PremiumDespite high expectations of a relief rally on Dalal Street after the SVB First Citizens BancShares deal, the Indian stock market had a topsy-turvy day. Most of the Asian shares ended higher with Tokyo and Hong Kong ending in the green, while Mainland China closed lower on Tuesday.
Indian shares reversed early gains on Tuesday and ended marginally in the red amidst high volatility, as broader economic challenges soured sentiment, while investors waited for some key economic data due later in the week.
The Nifty 50 index was dragged down more due to its exposure to Adani stocks as it shed 35 points to close at 16,951. S&P BSE Sensex shed 40 points to end at 57,613. Both benchmarks had gained nearly 0.5% during the session.
Most of the major sectoral indexes declined with the Media and Realty shedding more than a per cent each. IT, Metal and Auto were among other prominent laggards. Bank indices gained marginally.
Adani Enterprises and Adani Ports shed the most with the former dropping 7% and the latter shedding more than 5%. Tech Mahindra, Hero MotoCorp and Tata Motors also dragged more than 2%. UPL and IndusInd Bank jumped 2% each, and Dr Reddy's by 1.25%.
Asian shares were mostly higher on Tuesday as investors got some relief from worries over troubled US banks with a planned takeover of failed Silicon Valley Bank.
Japanese shares ended higher on Tuesday as bank stocks rose after worries over the global financial system eased, following a deal of Silicon Valley Bank. The Nikkei edged up 0.15%, while the broader Topix ended 0.25% higher.
Hong Kong stocks rose on Tuesday, as investor fears of deeper banking stress were eased. Chinese shares, however, were dragged lower by information technology companies.
Hong Kong's benchmark Hang Seng Index climbed 1.1%, and the China Enterprises Index added 1.2%. China's blue-chip CSI300 Index closed down 0.3%, while the Shanghai Composite Index lost 0.2%.
European stocks advanced along with Asian equities and the dollar traded lower as fears of broader contagion from the banking turmoil eased.
UK's FTSE 100 extended gains on Tuesday, following reassuring comments by Bank of England (BOE) Governor Andrew Bailey on the stability of the banking sector, while shares of energy heavy-weight BP jumping 2% also lifted investor sentiment.
Nilesh Bhaiya, Analyst - Consumer Durables and Capital Goods of BNP Paribas:
· Summer-led demand yet to play out; dealers remain optimistic
Our channel checks suggest that consumer durables retailers saw fewer footfalls post the Holi festival, as many regions had unseasonal rains. Note that February had started on a strong footing with dealers starting to build Air Conditioner (AC) inventory levels. Channel partners are optimistic of a demand revival for seasonal products like ACs and Refrigerators. Air coolers too have received higher shelf space and consumers are preferring premium products to entry-level products. In the AC segment, Daikin is seeing strong traction, while in Refrigerators, Samsung has gained volume market share.
· Cables and wires – Copper price correction could restrict channel stocking
Tempted by a sudden jump in copper prices in the end of 3QFY23, dealers stocked up on inventory. Demand continues to be good for cables and wires, despite a 5-6% price increase over the past two months. However, copper prices have fallen c7% over the past one month and dealers are expecting prices to correct further, given the global macro volatility. Our channel checks suggest that dealers and distributors are reluctant build up a higher inventory. Thus, any sharp correction in copper prices could offset volume growth in cables and wires. We think this is negative for Polycab, which we expect to offer the lowest earnings growth in our coverage universe over FY23-25 thanks to the high-base effect.
· Crompton struggling in key segments of fans, lighting and pumps
Fans: In 3QFY23, Crompton missed a channel-restocking opportunity, while peers such as Havells, Orient and Bajaj Electricals flooded the channel with non-rated fans. Thus, dealers carry a higher inventory of non-rated fans, which would be exhausted in early summer before dealers start selling the new energy-efficient fans. Therefore, as Crompton misses out on sales of non-rated fans, we think it will lag peers in the fans segment and risk losing volume market share in the upcoming summer. Lighting: There is a risk of price wars with new players (e.g. Indiabulls, BPL) entering the market. Pumps: Even in this segment, we expect Crompton to face higher competition from new entrants. Overall, we think Crompton is on the back foot in key categories and its volume market share and margin profile should be under pressure in the near-term.
