PremiumGST collections rose 12% to over ₹1.49 lakh crore in February, the finance ministry said on Wednesday. February 2023 witnessed the highest cess collection of ₹11,931 crore since the implementation of GST. Meanwhile, China’s manufacturing activity recorded its highest monthly improvement in more than a decade in February.
Metal stocks boosted Indian shares on Wednesday, which tracked Asian peers to close higher, though persistent rate-hike fears created an overhang amid a lack of other major triggers.
The Nifty 50 index zoomed almost 150 pts to close at 17,450, while the S&P BSE Sensex edged 450 points higher to end above 59,400, at 59,411. Adani stocks continued to rally for a second day in a row.
The rise in domestic equities was in sync with an uptick in Asian peers after February manufacturing activity in the world's largest producer of metals, China, rose to over-a-decade-high levels on reopening.
S Ranganathan, Head of Research at LKP securities said, "Benchmark Indices finally tasted a tinge of green in today's trade on the back of monthly automotive volume numbers and healthy GST collections in a shorter month. Even as the street reacted to the third Quarter qDP numbers today, markets seem to look forward towards the 5% GDP during Q4."
All sectors ended in the green but the Metal index gained the most as a boost in Adani Enteprises stock and a positive outlook from China brought cheers to the sector.
Adani Enteprises jumped 15% and led the Nifty 50 index followed by Hindalco which gained more than 3%. UPL, SBI, and Axis Bank also gained more than 2.5%. Britannia and Power Grid remained under pressure throughout the session and shed more than 1.5%.
Japan's Nikkei share average eked out gains to end higher as sentiment improved after data showed China's manufacturing activity in February expanded at the fastest pace in more than a decade.
The Nikkei index closed up 0.26% after falling as much as 0.5% earlier in the day tracking an overnight slump on Wall Street. The broader Topix edged up 0.23%.
Chinese markets rallied as unexpectedly strong manufacturing data suggested that the economic recovery is gathering pace, emboldening traders to pile in after weeks of heavy selling.
The Hang Seng China Enterprises Index jumped 5.1% helped by tech and property stocks, rebounding after a loss of more than 11% in February. The Hang Seng Index climbed 4.2%. The Shanghai Composite Index added 0.90%.
Miners and luxury firms lifted European shares on Wednesday after strong data from China brought relief to investors fearful of an economic slowdown, while declines in shares of eurozone's biggest bank BNP Paribas kept gains in check. The continent-wide STOXX 600 rose in the morning trade.
UK's FTSE 100 opened higher with energy stocks and miners in the lead as commodity prices surged. The blue-chip FTSE 100 was up in early trading, while the more domestically focussed FTSE 250 midcap index was muted.
Shares of Uflex India rallied nearly 12 per cent to ₹429.90 on the BSE in Wednesday's afternoon trade after the company denied reports over alleged bogus transactions and seizure of evidence by the Income Tax department. (Read More)
Domestic airlines industry is expected to fly back into profitability next fiscal, for the first time since the outbreak of Covid, amid easing cost pressures and reduction in leverage to support credit profiles, a report said on Wednesday.
As per the report by credit rating agency Crisil, the industry is also likely to pare its net loss by as much as 75-80 per cent year-on-year to ₹3,500-4,500 crore this fiscal, compared with around ₹17,500 crore last fiscal.
Strong recovery in passenger traffic and easing cost pressures are supporting this turnaround in operating performance of airlines, Crisil said.
The projections are based on Crisil Ratings analysis of three airlines that account for around 75 per cent of domestic air traffic.
Domestic and international passenger traffic recovered to 90 per cent and 98 per cent, respectively, in the nine months through December this fiscal, compared with the corresponding period of fiscal 2020 (pre-pandemic).
Business and leisure travel rebounded strongly even as international scheduled services resumed, it said and added that the festival season has accelerated recovery in the second half. (PTI)
Hong Kong and mainland stocks rallied more than four percent Wednesday after forecast-busting Chinese data showed factory activity expanding at its fastest pace in over 10 years, indicating the economy is rebounding from zero-Covid.
The Hang Seng Index jumped 4.21 percent, or 833.77 points, to 20,619.71.
