Adani stocks were under keen watch today and displayed a mixed performance with Adani Enterprises and Adani Ports gaining but Adani Total and Adani Green tanking. Adani Group released a 400-page rebuttal on Sunday on allegations levied on them by Hindenburg Research.
Indices ends in green on a day marred with volatility with Sensex adding 170 pts and Nifty 45 pts
Indian shares ended in green in a volatile session ahead of the Union budget as Adani Group extended a decline after the Hindenburg report last week triggered a sell-off over the previous two sessions.
The Nifty 50 index closed at 17,650 as it shed around 45 points, while the S&P BSE Sensex closed at 59,500, a gain of 170 points. Both indexes had fallen around 0.5% earlier in the session.
Adani Group faced a critical session today with the secondary share sale of the flagship Adani Enterprises seeing only around 2% subscription on Monday till 2 pm.
Oil & Gas index led the race to the bottom as it shed around 3.5% followed by FMCG indices shedding around 0.6%. IT climbed a per cent, and PSU Bank and Consumer Durable also ended in the green.
Among stocks, Adani Enterprises and Adani Ports hit the upper circuit intraday but shed the gains with the former ending with around a 4% gain. Bajaj Finance rose more than 4%, and Ultratech Cement and Bajaj Finserv more than 2%. Power Grid shed 3% followed by Bajaj Auto which dropped more than 2%.
Japan's Nikkei index ended at a more than one-month high tracking Wall Street gains in the last session, although the gains were capped by caution ahead of the U.S. Federal Reserve's meeting and domestic corporate earnings announcements. The Nikkei share average gained 0.19% after briefly slipping in the negative territory. The broader Topix was marginally down 0.01%.
China stocks rose on Monday as strong consumer spending and a rebound in travel during the country's week-long Lunar New Year holidays boosted investor sentiment, whole Hong Kong's stock fell.
China's CSI 300 Index closed up 0.5%, after opening 2.1% higher to touch a half-year high, while the Hang Seng Index retreated 2.7% after two sessions of gains when Chinese markets were closed.
European shares fell in the morning session amid a rout across the board as caution crept in ahead of a slew of central bank policy meetings later this week, with shares of rate-sensitive stocks like technology among the major drags. The pan-European STOXX 600 was down in early trading.
UK stocks slipped on Monday as investors refrained from making risky bets ahead of key central bank decisions this week, while shares of Unilever inched up after the consumer goods giant announced a new chief executive officer.
Average salary of senior executives in India rise by nearly 9.1% in 2023: Aon
Global professional services firm Aon said that average salary of senior executives and CEOs in India has increased by nearly 9.1 per cent in 2023. The average CEO compensation is ₹8.4 crores, increasing 21 per cent in the last four years, showed the study.
In its report, Aon said that the sum of variable pay and long-term incentives (LTI) for total compensation, the LTI has increased to 40 percent of the total compensation, up from 26 percent in 2015-16. (Read More)
GAIL Q3 profit slumps 92.5% YoY to ₹246 cr on supply hit; revenue dips sequentially
Government-owned GAIL (India) recorded a decline in profitability during December 2022 quarter on both a year-on-year and quarter-on-quarter basis on supply hit. Although, revenue was better compared to Q3 of the previous fiscal, however, down sequentially. GAIL posted a standalone net profit of ₹2245.73 crore in Q3FY23. (Read More)
Ranjeet Mahtani, Partner, Dhruva Advisors on expectations of Manufacturing industry expectation on custom duties from this budget
The Manufacturing and Other Operations in Customs Bonded Warehouse Regulations, 2019 (“MOOWR") offers custom duty benefits, similar to EOUs, with “ease of doing business" factored in. At the same time, the scheme has some shortcomings and so is not particularly attractive. One of the asks of persons evaluating this scheme is addressing the computation methodology and onerous administrative process of discharging liability for saved customs duty on inputs with each clearance. A more streamlined mechanism for payment of duty on a periodic basis will make the scheme efficient and attractive, besides saving time, effort, and transaction costs. Another demand of the industry is allowing the benefit of depreciation on capital goods when calculating duty on the removal of the capital goods from the MOOWR registered units. Another measure (which has been a long-standing request of the industry) is to allow a one-time opportunity to transition from other export-promotion schemes such as EOU and SEZ to the MOOWR without incurring any liability.
