FPI Withdrawals Hit Rs 1.12 Lakh Crore in Early 2025 - Impact on Indian Markets

FPI Outflows Reach Rs 1.12 Lakh Crore in First Two Months of 2025

Foreign Portfolio Investors (FPIs) continued their selling spree in the Indian equity markets, withdrawing Rs 34,574 crore in February 2025. This latest exodus has pushed the total outflow for the first two months of 2025 to a staggering Rs 1.12 lakh crore, signaling growing concerns among international investors about the Indian market's valuation and growth prospects.

February Outflows Add to Market Pressure

The February withdrawal follows an even larger exodus in January, when FPIs pulled out Rs 78,027 crore from Indian equities. This persistent selling by foreign investors has significantly impacted market performance, with the BSE's benchmark Sensex falling over 6% year-to-date.

Market analysts attribute this sustained selling to several key factors that have made foreign investors cautious about the Indian market in the near term.

Key Factors Driving FPI Outflows

Elevated Valuations

"Elevated valuations of Indian equities, alongside concerns about corporate earnings growth, have led to a sustained outflow of FPIs," explained Vipul Bhowar, Senior Director - Listed Investments at Waterfield Advisors.

The premium valuations that Indian stocks have been commanding over the past year have made many institutional investors wary, especially as Q3 corporate earnings reports for fiscal year 2025 have been modest at best.

Global Economic Factors

The recent market sell-off has been influenced by multiple global economic factors:

• Rising US bond yields
• Strengthening US dollar
• Global economic uncertainties
• Rising global trade tensions

These factors have led to a shift in investor focus towards US assets, as they are perceived as safer havens during periods of economic uncertainty.

Commodity Prices and Consumer Spending

Market experts note that falling commodity prices and reduced consumer spending have adversely impacted corporate profits, further diminishing the appeal of Indian equities to foreign investors.

Sectoral Impact and Paradoxical Selling

"FPIs are focused on selling in India because valuations in India are high and moving money to Chinese stocks where valuations are much lower," noted V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

An interesting paradox in the current selling pattern is that FPIs are selling heavily in the financial services sector, which is actually performing well and offers attractive valuations. This seemingly contradictory approach suggests that the selling might be driven more by global asset allocation strategies rather than India-specific fundamentals.

Debt Market Also Affected

The cautious approach by foreign investors extends beyond equities to the debt market as well. In February, FPIs withdrew:

• Rs 8,932 crore from debt general limit
• Rs 2,666 crore from debt voluntary retention route

This comprehensive withdrawal across asset classes indicates a broader risk-off sentiment toward Indian markets.

Historical Context of FPI Flows

The current outflows mark a significant shift from recent years' patterns:

• 2025 (Jan-Feb): Rs 1.12 lakh crore net outflow
• 2024: Minimal net inflow of just Rs 427 crore
• 2023: Extraordinary net inflow of Rs 1.71 lakh crore
• 2022: Net outflow of Rs 1.21 lakh crore

The sharp contrast between the extraordinary inflows in 2023 and the current outflows highlights the cyclical nature of foreign investment and how quickly market sentiment can shift.

Market Outlook

As the Indian market experiences this prolonged selling pressure, domestic investors are watching closely for signs of stabilization. With the Sensex down for eight consecutive days, market participants are questioning whether this losing streak will break in the coming week.

For retail investors, this correction may present buying opportunities in fundamentally strong companies, especially in sectors that have been disproportionately affected by the foreign investor exodus despite solid business performance.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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Excelsoft Technologies Files DRHP with SEBI for Rs 700 Crore IPO - Educational SaaS Player's Public Offering

Excelsoft Technologies Files DRHP with SEBI for Rs 700 Crore IPO

SaaS company Excelsoft Technologies has taken a significant step toward going public by filing its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise Rs 700 crore through an Initial Public Offering (IPO).

IPO Structure and Fund Allocation

The proposed IPO consists of a fresh equity issue worth Rs 210 crore and an Offer for Sale (OFS) component of Rs 490 crore by the promoter-selling shareholders—Pedanta Technologies and Dhananjaya Sudhanva.

According to the DRHP, the company plans to utilize the net proceeds for several strategic initiatives:

• Funding capital expenditure for purchasing land and constructing a new building
• Upgrading and improving external electrical systems at its existing facility in Mysore
• Enhancing the company's IT infrastructure
• General corporate purposes

Interestingly, Excelsoft has also mentioned the possibility of a pre-IPO placement through either a further issue of equity shares up to Rs 30 crore or through a secondary sale of equity. Should this materialize, the fresh issue size would be reduced proportionately.