The Shanghai Composite Index added 0.90 percent, or 32.74 points, to 3,312.35, while the Shenzhen Composite Index on China's second exchange gained 1.01 percent, or 21.73 points, to 2,163.82.
China's manufacturing purchasing managers index (PMI) came in at 52.6 last month, its highest since 2012 and up from 50.1 in January, as the economy reopened after years of strict pandemic controls that hammered businesses. (AFP)
GST collections rose 12 per cent to over ₹1.49 lakh crore in February, the finance ministry said on Wednesday.
February 2023 witnessed the highest cess collection of ₹11,931 crore since implementation of GST.
The collections are, however, lower than the second highest Goods and Services Tax (GST) mop-up recorded in January at over ₹1.57 lakh crore. The collection reached an all-time high of ₹1.68 lakh crore in April 2022.
"The gross GST revenue collected in the month of February 2023 is ₹1,49,577 crore of which CGST is ₹27,662 crore, SGST is ₹34,915 crore, IGST is ₹75,069 crore (including ₹35,689 crore collected on import of goods) and cess is ₹11,931 crore (including ₹792 crore collected on import of goods)," the ministry said in a statement. (PTI)
BNP Paribas remains Underweight on the Indian FMCG sector given its rich valuation and high consensus earnings forecasts. For most companies, its earnings estimates are below consensus, and the brokerage have further lowered them post 3QFY23 results.
“While the FY24/25 outlook is positive with moderation in raw material costs and signs of rural recovery, we think risks remain on the extent of margin expansion due to sharp currency depreciation, an increase in advertisement spends, and cost benefits being passed on to consumers to drive volume recovery. Our preferred picks remain ITC, Titan, Britannia and Emami," said the brokerage. (Read More)
India's Adani Group has told creditors it has secured $3 billion loan from a sovereign wealth fund, two sources with knowledge of the matter said, as the embattled conglomerate seeks to ease concerns about its credit profile after a short-seller attack.
The credit line from the sovereign wealth fund could be upsized to $5 billion, said the two sources, citing a memo that was circulated to participants as highlights of a three-day investor roadshow ending on Wednesday. (Read More)
Shares of all ten listed companies of the Adani Group climbed for the second straight day on Wednesday after taking a beating in recent sessions. The conglomerate's combined market capitalisation jumped by ₹39,000 crore to above ₹7.50 lakh crore mark in today's trade.
Shares of Adani Group's flagship, Adani Enterprises jumped around 15 per cent to trade at ₹1563 on the NSE. Adani Enterprises is among the top Nifty 50 gainers. (Read More)
Akasa Air is going to place an order for a fleet of aircraft which will be in three digits by the year-end, the company said on Wednesday. The company's founder and Chief Executive Officer, Vinay Dube said it plans to go international by the year-end and intends to set up a learning academy in Bengaluru. He also said Akasa has already ordered a fleet of 72 aircraft of which 18 have been delivered. "By the end of the year we will place a large order for aircraft. I'm not going to disclose the number but the order will be in three digits and it will be significant," Dube said in a press conference here. In the next one year, Akasa is going to hire 300 pilots, Dube said, adding that the company is also going to open a learning centre in Bengaluru. According to him, Akasa Air will need at least 3,500 pilots in the next one decade. (PTI)
Maruti Suzuki India on Wednesday said its total wholesales increased 5 per cent to 1,72,321 units in February.
The country's largest carmaker had dispatched 1,64,056 units to its dealers in February 2022.
Domestic wholesales rose 11 per cent to 1,55,114 units as compared with 1,40,035 units in February last year, the automaker said in a regulatory filing.
Total exports last month however dropped 28 per cent to 17,207 units from 24,021 units in February 2022. (PTI)
Ceat Ltd aims to expand its presence in the exports business and also explore emerging verticals such as electric vehicles (EV). The company intends to pursue the same through its research and development capabilities, which it showcased to analysts during their visit to Ceat’s plant in Halol, Gujarat.
The plant is highly automated and has a capacity of 20,000 passenger car radial (PCR) tyres and 4,500 truck and bus radial tyres every day. (Read More)
Japan's Nikkei share average eked out gains to end higher on Monday, as sentiment improved after data showed China's manufacturing activity in February expanded at the fastest pace in more than a decade.