PNB Q3 net profit down 44% to ₹628.9 cr, NII rises 17.6%
State-owned Punjab National Bank on Monday reported 44 per cent decline in net profit to ₹628.9 crore for the December quarter. This is against a net profit of ₹1,126.8 crore in the year-ago period. The net interest income which is the difference between interest earned and interest expended, was up by 17.6 per cent to ₹9,179.4 crore as against ₹7,803.2 crore in the corresponding quarter last fiscal. (Read More)
Rays Power Infra inks pact with Rajasthan govt to build 1800 MW solar park
Rays Power Infra has inked a pact with the Rajasthan government to build a 1,800 MW solar park. The entire project is estimated to be worth ₹9,140 crore. “In accordance with India’s far-reaching goal of converting existing fossil-fuel energy generation into renewable energy output, the Solar Park will generate 1,800 MW of renewable power, divided among three 300 MW projects and one 900 MW project," the company said in a statement.
The Memorandum of Understanding (MoU) was signed in the presence of Rajasthan Chief Minister Ashok Gehlot to build an avant-garde PV photovoltaic (PV) power station (commonly referred to as solar power plant). (Read More)
Unilever Picks Dairy Cooperative Boss to Replace CEO Jope
Unilever said Royal FrieslandCampina boss Hein Schumacher will succeed Chief Executive Officer Alan Jope.
The boss of the dairy and nutrition business will become CEO on July 1, after a one-month handover, Unilever said Monday.
Unilever is accelerating its plan to replace Jope as the Dove soap maker tries to offset the highest inflation in four decades with price increases. Schumacher, 51, is a consumer-goods veteran with experience working at H.J. Heinz and grocer Royal Ahold NV. He began his career at Unilever in finance.
Jope announced plans to depart last year following missteps including an unsuccessful effort to buy GSK Plc’s consumer health business. He’s leaving Unilever after 37 years. Activist investor Nelson Peltz built up a stake through his Trian fund and joined the board in the aftermath of the failed deal.
The incoming CEO has worked at FrieslandCampina since 2014.
Schumacher became a non-executive director on Unilever’s board in October. He’ll give up that position when he becomes CEO. (Bloomberg)
After Air India ‘pee gate’ case, airline brings new software to facilitate real-time reporting of in-flight incidents
Air India today said it will use UK-headquartered Ideagen's enterprise cloud software application Coruson to help enhance safety management and facilitate real-time reporting of in-flight incidents. The announcement comes against the backdrop of at least three incidents of unruly passenger behaviour on two international flights last year, for which aviation regulator DGCA had imposed penalties on the carrier for certain reporting lapses.
Coruson, the safety data software application, will be online with effect from May 1, 2023 and will facilitate real-time reporting of in-flight incidents, Air India said in a release. (Read More)
India's Adani Group CFO says stocks rout similar to colonial-era massacre
India's Adani Group has said a U.S. short-seller's report on the business house was a "calculated attack" on the country and its institutions while a senior executive has compared a rout of its stocks with a colonial-era massacre.
Adani's seven listed companies have lost about $65 billion in total since Hindenburg Research on Jan. 24 raised concerns about the coal-to-ports group's high debt levels and the use of offshore entities in tax havens, charges the group has denied. Founder Gautam Adani has dropped from being the world's third-richest person to the eighth.
"This is not merely an unwarranted attack on any specific company but a calculated attack on India, the independence, integrity and quality of Indian institutions, and the growth story and ambition of India," the Adani Group said late on Sunday in a 413-page response to Hindenburg's allegations.
Adani's finance chief, Jugeshinder Singh, likened the behaviour of Indian investors participating in the sell-off to the colonial-era Jallianwala Bagh massacre in Amritsar city.
On April 13, 1919, a British officer ordered about 50 Indian army soldiers to shoot at unarmed civilians who were taking part in a peaceful protest. At least 379 people were killed, according to the official record, although local residents have said in the past the toll was far higher. (Reuters)
IT index gains in an otherwise dull trading day with almost all stocks in green
Japan's chip equipment makers in the dark about new China export restrictions
Japanese makers of semiconductor manufacturing machinery and materials used to make chips said on Monday they had yet to hear from Japan's government about export restrictions that could directly or indirectly affect their business in China.
