As Indian tycoon Gautam Adani's woes deepen and forced him to drop a share sale, India's central bank has sprung into action. RBI has asked banks for details of their exposure to the Adani group of companies, government and banking sources said. Moreover, Citigroup has stopped accepting securities of Gautam Adani’s group of firms as collateral for margin loans.
Indices remain volatile with Sensex closing above 59,900, but Nifty ending flat
Indian shares continued to remain volatile on Thursday as the week-long rout in Adani Group stocks persisted, erasing $100 billion in market value, while insurers fell on a budget tax proposal that would dent the appeal of high-value life insurance policies.
The negative sentiment was offset by a jump in IT and FCMG stocks which managed to keep the Sensex in the green, but due to more exposure to Adani stocks, the Nifty 50 ended with a marginal loss.
The Nifty 50 index shed 6 points to close at 17,610, while the S&P BSE Sensex jumped 225 points to close above 59,900, at 59,932.
Adani Enterprises sank more than 25% and Adani Ports more than 7%. UPL shed around 6% and HDFC Life more than 4%. ITC and Britannia shined in today's session as they climbed close to 5% each. IndusInd Bank also gained 3%.
Among sectors, Metal and Oil & Gas shed 4% and 2%, respectively. FMCG sector managed to jump 2% and IT gained around 1.8% in today's session.
Asian indices mostly gained on Thursday as they tracked Wall Street's overnight rally after the Federal Reserve said it had turned a key corner in the fight against inflation.
Japan's Nikkei share average ended slightly higher on Thursday led by technology heavyweights after the Nasdaq jumped overnight, while a stronger yen weighed on exporters and limited the index's advance. The Nikkei index edged up 0.2%. Of the Nikkei components, 51 stocks rose, 171 fell and three traded flat.
China and Hong Kong stocks retraced gains seen in the early trading hours of Thursday and finished lower, as investors stayed on the sideline and awaited further signs of recovery in the pandemic-hit Chinese economy.
China's blue-chip CSI 300 Index lost 0.35% by the end of the morning session, while the Shanghai Composite Index climbed 0.02%. Hang Seng Index lost 0.52% and Hang Seng China Enterprises Index slipped 0.72%.
European shares climbed led by technology and real-estate stocks, with focus squarely on the European Central Bank's interest rate decision a day after the Federal Reserve acknowledged its progress on curbing stubborn price pressures. The pan-European STOXX 600 was up in the morning session.
UK's main stock indexes rose in the morning session on Thursday led by optimism while all eyes turned to the Bank of England for its verdict on interest rates. The blue-chip FTSE 100 rose in the morning after slipping for the past two sessions.
Rupee erases early gains, traces above 82 against dollar as equities remain jittery
Indian rupee erased its early gains as the equities market remained nervous over the free fall in Adani stocks after the ₹20,000 crore follow-on-public offer (FPO) was called off. The local unit gained as much as nearly 81.8 against the US dollar, however, the upside was capped. Currently, the rupee has traced back to over 82 mark.
At the time of writing, the rupee traded at 82.1800 against the US dollar on Thursday compared to the previous session's closing of 81.92 per dollar. (Read More)
Dabur Q3 net profit dips 5% to ₹476 cr, revenue down 3%
FMCG major Dabur on Thursday reported a 5.49 per cent decline in consolidated net profit to ₹476.65 crore for the December 2022 quarter. This is against a net profit of ₹504.35 crore in the year-ago period, Dabur said in a regulatory filing. The consolidated revenue of Dabur grew by 3.44 per cent to ₹3,043.17 crore in the quarter under review from ₹2,941.75 crore a year ago. The company's order book stood at $8.2 billion. (Read More)
SBI has $2.6 billion of loans to Adani Group
State Bank of India, the country’s largest financier, has given loans of as much as $2.6 billion to companies in the Adani conglomerate, or about half of what is allowed under rules, according to a person familiar with the matter.
SBI’s exposure includes $200 million from its overseas units, the person said, asking not to be identified discussing private information. Dinesh Kumar Khara, chairman of SBI, said earlier on Thursday the Adani Group companies were servicing the loans and he doesn’t see an “immediate challenge" to whatever the bank has lent so far.
The Reserve Bank of India, the nation’s banking regulator, had asked lenders for details of their exposure to the conglomerate following a rout in group companies’ stock prices, Bloomberg News reported earlier Thursday. (Read More)
Tata-owned Titan's Q3 profit falls 3.7%
Tata Group-owned Titan Co Ltd reported a 3.7% fall in third-quarter profit on Thursday as tepid demand for jewellery and higher expenses hurt margins.
