PremiumIndian share indices rose in early trade on Wednesday. Stocks dipped in Asia today as fears of an economic downturn lingered over financial markets, leaving the dollar hovering at the highest level in more than two years. US stocks closed with gains overnight
Customer Franchise – Customer franchise stood at 60.3Mn( +19.4% YoY/ +4.7% QoQ). New customer acquisition improved and stood at 2.7mn(22.7% QoQ). Both these parameters have shown improvement over Q4’22 when there was a +3.9%QoQ rise in customer franchise and a 14% decrease QoQ in new customer acquisition
AUM- Core AUM showed strong growth and came in at INR 20,40,000 Mn ( +30.7% YoY/+6.19% QoQ)
New loans booked at 7.4Mn vs 4.6Mn in Q1’22 and 6.3Mn in Q4’22
Deposits came in at INR 3,41,000 Mn( +22% YoY/ +10.7% QoQ) . Deposit momentum has been strong last quarter had seen only a +2.6% QoQ rise.
Outlook: AUM growth was strong but slightly below our expectation of 9% QoQ growth but customer acquisition has rebounded strongly after it had seen a de-growth in the last quarter which is a strong positive. Increasing customer acquisition through its omni channel is crucial and company has been successful in doing so
We have a BUY rating valuing the company at 8.7x Sep’24E ABV with TP at ₹8,953.
On the technical front, 15650-15700 holds the demand zone for the index, and any correction could be seen as a buying opportunity. On the contrary, a decisive closure above the 16000 mark could only ascertain the bullish trend in the near period.
Hence, looking at recent price action that construes an unclear market trend, participants are advised to avoid any undue risk and stay abreast with global developments. Also, as much action is seen outside the index, we advocate continuing with a stock-centric approach for better trading opportunities.
The PLI scheme aims to provide nearly ₹2.4 lakh crore worth of incentives over the next five years, with the lion's share going to electronics, auto components, and pharma.
"The Indian consumer was missing in action for almost 5 years due to multiple reasons like demonetization, GST, COVID, and lack of inflation. The growth in per capita GDP picked up in FY22 and per capita GDP was higher than in FY20 after a dip. The discretionary income of Indian consumers is likely to rise from FY23 to FY27," said brokerage firm Emkay Investment Managers.
Global gold prices found some respite today after slumping to lowest in more than six months on Tuesday, amid a rally in US dollar. The greenback surged to the highest in more than two years as investors retreated to the haven, putting pressure on bullion. Today gold prices recovered a bit, rising 0.4% to $1,770.71 per ounce. On Tuesday, gold fell 2.3% to $1,767.53 an ounce, the lowest since December in intraday trading. In India, the fall in bullion has been cushioned by the recent import duty hike.
Bajaj Finance has booked 74 lakh new loans in April-June quarter against 46 lakh a year ago. Consolidated core AUM grew 31% to ₹2.04 trillion. Deposits rose 22% to ₹34,100 crore as on 30 June.
Oil marketing companies--IOC, BPCL, HPCL-- on Wednesday increased the price of domestic 14.2 kg LPG cylinder by ₹50 per unit with effect from today. Domestic LPG cylinder will now cost ₹1053 in Delhi.
The second half of 2022 will be another subdued period for equity capital markets, especially for initial public offerings (IPOs) with a volatile stock market being one of many macroeconomic headwinds, experts said.
Overall fundraising in the equity capital markets dropped to ₹1.01 trillion in the first half of calendar year 2022, compared to a fundraising of ₹1.26 trillion the same period last year, according to data from primary markets tracker Prime Database.(Full report)
Even as volatility rocked debt and equity markets over the past year, infrastructure investment trusts (InvITs) and real estate investment trusts (Reits) became an oasis of stability, with many analysts expecting returns from these instruments to rise further.
With office occupancies and shopping mall footfalls rising steadily after two years of covid-related disruptions, these instruments have performed better than many other asset classes in recent quarters, experts said, with yields of 6-10%. Some analysts expect their returns to cross mid-teens in the medium to long term.
Vodafone Idea Ltd plans to offer its mobility and integrated internet of things (IoT) solutions, including cloud telephony and auto-receptionist, to nearly 250,000 micro, small and medium enterprises over the next year, a top company executive said. India’s third-largest telco is eyeing the advisory business to corner the opportunities in this under-tapped segment.
The two firms and several companies in West Asia, have expressed interest in Coal India’s proposed aluminium project in Odisha, two officials aware of the matter told Mint The world’s biggest coal producer recently invited expressions of interest (EoI) for equity partners in the project that includes bauxite mining, alumina refinery and aluminium and an associated coal preparation plant. (Full report)
Adani Power, Tata Motors, Biocon, Marico, NTPC and other stocks that will be in focus today.
Gold prices gained on Wednesday, following a selloff in the previous session that pushed bullion to a seven-month low, after the dollar halted its rally.
Spot gold rose 0.4% to $1,770.71 per ounce, as of 0059 GMT. U.S. gold futures firmed 0.3% to $1,768.80. Gold lost more than 2% on Tuesday.
Safe-haven demand strengthened the dollar in the previous session to levels last seen in 2002, making greenback-priced gold more expensive for buyers holding other currencies.
Crude oil futures rose nearly 3% on Wednesday as investors piled back in after the heavy rout in the previous session, shifting their focus again to supply concerns even as worries about a recession mounted.
Brent crude futures rose $2.82, or 2.7%, to $105.59 a barrel by 1222 GMT, after plunging 9.5% on Tuesday, the biggest daily drop since March.
U.S. West Texas Intermediate crude climbed $2.46, or 2.4%, to $101.95 a barrel, after closing below $100 for the first time since late April.
British Prime Minister Boris Johnson named new UK health secretary and finance minister shortly after health secretary Sajid Javid and chancellor of the exchequer Rishi Sunak tendered their resignation, media reports said.
UK Cabinet chief of staff Steve Barclay has been appointed as the new health secretary. UK education secretary Nadhim Zahawi was named as the new finance minister.
Stocks dipped in Asia on Wednesday as fears of an economic downturn lingered over financial markets, leaving the dollar hovering at the highest level in more than two years.
Falls in Japan, China and Hong Kong hit Asian shares. US futures wavered after a volatile Wall Street session saw equities close up but with little conviction that global shares can escape the clutches of a bear market anytime soon.
Japan’s Topix index dropped 1.4%
South Korea’s Kospi index fell 1.1%
Australia’s S&P/ASX 200 index lost 0.2%
China’s Shanghai Composite index declined 0.6%
Hong Kong’s Hang Seng index retreated 0.7%
Stock indexes on Wall Street ended with meager gains Tuesday, as a late-afternoon rally led by technology companies stemmed the market's losses after an early slump.
The S&P eked out a gain of 0.2% after having been down 2.2% earlier in the day. The Dow Jones Industrial Average lost 0.4%, while the tech-heavy Nasdaq composite closed 1.7% higher.
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