· Prefer White Goods over Cables
In general, we are noticing an uptrend in competition across key categories while demand remains weak. The Cables and Wires segment looks best positioned. However, valuations of White Goods and FMEG companies offer higher upside, while we see a downside risk for Cables and Wires companies. HAVL and WHIRL remain our top picks, while VOLT is our preferred play for the summer. We maintain REDUCE on POLYCAB due to its rich valuations.
Credit Suisse Group AG investors are being urged to vote against a share-based transformation award for executives and ratifying the actions of the board of directors and management at the upcoming annual general meeting.
Proxy advisers Glass Lewis, Institutional Shareholder Services (ISS) and Ethos Foundation are all recommending against the equity-based retention award as well as the discharge of the board and senior management for the fiscal year 2022, according to reports obtained by Bloomberg News.
UBS Group AG agreed to buy Credit Suisse for 3 billion Swiss francs ($3.3 billion) in a historic deal earlier this month after years of scandals, losses and failures in risk control weakened the bank. The government-brokered emergency deal was aimed at putting an end to a crisis of confidence at Credit Suisse that had started to spread across global financial markets.
Credit Suisse declined to comment. (Bloomberg)
Adani's cement stocks on Tuesday recorded a steep selloff. Both Ambuja Cements and ACC stock have dipped by around 4% each. The slippery slope in Ambuja and ACC comes after the Gautam Adani-backed group released its blueprint for future goals in the cement business. The conglomerate plans to double capacity, focus on high growth states, ramp up demand, increase shares in various verticals, and diversify asset footprint were some of the few major goals.
Ambuja stock traded near its day low currently. At the time of writing, Ambuja Cements traded at ₹357 apiece down by ₹12.75 or 3.45% on BSE. The stock has shed at least 4.2% with an intraday low of ₹354.20 apiece earlier in the day. The company's market cap is over ₹71,036 crore as of now. (Read More)
In a move to boost derivative trading in Sensex and Bankex indices, stock exchange BSE has tweaked the lot size and expiry day of monthly, weekly and long-dated futures and options contracts. This will come into effect from 15 May this year, BSE said in a statement.
The stock exchange said that the lot size for futures and options contracts of Sensex has been reduced to 10 from 15 earlier. For the Bankex index, the lot size for futures and options contracts has been changed to 15 instead of the existing 20. (Read More)
Embassy Office Parks REIT on Tuesday said it has agreed to acquire a 1.4 million square feet office property in Bengaluru for an enterprise value of ₹334.8 crore.
The acquiree, Embassy Business Hub is a 59-acre business park situated in North Bengaluru and is close to both the airport and Embassy REIT's flagship property Embassy Manyata.
In a regulatory filing, Embassy REIT announced the acquisition of Embassy Business Hub for an aggregate enterprise value of ₹334.8 crore, with exclusive ownership rights to about 1.4 million square feet of leasable area on full completion.
It plans to primarily fund the acquisition through debt at 8.1 per cent interest cost per annum, for which it has secured binding commitments from leading financial institutions.
Embassy REIT is acquiring Embassy sponsor's affiliates' share of 1.4 million square feet total leasable area, of which 0.4 million square feet is nearing completion and 93 per cent pre-committed to Philips, a global electronics major and the balance one million square feet, is in early stages of development. (PTI)
Markets regulator Sebi has simplified the procedural requirements for onboarding of Foreign Portfolio Investors (FPIs) in a bid to facilitate ease of doing business and to reduce the time taken for their registration.
The regulator allowed designated depository participants (DDPs) to grant FPI registration on the basis of scanned copies of application forms and supporting documents, according to a circular issued on Monday.
Granting of registration on the basis of scanned copies has been allowed but trading can only be activated following the verification of the physical documents, it said. (Read More)
The government is working to bring down logistics cost to GDP to 7.5 per cent from the current 13 per cent, Union Home Minister Amit Shah said Tuesday.
Addressing the annual session of Assocham, Shah said, without the development of the country's infrastructure and reduction of logistics costs, development was not possible.
The logistics cost in India is 13 per cent to the GDP as compared eight per cent in the rest of the world, making it difficult for Indian exports to compete globally, he said. (Read More)
Russian oil sales to India surged more than twentyfold last year as European buyers turned to other markets following the conflict in Ukraine, Russia's deputy prime minister said Tuesday.
