Hello Investor!

The Nifty 50 has recorded its fifth straight monthly decline—a rare streak last seen 29 years ago! With concerns over high valuations weighing on investor sentiment, the markets continue to face selling pressure. Analysts suggest that caution is key, but could this be the perfect setup for a market rebound?

But before we dive into today’s updates

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Today’s Market Menu

• Focal Point: UltraTech Cement, RBI’s Liquidity Push & Indian Contract Drug Makers Seek Government Support

• Markets

• Everything else you should know today

• Psychology: How to break free from middle-class money habits

• Supercharge your Investing Skills

• Management Speaks: Gulshan Polyols, CIE Automotive India, Marksans Pharma

• Stock Screener to up your game

FOCAL POINT

UltraTech Shakes Up the Market: Wires & Cables Entry Sparks Debate

1. UltraTech Cement: UltraTech Cement's bold ₹18 billion venture into the wires and cables sector is set to shake up the industry. This strategic move aims to capitalize on a market experiencing a robust 13% CAGR, positioning UltraTech alongside established giants like Polycab and Havells. However, analysts express concerns over capital allocation and potential debt implications, especially amidst fierce competition and volatile copper prices. Investors should closely monitor how this diversification impacts UltraTech's financial health and the broader market landscape.

2. The Reserve Bank of India (RBI) : In a recent report, CLSA commended the Reserve Bank of India's substantial liquidity infusion in January 2025, highlighting its positive impact on the banking sector. This strategic move has been instrumental in stabilizing financial markets and supporting lenders during challenging times. The proactive approach by the RBI underscores its commitment to maintaining economic stability and fostering growth.

3. Indian Contract Drug Makers Seek Government Support : India's contract drug manufacturing sector is urging the government to eliminate regulatory obstacles and expedite approvals for essential raw material imports. This appeal comes as global pharmaceutical companies look to India to reduce dependence on China. With the potential to grow sevenfold to $22-25 billion by 2035, the sector emphasizes the need for streamlined processes to capitalize on emerging opportunities.

MARKETS

Today markets closed flat amid mixed sector performances. The BSE Sensex edged up by 10.31 points to 74,612.43, while the Nifty 50 dipped slightly by 2.50 points to 22,545.05. Investor caution prevailed due to the monthly expiry of derivatives contracts, leading to choppy trading sessions.

_{Closing figures as on 25.02.25 (3.30pm IST)}

🔎 In Focus

📈 Financials Surge: The Reserve Bank of India's relaxation of lending norms boosted financial stocks. Bandhan Bank soared 🔼 1%, Shriram Finance and AU Small Finance Bank each climbed approximately 🔼 5%, and Cholamandalam Investment and Finance advanced by 🔼 5%.

🚗 Automobiles Decline: The Nifty Auto index fell around 🔻 1.5%, with Mahindra & Mahindra dropping 🔻 2%. This downturn contributed to the overall market's flat performance.

📊 Mid and Small Caps Underperform: The mid-cap and small-cap indices declined by 🔻 0.7% and 🔻 1.1%, respectively, indicating a cautious sentiment among investors in these segments.

🏗️ Cement Sector Concerns: UltraTech Cement's unexpected venture into the wires and cables business led to a🔻 5% drop in its share price, raising investor concerns about capital allocation.

🔌 Wires and Cables Industry Impact: UltraTech's entry into the wires and cables market caused significant declines in existing players. Polycab India tumbled 🔻18%, Havells India fell 🔻6%, KEI Industries plunged 🔻 21%, and R R Kabel dropped 🔻 19%.

NIFTY 500: Tough Road Ahead?

Institutional Action

_{Provisional Figures (Rs. in Crores)}

FROM THE FRONTIER

Everything else you should know today 

🚀 Lubricant Leadership: Castrol India Limited has announced a strategic review of its global lubricants business, aiming to accelerate value delivery and explore growth opportunities. This initiative reflects Castrol's commitment to innovation and adapting to evolving market dynamics, ensuring sustained leadership in the lubricants industry.

🍿 Snack Shakeup: Prataap Snacks Limited has reported a significant ownership transition, with Authum Investment and Infrastructure Limited acquiring a 47.54% stake. This development marks a new chapter for the company, potentially influencing its strategic direction and market positioning in the competitive snacks industry.

🏡 Real Estate : Godrej Properties Limited has achieved remarkable success with its project, Godrej Evergreen Square, in Pune, selling over 1,398 homes worth more than INR 1,000 crores. This milestone underscores the company's strong market presence and the high demand for quality residential spaces in the region.

🤖 AI Payments Leap: Paytm has partnered with Perplexity to integrate AI-powered search capabilities into its app, enhancing user experience by providing real-time, reliable information. This collaboration signifies a significant advancement in making financial services more accessible and user-friendly for millions of Indians.

💰Order Wins

✅ Newgen Software: U.S. subsidiary has signed a three-year, $1.93 million agreement with a U.S.-based client, enhancing its North American presence.

✅ Jupiter Wagons: Tatravagonka Railwheel Factory, a subsidiary of Jupiter Wagons, has received a ₹255 crore contract from Braithwait & Co. for 9,140 wheelsets, bolstering its domestic manufacturing capabilities.