Company Profile and Global Presence

With over two decades of industry experience, Excelsoft Technologies has established itself as a provider of technology-based solutions across diverse learning and assessment segments. The company operates through long-term contracts with enterprise clients worldwide.

As of December 2024, Excelsoft serves 71 clients spread across 17 countries, including the USA, UK, India, Singapore, Australia, Japan, Malaysia, Saudi Arabia, UAE, and Canada.

The company has built an impressive roster of prominent and long-standing clients, including:

• Pearson Education
• AQA Education
• Colleges of Excellence
• NxGen Asia
• Pearson Professional Assessments
• Sedtech for Technology Education & Learning WLL
• Ascend Learning LLC
• Brigham Young University – IDAHO
• Training Qualifications UK
• Surala Net
• Excel Public School
• The Chartered Quality Institute

Financial Performance

For the fiscal year 2024, Excelsoft reported revenue from operations of Rs 198.3 crore and a profit after tax (PAT) of Rs 12.75 crore. According to the draft prospectus, there are no listed companies or peers in India that have a business composition and segment contribution similar to Excelsoft, highlighting its unique position in the market.

Industry Outlook and Market Trends

The global SaaS (Software as a Service) market has experienced rapid growth in recent years, with vertical SaaS emerging as a dominant trend. Vertical SaaS solutions offer specialized, industry-tailored applications that address specific sector needs.

This shift toward specialization has positioned vertical SaaS to grow at an even faster pace than general SaaS offerings. According to an Arizton report cited in the DRHP, vertical SaaS could account for nearly 50% of the entire SaaS market by 2030, representing a significant opportunity for companies like Excelsoft that focus on specific verticals such as education and assessment.

IPO Details and Listing Plans

Anand Rathi Advisors has been appointed as the Book Running Lead Manager for the IPO. Following the successful completion of the offering, Excelsoft's equity shares are proposed to be listed on both the BSE (Bombay Stock Exchange) and NSE (National Stock Exchange).

For retail investors and market participants interested in the education technology and SaaS sectors, this IPO represents an opportunity to invest in a company with established global operations and a focus on the rapidly growing vertical SaaS market.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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IPO Calendar: NAPS Global India IPO Opens March 4, 2025 – Market Outlook & Updates

IPO Calendar: Muted Market Sentiments Limit Offerings to Just 1 This Week

Current Market Sentiment

Despite the overall bullish long-term outlook, the primary market remains quiet due to bearish momentum in the secondary market. Only one SME IPO is scheduled to open next week, while four SME listings will hit the exchanges.

Looking ahead, analysts expect around 1,000 IPOs to launch over the next two years. Major names like Zepto, LG India, and Reliance Jio are among the companies preparing to go public.

Upcoming IPO This Week

NAPS Global India IPO

• Issue Opens: March 4, 2025
• Price Band: ₹90 per share
• Issue Size: 13.2 lakh equity shares (Fresh Issue, No OFS)
• Retail Quota: 50%
• Non-Retail Quota: 50%
• Use of Proceeds: Working capital & corporate purposes
• Industry: Textile Import & Garment Manufacturing

Company Overview: NAPS Global India is a wholesale importer of textile products, supplying raw materials to garment manufacturers in Maharashtra, India. The company primarily imports cotton and man-made fabrics from China and Hong Kong, playing a crucial role in the supply chain.

Market Trends in Textile Imports

During April-October FY 2025, the total textile imports in India stood at $5,425 million, with the man-made textiles category accounting for 34% ($1,859 million).

Due to a demand-supply gap in the sector, NAPS Global India has built a strong procurement network in China and Hong Kong, positioning itself as a key supplier to manufacturers requiring bulk textile imports.

Other IPO Developments

Excelsoft Technologies Files DRHP for ₹700 Crore IPO

Software-as-a-Service (SaaS) company Excelsoft Technologies has filed its Draft Red Herring Prospectus (DRHP) with SEBI for an upcoming ₹700 crore IPO. More details are expected soon.

IPO Lead Managers & Listing Details

The Aryaman Financial Services is the Book Running Lead Manager (BRLM) for the NAPS Global India IPO, while Cameo Corporate Services is handling the registrar duties. The shares will be listed on the NSE SME platform.

Conclusion

While IPO activity remains slow due to market volatility, long-term prospects remain strong with several major IPOs in the pipeline. Investors should stay informed about upcoming public offers and secondary market trends.

Disclaimer: This article is for informational purposes only and should not be considered financial advice. Please consult a financial expert before making investment decisions.

