PremiumBenchmark Indian share indices ended firm on Friday led by strong gains in banks & financial services, tech and auto stocks. Asian and European shares rose today as investors took comfort from Federal Reserve minutes showing a pause to its rate hikes is on the cards later this year.
Benchmark Indian share indices ended firm on Friday led by strong gains in banks, IT and auto stocks. Markets rose globally as easing bets about aggressive interest rate hikes by central banks lifted sentiment. Sensex surged 632 points to end at 54,884.66. The 30-share index hit a high of 54,936.63 intraday.
Nifty rose 1.1% to settle at 16, 352. Barring metals, all sectoral indices ended in the green with the Nifty IT soaring 2.5%. Midcap and smallcap indices also logged strong gains in line with the positive sentiment across markets.
On the Sensex, Tech Mahindra, Wipro, Indusind Bank and Bajaj Finance led the pack with 3-4% gains. Seven stocks closed in the red with NTPC, Bharti Airtel and Power Grid being the biggest laggards
The board of directors of the company has approved the sale and transfer of the its Large Drives Applications business to Siemens Large Drives India Private Limited, a subsidiary of Siemens Large Drives GmbH, which in turn is a subsidiary of Siemens AG, as a going concern on a slump sale basis, with effect from 1 July, 2022, for a cash consideration of ₹440 crore
Investors added about $20 billion to global stocks in the week to May 25, led by inflows into the US, according to Bank of America Corp.’s note citing EPFR Global data. Cash led the inflows among asset classes with about $28 billion, signaling market participants continue to search for havens. Bond fund outflows reached $5.8 billion. (Bloomberg)
The Reserve Bank of India (RBI) said that it is proposing to adopt a graded approach towards the launch of central bank digital currency (CBDC) in the country to ensure conformity objectives of monetary policy, financial stability and efficient operations of currency and payment systems.
Net profit in January-March at ₹2,683.11 crore was higher than ₹1,907.67 crore in the same period a year back, according to the company's regulatory filing. Revenue from operations rose to ₹26,968.21 crore from ₹15,549.07 crore in January-March 2021.
Qubo, Hero Electronix’s consumer technology brand, has ventured into the Auto Tech space with the launch of their new product, Qubo Smart Dash Cam which will go live for sale starting today. In the two years since its launch, Qubo has launched wide range of products including connected devices like smart cameras, video doorbells, smart locks, and other smart home accessories. These products leverage proprietary hardware, software, and AI models built by Qubo.
Gold’s performance as a safe asset among other asset classes has improved in the recent phases of financial cycles, the Reserve Bank of India (RBI) said in its annual report for 2021-22 on Friday. According to the central bank, gold is a unique asset with attributes of financial assets.
“Gold acts as a diversifier and is a vehicle to mitigate losses in times of market stress. Gold has delivered positive returns over the long run, often outperforming other major asset classes (see chart)," it said in the annual report. (Read here)
Global markets climbed Friday following a strong performance on Wall Street, with Hong Kong leading the way. Nikkei 225 closed 0.7% up; Hang Seng Inde rose 2.9%; Shanghai - Composite gained 0.2%. European stocks followed Asian shares higher, heading for the best weekly advance since mid-March. Stoxx Europe 600 rose 0.3%
Income went up to ₹5,786.65 crore in the quarter from ₹3,360.07 crore in the year-ago period.
The Reserve Bank of India (RBI) on Friday said it was concerned about the systemic risks that come with the involvement of large technology companies in the financial sector. The central bank is, therefore, exploring a policy framework for digital banking, fintechs and such BigTechs in FY23.
India has the potential of becoming a global drone hub, said Prime Minister (PM) Narendra Modi at the inauguration of the two-day Drone Festival of India 2022 in New Delhi.
“The enthusiasm we are seeing in drone technology in India is amazing. This energy is an indicator of the huge leap in drones-as-a-service and drone dependent industries. It also reflects the emergence of a potential employment generating sector in the country,“ he said.
In its board meeting held today, the company board recommended a divided of ₹5 (250%) per share for FY2021-22.
Hindalco reported a strong set of numbers with consolidated revenue increasing by 38% YoY and 11% QoQ at ₹55,764 Cr in line with our estimate of ₹54,697 Cr. EBITDA stood strong at ₹7,597 Cr, up 30% YoY, flat QoQ, and in line with our estimate. The YoY growth was led by higher EBITDA from Aluminium India on the back of strong Aluminium prices. Flat EBITDA performance QoQ was led by the drop in Novelis' EBITDA mainly due to higher energy prices in Europe. Adjusted PAT stood strong at ₹3,851 Cr, up 100% YoY and 5% QoQ, but missed our estimate due to higher depreciation and interest expense. Deleveraging continued in the quarter with Net Debt at ₹39,096 Cr as of Mar’22 vs ₹43,733 Cr as of Dec’21, with Net-debt to EBITDA improving to 1.36x in Q4FY22 vs 1.62x in Q3FY22. The company declared a dividend of ₹4/share at a 6.5% payout ratio
The company had registered standalone net profit at ₹71.63 crore during corresponding quarter previous year. Total income for the quarter under review was at ₹1,396.72 crore, as against ₹1,461.44 crore registered in corresponding quarter last fiscal.