The Nikkei index closed up 0.26% at 27,516.53, after falling as much as 0.5% earlier in the day tracking an overnight slump on Wall Street.
The broader Topix edged up 0.23% to 1,997.81.
Overnight, the Dow Jones Industrial Average fell 0.71, the S&P 500 lost 0.30% and the Nasdaq Composite dipped 0.1%.
Wall Street closed out February in a subdued fashion with each of the three major indexes ending with monthly losses, as investors continue to assess whether U.S. interest rates will remain high for an extended period. (Reuters)
The Insurance Regulatory and Development Authority of India (Irdai) has made it mandatory for general insurers or stand-alone health insurers to launch health insurance policies that can provide coverage to people with mental illness and those afflicted with HIV/AIDS and disabilities.
In its latest circular, Irdai said all general and stand-alone health insurers who have been issued a Certificate of Registration to transact general and health insurance business should mandatorily launch and offer their respective products immediately. (Read More)
India's financial capital Mumbai has witnessed a new record in revenue collection from property registration in the last five years. Mumbai's revenue collections from property registrations scaled up at ₹1,102 crore in February this year--79% jump against last year. In February 2022, the revenue collection from property stood at ₹615 crore.
Inspector General of Registration (IGR), Maharashtra said, "Total revenue collected through stamp duty and registration fees in Mumbai in February 2023 is over ₹1,102 crore while back in February 2022 it was approx. ₹615 crore". (Read More)
Metal and Realty indices lead the rally and Adani stocks continue to shine
All sectors are in red with Metal and Realty leading the rally, while Pharma stays around the flat zone. Adani stocks continue to rise
On account of the strong US dollar and hawkish US Federal Reserve amid rising US inflation concerns, gold prices continue to remain under sell-off pressure and hover around 2-month lows. Gold price today opened lower in the domestic market at ₹55,402 per 10 gm and went on to hit further lower levels in the early morning session. The yellow metal price corrected in the international spot market as well and made an intraday low of $1,813.94 per ounce in morning deals on Tuesday's session. However, the US dollar rate continued to remain strong on US Fed interest rate hike speculations. After witnessing some profit booking on Monday, Dollar Index regained momentum in the early morning session and added 0.12 per cent and hit 104.750 levels.
According to bullion market experts, gold rates today is under pressure due to stock US economic data, which has stoked inflation fear among the US Fed officials that has provided fodder to interest rate hike speculations. They said that due to the expected US Fed interest rate hike, US dollar rates have also rallied and Dollar Index has climbed to 105 levels and sustained above these psychological levels since last weekend's sessions. (Read More)
Moody's has published its macro-outlook for G20 economies and has made upward revisions to its 2023 growth forecasts for the US, the euro area and China. Additionally, the credit rating agency has raised growth projections for India, Mexico, Russia, Saudi Arabia and Türkiye.
Moody's now expects India's real GDP growth to be 5.5% in 2023, up from the earlier projection of 5%, and to be 6.5% in 2024. The upward revisions for India also incorporate a significant increase in capital expenditure budget allocation to ₹10 lakh crore (3.3% of GDP) for fiscal year 2023-24, up from ₹7.5 lakh crore for the fiscal year ending in March 2023. (Read More)
India is seeking to convince Moscow and Beijing to go along with a consensus on describing Russia’s war in Ukraine, similar to the one reached by leaders of the Group of 20 nations last year, a senior official with knowledge of the matter said.
Efforts are on to bridge differences ahead of the meeting of G-20 foreign ministers starting later Wednesday, the official said, asking not to be identified because the discussions are private. The latest round of meetings of the grouping come as Vladimir Putin’s war has entered a second year.
A meeting of G-20 finance ministers and central bank heads over the weekend failed to reach a consensus on the language to describe Russia’s aggressions in Ukraine, forcing host India to issue a chair’s summary instead of a traditional joint communiqué. Russia and China deviated from the Bali formula, objecting to the use of the word ‘war,’ India’s Finance Minister Nirmala Sitharaman said after the finance heads’ meeting ended. (Bloomberg)
India's manufacturing sector expanded at the slowest pace in four months in February. The seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) was at 55.3 in February, little-changed from 55.4 in January and signalling a strong improvement in the health of the sector. The headline figure was also above its long-run average of 53.7.
