PremiumIT index came under pressure as heavyweights are prepping to announce their fourth-quarter earnings for FY23 later this week. TCS will be the first to kick start the season followed by peers Infosys and HCL Tech. The sector is expected to witness a seasonally weak quarter, with muted growth seen in both revenue and margins.
Indian stock indices remained green on Tuesday's trade and ended on a positive note. However, IT stocks struggled and kept the overall gains in check. The latest inflow of foreign funds and strong US markets lent support to Indian stock indices.
Vinod Nair, head of research at Geojit Financial Services said, "The forthcoming CPI inflation data due on Wednesday is expected to remain below the RBI’s upper tolerance level of 6%...The US inflation figures, along with the FOMC meeting minutes, are likely to exert a dominant influence on the global market trend."
Sensex reclaimed the 60,000 mark as it closed at 60,157, a jump of 311 points. Nifty too gained almost 100 points to close at 17,722.
Most of the sectoral indices ended in the green with Bank, Auto, Finance and Metal climbing more than a per cent each. IT struggled as it shed 1.26%. Realty started on a positive note but dropped all of its gains and ended in the red. Consumer Durable was another laggard in today's session.
Among stocks, Kotak Bank jumped 5% as analysts expect MSCI to increase the weightage of the bank stock in its May review. JSW Steel, Bajaj Auto, Eicher Motors and ITC were other prominent gainers. TCS, Infosys, HCL Tech, and Tech Mahindra were the biggest laggards.
Stocks were mostly higher in Europe and Asia on Tuesday ahead of the release this week of U.S. consumer inflation data.
Japanese stocks climbed for a third straight session on Tuesday, after dovish comments from the country's new central bank governor and upbeat U.S. economic signs bolstered investor sentiment. The Nikkei share average rose 1.05%, marking its steepest one-day gain since March 29. The broader Topix gained 0.78%.
Chinese stocks fell on Tuesday, as sentiment took a hit after data showed China's March consumer price growth was at its slowest since September 2021, while shares in Hong Kong were up.
China's blue-chip CSI300 Index and the Shanghai Composite Index both closed down 0.1%. Hong Kong's benchmark Hang Seng Index and the China Enterprises Index rose 0.8% each.
China's consumer inflation in March was at its slowest since September 2021, suggesting persistent demand weakness and potential for further policy stimulus.
European shares rose on Tuesday, with investors returning from a long holiday weekend to face a week full of crucial economic data, including March inflation for Germany and the U.S., providing more hints on the global interest rate trajectory.
London's FTSE 100 rose on Tuesday as miners and oil stocks boosted the commodity-heavy bourse, while shares of Cineworld slid as the world's second-largest cinema chain operator filed a plan of reorganisation.
To bring transparency in expenses and curb mis-selling, markets regulator Sebi has asked alternative investment funds (AIFs) to provide an option of "direct plan" for investors and introduced a trail model for distribution commission.
In addition, the regulator came out with guidelines with respect to excluding an investor from an investment of AIF.
This came after the regulator observed inconsistency and lack of adequate disclosure in Private Placement Memorandum (PPM) with respect to certain industry practices. (Read More)
Public sector lender, State Bank of India (SBI) gained momentum on Tuesday after the bank announced its plan to raise a whopping $2 billion through senior unsecured notes in FY24. The lender's board members will meet on April 18 to discuss and consider the same. Brokerage Prabhudas Lilladher is positive on the stock.
At the time of writing, SBI shares traded at ₹532.85 apiece up by ₹6.55 or 1.24% on BSE. The stock was near the day's high of ₹535.50 apiece. Overall, on the day, the stock rallied over 1.7%.
Its market cap is over ₹4,75,369.45 crore at the current market price, gaining by ₹5,667.12 crore from the previous day's print of nearly ₹4,69,702.33 crore. (Read More)
HFCL Limited (‘HFCL’), a leading technology enterprise and integrated next-gen communication product and solution provider announces integrated support for Wireless Broadband Alliance (WBA) OpenRoaming across their entire IO portfolio of Wi-Fi products making them the first Indian enterprise to do so. This support is available for all global customers looking to buy OpenRoaming enabled Wi-Fi solutions.
OpenRoaming is a roaming federation service by the WBA that enables companies to provide a secure and automatic Wi-Fi experience to its users and further scale roaming relationships, across the globe. WBA OpenRoaming creates the framework to connect billions of users and things to millions of Wi-Fi networks globally
Twitter Inc.’s former chief executive officer revealed the US Justice Department and the US Securities and Exchange Commission investigated the social-media platform in the past as part of his effort to force the company to cover legal fees related to lawsuits and government probes.