"Most of our energy resources were redirected to other markets, to the markets of friendly countries. If for example we take oil supplies to India, they increased 22 times last year," Deputy Prime Minister Alexander Novak said in comments carried by Russian news agencies. (Read More)
Brokerages including Emkay Global, Motilal Oswal, Axis Securities and Sharekhan have reiterated their 'buy' call on Dalmia Bharat Ltd, considering its strong growth potential led by capacity additions. Their target prices on the stock range between ₹1,750 and ₹2,260, implying an upside of up to 21 per cent from the current market levels. Dalmia Bharat shares closed at ₹1,858.90 on Monday. The stock was trading 1.73 per cent lower at ₹1,836.95 apiece on Tuesday. (Read More)
Prices in UK stores have soared to another record high in a sign that the cost-of-living crisis is far from over.
The inflationary crunch has prompted shoppers to buy fewer items, according to one of the country’s best-known online grocers. Ocado Group Plc said Tuesday morning that average basket sizes at its tie-up with Marks & Spencer Group Plc fell by 7.5% to 45 items in the first quarter.
Market data shows that British shoppers are increasingly turning to discount grocers. Lidl was the fastest-growing supermarket during the four weeks to March 19, Kantar said Tuesday, with sales rising by 25.8%.
Meanwhile, Aldi’s market share reached another all-time high. The two German discounters have a combined market share of 17.3%. (Bloomberg)
India reported 1,573 new covid-19 cases in the last 24 hours with daily positivity rate at 1.30%, the union health ministry said on Tuesday. The country has recorded more than 44.8 million covid cases, and over 530,841 deaths so far.
Covid cases have been increasing across the country with Karnataka reporting 812 active cases, and Kerala 2,662 cases. Maharashtra has 2212 active cases, Gujarat 1,849 cases, and Delhi recorded 538 cases. Tamil Nadu has 634 active cases and Himachal Pradesh 495 cases.
Scientists said that XBB.1.16 is the covid-19 variant responsible for the present surge in covid cases. However, scientists said people in India have developed hybrid immunity due to vaccination and natural infection, therefore, the present covid-19 variant will not lead to hospitlaistaion and severity as it is mild in nature. The government though has suggested people to wear masks in crowded places and complete their vaccination doses if not done yet. (Read More)
India's potential growth could be bolstered with a faster implementation of an already existing ambitious reform agenda, stated a recent World Bank report.
The report also stated that laying emphasis on the aftermath of financial sector distress could unlock significant growth. It highlighted the less developed financial system of India compared to its peers. Stating that the financial system was functioning with a massive state presence, the report suggested India to rationalise the role of public sector banks, ensure a level playing field in the banking sector, and promote the development of capital markets. (Read More)
A Kotak Mahindra Bank arm on Tuesday announced that it has raised USD 1.25 billion for its second special situations fund.
The money raised will be deployed in equity, debt capital and hybrid instruments across sectors, a statement from Kotak Investment Advisors (KIA), the arm of the private sector lender, under which the fund comes, said.
The overall targeted amount for the second fund, which will be domiciled in the GIFT City, is USD 1.6 billion.
The second fund, which comes after the deployment of USD 1 billion in the first fund, will "provide strategic solution capital across growth and value companies", it said.
Abu Dhabi Investment Authority, Singapore's GIC and family office Premji Invest, who were among the backers for the first fund, have committed money for the second fund as well.
Infosys shares have been in a downtrend for the last year except for some pullback action from the last week of September 2022 to the end of November 2022. Infosys share price today opened with am upside gap and went on to hit intraday low of Rs1,382.90 apiece levels, which is near 2 per cent away from its 52-week low of ₹1,355 apiece on NSE.
According to stock market experts, after the eruption of a series of bank crises in the US followed by Credit Suisse's collapse in Europe, Indian IT stocks, especially large-cap leaders like Infosys are under sell-off heat. They said that due to the bank crisis in the US, IT companies based in India are expected to lose a good amount of business in upcoming quarters. So, the current 52-week low looks weak and the stock may further go down towards ₹1,240 levels in the short to medium term. They said that Nifty IT index is also looking sideways to weak as the index is below 28,000 and it may further go down towards 26,200, its previous lower levels. (Read More)
All the ten listed companies of the Adani Group were trading in the negative territory on Tuesday, with Adani Power, Adani Transmission, Adani Green Energy and Adani Total Gas falling nearly 5 per cent each.
