PremiumMost of the Asian indices gained on Wednesday ahead of US inflation data scheduled to be released later this week. Tokyo and Hong Kong ended with decent gains, while Shanghai closed with minor loss. European shares were trading in green in the morning session.
Indian indices had a volatile Wednesday as they hovered around the flat territory for most of the day and ended with minor losses. Traders waited for domestic and US consumer price data later in the week to offer cues on central banks' interest rate-hike plans.
Sensex managed to defend the 60,100 mark to close at 60,105, a drop of 10 points. Nifty ended up falling 18 points to close at 17,895.
IT index started the day on a strong note but shed some of the gains but ended in the green. Metal and Bank also registered decent gains. FMCG shed a per cent. Auto and Energy ended in the red.
Bharti Airtel put a major drag on the market as it shed more than 3%. Cipla, Divi's Labs and Apollo Hospitals dropped more than 2%. Among gainers, Hindalco climbed around 3%, followed by Sun Pharma, BPCL, and Ultratech Cement which were up more than 2%.
Global shares were mostly higher Wednesday, boosted by a rally on Wall Street ahead of some potentially market-moving reports due later in the week, and relief after Federal Reserve Chair Jerome Powell refrained from commenting on U.S. rate policy.
Japan's Nikkei share average rose more than 1% to a two-week high with shares in robotics companies leading the charge, even as crucial U.S. inflation data loomed later in the week. The Nikkei ended the day 1.03% higher. The Topix gained 1.08% and also touched a two-week peak intraday.
Hong Kong stocks rose to another six-month high on hopes of a strong economic rebound from the COVID-19 pandemic and discounted values, while shares in mainland China lost momentum in the afternoon and closed lower, as investors looked for fresh cues for direction after the strong rally.
China's blue-chip CSI 300 index dropped 0.19%, while the Shanghai Composite Index declined 0.24%. Hang Seng Index rose 0.49% and Hang Seng China Enterprises Index went up 0.65%.
European shares edged up on Wednesday lifted by Bayer and LVMH, while optimism over reopening in China and hopes of less aggressive US interest rate hikes aided the sentiment. The pan-regional STOXX 600 gained in the morning session.
Credit Suisse Group AG is considering cutting the bonus pool for 2022 by about half, according to people familiar with the matter, capping a grim year in which the bank was forced to raise $4 billion after a string of losses.
The Swiss lender is set to make even more drastic cuts to variable compensation after the 32% decline for 2021, according to people familiar with the matter. A cut by half would make the 2022 bonus pool about 1 billion Swiss francs ($1.1 billion), which compares with 2.9 billion francs two years earlier.
Credit Suisse’s belt-tightening is likely more severe than that at Wall Street peers including JPMorgan Chase & Co. and Citigroup Inc., which are set to cut bonuses after a slump in dealmaking and sales of new securities. It also underlines the challenges Chief Executive Officer Ulrich Koerner now faces in executing a turnaround that isn’t expected to deliver profits until 2024 while trying to hang on to already disgruntled staff. (Bloomberg)
MG Motor India, owned by China's SAIC Motor, expects electric vehicles (EV) to account for at least a quarter of its sales in India in 2023, the automaker said during the country's biennial auto show on Wednesday.
"At the end of this year, 25 to 30% of our sales will be all electric," Managing Director Rajeev Chaba said, adding that it is evaluating the launch of the MG4 electric hatchback and eHS plug-in hybrid SUV in India, which were unveiled at the event.
MG Motor has just over a 1% share of India's passenger vehicles market, where it sells the ZS EV SUV.
SAIC Motor has previously said that it has a wide portfolio of new energy vehicles (NEVs), which include electric, hybrid and fuel cell cars, which MG can choose from to sell in India.
MG Motor plans to raise funds to develop its Indian electric mobility business, Reuters reported in March, amid increased scrutiny of Chinese investments by New Delhi. (PTI)
Oil prices were broadly steady on Wednesday as market participants were pulled in different directions by an unexpected build in U.S. crude and fuel inventories, global economic uncertainty and China reopening its economy.
