent growth could be a reason for you to feel confident and interested in this sector.

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*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

For 28 years, India has zoomed around in Hyundai’s cars since its launch here in 1996. Now, the motor company is revving its engines for an ambitious ride on the Indian stock market with an IPO valued at a potential $3 billion!

More than a financial move, with the IPO, the South Korean auto giant is shifting gears to conquer new territories, captivate the Indian market, and secure a premium valuation.

Why India? 

Well, why not India? We have everything going for us that will benefit Hyundai. Firstly, the immense potential the Indian automotive industry has. The economy is booming, the middle class is growing, people have more disposable incomes, and the younger generation is looking for luxury. So, car sales are expected to skyrocket in the coming years. 

Hyundai is already the second-largest carmaker in the country, with a 15% market share, and wants to capitalize on this wave to become the undefeated leader.

Source: Promote Digitally

As Hyundai considers a valuation of $30 billion in India, the business here might be worth more than half the company and its current market cap in Korea. This news fueled a 5% stock surge, pushing their price to a three-year high.

Why an IPO? 

The answer is simple: funding. The IPO will provide Hyundai with the financial muscle to:

• Expand its manufacturing – Currently, Hyundai has two plants in India. The IPO funds will allow them to build new facilities, increase production capacity, and cater to the growing demand.

• Launch new models focusing on electric vehicles (EVs), which is important for navigating India’s increasingly strict emission norms and the growing global demand for sustainable transportation. Hyundai has already announced plans to launch six EVs in India by 2024.

• Take on rivals – Maruti Suzuki, the current market leader, is a stiff competitor. The IPO funds will give Hyundai the resources to invest in research and development, improve marketing strategies, and offer more competitive products.

• Boost brand image – A successful IPO can significantly enhance Hyundai’s brand image and reputation in India, attracting more customers and investors.

Beyond the Numbers

The IPO is also strategically addressing the “Korea discount” phenomenon. Korean companies often trade at lower valuations than their global counterparts. A successful IPO in India, with a potentially higher valuation, could set a benchmark for other Korean companies and help them overcome this “discount.”

Also, while KOSPI, Hyundai’s home country, South Korea’s stock market, has climbed a decent 30% in the past four years, it’s just not as exciting as India’s skyrocketing growth – the benchmark indices have doubled. So, Hyundai wants to jump on this momentum and raise a whopping $3 billion by selling shares in India, hoping to get a bigger piece of the pie in this booming market.

The Road Ahead

The success of the IPO depends on several factors. Effective marketing, building investor confidence, and navigating the regulatory landscape are crucial. Additionally, Hyundai needs to ensure its EV strategy resonates with Indian consumers and that its new models are well-received.

What it Means for India

The IPO could prove to be a symbiotic relationship. For the Indian consumer, it could mean more choices, better competition, and potentially faster adoption of EVs. It could also lead to increased employment opportunities and contribute to the growth of the Indian economy.

It could be an exciting opportunity to participate in the growth of the Indian automotive industry and a leading global carmaker. 

Hyundai’s IPO in India is more than just a financial transaction. It’s a strategic move for the company, the Indian automotive industry, and the Indian economy as a whole.

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*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

There was a time when even a million bucks sounded like an impossibly huge amount. But Reliance Industries Limited (RIL) rewrote the script, becoming the first Indian company to cross a mind-boggling ₹20 lakh crore in market capitalization. That’s a number so significant that writing it numerically will be a task to read! And it also deserves a closer look. 

So, how did this oil and gas giant, once known for its petrol pumps, reach such dizzying heights?

From Barrels to Bytes

RIL’s journey wasn’t always about high-speed internet and streaming subscriptions. Its roots lay deep in the oil and gas industry, where it became a significant player. However, the company underwent a bold transformation under Mukesh Ambani’s leadership. 

Jio, the telecom arm, became a game-changer, disrupting the market with affordable data plans and sparking a digital revolution in India. Reliance Retail, already a household name, further expanded its reach, offering everything from groceries to electronics.

These weren’t just random moves. They were calculated bets on emerging sectors and changing consumer preferences. Jio, for example, capitalized on India’s growing mobile phone user base and their thirst for affordable data.  This move disrupted the telecom landscape and created a massive digital ecosystem for RIL, paving the way for further expansion into e-commerce and entertainment.

Riding the Waves of Opportunity

RIL’s success wasn’t just about internal transformations. The company also skillfully rode the waves of external trends. India’s booming economy and rising disposable incomes fueled demand for its diverse offerings. The government’s push towards digitalization further fuelled Jio’s growth.

RIL’s smart investments in renewable energy also positioned it as a leader in a sector with immense potential. RIL ensured its long-term sustainability and investor confidence by diversifying its portfolio and staying ahead of the curve.

Past Performances: A Track Record of Success

Reliance Industries Limited’s market capitalization (MCAP) has shown consistent growth over the past five years, experiencing a remarkable 104% increase from 2019 to 2024. While the growth wasn’t linear, the company saw significant jumps in 2020 (32%) and 2021 (27%).