Titan, which sells watches, eyewear and owns the Tanishq jewellery brand, said its profit fell to 9.51 billion rupees ($115.8 million) in the three months ended Dec. 31, from 9.87 billion rupees a year earlier.
Analysts, on average, were expecting Titan's profit to rise to 10.35 billion rupees, according to Refinitiv IBES data. ($1 = 82.1280 Indian rupees) (Reuters)
Navneet Munot, MD & CEO, HDFC AMC views on Union Budget 2023: This budget builds up on the reforms initiated over the past few years
Mr. Navneet Munot - MD & CEO, HDFC Asset Management Co Ltd: Balancing the expectations of an aspirational country like ours with fiscal prudence is no mean task. The first budget of ‘Amritkaal’ did a fine job of balancing the two, especially against a challenging global backdrop. This budget builds up on the reforms initiated over the past few years with a focus on improving India’s growth potential and quality of life. Continued focus on capex, job creation and special mention of financial sector reforms are encouraging. Now with the event behind us, markets’ focus shifts back to global cues, monetary policy and incoming data points
Prabhudas Lilladher Stock Report on KEC International, Cholamandalam Investment and Finance
KEC International (KECI IN): Rating: ACCUMULATE | CMP: Rs457 | TP: Rs500
Q3FY23 Result Update - Healthy execution; disappointing margins
§ Order prospects remains healthy at Rs1.1trn.
§ Margins impacted (down 259bps YoY) due to execution of legacy projects (TBCB order) and continued losses in SAE Brazil.
We revise our EPS estimates by -55.1%/-6.4%/+1.1% for FY23/24/25, factoring in near term challenges on margins front, despite decent revenue visibility given healthy order inflow outlook. However, picking out of legacy orders to lead gradual improvement in margins, sequentially. KEC International (KEC) reported mixed quarterly performance with revenue growing 31% YoY, while EBITDA margin contracted by 259bps YoY (due to execution of legacy order and SAE performance). Margins are likely to revive from Q4FY24 (75-100bps) with completion of SAE projects and execution of newer orders. Net debt and working capital are expected to improve, led by better cash collections and expected breakeven in SAE. Management is confident to achieve ~20% revenue growth with order inflows of ~Rs200bn for FY23.
We remain positive on KEC for long term given its 1) strong OB, 2) healthy execution momentum, 3) strong T&D outlook and 4) strong revenue visibility from non-T&D segments like Civil, Railways, Oil & Gas etc., once margins normalize. The stock is trading at PE of 16.7x/11.4x FY24/25E. Maintain ‘Accumulate’ rating with TP of Rs500 (Rs495 earlier).
Cholamandalam Investment and Finance Company (CIFC IN): Rating: BUY | CMP: Rs750 | TP: Rs820
Q3FY23 Result Update - Strong operational performance, asset quality sees improvement
§ Stage-3 Assets at 3.5% vs 3.8% in Q2FY23; as per RBI norms GNPA at 5.37%.
§ Highest ever disbursement of ₹175 bn in a quarter up 19.8% QoQ
We maintain ‘BUY’ rating and increase our TP to Rs820 (4.4x on Sep’24E PABV) from Rs792 (earlier:4.2x Sep’24E PABV). We have increased our multiple as company is scaling up its new business verticals very strongly and vehicle demand is also strong. Our other estimates remains unchanged. AUM growth was very strong at 8.9%QoQ/31.3% YoY led by strong momentum in new business verticals - up 45% on a QoQ basis. Asset quality improved with Stage-3 at 3.51% vs 3.8% in Q2’23 and Stage-3 as per RBI norms stood at 5.37% vs 5.84% in Q2’23. Re-rating can happen once asset quality holds up when the book of new business verticals mature. Maintain ‘BUY’.
ITC share price hits life-time high after budget. Can it rise further?
ITC share price continued its uptrend for the third straight session and extended its post-budget gains further. While deepening its Wednesday gains, ITC share price today climbed to a new lifetime high of ₹384.70 apiece levels, logging more than a 6 per cent rise intraday rise in the early morning session.
According to stock market experts, ITC shares are rising as finance minister Nirmala Sitharaman announced to increase in agriculture credit target by more than 11 per cent on a year-on-year basis in budget 2023. This is expected to benefit agriculture-driven stocks like ITC. They said that the stock is in overbought zone on chart pattern and profit booking may trigger any time. So, one should book profit in the scrip and wait for the stock to retrace from current highs as fundamentals of the stock is still strong. (Read More)
India 10-yr bond yield to dip on high chance of RBI stance change -PNB Gilts' Goel
India's benchmark bond yield could break the key 7.25% handle due to the high likelihood of the central bank changing its policy stance to neutral after hiking interest rates once last time next week, the top official of PNB Gilts said on Thursday.
