moneycontrol India Stock of the Day (Q2 2025)
India bars Jane Street for market manipulation & cracks down on "finfluencers" + Hindustan Aeronautics, Trent, Tata Motors, Mahindra & Mahindra, Infosys, Cummins India, Craftsman Automation, etc.
Some interesting developments with the Indian stock market as Indian regulators are target US quantitative trading firm Jane Street for market manipulation:
📰 India bars Jane Street from its securities market, citing manipulation of stock indexes (Reuters) July 2025
India's SEBI passes interim order against Jane Street
Bars Jane Street from buying, selling in Indian markets; imposes fine
Alleges Jane Street manipulated stock indexes through large derivative positions
SEBI says manipulation by Jane Street hurt small investors
📰 Jane Street ban: Why has SEBI barred US-based trading firm, which made multi-thousand crore profit, from India’s securities markets? Explained (Times of India) July 2025
What’s the entire Jane Street controversy about? We take a look:
Jane Street's Alleged Market Manipulation: Modus Operandi
Jane Street: SEBI Findings In Numbers
SEBI's Regulatory Actions Against Jane Street
What Can Jane Street Do?
📰 Jane Street Had a Secret Strategy. India Says It’s Manipulation (Bloomberg) July 2025
This will change how large foreign and local funds view the India market opportunity. Global high-frequency trading and market-making firms from Ken Griffin’s Citadel Securities to Optiver have rushed to expand operations in India. Of the over 11,200 foreign portfolio investors in India, some 280 are engaged in algorithmic trading, according to SEBI data. I suppose many are reviewing trading strategies this Friday to ensure they clear regulatory inspection.
India is the world’s largest derivatives market by contracts traded. It will hold on to that position, but volumes will no doubt continue to drop as a result of these regulatory actions. This will accentuate the competition between the leading National Stock Exchange and the smaller BSE Ltd (NSE: BSE). Lower volumes will also impact brokerages and other intermediaries in the system.
India has also been cracking down on stock market social media influencers or so called “finfluencers:”
📰 Sebi cracks down on 'finfluencers' with new rules on stock education (BusinessStandard) January 2025
Key points in Sebi’s latest circular state:
Stock market educators cannot use live stock prices - only data with a three-month lag.
Registered market entities cannot associate with finfluencers in any way that involves monetary or non-monetary compensation.
Investor education is allowed, but educators must not give investment advice or make performance claims without Sebi’s approval.
Educators cannot use stock names, codes, or price data from the past three months in any form that could imply investment advice.
🎥 SEBI Cracks Down on Stock Tips Disguised as Lessons | Vantage with Palki Sharma | N18G (Firstpost) 5:16 Minutes (January 2025)
India's market regulator SEBI has cracked down on educational finfluencers offering stock tips disguised as lessons. SEBI has also warned registered entities like mutual funds and brokers against advertising on such platforms. How will these new rules affect finfluencers? Palki Sharma tells you.
Once again, it is my understanding that only Non-Resident Indians (NRIs) can use Interactive Brokers to trade Indian stocks (however, IB’s product and exchange list here does list Indian stocks…) and that foreign investors or funds are subject to Indian capital gains taxes (see: 📰 Macro matters: India’s tax glitch (Portfolio Adviser) November 2024 🗃️).
moneycontrol is India's leading financial and business portal who does excellent short (roughly 4 minute) Stock of the Day video pitches about Indian stock picks. Maybe because of tightening regulations, they stopped posting the segments on YouTube earlier in 2024 only to restart posting them in October 2024.
Indian stocks featured in their Q2 2025 Stock of the Day videos (from newest to oldest - they may not post all of them on YouTube) and covered in this post include:
[Note: On desktop browsers, an autogenerated table of contents will appear on the left side linked to each stock. I will add those links below after publishing/emailing this post…]
Aditya Birla Capital, Galaxy Surfactants, Galaxy Surfactants, Hindustan Aeronautics Limited (HAL), Acutaas Chemicals Ltd (Ami Organics), Trent Limited (Trent India), State Bank of India (SBI), SJS Enterprises, Emami Limited, Tata Motors Limited, Coforge Limited, V2 Retail Ltd, 360 One Wam, SAMHI Hotels, Sula Vineyards Limited, Mahindra & Mahindra Ltd, Infosys, Jyothy Labs Ltd, ITC Ltd, Cantabil Retail India, Cummins India, Royal Orchid Hotels Limited, Eicher Motors Limited, SBI Life Insurance, Craftsman Automation, Container Corporation of India Ltd, Pearl Global Industries Ltd, Heritage Foods, Syngene International & Zensar Technologies
DeepSeek also had these observations after uploading this post and asking it to analyse it:
Valuation:
High Price/Book for growth stocks (e.g., Trent Limited (Trent India) at 40.50, Hindustan Aeronautics Limited (HAL) at 9.43).
