PremiumInvestors turned buyers in the last hour searching for beaten-down stocks but caution prevailed amidst negative global cues. With inflation in the UK remaining worse than expected, Germany entering into recession, and the lacklustre post-Covid opening of China, investors are worried about the state of the global economy. Stalemate in the US debt ceiling talk is also adding to the jitters.
Indian shares remained under pressure for most of the session but rallied in the final hour to end in the green. The negative sentiment in the first half was due to a slide in global equities after US debt ceiling talks dragged on without a deal.
The blue-chip Nifty 50 index added 35 points to close at 18,321, while the benchmark S&P BSE Sensex added almost 100 points to end at 61,872. Ten of the 15 Nifty major sectoral indexes logged gains in today's session.
Most sectors made a turnaround in the last hour to end in the green. FMCG and Realty remained stable throughout the session and led the sectoral indices. PSU Bank sector was the biggest laggard as it shed almost 0.5%.
Adani Enterprises, Bharti Airtel, Bajaj Auto and ITC led the stock charts and gained 2.7%, 2.6% and 1.8%, respectively. Wipro, Tata Motors and IndusInd Bank shed around a per cent each.
Shares were mostly lower in Asia on Thursday as worries about the US economy and a possible default on US government debt pulled Wall Street lower.
Japan's Nikkei share average clawed back lost ground on Thursday after two consecutive sessions of losses, supported by chip-related companies on earnings optimism and robust inflows from foreign investors. The Nikkei advanced 0.4%. The broader Topix slid 0.3%.
China's blue-chip index wiped out all of its 2023 gains while Hong Kong's key benchmark tumbled to a near six-month low, as a widening U.S.-China trade and technology dispute added to already weak sentiment around U.S debt ceiling negotiations.
China's CSI 300 Index slipped 0.22%, while the Shanghai Composite Index closed down 0.11%, both posting a three-day losing streak. In Hong Kong, the Hang Seng Index lost 1.93% while the Hang Seng China Enterprises Index slumped 2.23%, with tech stocks including Tencent, Alibaba and Meituan leading the decline.
European stocks steadied on Thursday after their worst two-day selloff since March as investors balanced concerns over the U.S. debt ceiling standoff and global economic slowdown with optimism from upbeat corporate earnings.
UK's FTSE 100 extended losses on Thursday as investors were anxious about further monetary tightening by the Bank of England, while Cineworld rose after the cinema operator said it expects to exit bankruptcy soon.
India's Ola Electric is planning for an IPO by the end of 2023, according to sources that spoke with Reuters. It has appointed investment bank Goldman Sachs and Kotak Bank to manage the IPO, a source with direct knowledge of the matter told Reuters.
Ola Electric, a manufacturer of electric scooters, is backed by investors such as SoftBank Group Corp and Tiger Global Management and was valued at $5 billion in its last fundraise in 2022.
More investment banks are likely to be added closer to the deal, the source said. Local business website Moneycontrol first reported the IPO plans earlier in the day.
Ola Electric, founded by Bhavish Aggarwal, who also established ride-hailing firm Ola and competes with Uber, is trying to capture India's nascent but promising electric vehicle market.
In the first quarter of 2023, the German economy contracted by 0.3 percent compared with the previous three months and entered recession, data from the statistics office showed on May 25.
Germany's gross domestic product plunged by 0.3% for the quarter when adjusted for price and calendar effects, a second estimate showed. In the previous quarter, the GDP declined by 0.5 percent in the fourth quarter of 2022.
Year-on-year, GDP fell by 0.5% when adjusted for price and calendar effects. (Read More)
Amazon has reportedly postponed the issuance of employment offer letters to campus hires from prestigious Indian institutions such as the Indian Institutes of Technology (IITs) and the National Institutes of Technology (NITs).
A recent graduate from IIT Bombay, who had secured a position as a Software Development Engineer at Amazon, disclosed to Business Today that his offer letter had been deferred until January, instead of the originally planned June commencement.
