PremiumInvestors fear for the health of US banks after the failure of SVB and this will continue to have an effect on Indian banking stocks as well. The US jobs report data had eased some concerns that the Fed could raise rates steeply at its March meeting after hawkish remarks from Fed Chair Powell this week.
Polyvinyl chloride (PVC) pipes and fittings manufacturers are set to sustain their momentum with a 13-15% on-year volume growth next fiscal, driven by higher budgetary allocation for government schemes in water supply, irrigation, housing, and infrastructure, rating agency Crisil stated on Monday.
In the current fiscal, pipe makers will see a decadal-high growth of 22-24%, driven by strong pent-up demand, after a subdued compound annual growth rate of around 2% over the past three years. (Read More)
Shriram Finance is looking to raise as much as 200 billion rupees ($2.44 billion) to fund its growth in the next financial year starting April, a senior company official told Reuters on Monday.
The retail non-banking finance company (NBFC) aims to grow its assets under management (AUM) by 15% in fiscal 2024 to around 1.9 trillion rupees to 2 trillion rupees, Umesh Revankar, executive vice chairman of Shriram Finance, said.
The company's total AUM was 1.77 trillion rupees as of Dec. 31.
"We will mostly be looking at ECB loans rather than dollar bonds. Right now, the (dollar) bond market is very volatile," Revankar said, adding, "We are looking to utilise our entire $750 million ECB limit next year."
The loans will be anything between three to five years, he said. (Reuters)
India’s hospitality industry not only recovered from the pandemic slump but also stayed on the growth path this fiscal year, as per a new report. Demand outlook for the industry is positive, indicating a promising future, said the report by credit ratings agency CareEdge titled, ‘Back on Hospitable Grounds, Hotels Set to Grow in FY24 Despite Uncertainties’.The sector’s RevPAR, or revenue per available room, which is estimated to reach ₹4,000 to ₹4,100 per room by the end of FY23, reflects marginal growth over FY19 levels, aided by strong recovery in occupancy and average rates. (Read More)
European stocks fell on Monday as bank stocks continued to tumble in the region even as authorities stepped in to cap the fallout from the sudden collapse of Silicon Valley Bank (SVB).
The pan-European STOXX 600 index fell 0.6% by 0812 GMT, having closed at a more-than-five-week low on Friday.
However, Wall Street futures rallied after the Federal Reserve and U.S. Treasury announced a range of measures to stabilise the banking system and said depositors at SVB would have access to their deposits on Monday.
European banking stocks dropped 1.1%, after their worst two-day selloff in more than five months, on worries about the resilience of the sector's balance sheet in the face of SVB's collapse and the interest rate outlook. (Reuters)
Dutch development bank FMO has proposed investing USD 11.1 million in Indian non-banking financial company Arohan Financial Services, Nikkei Asia reported on Monday.
The proposed investment will be used to finance Arohan's post-Covid growth, FMO said. The homegrown microfinance company also plans to complement its branch network with more technology-driven services, according to a disclosure accessed by Nikkei Asia.
Founded in 2006, Arohan aims to provide financial services to underprivileged and low-income households in rural and semi-urban areas of India.
Arohan offers a range of financial services such as microfinance, affordable housing finance and small business loans. The company also provides loans to individuals and microenterprises who cannot access traditional banking services. (ANI)
India will not breach Western sanctions on Russia including the price cap of $60 imposed on purchases of oil from Moscow, according to people familiar with the matter.
Government authorities have asked banks and traders to adhere to the rules, the people said, declining to be identified as the information isn’t public. Indian officials have not gone on the record to say they will support sanctions and the price cap imposed by the Group of Seven nations on Russia. (Read More)
Welspun One Logistics Parks, an integrated fund and development management platform focused on warehousing and industrial realty, on Monday launched its second fund of ₹2,000 crore, including a green shoe option of ₹1,000 crore.
Welspun launched the first fund in early 2021 and had got capital commitments worth ₹500 crore from high net-worth investors and family offices and the capital was invested in companies, aggregating to 6.5 million squre feet and it expects to deliver 50 per cent of the portfolio by mid-2023, the company said in a statement.
It said the second fund has the largest development plan of 8-12 million square feet across tier 1 & 2 cities and also in-city projects in Mumbai, Delhi and Bengaluru.