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Gold Price in India (March 1, 2025): 22K & 24K Rates Drop, Silver Remains Flat

Gold Prices Decline Amid Strong US Dollar

On Saturday, March 1, 2025, gold prices in India saw a sharp decline due to the rising US Dollar Index and Treasury yields. Investors are keenly watching the U.S. Personal Consumption Expenditures (PCE) report, which may impact future price trends. Additionally, concerns about U.S. tariff policies could provide some support for gold prices.

Gold Price in India Today

• 24K Gold: ₹8,662 per gram
• 22K Gold: ₹7,940 per gram
• 18K Gold: ₹6,497 per gram

Gold prices per 100 grams have also declined:

• 22K (100g): ₹7,94,000 (₹2,000 drop from ₹7,96,000 yesterday)
• 24K (100g): ₹8,66,200 (₹2,200 drop from ₹8,68,400 yesterday)
• 18K (100g): ₹6,49,700 (₹1,600 drop from ₹6,51,300 yesterday)

Similarly, 10 grams of gold prices saw a decline:

• 22K (10g): ₹79,400 (₹200 drop from ₹79,600 yesterday)
• 24K (10g): ₹86,620 (₹220 drop from ₹86,840 yesterday)
• 18K (10g): ₹64,970 (₹160 drop from ₹65,130 yesterday)

Silver Price in India Today

The price of silver remained unchanged at:

• ₹97 per gram
• ₹97,000 per kilogram

Analysts predict that silver may face resistance at $31.75 and could drop to $30.70. In the Indian market, MCX Silver May futures are expected to resist near ₹96,600 and move lower toward ₹94,200.

Gold Market Outlook

Spot Gold Forecast

According to ICICI Direct Research, gold is expected to face resistance near $2,925 and may decline toward $2,860. A strong U.S. dollar and higher Treasury yields are putting pressure on the metal, while inflation concerns and ETF inflows could offer some support.

MCX Gold Prediction

For MCX Gold April futures, analysts predict:

• Support at ₹84,600 (20-day EMA)
• Resistance at ₹85,800
• If gold falls below ₹84,600, it could further drop toward ₹84,000

Conclusion

Gold prices in India have declined due to a strong U.S. dollar and rising bond yields. Silver prices remain stable but may experience fluctuations in the coming days. Investors should closely monitor inflation data and Federal Reserve policy announcements for future price trends.

Disclaimer: The above information is for educational purposes only and should not be considered financial advice. Please consult a professional before making any investment decisions.

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ACME Solar to Invest Rs 17,000 Crore in Renewable Expansion by FY26

ACME Solar to Invest Rs 17,000 Crore in FY26 for Renewable Energy Expansion

Massive Capex Plan to Enhance Renewable Capacity

ACME Solar has announced plans to invest Rs 17,000 crore in capital expenditure for FY26, focusing on hybrid and round-the-clock renewable energy solutions. The company is also exploring opportunities in nuclear energy, although these plans are still in the early stages.

By 2027, ACME Solar aims to expand its renewable energy capacity to 5 GW, with a broader target of reaching 7 GW by 2028. The company’s strategy prioritizes high-revenue hybrid and Firm and Dispatchable Renewable Energy (FDRE) projects.

Scaling Up Renewable Energy Projects

FDRE projects, which integrate renewable energy with storage solutions, ensure a stable supply of green power by addressing the intermittency issues associated with renewables. The company will roll out its capacity expansion in two phases, starting in April 2025.

As of the nine-month period of FY25, ACME Solar's portfolio stands at 6,970 MW, with 2,540 MW already operational and 4,430 MW under construction. Notably, nearly 49% of its projects focus on hybrid and FDRE solutions.

Financial Performance and Revenue Growth

The company’s operational capacity of 2,540 MW is expected to generate an annual EBITDA of up to Rs 1,800 crore. ACME Solar's power purchase agreements (PPAs) extend for 25 years, shielding it from merchant power market fluctuations.

The distribution of its power sales is split between central and state off-takers at 67% and 33%, respectively. This reflects the rising demand for renewable energy from both government sectors.

Strategic Investments and Debt Reduction

In line with its expansion strategy, ACME Solar recently invested Rs 4,400 crore in a 1,200 MW inter-state transmission system project in Jaisalmer, Rajasthan. The company has also taken steps to reduce its net debt, using IPO proceeds to cut it by Rs 2,070 crore. Additionally, ACME has secured Rs 16,500 crore in financing for ongoing hybrid and FDRE projects.

The company has already secured grid connectivity for 4,430 MW of its under-construction capacity, with an additional 2,000 MW available for future bidding.

Exploring Nuclear Energy Investments

With the Indian government encouraging private sector participation in nuclear energy, ACME Solar is evaluating potential investments in the sector. This move could diversify its portfolio and strengthen its position in the evolving energy market.