Shares of Adani's flagship entity, Adani Enterprises were trading 7.53 per cent lower at ₹1,593.30 apiece, while Adani Ports and Special Economic Zone fell 8.89 per cent to trade at ₹573.20 per share.
Shares of Adani Power tumbled 5 per cent, Adani Transmission tanked 5 per cent, Adani Green Energy slipped 4.93 per cent and Adani Total Gas fell 5 per cent on the NSE.
Meanwhile, the stock of Adani Wilmar dived 4.99 per cent, NDTV slumped 4.73 per cent, ACC was down 4.45 per cent and Ambuja Cements 3.43 per cent.
Last week, a report published by Bloomberg Media Studios in partnership with DBS, the largest bank in Southeast Asia, revealed that while 85 per cent of medium-sized and 75 per cent of small companies state that ESG (environmental, social, and corporate governance) is a high priority, only 37 per cent have a clear roadmap on how to achieve their goals.
The report published in the form of an e-book and titled "Catalyst of Sustainability", was a result of a survey conducted in August last year involving 800 SMEs (small and medium-sized enterprises) across six markets in Asia namely India, China, Taiwan, Hong Kong, Indonesia and Singapore. (Read More)
IMK Capital, a leading private equity firm, has announced its investment in AVPL, a fast-growing technology company, at a valuation of 500 Cr. This strategic investment will enable AVPL to accelerate its growth and expansion plans, bolster its research and development efforts, and enhance its product offerings.
AITMC Ventures Pvt limited (AVPL) is a company focused on vocational training and skill development. Founded in December 2016 by Deep Sisai, a first-generation young entrepreneur, AVPL has set its focus on promoting self-employment by facilitating the training of 350,000 drone pilots through government schemes and NBFCs. This initiative aims to provide assistance to farmers across 660,000 villages in India. In addition, the company plans to establish 33 centres of excellence for agriculture and drone trainings in India and abroad.
With this investment from IMK Capital, AVPL is well-positioned to leverage its technological expertise to tap into new markets and cement its position as a market leader in the logistics technology space. (ANI)
Bullish bitcoin has been a surprise winner of the banking blowout. Yet investors aiming to amp up their bets face an ominous obstacle: a lack of liquidity that could trigger wild price swings.
The price of the No.1 cryptocurrency has jumped 40% to around $27,700 since March 10, when the failure of Silicon Valley Bank (SVB) careered into mainstream markets.
On the flip side, though, its liquidity is drying up.
Bitcoin's market depth indicates the asset is at its lowest level of liquidity in 10 months, even lower than in the aftermath of the FTX collapse in November, according to data provider Kaiko. The market depth for the two leading trading pairs - bitcoin-dollar and bitcoin-tether - stands at 5,600 bitcoin, the equivalent of about $155 million, Kaiko said. (Reuters)
Retirement fund body EPFO fixed 8.15 per cent rate of interest on employees’ provident fund (EPF) deposits for 2022-23 at its meeting on Tuesday.
In March 2022, EPFO had lowered the interest on EPF for 2021-22 to an over four-decade low of 8.1 per cent for its about five crore subscribers, from 8.5 per cent in 2020-21.
This was the lowest since 1977-78, when the EPF interest rate stood at 8 per cent.
"The Employees’ Provident Fund Organisation’s apex decision making body Central Board of Trustees (CBT) has decided to provide 8.15 per cent rate of interest on EPF for 2022-23 at its meeting on Tuesday," a source said. (Read More)
Shares of Kalyan Jewellers India plunged more than 10% to ₹105 apiece in Tuesday's early trading session on block deals buzz of 2.74% equity exchaning hands in a large trade. The stock has cracked over 8% in the last five trading sessions.
Around 2.8 crore shares (2.74% equity) worth ₹312 crore have changed hands at an average of ₹108 per share on Tuesday, as per a CNBC-TV18 report. Mint could not independently verify the update. (Read More)
Billionaire Gautam Adani's AMG Media Networks has acquired about a 49 per cent stake in Raghav Bahl-curated digital business news platform Quintillion Business Media Pvt Ltd for about ₹48 crore.
