PremiumShares of some listed Adani group companies, including its flagship, rose in on Tuesday while others fell further. Moreover, as per the data available from the stock exchanges, seven Adani group stocks have triggered regulatory surveillance actions during various periods since 2019, on account of both unusual price rises and falls and high promoter pledges.
Despite Adani Group's flagship company Adani Enterprises bouncing back on Tuesday, Indian benchmark indices closed in the red as weak earning reports for some companies played a spoilsport.
The indices kept see-sawing with a small optimism among investors that the Reserve Bank of India will pause rate hikes after Wednesday.
The Nifty 50 index closed 43 points lower at 17,721, while the S&P BSE Sensex shed 220 points to end at 60,286. Both benchmarks had risen 0.25% during the session.
FMCG and Auto stocks dragged in today's session with most other indices ending in the red. Metal indices remained volatile despite Adani Enterprises with Tata Steel and Hindalco shedding around 5% and 4%, respectively.
Apart from Hindalco and Tata Steel, ITC, Hero MotoCorp and Sun Pharma also struggled in today's session. Adani Enterprises jumped 15% followed by Dr Reddy's at 2%. Adani Ports was up 9% intraday but closed around 2% higher after its quarterly earnings report showed a 13% dip in profit.
Japan's Nikkei index pared gains to inch lower on Tuesday, as investors awaited a speech by U.S. Federal Reserve Chairman Jerome Powell, while a slew of corporate earnings rendered the market directionless. The Nikkei share average ended 0.03% lower snapping a fourth straight winning session, after trading most of the session in positive territory. The broader Topix rose 0.21%.
Chinese blue chips inched higher as some investors bought the dip after a three-session slide amid hopes for a de-escalation in Sino-U.S. tensions. China's blue-chip CSI 300 Index closed up 0.2%, and the Shanghai Composite Index added 0.3%. The Hang Seng Index ended 0.4% higher and the Hang Seng China Enterprises Index advanced 0.6%.
European shares were subdued on Tuesday as prospects of the global interest rate-hiking cycle lasting for longer continued to sap sentiment, while oil major BP led energy stocks higher. The pan-European STOXX 600 was flat at the start after logging its steepest single-day fall in three weeks on Monday on rate hike jitters.
UK's FTSE 100 rose on Tuesday as bumper results from oil giant BP and a rally in energy stocks helped buck the gloom in global markets as investors worried about the prospect of higher interest rates. The blue-chip FTSE 100 rose in the morning session.
Amid a political furore over a meltdown in the Adani group shares, stock market data shows it is not only the plunge now but the sharp surge of the past also drew regulatory attention and enhanced surveillance.
As per the data available with the stock exchanges, seven Adani group stocks have triggered regulatory surveillance actions during various periods since 2019, on account of both unusual price rise and fall and high promoter pledge. Six listed Adani scrips are under ASM (Additional Surveillance Mechanism) as of February 3, 2023.
Adani group stocks have taken a huge beating on the bourses, losing billions of dollars in market value, after US-based activist short-seller Hindenburg Research made a litany of allegations, including fraudulent transactions and share price manipulation at the Gautam Adani-led group.
The Adani group has dismissed the charges as lies, saying it complies with all laws and disclosure requirements. The opposition, however, has been calling it a big fraud.
The capital markets watchdog, the Securities and Exchange Board of India (Sebi), has also been facing criticism from some opposition leaders that it has not intervened in the matter.
Sebi has said it is committed to ensuring the stock market's integrity and all necessary surveillance measures are in place to address any excessive volatility in individual shares. (PTI)
Fast Moving Consumer Goods (FMCG) are the focus of Kohinoor Foods Ltd, a small cap company with a market valuation of ₹241.71 Cr. Kohinoor Foods has a market presence nowadays, selling food items such as basmati rice, wheat flour, ready-to-eat curries and meals, simmer sauces, cooking pastes to spices, seasonings, and frozen food in India and more than 60 other countries.
Kohinoor Foods has said in a stock exchange filing that “The Board has reviewed the proposal of 'M/s. Vikas Lifecare Limited, for strategic investment, in the Company to the tune of Rs. 250 Crores and accorded its approval to enter into a Memorandum of Understanding with M/s. Vikas Lifecare Limited. An Indian Listed Public Company, with an objective to settle company's bank-debts and future business growth." (Read More)
India's state-run Oil and Natural Gas Corp Ltd will explore investing in gas assets in Argentina, its chairman said on Tuesday.
