PremiumThe 50-share NSE index fell below the 200-day moving average of 17,376.21 intraday for the first time since early October. US reports show everything from inflation to the job market to spending by shoppers is staying hotter than expected. Traders are betting on more interest rate hikes in the future which might push the economy into recession.
Indian shares fell on Monday with the benchmark Nifty slipping below a key long-term average intraday for the first time in over four months after US data reinforced fears of a prolonged high-interest rate regime.
The Nifty 50 index fell 73 points to end below 17,400, at 17,392. The S&P BSE Sensex edged 175 points lower to close at 59,288. The 50-share NSE index fell below the 200-day moving average of 17,376.21 intraday for the first time since early October.
Vinod Nair, Head of Research at Geojit Financial Services said, “The personal consumption expenditure in the US, which is Fed’s key monitorable of inflation, increased in January, pressuring investors to stay away from equities markets. The US dollar index surpassed 105, adding further pressure on the INR."
Most sectoral indices ended in the red with Media shedding almost 4%, Metal 2.4%, IT 1.9%, and Auto 1.5%. Realty jumped more than 2%. Bank indices remained stable with Nifty Bank a per cent.
Adani stocks remained under pressure with Adani Enterprises dropping almost 10%. Bajaj Auto shed 5%, UPL 4%, Tata Steel 3%, and Infosys 2.5%. Power Grid and ICICI Bank jumped more than 2% each.
Japan's Nikkei settled lower taking cues from Wall Street. The index sank as much as 0.59% before regaining some ground to close 0.11% lower. Technology was among the biggest hit sectors, given its sensitivity to higher interest rates.
Chipmaking equipment maker Tokyo Electron and startup investor SoftBank Group were the Nikkei's biggest drag, shaving off more than 20 index points each. Tokyo Electron and SoftBank Group fell 1.88% and 2.25%, respectively.
China and Hong Kong stocks finished lower on Monday amid rising Sino-U.S. tensions, while investors awaited policy signals from the upcoming National People's Congress.
China's blue-chip CSI300 Index closed down 0.4%, while the Shanghai Composite Index lost 0.3%. Hong Kong's Hang Seng benchmark slid 0.4% and the China Enterprises Index fell 0.6%.
Retailers pulled European shares higher on Monday, after their worst weekly performance this year on worries of higher interest rates for longer in the United States and the eurozone. The pan-European STOXX 600 index added in the morning trade after falling 1.4% last week.
UK's FTSE 100 rose on Monday rebounding getting a boost from upbeat earnings reports from Associated British Foods and Bunzl. The blue-chip FTSE 100 gained while the more domestically-inclined FTSE 250 midcap index rose 0.3%.
The initial public offering (IPO) of SVJ Enterprises Ltd opened for public subscription on Thursday, February 23, 2023, and the three day issue will conclude tomorrow i.e., Tuesday, Feb 28, 2023. The issue is priced at ₹36 per share.
As of 2:55 pm, the SVJ Enterprises IPO has been overall subscribed 0.58 times with 0.70 times in the retail category, and 0.47 times in the NII category, as per the exchanges data. The public issue is a SME IPO of 1,701,000 equity shares of the face value of ₹10, aggregating up to ₹6 crore. (Read More)
The country's fertiliser imports rose by 3.9 per cent to 19.04 lakh tonnes in January this year compared to the year-ago period, according to the Fertiliser Ministry data.
The country imported 18.33 lakh tonnes of fertilisers during January 2022.
According to the latest data, of the total imports of 19.04 lakh tonne, 10.65 lakh tonnes of urea, 5.62 lakh tonnes of Di-ammonium Phosphate (DAP), 1.14 lakh tonnes of Muriate of Potash (MoP) and 1.63 lakh tonnes of complexes were imported.
In the same month of the previous year, the country imported 12.48 lakh tonnes of urea, 2.45 lakh tonnes of DAP and 3.40 lakh tonnes of MoP.
The quantity of MoP was for both agriculture and industrial use.
The domestic fertiliser production during January this year also rose to 39.14 lakh tonnes when compared with 32.16 lakh tonnes in the year-ago period, the data showed. (Read More)
One of the renowned stock market analysts, Ashwani Gujral passed away on Monday as per reports. He was widely known for his technical analysis on the equity market. He was also the author of the book titled 'How to Make Money in Intraday Trading'.
