PremiumMost markets ended in red on Thursday after Fed Chair Jerome Powell hinted the Fed would raise interest rates more in the future. Korea, Mainland China and Hong Kong closed lower today, while the European market also traded in red in the morning session.
Indices felt the pressure of the Fed's hawkish statements on future interest rates on Thursday but cut some of their losses towards the end flat.
Sensex which was down 250 points intraday closed 70 points lower at 60,836. Nifty shed 30 points to defend the 18,000 mark and closed at 18,052.
PSU Bank index had a stellar day and gained more than 2%. IT, Consumer Durable and Auto index dragged in today's session.
Among stocks, SBI, Titan, UPL and Bharati Airtel had a decent run today, while Tech Mahindra, Hindalco and Powergird struggled throughout the session.
Most markets reacted sharply to U.S. Federal Reserve Chair Jerome Powell's hawkish comments after a fourth straight 75-basis-point rate hike and closed lower.
Japan's Nikkei remained closed for a holiday. South Korean shares fell on Thursday as the benchmark KOSPI fell 0.33%. Losses were capped by battery manufacturers on solid earnings.
Hong Kong and China stocks fell on Thursday after a two-day rally as rising COVID-19 cases in China fanned concerns about a further slowdown in global economic growth.
The Hang Seng index dropped 3.1%. In China, the blue-chip CSI300 index fell 0.8%, while the Shanghai Composite Index lost 0.2%.
European shares also opened lower on Thursday after investors lost any hopes of a downshift in central banks' aggressive fight against inflation. The pan-European STOXX 600 dropped almost a per cent in the morning trading.
Investors have wiped about $7 billion off Saudi National Bank’s market value amid growing concern after the lender announced plans to purchase a stake in Credit Suisse Group AG a week ago.
The Saudi lender, which is 37% owned by the kingdom’s sovereign wealth fund, is set to become one of the Swiss bank’s biggest investors in its first major international acquisition. It’s poised to own a stake of 9.9% if it participates in Credit Suisse’s rights offering, after agreeing to buy shares for about 1.17 billion Swiss francs ($1.16 billion).
Credit Suisse plans to raise 4 billion francs through a rights issue and selling shares to investors including SNB. The overhaul is an urgent attempt to restore credibility at the bank after a succession of big losses and management chaos shattered its status as one of Europe’s most prestigious lenders. (Bloomberg)
Cognizant's September 2022 quarter revenue growth of 5.6% was below guidance of 7.5-8.5% as execution challenges hit performance. Growth in key verticals—financial services and healthcare—has slowed down to low-to-mid single digits, as per a report by brokerage and research firm Kotak Securities.
“The company has cut revenue growth guidance once again to 7% in c/c for CY2022E from 8.5-9.5%. Infosys is catching up with Cognizant (CTSH) in size, with the gap between the two down to just 6% in revenues. The company has ceded wallet share in key verticals. Not much read-through for other IT services companies from these results," the note stated.
Cognizant has enjoyed a comfortable lead over Infosys in revenues, as per the brokerage. That lead is narrowing, with the gap in revenues between the two companies down to just 6.6%. (Read More)
India's iron ore exports dropped to "nearly zero" in October, and overseas shipments of the steelmaking raw material are expected to continue to languish due to higher export taxes and lower demand from China, a senior industry official said on Thursday.
India in May raised the export tax on low-grade iron ore lumps and fines - with iron content below 58% - to 50% from zero, and hiked the duties on pellets to 45% from zero, as part of efforts to meet rising local demand.
"In October, exports were nearly zero, and it will be so while the duty remains," R.K. Sharma, secretary-general of the Federation of Indian Mineral Industries (FIMI), told Reuters in an interview.
Other than New Delhi's higher export taxes, an economic slowdown in China, India's top buyer of iron ore, would hit overseas shipments of the steelmaking ingredient, Sharma said. (Reuters)
Mortgage lender HDFC Ltd on Thursday said its consolidated net profit increased by 24% to ₹7,043 crore in the September 2022 quarter.