Strong Financial Performance in Q3 FY25

ACME Solar reported a 9.9% year-on-year revenue growth in the third quarter of FY25, reaching Rs 401 crore. EBITDA rose by 15.7%, while net profit saw an impressive increase of 152.1%.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not constitute financial advice. The opinions are those of the sources cited and not necessarily of this website or its management. Investing in financial markets involves risks, and readers should conduct their own research before making investment decisions. Please consult a qualified financial advisor for personalized advice.

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Meir Commodities India Files for IPO with SEBI to Raise Funds for Expansion

Meir Commodities India Files Draft IPO Papers with SEBI to Raise Capital

Mumbai-based agricultural commodities trader Meir Commodities India Ltd has taken a significant step toward going public by filing preliminary papers with the Securities and Exchange Board of India (SEBI). The company is seeking regulatory approval for its initial public offering (IPO), positioning itself to expand its operations in the competitive commodities trading sector.

IPO Structure and Fund Utilization

According to the draft red herring prospectus (DRHP) filed on February 27, 2025, Meir Commodities' proposed IPO features a balanced structure combining both fresh equity issuance and an offer-for-sale component:

• Fresh issue of 52.94 lakh equity shares
• Offer-for-sale (OFS) of 35.29 lakh equity shares by promoter Rahil Irfan Iqbal Shaikh

The company plans to utilize proceeds from the fresh issue strategically, with Rs 48.75 crore earmarked primarily for:

• Funding working capital requirements
• General corporate purposes

This capital infusion is expected to strengthen Meir's operational capabilities and support its expansion initiatives in both domestic and international markets.

Business Profile and Market Presence

Established in 2018, Meir Commodities India has quickly positioned itself as a significant player in the B2B trading of agricultural commodities. The company specializes primarily in:

• Sugar and khandsari
• Sugar-allied products
• Rice, pulses, and spices
• Other agricultural commodities

Operating as a strategic intermediary, Meir Commodities connects sugar mills with distributors, facilitating efficient supply chain management across the agricultural commodities sector. While its core business revolves around domestic distribution through third-party networks, the company has established a strong international footprint as well.

Global Reach

Meir has developed an impressive global presence, with export operations spanning more than 15 countries, including:

• United Arab Emirates
• Turkey
• Singapore
• United Kingdom
• Various European markets

Complementing its export activities, the company also imports pulses and spices from diverse global sources including Tanzania, Russia, South Africa, UAE, Canada, and Singapore to satisfy customer requirements effectively.

Strategic Acquisitions and Subsidiaries

A key component of Meir Commodities' growth strategy has been its strategic acquisitions to strengthen market position and expand operational capabilities:

• 99.90% stake in Shri Agri Trade Ltd (UAE-based wholly-owned subsidiary, acquired September 2022)
• 90% stake in Shree Comtrade
• 90.10% stake in Shree Salasar Agriculture India Ltd
• 25% stake in Shree Agri Logistics

These strategic investments have enabled Meir to secure robust procurement networks and strengthen its supply chain infrastructure across multiple markets.

Financial Performance

The company has demonstrated solid financial performance, as evidenced by its recent financial results:

Fiscal Year 2024 (FY24)

• Consolidated revenue from operations: Rs 910.65 crore
• Profit After Tax (PAT): Rs 7.87 crore

Six months ended September 30, 2024

• Revenue from operations: Rs 541.64 crore
• Profit After Tax (PAT): Rs 2.27 crore

IPO Details

Smart Horizon Capital Advisors has been appointed as the sole book-running lead manager for the offering. Upon successful completion of the IPO process, Meir Commodities' equity shares are proposed to be listed on both the National Stock Exchange of India Ltd (NSE) and BSE Ltd.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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Four SME Companies to List Next Week While Mainboard IPO Activity Pauses

Four SME Companies Set to List on Stock Exchanges Next Week Amid Quiet Mainboard Space

The primary market is set for a relatively quiet period in the coming week with activity concentrated exclusively in the Small and Medium Enterprises (SME) segment. While the mainboard space takes a breather with no scheduled IPOs, retail investors can look forward to one new SME IPO launch and four SME listings on the exchanges.

New IPO Launch: NAPS Global India

NAPS Global India will be the sole company launching its initial public offering in the upcoming week. The company's IPO is structured as a fixed price issue of Rs 11.88 crore, consisting entirely of a fresh issue of 13.20 lakh shares. Investors interested in this offering can participate during the subscription period running from March 4 to March 6, 2025.

According to the IPO timeline, share allotment is expected to be finalized on March 7, with the listing on the BSE SME platform tentatively scheduled for March 11, 2025. This offers a quick turnaround for investors looking to participate in this smaller-sized offering.