The warehousing industry is now a fully integrated priority sector. Owing to the favourable policy changes, this asset class has drawn significant interest of national investors, said Balkrishan Goenka, chairman of the Welspun group. (PTI)
The initial public offering (IPO) of Nirman Agri Genetics Ltd is going to open on 15th March 2023 i.e. on Wednesday this week. The SME IPO proposed for listing on the NSE SME exchange will remain for bidding till 20th March 2023. The SME company aims to raise 20.30 crore from its initial offer through the issuance of 2,050,800 fresh shares. Ahead of the Nirman Agri Genetics IPO subscription opening date, shares of the company has started to trade in the grey market. According to market observers, shares of Nirman Agri Genetics Ltd is available in the egrey market at a premium of ₹3 in the grey market today.
Here we list out important Nirman Agri Genetics IPO details in 10 points: (Read More)
Shares of Nazara Technologies Ltd, mobile gaming company, plunged to hit low of ₹483 apiece on the BSE in Monday's trading session on worries of having exposure to the Silicon Valley Bank (SVB). Two of its step-down subsidiaries hold cash balances of around ₹64 crore at the SVB.
Nazara Technologies informed in an exchange filing that its subsidiaries - Kiddopia Inc and Mediawrkz - continue to be well-capitalised and are generating positive cash flows along with profitability. Hence, Nazara Technologies said, it expects no impact on its day-to-day operations, business performance and growth plans due to the SVB event. (Read More)
Britain's finance minister Jeremy Hunt said the government and the Bank of England had facilitated a private sale of the UK arm of Silicon Valley Bank to HSBC, in a move which will protect deposits without taxpayer support. (Reuters)
On account of the Silicon Valley Bank (SVB) collapse followed by the Signature Bank crisis, gold prices continued to attract safe-haven appeal for the third straight session on Monday morning deals. Gold future contract for the month of April 2023 opened upside at ₹56,667 per 10 gm but witnessed profit booking triggered and the precious yellow metal price hit an intraday low of ₹56,412 per 10 gm levels. However, the precious bullion metal remained higher from its Friday close of ₹56,150 levels. In the international spot market, gold price today is quoting 0.65 per cent higher at around $1,880 per ounce levels. (Read More)
Indian firms are among the most downbeat globally on profitability outlook, showed S&P Global's latest India Business Outlook survey.
This is a tri-annual survey, which is conducted in February, June and October. In February, the net balance of companies predicting growth fell from +21% to +15%, the joint-lowest mark since October 2021. By comparison, the global and emerging market readings were at +16% and +20%, said the survey report. The net balance figure is calculated by deducting the percentage number of survey respondents expecting a deterioration/decrease in a variable over the next twelve months from the percentage number of survey respondents expecting an improvement/increase. (Read More)
Shares of Sona BLW Precision Forgings Ltd plunged more than 3% to ₹424 apiece on the BSE in Monday's opening trading session on the reports of block deals. The stock has been hovering around its 52-week low of ₹397 that it had hit in December 2022.
As per a report by CNBC-TV18, around 12.1 crore shares i.e., 20.7% equity, worth ₹4,985 crore change hand in a block deal window today at an average of ₹410 per share. Mint could not independently verify the update. (Read More)
RO Jewel shares are one of the multibagger stocks that Dalal Street has delivered in the last year. This small-cap stock has risen 600 per cent in the last one year. However, after rallying to the tune of 600 per cent the small-cap company announced a stock split in a 1:5 ratio. The company board has revised the record date for stock subdivision as it did not meet the criteria of 7 working days advance notice. The company board has informed Indian bourses that the new record date for a stock split in a 1:5 ratio has been fixed on 18th March 2023 i.e. Friday this week. (Read More)
The U.S. government took extraordinary steps Sunday to stop a potential banking crisis after the historic failure of Silicon Valley Bank, assuring all depositors at the failed institution that they could access all their money quickly, even as another major bank was shut down.
The announcement came amid fears that the factors that caused the Santa Clara, California-based bank to fail could spread. Regulators had worked all weekend to try to find a buyer for the bank, which was the second-largest bank failure in history. Those efforts appeared to have failed Sunday. (Read More)
Shares of India's Yes Bank Ltd fell as much as 12.7% on Monday at the end of a three-year lock-in period that barred investors from selling the stock they had taken in the lender as part of its restructuring. (Reuters)
Oil prices ticked up in Monday Asian late morning trade, reversing a weak start as a recovery in Chinese demand and a weaker dollar provided support to a market rattled by the prospect possible further U.S. interest rate increases.