Parag Agrawal, ousted last year by new owner Elon Musk, and other former executives said in a Delaware Chancery Court lawsuit Monday that they’ve spent more than $1 million on lawyers in connection with the probes and shareholder lawsuits over their management of the firm.
Agrawal said in the complaint his lawyer was contacted by representatives of the Justice Department late in 2022 “regarding certain investigations related to the company." He didn’t elaborate. The New York Times had reported on the lawsuit earlier. (Read More)
The startup ecosystem in India saw a considerable decline in investment in the first quarter of 2023 when compared to the same period in 2018, according to the latest "Tracxn Geo Quarterly Report: India Tech - Q1 2023".
According to the research, startup companies in India raised $2.8 billion in total in the first quarter of 2023, down 75% from the $11.9 billion raised in the same period of 2022. The rise in interest rates and inflation, which have had a considerable impact on investments, are to blame for this reduction in funding.
When compared to Q1CY22, late-stage funding drastically decreased, falling by 79% ($1.8 billion) in Q1CY23. When compared to Q1CY22, early-stage funding decreased by 68% in Q1CY23 ($844 million). (Read More)
Japanese lender JICA has teamed up with Citibank to provide a USD 125 million funding line to domestic private sector lender IndusInd Bank.
Indusind will be utilising the co-finance funding for onlending to the agricultural sector in the country, as per an official statement issued on Tuesday.
The funding includes a JPY 13 billion (approx USD 97.45 million) loan from the Japan International Cooperation Agency (JICA) and another USD 30 million from Citi to Indusind, it said.
The statement said Citi arranged the high impact social finance offering to improve financial access for farmers and catalyze capital investment in the agricultural sector in India.
It can be noted that JICA has been very active in funding commitments to India especially in the last few years which have witnessed a deepening of Indo-Japan ties, and the two countries also coming together to be a part of the Quad along with the US and Australia.
JICA's previous commitments to India include over ₹4,000 crore support to build the Mumbai Trans Harbour Link. (PTI)
Bitcoin, the largest cryptocurrency by market value, climbed above the key $30,000 level for the first time since June 2022, rallying more than 80 per cent since the start of the year, as investors raised bets that the US Federal Reserve will soon end its aggressive monetary tightening campaign.
The token rose as much as 2 per cent to $30,262. Bitcoin has gained about 6 per cent since the start of the month, after rising 23 per cent in March. Still, Bitcoin is down more than 50 per cent from its all-time high in November 2021. (Read More)
Eicher Motors share price has remained sideways to negative after climbing to its life-time high of ₹3,889.65 apiece on NSE in October 2022. However, after ushering in new financial year, this auto stock is trying to come out of the base building mode. As per the Prabhudas Lilladher report, Eicher Motors share price may surge to the tune of 10 per cent in short term and hit near term target of ₹3,350 apiece levels.
Based on technical analysis, Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, has projected that Eicher Motors shares are likely to experience a short-term increase of more than 10%. (Read More)
JSW Steel on Monday said the company reported its highest ever consolidated crude steel production at 24.15 million tonne in FY23, registering a growth of 24 per cent year-on-year. The company has reported its highest-ever quarterly consolidated crude steel production at 6.58 million tonnes for March quarter FY23, registering a growth of 13 per cent year-on-year (YoY) and 7 per cent quarter-on-quarter (QoQ). This was driven by improved capacity utilisation at the Indian operations, with capacity utilisation of 96 per cent in Q4 FY23 versus 91 per cent in Q3 FY23.
Most global central banks may be either close to a peak or already done with interest-rate hiking, auguring a hiatus before possible monetary loosening comes into view.
With the first signs of dents in economic growth now visible, and fallout from financial-market tensions lingering, any pause by the Federal Reserve after at least one more increase in May could cement a turn in what has been the most aggressive the world has seen in decades.
The European Central Bank and regional counterparts might keep going longer and even aspire to keep restrictive settings in place, but a shift in gear for US monetary policy led by Chair Jerome Powell would be an important signal to global peers.
From Brazil to Indonesia, a pivot toward rate cuts could start as soon as this year, with many advanced-world officials not far behind. Overall, at least 20 of the 23 major jurisdictions monitored by Bloomberg are projected to be lowering borrowing costs in 2024.