It had reported a ₹5,670 crore net profit in the year-ago period, HDFC said in a regulatory filing.
Its total income on a consolidated basis rose to ₹43,927 crore in the said quarter from ₹38,603 crore a year ago.
On a standalone basis, its net profit increased by 18% to ₹4,454 crore from ₹3,780 crore a year back.
The total income (standalone) rose to ₹15,036 crore from ₹12,226 crore in the same quarter last year. (PTI)
Hindustan Petroleum Corporation Ltd (HPCL) on Thursday reported a second straight quarterly loss as it held prices of petrol, diesel and LPG despite rising costs.
The company registered a net loss of ₹2,475.69 crore in July-September, according to a company's filing with the stock exchanges.
HPCL had posted ₹1,918.89 crore net profit in the same period a year back.
Revenue was up 30 per cent to ₹1.13 lakh crore. (PTI)
The Asia Pacific region is facing three main risks, including due to global financial tightening and a slowdown in China, according to an IMF official.
Shanaka Jayanath Peiris, Division Chief of Regional Studies Division, Asia Pacific Department at the IMF, also said that currencies in the region have depreciated sharply while public debt ratios have increased.
"We have identified three main risks to the region -- global financial tightening, Ukraine-Russia war, which has raised commodity prices, but (has) also slowed external demand, particularly from Europe and the slowdown in China," Peiris told PTI.
He was speaking on the sidelines of the NSE–IMF Seminar on Regional Economic Outlook for Asia-Pacific here on Wednesday. (PTI)
Cholamandalam Finance: Robust growth in Disbursement; Improved Outlook!
BUY with TP of ₹845
With the improved outlook for growth across the segments, we increase our FY23E and FY24E earnings estimates by 0.3% and 1.5%, respectively to factor in AUM growth with a focus on high-yielding segments. We update our target multiple to 4.75x envisaging a further diversified loan book (which would create the next legroom for growth for the company) and improved growth outlook for the vehicle segment (driven by improving CV and Passenger Vehicle sales). With this improved outlook, we revise our rating on the stock from HOLD to BUY with a target price of 845/share (4.75x FY24 P/ABV), implying an upside of 13% from the CMP.
Karnataka Bank: Beat in Expectations on All Fronts; Poised for Re-rating
BUY with TP of ₹156
The management commentary on the expectation of robust loan growth with a strong credit pipeline, sustaining NIM at 3.5%, continuous improvement in the asset quality, and stable CAR has been encouraging. With improving asset quality and the management’s guidance for further improvement in G/NNPA, NIMs, slippages, and an overall 15% growth in loan book, we believe KBL commands re-rating and better valuation. However, we would monitor the company’s performance closely to see if it achieves guided performance in a sustainable manner. Thus, considering the above factors, we change our rating on the stock from HOLD to BUY with a revised target price of ₹156/share (~0.6x FY24E ABV), implying an upside of 40% from the CMP.
Adani Wilmar Ltd on Thursday reported a 73% slump in the second quarter profit, as the Fortune cooking oil maker reeled under dull demand from rural areas and wrestled with industry-wide input cost inflation. The company's consolidated net profit for the second quarter ended September 2022 or Q2 FY23 fell to ₹48.7 crore from ₹182 crore a year ago.
Adani Wilmar, a joint venture between Indian conglomerate Adani Group and Singapore's Wilmar Group, saw revenue from operations climb more than 4% year-on-year (YoY) to ₹14,150 crore as against ₹13,558 crore. The growth pace has been dragged by a decline in mainstay edible oil. Meanwhile, its total expenses rose to ₹14,149.6 as compared to ₹13,354 crore in the corresponding quarter of the previous fiscal. (Read More)
Gujarat will go to polls in two phases on December 1 and 5 with the counting of votes on December 8 along with that of Himachal Pradesh The poll panel last month announced the schedule for Himachal Pradesh Assembly elections. Catch all the live updates
The initial public offering (IPO) of specialty chemical manufacturer Archean Chemical Industries Ltd will open for public subscription next week on Wednesday, November 9, 2022. The three-day issue will conclude on Friday, November 11. The bidding for anchor investors will open on November 7. The company has fixed a price band of ₹386 to ₹407 per share for its initial share sale.