After initially slipping, Brent crude futures were up 19 cents, or 0.23%, to $82.97 per barrel by 0410 GMT. West Texas Intermediate crude futures (WTI) ticked up by 20 cents, or 0.26%, to $76.88 a barrel.
Market sentiment was fragile as worries about further monetary tightening by the Fed have been exacerbated by high crude oil inventories in the U.S., analysts from ANZ Bank observed in a note on Monday morning.
"It's like the battle of surging activity data in the East meets macro malaise in the West", said Stephen Innes, managing partner of SPI Asset Management, commenting on the competing sentiment drivers in the crude market. (Reuters)
Goldman Sachs analysts have revised their prediction for the upcoming U.S. Federal Reserve meeting, stating that they no longer anticipate a rate hike on March 22. This shift in prediction is due to the recent stress experienced in the banking sector, which has led to considerable uncertainty about the future rate hike path beyond March.
According to Goldman Sachs' analysts, there is considerable uncertainty regarding the future path of interest rates beyond March, given the recent stress in the banking sector. As a result, they no longer expect the U.S. Federal Reserve to raise interest rates at its March 22 meeting. (Read More)
Shares of Tech Mahindra rallied nearly 10% to ₹1,164 apiece on the BSE in Monday's early trading session after the company announced the appointment of Mohit Joshi as the new MD & CEO as CP Gurnani, who retires on December 19, 2023.
Mohit Joshi will join well before that date to allow sufficient transition time, as per Tech Mahindra. He may join in June 2023 given Infosys has announced his resignation effective March 11, 2023 and that he will be on leave from this date and his last day would be June 9, 2023 at Infosys. (Read More)
The Torrent Group is expected to raise its plea before the Supreme Court (SC) on Monday for an urgent hearing, as the Committee of Creditors (CoC) for the insolvent Reliance Capital Ltd is scheduled to hold the second round of bidding on that date.
According to a CNBC report, Torrent Group is anticipated to file a petition for a stay of the National Company Law Appellate Tribunal's (NCLAT) ruling in favour of Reliance Capital lenders. The company is also likely to make an urgent appeal based on the second round of auction that is scheduled for March 20. NCLAT has overturned NCLT's order and permitted CoC to hold an extended auction. On December 21, 2022, the initial bidding process came to a close. Torrent Investments had made the highest bid of ₹8,640 crore, but Hinduja Group afterwards submitted a bid that was even higher at ₹8,950 Cr. (Read More)
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: The SVB issue is unlikely to rattle markets for long. The quick joint statement by the US Treasury, the Fed and the Federal Deposit Insurance Corporation that all the depositors money will be safe is enough to calm the markets. The ‘Lehman’ comparison is totally inappropriate. However, investors have to be careful since there can be a sentimental impact on banking stocks. Since this crisis has near zero impact on Indian banking, investors with a higher risk appetite can use the weakness in the market to buy high-quality bank stocks. A possible positive impact of the SVB crisis is that it may nudge the Fed to go less hawkish since the aggressive rate hike by the Fed lies at the root of the SVB crisis. If the US CPI inflation data tomorrow indicates a declining trend in inflation, the Fed is unlikely to raise rates by 50 bp in the March 22 meeting. That will be a positive from the market perspective.
The government may have to infuse more capital in the three public sector general insurance companies to improve their financial health, a senior government official said.
The government last year provided ₹5,000 crore capital to three insurers --National Insurance Company Limited, Oriental Insurance Company Limited and United India Insurance Company.
Based on the performance in the FY23, the finance ministry would take a call as to how much capital they would require to meet regulatory requirement, the official said.
They are not in good financial health and fund would be infused in these entities to augment their solvency margin, the official added.
The solvency margin is the extra capital the companies must hold over and above the claim amounts they are likely to incur. It acts as a financial backup in extreme situations, enabling the company to settle all claims. (PTI)
Stoxbox Market View for Monday: On Friday, After the gap-down opening, Nifty traded below 17,400 after opening at 17,451 in the morning trade. On Thursday, after forming a bearish engulfing pattern on the daily chart, it fell on Friday till the hourly chart gap fills at 17,324. It broke 200 DMA again today & closed below. Intraday traders can look for long opportunities only above the resistance level of 17,470 if it sustains for 15 minutes. Traders can look for fresh shorts only if nifty breaks the 17,300 level & remains below for 15 min to ensure short.