Read More: Debt, Rates and US-China Risks in Focus as IMF Meets This Week
The short-lived peak for global rates, according to a gauge calculated by Bloomberg Economics, will be 6% in the third quarter. By the end of next year, that measure is seen dropping to 4.9%. (Bloomberg)
The National Bank of Fujairah (NBF) on Tuesday announced that it has provided a long-term credit facility to CleanMax for refinancing its rooftop solar portfolio in the UAE.
“The facility will cover 48 different operational rooftop solar assets, located in industrial facilities, malls, schools, and universities," the company said in a press release.
This new partnership between NBF and CleanMax therefore represents a significant step towards meeting the goals of UAE’s energy strategy, which aims to have 50% clean energy in the energy mix by 2050, it added. (Read More)
Former Nykaa SuperStore CEO Vikas Gupta has been appointed as CEO of the beauty and skincare brand VLCC with immediate effect.
The announcement comes after Carlyle, a global investment firm with $ 369 billion in assets under management, announced a strategic partnership with VLCC through the acquisition of a majority stake in the company in December 2022.
Gupta joins VLCC from Nykaa where he was the CEO of SuperStore by Nykaa. Before that, he was the chief customer and marketing officer at Walmart-backed Flipkart between 2019-21. (Read More)
Mutual funds shareholding in Adani Ports
According to the shareholding pattern of Adani Ports and Special Economic Zone Ltd for January to March 2023 quarter, mutual funds own 6,67,29,749 Adani Ports shares, which is 3.09 per cent of the total paid-up capital of the company. In October to December 2022 quarter, mutual funds were owning 9,56,91,283 Adani Ports shares or a 4.43 per cent stake in this core Adani group company. This means, mutual funds offloaded 2,89,61,534 Adani Ports shares or 1.34 per cent stake in recently ended March 2023 quarter.
LIC shareholding in Adani Ports
As per the shareholding pattern of Adani Ports and Special Economic Zone Ltd for January to March 2023 quarter, LIC owns 19,70,26,194 Adani Ports shares or 9.12 per cent stake in this core Adani business. However, in Q3FY23, LIC was holding 19,75,26,194 Adani Ports shares or 99.14 per cent stake in this flagship Adani group company. This means, LIC cut down its stake in Adani Ports by 0.02 per cent as it offloaded 5 lakh company shares during January to March 2023 quarter. (Read More)
Apple Inc. Chief Executive Officer Tim Cook has scheduled a trip to open the iPhone maker’s first stores in India next week, underscoring the company’s ambitions for the country as a growth market and manufacturing base.
Tim Cook is likely to preside over the opening of the twin outlets in India’s financial and political capital, people familiar with the matter said, asking to remain anonymous discussing private plans. Apple said Tuesday it’ll open a store in Mumbai on April 18 and another in New Delhi on April 20. (Full Story)
Amnish Aggarwal – Head of Research, Prabhudas Lilladher Pvt Ltd Jan-Mar’23 Earnings Preview
Consumer – Demand mixed, margins getting better
We estimate our coverage universe (ex-ITC) to report Sales, EBIDTA and PAT growth of 15.0%/15.9%/16.7% YoY. We expect sequential Gross/EBITDA margin expansion will continue in 4Q due to lower-priced inventory coming into usage, stable prices and full benefit of price hikes undertaken in past couple of quarters. ITC, BRIT, HUL, D’Mart, APNT and WFL will be best performers. CLGT and JUBI will have a weak quarter. Consumer demand & sentiments remained tepid during 4Q23. Staples demand in rural remained weak and failed to show any recovery; urban pockets remained steady during the quarter. Demand across discretionary categories like QSR, Apparel, Footwear and Retail remained poor since 3Q23 and have slowed down post multiple quarters of strong growth. We expect the divergent trend in volume growth across segments like HPC, Food, QSR, Jewellery, Apparel, Footwear and Paints etc.
We remain structurally positive on Westlife, Britannia, HUL, D’Mart and Titan given sustainable competitive advantage and business moats. Valuations remain high in an environment of tepid demand & elevated RM prices. We rate D’Mart, HUL and Westlife as top picks.
IRB Infrastructure Developers has reported a 20.64 per cent rise in revenues from its toll collection business at ₹369.9 crore in March 2023.
During the same month last year, "the toll revenue from the subsidiaries and joint venture entities of the company was at ₹306.6 crore," IRB Infrastructure Developers said in a regulatory filing on Monday.
On a month-on-month basis, the collection in March was 5.38 per cent higher, as against ₹351 crore in February 2023.
The Mumbai-headquartered company has a major presence in the build-operate-transfer (BOT) space. It is the largest integrated private toll roads and highways infrastructure developer in the country. (PTI)
The Indian government is set to invite financial bids for the privatisation of the Shipping Corp of India Ltd (SCI) next month.
