PremiumIndia’s annual retail inflation for March eased below the central bank’s upper tolerance level for the first time this year to 5.66% from 6.44% in February, However, US CPI levels were 5% higher last month than a year earlier, which is still well above the Federal Reserve’s comfort level,
Ranjeet Mahtani, Partner, Dhruva Advisors: “Customs Notification No. 57/2017, as amended, provides for exemption to certain telecom equipment under HSN 8517 62 and 8517 69.
Technology advances rapidly while the customs exemption notification is not a technical document. There has been ambiguity around the scope of this exemption notification. Telecom products were imported at lower duty, by claiming the exemption or by classifying it within the “others" category and which has potentially resulted in revenue leakage of more than INR 500 crores.
Some redundant CTH (codes) were deleted. Incrementally, to address the ambiguity and possible misuse of the exemption notification, it was felt that all stakeholders should better understand and thereafter effectively identify the items/equipment that are covered by the exemption. The Board has proactively issued a Circular in March 2023, which: (a) supplies some clarification to assist with identification of eligible items/equipment and (b) requires an identifier code to be declared in the bill of entry that have been filed from April 1, 2023. These measures are directed to ensure that the exemption benefit is availed in respect eligible telecom gear.
It is noteworthy, that Customs duty rates have not been altered, rather, and to obviate disputes on this topic, measures are provided to have clarity in the process of identification of the telecom equipment/items, to enable Government to track imports of these goods, to plug any revenue leakages and to aid eligible telecom equipment to enjoy the given exemption. A consequence is that to the extent that the exemption notification was misused or improperly used, landed cost of telecom gear will increase.
PNB Housing Finance rights issue has opened today and it will remain open till 27th April 2023. The housing finance company board has announced a rights issue at ₹275 apiece. Comparing PNB Housing Finance's right issue price with PNB Housing Finance's share price today of around ₹415 per share, the issue is available at a premium of near 34 per cent. However, PNB Housing Finance share price has been nosediving since the PNB Housing Finance rights issue announcement. The stock has nosedived from around ₹500 apiece levels to ₹415 levels in near one fortnight. Even today, PNB Housing Finance share price opened downside and went on to dip over 5 per cent within a few minutes of the stock market's opening bell today. (Read More)
Japanese technology investor SoftBank Group Corp has moved to sell almost all of its remaining shares in Alibaba Group Holding Ltd, the Financial Times reported, sending the Chinese e-commerce major's stock tumbling.
The sale would come as valuations of China's big tech firms have started recovering this year after an end to two years of heightened regulatory scrutiny, providing a window for long-time investors such as SoftBank to reduce exposure to an economy battered by strict pandemic policies and Sino-U.S. tension.
SoftBank's share price was little changed on Thursday, tracking the broader market. Alibaba, one of the most valuable assets in SoftBank's portfolio, tumbled as much as 5.2% in Hong Kong after the report before paring the loss to 2.8%.
That followed a 5.2% Wednesday plunge for Tencent Holdings Ltd after the social media giant's top shareholder, the Netherlands' Prosus NV, said it may sell more of its shares, underscoring selling pressure on Chinese tech names. (Reuters)
Lenders of debt-ridden Future Retail Ltd (FRL) has sought an extension of 90 days for concluding the Corporate Insolvency Resolution Process (CIRP) of the company.
The resolution professional of FRL has filed an application before the Mumbai bench of the National Company Law Tribunal (NCLT) "seeking exclusion of a period of 90 days from CIRP of FRL, and consequent extension from April 16, 2023, to July 15, 2023, for concluding the CIRP of FRL."