As per market observers, Archean Chemical shares are commanding a premium (GMP) of ₹80 in the grey market today. The shares of the company are expected to list on leading stock exchanges BSE and NSE on Monday, November 21, 2022. (Read More)
SIS Ltd has posted a marginal decline of 1.46 per cent in net profit at ₹67.4 crore for the second quarter ended September 30.
The net profit of the company in the July-September quarter of the preceding fiscal stood at ₹68.4 crore.
Its revenue for the quarter increased by 14 per cent to ₹2,767.7 crore, from ₹2,430.9 crore a year ago, the firm engaged in security, facility management and cash logistics solutions said in a statement on Thursday.
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) or operating profit declined by 11 per cent to ₹109.8 crore as of September 30 this fiscal, from ₹123.1 crore in the same period a year ago. (PTI)
FSN E-commerce Ventures Ltd, which runs the online fashion retailer Nykaa, on Thursday announced that the company has received approval from shareholders on the bonus shares issue and new employee stock options (ESOP) and employee stock unit plan (RSU) with an overwhelming majority.
“The board on October 3, 2022, approved Bonus Issue of Equity Shares in the proportion of five fully paid-up Equity Shares for every one fully paid-up equity share each held by the shareholders of the company. Pursuant to this, the company held a postal ballot for the issue of Bonus Shares out of its securities premium reserves from October 4, 2022 to November 2, 2022. The company received an overwhelming response from its shareholders and witnessed 100% of the voting in favour of the Bonus Resolution," Nykaa informed in an exchange filing today. (Read More)
Indian ace investor and stock market trader Vijay Kedia has increased his stake in his portfolio stock Elecon Engineering Company Ltd during the second quarter of the current fiscal (Q2 FY23) as his stake rose from what he had held in the previous quarter of June 2022.
As per the recent shareholding data released for the quarter ended September released on the BSE, the veteran investor holds 1.94% stake or 21,75,000 equity shares in the company as of September 2022, which is higher from 1.85% stake or 20,75,000 shares that Vijay Kedia had held in the previous quarter of April-June 2022 period. (Read More)
Indian banks may rely more on raising funds through certificates of deposits for the rest of the year, as credit demand remains strong and inflows from retail deposits lag, leading to tighter liquidity in the banking system, analysts said.
Banks have raised over 3.51 trillion Indian rupees($42.41 billion) through certificate of deposits (CDs)in April-October, 22% higher than the 2.87 trillion rupees raised in 2021-2022, data from Prime Database showed. Mutual funds are the biggest buyers of CDs.
"CD issuances should rise, especially now because we are entering into a busy credit season, so liquidity mismatch in the system should only increase," said Anil Gupta, senior vice president and company group head for financial sector ratings at ICRA. In that scenario, CDs will be an important source of funds for banks. (Reuters)
Cholamandalam Investment and Finance Company (CIFC IN) – Akshay Ashok – Research Analyst – Rating: BUY | CMP: Rs745 | TP: Rs792
Q2FY23 Result Update - Strong AUM Growth, New Businesses Ramping Up Very Well
Overall, the company is expected to deliver strong return profile for FY24 (19.7%/2.9% RoE/RoA) and hence would continue to command rich valuations. We maintain our estimates. We value CIFC at 4.2x PABV Sep’24E and maintain our price target of Rs792. Maintain ‘BUY’.