While ZEEL’s top-line was ahead of our estimates on the back of higher theatrical revenue from success of movies like The Kashmir Files & Valimai, EBITDA margin of 20.9% was broadly in-line with our estimate of 21.2%. We cut our EPS estimates by 11%/13% for FY23E/FY24E as 1) domestic ad-environment is weak due to rising inflationary pressure faced by FMCG companies 2) persistent growth challenges in the subscription business due to pricing embargo and 3) near term margin headwinds given continued investments in ZEE5.
While there are near term challenges, ZEEL is taking steps to improve viewership share (90+ new shows launched in FY22) in linear business and is seeing improved traction in ZEE5 (revenue up 50.1% YoY) which should yield results over long term. We expect revenue/PAT CAGR of 9%/21% over FY22-24E and retain BUY with a revised TP of Rs358 (22x FY24 EPS after incorporating SPNI consolidation impact).
Shares of Colgate Palmolive (India) Ltd. have declined more than 5% in the last one year in complete contrast to the 9% appreciation in its sectoral index, Nifty FMCG (fast-moving consumer goods). The company’s falling market share and muted growth have been causes of concern. (Read more)
The Indian economy renewed its tryst with the recovery from the pandemic in 2021-22, albeit interrupted by a virulent second wave of infections and a relatively milder third wave, said the Reserve Bank of India (RBI).
High frequency indicators already point to some loss of momentum in the recovery that has been gaining traction from the second quarter of 2021-22. Furthermore, steadfast policy support put a floor underneath aggregate demand and economic activity. Thus, as per RBI, the experience of 2021-22 has yielded valuable lessons that will illuminate the path of the Indian economy in the year ahead.
Headline inflation spiked on repetitive supply shocks during the year, though reversion to the target was also evident as shocks receded, RBI said on its Annual Report for 2021-22 released on Friday.
The monetary policy remained accommodative and fostered congenial financial conditions for the recovery to take root, while being vigilant that inflation remains within the target going forward.
With aluminium and alumina prices coming off the peak, we revise our price assumptions downwards (alumina has corrected from the peak of $500/tn in Mar’22 to spot at $363/t) and cut our EBITDA estimates for FY23/24E. We reduce our TP to ₹107/share from ₹150/share against the CMP of ₹93/share and maintain our BUY rating. We continue to value the company at 5.5x FY24 EBITDA and 0.5x book value of CWIP. TP implies an upside potential of 15% from the CMP.
Shares of Page Industries Ltd surged around 7% on the NSE in Friday's early trade. The Street has given a thumbs-up to the company's Q4FY22 earnings performance. Revenue at Rs1,111 crore and operating margin at 24%, exceeded consensus estimates of Rs1,061 crore and 20.5%, respectively.
The Reserve Bank of India's primary focus is to bring inflation down closer to target but it cannot disregard the concerns around growth, governor Shaktikanta Das told newspaper Economic Times in an interview published on Friday.
"We are committed to containing inflation. At the same time, we have to keep in mind the requirements of growth. It can't be a situation where the operation is successful and the patient is dead," Das said.
LME copper extended losses to a 3rd session on Thursday as concerns grew that the global economy might plunge into a recession and dampen demand for industrial metals.
LME 3-month copper was down 0.5%, while the July contract on the SHFE fell 0.2% on Thursday. Prices of most other base metals also fell on both the Shanghai and London exchanges.
The gloomy economic outlook for top metals consumer China as it struggles to contain COVID-19 outbreaks, and ongoing policy tightening by global central banks kept upside capped.
Chinese Premier Li Keqiang held a rare high-profile meeting this week to support the economy, saying the country would strive to achieve reasonable growth in the second quarter and stem rising unemployment, the official Xinhua news agency reported. LME base metals could remain under pressure this Friday morning in Asian trade as China’s economic slowdown woes could dent demand
Domestic metals prices could open weaker this Friday morning tracking overseas prices.
Today’s MCX copper May contract range is 766.47-775.07. Aluminium May contract range is 239.75-243.10.
The Insurance Regulatory and Development Authority of India (Irdai) has notified third-party premium rates for private four-wheelers and two-wheelers for the financial year 2022-23. The premium for third-party cover will go up from 1 June. These rules will be known as the Motor Vehicles (Third Party Insurance Base Premium and Liability) Rules, 2022.