Moving in and out of negative territory, Brent crude futures were up 53 cents, or 0.7%, at $80.63 a barrel by 0921 GMT. U.S. West Texas Intermediate (WTI) crude futures rose 41 cents, or 0.6%, to $75.53 a barrel.
Both contracts rose on Monday and Tuesday, rebounding from a sharp selloff in the first week of 2023.
U.S. crude oil stockpiles jumped by 14.9 million barrels in the week ended Jan. 6, sources said, citing data from the American Petroleum Institute (API). At the same time, distillate stocks rose by about 1.1 million barrels. (Reuters)
Tata Power Renewable Energy Ltd. (TPREL), a wholly-owned subsidiary of Tata Power, on Wednesday said it has signed an agreement with Vivarea Condominium, a residential society in Mumbai, to supply solar power. In a first, a 3.125 MW solar plant will be set up at Himayatnagar, Maharashtra, to power the society with clean energy.
The project will be commissioned by October 2023 and will provide green power at approximately 40% less than existing cost to Vivarea Condominium, a residential society in Mumbai. (Read More)
India will by May invite bids for subsidies for setting up green-hydrogen manufacturing and utilisation hubs, fertiliser and steel plants based on the fuel, and factories for making electrolysers, two government sources told Reuters.
The bidding process is part of a first phase of a $2 billion incentive plan announced last week to boost use of green hydrogen to cut emissions and make India a major exporter in the field.
Green hydrogen is hydrogen made with renewable energy. The plan aims at using it in fertiliser and steel production in place of hydrogen made with fossil fuels, blending it into urban gas supply gas and promoting its use in transportation. (Read More)
HLL Lifecare Limited (HLL), a mini-ratna public sector enterprise, has paid ₹122.47 crore as dividend to the health ministry for financial year 2021-22.
The company recorded a turnover of ₹35,668 crore and a profit before tax of ₹551.81 crore of HLL during the financial year 2021–22.
HLL chairman and managing director, Beji George, handed over the dividend cheque to Union Minister for Health and Family Welfare, Mansukh Mandaviya. (Read More)
The consumption of composite materials in India is expected to witness a sharp uptick and touch 7.68 lakh tonne (LT) by 2027, led by demand from sectors like renewable energy, electric vehicles, defence, among others, according to a report.
Composite materials or fibre-reinforced plastics help in circular economy as these are manufactured by combining multiple materials with different properties.
Examples of composite materials are polymer matrix, metal matrix, ceramic matrix composites and carbon matrix etc.
"The Indian composites material industry is taking the consumption from 5,11,900 tonnes of composites materials in 2021 to 7,68,200 tonnes in 2027," FRP Institute said in its latest research.
The composites materials market is also expected to grow at a CAGR of 6.9 per cent over the next five years to reach USD 2.01-billion in 2027 from USD 1.26 billion last year, the Chennai-based body said. (PTI)
Micro and small enterprises (MSEs) have cornered over 55 per cent of the total orders placed on the public procurement platform GeM since 2019, a senior government official said.
The Government e-Market (GeM) portal was launched on August 9, 2016, for online purchases of goods and services by all the central government ministries and departments.
GeM CEO P K Singh said that the public procurement policy for MSEs mandates 25 per cent of buying of goods and services from these units and 3 per cent MSEs owned by women.
"On GeM, MSEs have secured 55.2 per cent ( ₹1,41,887 crore) of total order value ( ₹2,57,263 crore) and MSEs owned by women have secured 8 per cent ( ₹11,373 crore) of the MSE orders. The numbers reflect inclusivity on GeM," Singh told PTI.