Max Healthcare Institute (MAXHEALT IN) – Param Desai – Research Analyst – Rating: BUY | CMP: Rs465 | TP: Rs500
Q2FY23 Result Update - In line EBITDA; aided by healthy utilization
We ascribe 24x EV/EBITDA (22x earlier) to hospital segment and 25x EV/EBITDA to diagnostic segment. Maintain ‘Buy’ rating with increased TP of ₹500/share (earlier at ₹427/share), as we roll forward to Sept 2024.
LIC Housing Finance (LICHF IN) – Gaurav Jani – Research Analyst – Rating: ACCUMULATE | CMP: Rs367 | TP: Rs410
Q2FY23 Result Update - Earnings volatility hindering upside
Earnings remain volatile which has weighed on the stock and we trim our multiple from 1.1x to 0.9x. Due to cut in NII we reduce FY23/24/25 earnings by 15%/5%/3%. As we roll forward to Sep’24 ABV our TP is lowered from Rs450 to Rs410. Change rating from BUY to ACCUMULATE.
IT and Consumer Durable indices are under pressure, while PSU Bank index gains.
Asia's largest higher EdTech player upGrad today announced comprehensive plans to merge all its M&As in India into 'One upGrad' and complete the integration process by March to June 2023. All costs restructuring and integration growth capital to be expensed out in FY22 and partly in FY23. (ANI)
Shares of Mahindra and Mahindra Financial Services (MMFS) surged more than 10% on Thursday, a day after the vehicle financing arm of the Mahindra group beat estimates for second-quarter profit and improved its asset quality.
Profit came in at 4.48 billion Indian rupees ($54.08 million) for the three months ended Sept. 30, handily beating analysts' expectations for a profit of 3.9 billion rupees, according to Refinitiv IBES data.
However, profit was still 56.2% lower from year ago due a reversal of impairment provisions recorded.
The lender's asset quality also improved sharply, with gross stage 3 loans -- loans overdue for over 90 days -- easing to 6.7% at September-end from 8% at end of June. (Reuters)
Shares of Karnataka Bank continued their bullish momentum with the stock surging for the second straight day on Thursday after reporting an all-time high profit during the second quarter of the current fiscal year or Q2 FY23. Net profit soared to ₹412 crore, its all-time high, in the quarter ended September 30, from ₹126 crore a year earlier.
"A steep rise in margins and negative provisions led to Karnataka Bank’s Q2 strong profitability, with its RoA at 1.7%. With most pandemic related stress already recognised/re-structured, the focus now shifts toward growth. Key positives were 1) strong traction in retail loans, 2) moderation of slippages and 3) strong margin improvement. With credit growth picking up and moderating credit costs, earnings are expected to normalise in the medium term," said domestic brokerage and research firm Anand Rathi. (Read More)
India's coronavirus infection surges to 4,46,57,149 after 1,321 people tested positive in 24 hours, according to the Union Health Ministry data updated on Thursday. The active cases declined to 16,098. A decrease of 145 cases has been recorded in the active Covid-19 caseload in a span of 24 hours. The number of people who have recuperated from the disease surged to 4,41,10,590, while the case fatality rate was recorded at 1.19%. (Read More)
Kotak Mahindra Bank Ltd, India's fourth-largest private lender, sees tepid demand for corporate credit even though conditions to lend to companies have improved, a top company executive told Reuters in an interview.
The credit environment has never looked better, KVS Manian, group president in charge of wholesale banking, institutional & investment banking and wealth management business at Kotak Mahindra Bank, said on Wednesday. But demand from corporate borrowers is still not very strong, he said.
Indian corporations have deleveraged their balance sheets significantly over the past few years by raising equity and refinancing high-cost debt. This has opened opportunities for banks, which have seen growth coming mostly from retail lending in recent years. (Reuters)
Activity in India's dominant services industry gathered pace in October despite high inflationary pressures, underpinned by robust domestic demand, leading to the second fastest hiring pace in over three years, a private survey showed.