The closure of Signature Bank, a lender that counted a number of crypto companies as customers even as it recently signalled a pullback from the industry, marks another major setback for digital assets.
The US Treasury Department said the lender was closed by New York state financial regulators on Sunday and that all depositors will have access to their money on Monday.
The shutdown comes soon after the twin collapses of Silvergate Capital Corp. and Silicon Valley Bank. All the banks were, at least at one point, counted among the US’s most crypto-friendly financial institutions. (Read More)
On account of Silicon Valley Bank (SVB) crisis, Wall Street crashed on Friday logging its worst week since September 2022. The SVB crisis led to huge weakness in US dollar rates as Dollar Index came below 104 levels in early morning session on Monday. Meanwhile, SGX Nifty today has once again opened with downside gap, which signals weakness on Dalal Street in early morning deals.
Here we list out key global market triggers that may dictate India's stock market today: (Read More)
Balrampur Chini and Gujarat Narmada Valley Fertilizers & Chemicals Ltd are the two stocks that are a part of the F&O ban list for Monday trading. (Read More)
Nazara Technologies, a diversified gaming and sports media platform, on Sunday said two of its step-down subsidiaries hold cash balances of around ₹64 crore at the Silicon Valley Bank.
On Friday, the dramatic collapse of the Silicon Valley Bank - the default bank for many high-flying startups and described as a linchpin of tech investing - roiled global markets, as it marked the largest bank failures since the 2008 global financial crisis.
Nazara Technologies, in a regulatory filing, said both subsidiaries - Kiddopia Inc and Mediawrkz - continue to be well capitalised and are generating positive cash flows along with profitability. Hence, Nazara Technologies said, it expects no impact on its day-to-day operations, business performance and growth plans due to the SVB event.
It further asserted that Nazara Group (Nazara Technologies Limited and its subsidiaries) continues to maintain healthy reserves of cash and cash equivalents in excess of ₹600 crore excluding the SVB-impacted funds. (PTI)
India’s retail inflation probably breached the central bank’s target for a second straight month in February, prompting the monetary authority to possibly hike borrowing costs to the highest level in seven years.
Consumer prices rose 6.40% last month from a year earlier, according to the median estimate in a Bloomberg survey of economists ahead of data due Monday at 5:30 p.m. local time. That would be slower than 6.52% in January but still above the comfort level of the Reserve Bank of India, which aims to bring inflation closer to the mid-point of its 2%-6% target.
Price pressures resurfacing after easing below 6% in the last two months of 2022 will likely convince RBI to increase the benchmark rate for a seventh straight time when it meets on April 6, according to Rahul Bajoria, an economist with Barclays Plc. Risk of heat waves “may raise concerns about food production and prices," he added. (Bloomberg)
Vaishali Parekh has recommended three stocks to buy today, here we list out important details in regard to those day trading stocks:
1] JSW Steel: Buy at ₹679, target ₹704, stop loss ₹669;
2] RCF: Buy at ₹102, target ₹107, stop loss ₹100; and
3] Kaynes Technology: Buy at ₹956, target ₹990, stop loss ₹940. (Read More)
Infosys on Saturday announced the resignation of President Mohit Joshi. Its rival company, Tech Mahindra, informed that Joshi will join as managing director and chief executive officer of the company from December 20 this year.
According to Infosys' statement, Joshi will be on leave with immediate effect and his last date with the company would be June 9 this year. The board of directors placed on record their deep sense of appreciation for the services rendered by Mohit Joshi and for his contributions to the company.
Meanwhile Tech Mahindra today said Joshi has been appointed as managing director and chief executive officer of the company and key managerial personnel for a period of five years with effect from December 20, 2023. It also said that the company will appoint Mohit Joshi as a director on the board of directors of the company. However, it also said it will be subject to approval by the shareholders of the company. (ANI)
Shares of Yes Bank may face selling pressure as the Reserve Bank-mandated three-year lock-in period for individual investors and exchange-traded funds is ending on Monday, according to analysts.