The CIRP was initiated against FRL by NCLT on July 20, 2022, following loan default. (Read More)
Raghvendra Nath, MD, Ladderup Wealth Management Pvt. Ltd: CPI inflation eases to 5.66% in March 2023 from 6.44% in February 2023 and 6.95% in March 2022. It is now below 6% the upper end of the target range set by RBI. The primary reason for the ease in inflation was higher base of last year. Rural inflation eased to 5.51% from 6.72% in Feb, whereas Urban inflation also eased but at a slower pace to 5.89% in March. Consumer Food price inflation eased to 4.79% from 5.95% in Feb and 7.68% in March 2022. Inflation is expected to stay within RBI’s band as Rabi crop production has been good enough despite unusual rains and extreme heatwaves. This data should aid RBI’s decision to pause the rate hike.
After better-than-expected US CPI data and FOMC minutes flagged off inflation jitters due to the bank crisis in the US, gold price today witnessed buying interest in early morning deals. Gold futures contract for June 2023 on Multi Commodity Exchange (MCX) surged ₹123 per 10 gm and quoted ₹60,751 levels in the early morning session. In the international market, the gold price is up 0.12 per cent at $2,017 per ounce.
Silver rate today hit ₹76,000 per kg levels on MCX and logged a 0.37 per cent rise within a few minutes of the commodity market opening today. In the international market, silver price today is at $25.47 per ounce levels. (Read More)
Dr V K Vijayakumar, chief investment strategist at Geojit Financial Services: News on the inflation front - both from the US and India - are positive for markets. The US consumer inflation number has come lower than expected at 0.1% MoM and 5% YoY. CPI inflation print in India declining to 5.66% is an endorsement of the MPC’s pause decision. The core inflation also has declined to 5.8% indicating that the RBI’s inflation target of 5.2% for FY24 is achievable, assisted by the base effect. So, the MPC continuing with the present rates in the next policy meeting is a clear possibility. This is positive for equity markets. The current rally is driven by sustained FII buying, which is sort of forced buying triggered by short-covering. It is important to understand the fact that the last nine days of continuous FII buying has led to eight days of sustained rally in the market. Mediocre Q4 results and uninspiring commentary from TCS will keep the IT stocks soft. Financials will continue to be resilient. Watch out for the pharma stocks which have emerged strong in recent days.
The Securities and Exchange Board of India (SEBI) levied penalties amounting to ₹25 lakh on five entities for engaging in fraudulent transactions in the illiquid stock options segment on the Bombay Stock Exchange (BSE).
As per media reports, in five separate orders, the watchdog levied a fine of ₹5 lakh each on Natraj Dealtrade, Queen Tie-Up Pvt Ltd, Octagon Merchants, Noble Tradelink and Nirmal Kumar Chopra HUF.
Sebi conducted an investigation into the trading activities of specific entities involved in the illiquid stock options segment of BSE during the period from April 2014 to September 2015. (Read More)
Union minister Ashwini Vaishnaw said the country is on its way to becoming a global leader in the mobile devices segment with the doubling of smartphone exports from India to over USD 11 billion.
"With the doubling of exports of smartphones to more than USD 11 billion, India is well on its way to become a leader in the mobile device market of the world and play a major role in India's electronic exports. This is a major win for PM Modiji's Make in India programme," Vaishnaw said in a statement on Wednesday.
According to the industry body India Cellular and Electronics Association (ICEA), mobile phone exports from India reached close to USD 11.12 billion with iPhone maker Apple accounting for around half of the total exports. Mobile phones exported from India have doubled to surpass ₹90,000 crore, which is about USD 11.12 billion in the financial year (FY) 2022-23 from ₹45,000 crore in 2021-22. (ANI)
India records a sharp hike in daily Covid-19 cases at 10,158 compared to the previous day. According to the health ministry data, the active infections stand at 44,998. On Wednesday, India recorded 7,830 new coronavirus cases on Wednesday, marking a sharp jump from Tuesday when 5,675 cases were reported, according to data shared by the Union Health Ministry.
