Indian equity markets were volatile on Wednesday with key indices see-sawing between losses and gains. Sensex was flat at around 50,200, while Nifty managed to hold on to the 15,100 mark. Asian markets were lower tracking US stocks that fell overnight. Banks and auto stocks were the biggest drag. Tata Motors fell 5%
Gold futures gain on spot demand
New Delhi: Gold prices on Wednesday rose by ₹78 to ₹48,385 per 10 gm in the futures trade as speculators created fresh positions on a firm spot demand.
On the Multi Commodity Exchange, gold contracts for the June delivery traded higher by ₹78, or 0.16%, at ₹48,385 per 10 gm in a business turnover of 6,312 lots. Fresh positions built up by participants led to the rise in gold prices, analysts said. Globally, gold prices traded 0.07 per cent higher at $1,869.30 per ounce in New York. (PTI)
UPL top gainer; Tata Motors drags
IOC gains on Q4 result
Indian oil corporation Ltd reported a net profit of ₹8,781.30 crore for the March quarter, compared to a loss of ₹5,185.32 crore a year ago. The company’s board has recommended a final dividend of ₹1.50 per share. Revenue from operation jumped to ₹1.63 lakh crore from ₹1.39 lakh crore last year.
India’s second wave humanitarian rather than economic crisis: Nomura
As virulent virus strain and stretched hospital capacity have resulted in a sharp rise in fatalities, Nomura said that India’s second wave has likely peaked but has unleashed a devastating human cost. The rolling state-wide lockdowns has hit mobility steeply and the economic impact is likely to be most severe in May, it added. “The second wave has exacted a large human cost, but we expect its economic impact to be localised in Q2 and muted overall,” Sonal Verma and Aurodeep Nandi, economist, Nomura said in a report on 18 May.
Realty rallies; banks, metals drag
NCLT tells DHFL’s lenders to review settlement offer
NCLT has asked Dewan Housing Finance Corp. Ltd’s lenders to review settlement offer proposed by the NBFC’s promoter Kapil Wadhawan, according to multiple media reports. In a letter to the administrator, Wadhawan reiterated his offer to make 100% repayment to all creditors within 7-8 years with an upfront payment of ₹9000 crore. Earlier, creditors had rejected Wadhawan’s offer in favour of Piramal Capital and Housing Finance Ltd’s acquisition offer.
PNB lists new shares issued under QIP
Punjab National Bank announced the listing of 53,33,33,333 shares of face value ₹2 apiece allotted under qualified institutional placement. The shares were issued at a premium of ₹31.75 apiece, the bank said in a regulatory filing.
Oil drops below $65 as stockpiles expand, Iran talks cast shadow
Oil headed for a back-to-back loss after an industry report showed a rise in U.S. crude stockpiles and traders tracked talks between world powers on a revival of the Iran nuclear deal.
West Texas Intermediate for June delivery tumbled 1%, while global benchmark Brent — which topped $70 a barrel briefly in early Tuesday trade — also declined. The American Petroleum Institute reported that domestic oil stockpiles increased by 620,000 barrels last week, according to people familiar with the figures. At the same time, gasoline and distillate inventories dropped. (Bloomberg)
Jyothy Labs Q4 is muted, but near-term outlook isn’t bright either
March quarter financial results of Jyothy Labs Ltd, which is primarily in the home care and personal care segments, are not exciting enough. Yes, revenue growth is strong optically. Consolidated revenues have increased by 26% year-on-year to Rs495 crore. However, revenues have declined by 2% on a two-year CAGR basis. CAGR is compound annual growth rate.
“Implementation of continuous replenishment system (CRS) led to a one-time correction in channel inventory impacting sales growth by 8-10 percentage points, per management,” inform analysts from Kotak Institutional Equities in a report on 19 May. Currently, the Jyothy Labs stock is around 10% lower than its pre-covid highs seen in January 2020.
Suraksha ARC, NBCC submit revised bids for Jaypee Infratech; CoC to take a call tomorrow
Suraksha ARC consortium is considered to be in the lead, according to multiple media reports.
