PremiumInvestors bet that the upcoming December U.S. inflation data would be 6.5%, which would allow the Federal Reserve to slow the pace of interest rate hikes. Indian investors will keep an eye on December quarterly earnings reports from big players.
The Q3FY23 business update of Adani Wilmar (AWL) augurs a sequential improvement in performance, highlighted domestic brokerage and research firm Edelweiss, adding that although Adani Wilmar competes in an extremely competitive business (edible oil and foods/FMCG), it has consistently delivered strong volume growth across segments. Moreover, its commitment to expand the foods basket would help moderate its excessive dependence on the edible oils basket. AWL is committed to grow both organically and inorganically in the foods segment.
“FY23 was an abnormal year for oil players due to high volatility in oil prices, which affected AWL’s margins. That said, following a significant correction in palm oil from its peak, AWL’s margin profile would be better in FY24. Even so, keeping in mind rural slowdown and likely higher competition (entry of Reliance), we are cutting FY23/FY24E EPS by 23.1%/7.3%," the note stated. (Read More)
The lawmakers from the US State of Washington have urged the Biden administration to help remove or reduce the tariffs on American apples imported to India as the country's fruit industry has incurred significant losses due to New Delhi's retaliatory measures.
In a letter to US Trade Representative Katherine Tai and Commerce Secretary Gina Raimondo, all members of the House of Representatives from Washington State and other two senators said the tree fruit industry suffered losses due to India’s retaliation to US tariffs.
On average, 30 per cent of the apples, cherries, and pears produced in the Pacific Northwest are exported and India was once a strong market. With retaliatory tariffs in place, Washington state apple growers have continuously lost market share in India, the lawmakers said.
Prior to the implementation of these tariffs, India was our number two export market, valued at USD 120 million annually, they said. (PTI)
India has requested the United States to speed up the issuance of business visas so that people can undertake short trips to pursue their business and trade interests, said Union Commerce Minister Piyush Goyal on Wednesday.
Addressing a press conference after participating in the 13th India-US Trade Policy Forum in Washington, the minister said, “We found very good resonance to our request that issuance of business visas which is taking a long time back home in India is an area which needs to be expedited, so that business persons interested on both sides, need to have faster processing of business visas so that trade, investment does not suffer." (Read More)
Nykaa share price fell on January 12 after news reports said 1.4 crore shares of parent company FSN E-Commerce Ventures changed hands in a large trade today. Nykaa share price fell more than 2% on January 12 after news reports said 1.4 crore shares of parent company FSN E-Commerce Ventures changed hands in a large trade today. (Read More)
Shares of Sah Polymers made their positive market debut on Thursday with the stock listing at ₹85 apiece on the NSE, a premium of more than 30% of as compared to its IPO issue price of ₹65 per share. On the BSE, Sah Polymers shares started trading at ₹89 a piece.
The initial public offer (IPO) of polymer manufacturer Sah Polymers was subscribed over 17 times on the last day of subscription. The initial share-sale received bids for 9,79,44,810 shares against 56,10,000 shares on offer. The offer had opened for public subscription on Friday, December 30, 2022 and will conclude on Wednesday, January 4, 2023. (Read More)
The funding for India's startups dropped by 33 per cent to $24 billion in 2022 as compared to the previous year. However, it was nearly double the amount recorded in 2019 or 2020, said a PwC India report on Wednesday. Global investors were still positive about the Indian startup ecosystem despite the global slowdown, as per the report titled 'Startup Tracker-CY 22'.
"Funding for Indian startups in CY22 was nearly $24 billion, a drop of 33 per cent in comparison to CY21 but was still more than twice the funds raised in CY20 and CY19 each", it said. (Read More)
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: The US inflation data expected tonight will be market-moving. If the December inflation data declines to 6.5% as the market expects with a 0.1% decline on a monthly basis, that can lead to the Fed downshifting its rate hiking with a 25 bp hike in February and then pausing. This can trigger a rally in equity markets. On the other hand, if inflation remains high, there can be a market sell off. So watch out for this crucial data.
In India, FIIs continued their selling spree for the 14th straight session taking the cumulative selling to ₹19795 crores, dragging the market down.
An important lesson from market experience in 2022 is that despite FII selling of ₹146048 crores Nifty went up by 4.3 %. Therefore, even though FII selling can have a short-term impact, that is unlikely to last. If incoming economic data turns out positive, domestic investors can trump FIIs like in 2022.