Upcoming SME Listings

The week ahead will see four SME companies making their stock market debut after successfully completing their IPO processes:

1. Balaji Phosphates Ltd.

Balaji Phosphates' public offering is structured as a book-built issue totaling Rs 50.11 crore. The IPO comprises a fresh issue of 59.40 lakh shares (Rs 41.58 crore) and an offer for sale of 12.18 lakh shares (Rs 8.53 crore). The subscription period, which began on February 28, is set to conclude on March 4, with listing scheduled for March 7. The company has set the price band at Rs 66 to Rs 70 per share for this offering.

2. Nukleus Office Solutions Ltd.

Nukleus Office Solutions completed its IPO worth Rs 31.7 crore, which consisted of a fresh issue of 13.55 lakh shares. The bidding process took place from February 24 to February 27, with share allotment finalized on February 28. Investors can look forward to the company's market debut on the BSE SME platform on March 4, 2025.

3. Shreenath Paper Products Ltd.

Shreenath Paper Products raised Rs 23.36 crore through its IPO, which comprised a fresh issue of 53.1 lakh shares. The subscription period ran from February 25 to February 28. The allotment process is expected to be completed by March 3, with the shares scheduled to list on the BSE SME platform on March 5, 2025.

4. Beezasan Explotech Ltd.

Beezasan Explotech is also set to make its market debut in the coming week, joining the lineup of SME listings. The company has successfully completed its IPO process and will be listing on the stock exchanges, adding to the activity in the SME segment.

Market Outlook

The absence of mainboard IPOs during the upcoming week represents a brief pause in what has otherwise been an active primary market. This temporary lull provides an opportunity for market participants to focus on the SME segment, which continues to see consistent activity.

For retail investors with an appetite for smaller offerings and potentially higher growth prospects, the upcoming SME listings present interesting opportunities to diversify their portfolios with exposure to emerging businesses across various sectors.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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NLC India Secures 200 MW Wind Power Project at Rs 3.74/kWh from SJVN

NLC India Secures Contract for 200 MW Wind Power Project from SJVN at Competitive Tariff

In a significant development for India's renewable energy sector, state-owned NLC India Ltd has successfully secured a contract to develop and operate a 200 MW wind power project from SJVN Ltd. This achievement marks a substantial expansion of the company's renewable energy portfolio and reinforces its commitment to sustainable power generation.

Competitive Bidding Success

The contract was awarded through a competitive e-reverse auction process, with NLC India securing the project at an attractive tariff of Rs 3.74 per kilowatt-hour (kWh). This competitive rate highlights the increasing cost-effectiveness of wind energy solutions in India's evolving power market.

According to the company's statement released on March 1, 2025, the wind power project is expected to generate 526 million units (MU) of clean green power annually. This substantial clean energy production will help offset an equivalent amount of greenhouse gas emissions, contributing significantly to India's climate change mitigation efforts.

Advancing Renewable Energy Ambitions

This new contract aligns perfectly with NLC India's ambitious target of achieving 10 GW of renewable energy capacity by 2030. The company has been steadily expanding its green energy portfolio since beginning its renewable energy journey with a 51 MW wind project in 2013.

The newly secured 200 MW project represents a major milestone in NLC India's wind energy development, increasing its total wind power capacity to over 300 MW, including ongoing projects currently under development.

Leadership Perspective

Commenting on this achievement, Mr. Prasanna Kumar Motupalli, Chairman & Managing Director of NLC India Ltd, stated: "Winning this 200 MW wind project further strengthens our commitment to sustainable and clean energy solutions. Our investments in renewable energy will play a crucial role in strengthening India's green economy and meeting global climate commitments."

This statement underscores the company's strategic focus on expanding its renewable energy footprint while contributing to national and global sustainability goals.

Alignment with National Green Energy Policy

The project is particularly significant in the context of India's broader energy transition objectives. According to the company's statement, the newly secured project will contribute to India's commitment to increasing non-fossil fuel-based power generation, directly supporting the National Green Energy Policy.

This development also advances the government's ambitious target of achieving 500 GW of non-fossil fuel capacity by 2030, a key component of India's climate action strategy announced at international forums.

Future Implications

For investors and market watchers, this contract win signals NLC India's growing competitive position in the renewable energy sector. The company's expanding wind energy portfolio, coupled with its strategic vision for renewable capacity growth, positions it as a significant player in India's clean energy transition.

As the company continues to diversify from its traditional coal mining operations into renewable energy development, such projects represent important milestones in its business transformation journey.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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NMDC Reports 18% Jump in February Iron Ore Production, Advances Toward 100 MT Capacity Goal

NMDC Reports 18% Growth in February Iron Ore Production While Sales Remain Steady

The state-owned mining giant NMDC Limited has achieved an impressive 18% year-on-year increase in iron ore production for February 2025, while sales volumes maintained stability compared to the previous year. This performance highlights the company's operational efficiency and positions it well for its ambitious expansion targets.