Procurement of goods and services from government portal GeM has crossed ₹1 lakh crore so far this fiscal on account of an increase in buying activities by different ministries and departments. (PTI)
A long-term investor enjoys some extra return over a short-term investors as listed companies announce various rewards for their loyal investors. A company announces such rewards from its capital reserves and the form of reward can be a buyback of shares, dividend (whether interim, final or special), issuance of bonus shares, etc. To understand how these rewards can be an attractive offer for a long-term investor, one needs to look at R & B Denims share price history. In last seven years, this small-cap stock has risen from ₹2.25 to ₹39 apiece levels, clocking more than 1600 per cent rise in this period. However, there is a catch. the small-cap stock has traded ex-split in October 2021.
The small-cap stock traded ex-split on 28th October 2021 in the ratio of 1:5. This means, a shareholders of one stock became five after the stock split as the company went for subdivision of its shares from the face value of ₹10 per equity share to ₹2 per equity share. (Read More)
Tata Group’s ambitious super app is expected to meet just half of the sales target in its debut year, forcing the sprawling Indian corporate to review its digital strategy, people familiar with the matter said.
Tata Digital Pvt.’s online platform, Tata Neu, which went live in April, will see sales of about $4 billion in the year to March 31 compared with the $8 billion target set at the beginning of 2022, the people said, asking not to be named as the information is not public. The company, helmed by Chief Executive Officer Pratik Pal, is overhauling the strategy to scale up the business profitably, they said. (Read More)
Yes Bank shares recently made a 52-week high of ₹24.75 apiece on 13th December 2022. However, after ascending to this peak, Yes Bank share price has remained an ideal 'sell on rise' stock on Dalal Street. Yes Bank share price today continues to attract bears and made its intraday low of ₹20.05 per share, clocking near a 3 per cent intraday loss in early morning deals. However, if we compare Yes Bank stock price today with its 52-week high, the stock has retraced to the tune of nearly 20 per cent in nearly one month.
According to stock market experts, the stock is expected to remain range bound till March 2023 as the three-year lock-in for leading banks like IDFC First Bank, Axis Bank, Kotak Mahindra Bank, etc. is ending this March. So, the market is buzz about profit booking by these private lenders as Yes Bank share price has almost doubled in last three years and after the end of the lock-in period, these banks may think of profit booking in March 2023 (may be partially if not fully). (Read More)
Bank of Baroda (BOB IN) – Gaurav Jani – research analyst, Prabhudas Lilladher Pvt Ltd: Rating: BUY | CMP: Rs181 | TP: Rs220
Company Update - Scaling new heights
We remain positive on Bank of Baroda (BOB) given, 1) domestic corporate credit is reviving as growth touched an 8-yr high of +13% YoY and BoB would be a key beneficiary as corporate loan share is ~40% and market share in overall advances is sizeable at 6.6% post-merger 2) BOB could see NIM expansion for 1-2 more quarters while private bank margins might peak in Q3FY22, due to higher share of MCLR linked loans (53% vs 30% for private banks) 3) balance sheet is stronger as GNPA in Q2FY23 reduced to 5.3% from 8.1% while PCR enhanced from 67% to 79%; expect RoA/RoE to improve over FY22-25E from 0.6%/9.6% to 0.9%/14.7%. We had recently raised FY23E earnings by 8% for BoB, however, with asset quality risks abating and steady credit growth outlook, there is likelihood of further earnings upgrade. Rolling forward to Mar’25 ABV, we raise multiple from 1.0x to 1.1x and maintain TP at Rs220. Reiterate ‘BUY’.
Indian ace investor Rekha Jhunjhunwala has increased her stake in the portfolio stock Geojit Financial Services by more shares of the financial services provider during the third quarter ended December 2022 of the current fiscal (Q3 FY23).
