Eqwires | Stock Market Advisory

The Securities and Exchange Board of India (Sebi) on Monday announced it will limit the expiries of all equity derivatives contracts to two days per week, either Tuesdays or Thursdays starting next month. 

This move is aimed at curbing hyper-activity on expiry days and reducing concentration risk in the market. 

In March, Sebi had proposed these changes following instances of frequent switches by exchanges on expiry days. 

The regulator believes that spacing out expiry days throughout the week will provide an opportunity for stock exchanges to offer product differentiation to market participants. 

As per Sebi’s circular issued on Monday, every exchange will be allowed to retain one weekly benchmark index options contract on their chosen day (either Tuesday or Thursday). However, exchanges must now seek prior approval from the regulator to modify the settlement day of their derivatives contracts. Sebi has asked stock exchanges to submit their proposals by June 15.

Apart from benchmark index options contracts, all other equity derivatives contracts will have a minimum tenor of one month, with expiries occurring in the last week of every month on the chosen day by the exchange. 

In response to Sebi’s proposal, the National Stock Exchange (NSE) had initially shelved its plan to move expiries to Mondays. However, the exchange has now sought approval from Sebi to shift expiries to Tuesdays. Currently, NSE contracts expire on Thursdays, while BSE contracts expire on Tuesdays. 

If Sebi grants approval to NSE to shift the expiry day to Tuesdays, BSE could find it challenging retaining market share. NSE’s revenue from transaction charges in Q4FY25 declined by 15 per cent quarter-on-quarter due to a reduction in volumes across the cash market and derivatives segment.

The exchange attributed this decline to regulatory changes that limited expiries to one benchmark per exchange. NSE’s management has stated that they do not expect any further loss of market share in the derivatives segment to BSE. 

Sebi’s circular will also hurt exchanges such as Metropolitan Stock Exchange of India (MSE) which was planning to roll out index derivatives with an expiry day unique to it. 

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Rakesh Gangwal is likely to divest about 3.4 per cent stake in IndiGo for ₹6,831 crore via block deals. This is part of his long-term plan to gradually reduce his stake in India’s largest airline, which he cofounded with Rahul Bhatia in August 2006. 

Sources said the floor price for the transaction had been set at ₹5,175 per share, nearly 4.6 per cent below the last closing price of ₹5,424. Currently, Gangwal and his related entities hold a 13.53 per cent stake in IndiGo. 

Investment banking firms Goldman Sachs (India) Securities, Morgan Stanley India Company and J P Morgan India are said to be the placement agents for the stake sale.

Over the past few years, Rakesh Gangwal and his related entities have gradually reduced their stake in IndiGo through multiple block deals. In August last year, Gangwal and his family trust sold a 5.83 per cent stake for about ₹10,500 crore. In March 2024, he offloaded another 6 per cent for ₹6,786 crore. In 2023, his wife Shobha Gangwal sold 3 per cent in August for ₹2,802 crore, and his family a 4 per cent stake for ₹2,900 crore in February.

Gangwal had resigned from IndiGo’s board on February 18, 2022, declaring he would gradually exit his holding over five years.

His decision came in the wake of a feud with copromoter Rahul Bhatia which lasted over two years until December 2021. The dispute became public in July 2019, when Gangwal wrote to the Securities and Exchange Board of India alleging corporate-governance lapses at the airline company — claims that the Bhatia group denied. Both promoters then took the matter to the London Court of International Arbitration, which gave its ruling in September 2021. 

Following this, IndiGo held an extraordinary general meeting on December 30, 2021, where shareholders approved the removal of a clause in the Articles of Association that granted the promoters the right of first refusal on share sales. This paved the way for Gangwal to begin divesting his stake.

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N Chandrasekaran, chairman of Tata Consumer Products, has said in the company’s annual report for FY25 that India remains one of the bright spots of economic growth amid a volatile global environment. 

He said India’s long-term growth is underpinned by strong demographic and economic fundamentals and the ongoing structural reforms. 

“India’s near-term macro outlook remains strong with stable growth expectation in 2025, falling inflation, and ongoing monetary easing. India’s direct exposure to the US is limited as its goods exports to the US are just over 2 per cent of its gross domestic product (GDP), one of the lowest among emerging markets,” he said in his address to the company’s shareholders.

He added that consumer trends like premiumisation, health & wellness, and convenience are gathering pace and quick commerce has seen exponential growth. But physical distribution remains extremely relevant at the same time. 

He also said in today’s uncertain and complex global environment, companies need to stay agile and dynamic.

“The need for strong, resilient, and visible supply chains has never been more critical. Emerging technologies such as Gen AI, robotics, and blockchain are not just buzzwords but essential tools. The green energy transition globally is making notable progress, and this transition is driving substantial investment in technology, electric mobility, renewable power, hydrogen and sustainable fuel,” he added.

Chandrasekaran said that companies must include these trends in their strategies and foster a culture of agility and continuous improvement. 

He added that 2025 started on a positive note with expectation of stable global growth, falling inflation and tailwinds from lower interest rates.

“However, this global macro narrative shifted with rising concerns around global growth and inflation as policy uncertainty rose sharply with dramatic shifts in trade policy. The latest global growth estimates have been revised down,” he added. 

While talking about the company, Chandrasekaran said, “At Tata Consumer, we have adopted an omnichannel strategy to tap into this large and growing opportunity. Gen Z and Millennials are expected to contribute to an increasing share of consumption; by some estimates, 76 per cent of the total consumption by 2030.”