Gold edges back towards 4-month peak ahead of US Fed minutes
Gold prices edged higher on Wednesday to hover around a four-month high, helped by a weaker dollar, ahead of minutes from the U.S. Federal Reserve’s last policy meeting that are expected to shed more light on policymakers’ views on inflation. Spot gold was up 0.3% at $1,873.01 per ounce by 0657 GMT, after hitting its highest since Jan. 29 at $1,874.80 in the previous session. U.S. gold futures rose 0.2% to $1,872. “Gold surged aggressively since the start of the week around the narrative that we could see inflation pick up in an environment where the Fed is resistant to tightening,” DailyFX currency strategist Ilya Spivak said. (Reuters) –
Dr Reddy’s in talks with RDIF on Sputnik V for other countries
Dr Reddys Laboratories, which is in a pact with Russian Direct Investment Fund to sell 125 million people doses (250 million vials) of COVID-19 vaccine Sputnik V in India, is holding parleys with RDIF for acquiring rights for more countries, a senior official of the Indian drug maker said. Dr Reddy’s which had received over two lakh vaccines from RDIF, recently soft-launched Sputnik V and tied up with Apollo Hospitals for piloting the vaccine. “.. we are also in discussions with them (RDIF) about quantities and rights, assets permit for other countries. So this is the overall view that we have at this stage of Sputnik,” Dr Reddy’s chief executive Erez Israeli said in a recent earnings conference call. (PTI)
TCS is entering FY22 with strong growth momentum: CEO
TCS is entering FY22 with strong growth momentum and higher visibility for future growth on the back of a strong order book built up throughout the year and a robust deal pipeline, Rajesh Gopinathan, chief executive officer and managing director, TCS said in its annual report 2020-21. TCS’s order book in every quarter of FY21 was higher than the corresponding period of the previous fiscal. It closed the March quarter with an all-time high total contract value (TCV) of $9.2 billion. The full year order book stood at $31.6 billion, the highest ever, representing a growth of 17.1% over the prior year.
BofA survey sees inflation as a top risk, yet it won’t reverse global equity rally
For global fund managers, Covid concerns are now a thing of the past. The latest survey by BofA Securities showed that 35% of respondents see inflation as the biggest tail risk to their portfolios. This is despite the US Federal Reserve’s assurance that the recent surge in prices as temporary in nature.
A record of 69% those surveyed see a scenario of high growth and high inflation going ahead. Even though global investors are unnerved by the latest inflation data, market experts are of the view that the ongoing stock market rally is unlikely to reverse only due to inflation. They feel, the accommodative stance of global central banks will continue to lend support to the equity market sentiment. (Read here)
Karnataka government announces ₹1,250 crore covid-19 relief package
PIL against Covaxin trial on 2-18 age group: HC seeks Centre’s stand
A PIL to set aside the permission granted by the Drugs Controller General of India to Bharat Biotech for conducting the phase II/III clinical trial of its Covaxin COVID-19 vaccine on the 2-18 age group was heard on Wednesday by the Delhi High Court which sought the Centre’s stand.
A bench of Chief Justice D N Patel and Justice Jyoti Singh issued notice to the Centre and Bharat Biotech seeking their stand by July 15 on the petition.
The court declined to pass any interim order staying the permission, granted on May 12, for clinical trials as sought by the petitioner, Sanjeev Kumar.
The trial will be conducted on 525 healthy volunteers. (PTI)
Bitcoin below $40,000 for first time since Feb on China crypto warning
Prices of the world’s biggest cryptocurrency, bitcoin, fell below the $40,000 level for the first time since 9 February after China reiterated its stance that financial and payment institutions should not deal in digital assets and warned investors against speculative crypto trading.
This is not the first time when China had issued such warning. In 2017, it had shut local crypto exchanges and in 2019 the country blocked access to domestic and foreign cryptocurrency exchanges.
The latest statement has come from three industry bodies —the National Internet Finance Association of China, the China Banking Association and the Payment and Clearing Association of China. (Read here)
Torrent Pharma gains
The Q4 performance by Torrent Pharma remained a mixed bag. While the company continued to grow well in the domestic arena, the sales growth in most other geographies remained subdued. The company’s overall revenues during the quarter at ₹1,937 crore was down by 1% year-on-year despite India sales (about half of overall) growing 10% year-on-year.
As reported profit growth impressed, the expectations of a rebound in sales growth are driving the stock prices. The stock gained more than 6% in morning trades on Wednesday. (Read more)
Central Bank of India up 5%
The bank said its shareholders have approved allotment of preference shares to the government for a ₹4,800-crore capital infusion. At the virtual EGM, the bank chairman Tapan Ray said the preference share allotment to the government has been worked out at ₹17.11 per share.
