Author: Eqwires

JSW Cement, the building materials arm of the JSW Group, made its stock market debut on August 14, 2025, with shares listing at ₹153.50 on the NSE—a 4.42% premium over the IPO price of ₹147. On the BSE, the stock opened at ₹153, marking a 4.08% gain. While the listing was in line with grey market expectations, the post-listing performance was subdued, with the stock slipping slightly below its opening price during intraday trade.

IPO Overview: Strong Demand, Moderate Listing

JSW Cement’s ₹3,600 crore IPO was a mix of:

• ₹1,600 crore fresh issue
• ₹2,000 crore offer for sale (OFS) by existing investors

The IPO was subscribed 7.77 times overall, with strong demand from:

• Qualified Institutional Buyers (QIBs): 15.8x
• Non-Institutional Investors (NIIs): 10.97x
• Retail Investors: 1.81x

The company raised ₹1,080 crore from anchor investors ahead of the listing, including marquee domestic and global institutions.

Business Profile: Green Cement Leader with Expansion Plans

Founded in 2009, JSW Cement is among India’s fastest-growing cement manufacturers. It operates seven plants across India with an installed grinding capacity of 20.6 million tonnes per annum. Its product portfolio includes:

• Portland Slag Cement (PSC)
• Ground Granulated Blast Furnace Slag (GGBS)
• Clinker and blended cements

JSW Cement holds an 84% market share in GGBS, positioning itself as a key player in India’s sustainable infrastructure push.

Use of IPO Proceeds

The company plans to deploy the fresh capital as follows:

• ₹800 crore for a new integrated cement unit in Nagaur, Rajasthan
• ₹520 crore for debt repayment
• Remaining for general corporate purposes

As of March 2024, JSW Cement’s total debt stood at ₹5,835.76 crore.

Valuation and Market Cap

• Post-issue market capitalization: ₹20,041 crore
• Valuation: ~36.7x EV/EBITDA (FY25), considered aggressively priced by analysts

Expert Views: Buy, Sell, or Hold?

Hold for Long-Term Gains

Narendra Solanki, Head of Research at Anand Rathi, recommends holding the stock: “JSW Cement’s synergies with the JSW Group, strategic plant locations, GGBS focus, and capacity expansion support long-term profitability.”

Caution on Valuation

While the company’s fundamentals are strong, analysts caution that the IPO was fully priced in, and short-term upside may be limited unless earnings growth accelerates.

Conclusion: What Should Investors Do?

JSW Cement’s listing reflects investor confidence in its green cement leadership and expansion strategy. However, given the premium valuation and muted post-listing performance, investors should consider the following:

New investors should monitor Q2 results and execution updates before making fresh allocations

Long-term investors may hold, especially if aligned with infrastructure and sustainability themes

Short-term traders may wait for technical confirmation or price stability before entering

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Indian equity markets rebounded sharply on August 13, 2025, with the BSE Sensex rising 304 points and the NSE Nifty closing above the 24,600 mark, driven by positive global cues and easing domestic inflation. The rally was broad-based, led by gains in auto, metal, and pharma stocks, as investors responded to steady U.S. inflation data and expectations of a rate cut by the Federal Reserve.

Market Snapshot

Index	Closing Level	Change	% Change
Sensex	80,539.91	+304.32 pts	+0.38%
Nifty 50	24,619.35	+131.95 pts	+0.54%
Nifty Midcap	—	+0.63%
Nifty Smallcap	—	+0.66%

During the session, the Sensex touched an intraday high of 80,683.74, while the Nifty peaked at 24,664.55.

Key Drivers of the Rally

1. U.S. Inflation Data

• The U.S. Consumer Price Index (CPI) held steady at 2.7% in July, slightly below expectations.
• This reinforced hopes of a Federal Reserve rate cut in September, boosting global investor sentiment.

2. India’s Retail Inflation

• India’s CPI fell to an eight-year low of 1.55% in July, well below the RBI’s comfort zone.
• Lower food prices and easing supply pressures contributed to the decline.
• Analysts expect this to support discretionary spending and improve corporate margins.

3. Global Market Momentum

• Asian indices like Japan’s Nikkei, South Korea’s Kospi, and Hong Kong’s Hang Seng closed higher.
• European markets traded in the green, and U.S. indices hit record highs on August 12.

Sectoral Performance

Sector	Trend
Auto	+1.18%
Metal	+1.26%
Pharma	+1.73%
Realty	+0.26%
PSU Banks	Mixed
Oil & Gas	Slight decline

All major sectoral indices ended in the green, with auto, metal, and pharma leading the gains.

