News

Corporate actions often create ripples across the stock market, impacting stock prices, investor sentiment, and long-term valuations. The most recent instance of this effect was seen on 29th April 2025, when Bajaj Finance announced a bonus share issue, a stock split, and declared a dividend, making it one of the most shareholder-friendly steps by a major Indian financial company. What does this series of corporate actions signify? How are the shareholders affected by this move? Let’s understand. 

Overview of Bajaj Finance Limited:

Founded 1987 as a vehicle financing firm, Bajaj Finance Limited (BFL) has grown into one of India’s largest and most diversified non-banking financial companies (NBFCs). BFL serves over 101 million customers as of March 2025, with operations across 4,145 locations in India. The company has established a strong presence in urban and rural markets, offering financial services tailored to various customer segments. Over the years, it has introduced 26 product lines and 51 product variants, supported by technology-driven innovations such as the EMI Card and Flexi loan offerings.

1. Operational Overview:

Bajaj Finance operates across three segments:

• Consumer finance: personal loans, gold loans, home loans, lifestyle, and digital product financing
• SME finance: business loans, working capital loans, and loans against property
• Commercial lending: vendor finance, lease rental discounting

The company also accepts deposits and offers investment products like fixed deposits and mutual funds. Through subsidiaries Bajaj Housing Finance Ltd. and Bajaj Financial Securities Ltd., it has expanded into housing finance and capital markets.

2. Financial Picture:

Bajaj Finance has recorded steady financial growth over the past five fiscal years. 

The company’s key profitability metrics, such as ROA and ROE, stood at 4.6% and 19.2%, respectively, while asset quality remained stable with a Gross NPA of 0.96% and Net NPA of 0.44%. Bajaj Finance maintained a healthy Capital Adequacy Ratio (CAR) of 21.93% as of March 2025.

Additionally, 

Financial Metric	FY25 (as of March 2025)	FY24 (as of March 2024)	YoY Growth
Assets Under Management (AUM)	Rs.416,661 crore	Rs.3,30,615 crore	26%
Net Interest Income (NII)	Rs.9,807 crore	Rs.8,013 crore	22%

Corporate Actions Of Bajaj Finance:

On 29th April 2025, Bajaj Finance Limited unveiled a trio of shareholder-centric corporate actions: bonus shares, a stock split, and substantial dividend payouts.

1. Bonus Share Issue – 4:1 Ratio:

Bajaj Finance announced a bonus share issue in a 4:1 ratio. Shareholders will receive four additional equity shares for every one share held, with a face value of Rs.1 each. The bonus issue will be funded through the company’s free reserves of Rs.497 crore. The process is scheduled for completion on or before 27 June 2025, subject to necessary approvals. This is the company’s second bonus issue, which occurred in September 2016 in a 1:1 ratio.

2. Stock Split – 1:2 Ratio:

The board approved a stock split in the Ratio of 1:2. Each equity share with a face value of Rs.2 will be subdivided into two equity shares of Rs.1 each. The record date for the split has yet to be announced, and completion is planned by or before 27 June 2025. This is Bajaj Finance’s second stock split; the first took place in September 2016 in a 1:5 ratio.

3. Dividend Declaration – Rs 56 per Share:

The company declared a special interim dividend of Rs.12 per share (600% of face value). It recommended a final dividend of Rs.44 per share (2200% of face value), bringing the total dividend to Rs.56 per share for FY25. The special dividend is linked to gains from Bajaj Housing Finance Limited’s IPO. 

The record date for the interim dividend is 9 May 2025, with payment scheduled on or around 26 May 2025. The final dividend is subject to shareholder approval at the AGM on 24 July 2025, with a record date of 30 May and expected payment on or about 28 July 2025. 

Implications Of The Corporate Actions:

• Market Reaction: Shares fell nearly 5% on 30 April 2025, closing at Rs.8,634.50 after the announcements. However, they rebounded 2.7% on 2 May, closing at Rs.8,868, reflecting a short-term market adjustment to the corporate actions.

• Stock Split (1:2): Each existing share will be split into two, doubling the number of shares held while halving the price per share. This does not affect the total value of holdings but improves stock accessibility and liquidity.
• Bonus Share Issue (4:1): Shareholders will receive four additional shares for every one share owned (post-split), increasing their total share count fivefold. The share price will adjust accordingly, with no change in overall portfolio value. Bonus shares are not taxed upon receipt, but capital gains tax applies to future sales.

So, as a result of the corporate actions, say if you owned 1,000 shares of Bajaj Finance before the corporate actions, the 1:2 stock split would double your shares to 2,000. After that, the 4:1 bonus issue would give you 8,000 more shares (4 bonus shares for every 1 held). So, in total, you would now have 10,000 shares. However, while the number of shares increases, the total value of your investment stays the same right after the changes, as the share price adjusts accordingly. 

Bottomline:

Bajaj Finance’s recent corporate actions, including declaring bonus shares, stock splits, and dividends, showcase its strong financial position and commitment to rewarding its shareholders. While these changes will affect your shareholding and the stock’s market dynamics, the overall value of your investment remains unchanged initially. As always, evaluating these developments carefully and conducting thorough research before making any investment decisions is essential.

