November 26, 2025

TOP NEWS

 

NCC:  The company has received a Letter of Acceptance from the Public Works (Health & Education) Department, Assam, for the expansion and modernization of Gauhati Medical College & Hospital. The contract value is Rs 2,062.71 crore. Positive

 

Indian Overseas Bank: Indian Overseas Bank has disclosed that it will receive an income tax refund of Rs 835.08 crore for Assessment Year 2022–23, following an order issued by the Income Tax Department to give effect to a ruling by the Commissioner of Income Tax (Appeals) - Positive

 

HCL Tech: HCLTech said it has entered into a strategic collaboration agreement with Amazon Web Services (AWS) aimed at accelerating transformation across the financial services industry through autonomous, AI-powered solutions. The collaboration brings together HCLTech’s deep domain expertise and AWS to deliver transformative outcomes for financial services organisations. HCLTech will launch a suite of pre-built, industry-compliant solutions aimed at modernising contact centers, enhancing digital engagement and streamlining core platforms across Banking, Wealth, and Insurance.

 

Zydus Lifesciences : The company has received final approval from the United States Food and Drug Administration (FDA) for verapamil hydrochloride extended-release tablets USP in 120 mg, 180 mg and 240 mg strengths, used for treatment of cardiac related issues. According to IQVIA MAT September 2025 data, verapamil hydrochloride extended-release tablets recorded annual sales of $24.5 million in the US market. With this approval, the group now has 428 final approvals and has filed 487 ANDAs since it began the filing process in FY2003-04, as of September 30, 2025.

 

United Breweries: The company has launched premium beer, Heineken Silver in New Delhi priced at Rs. 155/330ml bottle, Rs. 180/500ml can, Rs. 305/650ml bottle. It is in line with company’s strategy to expand domestic presence. Positive

 

NELCO: The company has received additional authorization from the Department of Telecommunications for 10 years to sell VSAT services of other UL-GMPCS licensees. The company’s Unified License and the validity of the additional UL VNO-GMPCS services authorization will be co-terminus with the validity of the Unified License (VNO – Virtual Network Operator). Positive

 

 

MACRO WRAP

 

·         The main theme overnight was risk-on. All three major US stock indices rose for the third consecutive trading day, fuelled by growing optimism that the Fed may deliver a rate cut in December. The Fed funds futures are pricing in 82% chance of a 25bp cut for the December meeting, up from as low as 29% chance seen last Wednesday. They are pricing in a total cut of 61bp by June-2026 and 94bp by December-2026

  • The DJIA, the S&P500, and the Nasdaq Composite Index rose 1.4%, 0.9%, and 0.7% respectively. The Eurostoxx 50 rose 0.8%. The Dollar Index fell 0.3% to 99.80. EUR-USD rose 50 pips to 1.1570. The US 2Y yield fell 4bp to 3.46% and the 10Y yield dropped 3bp to just under 4.00%. The German 10Y yield fell 2bp to 2.67%. The UK 10Y yield dropped 4bp to 4.49%. Brent crude oil prices fell 1.4% to USD62.48. Gold edged down 0.1% to USD4,131.
  • The latest US data releases were unimpressive. US private employers cut 13,500 jobs weekly in the four weeks to November 8, 2025, up from a 2,500 decline earlier, US producer prices rose 0.3% in September 2025, rebounding from a 0.1% drop in August and meeting market expectations. Food prices increased by 1.1%, driven by higher meat costs, while energy prices rose 3.5%, boosting goods inflation to 0.9%, the highest in over a year. Service prices remained unchanged. Annual producer price inflation held steady at 2.7%. Positive for Gold
  • US retail sales increased by 0.2% in September 2025, the smallest rise in four months and below the 0.4% forecast. Notable increases were at miscellaneous store retailers (2.9%) and gasoline stations (2%). Declines occurred in sporting goods (-2.5%), clothing (-0.7%), and electronics (-0.5%). Sales, excluding key sectors for GDP calculation, fell 0.1% versus a 0.6% rise in August. Positive for Gol
  • Germany’s 3Q2025 GDP printed at 0% q/q, confirming the preliminary figures, although it was up 0.3% y/y as weak exports pressured the figures for the quarter under review.

 

INVESTMENT CALL

 

Sector Update – IT Services - Demand condition stabilizing, execution up, attractive valuation

·         Tier-1 companies’ USD revenue growth remains muted, with growth varying from -2.7 to +5.8%. In contrast, tier-2 IT companies clocked robust sequential revenue growth.

·         Discretionary spending remains resilient in BFSI and Utilities but soft in telecom, retail, automotive, hi-tech, and energy.

·         Tier-1 IT companies margins remained largely positive (ex-Wipro), while deal wins were robust. We believe Q2FY26 marked a cyclical trough for demand, but bulk of the current deceleration cycle is now absorbed, with further material deterioration unlikely.

·         We expect demand to either stabilise or improve going foward. Capping of downside risk favours gradual recovery through FY27E. Risk-reward remains tilted to the upside. We continue to have greater comfort on tier-1 companies and tier-2 players, given steady performance and better valuations. We stay Positive on the sector in medium to long term.

 

 

OTHER NEWS

 

Surya Roshni : The company has secured a Rs. 105.18 crore order from a domestic engineering and infrastructure company for the supply of spiral pipes with external 3LPE coating in Gujarat. The order is to be executed by March 31, 2026, and does not fall under related-party transactions.

 

Vishal Mega Mart: As per media reports, promoter Kedaara Capital is looking to offload 13% stake in the company. This comes months after it sold about 20% of its holdings in the retailer via block deals in June 2025. Negative