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We are in the middle of the third quarter earnings season where about 11 companies will announce their quarterly results on Tuesday. Key earnings to watch out include from HDFC AMC and Network18.So far, IT companies have announced their quarterly results, which are mostly in line with expectations. The quarter is likely to moderate for India Inc with banks expected to see another soft quarter.HDFC AMC Q3 expectationsHDFC AMC is likely to report a high double-digit growth in revenues and profitability during the third quarter. Kotak Equities estimates the profit to rise by 21% YoY (year-on-year), while revenues may also gain 21% YoY.The brokerage is building in a 3% QoQ increase in QAAUM in 3QFY25 for the domestic MF business, reflecting the decline in equity indices, offset by strong net inflows.Also Read: HDFC AMC Q3 Preview: Revenue may surge up to 36.4% YoY amid strong AUM growth The average Nifty-500 was down 2% QoQ (down 8% on period-end). Analysts expect stable yields as impact of AUM growth if offset by full impact of commission cuts.There could be a core 45% YoY PBT growth, driven by robust YoY revenue growth and 15% YoY expense growth. Other income to decline due to MTM. Focus to remain on stability of retail flows and yields.In the preceding second quarter, HDFC AMC saw its revenue grow 38% and profit expand by 32% from the same period a year ago. Its market share in the profitable active equity space grew to 12.9% from 12.4% a year back.Motilal Oswal said the equity AUM during the quarter will maintain growth momentum backed by improving fund performance. However, yields are likely to decline sequentially and scaling up of AUM to drive revenue growth.Weak market performance during the quarter will also hurt other income and is likely to decline sequentially. HDFC AMC shares have been under pressure in the recent past, falling as much as 16% in the last one month.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

What was being seen as the next big frontier for consumers may be turning out to be a dud. Samsung’s flagship mobiles in 2024 centred around offering fresh, new AI-based features across photo editing, text generation, and interactive search while Apple’s latest iPhones came with Apple Intelligence, a spread of GenAI features being introduced in a staggered manner till mid-2025. For others, such as Xiaomi and Vivo, AI-based features were there in most recent launches.Cutting the hype, only around 10% of the estimated 154 million smartphones shipped in 2024 in India are actually capable of running on-device generative AI, said Counterpoint Research. A poll conducted in November by Canalys revealed 31% of retailers do not plan to sell AI PCs in 2025 due to poor adoption. Even more so, only 4 out of 10 users in India are even aware that smartphones now are artificially intelligent, slightly higher than the global average, Counterpoint said.The general apathy towards AI hardware is even making some smartphone brands hold back on talking about AI in their products, afraid that consumers may consider them irrelevant, or even worse, a gimmick. The recent launches from smartphone brands have mostly focused around their core competencies. Nearly every brand beside Samsung, Oppo, and Apple have held back on making the technology the centerpiece.117213036“We have the whole AI stack. It is not that we are missing out on something but our core offering is so good that we don’t even need to talk about AI. Brands are using AI to mask what they don’t have,” a Vivo spokesperson said. The company recently launched its camera-centric flagship smartphone that also makes use of the neural processing unit in the processor and Google’s Gemini Mini LLM to deliver tasks such as transcription, magic eraser, and more.“No, we are not holding back. I think we need to figure out what consumers actually need in terms of AI. There are lots of things that are being proposed in AI, a lot of features are being given so what is a killer App in AI still needs to come out,” Vivo said.This is not the case with PC manufacturers, however, who have gone full steam ahead marketing their products around AI-based use cases. The industry even saw the entry of Qualcomm in the PC space in a significant manner, with its CoPilot+ PCs. There are now over a dozen notebooks powered by Qualcomm’s AI processors in the market that have exclusive on-device AI features like real-time live captions and translations, image generator, and more.“Despite the positive momentum, significant work must still be done to convince both channel partners and end customers of the benefits of AI-capable PCs,” said Ishan Dutt, principal analyst at Canalys.117213046It’s not just consumers. Even industry insiders are not convinced of AI hardware taking over the market yet.“We’ve seen AI in various implementations in the past; however, in 2024, AI gained a lot of attention. We’ve also seen device brands using it to grab the attention of customers. However, what’s noteworthy is how the pre-purchase interest and curiosity around AI features in smartphones could vary significantly with the post-purchase reality of the same features if the use cases aren’t strong enough,” said Anuj Sharma, chief marketing officer, Xiaomi India.Not everyone though. Smartphone brand Oppo remains bullish about AI leading to increasing sales. It was the fastest growing smartphone brand in Q3 2024 among the top five, according to IDC, which it said was driven primarily by its AI-centric phones.“2024 has been a landmark year for us on the AI-driven product innovation front… In fact, by year-end, OPPO’s Gen AI features will reach approximately 50 million users globally,” said Savio D’Souza, head of product communications, Oppo India.The goalpost has now shifted to 2025 and beyond. Market trackers said an inflection point will come once smartphones priced under $400 come equipped with handling AI workloads on-device. “Key players including Android brands, SoC vendors, LLM developers and the expanding AI software ecosystem, are working together to accelerate the integration of GenAI into smartphones,” Counterpoint said in a report. This is expected to happen by late 2025, IDC and Counterpoint Research said, adding that the proliferation will depend on chipset makers funneling down AI capabilities to lower-end chipsets to support on-device genAI.“A lot also depends on how these phones diffuse to lower price tiers, which they have not. The use cases around them have also not developed in a big way. AI-based imaging has just started to come up among the Chinese smartphone brands, but most brands are also taking a staggered approach to launching AI features,” said Tarun Pathak, research director, Counterpoint Research.The research firm estimates that by 2028, around 54% of total smartphone shipments will be AI-capable, with an installed base of over 1 billion globally. That is still a long time away.