This move comes after years of delay in selling the state-run company, two government officials told Reuters.
The Indian government, under the leadership of Prime Minister Narendra Modi, had announced plans to privatise several state-run companies in 2019, including the sale of its stake in Shipping Corp of India Ltd (SCI). However, regulatory delays had previously stalled these efforts. (Read More)
The rupee was trading in a narrow range in morning trade on Tuesday as the bullishness of positive domestic equities and weak American dollar was negated by firm crude oil prices.
At the interbank foreign exchange, the rupee opened at 81.96 against the dollar. It touched an early low of 82.09 in initial deals.
The rupee on Monday settled at 81.99 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading at 102.35, down 0.22 per cent.
Global oil benchmark Brent crude futures advanced 0.64 per cent to USD 84.72 per barrel.
The rupee has been floating well between a tight range of 81.80-82.20 awaiting to set the tone post the US and domestic CPI release, said CR Forex Advisors MD Amit Pabari. (PTI)
Gold rate today surged nearly half per cent in early morning deals whereas silver rate today hit a 32-month high in the domestic market. In the opening bell at the commodity market today, the gold future contract for June 2023 on MCX (Multi Commodity Exchange) opened upside and went on to hit an intraday high of ₹60,343 per 10 gm within a few minutes of market opening. In the international market, gold price today added 0.35 per cent and came close to $2,000 per ounce level.
Silver rate today had a gap up opening as the white metal gained buying interest by investors after ease in US dollar rates during morning deals in Asian stock market. Silver future contract on MCX for May 2023 opened upside and went on to climb to its 32-month high after hitting intraday peak of ₹74,790 per kg levels. (Read More)
India's structural reforms approach has ensured that it remains a globally attractive destination for investment and the country is well-positioned in the global economy, allowing it to grow briskly, possibly faster, in the coming years, Union Finance Minister Nirmala Sitharaman has said.
India's journey from the 10th largest economy in dollar terms in 2014 to becoming the world's 5th largest economy has been one of steady acceleration in growth amidst global and domestic challenges, she said on Monday during a fireside chat at the Peterson Institute for International Economics.
Sitharaman said India has integrated its economy with global trade and financial flows while ensuring a higher standard of living and improved quality of life for Indian households.
"The structural reforms approach has ensured that India remains a globally attractive destination for investment, supported by the rising domestic consumption of the middle class, robust infrastructure push by the government, sustainable fiscal health and a vibrant class of domestic institutional investors," she said. (PTI)
Bandhan Bank has responded to an article published by BQ Prime by providing clarification and refuting the allegations made in the article.
In an official statement, the bank has stated that the allegations are entirely false, lacking in basis, and misleading in nature. The bank noted that it has a strong credit policy in place for all types of lending products, including Microfinance Loans.
Meanwhile, Bandhan Bank's stock experienced a slight decline of 0.21% on the Bombay Stock Exchange (BSE), reaching a low of ₹209.60. (Read More)
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: The recent down moves and up moves in the US bond yields reflect the market uncertainty regarding the direction of US inflation and the Fed’s potential future responses. Even now there is no clarity on whether the US will tip into recession or not. The latest jobs data indicate increasing labour force participation and unemployment at very low 3.5%, despite the massive tightening by the Fed. The volatility in the bond market is getting reflected in the equity market, too. It remains to be seen whether tomorrow’s US inflation data can indicate a clear emerging trend. The resilience in Nifty is largely due to the sustained buying by the FIIs and the consequent short covering. The ongoing mild rally is likely to be sustained by individual stock performances triggered by Q4 results rather than by sectoral moves.
Despite an uptick in economic activity, China's consumer inflation slowed in March, and producer prices continued to contract, creating room for the central bank to potentially ease monetary policy to support the ongoing recovery.
The consumer price index (CPI) increased by 0.7% year-on-year, as reported by the National Bureau of Statistics on Tuesday. This figure was lower than the 1% recorded in February and fell short of economists expectations for it to remain unchanged, according to a Bloomberg poll. (Read More)
The board of directors of EID Parry (India) has approved second interim dividend of ₹4 per equity share to its eligible shareholders. The sugar company board also fixed EID Parry dividend record date on 21st April 2023. This over 225-year-old company had traded ex-dividend in November 2022 for payment of ₹5.50 per share interim dividend in the financial year 2022-23.