“In continuation to our earlier intimation dated May 13, 2022, vide which we had informed you about execution of Share Purchase Agreement dated May 13, 2022 ("SPA") executed between AMNL, Quintillion Media Limited (“QML"), Quintillion Media Limited QBML and Quint Digital Media Limited (“QDML"). We hereby inform you that AMNL has completed the acquisition of 49% equity stake in QBML, in accordance with the terms contemplated under the SPA ," Adani Enterprises Ltd said in a stock exchange filing. (Read More)
The initial public offering (IPO) of electronic manufacturing services firm Avalon Technologies will open for public subscription next week on Monday, April 3, 2023. The three-day public issue will close on Thursday, April 6, 2023, and the bidding for anchor investors will open on March 31, 2023. The price band is set at ₹415 to ₹436 per share.
Avalon Technologies IPO comprises of ₹320 crore from the fresh issuance of equity shares and ₹545 crore through an Offer For Sale (OFS) of shares by promoters and existing shareholders. (Read More)
The board of directors of Vedanta Ltd is going to consider and approve interim dividends in its meeting scheduled today. The dividend stock has informed Indian bourses about the board meeting and its agenda in its exchange communication. If the interim dividend is announced today, then it would be the fifth interim dividend declared by Vedanta in the financial year 2022-23. In the previous four interim dividends, the net interim dividend declared by Vedanta is ₹81 per share in FY23. The dividend-paying stock has already announced Vedanta dividend record date (if declared today) on 7th April 2023.
Informing Indian bourses about the proposed 5th interim dividend, Vedanta said, "Pursuant to Regulation 29 of Listing Regulations, Notice is hereby given that the meeting of the Board of Directors of the Company (the “Board") is proposed to be scheduled on Tuesday, March 28, 2023, to consider and approve the Fifth Interim Dividend on equity shares, if any, for the Financial Year 2022-23." (Read More)
Dr V K Vijayakumar, chief investment strategist at Geojit Financial Services: The current market signals indicate that the worst of the banking crisis is behind us. S&P 500 is now trading above the March 10 level when SVB collapsed. The stock prices of European banks also are improving indicating that there are no fears of contagion now. Doomsayers who predicted that the SVB collapse is a Lehman moment for the banking sector have been proved wrong. But investors have to be cautious since there is some element of uncertainty even after this apparent return to stability. There is a level of certainty regarding growth prospects. The global economy is slowing down; but Asia, particularly India, will outperform. India’s banking system is well-regulated, strong and resilient. This period of uncertainty and volatility is the right time to build a good portfolio. High-quality stocks with reasonable valuations and good earnings visibility can be accumulated now. Banking, capital goods and telecom are sectors that will post good results in the Q4 results season starting on April 13th. Valuations of IT stocks have become reasonable even though the segment will face headwinds from the US slowdown.
Udayshivakumar Infra Ltd's initial public offering (IPO) was subscribed 5.15 times on the third day of subscription on Wednesday, Mar 23 that opened on Monday, March 20, 2023. The offer received bids for 10,29,54,972 shares against 2 crore shares on offer, as per the exchange data. The IPO offered fresh equity shares of up to ₹66 crore and was priced in a range of ₹33-35 a share.
The finalisation of the basis of share allotment of the initial share sale is expected to take place on Tuesday March 28, 2023. MAS Services Limited is the registrar of the public issue. Shares of the company are expected to be listed on the BSE and National Stock Exchange (NSE) on April 3, 2023. (Read More)
STOCK IN FOCUS
EPL (CMP 161): In view of the improvement in balance sheet, higher return ratios and attractive valuation, we have BUY rating on EPL, with a 1-year Target Price of Rs215.
Intraday Picks
SBILIFE (PREVIOUS CLOSE: RS1,099) SELL
For today’s trade, short position can be initiated in the range of Rs1,104- 1,111 for the target of Rs1,070 with a strict stop loss of Rs1,127.
MUTHOOTFIN (PREVIOUS CLOSE: RS966) SELL
For today’s trade, short position can be initiated in the range of Rs973- 981 for the target of Rs940 with a strict stop loss of Rs992.
