Markets

Lemon Tree's occupancy rate declined by about 350 basis points y-o-y to 72.80% in the December quarter.
Lemon Tree's occupancy rate declined by about 350 basis points y-o-y to 72.80% in the December quarter.

This isn't the right time to check into the Lemon Tree stock

  • Lemon Tree's Q3 results aren't very inspiring despite a 34% rise in profit and 8% increase in revenue y-o-y
  • After touching a high of about 85 in early August, the Lemon Tree share price is now back near its listing price

With retail prices likely to pause ahead of elections, auto fuel marketing margins could normalize down from their all-time highs. (Reuters)
With retail prices likely to pause ahead of elections, auto fuel marketing margins could normalize down from their all-time highs. (Reuters)

Will strong growth in consumption of petroleum products sustain?

  • India’s consumption of petroleum products increased by 6.4% year-on-year in January, shows data
  • Declining Singapore GRM, however, doesn't augur well for Indian Oil, HPCL and BPCL

ad loans, as a percentage of total advances on a net basis, have come down sequentially for 30 of the 39 listed banks. (Bloomberg)
ad loans, as a percentage of total advances on a net basis, have come down sequentially for 30 of the 39 listed banks. (Bloomberg)

Bank balance sheets are on the mend, but full recovery is still some time away

  • Banks brought down NPAs by writing off dud loans and not just because borrowers have begun paying back
  • Resolution under Insolvency and Bankruptcy Code needs to be speeded up for investors to really like bank stocks

For Indian pharma companies, chances of a rebound in US revenues in FY20 are quite high. (iStock)
For Indian pharma companies, chances of a rebound in US revenues in FY20 are quite high. (iStock)

Unexciting Q3 results of pharma companies give cues about the US market

  • Indian pharma companies are seeing reduced pricing pressure in the US generic drugs business
  • Helped by new product launches, US revenues of large pharma companies are expected to recover in FY20

FILE PHOTO: A street sign, Wall Street, is seen outside the New York Stock Exchange in New York City. (Reuters)
FILE PHOTO: A street sign, Wall Street, is seen outside the New York Stock Exchange in New York City. (Reuters)

US stocks trades lower after Fed minutes

  • The minutes showed that many participants were not yet clear what adjustments to rates might be necessary later this year
  • The S&P 500 posted 37 new 52-week highs and no new lows; the Nasdaq Composite recorded 91 new highs and 13 new lows

 (Reuters)
(Reuters)

US stocks mixed; Treasuries, dollar decline

  • The S&P 500 Index fell 0.1%
  •  The MSCI All-Country World Index increased 0.5% to the highest in 19 weeks

Palladium smashes $1,500 as shortages ignite record-breaking rally

  • Spot palladium surged as much as 1.7% to $1,505.46 an ounce, and traded at $1,501.28 in London, with prices set for a seventh straight monthly gain
  • In other precious metals, gold rallied to a 10-month high, while silver and platinum both climbed

 (Bloomberg)
(Bloomberg)

Copper ticks higher for sixth session on trade optimism

  • Three-month copper on the LME climbed as much as 0.5% to $6,350.50 a tonne, the highest since 3 Dec, and stood at $6,346 a tonne
  •  The global lead market narrowed its annual deficit to 98,000 tonnes in 2018 compared to a shortfall of 148,000 in the previous year

 (Reuters)
(Reuters)

RCom shares drop 10% after Supreme Court holds Anil Ambani guilty of contempt

  • Ericsson India Pvt. Ltd had moved the Supreme Court seeking initiation of contempt proceedings against RCom and its chairman Anil Ambani
  • Reliance Capital lost 10.26% intra-day, Reliance Infrastructure 8.76%, Reliance Naval & Engineering 8.57% and Reliance Power lost 5.53%

 (iStock)
(iStock)

Gold prices hold at 10-month highs; markets await Fed minutes

  • Spot gold was marginally lower at $1,339.61 per ounce
  • Palladium rose 0.3% to $1,484.00 per ounce