The deferral of offer letters appears to have affected numerous students from IITs, as indicated by the affected graduate, who mentioned that this situation is widespread across IIT campuses. The graduate further noted that several individuals who had interned alongside them from various campuses also experienced the deferral of their offer letters. (Read More)
Punit Shah, Partner, Dhruva Advisors: "Any asset held by the FPIs are considered to be capital assets and hence the gain earned on all such assets are treated as capital gains and the specified lower rate of tax should apply. The tax authority may be trying to tax the gains on derivatives as business profits and attempt to levy high tax, which would be against the specific provisions of the law applicable to the FPIs. Also, it would not be appropriate for the tax authorities to disallow the set off of losses against the gains just because the tax rates specified are different in the law".
The shares of Zen Technologies jumped nearly 5 per cent in Thursdays's trade as the board approved to convert the compulsorily convertible debentures (CCDs) into equity shares.
The company's scrip was up by 4.74 per cent to ₹346.65 on BSE at the time of writing this copy.
Zen Technologies board approved the allotment of 40,64,627 Zen Technologies shares to holders of CCDs belonging to public category which includes University of Notre Dame DU LAC (14,05,080), Mukul Mahavir Agrawal (11,26,765 shares), Massachusetts Institute of Technology (1,63,660 shares). (Read More)
Gravita India has informed stock exchanges that commercial production and recycling of waste rubber has started at its plant in Tanzania in East Africa. The plant has an annual capacity of around 3,000 MTPA. Going forward, the company has plans to increase the said capacity to 6,000 MTPA.
Gravita India is a leading recycling company, having a manufacturing presence around the globe.
The company has incurred capital expenditure of ₹3.86 crore for setting up of the facility in phase-1 which has been funded through internal accruals. (Read More)
Steel prices have been on a decline since the beginning of FY2024, with domestic hot rolled coil (HRC) prices plummeting 3.8% in the current quarter due to falling Chinese exports, rating agency Icra said in a report on Thursday.
Icra has revised its baseline steel price predictions for FY2024, forecasting an average year-on-year decrease of 4-5% in domestic HRC prices, a stark contrast to the previously projected marginal year-on-year increase of 1-2%.
Jayanta Roy, senior vice-president & group head of corporate sector ratings at Icra, noted that despite 2023 starting positively for the steel industry, bolstered by the reopening of the Chinese economy and the subsequent potential for recovery in steel demand, the present dynamics suggest a more challenging landscape. (Read More)
IT major Wipro Chairman Rishad Premji has taken almost a 50% cut in his remuneration for the financial year ended March 2023. He will receive a total compensation of $951,353 which is almost 50% less than that of his remuneration in the last fiscal, according to a media report.
Rishad Premji's remuneration in the last fiscal stood at $1,819,022 as per Form 20-F filed with U.S. Securities and Exchange Commission by Wipro, reported CNBC.
The reduction in the compensation of Wipro's Chairman is seen for the first time since the pandemic. In the pandemic, he had a cut of 31 per cent. For the year 2019-20, he was compensated a total $0.68 million against $0.98 million in the previous year. (Read More)
The Indian Space Association (ISpA), an industry body, has urged the Telecom Regulatory Authority of India (Trai) to adopt a comprehensive approach and allocate satellite spectrum through administrative methods to support the growth and global competitiveness of the emerging space industry.
ISpA highlighted that the Department of Telecom (DoT) has assumed in its reference that satellite spectrum allocation should be conducted via auctions. However, ISpA emphasized that around the world, spectrum for satellite communication purposes is allocated through administrative processes.
In response to the DoT's terms of reference, ISpA's Director General, AK Bhatt, stated on Wednesday, "The terms of reference laid down by the DoT to Trai presuppose that the method of assignment of spectrum needs to be auctioned. This, we submit, brings a bias to the whole consultation process." (PTI)
5paisa Capital Limited on Thursday said that it has appointed former Google, Uber and Amazon senior executive Narayan Gangadhar as chief executive officer with immediate effect as it aims to improve its cutting-edge tech platform and accelerate digital transformation.
In February, he had resigned as the CEO of Angel One.
Gangadhar has over two decades of experience, mostly with global tech giants, based out of San Francisco Bay Area in the US. He was the Head of Engineering at Uber managing over 1,000 innovators, building core engineering platforms, core APIs and cloud solutions to help Uber’s operations in over 500 cities across the world. (Read More)
The towel-to-paper maker company Trident Group shares down by nearly 6 per cent on Thursday post announcing its March quarter earnings.