One of the oldest names in the Indian construction and design industry, BCD Group in partnership with Bengaluru-based real estate advisory firm ArisUnitern has crossed over ₹300 crore of the value of projects in the southern part of India. As part of their partnership, the duo will together contribute towards fund flow management and offer advisory or transactions and bringing investors, along with turnkey construction solutions thus providing well-rounded services across the project development value chain.
Further, both BCD and ArisUnitern together are working on projects worth over a pipeline of ₹500 crore in 2023- 24 and look to significantly expand their clientele with this partnership. (Read More)
The National Company Law Appellate Tribunal (NCLAT) has upheld the 2019 Resolution Plan of Adani Power's bid for Korba West Power and has asked Shapoorji Pallonji & Co to pursue arbitration proceedings for pending claims.
A two-member NCLAT bench said "there is no illegality in the order of the approval of the resolution plan by the Adjudicating Authority (NCLT) and it does not see any reason to set aside the resolution plan by Adani Power.
The appellate tribunal was deciding over a petition filed by Shapoorji Pallonji & Co, against an order passed by the Ahmedabad Bench of the National Company Law Tribunal (NCLT) on June 24, 2019 approving the resolution plan by Adani Power.
Shapoorji Pallonji & Co has claims of ₹45.22 crore and an arbitration was going for the same.
However, Korba West Power has itself triggered the Corporate Insolvency Resolution Process (CIRP) under section 10 of the Insolvency and Bankruptcy Code. (PTI)
Tata group-owned Air India will let go of Vistara brand after the merger, as the Air India brand is more popular globally, Chief Executive Campbell Wilson said on Monday. Wilson also said the list price of a record 470 aircraft, ordered from Boeing and Airbus a few days back, is $70 billion.
Wilson also said that Air India plans to fund the order with a combination of resources, including internal cash flow, shareholder equity and sale-and-leaseback of aircraft. (Read More)
Growth in e-commerce slowed down in calendar year 2022 after seeing a spike in the months following the lockdown. Return to markets and malls, along with high inflation prompted consumers to go easy on buying everything online.
“Growth in e-commerce during the pandemic, apart from a few minor dips, remained relatively secular due to the consumer shift towards digital channels. However, the subsequent slowdown in consumer demand led to order volumes for e-commerce being subdued in CY2022. The impact has been slightly lower compared to that on the FMCG player, as e-commerce is less reliant on price-elastic rural demand," consulting firm Redseer said in a note on Monday. (Read More)
The month of March could bring back the interest in IPO market as many public offers are expected to hit the Street. Two of these - ResGen Limited and Systango Technologies - are expected this week itself. This comes after a brief lull in February.
The companies that are planning to launch their initial public offerings this month include Resgen Limited, Divgi Torqtransfer Systems, ITCons E Solutions, Systango Technologies. (Read More)
Nissan is speeding up its shift toward electric vehicles, especially in Europe where emissions regulations are most stringent, the company said Monday.
Nissan Motor Co. said in a statement that it will make practically all its offerings in Europe electric or series-hybrids by fiscal 2026, at 98 per cent. That's up from the previous target of 75 per cent. In Japan, the company aims to make 58 per cent of its model offerings, up from an earlier target of 55 per cent.
Hybrids have both a gasoline engine and electric motor, but a series hybrid uses the motor to power the vehicle's wheels, or powertrain. The engine powers a generator for the motor. Parallel hybrids, like Toyota Motor Corp.'s Prius, switch back and forth between a gas engine and electric motor.
Nissan's sales target in EVs and series hybrids remain unchanged for the US, at more than 40 per cent. In China the target was cut to 35 per cent from 40 per cent. That includes only pure EVs, not hybrids.
Nissan's target numbers do not include expected vehicle sales of Nissan's alliance partners, such as Renault SA of France or Mitsubishi Motors Corp., a smaller Japanese carmaker. (PTI)
Industry body Federation of Indian Chambers of Commerce and Industry (FICCI) on Monday announced the appointment of Shailesh Pathak as its secretary general.
Pathak will take over the position starting March 2023.
In a career spanning 37 years, Pathak has spent time in government as an IAS officer as well as helmed large companies in the private sector. His international exposure includes an Eisenhower Fellowship in 2000 as an emerging Indian Leader, an EU Visitor Program hosted by the European Commission 2003, and a Chevening scholarship at the University of Oxford in 2011.