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 a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

FAQ

India’s largest standalone health insurer, Star Health and Allied Insurance Co. Ltd., saw its shares fall by 4% on April 30, after posting a staggering 99.7% drop in net profit for the fourth quarter of FY25. The stock, trading at ₹384.7, is now down over 57% from its IPO price of ₹900, highlighting investor concerns amid rising claims and underwriting losses, despite broader annual growth figures. (Source: www.cnbctv18.com)

A Disappointing Q4 Despite Top-Line Growth

For the quarter ended March 31, 2025, Star Health reported a net profit of ₹0.5 crore, down from ₹142.3 crore in the fourth quarter of FY24. While net earned premiums grew 11.9% year-over-year to ₹3,798.3 crore, rising claim ratios and healthcare inflation significantly eroded profitability.

The biggest blow came from its underwriting loss, which ballooned to ₹275.2 crore from ₹91.8 crore in the year-ago quarter, indicating that growing costs were outpacing the premiums earned. The company’s combined ratio, a key metric indicating claims and expenses as a proportion of premium, rose to 101.1%, compared to 97.2% in FY24, breaching the 100% threshold and signaling operational strain. A combined ratio above 100% typically means the company is paying more in claims and expenses than it earns in premiums, which is unsustainable in the long term. (Source: www.cnbctv18.com)

FY25 Full-Year Highlights: Growth Amid Challenges

Despite the Q4 stumble, Star Health’s full-year FY25 numbers painted a more resilient picture:

• Gross Written Premium (GWP): ₹16,781 crore, up 10% from FY24
• Profit After Tax (PAT): ₹787 crore (under IFRS accounting)
• Solvency Ratio: 2.21x (well above the IRDAI’s minimum of 1.5x)
• Lives Covered: 2.3 crore
• Claims Settled: ₹10,350 crore

The company also emphasized expansion in semi-urban and rural India, which contributed to over 51% of total lives covered and 60% of all claims settled. This outreach was supported by an 11 percent increase in its agent base, taking the network to over 7.75 lakh agents. Star Health has been strategically focusing on underserved geographies to tap into first-time insurance buyers, further cementing its retail market leadership. (Source: www.cnbctv18.com)

CEO Outlook: Expansion and Affordability as Twin Goals

Speaking on the results, Anand Roy, MD & CEO, reiterated the company’s focus on growth, accessibility, and service enhancement despite a challenging macro environment:

“Star Health continues to lead the retail health insurance space with strong growth in new business and a commitment to expanding our reach across India. Despite challenges such as rising healthcare costs, we remain focused on enhancing our claims service and providing affordable coverage to millions of Indians.”

Roy also mentioned investments in claims infrastructure and digital transformation initiatives aimed at improving turnaround times and customer satisfaction, especially in Tier 2 and Tier 3 cities. (Source: www.cnbctv18.com)

Industry Context: Robust Demand, Strong Tailwinds

ROBUST DEMAND
India’s insurance sector has experienced significant growth, with the domestic market expanding at a compound annual growth rate (CAGR) of 17% over the past two decades. It is projected to reach ₹1,930,290 crore (US$ 222 billion) by FY26. Increased awareness, favorable regulatory changes, and greater private sector participation have driven this growth. With rising disposable incomes and a heightened sense of financial preparedness following the COVID-19 pandemic, retail health insurance penetration is steadily increasing.

ATTRACTIVE OPPORTUNITIES

• Robotic Process Automation (RPA) and AI will occupy center stage in insurance, driven by new data channels, improved data processing capabilities, and advancements in AI algorithms.
• Bots will become mainstream in both the front and back offices to automate policy servicing and claims management, providing faster and more personalized customer service.
• The integration of predictive analytics is also helping insurers reduce fraud, assess risk more accurately, and personalise product offerings.

POLICY SUPPORT

• The Indian government has increased the Foreign Direct Investment (FDI) limit in insurance companies from 74% to 100%, enabling full foreign ownership. This is aimed at attracting capital and ensuring domestic reinvestment.
• Insurance coverage was provided for 44.6 crore persons under the PM Suraksha Bima and PM Jeevan Jyoti Yojana during FY23.
• Regulatory reforms, such as sandbox frameworks, digital Know Your Customer (KYC) norms, and product innovation guidelines, have further simplified customer onboarding and policy issuance.

INCREASING INVESTMENTS

• Over the past nine years, the sector attracted nearly ₹54,000 crore (US$ 6.5 billion) in FDI, thanks to relaxed regulations.
• The IPO of LIC of India was the largest in Indian history and the sixth largest globally in FY22, underlining investor interest in the insurance sector.
• Private players are increasingly tapping capital markets to fund their expansion and technology upgradation plans, indicating long-term confidence in the sector’s profitability. (Source: www.ibef.org)

Market Reaction: Profit Woes Overshadow Expansion Success

Investors, however, remained focused on the dismal Q4 numbers and the rising pressure of claims. The 4% drop in share price on April 30 reflects broader skepticism, especially given the stock’s long-term performance, which now trades over 57% below its IPO price.

Concerns around the sustainability of underwriting margins, intensifying competition in the retail segment, and persistent inflation in healthcare services have put downward pressure on investor sentiment. Despite the company’s market leadership, analysts are cautious about near-term earnings visibility. (Source: www.cnbctv18.com)

What’s Next for Star Health?

While Star Health’s long-term fundamentals remain intact, especially its strong solvency and expanding distribution, the rising underwriting losses and healthcare inflation remain risks to watch. The company must strike a balance between growth and profitability, especially in semi-urban and rural segments, where margins are often thinner.

The health insurance sector as a whole is also experiencing increased stress due to medical inflation, post-pandemic health awareness, and a rise in high-value claims. Star Health’s future trajectory will likely depend on its ability to rein in claims costs while sustaining premium growth and maintaining customer satisfaction. Collaborations with hospitals, investment in preventative health programs, and recalibration of premium pricing structures may become critical strategies.