Reuters contacted 10 chip-related companies, of which five - Advantest Corp, Nikon Corp, Resonac Holdings Corp, Lasertec Corp and Shin-Etsu Chemical Co Ltd - said they were unaware of any contact from Japan's Ministry of Economy, Trade and Industry about any new restrictions reportedly agreed by Japan, the United States and the Netherlands last week to stymie rival China's technological advancement.
"As we do not know what the situation is, we cannot comment on what the impact is and what our response will be," said a spokesman for Advantest, which makes chip-testing machines and other chip-related equipment.
Past restrictions on advanced semiconductor shipments to China have not affected Japan because the country, which once dominated global chip manufacturing, now only makes around a 10th of the world's semiconductors, most of them less advanced than the chips made by the likes of Taiwan Semiconductor Manufacturing Co Ltd (TSMC) and South Korea's Samsung Electronics Co Ltd. (Reuters)
Back Sun Pharma acquires three brands to boost anti-inflammatory portfolio
Pharmaceutical major Sun Pharma on Monday announced that it has acquired three brands--Disperzyme, Disperzyme-CD, and Phlogam from Aksigen Hospital Care. In a BSE stock filing, Sun Pharma informed that Aksigen is a Mumbai-based research-driven healthcare entity with more than two decades of experience in the healthcare field.
Disperzyme and Phlogam are the first enzyme-bioflavonoid combination of Trypsin, Bromelain, and Rutoside (“TBR") to complete a clinical study in India and get DCGI approval. The brands were registered and launched in India by Aksigen in 2013, Sun Pharma said in a press statement. (Read More)
PL Stock Report - DCB Bank (DCBB IN) - Q3FY23 Result: BUY
DCB Bank (DCBB IN) – Gaurav Jani – Research Analyst, Prabhudas Lilladher Pvt Ltd: Rating: BUY | CMP: Rs114 | TP: Rs150
Q3FY23 Result Update - Well poised to deliver 1% RoA
§ Earnings in-line but asset quality better; GNPA declined 27bps QoQ.
§ Guidance of doubling balance sheet over 3-4 years is intact.
We do not materially change estimates, but with asset quality risks receding, provisions for FY24/25E could be lower (PLe at ~68bps) leading to earnings upgrades. DCB Bank (DCB) earnings were in-line with PAT at Rs1.14bn, although asset quality was better than expected. NII was a slight beat by 1.9%, due to tad better loan growth and NIM. Strong credit flow is sustaining, as disbursals in Q3 at Rs46bn were similar to Q2 levels. Bank retained its guidance to double balance sheet over 3-4 years and hence we build a loan CAGR of 19% over FY23-25E. Asset quality improved with GNPA at 3.63% (PLe 3.89%, reduction of 27bps QoQ), driven by lower gross slippages. Slippage run-rate is expected to fall over next 2 quarters. DCB is targeting a RoA/RoE of 1.0%/14% which would be achieved by FY25E. We maintain ‘BUY’ rating and multiple at 1.0x Sep’24 ABV, keeping TP unchanged at Rs150.
IndusInd Bank struggles in today's session as it sheds 4%
Philips cuts 6,000 more jobs after sleep device recall losses deepen
Embattled Dutch medical tech maker Philips said on Monday it will slash 6,000 more jobs worldwide after fresh losses caused by a massive recall of faulty sleep respirators. Chief Executive Roy Jakobs announced the "difficult, but necessary further reduction of our workforce" by 2025, which comes just three months after it announced another 4,000 cuts.
Back Toyota continues to be world's top-selling automaker, third year in a row
Japan-based Toyota Motor Corp continues to be the world's top-selling automaker, defending its title for a third straight year. The company recently said it sold 10.5 million vehicles in 2022. At the number 2 position is the Volkswagen Group which reported its lowest-ever sales in over a decade earlier this month. The automaker sold 8.3 million vehicles in 2022. The Ukraine war and Covid-19 lockdowns in China impacted the supply chains.