So far this year, the rupee is down about 2% against the US dollar
So far this year, the rupee is down about 2% against the US dollar

Rupee edges higher against US dollar

  • Most other Asian currencies were higher against the US dollar
  • The rupee today opened at 71.27 a dollar

Weak bond auctions flash warning on India's record debt sales

  • The government on February 1 said it plans to borrow almost $100 billion for the year starting April 1
  • RBI will sell up to 2.26 trillion rupees of bonds in the January-March period

The Sensex today snapped a 9-day losing run buy rising over 400 points.
The Sensex today snapped a 9-day losing run buy rising over 400 points.

Sensex snaps 9-day losing run, rebounds over 400 points

  • Global markets have rallied on hopes of US-China trade deal
  • Nifty settled at 10,735, up 1.25% 

If risks such as government bans resurface, United Breweries investors are likely to end with a bad hangover. (Pradeep Gaur/Mint)
If risks such as government bans resurface, United Breweries investors are likely to end with a bad hangover. (Pradeep Gaur/Mint)

Rising volumes, revenue add zing to United Breweries' Q3 performance

  • The flip side for investors is United Breweries' performance is already factored in the share price, with little margin for error
  • Downing large doses of United Breweries shares, thus, may not be comforting to investors’ portfolios

Open interest of NSE’s near-month Nifty futures contract has fallen by about 30%. (Abhijit Bhatlekar/Mint)
Open interest of NSE’s near-month Nifty futures contract has fallen by about 30%. (Abhijit Bhatlekar/Mint)

Investors still look wary of NSE-SGX connect in GIFT City

  • Since the NSE-SGX dispute began over a year ago, outstanding positions in SGX’s Nifty futures contract have more than halved
  • Reports of NSE and SGX signing a new sort of collaboration involving GIFT City haven't brought much comfort either

The price that the Indian economy will pay to keep a lid on inflation should not be so high that it defeats the purpose of RBI's inflation targeting. (Bloomberg)
The price that the Indian economy will pay to keep a lid on inflation should not be so high that it defeats the purpose of RBI's inflation targeting. (Bloomberg)

RBI is looking through core inflation, and it may be right this time around

  • RBI’s own forecasts of headline inflation have been rather benign despite factoring in the sticky and elevated core
  • Some experts say that monetary policy has to take into account the trade-off between growth and inflation

Indian markets seem to be having a heady cocktail of earnings cuts and a higher-than-usual valuation premium. (Mint)
Indian markets seem to be having a heady cocktail of earnings cuts and a higher-than-usual valuation premium. (Mint)

If Q3 results weren’t that bad, why are Nifty EPS estimates still falling?

  • Earnings estimates of listed companies have been cut by 11% since the beginning of 2019
  • Valuations have been rock solid on the assumption that growth will catch up at some point in time

The Employees Provident Fund Organisation has invested a total of  ₹5,507 crore in CPSE ETFs and Bharat 22 ETF. (Mint)
The Employees Provident Fund Organisation has invested a total of 5,507 crore in CPSE ETFs and Bharat 22 ETF. (Mint)

EPFO in a spot after dismal CPSE ETF and Bharat 22 ETF returns

  • EPFO investments in CPSE ETF and Bharat 22 ETF have yielded just 1.89% and 0.48%, respectively, as of 31 December
  • EPFO has invested in CPSE ETFs in three tranches and in Bharat 22 ETF in two tranches

Oil climbs to 3-month high on supply curbs and trade talks

  • Brent for April settlement was at $66.47 a barrel, up 22 cents, on the London-based ICE Futures Europe exchange, after gaining 6.7% last week
  • Futures in New York on Monday rose to the highest intraday level since 20 November, after advancing 5.4% last week

 (Bloomberg)
(Bloomberg)

US markets gain on earnings; bonds rise, dollar falls

  • The S&P 500 Index rose 0.2% as of 12:39pm New York time
  • The MSCI All-Country World Index rose 0.2%. The MSCI Emerging Market Index gained 0.1%