Conclusion

Star Health may have covered 2.3 crore lives and grown its GWP by 10%, but in the world of insurance, claims are king. Rising claims have rattled investors. The company now faces a critical inflection point: either find operational efficiency or risk further erosion of shareholder confidence. Strengthening underwriting practices, embracing digital innovation, and managing costs will be key to restoring investor trust and driving future growth.

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 a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

FAQs

Akshaya Tritiya 2025 is here, and gold is once again the center of attention. This year, the festival is being celebrated on Wednesday, April 30. Known as Akha Teej in some parts of India, Akshaya Tritiya is regarded as an auspicious day to bring prosperity and lasting success. While many people mark this occasion with traditional rituals, purchasing gold remains one of the most prominent customs.

But this year feels different. Gold prices have reached historic highs in India, generating considerable interest among both buyers and market observers. If you’ve been following the trend—or even if you haven’t—you’ll find the numbers quite eye-catching.

Gold at Record Highs on Akshaya Tritiya 2025

As of today, gold prices have surged beyond expectations. In Delhi, the cost of 24-carat gold (Gold 999) at 9:00 am today was ₹95,340 per 10 grams, while 22-carat gold is priced at ₹87,400 per 10 grams. This follows a remarkable rise from just a few months ago, when prices had already briefly crossed the ₹1 lakh mark, setting a new all-time high for the commodity in India.

To give this some context, let’s look at the long-term trajectory of gold. In 2015, gold was priced around ₹24,931 per 10 grams. Fast forward to 2025, and that figure has jumped to ₹98000+—a staggering increase over the past decade.

A Look at Gold’s Decade-Long Climb

Let’s break down what this price movement looks like, using specific data points:

• On Akshaya Tritiya in 2019, gold was priced at ₹31,729 per 10 grams.
• On Akshaya Tritiya 2024, gold was trading at ₹73,240 per 10 grams.
• Today, April 30, 2025, gold is priced at ₹98265 per 10 grams (24kt).

From 2019 to 2025, that’s a 209% gain. In just one year, from Akshaya Tritiya 2024 to the present, the price of gold has increased by more than 30%. And in 2025 alone, gold has gained around 23%, or ₹18,000.

This isn’t just a short-term surge. According to data compiled by Forbes India, gold prices have more than doubled in under three years and increased by 50% over the past year. Source: Forbes India

What’s Driving Gold Prices in 2025?

There’s no single reason for the spike. Instead, it’s a combination of global uncertainties and shifting investor sentiment. Here are some of the key factors:

1. Geopolitical Tensions: Trade conflicts between major global economies—particularly the United States and China—have disrupted financial markets, triggering a flight to safety. Gold is often seen as a safe-haven asset during such times, which increases demand and pushes prices up.
   
2. Policy Developments: The global monetary environment is also in a state of flux. Events like the U.S. Fed’s policy changes and political decisions—such as former President Donald Trump’s fluctuating stance on Federal Reserve Chair Jerome Powell—have impacted market expectations and risk appetite.
   
3. Volatility in Global Markets: Ongoing uncertainty in equity and bond markets has made alternative assets, such as gold, more appealing to cautious investors.
   

As a result of these combined forces, gold futures on the MCX (Multi Commodity Exchange) hit a high of ₹99,358 before softening slightly. June contracts are currently down by about 4% or ₹3,700 from that high. However, volatility remains, and market participants are closely watching upcoming policy shifts and global cues.
Source: The Mint

Changing Consumer Behavior: This Akshaya Tritiya

Despite the high prices, consumer interest has not waned ahead of Akshaya Tritiya 2025. According to Prithviraj Kothari, Managing Director of RiddiSiddhi Bullions Ltd (RSBL), people continue to attend in large numbers, especially in South India, where the festival holds strong cultural significance.

However, buying patterns have evolved. With prices hovering near ₹1 lakh per 10 grams, many consumers are choosing:

• Lighter jewellery pieces, often made with one to one-and-a-half sovereigns instead of two.
• Gold coins are easier to purchase in small denominations.
• Exchange schemes, where old jewellery is traded in for new items at full value.

Jewellers are also adjusting. They’re launching new collections, offering discounts on making charges, and promoting alternatives like silver jewellery to appeal to a broader range of customers. Source: The Mint

Historical Returns: A Look Back

For those interested in historical patterns, here’s a quick snapshot of gold’s performance from one Akshaya Tritiya to the next over the last few years:

• 2024–2025: 30% gain
• 2023–2024: 22% gain
• 2022–2023: 17% gain
• 2019–2020: 46% gain

The average annual return over the last 10 years stands at approximately 14%, based on year-on-year price increases from each Akshaya Tritiya. Source: The Economic Times

What Lies Ahead?

There are various projections on how gold may move in the near term. Some analysts see the potential for gold to revisit its peak levels. According to Anuj Gupta of HDFC Securities, domestic MCX gold futures could touch ₹1,00,630 or even ₹1,02,050 under favorable conditions. Internationally, spot gold is being watched closely for movements towards the $3,540–$3,737 range.

That said, these are speculative projections and reflect ongoing global uncertainties more than guaranteed outcomes.

Final Thoughts

Akshaya Tritiya 2025 is being marked by tradition and record gold prices. Whether as a ritualistic purchase or a reflection of broader market sentiment, gold remains culturally and financially significant. However, as this year demonstrates, rising prices are also reshaping how people approach this precious metal, from what they buy to how much they buy, to where they choose to invest their money.