However, the Reserve Bank of India will have to resume its bond purchases next financial year to ensure a smooth completion of the government's borrowing programme, said Vikas Goel, managing director and chief executive officer of PNB Gilts.
"There is a very high probability of the central bank hiking rates and changing its stance to neutral. And, if this happens, the benchmark bond yield may test 7.10%-7.15% levels," he said.
The RBI has raised the repo rate by 225 basis points since May 2022, to fight inflation, which finally came within its tolerance range in the last two months of 2022.
The central bank is expected to hike rates by 25 basis points (bps) at its next meeting on Feb. 6-8, but the key for the market will be officials' stance on the terminal rate.
"Till then, the technical level of 7.25% is unlikely to be broken," said Goel. (Reuters)
Top Nifty 50 gainers and losers at this hour; Adani stocks continue to drag
HDFC Q3 net profit rises 13%; shares trade lower
Housing Development Finance Corporation Ltd (HDFC) on Thursday reported a 13% rise in its net profit for the third quarter ended December 2022 of the current fiscal (Q3 FY23) at ₹3,691 crore as compared to ₹3,260 crore in the year-ago quarter. Meanwhile, its revenue from operations rose 29% year-on-year (YoY) to ₹15,230 crore.
Shares of HDFC were trading over 2% lower at ₹2,605 apiece on the BSE in afternoon deals. The mortgage lender's stock has risen more than 4% in a year's period. (Read More)
After remaining relatively stable, PSU Bank has dropped more than a per cent in the second half of today's session with almost all stocks in red
LKP Securities on Auto Sector: Strong PV recovery, two wheelers weak
We witnessed a better January than December for PVs. As expected, the fourth and the last quarter of the year looks strong for the PV segment as the chip shortage issue eases further and new launches on both ICE and EV sides shall take place. Seasonally too, Q4 is a good quarter. 2Ws shall gain strength on low base of last year, EV launches and better rural demand on the back of anticipated solid Rabi crop output. CVs are going good, however they witnessed a speed breaker in January. The growth shall get moderated as we go further on high base of Q4 FY 22 and H1 of FY 23. Tractors shall report a decent growth this year on good monsoon, Rabi sowing and improvement in the rural economy.
We remain positive on the sector. However, our choice is in the following order - PVs , CVs and 2Ws. Stocks specifically, within the 2Ws, we like Bajaj Auto as we expect solid recovery in domestic sales hereon and bounce back of exports 3-4 months down the line as $ scenario improves in Africa. We also like Hero Motocorp as we believe it is almost free from the exports weakness and is also led by strong monsoons barring a few eastern states, improvement in rural economy and upcoming EV launches. While on the PV side, we like M&M because of its thrust on rural markets through its leadership in tractors business, prudent capital allocation and a robust growth strategy in UVs, EVs and CVs. We also like MSIL on the PV side. We like Ashok Leyland within CVs as it has a diversified revenue base deriving from LCVs, Defense, MHCVs, exports and spares. Every dip in the stocks mentioned above, shall provide good opportunities for investors to enter into them from medium to long term perspective.
FCI sells 8.88 lakh tonne wheat to bulk consumers on first day of e-auction
State-owned Food Corporation of India (FCI) has sold 8.88 lakh tonne of wheat to bulk consumers like flour millers on the first day of e-auction conducted in 22 states, the food ministry said on Thursday.
FCI commenced e-auction of wheat on February 1 under Open Market Sale Scheme (OMSS) for bulk users in order to improve domestic availability and check wheat prices.
On the first day, it offered for sale about 22 lakh tonne of wheat against the earmarked 25 lakh tonne under OMSS.
"More than 1,100 bidders came forward for participation in the first e-auction. A quantity of 8.88 lakh tonne was sold on the first day of e-auction in 22 states," the ministry said in a statement.
In Rajasthan, bidding would be conducted on Thursday, it said.
Further sale of wheat through e-auction will continue throughout the country on every Wednesday till March 15, it added.
Wheat is being offered at a reserve price of ₹2,350 per quintal plus freight charges. A single buyer can quote for a maximum of 3,000 tonne and a minimum of 10 tonne.