The analysts expect distress on the bank counter on Monday as they expect investors, primarily the nine banks led by State Bank, which picked up almost 49 per cent of its stocks in March 2020 for ₹10 per share -- at a premium of ₹8 on the face value as part of the RBI bailout, making an exit.
Exchange-traded funds are also likely to press the exit button.
Together, as much as 1.35 billion shares are with individual investors -- including retail, HNIs and NRIs -- under the lock-in and another 67 million with exchange-traded funds, and all these are likely to exit if not at one go over the next few weeks, according to analysts. (PTI)
In a petition to the US government on Sunday, Y Combinator stated that around 10,000 small businesses with accounts in Silicon Valley Bank may be unable to pay their employees in the next 30 days, and approximately 1 lakh jobs are anticipated to be affected as a result of the collapse. The petition submitted to US Secretary of the Treasury Janet Yellen noted that one-third of the startups in Y Combinator's community use Silicon Valley Bank as their only account.
"By that measure, we can estimate that payroll-related furlough or shutdown will impact more than 10,000 small businesses and startups. If the average small business or startup employs 10 workers, this will have an immediate effect of furlough, layoff, or shutdown, affecting over 100,000 jobs in the most vibrant sector of innovation in our economy," the petition said. (Read More)
Siddhartha Mohanty, MD of Life Insurance Corporation (LIC) has been given a 3-month charge as chairman, from March 14. Moreover, the insurance juggernaut claims that MR Kumar, the current chairman of the LIC, has not received an extension.
This is an interim arrangement in addition to Mohanty's own duties.
The authorities appointed Siddhartha Mohanty, the managing director (MD) and chief executive officer (CEO) of LIC Housing Finance, as the MD of Life Insurance Corporation (LIC), India's largest insurer, effective February 1st, 2021. In place of TC Suseel Kumar, who was scheduled to retire on January 31, 2021, Siddhartha Mohanty was nominated to serve as the MD of LIC until his superannuation on June 30, 2023. (Read More)
Banks and home financiers are offering special rates before the financial year-end to lure customers amid sluggish demand, as recent interest rate hikes have made home purchases costly.
State Bank of India (SBI), for instance, is offering a home loan rate of 8.5% for customers with a credit score of above 750. Similarly, Housing Development Finance Corp. (HDFC) is offering 8.7% to customers with a credit score of above 760. Last week, Bank of Baroda slashed home loan rates by 40 basis points to 8.5% and waived the processing charges on such loans. (Read More)
Gautam Adani-led Adani Group on 12 March said that it has completed full prepayment of margin linked share backed financing aggregating to $2.15 billion, ahead of its committed timeline of 31 March 2023.
This latest development arrived two days after the Financial Times report, which suggested Adani group was mulling issuing a formal request to global lenders to sell a 4-5 per cent stake in Ambuja Cement for $450 million to reduce debt.
Apart from this, the firm said that promoters have also prepaid $500 million facility taken for Ambuja acquisition financing. (Read More)
Wall Street's indexes ended down more than 1% on Friday after investors ran for the exits as they feared for the health of U.S. banks after the failure of a high-profile lender to the technology sector, overshadowing the February jobs report.
California banking regulators said they closed SVB Financial Group to protect deposits in what was the largest bank failure since the financial crisis. A capital crisis at SVB had already put pressure on bank stocks globally.
SVB had tried but failed to shore up its balance sheet through a stock sale proposed late on Wednesday. The same day, crypto-lender Silvergate Capital said it would have to wind down after huge losses from the FTX cryptocurrency exchange collapse.
The Dow Jones Industrial Average fell 345.22 points, or 1.07%, to 31,909.64, the S&P 500 lost 56.73 points, or 1.45%, to 3,861.59 and the Nasdaq Composite dropped 199.47 points, or 1.76%, to 11,138.89.
All 11 S&P 500 industry sectors lost ground. Real estate, down 3.3%, led declines while consumer staples the top performer, fell just 0.5%.
Investors had expected to end the week with most of their focus on economic data rather than banks.
Before the market opened, the closely monitored non-farm payrolls report showed the U.S. economy added more jobs than expected in February while average hourly earnings rose at a slower 0.2% last month versus 0.3% in January while unemployment rose to 3.6%.
The data had eased some concerns that the Fed could raise rates by 50 basis points at its March meeting after hawkish remarks from Fed Chair Powell this week. (Reuters)
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