Coming back to Toyota, its global sales - including truck unit Hino Motors and small-car maker Daihatsu, inched down 0.1% as record overseas sales of 8.6 million vehicles helped offset a 9.6% dip in its home market to 1.9 million. (Read More)
Noon Update: Indices are trading flat amidst high volatility; Adani stocks having a mixed day
Energy index sheds the most and Metal and Bank turn red after surging in early trading
Back Sports For All to spend ₹12.5 cr over 5 years as Khelo India sponsor
Sports For All, a competition organiser, has been signed by Khelo India Youth Games (KIYG) as one of its sponsors for the next five years. Through this strategic partnership, SFA will invest ₹12.5 crore over the next five years to contribute to developing India’s sporting DNA. The company said it is focused on developing youth sports in the country, bolstering India’s dream of winning more Olympic medals and will be a ‘powered by’ sponsor for the event. (Read More)
Adani group's market loss swells to $65 billion in short-seller attack aftermath
Most Adani group shares extended their sharp falls to Monday as a detailed rebuttal of a U.S. short-seller's criticisms by the Indian conglomerate failed to pacify investors whose market losses have now risen to $65 billion over three days.
Flagship Adani Enterprises, which is facing a crucial test this week with a follow-on share offering, rose 3%, but was off initial gains of as much as 10% and significantly below the offer price.
Adani, led by Asia's richest man Gautam Adani, has locked horns with Hindenburg Research and on Sunday hit back at the short-seller's report of last week that flagged concerns about its debt levels and the use of tax havens. Adani said it complies with all local laws and had made the necessary regulatory disclosures.
Adani Transmission and Adani Total Gas plunged 20% each on Monday, while Adani Green Energy was down 16%. Adani Ports and Special Economic Zone slipped 1.1%.
Adani Enterprises' $2.5 billion secondary share sale entered its second day amid weak investor sentiment. The stock was trading at 2,848 rupees in early trade, far below the price band for the share sale of 3,112-3,276 rupees per share. (Reuters)
Metal index have given up on all their early gains and are now trading in red, down a per cent
Saurabh Mukherjea's chemical stock jumps despite flat markets. Buy or sell?
Saurabh Mukherjea's portfolio stock GMM Pfaudler is under the radar of stock market bulls since early morning deals on Monday. Interestingly, this is happening despite flat sentiments on Dalal Street. One of the Saurabh Mukherjea's little champs stocks, GMM Pfaudler share price today opened with an upside gap and went on to hit intraday high of ₹1,595.75 apiece on NSE, logging around 3.50 per cent intraday rise within few minutes of Monday morning deals.
According to stock market experts, this chemical stock in Saurabh Mukherjea's portfolio is under the radar of market observers and investors as the company has scheduled its Q3 results 2023 date on 2nd February 2023. This is the major reason for stock showcasing volatility and attracting buying interest by market bulls. Experts went on to add that the stock is in range of ₹1,525 to ₹1,650 and bullish or bearish trend in the stock can be expected only on breakage of either side of the range. (Read More)
Bajaj Finance soars almost 5% in today's trading after a healthy quarterly earning report
Gold prices today jump to record high in India. Check out latest rates
Gold prices in India hit new highs today tracking steady global rates. On MCX, February futures rose 0.35% to ₹57,149 per 10 gram, surpassing previous high of ₹57,125. Silver futures also edged higher to ₹68,583 per kg. In international markets, bullion was steady at $1,926.65 per ounce. Traders remained cautious ahead of US Federal Reserve's rate decision on February 1. It is widely expected that US central bank will downshift rate hike to 25 basis points (bps) from 50 bps announced in December. (Read More)
China's 2022 smartphone sales plunge to lowest level in a decade
China's smartphone sales endured a record fall in 2022, tumbling 13% to their lowest level in a decade as COVID controls and a slowing economy sapped consumer appetite, data from third-party research firms showed.
The total number of devices shipped was 286 million, down from 329 million in 2022. It was the lowest sales volume since 2013 and the first time since then that annual sales have dropped below 300 million, IDC said in a report.
Strict COVID-19 controls weighed heavily on the Chinese economy last year but Beijing started dismantling the restrictions in December, boosting consumption.
"The strict pandemic control poicy has resulted in historically high household savings as consumer spending became conservative," said Lucas Zhong, who tracks China's smartphone sector for research firm Canalys.
