TLDR
📈 Market Recap: May 28, 2025
On Wednesday, May 28, 2025, Indian equity markets slipped for the first time this week, weighed down by profit booking and weak cues. The BSE Sensex declined by 239.31 points to close at 81,312.32, while the NSE Nifty 50 dropped 73.75 points to settle at 24,752.45. The major drag came from the FMCG sector, with the Nifty FMCG index falling 1.5%, primarily due to heavy selling in ITC following a large block deal. Investor sentiment remained cautious amid rising U.S. Treasury yields and renewed trade tensions between the U.S. and the EU, which overshadowed broadly positive signals from Asian markets. Meanwhile, sector rotation was evident—PSU banks gained 0.97% and media stocks rose 1.04%, as investors shifted their focus. Mid-cap indices remained flat, while small-cap stocks managed modest gains, supported by steady domestic liquidity.
Today’s Top Stories:
LIC profits soar 38 % – India’s insurer posts record ₹19k cr Q4 and pays ₹12 dividend. $LICI.NSE ( ▲ 1.04% )
Bata trips on weak demand – Footwear major’s profit down 28 %, margins shrink for Q4. $BATAINDIA.NSE ( ▲ 0.05% )
BAT exits ITC stake – $1.5 bn stake sale knocks ITC 5 %, ends BAT veto. $ITC.NSE ( ▼ 0.57% )
CMPDI heads for markets – Coal India to list consultancy arm, selling 10 % via OFS. $COALINDIA.NSE ( ▼ 0.29% )
Debt desks run hot – Corporates line up ₹27k cr in short bonds on cheaper funding.
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TOP STORIES
1. LIC Books Record ₹19,039 crore Q4 Profit; Declares ₹12 Dividend
DALL-E
Earnings Growth: Net profit rose 38 % YoY to ₹19,039 crore, taking FY 25 profit to ₹48,151 crore.
Business Drivers: Higher share of non-participating policies lifted margins; solvency ratio improved to 2.15× (regulatory minimum 1.5×).
Market Impact: LIC shares rallied 4–9 % intraday to ₹948 before paring gains on late selling.
2. Bata India’s Q4 Profit Slips 28 % on Weak Footfall
DALL-E
Financials: PAT fell to ₹46 crore (-28 % YoY); revenue slid 1 % to ₹788 crore, missing Street estimates.
Strategic Shift: Management plans a volume-led strategy and simplified pricing; the board proposed a ₹9/share dividend.
Investor Response: Stock closed about 1.5 % lower amid broader consumption-sector caution.
3. BAT Off-loads ₹12,927 crore of ITC Shares, Ceding Veto Power
DALL-E
Deal Details: British American Tobacco plc (BAT) sold 31.3 crore shares (2.5 %) at an average of ₹413, raising roughly $1.5 billion.
Implications: Stake drops to 22.9 %; BAT will fund its own buyback, while ITC gains more governance flexibility.
Stock Reaction: ITC fell ≈5 % as turnover on the deal topped ₹16,000 crore, dragging the FMCG index.
4. Coal India Arm CMPDI Files for IPO; 10 % Stake on Offer
DALL-E
Offer Structure: Draft red-herring prospectus proposes an offer-for-sale of 7.14 crore shares (10 % of equity); no fresh issue.
Financial Snapshot: FY 25 revenue hit ₹2,102 crore with profit of ₹666 crore; CMPDI is Coal India’s consultancy and exploration arm.
Strategic Angle: Listing expected to unlock PSU mining value and fund CIL’s push into lithium and other critical minerals.
5. Corporates Rush to Short-Term Bonds as Yields Slide
DALL-E
Issuance Wave: Eight issuers announced plans to sell about ₹27,000 crore of < 5-year paper this week after RBI’s liquidity injection.
Rate View: Traders price in another 50 bps of cuts by March 2026, flattening the front end of the curve.
Who’s Borrowing: NBFCs lead the pack, with blue-chip industrials lining up to refinance costlier bank loans.
GYAANI HOT TAKES
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