Singapore-based telecom firm Singtel is ireportedly n talks with Bharti Airtel chairman Sunil Mittal to sell its 2-4 per cent stake in the company, a source aware of the development told PTI
The company reported a consolidated net profit of ₹150.5 crore in the three months through March, as against a loss of ₹510.4 crore in the same period last year. In its financial services business, AUM increased 33% year-on-year (y-o-y) to ₹65,185 crore in Q4. The share of retail in the overall loan book increased from 12% in March 2021 to 36% in March 2022, with the retail book growing 306% y-o-y to ₹21,552 crore.
U.S. equities ended higher after strong results from retailers lifted sentiment across the market.
Domestic equities ended higher on Thursday following positive cues across U.S markets. Nifty increased 0.9%, while Nifty Mid-Cap and Nifty-Small Cap were up 1.3% and 0.8% respectively. All sectoral indices ended in green except Nifty FMCG (-0.2%). Nifty PSU Bank increased the most at 3.2%, followed by Nifty Metal and Nifty Bank which climbed 2.7% and 2.2% respectively. The news flow on the Russia-Ukraine war and surging COVID cases in China continue to remain in focus.
As investors await on the last leg of earnings results which will end by this week, the primary focus in the coming weeks will be on the central banks’ policy measures to stabilise inflation. Changes in oil prices and amendments to import and export duties might play a role in assessing the market’s trajectory. However, continuous FII sale and plunging rupee, are likely to have economic implications in the near-term. Globally, the Russia-Ukraine crisis and supply chain disruptions continue to impact global and Indian equities. The markets are likely to see gap up opening, SGX Nifty is up 72 points compared to yesterday’s spot Nifty closing. Asian markets are trading in green, Nikkei is up 0.63%% while Heng Seng is up 2.9%.
The government called off the strategic sale of Bharat Petroleum Corp. Ltd (BPCL) after companies that showed initial interest in buying the country’s second-largest state-run refiner changed their minds as the outlook for Indian refiners soured because of the pandemic and soaring global energy prices that forced them to sell fuel below cost. (Read here)
Torrent Pharmaceuticals on Thursday said it has inked a pact to acquire four brands from Dr Reddy's Laboratories. These are Styptovit-E, Finast, Finast-T and Dynapress. Financial details were not disclosed.
Gold was little changed on Friday, but the metal was on track for a second weekly gain following a retreat in the US dollar from 20-year highs.
Spot gold held its ground at $1,848.59 per ounce. US gold futures were little changed at $1,846.70. For the week so far, bullion is up 0.2%.
Aarti Industries, Gail India, General Insurance, Glenmark Pharma, Godrej Industries, JSW Steel, Jindal Steel, Lemon Tree, PB Fintech, Oil India, Jubilant Industries, Nykaa, and Ruchi Soya are some of the companies that will also be in focus as they announce their earnings today. (Read here)
Recent government measures to rein in steel prices might price hikes for automobiles, but will not lead to lower prices, as input cost pressures remain elevated, automakers said.
Over the weekend, the union finance ministry imposed 15% export duty on steel, which constitutes more than 80% of a truck’s raw material and about 75% for cars. With enough steel stocks available in the domestic market, automakers expect to get a better deal from steel manufacturers in the next quarter.
Oil prices eased slightly in early Asian trade after surging to a two-month high in the previous session as investors focused on signs of tight global supply.
Brent crude futures fell 11 cents to $117.29 a barrel. WTI crude futures for July delivery fell 19 cents to $113.90 a barrel.
Troubled by complaints about alleged coercive action by tax inspectors, the Central Board of Indirect Taxes and Customs (CBIC) has warned of disciplinary action against officials facing complaints of high-handed behaviour.
CBIC clarified that recovery of tax dues can be made only after issuing a notice and an adjudication order. (Full report)
Indian stock indices may open higher on Friday tracking SGX Nifty which was in the green. Markets had closed higher on Thursday, after snapping a three-day losing streak. Sensex ended at 54,252.53, up 503.27, while Nifty settled at 16,170 points, up 0.9%.
Stocks in Asia were buoyed Friday by a rebound on Wall Street and better-than-expected earnings at Chinese technology companies. Nikkei 225 index was up 1.29%; Australia’s S&P/ASX 200 Index rose 1.1%; Hang Seng Index gained 2.6%; Shanghai Composite Index rose
US shares rose on Thursday and the dollar edged lower, a day after minutes from the Federal Reserve's May meeting indicated the central bank would remain flexible and might pause rate hikes later in the year.
The Dow Jones Industrial Average rose 516.91 points, or 1.61%, to 32,637.19; the S&P 500 ained 79.11 points, or 1.99%, to 4,057.84; and the Nasdaq Composite added 305.91 points, or 2.68%, to 11,740.65.
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