Whether you’re watching the markets or visiting a jewellery store, there’s no denying that gold is in the spotlight this Akshaya Tritiya—and perhaps more so than ever before.

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 a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

Amid the usual large-cap movements in the market, a small-cap stock in the textile sector made waves on Monday, 28 April 2025. Vishal Fabrics Limited, a known name in India’s denim and woven fabric industry, saw its stock jump more than 13% intraday following an acquisition update. The company listed on the NSE announced the acquisition of an additional stake in Nandan Industries Private Limited, a move seen by investors as strategically significant.

The announcement led to a wave of interest, with Vishal Fabrics’ stock opening at ₹25.86 and reaching an intraday high of ₹29.25. It closed at ₹28.72, marking an 11.6% gain over the previous day’s closing price. This development underscores the increasing emphasis of textile companies on consolidation and value chain integration, particularly within the small-cap segment.

Acquisition Details

According to the exchange filing, Vishal Fabrics has acquired 5,28,100 equity shares in Nandan Industries at a price of ₹123 per share. This amounts to a total consideration of approximately ₹6.5 crore. As a result, the company’s stake in Nandan Industries has increased from 23.17% to 35.41%. The transaction has been financed through internal accruals. The management noted that this move aligns with Vishal Fabrics’ broader growth strategy and will help strengthen its presence in related textile operations. Source: Times Now

About Nandan Industries

Nandan Industries Private Limited, incorporated in Maharashtra, operates in the core textile processing segment. Its business activities include manufacturing, weaving, dyeing, bleaching, mercerizing, printing, sizing, and dealing in yarns and fabrics of all kinds.

For the financial year ending March 31, 2024, Nandan Industries reported a turnover of ₹226.04 crore. The company’s authorised capital is ₹6.81 crore, with a paid-up capital of ₹6.09 crore. The authorized share capital of Nandan Industries Private Limited is ₹6.815 crore, divided into 50.40 lakh equity shares of ₹10 each and 17.75 lakh preference shares of ₹10 each.

The paid-up share capital stands at ₹6.09 crore, comprising 43.15 lakh equity shares of ₹10 each and 17.75 lakh preference shares of ₹10 each. Nandan Industries’ business operations and services make it a valuable and strategic partner for Vishal Fabrics.

Source: Live Mint

Market Reaction and Investor Sentiment

The equity markets responded positively to the development, as evident in the stock’s strong intraday movement. A 13% rise in a single session, particularly for a small-cap stock, reflects a significant shift in sentiment. Several factors contributed to this:

• The acquisition demonstrates strategic foresight by Vishal Fabrics.
• It signals financial confidence, given the cash-driven nature of the transaction.
• It increases the potential for future synergies, which could improve operational efficiency and product diversification.

Market participants may interpret the move as a proactive step towards vertical integration — a key factor in enhancing cost controls and expanding market share.

Why This Acquisition Matters

By increasing its stake in Nandan Industries, Vishal Fabrics gains stronger control and alignment with an entity that already plays a role in its value chain. The move is expected to support Vishal Fabrics in the following ways:

1. Operational Synergy: Aligning operations could reduce production costs and streamline supply chains.
   
2. Expanded Product Capability: Nandan’s diversified processing infrastructure can complement Vishal Fabrics’ existing product offerings.
   
3. Improved Scale: A higher stake allows for better strategic influence, potentially leading to improved decision-making and coordination.

Furthermore, this acquisition reflects the broader trend of capacity consolidation in the Indian textile sector, especially among agile small- and mid-cap players seeking long-term sustainability.

Broader Implications for the Textile Sector

The Indian textile industry is highly fragmented, with numerous players across weaving, processing, and garmenting. Strategic acquisitions like this reflect the growing need for vertical integration and operational consolidation to compete effectively in both global and domestic markets.

With rising costs, supply chain volatility, and increased demand for quality and compliance, textile companies are expected to focus more on building robust and integrated ecosystems. Vishal Fabrics’ move could encourage similar actions across the industry, especially among companies with limited in-house processing capacities.

Conclusion

Vishal Fabrics’ decision to raise its stake in Nandan Industries marks a clear step towards strengthening its operational foundation and long-term competitiveness. The market’s positive response reflects confidence in the company’s strategic vision and its ability to build greater value through targeted consolidation. As the textile sector faces rising pressures to streamline and integrate operations, such moves could become critical drivers of growth. Investors and industry observers alike will closely monitor how this strategic alignment unfolds in the coming quarters.

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 a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

FAQs

The primary indices of the Indian stock market marked a green exit yesterday, on 28th April 2025, with a nearly 1.2% rise in both NIFTY and SENSEX. Another index that joined the green bandwagon was the BSE Oil and Gas index with an intraday jump of around 3%. The index touched an intraday high of 26,551.71 yesterday and is currently up by nearly 1%. What factors caused the rally? Let’s decode

BSE Oil And Gas Index Overview

The BSE Oil & Gas Index, launched on 23rd August 2004, serves as a sectoral benchmark reflecting the performance of key players in India’s oil and gas industry. It comprises the top 10 oil and gas companies from the broader BSE 500, covering segments such as exploration, refining, marketing, transmission, and distribution. The top 10 constituents (by weightage as of 25th March 2025) include-

Company	Weight (%)
Oil & Natural Gas Corporation Ltd.	20.68%
Reliance Industries Ltd.	19.13%
Bharat Petroleum Corporation Ltd.	12.66%
GAIL (India) Ltd.	11.47%
Indian Oil Corporation Ltd.	10.92%
Hindustan Petroleum Corporation Ltd.	8.03%
Petronet LNG Ltd.	5.12%
Oil India Ltd.	4.83%
Adani Total Gas Ltd.	3.85%
Indraprastha Gas Ltd.	3.30%

The index is calculated using a modified free-float market capitalization-weighted method, with a capping mechanism, generally a 20% weight cap, to prevent over-concentration. The index undergoes semi-annual rebalancing (in June and December) to remain aligned with the evolving market cap and sector composition. Widely regarded as a benchmark for India’s energy sector, the index is also used as an underlying for sector-focused investment products, offering investors a comprehensive view of the oil and gas space.