The country is witnessing a sharp rise in the cases of Covid-19. The All India Institute of Medical Sciences (AIIMS)-Delhi has issued an advisory for its staff to follow Covid-19 appropriate behaviour after a few of them were tested positive for the infection. (Read More)
Apple Inc is in talks with suppliers to make MacBooks in Thailand as the company continues to expand its manufacturing footprint outside of China, Nikkei reported on Thursday. (Reuters)
STOCK IN FOCUS
Crompton (CMP 297): Considering healthy growth led by strong brand equity, product innovation, ongoing Go-To-Market (GTM) strategy, better margin profile in the medium-term and synergies of Butterfly, we have our BUY rating on the stock with a Target price of Rs430.
Intraday Picks
INDUSINDBK (PREVIOUS CLOSE: RS1,075) BUY
For today’s trade, long position can be initiated in the range of Rs1,068-1,062 for the target of Rs1,093 with a strict stop loss of Rs1,054.
ULTRACEMCO (PREVIOUS CLOSE: RS7,683) SELL
For today’s trade, short position can be initiated in the range of Rs7,710-7,745 for the target of Rs7,575 with a strict stop loss of Rs7,805.
UPL (PREVIOUS CLOSE: RS740) SELL
For today’s trade, short position can be initiated in the range of Rs741-744 for the target of Rs727 with a strict stop loss of Rs752.
Manish Chowdhury, Head of Research at Stoxbox: Tata Consultancy Services Ltd. (TCS) Q4FY23 Result First Cut - Challenging operating environment weighs on results
In Q4FY23, TCS recorded a double-digit revenue growth led by the Retail and CPG industries along with Life Sciences and Healthcare but the company failed to beat market expectations. We believe that the challenging environment in North America, one of the biggest markets for TCS, is likely to weigh on the performance in the next few quarters as the companies delay their tech spends and a general slowdown in their decision making. The company also looks uncertain about the demand environment, evident from slower net additions to the workforce. Despite the major macro headwinds present affecting discretionary consumption, TCS remains optimistic about the future on the back of its strong order book.
The government has set in motion a plan to transform Indian airports into aviation hubs--beginning with the Delhi airport--to ensure seamless connectivity and minimize connection time between flights, Union civil aviation minister Jyotiraditya Scindia said.
“We are working with stakeholders to look at how we can prepare Delhi airport to become a hub. A consultant will be hired to look at international comparables to see how we can go about doing that, so that is a work in progress," Scindia said. “We need a concentration of airlines, domestic to international connectivity with that airline, and minimum connect time between those airlines. We need to ensure that the vicissitudes and the volatility in terms of arrival and departures between flights are flattened out." (Read More)
Infosys will be among the stocks in focus as it will be declaring its March quarter earnings today. (Read More)
Reserve Bank of India has approved reappointment of Sanjay Agarwal as managing director and CEO of AU Small Finance Bank for a period of three years.
The re-appointment is valid with effect from April 19 till April 18, 2026, AU Small Finance Bank said in a statement.
Besides, it said, the regulator has also cleared the reappointment of Uttam Tibrewal as the whole-time director for a period of three years.
The shareholders had already approved the said re-appointment on March 9, 2022, it added. (PTI)
Infosys, an IT company, is slated to announce its fourth-quarter earnings for FY23 today, which may be impacted by seasonal weakness and macroeconomic uncertainties.
Meanwhile, TCS missed Street's estimates for the fourth quarter of FY23. The IT giant garnered a consolidated PAT of ₹11,392 crore in Q4FY23, registering a growth of 14.8% YoY.
However, Infosys is expected to be the first company to provide guidance for the fiscal year 2024, which will set the tone for the overall outlook for the current fiscal year. Ahead of the results, here are five key things to watch out for: (Read More)
Four companies, including Larsen & Toubro, have submitted bids for the design and construction of civil and building works of a 135-km-long alignment between Shilphata and Zaroli under package C-3 of the Mumbai-Ahmedabad high-speed rail line, the firm overseeing the bullet train project said on Wednesday.