Low P/E for banks (State Bank of India (SBI) at 11.30) and autos (Tata Motors Limited at 11.53).
Dividends:
ITC Ltd offers the highest yield (3.77%), while growth stocks like Trent Limited (Trent India) pay minimal dividends.
Sector Trends:
Defense/Aerospace (Hindustan Aeronautics Limited (HAL) ): High valuations due to government contracts.
Retail (Trent Limited (Trent India), V2 Retail Ltd): Premium pricing from expansion and premiumization.
IT (Infosys, Zensar Technologies): Focus on turnaround strategies and macro resilience.
Regulatory Impact:
SEBI’s crackdown on finfluencers may affect retail investor sentiment (mentioned in broader context).
Technical Charts:
In addition, our South & Central Asia Stock Index now contains 345 Indian stocks (with more covered in our Monday posts) while a podcast interview with an Indian fund manager covered in our June 9th 2024 post noted there are only 700-800 investible stocks out of 4,000 Indian listings (and that list of investible Indian stocks can probably be further reduced to less than 100 stocks by a foreign fund manager with strict investing criteria…)…
And as always, this post is provided for informational purposes only (and to make your life easier by providing you with relevant information, links, and charts). It does not constitute investment advice and/or a recommendation…
Aditya Birla Capital
🇮🇳 Aditya Birla Capital (NSE: ABCAPITAL / BOM: 540691) - Holding company for the financial services businesses of the Aditya Birla Group. 🇼 🏷️
🎥 Stock of the Day: AB Capital Eyes Bigger Play Post-NBFC Merger? June 23, 2025
Aditya Birla Capital (ABC) is the holding company for the financial services business of Aditya Birla group and holds majority stake in various subsidiaries, which operate mainly in the commercial and retail finance, housing finance, asset management, and life and health insurance segments. The company has been strategically growing its lending and other businesses in a calibrated manner, mining the existing customer base with more up-sale opportunities. Merger synergies and branch expansion remain long-term drivers.
Price/Book (Current): 2.34
Trailing: 21.60 (no forward P/E) / Forward Annual Dividend Yield: N/A (Yahoo! Finance)
Galaxy Surfactants
🇮🇳 Galaxy Surfactants Ltd (NSE: GALAXYSURF / BOM: 540935) - MNC specialty chemical company. Manufacturer of surfactants & speciality chemicals for cleaning & personal care space. 200+ products exported to over 80+ countries. 🇼 🏷️
🎥 Galaxy Surfactants Slips on Lower Guidance, But US Demand Keeps Hope Alive June 10, 2025
Leading oleochemical company catering to personal and home care products. Gets more than 50 percent of sales from the MNC customers like P&G, Unilever and Colgate. Due to its end clients largely in the FMCG industry, it is seen as a defensive play in the chemicals sector. Key near term growth factors to watch is revival of domestic consumption due to supportive monetary and fiscal policies. Further, trade deal between Indian and the USA and availability of vessels remains a key monitorable.
Price/Book (Current): 3.91
Trailing P/E: 30.33 (no forward P/E) / Forward Annual Dividend Yield: 1.53% (Yahoo! Finance)
Hindustan Aeronautics Limited (HAL)
🇮🇳🏛️ Hindustan Aeronautics (NSE: HAL / BOM: 541154) - Public sector aerospace & defence company. Designing, manufacturing, overhauling & upgrading of Indian military aircraft. 🇼 🏷️
🎥 HAL: Expanding horizons in aerospace through innovation and advanced manufacturing| Stock of the Day June 9, 2025
Hindustan Aeronautics Ltd. (HAL) faced revenue challenges in Q4FY25 due to supply chain issues. The company is optimist about achieving double digit revenue growth next year. Company maintained EBITDA margins outlook on the back of orders in hand. Moreover, its anticipated contracts, improving visibility and order execution are expected to drive growth.
Price/Book (Current): 9.43
Trailing P/E: 39.43 (no forward P/E) / Forward Annual Dividend Yield: 0.82% (Yahoo! Finance)