The shares of Trident was down by 5.67 per cent to ₹32.75 on BSE at the time of writing this copy. On a year-to-date basis, the stock has declined by nearly 4 per cent.
Trident Group announced its March quarter results on May 24, reporting a net profit of ₹129.7 crore, registering a decline of 28.4 per cent, compared to ₹181 crore in the corresponding quarter last year. (Read More)
The upcoming merger between HDFC and HDFC Bank Ltd is anticipated to occur in just 4-5 weeks, leading to a decrease in net interest margin (NIM) for the lender this year, according to brokerages' reports on Thursday, following a meeting between the management and analysts.
Nomura analysts stated in a report that the bank expects its NIM, a crucial measure of profitability, to decline from 4.1% last year to 3.7%-3.8% in 2023-24 due to the merger.
Nevertheless, Nomura noted that the impact would be partially mitigated by reduced credit costs and operating leverage, as indicated by HDFC Bank CEO Sashidhar Jagdishan during the meeting.
In April, the Reserve Bank of India granted selective regulatory relief to HDFC Bank to facilitate a smoother merger process.
As per a note from Macquarie, HDFC Bank's management informed analysts that the bank aims to maintain a post-merger return on assets ranging from 1.9% to 2.1% for 2023-24, compared to 2.1% in the previous fiscal year.
Following the merger, the bank will continue to prioritize deposit mobilization as a key area of focus.
Facebook's parent company, Meta Platforms, has implemented a final phase of job cuts, affecting various departments and operations. The layoffs were part of a larger plan announced in March to eliminate a total of 10,000 roles.
Among the affected employees are Avinash Pant, the director of marketing for India, and Saket Jha Saurabh, the director and head of media partnerships. These top executives did not provide immediate comments to Reuters on the matter. (Read More)
Anand Rathi’s report on Tata Power: Consolidated Revenue up by 4.13% at 124,538 million in Q 4 FY 23 vs 119,600 million in Q 4 FY 22 due to higher sales across Distribution Companies capacity addition in Renewables Consolidated Revenue growth of 32% at 5,60,330 million vs 4,25,760 million in FY 22 due to higher availability in Mundra Thermal Plant which operated under Ministry of Power MoP guidelines, higher sales across distribution companies robust addition in Renewables portfolio
Consolidated EBITDA up by 38% at 31,010 million vs 22,530 million in Q 4 FY 22 due to lower under recovery in Mundra, capacity addition in Renewables execution of Solar EPC projects Consolidated Reported PAT up by 48% at 9,390 million vs 6,320 million in Q 4 FY22 supported by strong performance across all businesses
The TPREL rooftop business also has seen very good traction in the quarter and 300 MW of capacity was installed in the last quarter In addition to this, 400 MW of new orders have been won during this quarter The rooftop business has a very healthy order book of 468 MW worth 19 000 million companies' rooftop business has grown many times and they did installation during the year of 718 megawatts with a revenue of 27,770 million. Their solar rooftop business has expanded more than 1600 MW
In the green mobility space, company continue to grow and have a lot of partnerships Company recently signed up with the Coimbatore Municipal Corporation and also with GAIL They have more than 3 778 public and semi public EV chargers and nearly 39 000 home chargers, and they expect it to grow in the coming years by adding public charges as well as fleet chargers and home chargers
Tata Power net debt has reduced further by Rs28,000 million in the March quarter and currently the debt is now 3 53 280 million This is because of very healthy operating performance, equity infusion by our strategic partner, and working capital release
Capex for renewables is close to 2 500 crore out of a total consolidated capex of Rs. 6,500 crore Pipeline for renewables includes 2 6 GW, and the order book is ₹17,000 crore, indicating higher capex for FY' 24
Tata Power continues to steadily move towards its long term aspiration built on businesses of the future while maintaining a healthy balance sheet This is clearly visible from the improvement seen in the operational and financial metrics in each passing quarter With rapidly growing generation capacity at its disposal, strengthened focus on EV and renewables businesses, we expect the company's performance to improve from current levels We maintain our rating on the stock to BUY with a target price of 256.