Pathak has an MBA degree from IIM Calcutta in 1986 after graduating from SRCC Delhi. He has completed LLB and a Diploma in Ornithology from BNHS. (ANI)
Cryptocurrency remains one of the most booming forms of investments among young investors. However, crypto investors may land themselves in trouble amid a push by Group of 20 (G20) president India to regulate cryptocurrencies.
Reserve Bank of India (RBI) Governor Shaktikanta Das has said that some members of the G20 said that a complete ban on crypto should be considered.
At the conclusion of the two-day meeting of finance ministers and central bank governors in Bengaluru, the RBI Governor said, "There were opinions expressed saying that the option of a ban or prohibition should also be considered." (Read More)
The Essar group on Monday announced a USD 3.6 billion investment in low carbon energy transition projects in the UK and India including the production of green hydrogen and ammonia over the next five years, as it looks at a new phase of growth.
Essar Group, invested in energy, metals and mining, infrastructure and technology sectors, announced "the formation of Essar Energy Transition (EET) to drive the creation of the UK's leading energy transition hub in North West England."
"EET plans to invest a total of USD 3.6 billion in developing a range of low carbon energy transition projects over the next five years, of which USD 2.4 billion will be invested across its site at Stanlow, between Liverpool and Manchester and USD 1.2 billion in India," the company said in a statement.
The projects will include 1 gigawatt of blue hydrogen project being pursued by Vertex Hydrogen in the UK, a 1 GW of green ammonia facility targeted at the UK and international markets, and developing 1 MT of low carbon biofuels.
Vertex is building a hydrogen manufacturing unit at Essar's Stanlow refinery complex in the UK. The joint venture, in which Essar Oil UK holds 90 per cent, will produce 1 gigawatt (GW) of hydrogen per year from two units from 2026. (PTI)
Speaking on the reason for dip in Sensex and other benchmark indices, Anuj Gupta, Vice President — Research at IIFL Securities said, "Sensex and other key benchmark indices are falling for the last seven sessions because of the rising US dollar rate. In last seven sessions, US Dollar Index has risen above 105 levels and it may go up to 107 levels in near term. Major reason for US dollar gaining strength is rising US inflation concern after stronger than expected US economic date in recent weeks. This has raised concerns of US Fed officials and they are dropping hint to raise US Fed interest rates by 25 bps in upcoming three US Fed meetings." (Read More)
Automotive component manufacturer Divgi TorqTransfer Systems on Monday said it has fixed a price band of ₹560-590 a share for its ₹412-crore initial public offering (IPO).
The initial share-sale will be open for public subscription during March 1-3. The bidding for anchor investors will open on February 28.
The IPO comprises fresh issue of equity shares worth ₹180 crore and an offer-for-sale (OFS) of 39.34 lakh shares by investors and other selling shareholders, the company said.
As part of the OFS, Oman India Joint Investment Fund II, NRJN Family Trust, Bharat Bhalchandra Divgi, Sanjay Bhalchandra Divgi, Ashish Anant Divgi, Arun Ramdas Idgunji and Kishore Mangesh Kalbag will offload shares.
At the upper-end of the price, the IPO is expected to fetch a little over ₹412 crore. (PTI)
Tata group-owned Air India's order for a record 470 aircraft from Airbus and Boeing will be at a list price of $70 billion, CEO Campbell Wilson said at a press conference on Monday.
The airline plans to fund the deal with internal cash flow, equity and sale and leaseback, Wilson added.
No-frills domestic airline SpiceJet on Monday said its board has approved to transfer its cargo business to a unit for ₹2556 crore and raise another ₹2,500 crore in fresh capital by issuing securities to qualified institutional buyers. The airline said it will also convert its dues to aircraft lessor Carlyle Aviation.
Shares of Indian conglomerate ITC Ltd. have climbed to a record high, demonstrating investors may be starting to focus on stability in a market churning with concerns over corporate governance.
It’s the best-performing stock in the NSE Nifty 50 Index with a 15% gain this year, pushing its market value to nearly $57 billion. Its climb has accelerated this month, as US short seller Hindenburg Research’s allegations against the Adani Group has made Adani Enterprises Ltd. and Adani Ports & Special Economic Zone Ltd. the index’s worst performers.