Android handset maker Vivo was the top-selling brand in 2022, with a market share of 18.6%, according to IDC. Its total shipments fell 25.1% year-on-year. (Reuters)
Oil & Gas index struggles as Adani Total sheds 20% and most other stocks in red
Apple Supplier in India Begins Making AirPods Parts for Export
A key Apple Inc. supplier has begun making components for AirPods in India, marking a significant step in the US tech giant’s push to expand production in the country.
The Indian unit of Jabil Inc. has begun shipping AirPods enclosures, or plastic bodies, to China and Vietnam, where the wireless earphones are assembled, people familiar with the matter said, asking not to be named as the move isn’t public.
Apple is building out production in India to reduce its reliance on China, where US trade restrictions and Covid-related disruptions have made manufacturing more risky. Its India output has thus far been limited to the iPhone, making AirPods the second Apple product now partially manufactured in the country.
Prime Minister Narendra Modi has made it a national priority to grow India’s manufacturing sector, providing financial incentives and government support for companies’ expansion projects. Apple has played a central role in that effort, with partners such as Hon Hai Precision Industry Co. producing more iPhones in the country for the latest generation than ever before. (Bloomberg)
Adani stocks open mixed as group issues response to Hindenburg claim
Shares of Adani group companies opened mixed on the bourses early Monday after the group’s late-night response to US research company Hindenburg on its 88 queries. Adani Ports and Adani Enterprises, the two Nifty index stocks, gained 10% each in early morning trade. However, Adani Total Gas traded down 19.16% and Adani Green was down 15.57%. Out of ten listed stocks, four — Adani Enterprises , Adani Ports, ACC and Ambuja Cements --are traded in the derivatives segment.
The stocks churned a mixed performance as Hindenburg also put out its response to the Adani Group’s 413-point response. The Hindenburg Research has responded to Adani Group's rebuttal to its allegations. Refuting Adani's 413-pages long response, Hindenburg has said that "fraud cannot be obfuscated by nationalism." (Read More)
Power Grid Corporation comes under pressure as it sheds more than 2%
Six in 10 households see earnings decline in FY2022-23: Survey
Lower incomes amid higher household expenses during the pandemic had hit a large number of Indian households. For many, the continuing high prices of vegetables, pulses, oil, milk and other essentials over the last 12 months have spelt trouble with sizable percentage of families grappling to make ends meet. While global commodity prices have softened in the recent past, they remain elevated along with shipping and logistics cost which have been reflecting in prices of products and services. In most cases, families’ incomes have not kept pace with high inflation. Unlike those in government jobs, private sector employees get no relief in the form of DA or any other allowance to offset rising costs. All this has been cutting deep into consumer spending. (Read More)
China Stocks Flirt With Bull Market on Return From Holidays
China’s benchmark equity gauge was set to enter a bull market and the yuan strengthened as trading resumed after a week-long break, with upbeat holiday data giving fresh impetus and helping offset profit-taking pressure.
The CSI 300 Index jumped 2.1% early Monday before trimming gains, taking its advance from an October low to about 20%. The onshore yuan appreciated as much as 0.8% to 6.7429 against the greenback.
During the first Lunar New Year holiday since the Covid Zero exit, travelers swarmed scenic destinations, box office sales jumped and bookings of hotels, guest houses and tourist spots exceeded the comparable period in 2019. The stream of positive data sets the ground for Chinese equities to rally further, extending their upward march following the rollback of virus curbs and a policy pivot by Beijing late last year.
“With herd immunity occurring faster than expected, undemanding valuations and with policies support likely to provide a backstop for growth, we continue to hold a positive view on the China market," said James Wang, head of China strategy for UBS Investment Bank Research. (Bloomberg)
PSU Bank index jump after remaining under pressure in the previous sessions; all stocks in green
Vedanta dividend yield makes 'stock attractive', brokerages bullish
Vedanta Ltd reported an over 41% drop in consolidated net profit at ₹2,464 crore in the quarter ended December 31, 2022 as compared to ₹4,164 crore in the year-ago period whereas its income rose slightly to ₹34,818 crore from ₹34,674 crore year-on-year (YoY). Its board approved the fourth interim dividend of ₹12.50 per equity share for the financial year 2022-23, amounting to ₹4,647 crore.