As per the recent shareholding pattern on the BSE, Rekha Rakesh Jhunjhunwala holds 8.38% stake or 2,00,37,500 equity shares during the October-December 2022 period, which is higher than 7.54% stake or 1,80,37,500 shares that her late husband Jhunjhunwala Rakesh Radheshyam had held as of September 2022 quarter (Q2), as per the exchange data. (Read More)
E-commerce firms operating in the business-to-consumer (B2C) space are the quickest to churn out unicorns, while those in the online gaming and software-as-a-service (SaaS) industry take almost a decade to touch the $1 billion valuation mark, according to PwC’s CY22 Start-up Perspectives report. (Read More)
Mutual funds in India can launch passive equity-linked savings scheme (ELSS) but only after the closure of the existing actively-managed ELSS fund for subscription, markets regulator Securities and Exchange Board of India or Sebi said in a circular.
The fund house must stop all fresh inflows, including systematic investment plans and systematic transfer plans to the actively managed ELSS scheme. (Read More)
The Supreme Court on Wednesday agreed to hear a plea of US tech giant Google against an order of the National Company Law Appellate Tribunal (NCLAT) refusing an interim stay on the competition regulator imposing a ₹1,337 crore penalty on it .
A bench comprising Chief Justice DY Chandrachud and Justice P S Narasimha took note of the submissions of senior advocate A M Singhvi, appearing for the US firm, and said that it will list the plea for hearing on Monday.
The senior lawyer said that extraordinary directions have been passed by the Competition Commission of India (CCI) and the order has to be complied by January 19.
“There is no finding of abuse of dominance," he said.
The NCLAT, on January 4, had refused an interim stay on an order of the competition regulator imposing a ₹1,337 crore penalty on Google and had asked it to deposit 10 percent of the amount. (PTI)
The initial public offering (IPO) of Rhetan TMT Ltd was launched in August 2022 and the Rhetan TMT shares were listed on the BSE SME exchange on 5th September 2022 at ₹70 apiece level, exactly at its price band of ₹70 per equity share. However, it ended at ₹66.50 apiece level, below its price band. But, those allottees who remained invested in the stock backing their conviction, have got strong returns in the last four months of its listing. Rhetan TMT share price today is 447 per share, around ₹540 per cent higher than its issue price of ₹70 per equity share. (Read More)
The Adani Wilmar share price was up about 3% in early trade on January 11 after posting healthy volume growth for the quarter ended December 31. The stock opened higher at ₹584 and continued to gain to hit day's high of ₹596 in early morning trade.
Adani Wilmar saw strong volume growth across all segments in the quarter. As per the regulatory filing, Adani Wilmar posted high-single-digit growth in edible oil volumes, while the growth was in low-single digit in value terms in Q3FY23. (Read More)
Consumer Durables Q3FY23 PREVIEW: TEPID SENTIMENTS LEAD TO MODERATE DEMAND
We would watch out for management commentaries on a) Channel inventory in the system given the volatility of RM prices; b) The impact of Rupee depreciation on margins; c) Market share gains vs. unorganized players (for Polycab India and Sheela Foam); d) Any impact on supply-chain given increased COVID-19 cases across countries; e) Updates on production under the PLI schemes (for Dixon Technologies and Amber Enterprises). We would also closely monitor commentary on international subsidiaries and their performance (especially Symphony and Sheela Foam) as well as export opportunities going forward.
OUR TOP PLAYS
Positive: Polycab India, Dixon Technologies
Negative: Symphony Ltd
Metals: CHINA OPENING AND USD PEAKING MAY PROVIDE SUPPORT TO BASE METALS AND STEEL PRICES
Steel Q3FY23 Preview – Margins to recover from a trough of Q2FY23
Aluminium Q3FY23 Preview – Margins to compress on lower average LME
Our Top Positive Plays: APL Apollo tubes, Hindalco, and Tata SteelAluminium and higher energy costs
PSU banks outperformed Bank Nifty by 46%/107% over the last 1/2 years driven by improving loan growth, expanding net interest margins (NIMs) and improving asset quality, highlighted domestic brokerage and research firm Ambit.