The S&P Global India services Purchasing Managers' Index edged up to 55.1 in October from September's six-month low of 54.3, easily beating the Reuters poll expectation for 54.6 and above the 50-mark that separates expansion from contraction for the fifteenth month. (ReadMore)
Oil slipped on Thursday as a U.S. interest rate hike pushed up the dollar and fuelled fears of a global recession, although losses were capped by concerns over tight supply.
Brent crude shed 37 cents, or 0.4%, to $95.79 a barrel at 0426 GMT, while U.S. West Texas Intermediate (WTI) crude futures dipped 60 cents, or 0.7%, to $89.40.
Both benchmarks settled up more than $1 on Wednesday, aided by another drop in U.S. oil inventories, even as the Fed boosted interest rates by 75 basis points and Chair Jerome Powell said it was premature to think about pausing rate increases. (Reuters)
The initial public offering of Fusion Micro Finance was subscribed 12 per cent on the first day of subscription on Wednesday. The initial public offering (IPO) of microlender Fusion Microfinance opened for subscription on November 2, 2022 and the issue, with a price band of ₹350-368 a share, will conclude on Friday, November 4, 2022. The company on Tuesday said it has raised a little over ₹331 crore from anchor investors ahead of its initial share sale.
As per market observers, Fusion Microfinance shares are commanding a premium (GMP) of ₹24 in the grey market today. The company's shares are expected to list on stock exchanges BSE and NSE on Tuesday, November 15, 2022. (Read More)
Tirthankar Das, technical & derivative analyst, retail, Ashika Stock Broking: On the technical front, Nifty formed a bearish candle on the daily chart following a Doji indecisive candle the previous session, suggesting of a possible selling pressure might develop near 18,150-18,200 levels. However temporary breather from here on can be expected though such price structure should not be construed as negative. Instead, dips should be used as buying opportunity as it seems unlikely that Index might breach the support level of 17500. Overall positive structure in Index remains with an expectation that it would head towards 18600. Positive outlook in the Index is based on the observation that recent Nifty has provided a breakout from past three week’s consolidation (17500-16900) along with broader participation and relative outperformance against global peers. Elevated support base for the market is at 17500 as it happens to be the 50 days EMA. The momentum indicator RSI (relative strength index) is above the 60-level mark, which further reaffirms that positive momentum of the index for the short to medium term is likely to remain. During the day index is likely to open on a negative note due to negative global cues as Fed pumped up its benchmark interest rate and hinted that it could soon reduce the size of its rate hikes rather than a pause. Hence lower levels of 17800-17835 should provide some cushion for the market.
LKP Securities on Bikaji Food International Ltd: BFIL, with its strong market position across its diversified product portfolio, strong distribution, strategically manufacturing facilities, strong brand visibility and consistent financial performance is in a good position with healthy visibility going ahead. We recommend investors to SUBSCRIBE to the IPO of BFIL
Geojit Financial Services on Global Health Ltd: Considering its strong brand value, new hospital addition, rise in ARPOB, pick up in medical tourism, increasing affordability for healthcare services and promising industry outlook, we assign a “Subscribe" rating on a short to medium term basis.
The initial public offering of DCX Systems, manufacturer of cables and wire harness assemblies, received 69.79 times subscription on the final day on Wednesday. The IPO received bids for 101.27 crore shares against 1.45 crore shares on offer, according to NSE data.
As per market observers, DCX Systems shares are commanding a premium (GMP) of ₹74 in the grey market today. The shares of the company are expected to list on stock exchanges BSE and NSE on Friday, November 11, 2022. The finalisation of the share allotment of the DCX Systems IPO is expected to take place on Monday, November 7, 2022. Link Intime India Private Ltd is the registrar of the share sale. (Read More)
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: The Fed commentary after the expected 75bp rate hike, particularly Jay Powell’s remark that the terminal rate is likely to be higher than thought earlier, disappointed markets which resulted in a sell-off in US markets. But it is important to note that when asked about moderating rate hikes he said, “ that time is coming and it may come as soon as the next meeting or the one after that." So, it is possible that the markets can again bounce back since the economy continues to be strong and unemployment is at record lows indicating that a recession is not imminent. India’s outperformance is likely to continue since leading indicators like credit growth, capital expenditure and auto sales point to robust economic recovery.