Share prices of Bajaj Auto, ITC, Britannia Industries, TVS Motor Company, Apollo Tyres, Indian Hotels and Delta Corporation were among the 63 stocks that were trading at their 52-week high levels Wednesday on NSE led by strong buying momentum.
Among Nifty50 stocks, Bajaj Auto share price rallied nearly 3% to hit a 52-week high of ₹4,650.00, ITC gained 2.06% to touch ₹442.45, while Britannia Industries jumped 4% to hit ₹4,705.45 on the NSE.
Other stocks that hit a 52-week high on Wednesday include Andhra Cements, Anupam Rasayan India, Aptech Ltd, CEAT, CG Power and Industrial Solutions, Chalet Hotels, Elgi Equipments, Gujarat State Petronet, Glenmark Life Sciences, KPIT Technologies, Man Industries (India), NBCC (India), NMDC Steel, Star Cement, Venus Pipes & Tubes, among others. (Read More)
Tejas Anil Shigrekar, Commodities and Currencies Senior Technical Analyst, Angel One Ltd: Gold looking for a reversal
The short-term bearish trend is projected to revert into neutral or bullish territory. We need to keep a close eye on important support levels of 59500. As long as the price of MCX GOLD continues to be significantly below 59770, short trades could be advantageous.
On a Technical basis, currently, the RSI (14) is below 70, indicating that it is in an overbought zone, with negative divergence. Prices are trading above their 50-day exponential moving average (EMA). However, when we look at the longer timeframe on the chart and use the Fibonacci retracement tool, prices hold support near the 78.60% fib ratio and likely form a double bottom pattern, indicating that the prices will revert in the short run. Keeping this support level in mind, trend traders should not hesitate to buy gold at this level.
BUY MCX GOLD AT 59800 SL 59500 TGT 60450- 60740
India’s economic growth may touch 6.5% in the current fiscal year and surpass the projected 7% growth rate in the previous year, Reserve Bank of India (RBI) governor Shaktikanta Das said while adding a note of caution about inflation and El Nino.
“The situation is very dynamic, and the war against inflation is not over; we have to remain alert, there is no cause for complacency, we have to see how the El Nino factor that is anticipated will play out," Das said at the annual session of the Confederation of Indian Industry (CII) in New Delhi.
India’s retail inflation slowed to an 18-month low of 4.7% in April primarily due to a moderation in food prices, which makes up nearly half of the consumer price basket. The RBI expects the May figure to be even lower. (Read More)
Himanshu Binani - Research Analyst, Prabhudas Lilladher Pvt Ltd on Bayer Cropscience (BYRCS IN): Rating: ACCUMULATE | CMP: Rs4,118 | TP: Rs4,720
Q4FY23 Result Update - Decent performance in challenging times..!!
Quick Pointers:
§ Better liquidation in corn seeds business.
§ Healthy product mix led to gross margin improvement of 50bps YoY to 51.0%
We broadly keep our FY24/25E estimates unchanged. BYRCS reported decent set of numbers with revenue growth of 2% YoY, mainly driven by strong sales in Crop Protection (CP) and consistent performance in corn hybrid seeds. We believe, strong growth in corn hybrid seeds was largely led by better acreages in rabi season (up 16% YoY), supported by remunerative corn prices (up 7% YoY to Rs2,180/quintal as on March’23). Also better product mix in-turn led to 830bps sequential improvement in gross margin, despite a deflationary RM cost scenario (provisions of high cost inventory). Better gross margins (up 50bps YoY) coupled with lower opex (-100bps YoY) partially offset by higher employee cost (+150bpsYoY) ensued muted EBITDA margins (+10bps YoY) to 20.9%. Still BYRCS reported exceptional gains of Rs1.38bn in FY23 (4Q’23 at Rs31mn) towards sale of environmental science business, as against gains of Rs585mn in FY22 (4Q’22 NIL) (towards sale of part of seeds distribution business to Crystal crop protection). Additionally, net cash balance of Rs8.7bn translates into Rs193/share in FY23 as against Rs175/share in FY22.