“Moreover, most PSBs are losing market share in loans/deposits/payments and their asset quality performance during Covid does not indicate structural improvement in under-writing capabilities. That said, higher liquidity buffers and a floating rate loan book should benefit PSBs in the short term in maintaining loan growth/NIMs. Also, a benign asset quality cycle should keep credit costs low. Combining short-term earnings drivers and structural strength of the franchise, State Bank of India (SBI), Bank of Baroda (BOB) and Bank of India (BOI) are better placed PSBs," the note stated. (Read More)
Lenders to Reliance Capital on Tuesday unanimously voted to restart the bidding process to auction the bankrupt company, two officials familiar with the matter said. The auction will be conducted with a base price of ₹9,500 crore, including upfront cash of ₹8,000 crore. The voting, which started on Monday, ended on Tuesday afternoon. The auction may be conducted on 16 January.
The decision also offers other initial bidders, including the Cosmea-Piramal consortium and Oaktree Capital, a new chance to revise bids. However, lenders said both these bidders, who had exited the race in the first round itself, are unlikely to bid higher. (Read More)
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: The biggest drag on the market in the near term is the sustained selling by FIIs for thirteen continuous sessions, which has taken the cumulative cash market selling to ₹16587 crores. Higher valuations in India and attractive valuations in markets like China are nudging the FIIs to sell in India and move money to cheaper markets. Even though this is a short-term challenge, this can also turn out to be an opportunity for long-term investors. Last year, too, FIIs sold heavily in early months and DIIs/ retail, who absorbed all FII selling, made big profits when the market recovered. Bank stocks are down due to FII selling, but the segment is doing well and Q3 results will be good. The market will respond to the results.
Prime Minister Narendra Modi’s goal of making India the world’s factory risks being held back by the country’s inability to attract bigger container ships due to inadequate port infrastructure.
Most harbours along India’s coast aren’t deep enough to handle vessels like the Ever Alot, the world’s largest boxship at 400 meters long and with a capacity of more than 24,000 twenty-foot equivalent units. Neighboring Sri Lanka, as well as Malaysia, have in recent months received visits from the Ever Alot, which can rival the Empire State Building in length.
India’s biggest state-run container handling facility, Jawaharlal Nehru Port Trust, lacks the 17-meter draft needed for such vessels to navigate. One facility that has said it can handle the behemoth — Mundra Port, operated by billionaire Gautam Adani’s conglomerate — has so far been skipped. The 17,292-TEU APL Raffles is the biggest vessel to have berthed there, in January 2022 with 13,159 TEUs on board. (Read More)
Budget 2023 is just around the corner and given that it is the last full budget before 2024 Lok Sabha elections, expectations from the government are running high. While the middle salaried class is expecting some relaxation in income tax slabs, senior citizens want the minimum tax slab to be raised.
A wide expectation from the PM Modi-led government is to continue on the path of fiscal prudence while focusing on infrastructure development.
Prabhudas Lilladher in a recent report said it expects higher allocation for rural spending which includes MNREGA, food security and rural infra, PM Awas, piped water and sanitation, which will improve employment, rural incomes and rural demand. (Read More)
Apple Inc. is planning to start using its own custom displays in mobile devices as early as 2024, an effort to reduce its reliance on technology partners like Samsung and LG and bring more components in-house.
The company aims to begin by swapping out the display in the highest-end Apple Watches by the end of next year, according to people with knowledge of the matter. The screens upgrade the current OLED — organic light-emitting diode — standard to a technology called microLED, and Apple plans to eventually bring the displays to other devices, including the iPhone.
The changes are part of a sweeping effort to replace Apple supplies with homegrown parts, an undertaking that will give the company more control over the design and capabilities of its products. The tech giant has dropped Intel Corp. chips in its Mac computers in favor of in-house designs and plans to do the same with the key wireless components in its iPhones. (Bloomberg)
STOCK IN FOCUS
Tata Motors (CMP 413) - Recent JLR’s volume performance and company’s indication of GBP400mn+ positive cash flow at JLR in 3QFY23 turns around investor sentiment and increase confidence on company’s business and management capabilities. In view of expected recovery of JLR’s global business with likely ease on semiconductor supply in subsequent quarters and strong order book, turnaround of PV business post restructuring of domestic business and strong domestic CV up-cycle, we have a BUY rating on TTMT with the SOTP based the Target Price of Rs575, valuing the business at Rs684 and excluding the net debt of Rs109/share.