Last month, the government announced plans to sell 30 lakh tonne of wheat in the open market from its buffer stock under OMSS in order to check wheat and wheat flour prices. (PTI)
Britannia’s solid Q3 margin takes the stock to a new high
Britannia Industries Ltd maintained strong margin performance in the December quarter (Q3FY23), surpassing expectations. This brightened investor sentiment and shares of the fast-moving consumer goods company hit a new 52-week high of ₹4,595 apiece on early deals on Thursday.
Going ahead, it remains to be seen if margins sustain in the backdrop of a gradually recovering demand environment. An increase in competitive intensity would lead to rise in advertising and promotion expenses, which would weigh on Ebitda margins
Adani Enterprises along with Adani Ports continue to nosedive as they shed 13% and 6%, respectively
India records 128 new COVID-19 infections, active cases decline to 1,763
India's COVID-19 tally rose by 128 in a day while active cases have declined to 1,763, according to the Union Health Ministry data updated on Thursday.
The death toll stands at 5,30,741 with one death reported from Uttar Pradesh, the data updated at 8 am stated.
The total tally of Covid cases was recorded at 4.46 crore (4,46,83,023).
The daily positivity was recorded at 0.09 per cent while the weekly positivity was pegged at 0.08 per cent.
Active cases now comprise 0.01 per cent of the total infections, while the national COVID-19 recovery rate has increased to 98.81 per cent, according to the health ministry website.
The number of people who have recuperated from the disease surged to 4,41,50,519, while the case fatality rate was recorded at 1.19 per cent. (PTI)
FMCG index shines in today's trading as it jumps 2% with most stocks trading higher
Sony Q3 profit down 7.8%, but beats analysts' estimates
Japan's Sony Group Corp posted a 7.8% fall in quarterly operating profit on Thursday as its film division fared worse than a year ago, when a blockbuster "Spider-Man: No Way Home" movie drove its profit.
The electronics and entertainment giant's operating profit came to 428.7 billion yen ($3.33 billion) in October-December, down from a 465.2 billion yen profit a year earlier. The result exceeded analysts' average estimate of a 380.4 billion yen profit, according to Refinitiv data. (Reuters)
Noon Update: FMCG stocks climb, while Adani stocks put a drag on the indices; Sensex is up 150 pts, while Nifty trades flat
Turkey received about 2.3 lakh tourists from India in 2022
Turkey received 2.32 Indian tourists in 2022, among the 51.4 million international visitors, the country’s tourism board said in a statement. According to its data, its tourism revenues reached $46.3 billion, with an increase of 19% compared to 2019. In 2022, Turkey hosted the highest number of visitors from Russian federation, Germany, and the United Kingdom. Visitors from India maintained the record from 2019 when 2.3 lakh had travelled to Turkey. The country also made it easy for anyone to access their visa if they had a valid US or UK visa.Mehmet Nuri Ersoy, Turkey’s minister of culture and tourism, said, “By the end of 2022, the global tourism visitor data recovered by 65% compared to the pre-pandemic period, but it has almost reached its pre-pandemic numbers. Our growth in tourism revenues is even more impressive; in 2022, our tourism revenues reached a record-breaking $46.3 billion, with an increase of 19% compared to 2019. (Read More)
Samsung to make premium Galaxy S23 smartphones in India
Korean smart devices maker Samsung on Thursday said it will manufacture its premium Galaxy S23 smartphones in India to cater to local market requirements.
At present, Galaxy S Series smartphones are being manufactured at Samsung's Vietnam factory and the company imports them for sale in India.
"All Galaxy S23 smartphones sold in India will be manufactured at the company's Noida factory. Samsung already fulfils a majority of the domestic demand in India through local manufacturing at the Noida factory. Samsung's decision to sell 'Made in India' Galaxy S23 smartphones shows the company's commitment to India's manufacturing and growth story," Samsung said in a statement.
The development comes a day after Finance Minister Nirmala Sitharaman announced removal of duty on import of camera lens, which is one of the key unique selling propositions of Galaxy S series smartphones.
The company on Wednesday unveiled three models of Galaxy S23 series smartphones which come with high-end camera sensors. (PTI)
Gold prices today hit fresh record high. What's driving the rally?
Gold prices today extended gains on Thursday to touch fresh record highs after the US Federal Reserve raised interest rates by an expected 25 basis points and Chair Jerome Powell's comments were read as dovish by the market. The yellow metal rose to trade at ₹58,826 on the Multi Commodity Exchange (MCX).