February Production Reaches Historic High

NMDC's iron ore production reached 4.62 million tonnes (MT) in February 2025, marking a significant 18% jump from the 3.92 MT recorded in the same month last year. This output represents the highest February production in the company's history, demonstrating its growing operational capabilities.

Meanwhile, sales figures remained virtually unchanged at 3.98 MT compared to 3.99 MT in February 2024, indicating stable demand despite increased production capacity.

Strong Operational Momentum

The substantial increase in production volumes reflects NMDC's commitment to operational excellence. Mr. Amitava Mukherjee, who currently holds additional charge as CMD of NMDC, attributed this growth to the company's efficient mining ecosystem.

"Consistent growth like this is an outcome of an efficient mining ecosystem driven by an innovative and ingenious spirit," stated Mukherjee. He further emphasized that the team is "relentless in its pursuit of crossing new milestones in FY25."

Year-to-Date Performance

For the 11-month period ending February 2025, NMDC reported:

• Total production of 40.49 MT, marginally higher than the 40.24 MT from the same period last fiscal year
• Sales volume of 40.20 MT, slightly down from 40.48 MT in the comparable period

These figures demonstrate NMDC's ability to maintain consistent production volumes over extended periods while adapting to market conditions.

Ambitious Expansion Plans

NMDC, which stands as India's largest iron ore miner, has set its sights on substantial growth in the coming years. The company has committed to an ambitious target of building a 100 MT iron ore mining capacity by 2030.

To achieve this significant expansion, NMDC recently announced a capital expenditure plan of ₹70,000 crore. This investment is expected to fund various expansion projects, technological upgrades, and new mining opportunities.

Future Outlook

Looking ahead, Mukherjee expressed optimism about the upcoming financial year, noting that it is "lined up with determined expansion and new opportunities." The company appears well-positioned to capitalize on growing demand for iron ore, a critical raw material for India's expanding steel industry.

As India continues its infrastructure development push and manufacturing growth, NMDC's increased production capacity is likely to play a vital role in ensuring stable supply of this essential commodity to domestic steel producers.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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Paytm Parent One97 Communications Under ED Scrutiny For Alleged FEMA Rule Violations

In a significant development for the fintech sector, One97 Communications Ltd, the parent company of digital payments giant Paytm, has come under regulatory scrutiny. According to a recent exchange filing, the Enforcement Directorate (ED) has issued a notice to the company for alleged violations of Foreign Exchange Management Act (FEMA) rules related to the acquisition of two subsidiaries.

ED Notice Details

The notice, received on February 28, 2025, pertains to alleged contraventions of certain provisions of FEMA dating back to the period between 2015 and 2019. These alleged violations are specifically related to One97 Communications' acquisition of two subsidiaries:

• Little Internet Private Limited (LIPL)
• Nearbuy India Private Limited (NIPL, erstwhile Groupon)

The regulatory action extends beyond just the parent company, with notices also being issued to the two acquired subsidiaries and certain current and past directors and officers of all three entities.

Company's Response

In its communication to the Bombay Stock Exchange (BSE), One97 Communications has clarified a crucial point: the alleged contraventions attributed to the two acquired companies—Little Internet Private Limited and Nearbuy India Private Limited—pertain to a period when these entities were not subsidiaries of One97 Communications.

The company has emphasized that the matter is being addressed with a focus on resolving it in accordance with applicable laws. To navigate the regulatory challenges, One97 Communications stated it is "seeking necessary legal advice and evaluating appropriate remedies."

Importantly for users of its services, Paytm has assured that there is no impact of this regulatory matter on its consumer and merchant services, stressing that "all services are fully operational and secure, as always."

Acquisition History

The context of these alleged FEMA violations relates to acquisition transactions that took place in 2017, when Paytm acquired the two companies in question. This was during a period of significant expansion for the fintech giant as it diversified beyond its core payments business.

Nearbuy India Private Limited has an interesting history of its own. The business was originally started as Groupon India by Ankur Warikoo, who served as its founding CEO in 2011. In a management buyout, Warikoo and the core management team of Groupon India purchased the India business from Groupon in 2015, making it an independent entity before it was subsequently acquired by One97 Communications.

Understanding FEMA Implications

For investors and market watchers, it's important to understand what FEMA violations could potentially mean. The Foreign Exchange Management Act regulates all foreign exchange transactions in India, including:

• Foreign direct investments
• Overseas acquisitions
• Transfer of shares between residents and non-residents
• External commercial borrowings

Violations can lead to penalties that may include substantial financial impositions. However, it's worth noting that in many cases, FEMA violations are settled through administrative processes rather than criminal proceedings.