The company also signed a memorandum of understanding with Argentina's state oil company YPF for hydrocarbon cooperation.
"This is an enabling MoU. They have gas (assets)... so we will explore investing there," the ONGC chairman said at an event in Bengaluru. (Reuters)
The exposure of Indian banks to the embattled Adani Group is "insufficient in itself" to present a substantial risk to the credit profiles of these lenders, Fitch Ratings said in a note on Tuesday.
Investors have been worried about various banks' exposure to the group ever since late January when U.S.-based short-seller Hindenburg Research alleged improper use of offshore tax havens and stock manipulation by the conglomerate. The group has rejected the criticism and denied any wrongdoing.
Fitch estimated that loans to all Adani group entities generally account for 0.8%-1.2% of total lending for Indian banks rated by the agency, equivalent to 7%-13% of total equity.
"Even in a distress scenario, it is unlikely that all of this exposure would be written down, as much of it is tied to performing projects," it said.
Earlier on Tuesday, the ratings agency's unit, CreditSights, said in a separate note that State Bank of India's exposure to the group is "well-manageable" given its strong buffer of provision reserves. (Reuters)
State-owned Canara Bank on Tuesday said the Union Government has appointed K Satyanarayana Raju as its Managing Director and CEO, with immediate effect. He will be replacing L V Prabhakar who demitted office on December 31, 2022. Raju, who is a Physics Graduate, Post Graduate in Business Administration (Banking and Finance) and CAIIB (Certified Associate of Indian Institute of Bankers), had earlier served Canara Bank as Executive Director since March 10, 2021. He has a very rich and vast experience in all segments of banking including Branch Banking, Corporate Credit, Retail Credit, Agri Financing, Credit Monitoring, Credit Recovery, Compliance etc. Also his rich experience and exposure led to digital transformation of banking products and services, the bank said in a release. (PTI)
PVR on Tuesday informed that the Scheme of Amalgamation between INOX Leisure Limited and PVR Limited and their respective shareholders and creditors has become effective upon filing of the certified copy of the Order passed by the National Company Law Tribunal, Mumbai Bench sanctioning the Scheme, with the Registrar of Companies, Mumbai (MCA website) on February 6, 2023 from the Appointed Date of 1st January 2023.
“In addition to the above, in terms of Regulation 42 of SEBI LODR read with the Scheme, and pursuant to power delegated by Board of Directors of INOX Leisure Limited, the “ILL Committee of Board of Directors for Operations" of INOX Leisure Limited in mutual agreement with the Company have fixed February 17, 2023 as the ‘Record Date’ for the purpose of determining the shareholders of INOX Leisure Limited to whom equity shares of the Company would be allotted, pursuant to the Scheme," the multiplex operator informed in the exchange filing. (Read More)
Adani Ports and Special Economic Zone (APSEZ) on Tuesday reported a 12.94 per cent decline in consolidated profit to ₹1,336.51 crore for the third quarter ended December 2022.
The country's largest integrated logistics player had clocked a consolidated profit of ₹1,535.28 crore a year ago, according to a regulatory filing.
Its total consolidated income increased to ₹5,051.17 crore in the December 2022 quarter from ₹4,713.37 crore in the year-ago period.
The company's total expenses in October-December 2022 rose to ₹3,507.18 crore compared to ₹2,924.30 crore in the year-ago period. (PTI)
Ramco Cements reported an 18% fall in quarterly profit on Tuesday as a rise in fuel, power and other input costs outpaced demand at the Indian cement maker.
Net profit after tax for Chennai, Tamil Nadu-based Ramco fell to 673.9 million rupees ($8.15 million) for the third quarter ended Dec. 31, from 825.7 million rupees, a year earlier, according to an exchange filing.
Total expenses climbed 33% to 19.21 billion rupees, led by an increase in power and fuel costs, while the company posted a 29% growth in sale of products.
Ramco sold products worth 19.91 billion rupees in the reported quarter.
Higher global petcoke and coal prices, as well as power and fuel expenses that had crimped margins for cement producers in the second quarter had a lingering impact on their bottomline for the reported quarter as well.