“US Fed has raised interest rates by 25 bps in yesterday's FOMC meeting that signals is soft stance on rate hike. This has led to US dollar rates nosedivingto 9-month low and this is also a reason for gold price rally in domestic and international market," said Anuj Gupta, Vice President — Research at IIFL Securities. (Read More)
RBI asks Indian banks for details of exposure to Adani Group: Report
The Reserve Bank of India (RBI) has asked local banks for details of their exposure to the Adani Group of companies, Reuters reported.
The sources were speaking to Reuters and declined to be named because they were not authorised to speak to the media.
Shares in the Adani group of companies plunged on Thursday after the tycoon Gautam Adani-led conglomerate decided not to go ahead with the fully subscribed Follow-on Public Offer (FPO).
Yesterday, the company said that given the unprecedented situation and the current market volatility, it "aims to protect the interest of its investing community by returning the FPO proceeds and withdraws the completed transaction". (Read More)
ITC stock shines and leads the FMCG index surge; jumps 5%
Rupee trades in narrow range against US dollar
The rupee was trading in a narrow range against the US dollar in opening trade on Thursday, tracking a muted trend in domestic equities.
Forex traders said investors preferred to stay on the sidelines as the US Fed policy statement was hawkish.
At the interbank foreign exchange, the domestic unit opened weak at 81.81 against the dollar, then fell further to 81.86, registering a decline of 6 paise over its last close. It later pared its losses and was trading flat at 81.80 against the greenback.
On Wednesday, the rupee appreciated 8 paise to close at 81.80 against the dollar after Finance Minister Nirmala Sitharaman presented the Union Budget for 2023-24.
"The budget ticked most boxes. Government managed to strike a balance between maintaining capex thrust and attaining fiscal consolidation," IFA Global Research Academy said in a research note.
Budgeted capex at ₹10 lakh crore is 33 per cent higher year-on-year. Fiscal deficit meanwhile has been budgeted at 5.9 per cent of GDP ( ₹17.8 lakh crore) for FY24, in line with most market estimates. (PTI)
Energy index continues to struggle as Adani Total hits the lower circuit once again
General Atomics initiates three key projects in India in artificial intelligence, drones and semiconductors
General Atomics, a major American energy and defence corporation, has started three significant projects in India in the field of artificial intelligence, drones and semiconductors, a company official has said, a day after the launch of a landmark India-US initiative on critical and emerging technologies.
With Bharat Forge, General Atomics Aeronautical Systems (GA-ASI) has entered into a partnership in the critical field of aerostructure manufacturing and with 114ai, an Indian artificial intelligence (AI) company, to develop the next generation of technologies in artificial intelligence, according to Vivek Lall, chief executive, of the General Atomics Global Corporation.
Bharat Forge is one of the leading forging companies in India.
It has entered into a partnership with 3rdiTech, an Indian start-up, in the field of semiconductors, Lall said.
Lall was one of the key private sector players who participated in the various events related to the launch of the India-US initiatives in Critical and Emerging Technologies or iCET here this week.
“GA-ASI is eagerly looking forward to working with Bharat Forge in the critical field of aerostructure manufacturing. Bharat Forge’s expertise in the field of forging is known globally, and their outstanding contributions in the aerospace sector has inspired us to work together for building the next generation of the world’s most advanced unmanned aerial vehicles," Lall told PTI. (PTI)
Dhruva Advisors post-budget views on REITs / InvITs and HNIs & family offices
Views on REITs / InvITs by Ajay Rotti, Partner, Dhruva Advisors: REITs / InvITs are mandatorily required to distribute their cash surplus up to certain limits as per SEBI regulations on a quarterly basis. The distributions generally consist of interest, dividends or repayment of debt. The law provides for a pass-through status or single-stage taxation of the receipts. The receipts are either taxed in the hands of the Trust or the unit holders. Not both. However, repayment of debt was not taxable in the hands of both. This double non-taxation has been addressed. From April 1, 2023, all distribution by a REIT/InvIT representing repayment of debt is taxable as "other income" in the hands of the unit holders.
Views on Impact of the budget on HNIs & family offices by Vaibhav Gupta, Partner, Dhruva Advisors: At an overall level, the Budget is quite positive for the HNIs due to the reduction in the highest income tax rate from 42.74% to 39%. This would see increased adoption of the new tax regime for individuals. Particularly, the high-income bracket founders and professionals will save taxes on their ESOPs. On the other hand, there are a few negative announcements which will impact HNIs and family offices such as the taxability of market-linked debentures as short-term capital gains and taxation of proceeds of high-premium insurance policies. A very significant change is on limiting the exemption provided for capital gains upon the purchase of new residential property. If proceeds received from offers for sale by selling shareholders in an IPO are invested in purchasing a residential property beyond INR 10 cr, then the capital gains exemption will be available only in the proportion that INR 10 cr bears to the total proceeds of the share sale.