“India's manufacturing industry sustained robust growth of output and new orders halfway through the final fiscal quarter, albeit with a notable slowdown in the rate of international sales expansion. Companies continued to scale up input purchases, while job numbers expanded only fractionally amid a general lack of pressure on operating capacities. Meanwhile, input cost inflation accelerated to a four-month high but there was a softer upturn in selling charges," as per the report. (Read More)
India's economic growth slowed further in the December quarter as pent up demand eased and weakness in the manufacturing sector continued.
Asia's third largest economy recorded year-on-year growth of 4.4% in October-December, down from 6.3% in July-September, data released by the government on Tuesday showed. The sharp fall in the year-on-year growth rate is also partly due to a fading of pandemic-induced base effects and revision to last year's growth, economists said.
October-December growth was below a Reuters forecast of 4.6%.
The government, however, retained its growth forecast of 7% for 2022/23 while revising higher growth for the previous year to 9.1% from the earlier 8.7%.
"We are likely to hit the 7% GDP growth target for the year," said India's chief economic advisor V. Anantha Nageswaran at a press briefing. Growth of 4-4.1% is possible in the January-March quarter, he said. (Reuters)
India's unemployment rate rose to 7.45% in February from 7.14% in the previous month, data from the Centre for Monitoring Indian Economy (CMIE) showed on Wednesday.
The urban unemployment rate declined to 7.93% in February from 8.55% in the previous month, while the rural unemployment rate rose to 7.23% from 6.48%, the data showed. (Read More)
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: There is a tug-of-war going on between FIIs and DIIs now. During the last 5 sessions FIIs sold equity for ₹10049 crores; the DIIs matched this with buying for ₹10200 cores. So, even though the institutional net buying is positive, the market has been trending down on negative sentiments and increasing short build-up in the system. Retail/HNI activity is subdued unlike in the last 2 years. There are no positive triggers to take the market higher, but short covering may happen since the market is oversold. The only sensible investment strategy in this highly uncertain time is to slowly accumulate high-quality stocks for the long term, ignoring short-term volatility. Banks, capital goods and IT stocks can give good returns for the medium to long run.
Shares of Vedanta Ltd surged more than a per cent after billionaire Anil Agarwal's Vedanta Resources Ltd on Tuesday said it has enough means to meet debt repayment liabilities in the coming quarters as it looked to assuage investor concerns around its financial position.
Earlier this month, S&P Global Ratings stated that the company's credit ratings may "come under pressure" if it is unable to raise $2 billion and/or sell its international zinc assets.
Asia's factory activity stalled in February with the exception of China, as slowing global demand, stubbornly high inflation and the fallout from past interest rate hikes weighed on the region's economies, surveys showed on Wednesday.
Recovering momentum in China following its exit from stringent COVID-19 policies late last year offered hopes of a more subdued downturn in the global economy, as the U.S. Federal Reserve stays on its higher for longer interest rate path.
China's manufacturing activity expanded at the fastest pace in more than a decade in February, according to an official index, while a private sector survey also showed activity rising for the first time in seven months.
India and Australia saw economic growth slow in the quarter to December, and South Korea's exports fell in February for a fifth straight month, highlighting the pain slowing global demand was inflicting on the region's manufacturers. (Reuters)
Global markets today: .he markets around the globe remained muted, US stocks fell in late trade on Tuesday, and Asian markets also struggled on Wednesday morning continuing the subdued sentiment as the dollar continued to stay firm. Higher interest rates for longer coupled with slower growth expectations kept the market sentiment downbeat making the investors go risk-off.
Here we list out important global market indicators that may drive the Indian stock market today: (Read More)
Taiwanese Apple supplier Foxlink announced on Wednesday that it is making efforts to resume production after a fire broke out at one of its plants in southern India, causing the suspension of operations at the facility that produces iPhone charging cables.
The factory is located in the Chittoor district of India's Andhra Pradesh state and is unlikely to resume full operations for two months, raising supply chain concerns for the U.S. tech giant, Reuters reported this week. (Read More)
STOCK IN FOCUS
Ashok Leyland (CMP 145): In view of the strong products basket, new launches across segments and CV up-cycle over next 1-1.5 years, we recommend BUY rating on ALL with a Target Price of Rs185, valuing the stock at P/E multiple of 17x.
