Indian share markets are trading on a positive note today.

Benchmark indices opened higher, driven by gains in banking and IT stocks after US President Donald Trump stated that India's Prime Minister Narendra Modi had offered to discuss tariff reductions, alleviating concerns over reciprocal duties.

At present, the BSE Sensex is trading higher by 138 points, while the NSE Nifty is trading around 23,051 levels, up 27 points.

Tata Consumer, HUL, and ITC are among the top gainers today.

Adani Enterprises and Adani Ports, on the other hand, are among the top losers today.

Broader markets are trading on a negative note. The BSE Mid Cap index fell 1.1% while the BSE Small Cap index declined 1.5%.

Sectoral indices are trading mixed with stocks in the FMCG sector and the banking sector witnessing most of the buying.

Pharma stocks and capital goods stocks, on the other hand, are trading in red.

Shares of SBI Cards, Solarium Green Energy, and Southern Infosys hit their 52-week high today.

The rupee is trading at Rs 86.85 against the US dollar.

In commodity markets, gold prices are trading at Rs 86,107 per 10 grams today.
 

Hero MotoCorp: When will the Stock Price Recover?

Did you know that Hero MotoCorp's market share is currently at the lowest it's been in a decade?

The company has seen a slew of departures from key executive ranks. Its newly launched models have met with limited enthusiasm in the marketplace and its EV business is yet to get off the ground meaningfully.

Hero remains ahead of its rivals though, in the two-wheeler market with sales of 5.4 million units in the calendar year 2024, up 2.5% over 2023, according to Vahan registration data collated by the Federation of Automobile Dealers Associations (FADA).

But challenges loom...

In recent times, the company notified the stock exchanges regarding the resignation of its CEO, Niranjan Gupta, and chief business officer, Ranjivjit Singh. Gupta who joined the firm in 2017 as its chief financial officer was elevated as the CEO only in May 2023.

Under his leadership, the company sharpened its focus on building a premium portfolio of motorcycles and entered the nascent EV market under the Vida brand.

Nevertheless, during a post-earnings investor call last week, the company's management expressed optimism about the growth prospects in the two-wheeler industry, with continued demand and recovery in both rural and urban India, new launches with ramp-up of 125+cc portfolio and strong investment in building "power brands."

The company's stock price has fallen around 20% in the past year.

Hero MotoCorp's EV segment has already gained traction in select cities and its commitment to continuous product innovation across key segments, strengthens its competitive edge.

Additionally, Hero's strong international presence, especially in emerging markets, adds a promising dimension to its growth potential. While short-term pressures persist, Hero MotoCorp's long-term prospects make it compelling for investors looking at future growth.
 

Upcoming Big Insurance IPOs...

According to a report, as many as 9 insurers including HDFC Ergo and SBI General have submitted their plans for an initial public offering (IPO) to the Insurance Regulatory and Development Authority of India (IRDAI), following the regulator's push for them to get listed.

These insurance companies have submitted structured IPO plans, approved by their boards, to the regulator.

The IRDAI had asked 10 large insurance companies, also including Bajaj Allianz Life, Bajaj Allianz General, Tata AIA, and Tata AIG General Insurance, to submit listing plans by the first week of February 2025.

While nine have now submitted their plans, one has asked for time until later this month to submit its proposal.

While getting listed is not mandatory for insurance companies like it is for NBFCs, the IRDAI has been encouraging insurers to become public as it would help improve corporate governance and raise funds.

The final decision on going public, though, will depend on each insurer's preparedness and the regulatory review process.

The insurance industry, opened to the private sector in 2000, has 26 life insurers, 27 general insurers (including two specialised insurers), eight standalone health insurers, and 12 reinsurers.

The industry has grown at a compound annual growth rate of about 10% over the last five years, generating Rs 11.23 lakh crore in total premium during FY24. As of March 31, 2024, total assets under management were Rs 67.57 lakh crore.

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