The banking sector is expected to report a healthy performance in Q3FY2023E, led by strong loan growth, margin improvement, and lower credit costs. The banking sector is expected to report 35 per cent year-on-year growth in earnings in December quarter, on the back of healthy loan growth and lower credit cost, says brokerage Sharekhan. The brokerage expects Net interest income (NII) growth to be higher at 23 per cent year-on-year on account of solid loan growth.
"The quantum of margin expansion is expected to be lower compared to the previous quarter due to increased cost of deposits to garner a higher share of retail liabilities. Non-interest income performance for banks would continue to remain weak, led by lower treasury income. Asset quality may improve further or is expected to remain stable with modest slippages (ex. Restructured) along with improvement in recoveries and upgrades," Sharekhan said in its report. (Read More)
Bitcoin price today gained to trade above $18,000 as the world's largest and most popular digital token was trading with gains of more than 4% at $18,224. Bitcoin has advanced for nine straight days, the longest such streak since 2020, according to data compiled by Bloomberg. Bitcoin has added more than 10% this month and the second-largest token Ether about 17%.
Overall, the global cryptocurrency market cap today remained below the $1 trillion mark, even as it was up over 4% in the last 24 hours to $926 billion, as per the data by CoinGecko. (Read More)
STOCK IN FOCUS
Blue Star (CMP 1,249): With the higher earnings growth, better margin profile and improved business visibility over the medium term, we have our BUY rating on BLSTR, with a 1-year revised Target Price of Rs1,520
Intraday Picks
FSL (PREVIOUS CLOSE: 103) BUY
For today’s trade, long position can be initiated in the range of Rs102-
103 for the target of Rs107 with a strict stop loss of Rs101.
APOLLO TYRE (PREVIOUS CLOSE: 319) SELL
For today’s trade, short position can be initiated in the range of Rs324-
326 for the target of Rs315 with a strict stop loss of Rs329.
CANFINHOME (PREVIOUS CLOSE: 550) BUY
For today’s trade, long position can be initiated in the range of Rs542-
547 for the target of Rs568 with a strict stop loss of Rs538.
Disney-Star, the media rights holder for bilateral matches at home, and the Board of Control for Cricket in India (BCCI) have been at loggerheads over the quantum of fees for the India-South Africa series, which was originally scheduled for 2020, but was held in 2022 due to the pandemic. According to the five-year media rights contract, signed in 2018, Disney Star agreed to pay ₹46.5 crore per match for all matches played in 2020, and ₹78.9 crore for 2022. Disney Star is of the view that it should pay ₹46.5 crore even in 2022 for the said series, given that technically it was from the third year of the 2018-23 cycle considering that matches were not played in 2020-21 following the outbreak of covid. (Read More)
Infosys, HCL Technologies, Cyient, GM Breweries, and Anand Rathi Wealth will be among the stocks in focus as they declare their December quarter earnings today. (Read More)
Subway is exploring a potential sale that could value the sandwich chain at more than $10 billion, according to a person familiar with the matter.
The process is in its early stages and Subway could still decide against pursuing a sale, said the person, asking not to be identified because the information isn’t public.
“As a privately held company, we don’t comment on ownership structure and business plans," Subway said in an email. “We continue to be focused on moving the brand forward with our transformational journey to help our franchisees be successful and profitable." (Read More)
After TCS reported a mixed set of numbers on January 9, Infosys is expected to announce its third-quarter earnings today. The IT major is expected to post better numbers than midcap counterparts, but the quarter that ended December 31 is usually slow for the IT companies on account of seasonality.
Infosys is expected to post 0.8%-4% revenue growth in the said quarter. Jefferies expects 3QFY23 revenue growth to be soft at 0.8% (QoQ) at $4,590 million due to higher-than-expected furloughs. Whereas, Axis Securities feels the company could report revenue growth of 4% QoQ and believes the management to retain the company’s revenue growth guidance for FY23E at 14%-16% (in CC terms). (Read More)
Passengers of a Bengaluru-bound SpiceJet plane had to wait for a long time at the aerobridge at Delhi airport on Tuesday, with the airline saying the flight was delayed due to weather disruption that led to incoming crew exceeding their duty time limit.
One of the passengers shared on social media a video of many co-passengers waiting at the aerobridge. In the video, some of them were heard asking for water.