We believe that near term weather challenges in domestic market coupled with pricing pressure in Glyphosate will likely keep stock performance under check. That said, we maintain ‘Accumulate’ rating on the stock with revised TP of Rs4,720 (earlier Rs5,390) based on 25xFY25 EPS (earlier 30X September 24 EPS).
Himanshu K Singh - Research Analyst, Prabhudas Lilladher Pvt Ltd on Ashok Leyland (AL IN) - Rating: BUY | CMP: Rs150 | TP: Rs215
Q4FY23 Result Update - Aiming for double digit growth and margins
Quick Pointers:
§ AL’s domestic CV market share improved to ~32% ie. c5% increment YoY
§ EBITDA margin improvement (+210bps QoQ) led by realisation improvements and operating leverage due to better volumes
We increase our FY24/FY25 EPS estimates by 8% / 3.8%, to factor in 4QFY24 results and management commentary on M&HCV volume and margin sustainability. Ashok Leyland’s (AL) 4QFY23 EBITDA margin at 11% (+c210bps QoQ) beat PL estimates on the back of commodity prices softening, operating leverage and lower discounting. Cost optimization on administrative overhead and debottle-necking for better operational efficiency shall continue to benefit margins. AL gained market share helped by its modular program, AVTR range, launch of CNG ICVs, network expansion, etc.
Going ahead, demand outlook remains robust as CV upcycle continues and MHCV segment should continue to outperform led by strong fundamentals. AL, in our view, is well placed to sustain its market share gains of c33% of trucks and c27% of busses in FY24 led by governments focus on infrastructure, replacement demand, scrappage policy and healthy traction from core industries. LCVs will benefit from filling of white space, continued growth in end markets, and network expansion. Additionally, price hike, lower commodity costs, cost reduction efforts and operating leverage will lead to margin expansion (EBITDA margin expansion of c210bps over FY23-25E). Maintain ‘BUY’ at target price of ₹215 on Mar-25E EV/EBITDA of 13x (includes ~ ₹11 for HLF).
UltraTech Cement partners with Finland-based Coolbrook, a technology and engineering company, to start a joint development project with the aim to install Coolbrook’s RotoDynamic HeaterTM (RDH) technology at an UltraTech production plant for the electrification of cement production.
In a press release, UltraTech said that it is the first cement company in India and among the first in the sector globally to explore the use of this technology that will help reduce burning of coal in cement production processes. The technology uses electrification from renewable sources for the heating processes in cement production and removes the need to use fossil fuels.
The company said that this will accelerate the decarbonisation of their cement manufacturing operations.
The shares of Adani Enterprises dropped by over two per cent on Thursday after it was placed under the short-term additional surveillance framework by stock exchanges from May 25.
The stock was down by 2.80 per cent to ₹2,407.45 on BSE at the time of writing this copy.
On Wednesday, BSE and NSE in two separate circulars said, “applicable rate of margin shall be 50 per cent or existing margin whichever is higher, subject to maximum rate of margin capped at 100 per cent, with effect from May 26, 2023 on all open positions as on May 25, 2023 and new positions created from May 26, 2023." (Read More)
Nykaa share price fell over 2% in the opening trade Thursday after the company’s net profit for the fourth quarter of FY23 declined by nearly 72%. The stock declined as much as 2.39% to ₹122.05 apiece on the BSE.
However, the stock soon recovered and was trading 1.56% higher at ₹127.00, at 9:35 am.
FSN E-Commerce Ventures, which runs retail stores under the name Nykaa, reported a 71.8% decline in net profit to ₹2.4 crore in Q4FY23 as against a net profit of ₹9 crore in the corresponding quarter last fiscal. (Read More)
Oil prices maintained a three-day increase following a substantial decline in US stockpiles and a cautionary message from Saudi Arabia directed at short-sellers. Despite mounting tensions surrounding the US debt-ceiling deadlock, crude oil managed to find support.
West Texas Intermediate (WTI) crude oil traded above $74 per barrel after experiencing a nearly 4% surge over the past three days. Last week, US nationwide crude inventories witnessed a significant drop of more than 12 million barrels, marking the largest decline in six months. This contributed to the prevailing bullish sentiment in the market, especially after Saudi Arabia's Energy Minister, Prince Abdulaziz bin Salman, issued a warning to speculators, advising them to be cautious.