FPI buying of ₹12610 crores during the last 5 trading sessions can provide support to the market at lower levels. Large-cap banks, capital goods and the premium auto segment can be bought on declines.
Relaxo Footwears Ltd on Wednesday reported a decline of 67.38% in its net profit at ₹22.40 crore for the second quarter ended September 2022 on account of volume decline and high raw material prices.
It had posted a net profit of ₹68.69 crore in the July-September quarter a year ago fiscal, Relaxo Footwears said in a regulatory filing.
Its revenue from operations was down 6.26% to ₹669.65 crore during the period under review as against ₹714.43 crore in the corresponding period of the previous fiscal.
"This was a result of a decline in volumes of the categories serving the mass segment who were under inflationary pressures with reduced affordability," its earning statement said. (PTI)
The IPO plans of State Bank of India's mutual fund subsidiary has been shelved for the time being. In December 2021, SBI had announced its plan to offload some stake in SBI MF through an IPO. SBI currently holds 63% stake in its mutual fund subsidiary while 37% stake is held by AMUNDI Asset Management through a wholly-owned subsidiary, Amundi India Holding.
Initially, this 37% holding was held by Societe Generale Asset Management S.A. (“SGAM"), a subsidiary of Societe Generale S.A (“SG") which was transferred to Amundi in June 2011. (Read More)
Asian shares slipped on Thursday after the U.S. Federal Reserve shifted the outlook on tightening from short and sharp to long and high, putting to rest any thought of a near-term pause.
Tokyo is closed for holiday. South Korean shares fell nearly 1%.
Investors were initially cheered that the Fed at least opened the door to a slowdown in the pace of hikes after raising interest rates 75 basis points to 3.75-4.0%, by noting that monetary policy acted with a lag.
But Chair Jerome Powell soured the mood by saying it was "very premature" to think about pausing and that the peak for rates would likely be higher than previously expected.
"The Fed is now more comfortable with taking smaller rate increases for a longer period than delivering larger increases now," said Brian Daingerfield, an analyst at NatWest Markets. (Reuters)
The Bank of England is widely expected to hike its key interest rate on Thursday by the biggest amount since 1989 as it bids to cool sky-high British inflation.
Following a regular meeting, the BoE is seen lifting borrowing costs by 0.75 percentage points to three percent, according to market consensus, which would be the highest level since the 2008 global financial crisis.
Some analysts, however, are predicting a rise of one percentage point, also a 33-year high.
The move would mirror aggressive rate-tightening by central banks worldwide as economies battle the highest prices in decades. (Read More)
The wholesale price index (WPI) inflation has softened to 10.7 per cent in September 2022 from its peak of 16.2 per cent in June 2022, Saket Dalmia, president, PHD Chamber of Commerce and Industry, said.
The president of the industry body on Wednesday said calibrated efforts undertaken by the government and Reserve Bank of India (RBI) have significantly impacted the escalation in the wholesale prices.
Though RBI took an aggressive move to tame the inflation and increased the repo rate by 190 bps during the last six months in May 4.4 per cent to 5.9 per cent in October, gross domestic product (GDP) growth rate has also been maintained with a lesser deceleration as compared with many economies, said Dalmia. (ANI)
Adani Enterprises, Bank of India, HDFC, HPCL, Vodafone Idea, UCO Bank and Raymond will be among the stocks in focus as they declare their September quarter earnings today. (Read More)
Cement maker Dalmia Bharat Ltd on Wednesday reported a 76.84% decline in consolidated net profit at ₹47 crore for the quarter ended September.
The company had posted a net profit of ₹203 crore during the July-September quarter a year ago, Dalmia Bharat said in a regulatory filing.