The Surge In BSE Oil & Gas Index

As of 28th April 2025, the BSE Oil & Gas index recorded a 3.12% intraday jump and closed at 26,493.02 for the day. 

The reasons for this surge are:

1. Reliance Industries’ Q4 FY25 Results:

Reliance Industries, one of the top three heavyweight constituents of the BSE Oil & Gas Index, delivered robust Q4 FY25 results on 28th April, triggering a nearly 5% jump in its stock. The company reported a consolidated net profit of Rs.19,407 crore, a 2.4% YoY growth, led by an overall good performance in its retail (30.4% net profit growth) and digital services (25.7% net profit growth) arms. 

While revenue from the oil and gas segment was slightly muted, the diversification across consumer and digital verticals drove overall investor optimism—the announcement of a Rs. A 5.5 per share dividend has been added to the positive momentum. The strong financial performance led to positive brokerage commentary and upgrades, positioning Reliance’s rally as a key trigger for the oil and gas index’s rise.

2. Sector-Wide Optimism and Anticipation of Positive Earnings

Other major stocks within the BSE Oil & Gas Index also showed price gains on 28th April. These included BPCL, HPCL, ONGC, IOC, GAIL, Adani Total Gas, and Indraprastha Gas Ltd., with increases ranging approximately between 2% and 4.5%. Market activity indicated anticipation surrounding their upcoming Q4 FY25 earnings announcements. Before April 28, Indraprastha Gas Ltd. had reported its results, which were perceived positively by investors. Broader investor participation in oil marketing and gas distribution companies contributed to the index’s overall movement on that trading day.

3. Broader Market Sentiment and Global Cues:

The surge in the BSE Oil & Gas Index coincided with gains across major Indian equity benchmarks. On 28th April, both the BSE Sensex and NSE Nifty closed higher. This trading activity occurred in the context of foreign institutional investor inflows and reports suggesting a possible easing of trade tensions between key global economies. In Asia, most equity markets recorded positive trends, creating a supportive external environment. These broader factors may have contributed to increased participation in sectoral indices, including oil and gas.

4. Reliance Industries’ Index Weight and Influence:

Reliance Industries Ltd., with an approximate weight of 19.13% in the BSE Oil & Gas Index, holds significant influence over its movement. While not singularly dominant, changes in its stock price can materially affect index performance. The 5% gain in Reliance’s stock on 28th April translated into a measurable upward impact on the overall index value. The correlation between large-cap stock performance and index fluctuations is consistent with the index’s methodology, which assigns weights based on free-float market capitalization.

5. Sectoral Context and Long-Term Industry Trends:

In addition to immediate triggers, several long-term factors form the backdrop to developments in the oil and gas sector. Government policies, such as the Oilfields (Regulation and Development) Amendment Bill, 2024, and exploration initiatives under the Open Acreage Licensing Policy (OALP), aim to improve domestic energy production. 

Global oil price movements, including OPEC+ output decisions, continue to influence profitability and investor interest. The US EIA projects India to be a leading source of global oil demand growth in 2024 and 2025. Furthermore, Indian oil and gas firms have announced plans to increase their renewable energy capacity as part of their long-term sustainability strategies. These factors contribute to the evolving market environment in which sector indices operate.

Takeaway For Investors:

The BSE Oil & Gas Index remains a key benchmark for tracking the performance of India’s oil and gas sector. Its recent surge is primarily attributed to the stock performance of major constituents and broader market sentiment. However, a broader analysis reveals other underlying factors that affected the index over the years and may continue to do so-

1. Over the past year, the BSE Oil & Gas Index has delivered returns ranging from -7% to -11%, underperforming the BSE Sensex (+8% to +9%) and the NSE Nifty (+7% to +9%). This relative underperformance may be attributed to factors such as price volatility in global crude oil markets, sector-specific regulatory developments, and shifting investor preferences. 

However, the three-year return of the BSE Oil & Gas Index stands at 36.69% as of 29th April 2025, indicating long-term positive growth, albeit lower than the 40.89% to 42.43% delivered by the Sensex and Nifty, respectively, over the same period.

2. Several macroeconomic and geopolitical factors still influence the performance of the oil and gas sector. These include global crude oil prices, OPEC+ production decisions, government policies on exploration and refining, as well as the gradual shift toward renewable energy. Anticipation around the upcoming OPEC+ meeting in May 2025 also adds an element of uncertainty regarding near-term supply-side developments.
3. India’s projected role as a leading contributor to global oil demand growth in 2024 and 2025, according to the US Energy Information Administration, underscores the sector’s significance in the broader economic landscape. At the same time, Indian oil and gas companies have announced plans to expand their renewable energy capacity over the long term, reflecting evolving priorities in line with the global energy transition.

Bottomline:

Overall, while the sector has experienced phases of volatility, it continues to play a significant role in India’s economic framework. The BSE Oil & Gas Index serves as an indicator of this sector’s performance, shaped by both domestic and international developments. Thus, future movements in the index are likely to depend on a combination of financial results from key constituents, policy direction, and global energy market dynamics.