Nevertheless, concerns persist regarding the ongoing struggle to raise the US federal debt limit and its potential implications for the global economy and energy demand. Fitch Ratings expressed its consideration of downgrading US credit ratings on Wednesday, citing the worsening political polarization that is impeding a resolution to the issue.
Food giants Nestle India Ltd and ITC Ltd have emerged as the finalists in the race for leading ingredient maker Capital Foods Pvt. Ltd, two people aware of the matter said. A deal may value the maker of Ching’s Secret and Smith & Jones food ingredients between ₹4,000 crore and ₹5,000 crore, they said.
“Nestle’s bid is the highest. ITC’s bid is very close to that," one of the two people said on condition of anonymity.
For several months, Swiss multinational Nestle SA, the world’s largest food company, has been in talks with Mumbai-based Capital Foods, which makes popular Chinese food ingredients. The company, which claims to be India’s largest culinary food ingredient maker, has also seen interest from marquee names such as Kraft Heinz, ITC, Hindustan Unilever Ltd and Tata Consumer Products. (Read More)
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: A significant trend in the market now is India’s outperformance compared to most developed and emerging markets. Nifty is up by 2.9% during the last one month compared to negative growth in Europe, around 1% growth in S&P 500 and lacklustre performance in most emerging markets. The important factor driving India’s outperformance is the sustained FPI inflows which has touched ₹28169 crores in May till 24th. (Source: NSDL) FPIs have been buyers in India in nineteen out of the last twenty trading sessions. This trend is likely to continue since India’s growth and earnings prospects are much superior to those of other economies. The important factor weighing down the markets in the near term is the lack of breakthrough in the US debt ceiling impasse. Investors may utilise the current weakness in the market to buy high-quality stocks since resolution to the debt ceiling impasse is almost certain and post the resolution a rally is likely.
Ratings agency Fitch has put United States' AAA" rating, its highest rank, on a negative watch , raising the stakes as talks over the debt ceiling go down to the wire.
Fitch put the country's "AAA" rating, its highest rank, long-term foreign-currency issuer default rating (IDR) on rating watch negative in a precursor to a possible downgrade if lawmakers fail to raise the amount that the Treasury can borrow before it runs out of money, which could happen as soon as next week.
Fitch said that the failure to reach a deal "would be a negative signal of the broader governance and willingness of the U.S. to honor its obligations in a timely fashion," and would be unlikely to be consistent with a "AAA" rating. (Read More)
In a move aimed at safeguarding customer privacy and reducing the risk of online scams, the Ministry of Consumer Affairs has issued an advisory to retailers. The advisory emphasizes that shopkeepers should not compel customers to provide their personal contact details, particularly mobile numbers, when generating bills. While it is not mandatory for customers in India to share their mobile numbers with retailers for billing purposes, many customers have expressed annoyance at being repeatedly asked for this information.
The government's advisory serves as a response to these concerns, acknowledging the rising incidence of online scams conducted through mobile phone and WhatsApp messages. Disclosing personal mobile numbers can potentially expose individuals to scammers who exploit such information. By taking this step, the government aims to protect consumer privacy and enhance security for customers. (Read More)
The Indian rupee opened 10 paise lower against the US dollar Thursday as demand for safe-haven dollar increased amid worries over the US debt ceiling. The local currency opened at 82.76 a dollar as compared to the previous close of 82.66.
The dollar index rose to 104 and the 2-year US yield climbed to near 4.40%, both highest in more than two months.
On Wednesday, the Indian rupee ended 14 paise higher at 82.66 against the US dollar led by a softer dollar and possible FII inflow. (Read More)
India's largest life insurer, LIC on Wednesday announced that it has diluted its stake in the power-generating firm, NHPC. The insurer reduced its shareholding in NHPC by 2.017% in a series of tranches.
As per the regulatory filing, LIC diluted its shareholding to 3,19,981,616 equity shares in NHPC, representing 3.186% in the latter.
Earlier, LIC's stake stood at 5,22,611,195 equity shares or 5.203% in NHPC.