PIDILITIND (PREVIOUS CLOSE: RS2,352) SELL
For today’s trade, short position can be initiated in the range of Rs2,358- 2,368 for the target of Rs2,315 with a strict stop loss of Rs2,392.
The Securities and Exchange Board of India (SEBI) has extended the deadline for existing eligible trading and demat account holders to nominate a beneficiary for their accounts toSeptember 30, 2023.
“Based on the assessment of the trading as well as demat accounts in which choice of nomination details (i.e. furnishing of nomination or declaration for opting out of nomination) has not been updated and on the basis of representations received from the stakeholders, it has been decided that the provisions mentioned at para 7 of SEBI circular dated July 23, 2021 read with para 3 (a) of SEBI circular dated February 24, 2022 with regard to freezing of accounts shall come into force with effect from September 30, 2023 instead of March 31, 2023," the market regulator mentioned in a circular dated 27 March. (Read More)
Sensex and Nifty 50 halted two days' losing streak on Monday as the benchmark indices ended in green, although the gains were capped due to heavy losses in small-cap stocks. The First Citizens Bank and SVB deal came as a comfort for investors who have been in a frenzy selling over fears of contagion in the banking system. (Read More)
As travel resumes normalcy after the pandemic, several tour operators and airlines are reporting that demand for business and premium economy tickets has risen compared with the pandemic and pre-pandemic period.
With air travel, especially business travel, slumping during the pandemic and economy-class airfares skyrocketing, an unintended consequence was that the gap between economy and premium economy tickets narrowed.
Travel agency Thomas Cook India has seen a 50% jump in business class travel versus last year as corporate travel resumes. Overall, there is a 5-10% growth in demand for premium seats compared with the pandemic year of 2019-20. (Read More)
Vaishali Parekh has recommended three intraday stocks for today, here we list out full details in regard to those day trading stocks:
1] Power Finance Corporation or PFC: Buy at ₹149, target ₹156, stop loss ₹145;
2] GAIL: Buy at ₹104, target ₹110, stop loss ₹100; and
3] Godrej Consumer Products: Buy at ₹961, target ₹1000, stop loss ₹940.
Adani group-owned NDTV Ltd on Monday said it has appointed former Sebi Chairman Upendra Kumar Sinha and Welspun India Ltd CEO and MD Dipali Goenka as Independent Directors.
The Board has approved the appointment of Sinha and Goenka with immediate effect, said a regulatory filing by the news broadcaster.
Both of them have been appointed as Additional Directors in the capacity of Non-Executive Independent Directors with effect from March 27, 2023, for two years, up to March 26, 2025, NDTV said.
The appointments are subject to approval in the ensuing general meeting of the company and the Ministry of Information & Broadcasting, it added.
The board approved their appointments "in line with the Adani Group's objective to ensure complete independence and professionalism of the Board of Directors of New Delhi Television Ltd", the filing added. (PTI)
Coca-Cola Co. is investing significantly in India along with its bottling partners, a top company executive said, as rural electrification and falling poverty open up new markets for its beverages in the country’s vast hinterland.
India is at an inflection point with its rapidly developing infrastructure, John Murphy, president and chief financial officer at Coca-Cola, said at a bottling facility operated by a local partner on the outskirts of Lucknow, Uttar Pradesh.
“The infrastructure development that’s taking place in a systemic way across India is a key driver. A specific point in the case of India is electrification, and how that has transformed the landscape not only in large cities and towns, but (also) in the rural parts of India; it’s extraordinary progress that’s under way," Murphy said. (Read More)
The lenders of Reliance Capital have decided to go ahead with the second round of auction on 4 April, in accordance with the Supreme Court decision, despite the Hinduja group retracting its revised bid, according to three people aware of the matter.
The Hinduja group submitted a revised bid of ₹9,000 crore on 21 December, a day after the first round of auction—in which rival Torrent Group had been declared the highest bidder—concluded. Torrent had bid for ₹8,640 crore, while Hinduja Group had originally offered ₹8,110 crore. Challenging this, Torrent approached the National Company Law Tribunal, which asked the lenders to keep the Hinduja Group’s post-auction offer on hold till the final hearing. (Read More)
Crude prices moved in a narrow range in early Asian trade on Tuesday after rallying in the previous session, with oil markets focused on developments in the banking crisis as well as on supply concerns and indications of strengthening demand.