Intraday Picks
TECHM (PREVIOUS CLOSE: RS1,100) SELL
For today’s trade, short position can be initiated in the range of Rs1,115-
1,125 for the target of Rs1,075 with a strict stop loss of Rs1,142.
BAJAJFINSV (PREVIOUS CLOSE: RS1,335) SELL
For today’s trade, short position can be initiated in the range of Rs1,344-
1,352 the target of Rs1,305 with a strict stop loss of Rs1,375.
ULTRACEMCO (PREVIOUS CLOSE: RS7,261) BUY
For today’s trade, long position can be initiated in the range of Rs7,240-
7,200 for the target of Rs7,390 with a strict stop loss of Rs7,130.
Indian government bond yields are expected to fall marginally in the early session on Wednesday, as weaker-than-expected growth may force the central bank to rethink its monetary policy tightening stance.
The 10-year benchmark 7.26% 2032 bond yield is expected to trade in the 7.42%-7.48% band, after closing higher at 7.4623% on Tuesday, a trader with a private bank said.
The yield rose 12 basis points in February, the biggest monthly rise since September.
"Weaker growth should at least make a case for the Reserve Bank of India to consider the impact rate hikes are having on the growth front," the trader said.
Economic growth slowed further in the December quarter as pent up demand eased and weakness in the manufacturing sector continued. Asia's third-largest economy recorded year-on-year growth of 4.4% in October-December, down from 6.3% in July-September. (Reuters)
The Indian stock market ended in the red for eight days in a row with Nifty breaking below the Budget day low, key support of 17,353. In the last eight sessions, Sensex has dropped 3.8% while Nifty has fallen 4%. (Read More)
The price of 14.2 kg Domestic liquefied petroleum gas (LPG) cylinder has been increased by ₹50 with effect from today. With the latest revision, the domestic cylinder will cost ₹1103 per cylinder from today in Delhi as reported by the news agency ANI.
Also, the price of a 19 kg commercial LPG cylinder has been increased by ₹350.50 With this increase 19 kg commercial cylinder will cost ₹2119.50 in Delhi. New rates are effective from today. The new revised price of 14.2 Kg LPG cylinder in Delhi will be ₹1103 instead of ₹1053 from today.In Mumbai, this cylinder will be sold for ₹1102.5 instead of ₹1052.50. In Kolkata it will cost ₹1129 instead of ₹1079 and in Chennai, it will cost ₹1118.5 instead of ₹1068.50. (Read More)
The rupee appreciated by 21 paise to close at 82.58 against the US dollar on Tuesday as suspected RBI intervention bolstered the sentiment amid continued FII outflows and firm crude oil prices.
Forex traders said the central bank's intervention and lower commodity prices supported the local unit.
At the interbank foreign exchange market, the local unit opened at 82.69 against the American currency and finally settled at 82.58 against the greenback, registering a gain of 21 paise over its previous close of 82.79.
During the trading session, the rupee touched a high of 82.58 and a low of 82.75 against the dollar.
The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.03 per cent to 104.70. (PTI)
Oil prices rose for a second day on Wednesday as reports of expanding manufacturing activity in China, the world's biggest crude importer, boosted the outlook for global fuel demand.
Brent crude oil for May was up 24 cents, 0.3%, to 83.69 a barrel at 0214 GMT. The April contract expired on Tuesday up $1.44, or 1.8%, at $83.89.
U.S. West Texas Intermediate (WTI) crude for April rose 31 cents, or 0.3%, to $77.36 a barrel after gaining 1.8% in the previous session.
Oil prices continue to be supported by expectations for a strong rebound in demand in China, the world's second-largest crude consumer. Those expectations were further supported by data showing China's factory activity rose for the first time in seven months in February, according to the purchasing manager's index (PMI) published by Caixin/S&P Global on Wednesday.
Official government PMI data also published on Wednesday showed the fastest expansion in manufacturing since 2012 occurred in February. (Reuters)
The dry spell of the mainboard IPO in 2023 seems to end as automotive component manufacturer Divgi TorqTransfer Systems' initial public offering will be opened for public subscription on March 1 till March 3, 2023. The price band has been fixed at ₹560-590 a share. The company on Tuesday said it has raised more than ₹185 crore from anchor investors ahead of its issue.