He said that this presents an opportunity for cooking aids, packaged food, healthier & guilt-free snacking, and mini meal options. The company has added all of these to its portfolio in the last few years. 

“The innovation capability we have built along with our portfolio transformation initiatives over the past few years position us well to leverage these emerging trends,” Chandrasekaran said. 

On the fast-moving consumer goods (FMCG) space, he believes that the landscape is evolving rapidly and it is critical for brands to be present where the consumer is. 

“In India, we continued to make strong progress in our sales and distribution expansion, with a total reach of 4.4 million retail outlets. We completed the implementation of a next-gen distributor management system to further enhance sales force productivity. Modern trade and e-commerce/quickcommerce continue to be strong growth drivers, and we have started building pharmacy and hotel, restaurant, and catering (HoReCa) channels,” he added.

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Shares of JK Cement rallied over 10 per cent to hit a life high on Monday, after the company posted a 64 per cent jump in its net profit during the fourth quarter of the previous financial year (Q4FY25).  

The cement manufacturer, JK Cement’s stock rose as much as 10.5 per cent during the day to hit a life high of ₹632.8 per share. The stock pared gains to trade 5.5 per cent higher at ₹5,391 apiece, compared to a 0.48 per cent advance in Nifty50 as of 11:10 AM.  

Shares of the company have risen 17 per cent this year, compared to a 5.5 per cent advance in the benchmark Nifty50. Since its March lows of ₹4,218, the counter has recovered by over 28 per cent. JK Cement has a total market capitalisation of ₹41,599.90 crore, according to BSE data. 

JK Cement Q4FY25 results

Net profit of JK Cements rose 63.99 per cent to ₹360.36 crore in the quarter ended March 2025 as against ₹219.75 crore during the corresponding quarter ended March 2024. Revenue from operations increased 15.31 per cent to ₹3,581.18 crore in the March 2025 quarter compared to ₹3,105.77 crore in the same period last year. 

Meanwhile, the company’s operating margins or earnings before interest, taxes, depreciation and amortisation (Ebitda) rose 36.6 per cent to ₹765 crore in the March quarter. The Ebita margin of JK Cements expanded to 21.4 per cent from 18 per cent earlier. 

For the full year, net profit grew 8.89 per cent to ₹861.12 crore in the year ended March 2025, up from ₹790.83 crore in the previous year ended March 2024. Revenue from operations rose 2.80 per cent to ₹11,879.15 crore from ₹11,556.00 crore over the same period.

About JK Cement 

JK Cement is one of India’s leading manufacturers of grey cement and one of the leading white cement manufacturers in the World. The company has an installed grey cement capacity of 24.34 million tonnes per annum (mtpa) & white cement capacity of 3.05 mtpa.

JK Cement has a strong presence in markets such as Rajasthan, Uttar Pradesh, and Madhya Pradesh. Its turnover for FY24 was at ₹86.30 crore.

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JSW Steel shares rebounded sharply from the day’s lows to trade over 2 per cent higher on Monday, following a Supreme Court order to maintain the status quo in the Bhushan Steel case. 

The steel manufacturer’s stock rose as much as 2.71 per cent during the day to ₹1,035 per share, the biggest intraday gain since May 12 this year. The stock trimmed gains to trade 2 per cent higher at ₹1,030 apiece, compared to a 0.48 per cent advance in Nifty50 as of 1:30 PM.  

Shares of the company remained range-bound this month and have recovered nearly 10 per cent from its lows of ₹934, which it hit earlier this month. The counter has risen 14.5 per cent this year, compared to a 5.6 per cent advance in the benchmark Nifty50. JSW Steel has a total market capitalisation of ₹2.5 trillion.

JSW Steel’s resolution plan for Bhushan Power in limbo 

The Supreme Court on Monday directed that the status quo be maintained on Bhushan Power & Steel for now. The court issued the direction following a plea filed by JSW Steel, as it seeks a stay on liquidation proceedings for Bhushan Power. 

Earlier this month, India’s top court set aside a resolution plan submitted by JSW Steel for BSPL, holding it illegal and in violation of the Insolvency and Bankruptcy Code (IBC).  

A bench comprising Justices Bela M Trivedi and Satish Chandra Sharma criticised the conduct of all key stakeholders in the resolution process, the resolution professional, the Committee of Creditors (CoC) and the National Company Law Tribunal (NCLT), for enabling what it termed a “flagrant violation” of the IBC, and ordered the liquidation of BSPL under the IBC. The bench said the CoC was found to have approved JSW’s resolution plan without proper application of its commercial wisdom.

JSW Steel had won the bid to acquire Bhushan Power & Steel under the IBC for a little less than ₹20,000 crore. The tribunal had initiated the corporate insolvency resolution process (CIRP) against BPSL on July 26, 2017, admitting the plea of its lead lender, Punjab National Bank (PNB).

‘Adverse’ impact on topline 

The top court’s ruling against the steel manufacturer’s resolution plan for BPSL takeover is likely to have an adverse bearing on the financials, which may witness a 13 per cent drop in revenues, according to ratings firm CreditSights. JSW Steel may also lose its competitiveness along India’s mineral-rich east coast, where BPSL’s steel plant is located, the FitchSolutions company said. 

CreditSights said if JSW Steel fails in its attempts to save the BPSL asset, the company will have to surrender BPSL back to the NCLT, resulting in a deconsolidation of BPSL’s financials. 

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