If you plan to add sectoral investment options from this sector, ensure you examine every aspect in detail before finalizing your investment decision. 

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 a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

As global trade realigns in the wake of enduring US-China tensions, an unlikely but economically significant trend has emerged: Chinese exporters are increasingly partnering with Indian firms to fulfill orders bound for the United States. This shift, driven by strategic circumvention of high tariffs and supply chain recalibration, is presenting India with a rare dual benefit—rising export volumes and deeper integration into global value chains.

The Geopolitical Trigger: Trump’s Tariffs Still Bite

The roots of this trade detour lie in the tariff war unleashed by the Trump administration in 2018. Over $300 billion worth of Chinese goods were slapped with import tariffs, ranging from 7.5% to 25%. 

While initially expected to be temporary, these tariffs remain in place through 2024, with the Biden administration opting for continuity over rollback. According to Statista, US tariffs on Chinese imports remained steady at 19.3% on average in 2023, compared to a global average of 7.3%, a significant distortion that continues to influence sourcing behavior. [Source: Statista – Average US tariff rate on Chinese goods (2018–2023)]

Why Indian Exporters Are in Demand

India’s established export infrastructure, combined with its membership in key trade pacts, makes it a convenient intermediary for Chinese manufacturers looking to retain US clients without directly shipping from China. 

According to the Federation of Indian Export Organisations (FIEO), there has been a notable uptick in inquiries from Chinese firms in sectors like:

Top Indian Export Sectors Benefiting from China Rerouting (FY24) 

Sector	Export Growth YoY	Key Products Involved
Ceramics	12%	Tiles, Sanitaryware
Auto Components	15%	Bearings, Sensors, Pumps
Textiles & Apparel	10%	Cotton garments, synthetic wear
Plastics & Packaging	9%	Film rolls, containers
Engineering Goods	13%	Fasteners, valves, pumps

Source: FIEO, Financial Express

These goods, once made entirely in China, are now either assembled, repackaged, or value-added in India to gain a ‘Made in India’ tag that allows smoother passage into the US market.

Key Data Point:

• India’s goods exports to the US rose to $78.5 billion in FY24, up from $76.2 billion the previous year. [Source: Ministry of Commerce, India]
  
• In parallel, China’s direct exports to the US fell by 13.1% in 2023, marking a multi-year low. [Source: China Customs]
  

Twin Benefits for India

This shift brings two major economic benefits for India:

1. Rising Export Revenues
   By acting as a trade bridge, Indian exporters can earn margins on warehousing, relabeling, partial manufacturing, or last-mile value addition.
   
2. Integration Into Global Supply Chains
   India’s role as a trusted trade partner deepens, especially amid US efforts to “friendshore” supply chains away from China.
   

“This trend could help Indian exporters build long-term contracts and relationships with global brands that are diversifying out of China,” said FIEO Director General Ajay Sahai to Economic Times.

Regulatory Gray Zones & Strategic Risks

While this dynamic may seem mutually beneficial, it is not without legal and strategic risks. For one, rules of origin as stipulated in trade agreements with the US are being scrutinized. If Indian exporters merely act as repackagers of Chinese goods without substantial transformation, they risk losing tariff exemptions or even facing anti-circumvention investigations.

Indeed, Chinese companies have been advised against setting up “ghost units” in India solely to export to the US. Indian authorities are also wary of becoming a backdoor channel for Chinese goods, especially amid rising geopolitical tensions between the two nations.

According to a report by AlCircle, some Indian industry bodies are urging caution, fearing scrutiny from US Customs and Border Protection as well as trade partners like the EU, which might question India’s role in facilitating such exports.

Case-in-Point: Ceramics & Auto Components

A Gujarat-based ceramics exporter told Financial Express that a Chinese supplier offered to supply raw ceramic tiles to India for minor finishing work, which would then be re-exported to the US. This finishing work, although limited, qualifies under Indian customs laws as a ‘substantial transformation’—a key requirement for claiming Indian origin.

Similarly, in the automotive components sector, some Chinese Tier-2 suppliers are utilizing India’s manufacturing capacity to send partially built units for final assembly before shipping them to Detroit or Texas. These practices skirt tariff boundaries but also boost India’s factory utilization and employment.

Implications for India’s Export Policy

This new role puts India at a crossroads: Does it embrace the export volume boost or tighten origin-based compliance to avoid future sanctions?

Experts suggest that India could use this window to build capacity and attract genuine foreign direct investment (FDI) in high-margin sectors, such as electronics, pharmaceuticals, and electric vehicles (EVs), rather than acting as a mere conduit for Chinese goods.

“India must ensure these partnerships are structured around true value-addition,” said trade economist Biswajit Dhar, noting the risk of reputational damage if India is perceived as enabling trade circumvention.

Looking Ahead: A Strategic Lever

At its core, the shift by Chinese exporters to use Indian firms underscores how global supply chains are no longer just about cost but also about compliance and perception. With reshoring and friendshoring reshaping trade maps, India stands to benefit—but only if it treads carefully.

As US-China tensions continue and global companies diversify their sourcing beyond China, India’s rise as a strategic intermediary could evolve into a more permanent role, if it manages the optics and rules with equal dexterity.

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 a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

In a major move to strengthen its renewable energy portfolio, NTPC Green Energy Ltd (NGEL) is planning to raise up to Rs 5,000 crore through the issuance of bonds in the financial year 2025-26. A subsidiary of India’s largest power producer, NTPC, NGEL is taking significant steps to fuel the country’s transition towards clean energy. The fundraising proposal will be considered and approved at a board meeting scheduled for April 29, 2025.