Although the growth slowed in 2022 and 2023, it remained steady at around 2.5%, culminating in a further 14% increase in 2024 to reach the historic 20 lakh crore mark. 

Beyond the Numbers: The Impact and Significance

RIL’s achievement is more than just a financial milestone. It serves as a testament to India’s growing economic prowess and the potential of its homegrown companies. It inspires other businesses to think big, innovate, and diversify, paving the way for a more vibrant and competitive Indian economy.

What’s Next for RIL?

As per a Bernstein report, a robust 20% CAGR is expected in EPS growth until the end of FY26. This optimism is driven by two key sectors:

1. Retail: On a tear with a 24% year-on-year growth, this segment is expected to be sustainable through store expansion and increased e-commerce penetration.

2. Telecom: After the 5G rollout, the focus will shift to monetization, with Jio’s revenue expected to grow at a 15% CAGR for the next three years. By FY25, Jio’s market share is projected to reach 47 percent, fueled by 500 million subscribers and an over 11 percent tariff hike.

While RIL’s oil-to-chemical earnings might remain flat due to stagnant volume growth, the future looks bright for its renewable energy investments, with solar and battery capacity expansion driving future growth.

Looking Ahead

Reaching the ₹20 lakh crore mark is a remarkable achievement, but it’s not the end of the story. RIL’s ambitions are far from over. The company continues to invest heavily in new technologies like 5G and green energy, aiming to solidify its position as a leading player in these crucial sectors. With its track record of innovation and strategic thinking, RIL is poised to continue its growth trajectory, setting new benchmarks and shaping the future of Indian business.

So, the next time you hear about Reliance, remember – it’s not just a company; it’s a symbol of India’s economic aspirations, reaching new heights and inspiring others to do the same.

*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

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The global market sentiment remains upbeat, as major indices hold on to last week’s gain. Rebound in tech stocks, better-than-expected corporate earnings, stable treasury yields amid economic and Fed evaluation, easing inflationary conditions, and a boost in consumer sentiment, all fostering optimism among investors globally. However, the market is keeping a cautious eye on crude oil prices, as it is witnessing an upward pressure, which may stoke inflationary concerns.

A snapshot of the major world market indices this week

World Stock Market Index: US Markets

Backed by solid macro indicators, all major US indices continued to rally, building on the previous week’s gains. Increasing hopes for rate cuts in the second half of 2024, resilience in corporate earnings, and economic indicators have turned the market outlook bullish.

Dow Jones

Dow Jones Industrial Average ended the week flat with a marginal gain of 0.05%, and in Friday’s session, the index saw a modest decline of 0.23%.

S&P 500

The S&P 500 index, which includes America’s top 500 companies, surpassed 5,000 for the first time on Friday. More than 80% of S&P 500 companies have exceeded earnings expectations, which surpassed the 67% rate observed since 1994. On Friday’s session, the index was up by 0.48% and concluded the week with gains of 1.28%.

Nasdaq

Propelled by the rally in semiconductor and other tech stocks, the Nasdaq rose by 1.20% on Friday’s session. It ended the week with a cumulative gain of 2.27%, continuing last week’s momentum.

World Stock Market Index: European Markets

Muted performance was witnessed across the European markets as a lack of economic indicators for investors to consider. The market is keeping a close watch on the inflation numbers and central bank commentary amidst improving consumer sentiments and corporate earnings.

FTSE

FTSE, the UK’s blue-chip stock index showcased mixed performance, closing the week with a modest loss of 0.56%. And, in Friday’s session, the index was down by 0.30%. However, the overall market sentiment remains positive with the Bank of England indicating it has shifted its focus from tightening after recent falls in UK inflation.

CAC

CAC 40, the French stock market index was down by 0.24% during Friday’s session, however, concluded the week with a cumulative gain of 0.73%.

DAX 

The DAX, which tracks the 40 largest German companies, performed mixed this week, even as annual inflation fell and edged closer to the 2% target. Strong corporate earnings also failed to boost the index this week, as it closed flat. On Friday, the index fell by 0.22%.

World Stock Market Index: Asian Markets

The Asian market was largely positive during the week, but concerns around the Chinese economy continue to be a cause of concern. China’s consumer prices fell at the fastest rate in 15 years last month, stoking fears of deflation and affecting global growth. It was the biggest drop since the 2009 global financial crisis.

Nifty 50

The Nifty 50, India’s benchmark index, performed mixed this week, closing flat with a marginal loss of 0.06%. On Friday, it rose by 0.23%. Better-than-expected corporate earnings continue to fuel the market’s positive sentiment. In this quarter’s monetary policy, the RBI kept interest rates and the policy stance steady, which was on the expected lines. 

Nikkei 225

Japanese shares continue to trade higher, as Nikkei 225, breached another psychologically important level of 37,000 for the first time since 1990. The index was flat on Friday’s session, however, closed the week with gains of 2.04%.

Straits Times

Led by the decline in banking stocks and concerns surrounding the Chinese economy, Singapore’s primary stock index traded on a weak note throughout the week. On Friday’s session, the index was down by 0.15%, and on a week-on-week basis, it posted a cumulative loss of 1.3%.