UPL shares slide in early trading as it sheds more than 5%
India will cut import tariff on pecans by 70 per cent; says Senator Jon Ossoff
India has agreed to reduce the import tariff on pecans by 70 per cent, said an influential American Senator, who has been campaigning on it for the last one year.
Senator Jon Ossoff, who represents Georgia in the US Senate and met seven times with India’s Ambassador to the US Taranjit Singh Sandhu over the last year, on Wednesday said that the reduction in tariff on pecans would help the farmers in his constituency.
“Today I can announce that after a year of painstaking diplomacy, the Indian government will cut that tariff by 70 per cent. This is a huge win for Georgia pecan farmers, and it wouldn’t be possible without them," Ossoff said.
Ossoff said India’s high pecan tariffs have prevented Georgia pecan exports to this market of more than one billion consumers.
He thanked US Trade Representative Ambassador Katherine Tai for her steadfast support, Sandhu for his constructive engagement, Senator Warnock for his teamwork, and Georgia’s farmers for their perseverance to secure this victory. (PTI)
IT Index jumps in early trading as it gains more than 1.5% with all stocks in green
After Credit Suisse, Citigroup’s wealth unit stops accepting Adani Group securities
Citigroup Inc.’s wealth arm has stopped accepting securities of Gautam Adani’s group of firms as collateral for margin loans as banks ramp up scrutiny of the Indian tycoon’s finances following allegations of fraud by short seller Hindenburg Research.
The US lender’s move to restrict lending comes after a similar change at Credit Suisse Group AG, as Adani’s beleaguered empire becomes further engulfed in crisis.
“In recent days, we have seen a dramatic price drop of Adani issued securities," Citigroup said in an internal memo seen by Bloomberg News. “Stock and bond prices have plummeted following the negative news around the group’s financial health." (Read More)
Adani stocks drag the indices into red as Sensex sheds 350 pts at open and Nifty around 130 pts
Adani Enterprises and Adani Ports shed 10% each at open along with HDFC Life and UPL trading in red
Geojit Financial Services on today's market: FIIs will have to invest in India if they are to benefit from the India Growth Story
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: Union Budget 2023 turned out to be excellent from the market perspective. Fiscal prudence, the clear glide path for fiscal consolidation, massive capex of ₹10 lakh crores, relief to income taxpayers, credible growth and tax projections for FY24 and above all the growth orientation of the Budget make it market-friendly. The excessive volatility triggered by the crash in Adani stocks will die down after some time. FIIs will have to invest in India if they are to benefit from the India Growth Story. Meanwhile, the situation in the mother market of the US is slowly improving. The expected reduction in rate hike to 25bp and the slightly less hawkish commentary are positive for global equity markets. Investors may do calibrated buying in high-quality large-caps. IT and capital goods stocks are on a strong wicket.
Sensex is in the flat territory at the start of the preopen session; Adani Enterprises will be in focus
LKP Securities - Union Budget 2023-2024 report
Ø A Pro-Growth Budget focussed on inclusive growth with tax sops (for Middle Class & Senior Citizens) and increased Outlay on Agriculture, Infrastructure, Railways & Energy Transition aimed at a force multiplier impact on the Economy.
Ø In a slowing world experiencing recessionary trends, the Budget's thrust on the Digital Ecosystem has clearly been a defining feature to fix several structural issues.
Ø Union Budget adheres to Fiscal Prudence and Market Borrowings as well as the estimated Fiscal Deficit is in line with our expectations.
Ø Measures to strengthen ease of doing business in Gift City also includes recognising offshore derivative instruments as valid contracts.
Ø Budget's mega push on Capital Expenditure at a time when Private Sector capex is showing signs of a pick up spells good times ahead for several Infrastructure Companies in the listed space.
Ø No Change in Capital Gain Tax on Equities.
Biocon pares 10 pc stake in arm Syngene International for ₹2,240 cr
Drugmaker Biocon Ltd on Wednesday divested 10 per cent stake in its research arm Syngene International for ₹2,240 crore through the open market transactions.
The buyers of the shares include -- Government of Singapore, Abu Dhabi Investment Authority, Monetary Authority of Singapore, ICICI Prudential Mutual Fund, Morgan Stanley Asia Singapore Pte and Norges Bank on account of the government pension fund global, among others.