The leading sugar company informed Indian stock market bourses about second interim dividend in FY23 citing, "The Board of Directors of the Company met today (April 10, 2023) approved the payment of Second Interim Dividend for the financial year 2022-23 at Rs.4/- (Four rupees only) per share, representing 400%, on the equity share of face value of Re.1/- each fully paid." (Read More)
Most sectoral indices gain with PSU Bank leading the rally.
Shares of Kotak Mahindra Bank (KMB) will be in focus on Tuesday morning as foreign portfolio investor (FPI) shareholding in the private sector lender has declined during the three-month period ended March 2023.
According to the latest March quarter shareholding pattern, FPI shareholding in the company stood at 41.22 per cent, down 147 basis points quarter on quarter.
Following the sharp decline in FPI holding, the foreign investment room in KMB has increased to 25.05 per cent as against 22.38 per cent currently. (Read More)
SRL Diagnostics, a subsidiary of Fortis Healthcare, a Mumbai-listed hospital chain, has acquired Lifeline Laboratory in order to expand its presence in the Indian pathology market.
The acquisition of Lifeline, which is located in the National Capital Region, is expected to accelerate SRL's growth and expand its geographic reach, as stated in a company statement.
The acquisition of Lifeline Laboratory by SRL Diagnostics is in line with its strategy to expand its presence in key regions like Delhi, Mumbai, Uttar Pradesh, Andhra Pradesh, and Telangana. (Read More)
Finance minister Nirmala Sitharaman has said that it is prudent for global businesses to spread out their supply chain rather than concentrating it in one market, although there may be a lot of investor interest in returning to China that is opening up after its strict covid containment policy.
Speaking at the Peterson Institute for International Economics in Washington DC early on Tuesday (India time), Sitharaman said that however much one would think that supply chains would move out of China, that would not be the case. (Read More)
The micro-enterprise segment in the country is facing significant distress, as indicated by the fact that 17.27 lakh units, which had availed credit under the Emergency Credit Line Guarantee Scheme (ECLGS), have turned into non-performing assets (NPAs) as of March 24, 2023.
According to data from the Department of Financial Services (DFS), shared by MSME Minister Narayan Rane in the Rajya Sabha recently, the majority of beneficiaries under the Emergency Credit Line Guarantee Scheme (ECLGS), which expired on March 31, 2023. (Read More)
Bajaj Finserv Mutual Fund, which received Sebi's clearance to begin the mutual fund operations last month, has filed draft documents with the markets regulator for launching seven schemes in equity, debt and hybrid spaces.
The newest player has filed papers to launch mutual fund schemes -- liquid fund, money market fund, overnight fund, arbitrage fund, large and mid-cap, balance advantage and flexi cap fund, an update with the Securities and Exchange Board of India (Sebi) showed on Monday.
The company would launch these products after receiving the regulator's approval.
Overall, a total of 179 open-end funds and 49 closed-end funds were launched in the calendar year 2022, and cumulatively, these funds garnered ₹62,187 crore.
In comparison, 140 NFOs were floated in 2021 and cumulatively, these funds were able to mobilise ₹99,704 crore and 81 new schemes were launched in 2020 raking in ₹53,703 crore.
Financial services firm Bajaj Finserv Ltd received the final registration from the Sebi in March this year to commence its mutual fund operations under Bajaj Finserv Mutual Fund banner. (PTI)
Delta Corp will be among the stocks in focus as the company will be declaring its quarterly earnings report on Tuesday. (Read More)
As US stock awaits CPI data and FOMC meeting minutes release on Wednesday, key benchmark indices traded in a tight range during Monday deals. However, rally in US dollar rate took a pause and Dollar Index witnessed some correction in early morning deals in Asian stock market. SGX Nifty today opened on a positive note that signals strong opening on Dalal Street.
Here we list out key global market triggers that may dictate Indian stock market today: (Read More)
Giving a major relief to Vedanta Limited, the Supreme Court has granted permission to carry out maintenance work at its closed Sterlite plant in Tuticorin, Tamil Nadu.
The apex court's decision was based on the report of a High Powered Committee (HPC) formed by the Tamil Nadu government to inspect the structural and civil safety of the plant.
The High Court's committee in 2022 recommended certain maintenance activities can be undertaken to upkeep the Sterlite plant. (Read More)
Reserve Bank of India came out with detailed norms for outsourcing of IT services by banks, NBFCs and regulated financial sector entities to ensure that such arrangements do not undermine their responsibilities and obligations to customers.
In its 'Master Direction on Outsourcing of Information Technology Services', RBI said that Regulated Entities (REs) have been extensively leveraging IT and IT-enabled Services (ITeS) to support their business models, products and services offered to their customers. (Read More)