Day: July 23, 2025

Indian equity markets witnessed a strong rebound on Friday, July 19, as the Sensex surged nearly 540 points, mirroring a positive rally across Asian markets. Investor sentiment was lifted by signs of global economic resilience and optimism around earnings season.

Market Summary – July 19

• Sensex: The benchmark BSE Sensex climbed 539.50 points to settle at 82,844.63, recovering from a two-day losing streak.
• Nifty 50: The NSE Nifty also gained 183.45 points, closing at 25,308.25, comfortably above the key 25,000 mark.

The rally was largely driven by strong buying interest in banking, auto, and energy stocks, supported by favorable cues from global markets and easing concerns over U.S. interest rate hikes.

Key Factors Behind the Rally

1. Positive Global Cues:
Major Asian indices, including Nikkei and Hang Seng, posted significant gains amid renewed investor confidence in the global economic outlook. This rally filtered into Indian markets, fueling risk-on sentiment.

2. Banking and Financials Lead the Charge:
Heavyweights like HDFC Bank, ICICI Bank, and SBI saw notable buying. The Nifty Bank index surged nearly 2%, contributing significantly to the benchmark gains.

3. Quarterly Earnings Momentum:
Expectations of strong Q1 results from major companies provided a boost. Robust early results from IT and financial companies have kept investor sentiment buoyant.

4. FII Activity and Liquidity:
Foreign Institutional Investors (FIIs) turned net buyers in recent sessions, aiding the rally. Improved liquidity conditions added further strength to the indices.

5. Crude Oil and INR Stability:
Decline in global crude oil prices and relative stability in the rupee further supported investor confidence, especially in energy and import-heavy sectors.

Top Gainers & Sectors

• Gainers: ICICI Bank, HDFC Bank, Reliance Industries, Bajaj Finance, and Larsen & Toubro.
• Sectoral Winners: Nifty Bank, Auto, Financial Services, and FMCG all closed in the green.

Outlook Ahead

Market analysts believe that sustained global support, combined with domestic earnings momentum and policy clarity, may keep Indian equities on a firm footing. However, near-term volatility is not ruled out, given global macroeconomic data releases and central bank commentary.

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Conclusion

The sharp rebound in the Sensex and Nifty highlights growing investor optimism, aided by global market cues and solid domestic fundamentals. With earnings season underway and macro indicators stable, the coming sessions could remain positive, although cautious trading is expected around key events.

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Infosys, India’s second-largest IT services exporter, reported its financial results for the first quarter of FY25, delivering a steady performance despite ongoing macroeconomic headwinds in key global markets. The company’s focus on operational efficiency and client-centric digital services played a major role in stabilizing growth.

Key Highlights of Infosys Q1 FY25 Results

• Net Profit: Infosys posted a consolidated net profit of ₹6,334 crore, up 9% year-on-year, compared to ₹5,945 crore in Q1 FY24. On a sequential basis, net profit rose around 4.9%.
• Revenue: Revenue for the quarter stood at ₹38,948 crore, a growth of 4.2% year-on-year and 1.3% quarter-on-quarter. Growth was led by demand in digital transformation, cloud, and AI-driven services.
• EBIT & Margins: Earnings Before Interest and Tax (EBIT) rose 6% YoY to ₹7,991 crore. EBIT margin stood at 20.5%, showing a marginal improvement due to better cost controls and utilization optimization.
• Operating Performance: The company saw a steady flow of large deals. The total contract value (TCV) of large deals during the quarter came in at $2.5 billion, with 51% being net new business.
• Guidance Update: Reflecting its confidence in deal momentum, Infosys raised its revenue growth guidance for FY25 to 1%–3% in constant currency terms (up from 1%–2.5% earlier). The operating margin guidance was maintained at 20%–22%.

CEO Commentary

Infosys CEO Salil Parekh stated:

“We are seeing strong interest from clients in large cost and efficiency programs, and consolidation opportunities. We are proactively investing in generative AI and have over 100 client projects in progress. Our focus remains on growth, margin resilience, and building long-term value.”

Sectoral Demand & Outlook

While discretionary tech spending remains muted in sectors like retail and telecom, Infosys reported relatively stronger traction in manufacturing, energy, and BFSI. With large global clients looking to optimize IT spends, Infosys is well-positioned to capitalize on digital and cloud migration opportunities.

The ongoing investments in GenAI, cybersecurity, and automation are also helping Infosys future-proof its service portfolio and deepen client relationships.

Stock Market Reaction

Following the results, Infosys shares showed a mildly positive response on the stock exchanges. Analysts appreciated the raised revenue guidance and stable margins, although near-term caution persists due to slow decision-making in the US and European markets.

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Conclusion

Infosys has started FY25 on a solid note with resilient earnings and a healthy deal pipeline. While global uncertainties continue, the company’s balanced execution, investments in AI, and enhanced revenue visibility indicate that Infosys remains a strong player in the global IT services landscape.

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In a significant turnaround story, Paytm — one of India’s pioneering fintech giants — is rapidly transitioning from a high-growth, cash-burning startup to a sustainably profitable enterprise. This shift comes as a result of strong operational discipline, a sharper focus on core business, and improved monetization across services.

Revenue Momentum & Cost Rationalization

Paytm’s parent company, One97 Communications, has reported consistent improvements in its financial performance over the past few quarters. The company’s Q4 FY24 results revealed a 25% YoY increase in revenue from operations to ₹2,464 crore, driven by robust growth in financial services and the merchant payments business.

On the cost side, the company has streamlined operations, reduced cashbacks, and tightened marketing spends — leading to better operating margins. Paytm has been successful in reducing EBITDA losses, and the management has set clear goals for achieving EBITDA-level profitability before ESOP costs.

Focus on Core: Lending, Payments & Devices

Paytm’s profitability trajectory is being primarily powered by three pillars:

• Financial Services: Lending through Paytm Postpaid, Personal Loans, and Merchant Loans has scaled rapidly in partnership with NBFCs and banks. Disbursements crossed ₹15,000 crore in Q4 FY24.
• Payments: With a leading position in UPI and wallet-based payments, Paytm continues to grow its merchant base, encouraging digital adoption across India. The company now has over 7 crore merchants on its platform.
• Device Monetization: The adoption of Paytm Soundbox and card machines continues to rise. These IoT devices generate steady subscription-based revenue for the company.

Regulatory Overhang & Recovery Path

In early 2024, Paytm Payments Bank faced regulatory action from the Reserve Bank of India (RBI), which impacted certain services. However, the parent company quickly pivoted, scaled down exposure to affected segments, and partnered with third-party banks to ensure business continuity.

This nimbleness and strategic clarity have helped rebuild investor confidence. The stock, which had previously seen a major correction post-IPO, has recently regained momentum, with shares crossing ₹1,000 in July 2025 — the highest in over six months.

Outlook Ahead

Analysts now view Paytm as a more mature fintech company with a clear path to profitability. The company’s management has reiterated its commitment to sustained growth without compromising financial discipline.

With India’s digital ecosystem expanding rapidly, and fintech penetration deepening, Paytm is well-positioned to leverage its ecosystem — from payments and credit to commerce and devices — to drive long-term value.

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