Intraday Picks
TECHM (PREVIOUS CLOSE: 1,003) BUY
For today’s trade, long position can be initiated in the range of Rs995-
1000 for the target of Rs1025 with a strict stop loss of Rs987.
CUMMINSIND (PREVIOUS CLOSE: 1,449) SELL
For today’s trade, long position can be initiated in the range of Rs1460-
1470 for the target of Rs1428 with a strict stop loss of Rs1488.
TATACHEM (PREVIOUS CLOSE: 969) BUY
For today’s trade, long position can be initiated in the range of Rs960-
966 for the target of Rs987 with a strict stop loss of Rs954.
A total of two stocks have been put under the ban for trade on Wednesday, January 11, 2023 under the futures and options (F&O) segment by the National Stock Exchange (NSE). These securities have been put on ban under the F&O segment as they have crossed 95% of the market-wide position limit (MWPL), as per the NSE.
Indiabulls Housing Finance and Gujarat Narmada Valley Fertilizers & Chemicals (GNFC) are the stocks that continue to be 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)
In cryptocurrencies, Bitcoin price today gained with the world's largest and most popular digital token trading with gains of nearly 2% at $17,429. Overall, the global cryptocurrency market cap today remained below the $1 trillion mark, even as it was up nearly a per cent in the last 24 hours to $893 billion, as per the data by CoinGecko.
"Bitcoin saw a significant increase in value as it broke through an important resistance level at $17,400 on Tuesday. The rally occurred over the weekend, which propelled the price past this key level. This spike in value could be attributed to the accumulation of whales in the past two days. If bitcoin can maintain this upward momentum, it could potentially reach the resistance level of $17,500 by the end of the week. Ethereum, after a successful implementation of Merge, it is now gearing up for the launch of the Shanghai public testnet in February, which will improve its ability to process high-volume transactions while also reducing costs," said Edul Patel CEO & Co-Founder, Mudrex. (Read More)
Sanginita Chemicals, Sanathnagar Enterprises and 5paisa Capital will be among the stocks in focus as they declare their December quarter earnings today. (Read More)
Tata Motors has completed the acquisition of Ford India's manufacturing plant at Sanand through its subsidiary, the company informed on Tuesday. Last year, the company informed about the acquisition noting Tata Passenger Electric Mobility Ltd (TPEML) would acquire Gujarat-based Ford India Pvt Ltd's (FIPL) for ₹725.7 crore.
With the fulfilment of the necessary conditions, including receipt of relevant regulatory approvals, the parties have completed the transaction and TPEML has acquired the Sanand property and the vehicle manufacturing plant and machinery, Tata Motors said in a regulatory filing. (Read More)
Adani Group-backed consumer food company, Adani Wilmar has witnessed yet another healthy quarter for the period ending December 31, 2022. The FMCG player saw strong volume growth across all segments in the quarter. Going ahead, the company plans to develop its operating model in HoReCa (Hotels, Restaurants, Caterers) segment to drive sales.
As per the regulatory filing, Adani Wilmar posted high-single-digit growth in edible oil volumes, while the growth was in low-single digit in value terms in Q3FY23. (Read More)
State-owned NTPC on Tuesday said its coal production increased 51 per cent year-on-year from its captive mines to 14.55 million tonne (MT) in April-December 2022.
The power giant had produced 9.65 MT of coal from its captive coal mines in the year-ago period, NTPC said in a statement.
"Coal mining division of NTPC is maintaining its growth trajectory. NTPC surpassed its earlier record with coal production of 14.55 MT till December 2022 in this fiscal compared with 9.65 MT in the same period of the previous year," it added.