Most sectors shed with Metal, IT, Media and Auto leading the drag
The start of 2023 has turned jittery for job seekers. There is a scarcity of new jobs as existing employees by tens of thousands are let go by many companies, especially by tech biggies, unicorns, and startups. So far in 2023, more than 2,700 people have lost their jobs on a daily basis. As of now, cumulatively, over 1.53 lakh people are impacted as per data. And those who have a job thankfully still under their kitty are facing either salary cuts or no hikes. Meanwhile, many are hired but are still struggling due to onboarding delays. The biggest spoilsport for this layoff winter could be macroeconomic risks and recession fears.
It's hard to find a job these days. The industry growth struggles with constraints from high inflation, geopolitical tension, rate hike cycle, multi-year low unemployment rate, the cold war between US and Russia and so much more. The major economies are feared to be at the edge of recession. (Read More)
The Indian rupee declined against the dollar on Monday on worries over the likelihood of more Federal Reserve rate hikes, but possible intervention from the central bank helped the currency remain above a key level.
The rupee was at 82.9225 to the U.S. dollar by 10:54 a.m. IST compared with 82.75 in the previous session.
The Reserve Bank of India was likely selling dollars via public sector banks on Monday to boost the rupee, traders told Reuters. The RBI has also been possibly regularly intervening in recent days, according to traders.
"If the RBI had not been around in the last several sessions, rupee would be near at least 83.50 and possibly at 84," a spot trader at a private sector bank said.
The rupee fared better than its Asian peers on Monday on the possible RBI intervention. (Reuters)
Indian apparel retailer Fabindia said it has withdrawn its 40 billion rupee ($482.43 million) initial public offering (IPO) due to rough market conditions, becoming the latest company to shelve listing plans as interest rate worries pressure stock markets.
"The decision to withdraw was taken as the current market conditions were not seen to be conducive for listing," Fabindia said in a statement on Monday.
Fabindia had planned the IPO with a fresh issue of shares worth 5 billion rupees and a sale of up to 25.1 million in existing shareholders' stock. (Reuters)
Dr Reddy's Laboratories Ltd on Monday said its subsidiary entered into a definitive agreement to acquire the US generic prescription product portfolio of Australia-based Mayne Pharma Group Limited for $105 million. The acquisition will complement Dr. Reddy’s U.S. retail prescription pharmaceutical business with limited competition products. It also supports Dr. Reddy’s efforts to accelerate and expand affordable medications for patients.
“The portfolio includes approximately 45 commercial products, four pipeline products, and 40 approved non-marketed products, including a number of generic products focused on women’s health," according to a regulatory filing.
On account of strong U?S dollar and hawkish US Federal Reserve on rising US inflation concerns, gold prices continue to remain under sell off pressure and hover around 2-month lows. Gold price today opened lower in domestic market at ₹55,397 per 10 gm and went on to hit further lower levels in early morning session. The yellow metal price corrected in international spot market as well and made intraday low of $1,806.78 per ounce in morning deals on Monday session. However, US dollar rates continued to remain strong on US Fed interest rate hike speculations. After witnessing some profit booking in early morning session, Dollar Index regained its lost ground and added 0.03 per cent and hit 105.190 levels. (Read More)
Shares of One 97 Communications (Paytm) surged more than 3% to ₹655 apiece on the BSE in Monday's opening deals as the stock is in focus on block deals news as well as reports of telecom tycoon Sunil Mittal seeking a stake in the Indian fintech firm.
Reports suggest that China's Ant Group and Japan's SoftBank Group Corp have discussed selling stake in One 97 Communications, which operates the digital payments firm Paytm, through a block deal. (Read More)
Outlook & Valuation: In the near term, management believes the performance will remain impacted due to bankruptcy filed by one of its clients and macro headwinds. However, going ahead the revenue growth is expected to be driven by improvement in deal pipeline for cloud and technology business, continued momentum in BFSI and pickup in demand from manufacturing and also uptick in deals from Europe and America region as well as focus on managing cost will aid in improving operating performance. On the financial front, we incorporated Q3 provisions made by the company as well as there are near term challenges however long term growth outlook may improve. Thus, we would revise our target price downwards to ₹341, valuing the company at 14x PE multiple on FY25E EPS basis.