That being said, LIC offloaded about 2.017% in NHPC.
Generally, listed firms are required to disclose any changes in ownership exceeding 2%, as per the regulatory guidelines. (Read More)
In a media report on Wednesday, it was revealed that the Tata Group is likely to select the United Kingdom as the preferred site for its highly profitable electric battery plant, aimed at meeting the demands of Jaguar Land Rover (JLR).
This decision holds great significance for the UK automotive industry, and the government led by Prime Minister Rishi Sunak has been actively pursuing this opportunity. Ongoing discussions have revolved around creating a favorable economic environment with incentives to secure the establishment of this multi-billion-pound plant.
According to the BBC, the anticipated location for this new Gigafactory is Somerset, situated in the south-west region of England. This development is expected to bring about a substantial boost to the local economy by generating approximately 9,000 job opportunities.
The term "Gigafactory" is a general reference to large-scale facilities dedicated to manufacturing batteries for electric vehicles.
According to a senior banker, the Reserve Bank of India is considering purchasing government bonds worth up to 1.5 trillion rupees ($18 billion) to address the anticipated tightening of banking liquidity later this year.
In an interview on Monday, B. Prasanna, the group head for global markets sales, trading, and research at ICICI Bank Ltd, the nation's second-largest private lender by market value, stated that the Reserve Bank of India might reduce the cash reserve ratio by 0.5% in the second half of the fiscal year. Additionally, they may commence bond purchases in the December quarter to maintain the current levels of banking liquidity.
The banking system is expected to experience a decrease in liquidity due to increased spending during the upcoming state elections later this year. Notably, states such as Rajasthan, Madhya Pradesh, and Chhattisgarh are set to hold elections during the busy credit season in October, which coincides with a surge in economic demand.
Shares of Adani Enterprises have been put under the short-term ASM framework from Thursday by leading bourses BSE and NSE.
Adani Enterprises Ltd is shortlisted in short-term Additional Surveillance Measure (ASM) framework Stage-I effective from May 25, the National Stock Exchange (NSE) and the BSE said in two separate circulars on Wednesday.
Under the short-term ASM, the exchanges said, “applicable rate of margin shall be 50 per cent or existing margin whichever is higher, subject to maximum rate of margin capped at 100 per cent, with effect from May 26, 2023 on all open positions as on May 25, 2023 and new positions created from May 26, 2023." (Read More)
Bharat Dynamics, Zee Entertainment, Binani Industries, Emami, Indian Railway Finance, Kalyani Forge, Steel Authority of India, and Vodafone Idea will be among the stocks in focus as they will be declaring their March quarter earnings today. (Read More)
The Ministry of Coal has extended the last date for submission of bids till June 27, 2023, for the ongoing seventh round of commercial coal mine auctions.
In view of requests received from many potential bidders, the Ministry on Wednesday said it extended the last date for bid submission by 28 days. Earlier, the deadline was up to May 30, 2023.
With a view to creating additional production capacity, the Ministry has so far allocated or auctioned 133 mines with cumulative Peak Rated Capacity (PRC) of 540 million tonnes per annum (MTPA), out of which 48 coal mines came into production having cumulative PRC of 195 MTPA.
The production from captive/commercial mines has reached 16.25 MT in the ongoing financial year 2022-23, achieving significant growth of 10.2 per cent compared to 14.75 MT produced during the same time period last year. (ANI)
The Kolkata Port, now known as Syama Prasad Mookerjee Port, is planning to invest ₹4,000 crore by 2030 to expand cargo handling capacity to 130 million tonne, its chairman Rathendra Raman said on Wednesday. The port can now handle 87 million tonne of cargo and had previously set a target to ramp up the capacity to 110 million tonne by 2030. "One of my key priorities is to maintain double-digit growth, profitability and transforming the port into a green one. To ensure sustained growth, we will increase the total cargo handling capacity to 130 million tonne and will invest ₹4,000 crore," Raman told reporters here. He outlined 11 upcoming projects aimed at modernising and enhancing the infrastructure in phases to achieve the goal. (PTI)
Cummins India Limited is a mid-cap capital goods company that announced its Q4 and FY23 results today along with a whopping dividend of 650% for its eligible shareholders.