Its revenue from operations increased 15.11% to ₹2,971 crore in the second quarter of the current fiscal. In the year-ago period, the same stood at ₹2,581 crore.
Dalmia Bharat's total expenses rose nearly 29 per cent to ₹2,980 crore in the latest quarter under review.
Sales volume increased 13.72 per cent in the September quarter to 5.8 Million Tonnes (MT) compared to the year-ago period. (PTI)
In an effort to reduce costs, Elon Musk plans to cut around 3,700 workers at Twitter, or 50% of the workforce, according to Bloomberg sources. Twitter's new owner intends to inform impacted employees on November 4. The remaining staff will be asked to go to offices as Musk also plans to alter the company's current work-from-anywhere policy. Sources say that some exceptions may still be granted.
Musk has to find methods to reduce the expenditures of a company that he claims he overpaid. In April, just as markets began to decline, the billionaire committed to paying $54.20 per share. He then allegedly claimed that the corporation had deceived him about the popularity of bogus accounts while he tried for months to back out of the transaction. In recent weeks, Musk gave in and decided to close the purchase under the predetermined terms after the San Francisco-based company had filed a lawsuit to ensure Musk fulfils his commitment. (Read More)
Bikaji Foods International Ltd's initial public offering (IPO) will open for public subscription on Thursday, November 3, 2022 and the three-day issue conclude on Monday, November 7, 2022. The price band has been fixed in the range of ₹285 to ₹300 per share for its ₹881 crore-initial share sale.
Bikaji Foods IPO consists of 2.93 crore shares in the public issue, which will be a pure offer for sale (OFS) by its promoters and existing shareholders. Since the IPO is completely an OFS, the company will not receive any proceeds from the issue. At the upper end of the price band, the IPO is expected to fetch ₹881 crore.
As per market observers, Bikaji Foods shares are commanding a premium (GMP) of ₹71 in the grey market today. (Read More)
Indian government bond yields are expected to trend higher in early trades on Thursday, tracking their U.S. peers, after the U.S. Federal Reserve stuck to its hawkish tone on monetary policy, dampening hopes of a moderation in rate hikes.
The benchmark 10-year yield is likely to be in a 7.41%-7.46% band, a trader with a private bank said. The yield ended at 7.4044% on Wednesday.
"There was an initial dovish reading of the Fed's statement, but (Fed Chair Jerome) Powell made it amply clear in his remarks at the press conference that there will still be more rate hikes, even though 75 bps moves are less likely to be repeated," the trader said. (Reuters)
State-run oil and gas companies have been ordered back to the drawing board after failing to come up with “comprehensive" plans to monetize their assets.
Earlier this year, these marketing companies -- HPCL, GAIL, and Indian Oil-- told the petroleum ministry that monetizing assets such as oil and gas pipelines was not a viable proposition, arguing it was an expensive way to raise capital.
Following this, the government agreed to shelve the plan but told them to come up with alternatives within a month.
Two officials aware of the development said the ministry eventually received a few alternative proposals but did not find them comprehensive or practical and has now asked the companies to come up with “more comprehensive" proposals. (Read More)
Mahindra & Mahindra Financial Services (Mahindra Finance) on Wednesday reported over a 55% decline in its net profit at ₹492 crore in the quarter ended September 2022.
In the year-ago same quarter ended September 2021, it had posted a net profit of ₹1,103 crore.
Total income increased 3 per cent to ₹3,029 crore during the quarter under review against ₹2,951 crore during the corresponding quarter last year, it said in a release.
The non-banking finance company focused on providing financial services in the rural and semi-urban markets said in Q2FY22 it had witnessed a significant reversal of impairment provisions due to improvement in asset quality which had deteriorated during Q1 FY22 during the second wave of Covid-19. (PTI)
With a market valuation of ₹24,962.74 crore, Atul Ltd. is a large-cap company in the chemical industry. The company is an integrated chemical corporation that provides services to around 4,000 customers from 30 different sectors worldwide. One of India's leading integrated chemical firms is Atul. Along with releasing its Q2 results, the company also declared a special interim dividend for its shareholders of ₹7.50 per share. (Read More)
Adani Transmission on Wednesday reported a 32 per cent dip in its consolidated net profit at ₹194 crore in the September quarter compared to year ago, mainly due to adverse forex movement adjustment.