Market Impact

This development comes at a challenging time for Paytm, which has already been facing regulatory headwinds in recent months. Investors will be closely monitoring how this regulatory scrutiny might affect the company's operations and stock performance in the near term.

For the broader fintech sector, this case highlights the increasing regulatory attention being paid to cross-border transactions and foreign investments, suggesting that companies operating in this space may need to exercise heightened compliance vigilance.

The precise nature of the alleged contraventions has not been fully detailed in the public domain, making it difficult to assess the potential financial implications for One97 Communications. However, the company's proactive disclosure to the stock exchange indicates a commitment to transparency as it works through the regulatory process.

As this situation develops, stakeholders will be watching for any further clarifications from the company or actions from the Enforcement Directorate that might provide greater insight into the severity of the alleged violations and their potential impact on One97 Communications' financial health and regulatory standing.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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Sugar Production Drops By 14% With Sharp Decline In Cane Availability

India's sugar industry is experiencing a significant downturn in production, with recent data revealing a concerning trend for investors and market watchers. As of February 28, 2025, sugar production has fallen by nearly 14% compared to the same period last year, according to latest figures released by the National Federation of Cooperative Sugar Factories (NFCSF).

Current Production Scenario

The state-wise crushing data for sugar season 2024-25 shows production at 220 lakh tonnes, down from 254.7 lakh tonnes recorded during the same period last year. Industry experts attribute this decline to three primary factors: higher diversion toward ethanol production, lower sugarcane availability, and reduced recovery levels.

Maharashtra, India's second-largest sugar producer, has been hit hardest with an 18% year-on-year decline in sugar production—the steepest drop among all states. Other major producing states have also recorded significant decreases, with Karnataka seeing a 16% reduction and Uttar Pradesh experiencing an 8% fall in production.

What's particularly notable is that these declines have occurred despite relatively stable or only slightly lower crushing volumes in some regions, indicating that increased ethanol diversion and lower sugar recovery rates are playing substantial roles in the reduced output.

Revised Production Estimates

Based on current trends, the NFCSF has revised its forecast for the 2024-25 season. Total sugar production is now estimated to reach 265 lakh tonnes, down from the previous estimate of 270 lakh tonnes. This represents a significant drop from the 319 lakh tonnes produced in the previous season.

The downward revision reflects ongoing challenges in the sector and suggests that the production shortfall may have broader implications for sugar prices, related industries, and potentially export capabilities.

Declining Sugarcane Crushing

As of the end of February 2025, overall sugarcane crushing has dropped 6.8% year-on-year, compared to a 4.5% decline in the same period last year. This accelerating downward trend is primarily due to reduced cane availability in Maharashtra and Karnataka.

The most recent fortnight data reveals an even more concerning pattern, with sequential cane availability declining sharply from 320 lakh tonnes to 210 lakh tonnes. The fortnight-wise breakdown by state shows:

• Uttar Pradesh: 10% decrease year-on-year to 86 lakh tonnes (from 95.9 lakh tonnes)
• Karnataka: Steepest fortnight decline of 57%
• Maharashtra: 43% fortnight decline

For the overall season, Karnataka has witnessed a 3.9% decline in cane availability, while Maharashtra has recorded a more substantial 12% drop. Uttar Pradesh has performed relatively better, showing flattish performance for the season thus far.

Early Closure of Sugar Mills

The reduced availability of sugarcane has led to a sharp increase in the number of mills concluding their crushing operations earlier than usual. The total number of mills closing operations jumped dramatically from 51 mills as of February 15, 2025, to 114 mills by February 28, 2025.

According to the NFCSF report, a total of 533 sugar mills participated in crushing during the current season. Of these, 186 mills had concluded operations by February 28, compared to just 72 mills closing by this date last year—a clear indication of the shortened crushing season due to limited cane availability.

Market Implications

The continued decline in sugar production could have several important implications for the market:

• Potential upward pressure on domestic sugar prices
• Reduced export potential, affecting India's position in the global sugar market
• Increased focus on ethanol production as mills divert more cane toward this alternative
• Possible impact on related industries, including food processing and beverage sectors

For investors monitoring the sugar sector, these developments signal a challenging period ahead, with possible opportunities in companies that have diversified into ethanol production or have strong operational efficiency despite the reduced cane availability.