The company’s total standalone sales for the quarter ended March 2023 stood at ₹1,889 Cr. which increased by 29% YoY compared to ₹1,468.50 Cr in the quarter ended March 2022. The company said its standalone domestic sales reached ₹1,396 Cr. increased by 33% YoY and exports sales stood at ₹493 Cr during the quarter under review, up by 17% compared to the same quarter last year. (Read More)
Largest life insurer in India, LIC posted impressive growth in the bottom-line for the fourth quarter of FY23. Consolidated Q4 FY23 PAT stood at ₹13,190.79 crore, rising by a breathtaking 447.47% or 5.5 folds year-on-year. In the previous fiscal's Q4, the PAT stood merely at ₹2,409.39 crore.
Sequentially, the growth was 107.77% in Q4 PAT. In December 2023 quarter, the PAT stood at ₹6,348.71 crore.
The latest profitability is after tax and extraordinary items. (Read More)
Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher recommends buying the following stocks:
Buy Eicher Motor at 3601 with a stop loss 3555 and a target price of 3700
Buy REC Ltd at 130.50 with a stop loss 128 and target price of 136
Buy Mazagon Dock Shipbuilders Ltd at 770 with a stop loss 757 and target price of 804 (Read More)
The corporate earnings for the quarter ending March 2023 have so far been in line with street estimates. The Q4 earnings, which is now in its last legs, have largely seen the banking sector outperforming due to the rising interest rates, while the IT sector feeling the heat of the US recession.
Most banks reported a healthy earnings beat in Q4FY23, mainly led by continued strong credit growth, healthy margins, higher recoveries from written-off accounts and lower LLP, as asset quality continues to improve.
On May 25, Zee Entertainment Enterprises, Vodafone Idea, Steel Authority of India, Bharat Dynamics, Emami, Radico Khaitan, among other companies will announce their March quarter earnings. (Read More)
The government late on Wednesday allowed exports of broken rice based on permission given by the government for shipments to other countries for meeting their food security needs, though the export ban on broken rice is in place.
“The export policy of broken rice is prohibited; however, export will be allowed on the basis of permission granted by the Government of India to other countries to meet their food security needs and based on the request of their government, the Directorate General of Foreign Trade (DGFT) said in a notification. (Read More)
Reliance Industries Ltd is rolling out a cost-efficiency drive across its units Reliance Retail and Reliance Jio Infocomm, reducing hiring, reviewing compensation benchmarks, and firing underperformers, multiple executives from the company and the wider industry said.
The retail business wants to eliminate the duplication of roles that followed its recent acquisitions, while in telecom, most of its 5G network rollout is complete, the people said, all of whom spoke on condition of anonymity.
“Reliance Retail and Jio had hired over the last year on a very large scale. They had recruited employees at higher-than-usual market value and now have been told by the top management to scale down. Those who are in the lower rung of performance may get retrenched," a company executive said. (Read More)
Wall Street fell again Wednesday as stocks tumbled worldwide on worries about the economy.
The S&P 500 dropped 0.7% after House Speaker Kevin McCarthy said Republicans and Democrats remain “far apart" in their efforts to prevent a potentially disastrous default on the U.S. government's debt. The main U.S. stock index is on track for its worst week in more than two months as the once-unthinkable creeps closer to possibility.
The Dow Jones Industrial Average dropped 255 points, or 0.8%, while the Nasdaq composite lost 0.6%.
Other markets around the world fell even more as discouraging figures piled up on the economy. Stock indexes tumbled 1.7% in London, 1.9% in Frankfurt and 1.6% in Hong Kong.
Inflation in the United Kingdom remains worse than expected, raising worries that the Bank of England may keep hiking interest rates and squeezing its economy. In Germany, business confidence fell in Europe’s largest economy. And in China, worries remain about a weaker-than-hoped reopening from COVID restrictions as tensions rise with the United States over technology and security.
On Wall Street, the focus is squarely on Washington, where the U.S. government could run out of cash to pay its bills as soon as June 1 unless Congress allows it to borrow more. The widespread expectation is that a default would result in tremendous economic pain. (AP)
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