BUY- CMP (Rs) 283
Target Price (Rs) 341
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: With FII selling gathering pace ( ₹3466 crores selling in the last 3 days) the market has turned distinctly weak. The global market construct too is unfavourable with sharp cuts in the US last Friday following the 0.6% MoM inflation in the US in January. The rising US bond yields - the 10 year is at 3.93% - and dollar index above 105 now are negative for EM equities. A data which is hugely significant from the Indian market perspective is the declining influence of Indian retail investors. In 2021 and 2022 sustained retail buying helped absorb FII selling and this kept the market resilient. But latest data shows that the number of retail clients are down by 38 lakhs in the last 6 months and the retail/ HNI share in daily volume is down to 44% from the peak of 68 %. This means FII activity will have a disproportionate impact on markets. Since the Indian economy continues to be strong, investors can use weakness in the market to accumulate high quality stocks in banking, capital goods, IT, cement and across sectors.
Yes Bank shares have retraced to the tune of 35 per cent in near two months after climbing to 52-week high of ₹24.75 apiece in December 2022. Yes Bank share price today opened sideways and quoted around ₹16.15 apiece in early morning deals. Those Yes Bank shareholders who are expecting trend reversal in near term, there is one more worry for them in next month.
After State Bank of India (SBI) took over the management of Yes Bank, private lenders like ICICI Bank, Axis Bank, IDFC First Bank, HDFC Bank, etc. made investment in Yes Bank with three years lock-in that is ending in March 2023. These private lenders had bought Yes Bank shares at around ₹10 apiece and despite 35 per cent dip in Yes Bank share price in last two months, these banks are at around 60 per cent profit and hence they might be prompted to book profit once their lock-in ends next month. (Read More)
Onions worth USD 523.8 million were exported during April-December 2022, a 16.3 per cent increase on a yearly basis, and there is no ban on its export from India, the Union Ministry of Commerce and Industry said.
Currently, there is no restriction or prohibition on the export of onions, and the trade policy of onions is under the 'Free' category.
"There is no ban on onion exports from India to any country and misleading statements suggesting the contrary is unfortunate. Infact, from July-December 2022, onion exports have consistently been above the USD 40 million mark every month, benefiting our Annadatas," Union commerce minister Piyush Goyal tweeted in reply to an Opposition parliamentarian's question on the overall onion trade policy.
"The policy support and reforms of the Modi Govt. have helped farmers increase yield and quality of produce. Maharashtra prides itself in being a major contributor to India's onion exports," Goyal said in the tweet. (ANI)
No-frills airline SpiceJet on Friday reported a multi-fold rise in net profit to ₹107 crore in the three months ended December 2022 whereas, the airline's revenues rose 4% to ₹2,794 crore from ₹2,679 crore in the year-ago period. Meanwhile, the company's board will meet on Monday, February 27, 2023 to consider fund raising options.
SpiceJet’s (SJ) reported EBITDAR turned positive to ₹5.9 bn (Indigo: ₹34 bn) as demand picked up amid the festive season. Additionally, return of aircrafts and a waiver on lease rental further drove EBITDAR, highlighted brokerage Nuvama Research in a note. (Read More)
India's Adani Group is in talks with global credit funds to raise up to $400 million in debt against a key Australian coal port assets that make up a large portion of its exports of the fossil fuel from Carmichael mine, the Economic Times reported.
North Queensland Export Terminal (NQXT), which is controlled by Adani family trust, is being considered to raise funds for the group, according to the report on Monday, citing sources aware of the fund-raising.
The Indian conglomerate has begun discussions with several large high-yield global credit funds, and has so far received two indicative term sheets from potential lenders which include hedge fund Farallon Capital, the report added.
Adani Group and Farallon Capital did not immediately respond to Reuters' request for comments.
Reuters recently reported Australia's corporate regulator said it would review a short-seller report that had flagged a wide range of concerns about the Adani Group. (Reuters)
The Indian rupee is likely to decline versus the dollar after one more measure of U.S. inflation topped forecasts, heightening concerns over how high the Federal Reserve will raise interest rates.
The non-deliverable forward indicates that the rupee will open at 82.85-82.90, compared with 82.75 in the previous session.
The dollar index and U.S. yields soared on Friday, while shares plunged on mounting worries over the inflation outlook. The dollar index rose above 105 to its highest in about seven weeks while the 2-year Treasury yield climbed to a level last seen in November.
