Credyfi Weekly Wrapup (6/1/25 - 12/1/25)
12 Jan 2025 4 mins Investing
Market Performance This Week
This week proved challenging for the markets as Nifty slipped by 2.5%, and Sensex followed with a 2.2% dip compared to the previous week. The decline reflected cautious investor sentiment driven by concerns over a new virus and anticipation of Q3 earnings reports, which kept the market under pressure throughout the week.
Q3 Results Update
The much-awaited Q3 earnings season kicked off, offering a mix of celebrations and disappointments:
TCS shone brightly, reporting a 12% YoY rise in net profit to ₹12,380 crore, with revenue touching ₹63,973 crore. Stocks surged 5.62% on Friday as investors cheered the strong performance.
On the flip side, Tata Elxsi disappointed with a 10% drop in earnings QoQ, causing its stock to plummet by 8%.
IREDA impressed with a 27% profit growth YoY, recording ₹425.38 crore in net profit.
Mahindra's ₹4,500 Cr EV Plant and Pricing
Mahindra unveiled its ambitious plans for a ₹4,500 crore Electric SUV plant in Chakan. This state-of-the-art facility will manufacture 90,000 cars annually. Among the lineup are two exciting EVs:
Mahindra BE 6, priced between ₹18.90–₹26.90 lakh.
Mahindra XEV 9e, priced at ₹21.90–₹30.50 lakh.
The move marks a significant leap in India’s EV revolution!
Zomato's 15-Minute Delivery Returns
Zomato is spicing up the food delivery game! After Swiggy's launch of Bolt, a 10-minute delivery service, Zomato has re-entered the quick-delivery space with its own 15-minute service, promising speed and convenience from top restaurants. The competition in fast delivery just got fiercer!
UPI Market Share and Paytm's Fall
In the UPI space, PhonePe held its dominant position, leading with a 47.7% market share through 7.98 billion transactions worth ₹11.76 lakh crore.
Google Pay followed with 36.7% share and transactions worth ₹8.22 lakh crore.
However, Paytm, with a modest 6.87% share, saw its stock drop by 7%, reflecting investor disappointment.
Sensex Falls Over HMPV Concerns
The week began with a significant fall in the Sensex, which plunged by 1,258 points. Initially, there were concerns regarding the HMPV (Human Metapneumovirus), a respiratory virus that led to market jitters. Despite the Health Ministry's clarification that HMPV is not as severe as COVID-19 and doesn’t require lockdowns or travel restrictions, these concerns added to investor anxiety.
However, experts have pointed out that the real reasons behind the market slump were not just the virus but also broader economic factors. The Indian rupee showed signs of weakness, and muted bank earnings further fueled investor worries. Predictions suggest that the rupee could depreciate further to ₹90–92 per dollar over the next 6–10 months, adding more pressure on market sentiment.
Why Elon Musk Warns About India's and China's Population Decline
Elon Musk has reignited concerns about global population decline, calling it humanity’s greatest threat. Sharing projections on X (formerly Twitter), Musk highlighted sharp population drops by 2100: India could lose 400 million people, falling to 1.1 billion, while China may shrink by 731 million to just 731.9 million. This decline stems from falling fertility rates, aging populations, and emigration. Conversely, Nigeria’s population is expected to surge to 790.1 million, overtaking China as the second-most populous nation. Musk emphasizes the economic, social, and technological risks tied to these demographic shifts.
India's GDP Growth Projected to Fall to 4-Year Low of 6.4%
India's real GDP growth for FY 2024-25 is projected to slow down to 6.4%, a significant dip from the 8.2% growth recorded in the provisional estimates for FY 2023-24. This slowdown is primarily due to weaker performances in key sectors such as manufacturing and services, which have not seen the same growth momentum as in the previous year. The revised estimate of 6.4% is also lower than the Reserve Bank of India’s forecast of 6.6%, highlighting the cooling down of economic activity across various industries.
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Author - Abhishek Sonawane
Abhishek Sonawane, an MBA graduate from the prestigious Indian Institute of Management Visakhapatnam (IIMV), brings over ten years of experience in the finance domain. His extensive background includes various roles in financial management and strategy, providing him with a comprehensive understanding of the financial landscape. Abhishek’s expertise and dedication to financial education make him an authoritative voice in personal finance, helping readers make informed financial decisions.