Indian stock markets witnessed a day of moderate gains, with the Sensex edging higher and the Nifty surpassing the 24,650 mark. Positive momentum was observed in select stocks, with Honasa Consumer and ITC among the notable performers.
The BSE Sensex experienced a marginal increase, reflecting a cautious but optimistic sentiment among investors. The NSE Nifty also mirrored this trend, maintaining its position above the crucial 24,650 level. Overall, the broader market demonstrated strength, outperforming the leading indices. The S&P BSE Mid-Cap index and the S&P BSE Small-Cap index both recorded gains, indicating healthy participation from a wider range of stocks. Market breadth was positive, with more stocks advancing than declining.
Honasa Consumer, the parent company of brands like Mamaearth and The Derma Co., saw its share price surge. Recent data indicates a positive trend for Honasa, with the stock reflecting an increase of 1.76% to ₹275.15. Over the past month, the stock has added 27.59%, significantly outperforming both the BSE Fast Moving Consumer Goods index and the SENSEX. However, the company's Q4 FY25 results revealed a mixed performance. While revenue jumped 13% year-on-year to ₹533.6 crore, net profit dropped 18% to ₹25 crore. The EBITDA margin also declined to 5.1% from 7.1% in the previous year. Despite the profit dip, Honasa's brands have shown impressive growth. Mamaearth continues to perform strongly in online and modern trade channels, achieving double-digit growth. The Derma Co. has also made significant strides, with offline annualized revenue crossing ₹100 crore, marking substantial progress for a D2C brand expanding into omnichannel retail.
ITC also experienced an upward movement in its stock price. The company's shares closed 1.58% lower at Rs 426.1 apiece on the BSE. ITC reported a consolidated net profit of ₹19,727.37 crore for Q4 FY25, a nearly fourfold increase compared to the same period last year. This surge in profit was largely due to an exceptional gain from discontinued operations related to the demerger of the company's hotels business. Revenue from operations rose marginally to ₹20,376.36 crore. The board of directors recommended a final dividend of ₹7.85 per share. For the entire fiscal year, ITC's consolidated net profit stood at ₹34,746.63 crore, with revenue from operations reaching ₹80,942.76 crore.
The market's positive close was influenced by a rebound in IT and metal stocks. Sectoral indices largely closed in the green, with realty, metal, and smallcap stocks leading the gains. Nifty Realty, Nifty Metal, and Nifty Smallcap 100 all saw substantial increases. However, banking stocks underperformed, with Nifty Bank and Nifty Private Bank experiencing declines. Market volatility eased, with India VIX slipping.
Global factors also played a role in shaping market sentiment. Concerns regarding foreign fund outflows and the financial situation in the United States persist. Thirty-year US bond yields touched their highest level in 19 months, and Moody's downgraded the US credit outlook.