Ramco's rival and India's top cement maker UltraTech Cement also last month reported a 38% slump in profit for the December quarter due to a surge in expenses. (Reuters)
Religare Broking gives BUY for Berger Paints (I) Ltd with CMP (Rs) 556, Target Price (Rs) 766, and Potential Upside 37.7%
Outlook & Valuation: In Q3FY23, Berger Paints numbers were mixed with steady revenue growth but margin was a miss. Going ahead, management is quite positive on the growth prospects and we too remain optimistic from medium to long term led by improving demand for the paint sector on the back of government focus on infrastructure. Also, new launches, market share gains and improvement in product mix would drive both revenue and profit growth. On the financial front, we incorporated the high cost of raw materials of Q3 impacting overall margins of FY23E and added FY25 estimates wherein we expect revenue/PAT to grow at 21%/23.8% FY22-25E. We maintain a Buy rating but have revised our target price downwards to ₹766, giving a PE multiple of 47x FY25E EPS.
Indian IT Tech giant, Infosys is reported to fire 600 freshers who failed in the internal test according to media reports. This comes just after few days after another IT firm Wipro laid off freshers who failed the internal tests.
“I began working at Infosys in August 2022 and was given training for the SAP ABAP stream. Out of 150 in my team, only 60 passed the exam; rest all of us were sacked two weeks ago. From those who joined in July, 85 were terminated out of total 150," the report quoted by Business Today a fresher was saying. (Read More)
Green energy company Goldi Solar has plans to recruit 5,000 people over the next two fiscals in the area of solar manufacturing and after-sales services, company's MD Ishver Dholakiya said.
The Gujarat-based company is in process of investing ₹5,000 crore to expand its module manufacturing capacity to 6 gigawatt (GW).
"Goldi Solar plans to create jobs at the grassroots level. The skill development programme will help the company's vision to recruit over 5,000 people across various functions by FY25," Dholakiya said after signing an agreement with L&T Public Charitable, the philanthropic arm of infrastructure major Larsen and Toubro (L&T).
Goldi Solar has partnered with L&T Public Charitable to train a skilled workforce in solar manufacturing space, a company statement quoted him as saying.
On the partnership, he said the two organizations will be able to increase solar manufacturing's skilled workforce and enhance employability to a great extent. (PTI)
Shares of Tata Steel Ltd were down around 4% in early deals on Tuesday, in response to the company’s December quarter (Q3FY23) earnings, announced after market hours on Monday, which came sharply below consensus estimates. For perspective: Tata Steel’s consolidated earnings before interest, tax, depreciation and amortization (Ebitda) came in at around ₹4,050 crore, a whopping 75% lower year-on-year. After accounting for depreciation, finance expenses and tax outgo, Tata Steel reported a net loss of about ₹2,500 crore last quarter.
So, what led to the disappointment on profitability? The key dampener stemmed from the company’s weak European operations. In fact, on an Ebitda per tonne basis, Tata Steel Europe incurred a loss of ₹7,810 during the quarter. This is against a profit reported in the July-September quarter as well as in the year-ago period. A drop in steel price realisations drove the fall in revenues for Tata Steel’s Europe business. However, this was offset to some extent by higher volumes quarter-on-quarter, though deliveries were lower year-on-year. The company said Ebitda saw margin compression as realisations moved lower even as total costs remain elevated. (Read More)
One 97 Communications aka Paytm share price extended its rally for a second consecutive day on Tuesday. In early trade, the stock struck a 20% upper circuit. While the stock has skyrocketed by over 27% in 2 days. Major brokerages globally have raised their target price for Paytm shares after strong Q3 numbers. Paytm shares are seen to clock triple-digit percentage upside ahead.
Brokerages such as Citi, CLSA, and Goldman Sachs have recommended buying Paytm stock post-Q3FY23 earnings, while BofA maintained its 'neutral' rating on the stock. (Read More)
NCLAT issues notice to bidder Torrent Investments on lender's plea; next hearing on 9 February. Earlier, Reliance Capital lenders have approached the National Company Law Appellate Tribunal (NCLAT) to seek a second round of financial bids for the debt-ridden firm, presently going through the insolvency resolution process.