Data released on Friday showed that the core U.S. personal consumption expenditures (PCE) price index, the Fed's preferred inflation gauge, shot up 0.6% month-on-month in January, the largest increase since June 2022. That was thrice the pace in December and above 0.4% expected by economists polled by Reuters. (Reuters)
Twitter Inc has laid off at least 200 employees, or about 10% of its workforce, the New York Times reported late on Sunday, in its latest round of job cuts since Elon Musk took over the micro-blogging site last October.
The layoffs on Saturday night impacted product managers, data scientists and engineers who worked on machine learning and site reliability, which helps keep Twitter's various features online, the NYT report said, citing people familiar with the matter.
Twitter did not immediately respond to a Reuters request for comment.
The company has a headcount of about 2,300 active employees, according to Musk last month.
The latest job cuts follow a mass layoff in early November, when Twitter laid off about 3,700 employees in a cost-cutting measure by Musk, who had acquired the company for $44 billion.
Musk said in November that the service was experiencing a "massive drop in revenue" as advertisers pulled spending amid concerns about content moderation. (Reuters)
Japan's SoftBank Group Corp and billionaire Jack Ma-backed Ant Group have discussed selling stake in digital financial services firm One97 Commuications, which operates under the Paytm brand, through a block deal, Reuters quoted a report on Monday.
Shareholders and investment banks representing the Ant Group and Softbank had earlier approached telecommunications tycoon and Bharti Airtel founder-chairman Sunil Mittal with an offer to buy their stakes, the report said. (Read More)
Shares of Rhetan TMT Limited are one of the multibagger stocks that Indian stock market has delivered in last one year. The BSE listed company has announced issuance of bonus shares and stock subdivision in March 2023. The board of directors of the company has fixed 10th March 2023 as record date for finalisation of eligible shareholders for issuance of bonus shares and stocks after split. The company board has already announced bonus shares in the ratio of 11:4 and stock split in 1:10 ratio.
This means, the multibagger stock will allot 11 bonus shares to its eligible shareholders for every 4 shares held by its shareholders whereas one stock of the company will split into 10 stocks leading to rise in shareholding of the eligible shareholders to 10 times of current shareholding before stock split. (Read More)
Rain Industries, Vesuvius India, and Foseco India will be among the stocks in focus as they will declare their December quarter earnings today. (Read More)
Pakistan's government has agreed to increase the policy interest rate by 2% or 200 basis points to meet another condition set by the International Monetary Fund (IMF) to unlock USD 1.1 billion of the bailout package. Currently, the rate stands at 17%, according to The Express Tribune.
The decision by Pakistan authorities will push the interest rate to 19%, just below the previous record of 19.5% set in October 1996. Sources in Pakistan's Ministry of Finance said that a technical-level discussion had virtually taken place between Islamabad and the IMF review mission. (Read More)
Highly leveraged Indian tycoons are having a rough time. Gautam Adani’s $236 billion infrastructure empire has shrunk by more than three-fifths in a month. But while his relentless rise and spectacular fall hog headlines, a smaller storm may be brewing for another well-known magnate. Anil Agarwal’s once-London-listed Vedanta Resources Ltd. has a pile of debt, including a $1 billion bond due January. Yet, his most recent attempt to trim the load has upset the one partner he can’t afford to annoy: New Delhi.
Around this time last year, when the US Federal Reserve was still to begin raising interest rates to tame inflation and Russia’s war in Ukraine had started to send commodities surging to their best quarter in more than three decades, Agarwal was toying with the idea of merging debt-laden Vedanta Resources with its cash-rich, Mumbai-listed unit, Vedanta Ltd. That plan, which was reported by Bloomberg News, didn’t go anywhere. (Read More)
Indian Railways is exploring a new public-private partnership (PPP) model to attract private investment to redevelop railway stations, two people aware of the development said. Under this model, investors would receive up to 40% of the total project cost as viability-gap funding (VGF) and be allowed to use the space above platforms and tracks commercially.