According to the block deal data available with the BSE, Biocon, the promoter of Syngene International, sold a total of 4,00,00,000 shares, amounting to 9.96 per cent stake in the company.
The shares were offloaded in 29 tranches by Biocon Ltd.
The shares were sold at an average price of ₹560 apiece, taking the transaction value at ₹2,240 crore.
Post the latest transaction, Biocon's shareholding has reduced to 54.6 per cent from 64.56 per cent stake in the company. Biocon had offloaded a 5.4 per cent stake in Syngene International in September last year . (PTI)
Japan's Nikkei rises as tech stocks track Nasdaq higher
Japan's Nikkei share average rose slightly on Thursday, led by technology heavyweights after the Nasdaq jumped overnight, while a stronger yen weighed on exporters and limited the index's advance.
By 0217 GMT, the Nikkei index was up 0.2% at 27,394.52. Of the Nikkei components, 50 stocks rose, 174 fell and one traded flat.
"The Nikkei was lifted by technology stocks, but overall the market was not strong," said Chihiro Ohta, assistant general manager at the investment research and investor services at SMBC Nikko Securities.
The S&P 500 and the Nasdaq closed sharply higher overnight after Federal Reserve Chair Jerome Powell acknowledged that inflation was starting to ease, in remarks he made following a quarter-point rate hike by the U.S. central bank.
Uniqlo brand owner Fast Retailing rose 1.81% and was the biggest boost to the Nikkei, followed by chip-related Tokyo Electron and Advantest, which rose 2.97% and 3.06%, respectively. (Reuters)
Ambuja Cements stock under F&O ban on NSE today
Only one stock has been put under the ban for trade on Thursday, February 2, 2023 under the futures and options (F&O) segment by the National Stock Exchange (NSE). The counter has been put on ban under the F&O segment as it has crossed 95% of the market-wide position limit (MWPL), as per the NSE.
Cement maker Ambuja Cements stock is the one that is a part of the F&O ban list for today. The NSE updates the list of securities in F&O ban for trade every day. (Read More)
Back Stocks to Watch: Adani Enterprises, Britannia, Maruti, Syngene Int, LIC, TVS, HDFC Life, Tata Motors, Ashok Leyland, Tata Chemicals, Raymond and Mahindra Logistics
HDFC, Titan, Tata Consumer, Dabur India, Zydus, Berger Paints, Max Healthcare, Apollo Tyres, and Bajaj Electricals will be among the stocks in focus as they declare their December quarter earnings today. (Read More)
Car sales kick-start year 2023 with top gear
Car sales in 2023 got off to a good start with auto majors such as Maruti Suzuki, Tata Motors, M&M Ltd, TKM, Kia India and Hyundai, reporting growth in vehicle sales number in January.
However, MG Motor and Honda saw decline in their sales volume during the same period.
On Wednesday, the country's largest carmaker Maruti Suzuki India reported a 12 per cent increase in total sales at 1,72,535 units in January.
The company had sold a total of 1,54,379 units in the year-ago period, Maruti Suzuki India Ltd (MSIL) said in a statement.
Total domestic passenger vehicle sales were at 1,55,142 units as compared to 1,36,442 units in the corresponding period previous year, a growth of 14 per cent, it added.
Maruti Suzuki India Senior Executive Officer Marketing & Sales Shashank Srivastava said the industry began with a low network stock because of high retails in December.
"Therefore, the depleted inventory resulted in slightly muted retails, taking up the network stock to 1.84 lakh units. On the demand side, the enquiries and bookings have been steady despite price hikes done by several OEMs," he noted. (PTI)
Religare Finvest case: Sebi orders attachment of bank, demat accounts of Shivi Holdings
Sebi on Wednesday ordered the attachment of bank and demat accounts of Shivi Holdings to recover ₹5.35 crore in a matter related to fund diversion case of Religare Finvest.
Religare Finvest Ltd (RFL) is a subsidiary of Religare Enterprises Ltd (REL).
The recovery proceedings against Shivi Holdings have been initiated to recover ₹5.35 crore, which includes interests, all costs, charges and expenses etc, the Securities and Exchange Board of India (Sebi) said in the attachment order.
In its notice, Sebi asked all the banks, depositories and mutual funds not to allow any debit from the accounts of Shivi Holdings. However, credits have been allowed.
Further, the market watchdog has directed all banks to attach all accounts, including lockers, of all the defaulter.