Divgi TorqTransfer Systems IPO comprises a fresh issue of equity shares worth ₹180 crore and an Offer For Sale (OFS) of 39.34 lakh shares by investors and other selling shareholders.
As per market observers, Divgi TorqTransfer Systems shares are commanding a premium (GMP) of ₹60 in the grey market. The equity shares of the company are expected to list on March 14 on the stock exchanges BSE and NSE. (Read More)
India's combined Index of Eight Core Industries (ICI) for January increased by 7.8 per cent compared to the corresponding period of last year, said the Ministry of Commerce & Industry on 28 February.
The government data added that for the April-January 2022-23, the IIP grew by 7.9 per cent.
“The combined Index of Eight Core Industries (ICI) increased by 7.8 per cent (provisional) in January 2023 as compared to the Index of January 2022," stated the release. (Read More)
Billionaire Anil Agarwal's Vedanta Resources Ltd on Tuesday said it has enough means to meet debt repayment liabilities in the coming quarters as it looked to assuage investor concerns around its financial position.
In a statement, the firm, which is the majority owner of Mumbai-listed mining and oil and gas company Vedanta Ltd, said it is in the advanced stage of finalization to tie up USD 1.75 billion through a combination of syndicate loan and bilateral bank facilities.
Vedanta Resources said it has pre-paid all of its debt that was due for repayment till March 2023, deleveraging by USD 2 billion in the past 11 months. Further, it is confident of meeting its liquidity requirements for the quarter ending June 2023.
Vedanta Ltd, it said, continues to deliver healthy cash flows and does not have any pledge except 6.8 per cent of HZL shares.
Vedanta Ltd shares tanked 6.58 per cent to close at ₹268.45 on BSE. (PTI)
Ambuja Cements Ltd bagged a coal mine in Maharashtra on the second day of the commercial mines auction on Tuesday.
While Assam Mineral Development Corporation Ltd emerged as the highest bidder for a coal block in Jharkhand, Shreesatya Mines Private Ltd bagged a coal block in the eastern state.
The auction of three other coal blocks were underway.
"Forward auctions for these mines have been started on 27.02.2023 and on the 2nd day of the e-auction, six coal mines were put up for auction," the coal ministry said in a statement.
Of the six blocks put on sale, five are fully explored coal mines and one is partially explored. (PTI)
Tata Group’s talks for a majority stake in Bisleri International Pvt, one of India’s largest bottled water makers, have stalled over valuation, according to people familiar with the matter.
The Indian conglomerate had been in advanced discussions to take control of Bisleri and the parties were working on finalizing the structure of a transaction, the people said. Bisleri’s owners were looking to raise about $1 billion from a deal, the people said. Negotiations later hit a snag as the companies were unable to agree on a valuation, said the people, who asked not to be identified as the information is private. (Read More)
India’s economic growth rate slowed to 4.4% in the December quarter as rising interest rates and elevated raw material prices rippled through the economy while global trade languished.
The median estimate of 20 economists polled by Mint showed that growth likely slowed to 4.7% in the December quarter.
Gross domestic product growth also slowed from 6.3% in the three months ended September and 5.2% in the year-ago December quarter. (Read More)
Wall Street stocks finished lower following a choppy session Tuesday as consumer confidence data disappointed while US Treasury bond yields edged lower.
The Conference Board's reading of consumer confidence fell again in February, despite analyst expectations of a pick-up as survey participants expressed worry about future employment and business conditions.
But in a favourable development for stocks, the yield on the 10-year US Treasury note retreated.
Stocks have been buffeted in recent sessions by fears the Federal Reserve will prolong its policy of aggressive interest rate hikes.
"Today, there really was no conviction in one direction or another," said Steve Sosnick, chief strategist at Interactive Brokers.
"There weren't many catalysts today," he added.
The Dow Jones Industrial Average finished down 0.7% at 32,656.70.
The broad-based S&P 500 dipped 0.3% to 3,970.15, while the tech-rich Nasdaq Composite Index shed 0.1% to 11,455.54. (AFP)
Download the App to get 14 days of unlimited access to Mint Premium absolutely free!
