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Pothole on Bajaj Fin’s Highway
Yash Tiwari
July 25, 2025
TLDR
📈 Market Recap: July 25, 2025
On Friday, July 25, 2025, Indian equity markets experienced a sharp decline, with the BSE Sensex plummeting 721 points (0.88%) to close at 81,463.09, and the NSE Nifty 50 tumbling 225 points (0.90%) to end at 24,837. Both indices marked their lowest levels in a month. The decline marked the indices’ fourth consecutive weekly loss, their longest losing streak of 2025. Broader markets underperformed, with the Nifty Midcap and Smallcap indices falling 1.5% and 1.9% for the week, respectively.
Key Drivers:
Global Optimism: Early sentiment got a lift from Wall Street’s record-setting week and signs that a US-EU tariff deal could be inked soon, even as Asian and European shares later turned cautious.
Earnings Boost: Upbeat Q1 prints from large-caps Infosys posted a 9 % YoY profit rise, and JSW Steel’s bottom line jumped 158 % helping steady long-only buying desks despite the broader sell-off.
Sectoral Performance: Auto, financial services, and metal indices slipped 1–2 %, leading declines, while pharma and PSU banks outperformed; realty stocks also underperformed.
Macro Watch: The rupee closed weaker at ₹86.52 per US dollar, down 12 paise, pressured by foreign outflows and firmer crude prices.
Today’s Top Stories:
Bajaj Finance Slides on Asset‑Quality Concerns: Bajaj Finance shares sank 6 percent as higher credit costs and MSME stress overshadowed record profit growth and prompted analyst downgrades.
Tata Chemicals Profit Climbs Despite Commodity Headwinds: Cost controls lifted Tata Chemicals’ quarterly profit despite weak soda‑ash pricing, highlighting margin resilience and reinforcing its status as a defensive industrial play.
RBI Chief Reiterates Vigilance on Inflation: RBI Governor Sanjay Malhotra signaled cautious policy ahead, warning that maintaining low inflation remains critical despite recent success in reducing price pressures.
REC Q1 Net Profit Jumps 29 Percent: REC posted 29 percent profit growth and a double‑digit revenue rise, driven by robust lending and improved asset quality, bolstering confidence in its FY26 outlook.
Adani Energy Solutions Swings to Profit in Q1: Adani Energy Solutions returned to profitability with a 28 percent revenue jump, aided by strong demand and margin gains from network‑expansion initiatives.
TOP STORIES
1. Bajaj Finance Slides on Asset‑Quality Concerns
DALL-E
Result snapshot: Q1 PAT grew 22 % YoY to ₹4,765 cr; NII up 22 %, but credit cost spiked to 2.02 %.
Investor take: UBS and JPMorgan cut ratings citing MSME stress and higher‑than‑guided provisioning.
Market impact: Shares fell about 6 % to ₹897.65, erasing nearly ₹38,000 cr in value and dragging the Nifty lower.
Bajaj Finance fell 6 percent after Q1 credit costs jumped to 2.02 percent and big brokers cut their ratings. What is your stance? |
2. Tata Chemicals Profit Climbs Despite Commodity Headwinds
DALL-E
Result snapshot: Q1 profit jumped sharply up to 68% as disciplined costs offset softer soda‑ash prices and slower volumes.
Margin resilience: Lower operating expenses underpinned healthy EBITDA, showcasing defensive strength in a tough market.
Investor angle: Viewed as a steady industrial play with potential margin leverage; shares held firm on the announcement.
Cost discipline drove a sharp profit jump, showcasing margin resilience. How do you view Tata Chemicals now? |
3. RBI Chief Reiterates Vigilance on Inflation
DALL-E
Policy outlook: Governor Sanjay Malhotra said the inflation battle is “won,” but the “war” for price stability continues.
Macro backdrop: Retail inflation remains near a multi-year low of 2.1% for June; global trade and Fed moves continue to be key variables.
Forward view: Markets expect cautious policy until clearer data emerge, limiting aggressive rate‑cut hopes
Governor Malhotra warned that the fight for price stability is not over even with inflation near 2.1 percent. Your policy outlook? |
4. REC Q1 Net Profit Jumps 29 %
DALL-E
Financials: Net profit rose to ₹4,465.7 cr on 12.6 % revenue growth to ₹14,737.5 cr; lending and asset quality improved.
Strategic focus: Management reaffirmed FY26 guidance, highlighting a robust project pipeline and prudent risk controls.
Market reaction: Stock stayed resilient versus broader financials, reflecting confidence in earnings momentum
REC’s Q1 profit hit ₹4,466 cr on stronger lending and better asset quality. How attractive is REC after these results? |
5. Adani Energy Solutions Swings to Profit in Q1
DALL-E
Financials: Consolidated PAT reached ₹539 cr, reversing a year‑ago loss; revenue surged 28 % to ₹7,026 cr.
Turnaround drivers: Strong energy demand, better margins, and network expansion plans underpinned the recovery.
Investor response: The upbeat print stood out in a weak utilities tape, supporting the share price.
A ₹539 cr profit turnaround on 28 percent revenue growth stood out in a weak utilities market. What’s your call on the stock? |
GYAANI HOT TAKES
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