“Besides firm zinc prices, aluminium prices too firmed up recently. The benefits of cost savings in aluminium via 3mtpa alumina expansion in FY24 and usage of captive coal would reduce CoP structurally. Besides, a 16% dividend yield makes the stock attractive; we recommend a ‘BUY’ on Vedanta shares with a target price of ₹428 (from ₹374)," said brokerage Edelweiss. (Read More)
Adani Enterprises along with Adani Ports jump in early trade as they hit the 10% gain mark
Gold discounts in India jump to highest in 10 months amid record high prices
Gold discount in India jumped to the highest in 10 months as record-high prices hit domestic sales. Dealers last week offered discounts of as much as $42 an ounce over official domestic prices as compared to a discount of $24 in the previous week, Reuters reported. As India imports most of its bullion requirement, domestic prices include 15% import duty and 3% GST. February gold futures on MCX had risen to record high of ₹57,125 per 10 gram last week, before settling at ₹56,900 at the end of the week. India's budget will be presented on February 1 and the industry has urged the government to cut import duty on the precious metal. (Read More)
Indices open in red as Sensex and Nifty shed 500 and 150 pts, respectively. Adani stocks surge
Hindenburg's response to Adani: 'Fraud cannot be obfuscated by nationalism'
Refuting Adani's 413-pages long response, Hindenburg has said that "fraud cannot be obfuscated by nationalism."
Referring to India as a vibrant democracy and one with a bright future, Hindeburg's response goes on to add that the country's future is "held back by Adani Group." It reads, "In short, the Adani Group has attempted to conflate its meteoric rise and the wealth of its Chairman, Gautam Adani, with the success of India itself. We disagree. To be clear, we believe India is a vibrant democracy and an emerging superpower with an exciting future. We also believe India’s future is being held back by the Adani Group, which has draped itself in the Indian flag while systematically looting the nation."
It further added that in terms of substance, Adani’s ‘413 page’ response only included about 30 pages focused on issues related to our report. (Read More)
Why Singapore Airlines is investing in Air India?
When the Singapore Airlines Group (SIA) released its operating statistics for December 2022, it revealed that it carried almost 12 per cent more passengers compared with a month ago and four times more than a year ago. Its two carriers, SIA and Scoot, carried a total of 2.7 million passengers in December. For the entire year, it carried a total of 20.7 million passengers, a jump of 900 per cent from 2021.
The airline cited the relaxation of travel restrictions in Hong Kong, Japan, and Taiwan for boosting the demand for air travel and supporting a recovery in those markets.
Though impressive, the passenger numbers are still 76 per cent of December 2019's figure of 3.54 million passengers carried.
SIA's passenger load factor (PLF) in December 2022 came in at 89.7 per cent during the month -- 3.8 percentage points more compared with a month ago and 43.2 percentage points more year-on-year. The airline noted that this is the highest monthly PLF in the SIA's history, full-service carrier, SIA, and low-cost airline, Scoot posted record monthly PLFs of 89.1 per cent and 91.6 per cent respectively. PLF for December 2019 was 87.6 per cent. (Read More)
Sensex sheds more than 500 pts at the start of the preopen session; Adani stocks remain in focus
Geojit Financial Services on today's market: The correction in high-quality private sector banks is a buying opportunity. Investors may wait for the dust to settle.
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: Today the market will be completely dominated by the movements in Adani stocks. The statement from Adani Enterprises that the FPO is on schedule and that there is no change in the price band is hugely important. This can be interpreted as a reflection of the confidence of the management in the success of the FPO. It is important to understand that the stock has limited public float. So, the price crash on Friday happened mainly due to shorting Adani stocks in general and Adani Enterprises in particular. One possibility is a big short-squeeze in the stock. Huge volatility is in store in Adani stocks today. The sustained selling by FPIs in January with a massive sell figure of ₹5978 crores last Friday is a bit intriguing. Did the FPIs get wind of the storm blowing now? It is important to note that during the last 3 days, while Nifty declined by 3.2 %, Bank Nifty declined by 6.3% on concerns of the Adani crisis impacting the banks. The correction in high-quality private sector banks is a buying opportunity. Investors may wait for the dust to settle.
Reliance Securities Stock to Focus for Today: Tata Motors
STOCK IN FOCUS
Tata Motors (CMP 446) - 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 Rs600, valuing the business at Rs712 and excluding the net debt of Rs112/share.