In a statement, National High-Speed Railway Corporation Ltd (NHSRCL) said it has received four bids from M/s Larsen & Toubro Ltd, NCC-J Kumar (JV), M/s Afcons -KPTL Consortium and M/s Dineshchandra-DMRC JV for package C-3 that also includes Thane, Virar and Boisar HSR (high-speed rail) stations. (Read More)
Reliance Industries Ltd (RIL) has started the process to set up an infrastructure investment trust (InvIT), under which the group can monetise the backend warehousing and logistics assets of its retail business, said industry sources.
Reliance Retail, the company which operates the retail business of the billionaire Mukesh Ambani-led Reliance Industries, has already registered a trust with the market regulator Securities and Exchange Board of India (Sebi) in February this year, they added.
The trust will store the warehouse assets that the group intends to monetise.
According to a media report, the value of the assets that could be transferred to the InvIT is USD 2.4-3 billion ( ₹19,000-25,000 crore). More assets are likely to get added as they become operational, it added.
An e-mail sent to Reliance Retail could not elicit any reply. (PTI)
Vaishali Parekh has recommended three intraday stocks for today, here we list out key details in regard to those day trading stocks:
1] United Spirits or McDowell: Buy at ₹766, target ₹788, stop loss ₹755;
2] GNFC: Buy at ₹546, target ₹567, stop loss ₹538; and
3] Balkrishna Industries: Buy at ₹2049, target ₹2140, stop loss ₹2015. (Read More)
Tata Consultancy Services Ltd missed analysts’ earnings estimates as clients, especially banks, turned abruptly cautious about spending amid a crisis in the US and Europe.
Net profit rose 15% to ₹11,392 crore in the March quarter, TCS said in a statement on Wednesday. Profit rose 5% from the preceding three months. Analysts had estimated a profit of ₹11,530 crore on average, according to a Bloomberg poll. Sales rose 17% to ₹59,160 crore.
As people return to pre-pandemic activities and offices, the spike in demand that Indian IT companies saw during the peak of the covid-19 pandemic from digitization spending by clients is tapering. (Read More)
India’s annual retail inflation for March eased below the central bank’s upper tolerance level for the first time this year, and eased to 5.66% from 6.44% in February, data from National Statistical Office (NSO) showed on Wednesday.
The inflation numbers have seen a decline from 6.44% in February and 6.95% in the year-ago period.
According to the National Statistical Office, the food inflation, which accounts for nearly half of the overall consumer price basket, moderated to 4.79% as vegetable prices eased. It was 5.95% in February and 7.68% in the year-ago period. (Read More)
Stocks dipped to close an up-and-down Wednesday on Wall Street following the latest update on inflation and the latest warning of a possible recession.
The S&P 500 fell 16.99, or 0.4%, to 4,091.95 after drifting between small gains and losses through the day. The Dow Jones Industrial Average slipped 38.29, or 0.1%, to 33,646.50, and the Nasdaq composite lost 102.54, or 0.9%, to 11,929.34.
The main focus for more than a year on Wall Street has been high inflation and how much painful medicine the Federal Reserve will have to dole out to contain it. Wednesday's update on inflation was a mixed one, showing prices at the consumer level were 5% higher last month than a year earlier.
That’s still well above the Federal Reserve’s comfort level, and some underlying trends within the data were also concerning. That weighed on financial markets. But on the upside for investors, the overall inflation number was still better than the 5.2% that economists expected. It also marked a continued slowdown from inflation’s peak last summer.
Altogether, the data sent stocks bouncing, though the swings weren't nearly as severe as they’ve been over the past year. Roughly 65% of the stocks within the S&P 500 fell.
Traders are still largely betting the Fed will raise short-term interest rates by another quarter of a percentage point at its next meeting, according to data from CME Group. They shaded some bets toward the possibility that the Fed will merely hold rates steady in May, something it has not done for more than a year. (API)
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