NEW DELHI: The budget is likely to unveil several measures to support demand and prop up growth, recognising that the slowing economy needs help. The measures being considered include tax relief for the middle class, tariff measures to shield the industry from the adverse external environment, and initiatives to foster job creation and private investment, among others, said people familiar with the deliberations.A meeting in the Prime Minister’s Office last week discussed broad contours of the budget and more will be held to firm up details, they said.Budget 2025: Sitharaman likely to give India’s ‘aam aadmi’ what they want?The budget for FY26 will be presented on February 1.Buoyed by electoral wins in Maharashtra and Haryana, the Narendra Modi government is keen to deliver a strong message in the budget — of continued emphasis on reforms, ease of doing business and living. “Discussions have begun… There is a growing view in the government that this budget should send out a strong signal,” said one of the persons cited. 117214289India’s economic growth is projected to ease to a four-year low of 6.4% in FY25, triggering demand for measures to spur demand and investments.The tax measures discussed include relief for individuals under the new tax regime, simplification of corporate tax and an easier tax deducted at source (TDS) regime.Also Read: Can Budget 2025 address India's unemployment woes?There has been clamour, including from within the BJP, for further widening slabs under the new tax regime as urban consumption has begun to splutter, they said, adding that a final call will be taken over the next few days.Revving Up CapexCurrently, the highest 30% tax kicks in at Rs 15 lakh annual income for individuals. A lower tax burden can help revive slowing urban demand.Some follow-up measures are also likely to support job creation, building on the three employment-linked incentive schemes announced in the July budget. 117214292The Centre’s capital expenditure, which faltered in the current year due to elections, is expected to receive a sharper emphasis in the budget, to crowd in private investment. Gross fixed capital formation, a measure of investments, is expected to rise 6.4% in FY25, easing from 9.2% the preceding year.Budget 2025: Will it be BJP’s strategies in big budget or AAP’s freebies for Delhi voters this February?A tariff rejig in the basic customs duty is likely to shield industry from the onslaught of cheaper imports as fears of dumping of Chinese goods intensify, ET had reported earlier. Measures to ease the foreign investment regime have also been discussed and could find a mention in the budget.

Mumbai: The stock market sell-off over the past seven trading sessions has caused many shares to drop 10-40%. However, more than a dozen stocks have remained resilient, gaining 5-29%, building on their over 25% returns in 2024. These include PTC Industries, Indo Tech Transformers, Goldiam International, Shakti Pumps, Lloyds Metals, Vijaya Diagnostic Centre, Pokarna, and Sundaram Clayton, among others. So far this year, the Nifty fell 2.36%, Nifty Midcap 150 declined 4.14%, Smallcap 250 dropped 9% and Microcap 250 shed 8.36%.Analysts attribute this resilience to recent re-ratings. For example, engineering firm PTC Industries has surged 28% this year after a 124% rally in 2024. "With a high moat, entry barriers, sharp earnings growth, and superior returns on capital employed, PTC is likely to trade at a significant premium in the coming years," says Dhirendra Tiwari of Antique Stock Broking. The company is investing ₹800 crore to establish a strategic materials manufacturing complex, casting plant, and rolling mill.Goldiam International has gained 21% in the past seven sessions after delivering 126% returns in 2024. With strong leadership, a robust order book, solid financials, and a shareholder-friendly approach, Goldiam is well-positioned to navigate challenges and seize future opportunities, says Rahul Dani of Monarch Networth Capital.Similarly, Vijaya Diagnostic has risen 14% this year following a 56% gain in 2024. According to Anshul Agrawal of Emkay, the company has a solid franchise, a unique business model, and a sound strategy for mitigating competition without compromising growth, though valuations remain high.ET has compiled 15 stocks with market capitalisation of more than ₹3000 crore which have risen at least 5% in 2025 after giving 25% returns in 2024.117218209

Incoming senior Trump administration officials have begun questioning career civil servants who work on the White House National Security Council about who they voted for in the 2024 election, their political contributions and whether they have made social media posts that could be considered incriminating by President-elect Donald Trump's team, according to a U.S. official familiar with the matter. At least some of these nonpolitical employees have begun packing up their belongings since being asked about their loyalty to Trump - after they had earlier been given indications that they would be asked to stay on at the NSC in the new administration, the official said, speaking on the condition of anonymity to discuss sensitive personnel matters. Trump's pick for national security adviser, Florida Rep. Mike Waltz, in recent days publicly signaled his intention to get rid of all