HDFCLIFE (PREVIOUS CLOSE: 589) BUY
For today’s trade, long position can be initiated in the range of Rs580-
582 for the target of Rs595 with a strict stop loss of Rs576.
TATASTEEL (PREVIOUS CLOSE: 121) SELL
For today’s trade, short position can be initiated in the range of Rs122-
124 for the target of Rs118 with a strict stop loss of Rs125.
HINDUNILVR (PREVIOUS CLOSE: 2612) SELL
For today’s trade, short position can be initiated in the range of Rs2625-
2635 for the target of Rs2575 with a strict stop loss of Rs2660.
RBI to hike repo rate by 25 bps in Feb. FD rates likely to get more attractive
The Reserve Bank of India (RBI) is expected to raise its interest rate by a modest 25 basis points (bps) to 6.50% at its meeting after February 1 Union Budget 2023, a Reuters poll of economists found. More than three-quarters of economists, 40 of 52, expected the RBI to raise its key repo rate by 25 bps to 6.50%, according to a January 13-27 Reuters poll. The remaining 12 predict no change at the February 8 meeting.
"They (the RBI) need to pause at some point to see what exactly is the impact of the previous monetary tightening overall on growth and inflation. That is why I believe it is not premature for them to pause after 6.50%," said Upasna Bhardwaj, chief economist at Kotak Mahindra Bank, Reuters reported. (Read More)
Stocks to Watch: Adani Group, Bajaj Finance, Vedanta, NTPC, Hinduja Global Solutions, NDTV, Samvardhana Motherson International, Kajaria Ceramics, Coal India, and Reliance Power
Bajaj Finserv, Tech Mahindra, BPCL, Gail India, Exide Industries, L&T, PNB, Inox Leisure will be among the stocks in focus as they declare their December quarter earnings today. (Read More)
Mint Long Story: The man behind a $50 billion Adani stocks sell-off
The antecedents and credentials of New York-heardquartered short-selling research firm Hindenburg, whose bearish take on the Adani group has set off a firestorm in Indian capital markets, prompting a $50 billion sell-off in equities, has piqued the curiosity of Indian investors.
While domestic observers may deride or praise Hindenburg, depending on their own views, what leaps out at you on perusal of the firm’s work is how prolific it is in churning out research reports. (Full Story)
LKP Securities - CANARA BANK - Q3 FY23 Result Update - BUY
LKP Securities says “Factoring near-term capital infusion, we expect the bank’s loan book to fatten cautiously at CAGR of ~20% over FY22-24E, led by RAM and corporate book growth. In our opinion, the bank’s credit cost shall normalise further by FY23E and estimate return ratio ROA/ROE of 1% and 17% in FY24E. We value the standalone entity with 0.7xFY24E BVPS ( ₹499) and arrive at a target price of ₹349. We recommend BUY with a potential upside of 20%."
Vedanta Q3 net profit drops 41 pc on higher input cost, windfall tax
Vedanta Ltd on Friday reported a 40.8 per cent drop in consolidated net profit at ₹2,464 crore in the quarter ended December 31, 2022 on the back of higher input cost and windfall tax.
The company had posted its consolidated net profit at ₹4,164 crore in the year-ago period, Vedanta Ltd said in a filing to BSE.
However, the consolidated income of the company in the October-December period increased marginally by 0.4 per cent to ₹34,818 crore from ₹34,674 crore in the year-ago period.
The consolidated expenses of the company during the third quarter of FY23 increased to ₹31,327 crore from ₹26,777 crore in the corresponding quarter of previous fiscal.
There has been an impact of ₹333 crore due to introduction of windfall tax in July 2022.
In a conference call, Vedanta Group CFO Ajay Goel said, "If you look at Q2 over Q3 our PAT has increased by 15 per cent." (PTI)
Adani Enterprises FPO: Subscription status on day 2 of the follow-on public offer
The follow-on public offer (FPO) of Adani group's flagship company Adani Enterprises was on Friday subscribed just a per cent on the first day of the share sale as the Group stocks plunged after US short-seller Hindenburg Research said that it took a short position in certain securities of the group which the Group dismissed as ‘baseless’. The offer, which is priced at ₹3,112 to ₹3,276, will conclude on Tuesday, January 31, 2023.