Vistra ITCL (India) Ltd, one of the members of the Committee of Creditors of Reliance Capital has filed an appeal before the appellate tribunal. On February 2, the Mumbai bench of the National Company Law Tribunal (NCLT) had ruled against holding a fresh round of auction for the takeover of Anil Ambani-promoted Reliance Capital and said the challenge mechanism for financial bids has already concluded. (Read More)
Paytm soared its most on record after Indian media reported the government had banned dozens of Chinese rivals, news that emerged just days after the fintech giant reported narrower losses.
Shares in One 97 Communications Ltd., which is backed by Ant Group Co., soared as much as 20% in early trade. On Monday, the Economic Times reported the government had blocked scores of lending apps including Naspers Ltd.’s PayU and other services linked to China. (Bloomberg)
Given its substantial general provision reserves buffer of 338 billion rupees or 1% of net loans, SBI's entire loan exposure to the Adani Group is quite manageable, according to a report published on Tuesday, February 7 by CreditSights, a division of Fitch Ratings.
“Do not see loan exposure to Adani Group as an issue for the State Bank of India (SBI) given its strong general provision reserves buffer," the note stated. SBI's total exposure to the conglomerate was 0.9% of its total loan book, or around 270 billion rupees, Chairman Dinesh Kumar Khara said on Friday. (Read More)
India's top gas importer Petronet LNG is seeking additional Liquified Natural Gas (LNG) of 0.75 to one million tonnes per annum (mtpa) from Qatar, the company's Chief Executive A.K. Singh said on Tuesday. PNG was also hoping to get an extra 0.6 mtpa from Australia's Gorgon project in 2025-26, Singh said during the India Energy Week conference. (Read More)
Shares of Aditya Birla Group's metals flagship Hindalco Industries Ltd plunged over 3% ahead of its Q3 results that is scheduled this week. The company will report consolidated results on Thursday, 9 February, 2023. Novelis, Hindalco‘s subsidiary, posted an EBITDA of $341mn, down 33% YoY and EBITDA/t of $376, down 31% YoY. This was primarily due to high energy and freight cost and lower volumes, which in turn was due to lower beverage cans volume amid destocking at consumers’ end. (Read More)
View on Pre Monetary Policy (February, 2023) by Churchil Bhatt, Executive Vice President & Debt Fund Manager, Kotak Mahindra Life Insurance Company-
“The lagged impacts of past policy action are now beginning to influence both global and domestic growth-inflation dynamics. Energy prices and Rupee exchange rate are both well behaved. Headline inflation remains within MPC target band and is likely to soften gradually going into FY24, aided by favourable base effects. Bond markets are already pricing in one final 25 bps rate hike going in this policy. However, we believe there is a case for MPC to deliver a status quo policy and resist from incremental policy tightening at this juncture. This in our view will be positive surprise for bond markets and may lead to moderate softening in yields."
India's largest oil and gas producer ONGC will this year reverse years of decline in production and gradually raise output thereafter, as it invests billions of dollars to produce from newer discoveries, a top company official said.
Oil and Natural Gas Corporation (ONGC) in fiscal 2021-22 produced 21.707 million tonne of crude oil, which is refined to produce petroleum products like petrol and diesel, and 21.68 billion cubic metre (bcm) of natural gas, which is used to produce electricity, manufacture fertiliser and as CNG in automobiles.
"We are definitely looking forward to increasing production of oil and gas in 2023-24 and even in the current year," ONGC chairman Arun Kumar Singh told PTI.
In the current fiscal year (2022-23), crude oil production is slated to rise to 22.823 million tonnes and gas to 22.099 bcm. In the following fiscal year, oil production will climb to 24.636 million tonnes and 25.689 million tonnes in 2024-25.
Natural gas production is slated to rise to 25.685 bcm in 2023-24 and 27.529 bcm in the following year. (PTI)
The strong headwinds faced by the Adani group, which has been at the forefront of issuing international green and sustainability bonds, could impact access to offshore ESG-linked financing plans of other Indian companies, according to environmental, social and governance (ESG) analysts.
A person who tracks ESG investments termed the Adani issue as a bad omen for India’s green energy ambitions. “Green investments cannot be looked at in isolation, and global investors will have a wait and watch approach than rush into investing in ESG-led projects," the person said on the condition of anonymity. (Read More)
Finolex Industries Ltd (FNXP IN): Recommendation: SELL
CMP: ₹173
Target Price: ₹127
Potential Return: ‐27%
Pipes volumes at multi‐quarter high!