Cyclone Tauktae weakens; to bring rain in many states: IMD
Cyclone Tauktae weakened into a “depression” and lay centred over south Rajasthan and adjoining Gujarat region on Wednesday morning, the India Meteorological Department said. After causing widespread rain in Gujarat, the cyclone is expected to bring showers in many other states, including Rajasthan, Uttarakhand, Himachal Pradesh, Uttar Pradesh and Delhi, due to its interaction with the western disturbance, the IMD said.
Adani Green up 3%
Adani Green Energy Ltd is set to buy Japan’s SoftBank Group Corp. and Bharti Enterprises Ltd owned solar power producer SB Energy India for an enterprise value of $3.5 billion, the firms said in a joint statement on Wednesday.
This follows the collapse of a plan to sell SoftBank’s entire 80% stake in SB Energy to Canada Pension Plan Investment Board (CPPIB) for an estimated $525 million.
Nifty Auto down over 1%
Rupee rises 5 paise to 73 against US dollar in early trade
Covid update: India reports over 4,500 fatalities, highest ever in 24 hours
In the last 24 hours, 2,67,334 more people tested positive in India. With the addition of fresh infections, the cumulative caseload in the country has reached 2,54,96,330.
India’s daily spike has remained below 3 lakh for the third consecutive day.
However, the death toll has seen a huge jump with 4,529 more people succumbing to the disease in the last 24 hours. This is the biggest jump in daily fatalities ever recorded in the country.
Ujjivan Small Finance Bank’s bad loan troubles begin to bite in Q4
On the face of it, Ujjivan Small Finance Bank Ltd’s March quarter performance had several optically pleasing metrics. The lender’s net profit surged 86% on the back of earlier provisions written back into profits and an increase in non-interest income. Its disbursements were the highest ever in the month of March, growing a robust 31% for the quarter.
Indeed, in the recovery path for banks, Ujjivan will win prizes.(Full report)
Tata Motors down 5%; posts consolidated loss of ₹7,585.34 crore
The automaker posted a consolidated loss of ₹7,585.34 crore in the March quarter, mainly because its UK unit Jaguar Land Rover wrote off investments worth ₹15,000 crore during the period. The figure is, however, narrower than the ₹9,863.75 crore loss a year ago as Tata Motors and JLR reported robust sales during the period.
BSE Midcap outperforms: Torrent Pharma, Adani Power lead
Nifty at open: Tata Motors slips 5%; UPL top gainer
Sensex at open: Power Grid, UltraTech top gainers; ONGC, M&M lag
Sensex, Nifty open in the red
Indices flat in pre-open
Adani Green Energy to buy SB Energy Holdings in $3.5 billion deal
Oil prices fall
Oil prices fell for a second day on Wednesday on the potential of Iranian supply returning and as investors sold on speculation that inflation fears might lead the U.S. Federal Reserve to raise interest rates, which could limit economic growth.
U.S. West Texas Intermediate (WTI) crude futures dropped 73 cents, or 1.1%, to $64.76 a barrel, following a 1.2% fall on Tuesday. Brent crude futures also fell 73 cents, or 1.1%, to $67.98 a barrel, after dropping 1.1% on Tuesday.
Markets likely to shed gains on global cues
Indian equity markets are likely to fall on Wednesday, while trends in SGX Nifty suggest a weak opening for domestic benchmark indices. On Tuesday, India’s benchmark BSE Sensex rallied to close above the 50,000 mark for the first time in nearly two months. Sensex rose 612.60 points or 1.24% to close at 50,193.33. The Nifty was up 184.95 points or 1.24% at 15,108.10.
Stocks to Watch: Axis Bank, Adani Ports, Tata Motors, Infosys
Axis Bank, Adani Ports, Tata Motors, Infosys and aviation stocks will be in focus today. Among key companies that will announce their March quarter earnings are Indian Oil Corp, JK Tyre & Industries, Endurance Technologies, Heritage Foods, Indiabulls Housing Finance and IRFC
Asian shares weak
Asian stocks tracked U.S. declines on Wednesday as concern about faster inflation shadowed the economic recovery from the pandemic.
Japan’s Nikkei index retreated 1.3%, Australia’s S&P/ASX 200 index fell 1.9% and China’s Shanghai Composite index lost 0.5%.
Financial markets in Hong Kong and South Korea are closed on Wednesday for public holidays.
Wall Street ends lower on Tuesday
US stocks fell on Tuesday, with technology shares turning lower in late New York trading.
The Dow Jones Industrial Average fell 0.78%, S&P 500 lost 0.85%, and the Nasdaq Composite dropped 0.56%.
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