Against an offer of 4.55 crore shares of Adani Enterprises Ltd, only 4.7 lakh were subscribed, according to information available from the BSE. Retail investors put in bids for close to 4 lakh shares against 2.29 crore shares reserved for them while qualified institutional buyers (QIBs) sought just 2,656 shares against 1.28 crore reserved for them. Non-institutional investors sought 60,456 shares against an offer of 96.16 lakh shares. (Read More)
Bajaj Finance logs highest-ever quarterly net profit at ₹2,973 crore
On the back of record loan sales, Bajaj Finance on Friday booked the highest-ever quarterly consolidated net profit of ₹2,973 crore for the December quarter, logging in an on-year 40 per cent growth.
The Pune-based non-banking lender said its core net interest income rose 28 per cent to ₹7,435 crore on-year during the reporting quarter, aided by a higher 28 per cent jump in the key profitability metric net interest income.
The company said it added 3.14 million new credit customers during the October-December quarter and 7.84 million so far this fiscal, making this the highest-ever for the non-banking lender focused on retail finance, taking its total customer franchise to 66.05 million, up 19 per cent from 55.36 million in December 2021.
This record disbursement had the company's assets under management growing 27 per cent to ₹2,30,842 crore.
Asset quality improved considerably with both gross NPAs as well as net NPAs falling to 1.14 per cent and 0.41 per cent, respectively from 1.73 per cent and 0.78 per cent in December 2021. As a result, its loan losses and provisions declined steeply to ₹841 crore from ₹1,051 crore and it continues to maintain an additional provision of ₹1,000 crore. (PTI)
Electronics export from India to cross ₹1.28 lakh crore next fiscal: MoS IT
Electronics export from India is expected to cross ₹1.28 lakh crore in the next financial year, Minister of State for Electronics and IT Rajeev Chandrasekhar has said.
The minister, in an interview with PTI, said the government is now going to broaden and widen the electronics manufacturing ecosystem with a new production-linked incentive scheme for hearable-wearable, IT hardware and component makers.
"Electronics manufacturing as a whole, we see next year that we will at least do exports worth ₹1.28 lakh crore. I have already said that we will see mobile phone exports reaching ₹1 lakh crore in 2023-24," Chandrasekhar said.
There has been a focus on mobile phones because it is the fastest-growing segment in electronics across the world, he added.
"Value addition in manufacturing is a function of scale. First, you need to hit the scale. The component industry is the one which does value addition. Components will not come if the scale of manufacturing is not there. The next stage of our PLI is to get components PLI, hearable-wearable PLI and the IT server PLI," the minister said. (PTI)
Tech Mahindra Q3 preview: EBIT margins likely to improve; slower growth seen in BFSI, hi-tech
Tech Mahindra is set to announce its financial results for the third quarter of FY23 on Monday. Accordingly, the IT major's stock will be in focus on exchanges. The Q3 of FY23 is likely to be a mixed bag with PAT seen to decline while revenue growth is likely to be in double-digit year-on-year. There are expectations of slower growth in segments like BFSI and hi-tech. Also, deal wins may be on lower levels than company's expectations. However, EBIT margins are expected to improve in Q3.
Also, Tech Mahindra's attrition rate and net addition of employee counts will be keenly watched. Its peers TCS and Wipro have reduced their workforce in Q3FY23, while Infosys and HCL Tech made lower additions on a quarter-on-quarter basis. (Read More)
A calculated attack on India’: Adani Group on Hindenburg allegations
Richest Indian Gautam Adani's group on Sunday likened the damning allegations levied by short-seller Hindenburg Research to a "calculated attack" on India, its institutions and its growth story, saying the allegations are "nothing but a lie". In a 413-page response, Adani Group said the report was driven by "an ulterior motive" to "create a false market" to allow the US firm to make financial gains.
"This is not merely an unwarranted attack on any specific company but a calculated attack on India, the independence, integrity and quality of Indian institutions, and the growth story and ambition of India," it said. Adani Group, in its 413-page report, has also responded to all 88 questions raised by Hindenburg.
"This is rife with conflict of interest and intended only to create a false market in securities to enable Hindenburg, an admitted short seller, to book massive financial gain through wrongful means at the cost of countless investors," Adani said in 413-page response late on Sunday. (Read More)
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