Source: Economic Times

Let’s dive deeper into the company’s expansion plans, key joint ventures, and how this bond issuance aligns with NTPC Green’s ambitious green energy targets.

What’s the Fundraising Plan?

NTPC Green Energy Ltd (NGEL) is looking to raise up to Rs 5,000 crore by issuing bonds or non-convertible debentures (NCDs) in one or more segments during FY26. According to the company’s regulatory filing, these bonds could be secured or unsecured, taxable or tax-free, and cumulative or non-cumulative.

The board meeting on April 29 will formally consider and approve this borrowing plan. The funds raised will play a crucial role in supporting NGEL’s growing renewable energy initiatives, as the company aims to rapidly scale up its green energy capacity over the next few years.

Key Financial Highlights of NTPC Green Energy Ltd.

Market Cap in Cr (as of 28.04.25)	CMP	High	PE	ROCE	ROE
₹ 87,760	₹ 104	₹ 155	255	7.60%	6.20

Source: Screener.in

For the quarter ending December 2024, the company reported a revenue of Rs 505 crore, marking a growth of approximately 13% compared to Rs 446 crore in the same quarter of the previous year. Profit also rose by around 18%, reaching Rs 66 crore for the December 2024 quarter, up from Rs 56 crore recorded in the corresponding quarter last year.

19 GW of Renewable Capacity by 2027

NTPC Green Energy has set an ambitious target—to achieve a renewable energy capacity of 19 gigawatts (GW) by 2026-27. This is part of NTPC’s broader vision to lead India’s transition to sustainable energy sources.

To meet this target, the company plans to invest nearly Rs 1 lakh crore in various green projects. This investment will not only help NTPC Green expand its renewable footprint but also contribute significantly to India’s goal of achieving net-zero emissions in the coming decades.

Source: Financial Express

Capacity Additions in FY25

NTPC had a strong performance in the financial year 2024-25. The company added 660 megawatts (MW) of thermal capacity and an impressive 3.3 GW of renewable energy capacity during the year.

For the current financial year (2025-26), NTPC has set even bigger goals—it plans to add 3 GW of coal-based capacity and 5 GW of renewable energy capacity. This shows the company’s balanced approach: while continuing to strengthen its conventional energy base, it is also aggressively pushing its green energy agenda.

Source: Financial Express

Key Partnerships Boosting Green Expansion

To fast-track its renewable ambitions, NTPC Green Energy has partnered with leading players in the energy space. Here’s a quick look at some major collaborations:

1. ONGC NTPC Green (ONGPL)

NTPC Green has formed a joint venture with ONGC Green Energy called ONGC NTPC Green (ONGPL). This venture is focused on setting up battery energy storage projects, offshore and onshore wind energy projects, and green chemical projects across India.

In a significant step, ONGPL recently completed the acquisition of a 100% equity stake in Ayana Renewable Power for Rs 6,248.50 crore. This acquisition gives NTPC Green a substantial boost in its renewable capacity and expands its presence across the solar and wind energy sectors.

2. Mahatma Phule Renewable Energy and Infrastructure Technology

NTPC Green has also joined hands with Mahatma Phule Renewable Energy and Infrastructure Technology to develop renewable energy parks. The plan is to build around 10 GW of renewable energy projects, mainly in Maharashtra but potentially in other states as well.

This strategic move aligns perfectly with NTPC Green’s vision of building large-scale renewable energy infrastructure and providing clean, reliable power across the country.

Source: Financial Express

Why the Focus on Bonds?

Raising funds through bonds or debentures allows NTPC Green to tap into the debt market efficiently without diluting ownership. Bonds are a popular choice for large infrastructure and energy companies because they offer flexibility in structuring the repayments and often come at lower interest rates compared to other forms of borrowing.

By issuing bonds in multiple tranches, NTPC Green can align its fundraising closely with the progress of its renewable projects, ensuring better financial management and cost optimization.

India’s Growing Green Energy Landscape

NTPC Green’s aggressive expansion comes at a time when India’s renewable energy sector is booming. The government’s push for clean energy, including plans to achieve 500 GW of non-fossil fuel capacity by 2030, has created a favorable environment for companies like NTPC Green.

With solar, wind, and emerging technologies like green hydrogen gaining traction, NTPC Green’s strategic investments and partnerships place it in a strong position to lead the energy transition.

What Lies Ahead?

The bond issuance is just one piece of NTPC Green’s expansion plans. Over the next few years, the company aims to:

• Commission multiple renewable projects across India.
  
• Strengthen its battery storage and green chemical portfolio.
  
• Explore offshore wind opportunities, a relatively untapped segment in India.
  
• Build large renewable parks through collaborations with state and central agencies.
  
• Maintain financial discipline to ensure profitable growth.
  

If NTPC Green succeeds in meeting its 19 GW target by 2026-27, it would establish itself as one of India’s largest green energy players and a significant contributor to the nation’s climate goals.

Conclusion

NTPC Green Energy Ltd’s plan to raise up to Rs 5,000 crore via bonds reflects its commitment to building a cleaner, greener future. With strong partnerships, a clear vision, and substantial investments in place, the company can make a significant impact in India’s renewable energy journey.

The upcoming board meeting on April 29, 2025, will mark a significant milestone in this journey, as the company seeks to secure the necessary funds to support its ambitious expansion plans. As the world moves towards sustainable energy, NTPC Green is gearing up to play a leading role in shaping India’s energy future.

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 a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.