Hang Seng

China’s deflation, corporate earnings, and chatter around the condition of the Chinese economy continued to weigh on the performance of Hang Seng. The index recorded a drop of 0.84% on Friday but managed to post weekly gains of 1.37%.

Taiwan Weighted

Rebound in tech stocks in helping Taiwan’s stock index to continue moving higher and keeping the market sentiment positive. On Friday, the market was up by 0.2% but concluded the week with a loss of 0.13%.

KOSPI

KOSPI, the South Korean stock market index, continued to rise, with a weekly gain of 3.06%. Foreign inflows, as well as renewed expectations of a regulatory push to improve corporate governance standards and increase shareholder return, have improved investor sentiment in the Korean market for 2024.

SET Composite

Thailand’s primary index, SET Composite, showcased mixed performance during the week, amid concerns of an economy in recession. On Friday, it traded flat, posting a minor loss of 0.02%, while, on a week-on-week basis, it posted gains of 0.31%.

Jakarta Composite

This Indonesian index showcased mixed performance during the week ahead of the 2024 presidential election. It traded flat on Friday’s session, reporting a modest loss of 0.17% and on a week-on-week basis, the index gained 0.38%.

Shanghai Composite

China’s benchmark index, the Shanghai Composite rose by 1.29% on Friday, and on a week-on-week basis, the index’s cumulative gain was 3.43%.

Wrapping Up

The rebound in tech stocks, better-than-expected corporate earnings, improving economic sentiments, and rising hopes for rate cuts in the early second half of 2024 are all contributing to global stock market resilience. However, caution should be exercised, as the deflationary situation in the world’s second-largest economy may have an impact on global growth and investor confidence.

Doesn’t the burning afternoon sun make you wish you could dial the heat down? That may be wishful thinking, but harnessing that very sun to power our daily lives — from the morning coffee maker to the streetlights – isn’t.

It’s a vision Maharashtra is turning into reality with its groundbreaking ₹2,76,300 crore investment in green hydrogen — clean, renewable energy from sunlight and wind. This isn’t just some distant government policy but a soon-to-be reality that will directly impact your future, wallet, and maybe even your next job search!

Let’s dive into the heart of this green energy revolution and explore what it means for you.

What is Green Hydrogen?

It’s a clean fuel produced using renewable energy like solar or wind power. Think of it as bottled-up sunshine ready to power your car, truck, or factory. And the best part? It doesn’t release harmful greenhouse gases like traditional fuels. India ranks 4th globally for total renewable power capacity additions. 

Making Green Hydrogen Dream a Reality

The Maharashtra Govt has partnered with seven leading companies, including heavyweights like NTPC and JSW, to develop massive Green Hydrogen projects. These projects are expected to generate a whopping 910 Kilo Tonnes Per Annum (KTPA) of clean energy to power millions of homes and businesses.

But it’s not just big corporations; smaller players like AVAADA Green Hydrogen and Bafna Solar also contribute, demonstrating the widespread adoption of green technologies. 

Mind-boggling Scale

This green push is also creating a green wave of jobs. The projects are estimated to create a staggering 63,900 employment opportunities, from engineers and technicians to construction workers and logistics specialists. Imagine the ripple effect on the local economy!

If you wonder if it’s all just talk or really happening, then know this: The MoUs signed with these companies are a concrete step. Plus, companies like NTPC and JSW have a proven track record in the energy sector, so they bring the expertise and resources needed to make these projects a success.

Challenges Galore

Building this green infrastructure requires significant investment, and ensuring a smooth transition to clean energy sources will demand careful planning and collaboration. But Maharashtra seems determined to navigate these hurdles, and their commitment is inspiring.

What This Means for Maharashtra

If you live in Maharashtra, you can expect more renewable energy sources like solar and wind power to play a more significant role in your daily life. You might even have the option to switch to a green hydrogen-powered vehicle someday!

Not Just One State’s Story

In the recent budget announcement, Finance Minister Nirmala Sitharaman stated India is aiming big, pledging to achieve net-zero emissions by 2070 and source half its electricity from non-fossil fuels by 2030. Maharashtra’s bold move aligns perfectly with these national goals, setting a precedent for other states.

Solar Stocks are Rising

The performance of solar equities has improved significantly after the commencement of the Pradhanmantri Suryodaya Yojana, indicating a strong market reaction to the Indian government’s commitment to solar power. 

How can you be part of this movement?

Simple steps like installing solar panels on your rooftop, opting for energy-efficient appliances, and supporting businesses that prioritize sustainability can make a difference. Remember, every action, however small, contributes to a greener tomorrow.

Maharashtra’s green energy push is a beacon of hope for the state and the entire nation. It’s a testament to the power of collaboration, innovation, and a shared vision for a sustainable future. Are you ready to join the movement and help Maharashtra light up green? Together, let’s make this clean energy revolution a reality!

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*Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as recommendation or investment advice by Research & Ranking. We will not be liable for any losses that may occur. Investment in securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL, and certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.