The four operational coal mines -- Pakri-Barwadih (Jharkhand), Chatti-Bariatu (Jharkhand), Dulanga (Odisha) and Talaipalli (Chhattisgarh) -- have contributed to accomplish the highest-ever monthly coal production of 22.83 lakh tonnes in December 2022. (PTI)
Vaishali Parekh has recommended two day trading stocks for today, here we list out full details in regard to those intraday stocks for today:
1] Coromandel International: Buy at ₹901, target ₹935, stop loss ₹890; and
2] Tata Consumer: Buy at ₹769, target ₹790, stop loss ₹760. (Read More)
Adani Ports and Special Economic Zones (APSEZ) on Tuesday said the consortium of APSEZ and Israel's Gadot Group (Gadot) has completed the acquisition of Haifa Port Company Ltd (HPC) from the government of Israel.
APSEZ in a statement said that the consortium had won the bid for HPC on July 22, 2022.
"On July 15, 2022, we announced that the consortium of Adani Ports and Gadot Group (with 70:30 shareholding) had won the competitive bid for the privatisation of HPC at an offer price of NIS 4.1 Bn, equivalent to USD 1.18 Bn.
"The concession period of the port is up to 2054," it said.
Adani Ports and Special Economic Zone, the flagship transportation arm of the diversified Adani group, is India's largest private ports and logistics company. (PTI)
After the announcement of share allocation, allottees and market observers are eagerly waiting for Sah Polymers IPO listing date, which is most likely on 12th January 2023. However, official confirmation in regard to Sah Polymers' share listing date is still awaited. But, before hitting secondary markets, Sah Polymers' share price has surged in the grey market today. According to primary market observers, shares of Sah Polymers are available at a premium of ₹7 in grey market today. (Read More)
The World Bank slashed its 2023 growth forecasts on Tuesday to levels teetering on the brink of recession for many countries as the impact of central bank rate hikes intensifies, Russia's war in Ukraine continues, and the world's major economic engines sputter.
The development lender said it now expected global GDP growth of 1.7% in 2023 -- the slowest pace outside the 2009 and 2020 recessions in nearly three decades. In its previous Global Economic Prospects report, in June 2022, the bank had forecast 2023 global growth at 3.0%.
The bank said major slowdowns in advanced economies, including sharp cuts to its forecast to 0.5% for both the United States and the euro zone, could foreshadow a new global recession less than three years after the last one. (Read More)
The US emerged as a top destination for refined petroleum products from India in November, much of it processed from Russian crude oil imported at a discount. According to data from the commerce ministry, Russia exported crude oil worth $3.08 billion in November to India, making it the second-largest exporter to India after Saudi Arabia.
Meanwhile, the US imported oil products worth $588 million in November, raising imports to the highest levels this fiscal. Experts said that the imports increased amid the high demand for crude ahead of the US holiday season. (Read More)
Stocks ticked higher in quiet trading on Wall Street Tuesday, ahead of some potentially market-moving reports scheduled for later in the week.
The S&P 500 rose 27.16 points, or 0.7%, to 3,919.25 after drifting between small gains and losses through the day. The Dow Jones Industrial Average gained 186.45, or 0.6%, to 33,704.10, and the Nasdaq composite climbed 106.98, or 1%, to 10,742.63.
The stock market has had a positive start to 2023 due to hopes that cooling inflation and a slowing economy may convince the Federal Reserve to ease off its markets-shaking hikes to interest rates. The Fed since early last year has been raising rates at a furious pace in hopes of getting the nation’s painful inflation under control. Such moves risk causing a recession and hurt investment prices.
Investors were hoping for some clues about where the Fed is heading from its chair, Jerome Powell, who made remarks at a forum in Stockholm on Tuesday. But he gave little news about rates.
The next big marker for the market is likely Thursday’s update on how bad inflation was last month at the consumer level. Economists expect it to show U.S. inflation slowed further to 6.5% from 7.1% in November and from a peak of more than 9% in the summer. (AP)
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