FAQ

The Indian stock market opened on a hopeful note today, but the optimism didn’t last. If you’re closely tracking the market, it’s essential to understand not only what happened but also why it happened. Let’s break down the major global and domestic factors that are steering today’s market action.

A Volatile Start for Indian Markets

The day began with positive cues. The GIFT Nifty was trading higher around 24,227 early in the morning, suggesting a firm start for the Indian indices. True to the signals, the Nifty 50 and Sensex opened higher. Nifty quickly touched the day’s high of 24,365.45 during the initial trading hours.

However, the mood shifted sharply as geopolitical tensions flared between India and Pakistan following a recent terror attack. Investor sentiment took a direct hit, and bears gained control of Dalal Street. On Friday, April 25th, the market saw a significant slide, with the Nifty dropping to a day’s low of 23,847.85.

Despite the pressure, buying interest at lower levels, particularly in IT stocks, helped the indices recover some ground. At close, the Sensex fell 588.90 points or 0.74 percent to end at 79,212.53. Meanwhile, the Nifty slipped 207.35 points or 0.86 percent to settle at 24,039.35.

So, what else is moving the markets apart from domestic tensions? Let’s take a step-by-step look at the top global trends impacting today’s trade.

1. GIFT Nifty Points to Early Positivity

One of the first signals traders look at is the GIFT Nifty. Today, it was trading higher at around 24,227. This hinted at a promising start, and the Indian market responded accordingly. However, as seen, local geopolitical concerns quickly overshadowed this early momentum. Source: Money Control

2. Asian Equities Rise on Cautious Optimism

Asian markets began the week on a cautious yet optimistic note. Shares across Asia gained as investors awaited progress in U.S. trade negotiations with Asian economies and looked for signs of more stimulus measures from China.

A generally upbeat mood in Asia usually provides a supportive backdrop for Indian equities. Today, while Asian markets added some early strength, domestic factors ultimately outweighed global cheer later in the day.

3. Wall Street Posts Weekly Gains

The performance of U.S. markets is another crucial factor influencing Indian sentiment. On Friday, Wall Street closed higher. The Dow Jones Industrial Average rose 20.10 points, or 0.05%, to 40,113.50. The S&P 500 gained 40.44 points, or 0.74%, to 5,525.21, and the Nasdaq Composite surged 216.90 points, or 1.26%, to 17,382.94.

Corporate earnings and hopes of easing tensions between the U.S. and China fueled these gains. A strong Wall Street typically boosts global risk appetite, and Indian markets initially reflected that positivity before domestic tensions derailed sentiment.

4. U.S. Bond Yields Edge Higher

Bond yields often serve as a barometer for investor expectations around inflation and economic growth. Yields on both the U.S. 10-year Treasury and 2-year bonds saw marginal gains in early Monday trading.

Higher yields suggest that investors expect robust economic activity ahead. However, they can also raise concerns over tighter financial conditions, which sometimes puts pressure on equities.
Source: Money Control

5. Fund Flows: FIIs and DIIs in Action

One of the more supportive trends was the continued buying by Foreign Institutional Investors (FIIs). FIIs extended their buying streak for the eighth consecutive session on April 25, purchasing equities worth ₹2,952 crore.

Meanwhile, Domestic Institutional Investors (DIIs), after being net sellers for three consecutive sessions, turned net buyers on the same day, purchasing equities worth ₹3,539 crore.

Sustained FII inflows are a positive for the Indian market. The return of DII buying adds another layer of support, even as short-term sentiment remains fragile due to geopolitical concerns.

6. Dollar Index Strengthens

The U.S. dollar began the week on a steady note. Investors are closely watching upcoming economic data that could reveal the impact of the ongoing trade war on growth.

A stronger dollar often weighs on emerging market currencies and equities. However, today’s market reaction in India was driven more by domestic events than currency moves.

7. Asian Currencies Show Mixed Performance

In the early Monday trade, Asian currencies traded mixed. The Indonesian Rupiah, South Korean Won, Japanese Yen, and Chinese Renminbi were among the currencies that gained. On the losing side were the Thai Baht, Taiwan Dollar, China Renminbi, and Malaysian Ringgit.

A mixed currency performance reflects cautious sentiment in the region. For India, currency stability is critical; however, today’s equity movement was more a reflection of local geopolitical anxiety. Source: Yahoo! Finance

8. Crude Oil Inches Up

Oil prices inched higher today. However, broader concerns around the health of global trade and the possibility of OPEC+ increasing supply kept the gains limited.

Rising oil prices are typically a negative for India, given the country’s status as a major importer of crude oil. However, today’s modest gains did not appear to have a significant impact on market sentiment.

9. Gold Prices Fall

Gold prices declined further from last week’s record highs. Traders started unwinding positions amid signs that the recent rally may have been overextended.

Gold’s fall usually signals reduced demand for safe-haven assets, suggesting that global fear is subsiding. However, given the rising geopolitical tension between India and Pakistan, the local narrative didn’t align perfectly with global cues today.

Conclusion

Today’s market action is a clear reminder that while global cues set the broader tone, local developments often dictate short-term moves. Global markets provided a supportive backdrop — higher GIFT Nifty, gains in Asian shares, strong U.S. equity performance, steady bond yields, and continued FII inflows all pointed to a positive day.

However, the escalation of geopolitical tensions between India and Pakistan overshadowed global optimism and turned the tide on Dalal Street.

Going forward, while global trends will continue to influence sentiment, investors are likely to remain cautious until there is greater clarity on the geopolitical situation closer to home.

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 a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee the performance of the intermediary or provide any assurance of returns to investors.