The sugar industry's performance should be viewed alongside broader agricultural trends and government policies concerning ethanol blending and export regulations, as these factors will continue to shape the sector's trajectory in the coming months.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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Week Ahead: Auto Sales, Macro Data, FII Flow, Trump Tariffs Among Key Triggers for Indian Stock Market

Week Ahead: Auto Sales, Macro Data, Trump Tariffs Among Key Triggers for Indian Stock Market

The Indian stock market finds itself on the precipice of a bearish phase after extending its losing streak for the third consecutive week. Domestic equity benchmarks have hit their lowest levels since June 2024, with sentiment deteriorating among both domestic and foreign investors. The primary concerns revolve around potential US trade tariffs and unfavorable global market conditions.

Markets Under Pressure: Current Scenario

Both Sensex and Nifty 50 concluded their week-long consolidation phase with a sharp 3% decline. The NSE benchmark has posted its longest monthly losing streak in the last 29 years—a trend not seen since 1996. The indices closed at their weekly lows of 22,124.70 and 73,198.10 respectively, extending losses for the eighth consecutive session.

Friday witnessed the most significant intraday drop of 2025, with the frontline indices shedding 6% in February alone. Both major indices are now down 15-16% from their September peaks, putting them dangerously close to bear market territory. The broader and more domestically focused mid-cap index has already confirmed a bear market, falling more than 20% from its September 24 record close.

Investors' wealth plunged by an astounding ₹9 lakh crore on Friday, bringing the total weekly wealth erosion to ₹20 lakh crore. All major sectors aligned with the broader market, posting losses, with IT, realty, and energy emerging as the top underperformers.

Key Market Triggers for the Coming Week

1. Auto Sales and Macro Data

As March begins, market participants will closely track high-frequency data. Monthly auto sales figures will provide insights into consumer spending patterns and economic health. Additionally, India's Composite PMI output for February will be released on Wednesday, March 5, with forecasts pointing to a figure of 60.6.

This composite output, which represents a weighted average of manufacturing output and services business activity indices, will be crucial in determining market sentiment. A reading better than expected would signal positive economic momentum, while a lower-than-anticipated figure could further pressure the markets.

2. Foreign Institutional Activity

Institutional activity continues to be a major concern, with net foreign institutional investors (FII) outflows of ₹22,011 crore in the cash segment during the previous week. While domestic institutional investors (DII) provided some support with inflows of ₹22,252 crore, foreign portfolio investors (FPIs) pulled out equities worth ₹34,574 crore in February alone.

An interesting paradox in FII selling is their heavy divestment from financial services—a sector that continues to perform well and offers attractive valuations. The net sales figure for 2025 up to February stands at a concerning ₹1,12,601 crore.

3. Trump's Tariff Policies

Investors will be watching developments around Donald Trump's tariff announcements closely. Concerns over the impact of US tariffs on global trade have been a significant factor behind the recent market weakness. Any concrete announcements or policy clarifications in this regard could trigger substantial market movements.

4. Global Cues

The upcoming week will be dynamic for global markets, driven by key macroeconomic data releases from major economies:

• US S&P Global Manufacturing PMI (February) - Expected at 51.6
• UK S&P Global Manufacturing PMI (February) - Forecasted at 46.4
• China S&P Global Manufacturing PMI (February) - Projected at 50.6
• US initial jobless claims data on March 6 (projected at 250K)
• US unemployment rate for February on March 7

Federal Reserve Chairman Jerome Powell's speech on Friday will be particularly significant, as it may provide insights into the central bank's economic outlook and potential policy directions.

5. Corporate Actions

Several companies, including Metro Brands and SBI Life Insurance, will trade ex-dividend in the coming week. Additionally, some stocks will trade ex-split and ex-bonus, which could influence individual stock movements and overall market sentiment.

Technical Outlook

From a technical perspective, Nifty is approaching a crucial support zone of 21,800-22,000. Market analysts suggest that a decisive break below this range could extend the decline toward the 21,000-21,200 zone, potentially pushing the index officially into bear market territory.

The quarterly GDP data for Q3 FY25 met expectations at 6.5%, with the agriculture sector posting steady growth. This indicates a likely improvement in the kharif crop, which could potentially support rural consumption. However, in the near term, market conditions are expected to remain weak.

A gradual recovery is anticipated only when earnings improve from Q1 FY26 and global trade policy uncertainties subside. Investors should prepare for continued volatility as both global and domestic challenges persist.

Disclaimer: The views and investment tips expressed in this article are for informational purposes only and do not represent financial advice. The views expressed are those of the sources cited and not necessarily those of this website or its management. Investing in equities or other financial instruments carries the risk of financial loss. Readers must exercise due caution and conduct their own research before making any investment decisions. We are not liable for any losses incurred as a result of decisions made based on this article. Please consult a qualified financial advisor before making any investment.

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