✅ Megatherm Induction has secured a $4.9 million export order from an African client, marking a significant milestone in its global expansion efforts.

ONEZERO-F ACADEMY

Unlock Financial Freedom: Break Free from These 10 Middle-Class Money Habits

Warren Buffett, the "Oracle of Omaha," has long emphasized that certain financial habits prevalent among the middle class can impede wealth accumulation. By identifying and altering these behaviors, individuals can pave the way toward financial prosperity.

1. Not Prioritizing Savings: Buffett advises, "Do not save what is left after spending, but spend what is left after saving." This underscores the necessity of making savings a primary financial goal.

▪️ Automate Savings: Set up automatic transfers to your savings account immediately upon receiving your paycheck.
▪️ Budget Adjustments: Review monthly expenses to identify and eliminate unnecessary spending, reallocating those funds to savings.

2. Accumulating Consumer Debt: Buffett cautions against unnecessary debt, particularly high-interest credit card balances.

▪️ Debt Repayment Strategy: Prioritize paying off debts with the highest interest rates first.
▪️ Cash Transactions: Opt for cash payments to avoid the temptation of overspending with credit.

3. Failing to Invest: Emphasizing the power of long-term investing, Buffett highlights the importance of starting early and being consistent.

▪️ Educate Yourself: Learn the basics of investing to make informed decisions.
▪️ Start Small: Consider beginning with low-cost index funds that track the S&P 500.

4. Neglecting Self-Education: Buffett believes that investing in personal development is paramount.

▪️ Continuous Learning: Engage in courses, workshops, or seminars to enhance your skill set.
▪️ Reading Habit: Dedicate time to read books and articles related to your field or financial literacy.

5. Following Investment Trends Blindly: Buffett warns against succumbing to market hype without proper understanding.

▪️ Conduct Thorough Research: Investigate any investment opportunity comprehensively before committing funds.
▪️ Understand Your Investments: Ensure you can explain the investment to someone else, indicating a solid grasp of the subject.

6. Taking On Too Many Financial Commitments: Overextending financially can lead to strain and hinder wealth-building.

▪️ Live Below Your Means: Adopt a lifestyle that doesn't stretch your financial resources thin.
▪️ Assess Obligations: Regularly review and, if necessary, reduce financial commitments that aren't essential.

7. Focusing Only On Quick Returns: Buffett's investment philosophy centers on long-term gains over immediate profits.

▪️ Patience is Key: Understand that building wealth is a gradual process.
▪️ Avoid Get-Rich-Quick Schemes: Be wary of opportunities that promise rapid returns with little effort.

8. Trading Too Frequently: Frequent trading can incur costs and doesn't align with a long-term investment strategy.

▪️ Adopt a Buy-and-Hold Approach: Invest in assets you believe will grow over time and hold onto them.
▪️ Monitor, Don't Micromanage: Keep an eye on your investments without reacting to every market fluctuation.

9. Ignoring Emergency Savings Without an emergency fund, unexpected expenses can derail financial stability.

▪️ Build an Emergency Fund: Aim to save 3-6 months' worth of living expenses.
▪️ Regular Contributions: Set aside a portion of your income each month specifically for emergencies.

10. Underestimating the Impact of Small Expenses Minor, habitual expenditures can accumulate and impact overall wealth.

▪️ Track Spending: Use budgeting apps or tools to monitor where your money goes.
▪️ Make Conscious Choices: Evaluate small purchases and consider their necessity before spending.

By recognizing and adjusting these habits, individuals can align their financial behaviors with principles that foster wealth accumulation and long-term prosperity.

SUPERCHARGE YOUR INVESTING SKILLS

How To Invest For Beginners: 3 Simple Rules.." - Warren Buffett

MANAGEMENT SPEAKS

Management Call Highlights

✅ Gulshan Polyols' expressed optimism about the company's future in the ethanol sector. The Indian government's decision to supply subsidized FCI rice at ₹22.50 per kg is expected to enhance profit margins and stabilize raw material costs. This strategic move positions Gulshan Polyols favorably in the evolving ethanol landscape.

✅ CIE Automotive India reported its Q4 and full-year CY2024 results, highlighting a robust performance. The company achieved a significant sales increase, with 68% of its revenue now originating from Indian operations, reflecting a strategic shift from previous years. This growth underscores CIE's commitment to strengthening its presence in the Indian automotive sector.

✅ Marksans Pharma's UK subsidiary, Relonchem Limited, has secured marketing authorization for a new combination analgesic: Ibuprofen and Paracetamol 200 mg/500 mg Film-coated Tablets. This approval expands Marksans' pain management portfolio, offering a potent dual-action solution for consumers seeking effective pain relief.

STOCK SCREENER TO UP YOUR GAME

Stocks Below Intrinsic Value

by Navendu

Current price < Graham Number AND
Sales growth >10% AND
Profit growth >10% AND
Return on equity > 10% AND
Debt to equity <1.1 AND 
Current price >20

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Mohit & the OneZero-F team

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