Last month, Sebi had ordered banks and depositories to attach bank and demat accounts of erstwhile promoters of Religare Enterprises -- Shivinder Mohan Singh and four other entities to recover ₹32.10 crore in the same matter. (PTI)
India's 1st hydrogen train will come by Dec 2023 on heritage routes: Railway minister Ashwini Vaishnaw
Union Railway minister Ashwini Vaishnaw has said that the most-awaited hydrogen train will be manufactured by 2023. "First, it will run on heritage circuits like Kalka-Shimla and later it will be expanded to other places," Vaishnaw said.
Further speaking over the introduction of hydrogen trains in the country, the minister said, "As the budget focuses on green growth, Railway will also contribute with the hydrogen train which will come by December 2023 and will be designed and manufactured in India. First, it will run on heritage circuits like Kalka-Shimla and later it will be expanded to other places," he marked. (Read More)
Buy or sell: Vaishali Parekh recommends 3 stocks to buy today
Vaishali Parekh of Prabhudas Lilladher has recommended three day trading stocks to buy today, here we list out full details in regard to those intraday stocks:
1] ICICI Bank: Buy at ₹847, target ₹880, stop loss ₹830;
2] L&T: Buy at ₹2145, target ₹2220, stop loss ₹2115; and
3] SBI Card: Buy at ₹739, target ₹767, stop loss ₹728. (Read More)
Adani group company's bonds fall to distressed levels after FPO withdrawal
After withdrawal of Adani Enterprises FPO (Follow-on Public Offer) on Wednesday, Adani group company's bonds fell down to distressed levels. Bonds issued by Adani Green Energy and Adani Ports & Special Economic Zone (APSEZ) received a maximum beating in the global markets.
As per the Trade data, Adani Ports & Special Economic Zone or APSEZ's 3.375% bond due in July 2024 fell the most in global secondary markets as it logged decline to the tune of 20 cents on the dollar to 69.75 cents in investment grade — clocking biggest loss on Wednesday session. Likewise, four more bonds issues by Adani Ports & Special Economic Zone plunged to distressed levels on Wednesday as they fell to 69 cents or lower. (Read More)
Meta posts lower Q4 profit, announces huge stock buyback
Facebook parent company Meta posted lower fourth-quarter profit and revenue on Wednesday, hurt by a downturn in the online advertising market and competition from rivals such as TikTok. But the company's stock soared in extended trading, as its revenue beat Wall Street's muted expectations and the Menlo Park, California-based company announced a $40 billion stock buyback.
This is the third consecutive quarter of revenue decline for the tech giant, which laid off 11,000 workers, or about 13% of its workforce, in November. CEO Mark Zuckerberg blamed the layoffs on aggressive hiring during the pandemic, when Meta's business boomed because people were stuck at home, scrolling on their phones and computers, glued to social media. But as the lockdowns ended and people started going outside again, revenue growth began to falter. (Read More)
Many more PLIs in the pipeline, says Piyush Goyal
The record capex push in the union budget will drive growth and create jobs, commerce minister Piyush Goyal said in a media interaction, adding that “many" production linked incentives (PLIs) are in the pipeline and they would be announced after getting cabinet approval on a regular basis. Edited excerpts:
Back Angel tax may trim foreign funding in Indian startups
Indian startups raising capital from foreign investors such as SoftBank, Sequoia Capital, Prosus, Tiger Global, KKR and Blackstone will now have to pay angel tax in a move that could squeeze funding into the sector facing a liquidity crunch and prompt more startups to shift overseas.
Finance minister Nirmala Sitharaman said in the budget speech that non-residents will now come under the purview of Section 56(2) VII B, also known as angel tax, which was introduced in 2012 as an anti-abuse measure aimed at tax avoidance. (Read More)
Adani Enterprises abandons FPO in surprise U-turn
Gautam Adani's flagship firm called off its $2.5 billion share sale in a dramatic reversal on Wednesday as a rout sparked by a U.S. short-seller's criticisms wiped billions more off the value of the Indian tycoon's stocks.
The withdrawal of the Adani Enterprises share offering marks a stunning setback for Adani, the school dropout-turned-billionaire whose fortunes rose rapidly in recent years in line with the stock values of his businesses.
"Today the market has been unprecedented, and our stock price has fluctuated over the course of the day. Given these extraordinary circumstances, the company’s board felt that going ahead with the issue will not be morally correct," Adani said.
"Our balance sheet is very healthy with strong cashflows and secure assets, and we have an impeccable track record of servicing our debt. This decision will not have any impact on our existing operations and future plans," the billionaire added in a statement to Indian exchanges.
Adani, whose global business interests span ports, airports, mining, cement and power, is battling to stabilise his companies and defend his reputation. (Reuters)
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