nonpolitical appointees and career intelligence officials serving on the NSC by Inauguration Day to ensure the council is staffed with those who support Trump's agenda. A wholesale removal of foreign policy and national security experts from the NSC on Day 1 of the new administration could deprive Trump's team of considerable expertise and institutional knowledge at a time when the U.S. is grappling with difficult policy challenges in Ukraine, the Mideast and beyond. Such questioning could also make new policy experts brought in to the NSC less likely to speak up about policy differences and concerns. White House national security adviser Jake Sullivan is making a robust case for the incoming Trump administration to hold over career government employees assigned to the NSC at least through the early going of the new administration. "Given everything going on in the world, making sure you have in place a team that is up to speed, and, you know, ready to continue serving at 12:01, 12:02, 12:03 p.m. on the 20th is really important," Sullivan said on Friday. The NSC staff members being questioned about their loyalty are largely subject matter experts who have been loaned to the White House by federal agencies - the State Department, FBI and CIA, for example - for temporary duty that typically lasts one to two years. If removed from the NSC, they would be returned to their home agencies. Vetting of the civil servants began in the last week, the official said. Some of them have been questioned about their politics by Trump appointees who will serve as directors on the NSC and who had weeks earlier asked them to stick around. There are dozens of civil servants at the directorate level at the NSC who had anticipated remaining at the White House in the new administration. A second U.S. official told the AP that he was informed weeks ago by incoming Trump administration officials that they planned on raising questions with career appointees that work at the White House, including those at the NSC, about their political leanings. The official, who was not authorized to comment publicly, however, had not yet been formally vetted. Waltz told Breitbart News last week that "everybody is going to resign at 12:01 on January 20." He added that he wanted the NSC to be staffed by personnel who are "100 percent aligned with the president's agenda." "We're working through our process to get everybody their clearances and through the transition process now," Waltz said. "Our folks know who we want out in the agencies, we're putting those requests in, and in terms of the detailees they're all going to go back." A Trump transition official, speaking on condition of anonymity to discuss personnel matters, said the incoming administration felt it was "entirely appropriate" to seek officials who share the incoming president's vision and would be focused on common goals. The NSC was launched as an arm of the White House during the Truman administration, tasked with advising and assisting the president on national security and foreign policy and coordinating among various government agencies. It is common for experts detailed to the NSC to carry over from one administration to the next, even when the White House changes parties. Sullivan said he had not spoken to Waltz about the staffing matter, and said it was "up to the next national security adviser to decide how they want to play things. All I can say is how we did it and what I thought worked." "When they are selected to come over, they're not selected based on their political affiliation or their policy opinions, they're selected based on their experience and capacity and so we have a real diversity of people in terms of their views, their politics, their backgrounds," Sullivan said of those assigned to the NSC. "The common element of all of it is we get the best of the best here" from agencies including the State Department, the intelligence community, the Pentagon and the Homeland Security and Treasury departments. Sullivan noted when Biden took office in 2021, he inherited most of his NSC staff from the outgoing Trump administration. "Those folks were awesome," Sullivan said. "They were really good." Trump, during his first term, was scarred when two career military officers detailed to the NSC became whistleblowers, raising their concerns about Trump's 2019 call to Ukrainian President Volodymyr Zelenskyy in which the president sought an investigation of Biden and his son Hunter. That episode led to Trump's first impeachment. Alexander Vindman was listening to the call in his role as an NSC official when he became alarmed at what he heard. He approached his twin brother, Eugene, who at the time was serving as an ethics lawyer at the NSC. Both Vindmans reported their concerns to superiors. Alexander Vindman said in a statement Friday that the Trump team's approach to staffing the NSC "will have a chilling effect on senior policy staff across the government." He added, "Talented professionals, wary of being dismissed for principled stances or offering objective advice, will either self-censor or forgo service altogether." The two men were heralded by Democrats as patriots for speaking out and derided by Trump as insubordinate. Eugene Vindman in November was elected as a Democrat to represent Virginia's 7th Congressional District.