Brent crude futures fell 2 cents to $78.10 a barrel at 0018 GMT. West Texas Intermediate U.S. crude gained 8 cents, or 0.1%, to $72.89.
Prices rose in the previous session after Turkey stopped pumping crude from Kurdistan via a pipeline following an arbitration decision that confirmed Baghdad's consent was needed to ship the oil.
Monday's announcement that First Citizens BancShares Inc will acquire deposits and loans of failed Silicon Valley Bank spurred optimism about the condition of the banking sector that has roiled financial markets.
U.S. authorities are also reportedly in early deliberations about expanding emergency lending facilities. (Reuters)
Mortgage lender HDFC Ltd on Monday said its board has approved raising funds through non-convertible debentures (NCDs) in tranches aggregating to ₹57,000 crore.
The board has cleared issuance of unsecured, redeemable, non-convertible debentures under a Shelf Placement Memorandum, aggregating ₹57,000 crore, in various tranches, on a private placement basis, HDFC said in a regulatory filing.
This is in accordance with the approval granted by the shareholders of the HDFC at the 45th annual general meeting held on June 30, 2022, it said.
Besides, it said, "the board has approved increase in the overall borrowing powers of the corporation from ₹6 lakh crore to ₹6.50 lakh crore, outstanding at any point of time and recommended the same for approval of the members of the corporation by way of postal ballot." (PTI)
More than two decades since the privatization of Bharat Aluminium Co. (Balco), the Union government is preparing to sell its remaining stake in the company in the next fiscal year, two people aware of the development said.
The Union ministry has already reached out to the Department of Investment and Public Asset Management (Dipam) for a road map for the stake sale, the people said on the condition of anonymity. (Read More)
After moving two Adani firms to Stage 1 of additional surveillance measure(ASM), the NSE and BSE will move Adani enterprises' energy production arm, Adani Green Energy under the second stage of the long-term ASM framework from Tuesday.
In two separate circulars, the bourses said Adani Green Energy shall continue in the ASM framework but will be moved to the respective higher stage from March 28.
The move also comes after the two bourses put Adani Total Gas and Adani Transmission from the second stage of the long-term ASM framework to Stage-I on Friday.
The growing wealth of India’s public is leading to a crucial shift in its $1 trillion sovereign bond market.
Their savings — channelled through life insurers, provident and pension funds — are increasingly getting plowed into long-term debt, leading to a structural change in the costs of borrowing for Prime Minister Narendra Modi’s government.
India’s yield curve has flattened markedly as the insurers and pension funds snapped up 10-to-40-year debt, with HDFC Life Insurance Ltd. saying that market participants are asking the central bank to sell more longer-dated bonds. Their growing footprint mean that the state will be less reliant on banks over time, while reducing anxiety among traders over how Modi’s infrastructure-building spree will be funded. (Read More)
Wall Street equities gained while U.S. Treasury yields rose on Monday as investor concerns about the financial system were calmed after First Citizens BancShares said it would take on the deposits and loans of failed Silicon Valley Bank.
The deal offered a respite after weeks of turmoil prompted by the collapse of tech-focused Silicon Valley Bank and punctuated by more bank failures and rescues. And on Saturday Bloomberg News reported that U.S. authorities are considering the expansion of an emergency lending facility that would offer banks more support, easing concerns about contagion.
U.S. Treasury yields rose on optimism that stress in the banking sector could be contained, and US 2-Year Treasury yields rose to a session high after an auction.
The S&P 500 bank index, after closing down more than 22% for the month-to-date on Friday, was up more than 3% on Monday. In Europe, Deutsche Bank shares rose 6% after leading declines in the sector on Friday, when investors fled as the cost of insuring the bank's debt against default had jumped.
"The main driver to today's sentiment has been the banking news over the weekend," said Michael James, managing director of equity trading at Wedbush Securities in Los Angeles.
Citing the First Citizens deal and the potential for expansion of emergency U.S. lending, James said there was a "sigh of relief" on Monday for the banking sector "which has had a giant anchor around its neck for the last three weeks." (Reuters)
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