The company explained in a statement that in the second quarter of FY23, consolidated PAT (profit after tax) or net profit of ₹194 crore was lower year on year.
The Q2 number is not comparable on account of adverse forex movement (MTM) of ₹138 crore (mark-to-market adjustment on foreign currency loans) vs ₹6 crore gain in the corresponding quarter of the previous fiscal in the AEML (Adani Electricity Mumbai Ltd) business, the company stated.
The consolidated net profit of the company was ₹289 crore in the quarter ended on September 30, 2021. (PTI)
Reserve Bank of India governor Shaktikanta Das on Wednesday defended the central bank’s actions saying that premature tightening of policy rates would have been very costly for the country.
While acknowledging that RBI was behind the curve to tame inflation, Das said that the monetary policy committee (MPC) did not want to upset the recovery process. “We prevented a complete downward turn of our economy after recording negative growth in FY20-21," said Das in his inaugural speech at a banking conference. “We wanted the economy to safely land in turbulent waters through which the economy has been sailing through the covid period," he added. (Read More)
Global Health Limited, which is set to open its ₹2,206 crore initial public offering (IPO) on Thursday, 3 November, has ₹662 crore from anchor investors.
Medanta operator Global Health Ltd has decided to allocate 1.97 crore equity shares at ₹336 apiece, aggregating the transaction size to about ₹662 crore, according to a circular uploaded on the BSE website.
The anchor investors include--Government of Singapore, Nomura, Axis Mutual Fund (MF), HDFC MF, Aditya Birla Sun Life MF, SBI MF, ICICI Prudential MF, Kotak MF, Max Life Insurance Company and SBI Life Insurance Company are among the anchor investors.
The IPO consists of a fresh issue of equity shares aggregating to ₹500 crore, and an offer for sale (OFS) of up to 5.08 crore equity shares. (Read More)
The rupee depreciated 21 paise to close at 82.80 against the US dollar on Wednesday, tracking a muted trend in domestic equities ahead of the release of the US Fed's policy statement.
At the interbank foreign exchange market, the local unit opened strong at 82.64 and witnessed a high of 82.62 and a low of 82.81.
It finally settled at 82.80 against the American currency, registering a fall of 21 paise over its last close of 82.59. (PTI)
AirAsia Bhd exited the Indian budget airline that carried its name, with its majority Indian partner, Tata Group’s Air India, agreeing to acquire the 16.67% stake the Malaysian carrier still owned in AirAsia India for ₹155.65 crore. According to the share purchase agreement, AirAsia India can continue to use the ‘AirAsia’ brand name for 12 months, the Malaysian company said on Wednesday.
In a separate statement, Air India said that AirAsia India would be merged with Air India Express in about 12 months. The merged entity will be rebranded as Air India Express. (Read More)
U.S. stocks ended a volatile session lower while Treasury yields were up Wednesday as the U.S. Federal Reserve delivered three-quarters of a percentage point interest rate hike and Fed Chairman Jerome Powell said it was too soon to speculate over a pause in rate hikes.
Powell, in remarks during a news conference after the announcement, said "it is very premature to be thinking about pausing" on the effort to lift the federal funds target rate.
The Fed has been aggressively raising rates in order to bring down inflation, and investors have been speculating over when it could get less aggressive in its tightening cycle.
The Dow Jones Industrial Average fell 505.44 points, or 1.55%, to 32,147.76, the S&P 500 lost 96.41 points, or 2.50%, to 3,759.69 and the Nasdaq Composite dropped 366.05 points, or 3.36%, to 10,524.80. (Reuters)
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