The Rail Land Development Authority (RLDA), an Indian Railways unit, plans to run pilots at 15 stations, including Vijayawada and Anand Vihar, the people cited above said on condition of anonymity. Based on the experience, the model will be finetuned and implemented across other major stations, they added. (Read More)
US stocks suffered from daily losses last Friday, witnessing heavy selling pressure and extended its weekly rout following data that showed the core PCE rose at the highest rate in six months. The US dollar continue to remain strong as the Dollar Index sustained above 105 levels despite profit booking trigger in early morning deals on Monday. Signaling further weakness in Indian stock markets, SGX Nifty has opened lower at 17,505.
Here we list out key global market triggers that may dictate Indian stock market today: (Read More)
Food Corporation of India (FCI) has sold 18.05 lakh tonne of wheat in open market after the government decided to augment the supply of foodgrain in the markets to contain the rising wheat and wheat flour prices.
Of the sold wheat at three auctions that were held so far, about 11 lakh tonne of wheat has already been lifted by successful bidders which is available in the market.
On January 25, the government announced its agency FCI would offload 30 lakh tonnes of wheat from the central pool in the markets under the Open Market Sale Scheme, within the next two months, to contain the rising domestic prices of the staple foodgrain.
The commencement of the e-auction of wheat in the open market to cool the staple food grain's prices has already left an impact as the government said the prices retreated over 10 per cent in the past week. (ANI)
Oil was little changed in early trade on Monday, as Russia's plans to deepen oil supply cuts continued to support prices, while increasing global inflation risks and rising crude inventories in the United States weighed.
West Texas Intermediate U.S. crude futures (WTI) was trading at $76.36 a barrel, 4 cents, or 0.05% higher, while Brent crude futures was down 2 cents, or 0.02%, at $83.14 a barrel at 0114 GMT.
Russia plans to cut oil exports from its western ports by up to 25% in March versus February, exceeding its previously announced production cuts of 5% of its output during the month.
Despite oil inventories in the United States at their highest since May 2021, the U.S. Federal Reserve meeting signalling further monetary tightening and a strong rally in the dollar last week, prices edged higher early on Monday before paring some gains.
"Oil looks like it wants to stay in a trading range until we have a clearer outlook with China's COVID reopening and on how bad of a recession the Fed will induce for the U.S. economy," said Edward Moya, an analyst at OANDA. (Reuters)
The Reserve Bank of India (RBI) is keeping a close eye on loans to the Adani group, with regulatory officials directing lenders to provide weekly updates on their financial exposure to the group’s enterprises, a person aware of the development said.
Last month, RBI asked banks to share data on exposure to the Adani group after US-based short seller Hindenburg Research alleged accounting fraud and stock manipulation at its companies. While the conglomerate has strongly denied the allegations, the group has shed more than $120 billion in market value since the allegations were made on 24 January. (Read More)
Hindustan Zinc Ltd (HZL) should explore alternative financial strategies other than handing out cash for the proposed $2.98 billion acquisition of Vedanta Ltd’s zinc assets, a government official aware of the plans said.
The government may ask HZL to consider share swaps, warrants or rights issues to purchase these assets rather than using cash reserves, the official said on condition of anonymity.
“We understand that the company needs to acquire mines to grow its business, but that should not be done through a cash acquisition. There are these options which the company can exercise. The government is a stakeholder in the company and has the right to cash reserves, and we will not let them use it for a related-party transaction," the official said. (Read More)
Another cold reminder that inflation remains hotter than hoped sent Wall Street skidding Friday, and stocks closed out their worst week since early December.
The S&P 500 fell 1.1% to cap its third straight weekly loss. The Dow Jones Industrial Average dropped as many as 510 points before closing down 336 points, or 1%, while the Nasdaq composite lost 1.7%.
Stocks have dropped through February as a stream of reports have shown everything from inflation to the job market to spending by shoppers is staying hotter than expected. That’s forced Wall Street to raise its forecasts for how high the Federal Reserve will have to take interest rates and then how long to keep them there.
Higher rates can drive down inflation, but they also raise the risk of a recession because they slow the economy. They likewise hurt prices for stocks and other investments.
The latest reminder came Friday after a report showed that the measure of inflation preferred by the Fed came in higher than expected. It said prices were 4.7% higher in January than a year earlier, after ignoring costs for food and energy because they can swing more quickly than others. That was an acceleration from December’s inflation rate, showing the wrong momentum, and it was higher than economists’ expectations of 4.3%.
It echoed other reports from earlier in the month that showed inflation at both the consumer and wholesale levels was higher than expected in January. (AP)
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