Top Gainers and Losers

Gainers (Sensex & Nifty)

• Bharat Electronics: +2.30%
• Eternal (Zomato): +2.19%
• Mahindra & Mahindra: +1.65%
• Kotak Mahindra Bank: +1.56%
• Tata Motors: +1.44%
• Apollo Hospitals: +8.20%
• Hindalco: +5.09%
• Dr. Reddy’s Labs: +2.71%

Losers

• Adani Ports: -0.72%
• ITC: -0.52%
• Titan: -0.43%
• IndusInd Bank: -1.26%
• Tech Mahindra: -0.35%

Expert Commentary

Vinod Nair, Head of Research at Geojit Investments, noted:

“Indian equities experienced broad-based optimism as CPI hit an eight-year low, boosting hopes for a revival in discretionary spending. Globally, sentiment improved on the extension of China’s tariff deadline and easing oil prices.”

Vaibhav Vidwani, Research Analyst at Bonanza Group, added:

“The market’s ability to recover decisively from recent lows demonstrates underlying resilience supported by strong domestic institutional flows and improving macroeconomic indicators.”

Outlook: Will the Rally Sustain?

Technical analysts suggest that the Nifty’s next resistance is at 24,700, and a decisive move above this level could trigger a rally toward 25,200. Support is seen at 24,337. While global risks remain—especially around trade tensions and geopolitical developments—India’s growth-inflation dynamics continue to favor a stable outlook for FY26.

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Duvvuri Subbarao, who served as the Governor of the Reserve Bank of India during the 2008 global financial crisis, has issued a stark warning about the economic risks India faces from proposed U.S. tariffs and Chinese dumping. In a recent interview, Subbarao cautioned that these twin pressures could undermine India’s manufacturing competitiveness, slow GDP growth, and worsen the country’s jobless growth challenge.

The ₹7 Lakh Crore Threat: What’s Behind the Number?

Subbarao estimates that Donald Trump’s proposed 50% tariff on Indian exports could impact nearly 2% of India’s GDP, or approximately ₹7,00,00,00,00,000 (₹7 lakh crore). The sectors most at risk include:

• Textiles
• Footwear
• Gems and jewellery
• Other labour-intensive industries

He warns that such tariffs would erode profit margins, divert export orders, lead to job losses, and force downsizing across manufacturing units.

Chinese Dumping: A Second Blow

In addition to U.S. tariffs, Subbarao flagged the risk of Chinese industrial overcapacity. With China facing its own trade barriers from the U.S., Chinese exporters may turn to India to offload surplus goods. This could flood Indian markets with cheap imports, hurting domestic manufacturers and further weakening India’s push to integrate into global value chains under the China+1 strategy.

Economic Impact: GDP, Jobs, and Inequality

Subbarao estimates that the combined effect of tariffs and dumping could slow India’s GDP growth by 20 to 50 basis points, depending on how well the country manages the shock. He also highlighted:

• Regressive distributional effects: Lower-income workers in export-driven sectors would be hit hardest
• Strain on formal job market: Manufacturing jobs may shrink, worsening India’s jobless growth trend
• Investor sentiment: Remarks like Trump’s comparison of India to a “dead economy” could raise India’s risk premium and trigger portfolio reallocation

Policy Implications: What Should India Do?

Subbarao emphasized the need for structural reforms and targeted support to shield vulnerable sectors. He also noted that:

• Fiscal policy may need to adjust if tariff-hit sectors require short-term relief
• Monetary policy will remain data-dependent. If tariffs fuel inflation and weaken the rupee, interest rates may stay high. If growth slows sharply, rate cuts may be considered

Conclusion: A Wake-Up Call for India’s Trade Strategy

Subbarao’s warning is not just about numbers—it’s a call to action. With global liquidity tightening and geopolitical risks rising, India must:

• Diversify export markets
• Strengthen domestic manufacturing
• Accelerate reforms to maintain macroeconomic stability

The ₹7 lakh crore figure is a reminder of how vulnerable India’s economy can be to external shocks—and how critical it is to prepare proactively.

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Bharat Dynamics Ltd (BDL), the state-owned defence PSU, saw its shares jump 3.2% to ₹1,534 on August 13, 2025, after reporting a stellar Q1FY26 performance. The company’s Profit After Tax (PAT) surged 154% year-on-year to ₹18.35 crore, up from ₹7.21 crore in Q1FY25, driven by strong operational momentum and easing supply chain constraints.