Management indicated that Q4 FY23 is likely to be lower than Q3FY23, owing to sluggishness in demand. Moreover, company reiterated that FY23 should be similar to Pre-COVID levels & demand is likely to improve in FY24. Though we believe demand from Agri-segment to remain strong, we expect higher competition from unorganized players will keep FNXP’s performance under check. Hence, we continue to value the company at 15x on FY24E EPS of Rs8.5 & assign SELL rating on the stock.
Rossari Biotech Ltd (ROSSARI IN): Recommendation: BUY
CMP: ₹687
Target Price: ₹1,095
Potential Return: +59%
Focus on expansion of high margin portfolio
Rossari’s reported operating profits at ₹542mn (+16%YoY; -4% QoQ) missed our and street estimates on weaker earnings traction in subsidiaries and weaker demand sentiment in the HPPC segment. The Ebitda margin at 13.9% (2Q: 13.3%) nevertheless improved QoQ as raw material price environment improved. The standalone earnings were steady with SA. Ebitda at 319mn growing by 22% YoY & 15% QoQ, primarily on expansion in SA operating margin to 13.5% (2Q: 11.6%), even as revenue at 2.4bn (-12% YoY; -2% QoQ) stood weaker. Demand environment remains challenging in TSC segment, plus HPPC faced headwinds during the quarter due to a particular customer, which the company is trying tide over by onboarding of new customers. In the longer run, under normalized operating conditions, we expect the operating margins to restore to 14-15% levels. In addition, Rossari continues to innovate, within its four core chemistries, developing products for new applications, across product segments. Maintain BUY.
Dalmia Bharat (DALBHARA IN): Recommendation: BUY
CMP: ₹1,885
Target Price: ₹2,723
Potential Return: +44%
Revenue as anticipated; EBITDA/te rebound to Rs1022 as cost came lower‐than‐expected
Management indicated that the ongoing expansion is progressing as per schedule and will take the total capacity to 49MTPA by FY24E (excl. JAL acquisition) v/s 37MTPA in Q3FY23. With long term positive demand outlook and incremental capacities, we believe DALBHARA to clock a volume growth of +11/15/11% y/y for FY23/24/25E. Company signed definitive agreement for acquiring the JP Associate’s cement assets at an EV of Rs32.3bn which is a part of interim expansion plan to achieve ~75MTPA by FY27E, while ~21MTPA is yet to be announced. Additionally, DALBHARA committed towards its PAN India aspiration with110-130MTPA by FY31E. We rolled forward the estimate to FY25 and arrived at TP of Rs2,723, valuing the stock at 15x EV/EBITDA on FY25E.
Aarti Industries Ltd (ARTO IN): Recommendation: BUY
CMP: ₹565
Target Price: ₹795
Potential Return: +41%
Demand environment tepid; prognosis better
ARTO’s 3QFY23 Adj. Ebitda at ₹2.887bn (+36% YoY; +8%), stood below ours but above street estimates. The YoY growth stemmed from adjustment for shortfall fee of ₹6.8bn in base quarter. The 9MFY23 Ebitda stands at ₹8.4bn, as against an annual guidance of ₹11bn for FY23. While demand environment is challenging and tepid, specially in the textile segment, but ARTO expects to achieve its annual Ebitda guidance. The operating earnings CAGR over FY24-25 is expected at ~25%, with growth being back-ended towards FY25 leading to an Ebitda of ₹17bn (FY25e), as brownfield NCB expansion, along with specialty chemical blocks at Vapi gets commissioned by 1HFY24. The LT-3 contracts is also commissioned and ramping up to contribute to earnings in FY24 and FY25. Growth beyond FY25 would be aided by the ₹30bn capex being undertaken over FY24-25, most of which is aimed at production of new higher value molecules. Maintain BUY
Voltamp Transformers Ltd (VAMP IN): Recommendation: BUY
CMP: ₹2,916
Target Price: ₹3,656
Potential Return: +25%
Another quarter of stellar performance
Voltamp Transformers (VAMP) reported a strong set of numbers despite a month-long workers’ strike at its Savli facilities. Revenue growth was led by a mix of volume/realization growth of 10%/5% YoY respectively. Healthy operating margins aided by gross margin expansion and operating leverage benefits led to a ~450bps YoY operating margin expansion. Order book remains strong at ~Rs9bn (0.7x TTM revenue) as on 3QFY23, providing revenue visibility for the next few quarters.