The incident happened with passengers of SpiceJet flight SG 8133 from Delhi-Bengaluru.
A SpiceJet spokesperson said the flight was delayed on account of weather disruption in the network and the aircraft's previous rotation.
"As a result of this, the incoming crew was not legal to operate the subsequent flight to Bengaluru and crew was arranged from another incoming flight which was legal as per duty time limitation," the spokesperson said in a statement. (PTI)
IT major HCL Technologies is set to announce its December quarter result on 12 January, after IT bellwether Tata Consultancy Services (TCS) kickstarted the result season earlier this week. HCL Technologies is expected to post 2.7%-3.4% revenue growth in the said quarter.
Jefferies expects 3QFY23 revenue growth at 3.4% (QoQ cc) at $3,185 million driven by 25% QoQcc growth in products segment, but a lower 1% (QoQ c)c growth in the Services segment due to seasonal weakness. (Read More)
French billionaire Bernard Arnault has named his daughter Delphine as head of LVMH luxury empire's Dior fashion house in a leadership shuffle. In another shuffle, Pietro Beccari, who has been the head of Dior since 2018, will be moving to replace long-time Louis Vuitton CEO Michael Burke, 65. The management changes will be effective on 1 February.
Delphine has been executive vice president at Louis Vuitton since 2013, supervising the brand's product-related activities. Previously, she served as deputy managing director at Christian Dior Couture. (Read More)
The rupee gained 13 paise to close at 81.61 against the US dollar on Wednesday, driven by foreign inflows from bonds selling and overall weakness in crude oil prices.
However, a muted trend in domestic equities dented investor sentiments and capped the sharp gains in the rupee, traders said.
At the interbank foreign exchange market, the local unit opened at 81.73 and touched an intra-day high of 81.52 and a low of 81.82 against the greenback.
It finally ended at 81.61, registering a rise of 13 paise over its previous close.
On Tuesday, the rupee settled at 81.74 against the US dollar.
"Indian Rupee appreciated on Wednesday extending gains of the previous day on foreign inflows from bonds selling...and overall weakness in crude oil prices," said Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas.
However, FII outflows and recovery in US Dollar capped sharp gains. (PTI)
Sah Polymers IPO listing date has been fixed on 12th January 2023 i.e. today. As per the information available on BSE website, effective from Thursday, January 12, 2023, the equity shares of Sah Polymers Limited shall be listed and admitted to dealings on the exchange in the list of 'T' group of securities. According to stock market experts, the public issue worth ₹66.30 crore received better than expected response despite being highly priced. They said that polymers market is expected to surge and company's fundamentals are looking strong, so the stock may have a positive debut on Dalal Street today. (Read More)
India is testing the waters of a sluggish global green bond market with its debut sale this month that aims to raise $2 billion for sustainable projects. Indian officials have been clear they want a significant “greenium" for the sale to lower the nation’s borrowing costs, and that will require attracting enough foreign investors to the rupee-denominated debt.
Green bond sales dropped for the first time in a decade last year, as monetary policy tightening hit issuance, and as asset managers came under fire for alleged greenwashing. Companies and governments worldwide raised a total of $863 billion in green, social and sustainability-linked bonds in 2022, a 19% drop from the record $1.1 trillion in 2021, according to data compiled by Bloomberg. (Read More)
U.S. stocks rallied Wednesday as investors locked in their final moves ahead of a highly anticipated report on inflation, one that could show whether Wall Street's rising optimism recently has been warranted or overdone.
The S&P 500 climbed 1.3% for its second straight gain before Thursday morning’s inflation data. The Dow Jones Industrial Average rose nearly 269 points, or 0.8%, while the Nasdaq composite gained 1.8%.
Stocks have started 2023 with gains on hopes that cooling inflation and a slowing economy may get the Federal Reserve to ease off its sharp hikes to interest rates. Such increases can help stamp out high inflation, but they also slow the economy by design and raise the risk of a recession while hurting prices for stocks and other investments.
Economists expect Thursday’s report to show inflation is continuing to cool from its summertime peak, down to 6.5% last month from 7.1% in November and from more than 9% in June. The hope on Wall Street is that such a trend toward normal could convince the Fed to soon halt its blistering set of rate increases, many of which were at shock-and-awe levels that were triple the usual amount. (AP)
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