Q1FY26 Highlights

Metric	Q1FY26	Q1FY25	YoY Change
PAT	₹18.35 crore	₹7.21 crore	+154%
Revenue from Operations	₹231.09 crore	₹187.77 crore	+23.07%
Total Income	₹334.79 crore	₹271.55 crore	+23.29%
Total Expenses	₹311.66 crore	₹260.31 crore	+19.72%

Despite rising costs, BDL delivered robust profit growth, reflecting improved execution and margin resilience.

What Are Brokerages Saying?

Nuvama: Buy | Target ₹2,250

• Projects 51% revenue CAGR and 66% EPS CAGR over FY25–28
• Operating margins expected to stay in the 23–23.5% range
• Assigns 45x P/E multiple on FY27E EPS of ₹50.1
• Notes easing import constraints and strong growth visibility

Motilal Oswal: Buy | Target ₹1,900

• Upgraded from Neutral to Buy
• Highlights BDL’s order book of ₹23,300 crore and prospect pipeline of ₹50,000 crore
• Forecasts EBITDA margin improvement from 23.8% (FY26) to 25.5% (FY28)
• Sees valuation at 39x FY27E EPS and 29x FY28E EPS

Should You Buy BDL Now?

Reasons to Consider Buying

• Strong Q1 performance and margin expansion
• Large order book and pipeline ensure revenue visibility
• Easing supply chain issues post-global disruptions
• Government push for defence indigenization and exports

Risks to Watch

• High valuation multiples (39x–45x forward P/E)
• Execution delays in defence contracts
• Dependency on geopolitical factors for imports and exports

Verdict

BDL’s Q1 results signal strong operational recovery and long-term growth potential. With solid fundamentals, a robust order book, and favorable brokerage outlooks, the stock presents a compelling case for long-term investors. However, given its premium valuation, short-term investors may prefer to wait for a better entry point or technical confirmation.

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U.S. President Donald Trump has officially confirmed that gold imports will not be subject to tariffs, ending a week-long wave of confusion triggered by a U.S. Customs and Border Protection (CBP) notice. The announcement, made via social media, comes after speculation that certain gold bars—specifically one-kilogram and 100-ounce weights—might be classified under new tariff rules, potentially disrupting global bullion trade.

Background: The Source of Confusion

On July 31, CBP issued a letter suggesting that gold bars of two standard weights—1 kilogram and 100 ounces (approximately 2.8 kilograms)—could be subject to duties under Trump’s broader tariff regime. These bars are commonly traded on the Commodity Exchange (Comex) and form the bulk of Switzerland’s gold exports to the U.S.

The letter sparked immediate concern across financial markets:

• Gold futures surged to a record high on August 8.
• Traders feared a reclassification of gold under tariff-eligible categories.
• The Swiss Association of Manufacturers and Traders in Precious Metals issued a formal objection, warning of disruptions to the international flow of physical gold.

Trump’s Clarification

On August 11, Trump posted a brief but definitive statement:

“Gold will not be Tariffed!”

This message was intended to override the CBP’s earlier ruling and reassure market participants. A White House official later confirmed that an executive order would be issued to clarify the administration’s position and correct any “misinformation” about gold tariffs.

Market Reaction

Following Trump’s statement:

• Gold prices dipped globally, reversing the spike seen earlier in the week.
• On Comex, December gold futures fell by 2.4%, settling near $3,402.70 per troy ounce.
• In India, gold prices also eased. In Delhi, 24K gold was priced at approximately ₹9,944 per gram, while 22K stood at ₹9,470 per gram.

The clarification brought relief to bullion traders, jewellers, and institutional investors who had been bracing for potential cost escalations.

Broader Trade Context

Trump’s tariff strategy has been a central theme of his administration’s trade policy. While gold has now been exempted, other commodities and goods from countries like China and Switzerland continue to face levies. Notably:

• Trump also announced a 90-day extension on tariffs targeting Chinese imports.
• The move follows recent trade negotiations in Stockholm and signals a temporary truce in the ongoing tariff war.

Implications for Investors and Traders

• Short-Term Relief: The exemption removes immediate pricing pressure on gold and restores stability to futures markets.
• Long-Term Uncertainty: With trade policies shifting rapidly, investors may remain cautious about future regulatory surprises.
• Safe-Haven Status Reinforced: Gold continues to be viewed as a hedge against geopolitical and economic volatility, especially in uncertain tariff environments.

Conclusion

Trump’s statement has calmed a volatile situation, reaffirming gold’s exemption from new tariffs and restoring confidence in the global bullion trade. However, the episode highlights the fragility of market sentiment in the face of policy ambiguity. For investors, the lesson is clear: stay informed, stay diversified, and be prepared for swift changes in trade dynamics.

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