Boeing Co expects to cut about 2,000 white-collar jobs this year in finance and human resources through a combination of attrition and layoffs, the U.S. planemaker confirmed Monday. (Read More)
India’s central bank is poised to deliver its final interest-rate increase in the current tightening cycle, amid signs of cooling inflation and weakening growth.
Thirty-four of 40 economists in a Bloomberg survey expect the Reserve Bank of India’s six-member Monetary Policy Committee to move by a quarter-point Wednesday, with the rest seeing a pause after 225 basis points of increases to the main repurchase rate since last May.
The median of economists surveyed separately for the year-ahead outlook predict the rates terminating at 6.50% this quarter and the MPC standing pat for the rest of the year. That projection is based on expectation consumer-price growth, which returned to the RBI’s 2%-6% target in November, will stay within that range in 2023.
A fiscally prudent annual spending plan, unveiled by Prime Minister Narendra Modi’s government last week, also boosts the case for pausing the tightening cycle. That will allow policymakers to support the economy, amid expectations for the pace of expansion to slow in the fiscal year beginning April. (Bloomberg)
Financial technology company Infibeam Avenues on Monday said it would further invest in its subsidiary company, Instant Global Paytech or GoPay. With this, the company will acquire an additional 2.42 per cent stake in GoPay for a cash consideration of ₹16.25 crore.
The company said the acquisition is to grow the existing assisted commerce business of Go Payments as well as get into the offline merchant acquiring business by promoting the physical distribution of the CC Avenue Merchant App, point-of-sale devices and tap pay products.
The company also said the acquisition of this stake would be completed in 30 days. According to the statement, the invested company had a turnover of ₹69.13 crore in fiscal 2021-22, ₹46.18 crore in fiscal 2020-21 and ₹24.80 crore in fiscal 2019-20. (ANI)
Bharti Airtel will be in focus on Tuesday as this telecom giant is scheduled to announce its third quarter numbers for FY23. The Q3 is likely to be robust in terms of profitability and top-line front, with a modest upside in EBITDA margins. ARPU and subscribers may also pick up. However, Africa business revenue growth is seen to witness somewhat muted growth.
Ahead of Q3 figures, Airtel stock was under pressure on Monday amidst a broader bearish market tone. The telco's share price closed at ₹789.40 apiece down by 0.46% on BSE. Airtel is the tenth largest firm in terms of market share with a valuation of nearly ₹4.40 lakh crore as of February 6th. (Read More)
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: There are huge uncertainties in the global equity markets now. The biggest uncertainty pertains to how the U S economy is likely to perform this year. The surprise 517000 job number in the US in January indicates a tight labour market and a strong economy. This means the Fed might continue to raise interest rates, perhaps twice more by 25 bp, this year. This has pushed up the bond yields with the 10-year at 3.62% now. This is negative for capital flows to emerging markets. Therefore, FIIs might continue to sell in India. In 2023, so far, FIIs were buyers only on 3 days and sold on all other trading days. Sustained FII selling and the Adani crisis have temporarily impacted sentiments. Investors may wait and watch for the dust to settle.
Meanwhile, high-quality stocks, particularly those which have declared good results, may be slowly accumulated.
India's Adani Group, which has in recent weeks suffered a brutal share selloff following the release of a U.S. short-seller report, remains eligible for the CEMBI, JACI and JESG indices, said JP Morgan in a note on Monday. "Per current index rules, Adani Group companies remain eligible for inclusion in CEMBI, JACI and JESG indices," JP Morgan said in the note. (Read More)
STOCK IN FOCUS
Voltas (CMP 827): Considering the decent earnings growth, higher volume and improved business visibility over the medium-term, we have our BUY rating on the stock, with a Target Price of Rs1,065.
Intraday Picks
HEROMOTOCO (PREVIOUS CLOSE: 2,695) BUY
For today’s trade, long position can be initiated in the range of Rs2686-
2672 for the target of Rs2784 with a strict stop loss of Rs2632.
APOLLOHOSP (PREVIOUS CLOSE: 4,321) BUY
For today’s trade, long position can be initiated in the range of Rs4256-
4232 for the target of Rs4390 with a strict stop loss of Rs4140.
TATACONSUM (PREVIOUS CLOSE: 730) BUY
For today’s trade, long position can be initiated in the range of Rs728-
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Anil Agarwal-led Vedanta Ltd on Monday named industry veteran David Reed to head its semiconductor unit where it is looking to invest USD 20 billion to manufacture chips essential for mobile phones to laptops and TV sets.
In an interview with PTI, Agarwal said the group is looking to start manufacturing semiconductors at Dholera in Gujarat in 2-3 years.
"We will start with USD 5 billion investment and scale it up as years go by," he said.
The semiconductors will be manufactured in joint venture with Taiwanese electronics company Foxconn. Vedanta holds a 63 per cent interest and the remaining is with Foxconn in the joint venture.
The company plans to initially produce 40,000 wafers a month.
Before joining Vedanta, Reed was with NXP Semiconductors, where he was Executive Vice President and General Manager of global operations. (PTI)
Procter & Gamble Hygiene and Health Care on Monday said its net profit declined 2 per cent to ₹207 crore for the October-December quarter on account of commodity cost inflation.
The company, which follows the July-June financial year, had posted a net profit of ₹212 crore in the same period of last fiscal.
Revenue from operations rose to ₹1,137 crore in the period under review as against ₹1,092 crore in the year-ago period, Procter & Gamble said in a statement.
"Despite external headwinds and macro-economic environment, we delivered a resilient performance as this quarter recorded sequential progress across topline and bottom line," Procter & Gamble Hygiene and Health Care Managing Director LV Vaidyanathan said. (PTI)
Bharti Airtel, Adani Green, Adani Ports, Hero MotoCorp, Ambuja Cements, and ABFRL will be among the stocks in focus as they declare their December quarter earnings today. (Read More)
Oil prices rose for a second day on Tuesday on supply concerns after an earthquake shuttered a major export terminal in Turkey and a field in the North Sea shut unexpectedly, while demand in China, the world's biggest importer, looks set to increase.
Brent crude futures rose 40 cents, or 0.5%, to $81.39 per barrel by 0117 GMT, while West Texas Intermediate futures rose 43 cents, or 0.6%, to $74.54 per barrel.
Operations at Turkey's oil terminal in Ceyhan halted after a major earthquake hit the region. The facility can export up to 1 million barrels per day (bpd) of crude.
The BTC terminal, which exports Azeri crude oil to international markets, will be closed on Feb. 6-8 while operators assess earthquake damage, a Turkish shipping agent said.
Daniel Hynes, senior commodity strategist at ANZ bank in Sydney pointed, in a note, to the Ceyhan closure and the shutdown of the 535,000-bpd Phase 1 of the Johan Sverdrup oil field in Norway's area of the North Sea as the main drivers for pushing prices higher.
"Signs of stronger demand boosted sentiment," he added. (Read More)
The Central government has struck off 1,27,952 companies from the records for failing to submit their financial statements for two continuous financial years. Union minister Rao Inderjit Singh in Lok Sabha amid the Budget Session said, 'A number of 1,27,952 companies have been struck off in last 3 years'. (Read More)
The rupee tanked 68 paise, its steepest single-day loss in more than four months, to close at a month low of 82.76 against the US currency on Monday due to a stronger greenback in the global markets and FII outflows.
Growing expectations of further rate hikes by the US Federal Reserve after strong US job data and firm crude oil prices weighed on the local unit, forex traders said.
At the interbank foreign exchange market, the rupee opened at 82.35 against the greenback, and fell further to settle at the day’s low of 82.76, a closing level not seen since January 4.
In the previous session on Friday, the rupee settled at 82.08 against the US dollar.
The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.24 per cent higher at 103.16, on robust job data from the US, which raised expectations of a hawkish Federal Reserve.
Global oil benchmark Brent crude futures advanced 0.45 per cent to USD 80.30 per barrel. (PTI)
Bank of Baroda’s exposure to the Adani group is a fourth of what Reserve Bank of India permits to a group of connected companies. In an interview, Sanjiv Chadha, chief executive at India’s second-largest state-owned lender, said there is no cause for concern on its exposure to Adani group companies. In fact, for a while now, the bank has been taking it easy with its exposure to corporates, compared to its peers, he said. Edited excerpts:
Reliance Capital lenders have approached the National Company Law Appellate Tribunal (NCLAT) to seek a second round of financial bids for the debt-ridden firm, presently going through the insolvency resolution process.
Vistra ITCL (India) Ltd, one of the members of the Committee of Creditors of Reliance Capital has filed an appeal before the appellate tribunal.
The petition has been listed before the bench headed by Chairman Justice Ashok Bhushan for hearing on Tuesday.
Earlier on February 2, the Mumbai bench of the National Company Law Tribunal (NCLT) had ruled against holding a fresh round of auction for the takeover of Anil Ambani-promoted Reliance Capital and said the challenge mechanism for financial bids has already concluded.
It upheld the plea by Torrent Investments' plea challenging bankers' decision to go for the second round of auctions in pursuit of higher value for the bankrupt company.
NCLT in its order said the bench allows Torrent Investment's application and declared that the challenge mechanism for financial bids stood concluded as on December 21, 2022, with the bid of the applicant at ₹8,640 crore being the highest. (PTI)
LIC Housing Finance Ltd (LICHFL) on Monday reported a massive decline in its net profit for the December quarter of fiscal year 2023. Its net profit, hit by higher financing costs, fell 37% year-on-year basis to Rs480.30 crore in the third quarter from Rs767 crore a year ago.
The Mumbai-based mortgage lender’s finance costs rose 19.4%, accounting for 80% of total expenses, which increased 28.6% to Rs5,283 crore.
LIC Housing Finance said its impairment costs on financial instruments surged 114.5% to Rs763 crore.
LIC Housing's interest income rose 16.8% to Rs5,839 crore in the December quarter.
On Monday, LICHFL’s shares fell 2.88% to close at Rs388.30 apiece on the BSE, ahead of the results. Its stock has fallen over 6% so far this year. (Read More)
UK authorities on Monday said British businesses and consumers are likely to need a digital version of the pound, formally asking for public comment on the idea of introducing a central bank digital currency.
Britain, home to the world's second-biggest financial centre, is trailing former colonies such as Nigeria, the Bahamas and Jamaica in rolling out a digital currency.
More than 80 per cent of the world's central banks are considering launching digital currencies or have already done so, according to the consultant PwC. (Read More)
Steel major Tata Steel on Monday reported a surprise consolidated net loss of ₹2,224 crore for the third quarter ending 31 December 2022 (Q3FY23). This is a decline of 76% from ₹9,572 crore profit posted in the corresponding quarter of last year.
The steel production company's revenue from operations declined 6% to ₹57,083.56 crore for the period under review as compared to ₹60,783 crore in the year-ago period. The steel major's expenses rose to ₹57,172.02 crore in the quarter under review from ₹48,666.02 crore in the year-ago period. (Read More)
Indian bourse National Stock Exchange of India (NSE) has revised the circuit limits of Adani Green Energy Ltd and Adani Transmission Ltd to 5%, according to data on its website on Monday. The NSE had revised the price bands of both companies to 10% from 20% last week.
Stock exchanges set the circuit limits to prevent large movements in the price of stocks in a very short time. Shares in billionaire Gautam Adani's companies have been in free-fall since a 24 January critical report by Hindenberg Research, with group cumulative market losses now topping $110 billion, sparking fears of wider financial contagion. (Read More)
Wall Street shaved off more of its strong start to the year on Monday, adding to losses from the end of last week driven by worries about higher interest rates and inflation.
The S&P 500 fell 25.40, or 0.6%, to 4,111.08 for its second straight fall after a stunningly strong report on the U.S. jobs market dented the market’s hopes for easing interest rates. The Dow Jones Industrial Average fell 34.99 points, or 0.1%, to 33,891.02, while the Nasdaq composite dropped 119.50, or 1%, to 11,887.45.
Some of the sharpest action was again in the bond market, where expectations are rising for the Federal Reserve to stay firm on keeping interest rates higher for longer to combat inflation. It’s something the Fed has been talking about for a long time, but also something the market has been stubborn about not believing fully.
The yield on the two-year Treasury, which tends to track expectations for the Fed, leaped. It zoomed to 4.47% from 4.29% late Friday and just 4.10% the day before. That’s a significant move for the bond market. The 10-year yield, which helps set rates for mortgages and other important loans, jumped to 3.64% from 3.52% late Friday.
Higher rates slow the economy by design, in hopes of limiting the purchases by households and businesses that can fuel inflation. But they also raise the risk of a severe recession and hurt markets in the meantime. (AP)
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