Stock Market LIVE: Indices in red, Sensex below 58,000; Rupee breaks 79
Economic data from the U.S., Europe and China showed demand weakening under inflation pressures, while the looming possibility of recession curbed risk appetite. Wall Street ended a three-day winning streak and crude prices plunged on Monday. Escalating US-China tension over Taiwan will also play a role on Tuesday.
Zomato shares rally as Q1 loss halves. What should investors do? Here’s what brokerages recommend
Shares of online food delivery platform Zomato rallied nearly 8% on the BSE to ₹49 apiece in Tuesday’s opening deals as its consolidated net loss in the first quarter of the current financial year almost halved to ₹186 crore due to higher income. The company had reported a net loss of ₹360.7 crore in the year-ago period. (Full Report)
Pre-monetary policy view by Kotak Mahindra Life Insurance: ‘Moderate, data-dependent policy adjustments’
Churchil Bhatt, executive vice president – debt investments, Kotak Mahindra Life Insurance Company, said “The upcoming August RBI policy will likely mark the end of an era characterized by outsized, at-any-cost rate tightening with a 35bps hike in policy rates. MPC may hint at a bit more moderate, data-dependent policy adjustments thereafter, while persisting with ongoing withdrawal of system liquidity.
From a medium-term perspective, trajectory of the Repo Rate remains a function of global inflationary dynamics. In our view, while inflation may have peaked for now, but it is far from dead. Unless supply is augmented in energy and industrial commodities, any growth impulse will lead to an accompanying rise in inflation, especially since the Ukraine situation is far from over. Therefore, any hint of a pause in rate hiking cycle may be treated as just that, with all possibilities open depending upon evolving growth inflation dynamics.”
Winemaker Sula Vineyards to test IPO market after tech unicorns flop
While recession fears have seen new listings grind to a halt this year, one of the few companies currently seeking to go public in Mumbai is testing investor appetite for India’s growing wine market. (Full Report)
India records dip in daily Covid-19 cases, logs 13,734 new infections
India witnessed a record decline in daily Covid-19 cases with the country reporting 13,734 new infections in the past 24 hours, according to the Union Health Ministry. The country logged 16,464 Covid-19 cases on Monday, while over 20,000 infections on Sunday. The active caseload in India currently stands at 1,39,792.
The data shows that a total of 17,897 people recovered from the coronavirus infection in the last 24 hours, taking the country’s cumulative recoveries to 4,33,83,787. The recovery rate remains consistent at 98.49%. (Full Report)
Reliance Securities – Market Lens: Stock in Focus – Crompton
STOCK IN FOCUS
Crompton (CMP Rs.399)
We have a BUY rating, with a Target Price of Rs475.
HINDUNILVR (PREVIOUS CLOSE: 2593) SELL
For today’s trade, short position can be initiated in the range of ₹2620-2630 for the target of Rs.2570 with a strict stop loss of ₹2650.
HDFCLIFE (PREVIOUS CLOSE: 546) BUY
For today’s trade, long position can be initiated in the range of ₹537- 542 for the target of Rs. 555 with a strict stop loss of ₹530.
TECHM (PREVIOUS CLOSE: 1050) BUY
For today’s trade, long position can be initiated in the range of ₹1035- 1045 for the target of Rs. 1075 with a strict stop loss of ₹1030.
Indian rupee breaks below 79 per dollar, bond yield at 3-mth low
The Indian rupee strengthened to a sub-79 per dollar level in opening trade on Tuesday to its highest in more than three weeks while the 10-year bond yield fell to a three-month low tracking U.S. yields and losses in the greenback.
The partially convertible rupee was trading at 78.95 per dollar compared to its close of 79.02 after touching 78.94, its strongest since July 7.
The yield on India’s 10-year bond was at 7.21%, after falling to 7.18% in opening deals, its lowest since May 4. The yield was at 7.24% on Monday.
Most of the indices in red. Metal down 1%, whereas FMCG shines and gains 1%
As expected, Indices started on a cautious note taking cues from Wall Street and Asian markets. All benchmark indices are trading in red.
Should you buy ITC shares after strong Q1 performance across business verticals?
ITC Ltd reported a 38% rise in consolidated net profit to ₹4,169 crore for the April-June quarter following a good performance by its business verticals. The company had posted a net profit of ₹3,013 crore in the year-ago quarter. Revenue grew over 41% to ₹18,320 crore from ₹12,959 crore a year ago.
Hotels was a star performer in 1Q, with highest-ever quarterly revenue and Ebitda in over a decade. While YoY comps benefited from a low base, 3Y revenue CAGR was also healthy at 12%. (Full Report)
Sensex has a flat pre-opening. Escalating US-China tension over Taiwan might tame the rally.
India to have 31 new shopping malls in two years on strong retail sector demand: Report
As many as 31 new shopping malls are expected to be operational by the end of next year on the back of strong revival in the retail sector, according to Anarock.
This year, a total of 15 new malls will enter the market spread across 12 cities and in 2023, another 16 new malls will come up.
In terms of area, property consultant Anarock said fresh retail space in shopping malls is expected to rise 76 per cent this year on an annual basis.
Stocks to Watch: Reliance, ITC, Zomato, Union Bank of India, UPL
Adani Green Energy, Indus Towers, Bank of India, Bosch, Siemens, and Voltas will be in focus as they declare their June quarter earnings today. (Full Report)
SpiceJet clears all dues with Airports Authority of India
Indian low-cost carrier SpiceJet Ltd said on Tuesday it had cleared all its outstanding principal dues with the Airports Authority of India, which owns and operates airports in the country.
The airline will revert to an advance payment mechanism for its daily operations, it added, days after the aviation regulator ordered the low-cost airline to slash its approved fleet to 50% this summer for eight weeks citing safety snags.
Zomato plans new management structure, with multiple CEOs -memo
Zomato, the Indian food delivery company backed by China’s Ant Group, is considering reorganising its management so that each of its individual businesses would have its own CEO, while the parent company would be renamed “Eternal”, an internal company memo said.
Zomato’s CEO Deepinder Goyal in the memo stated that the company was now not only running the Zomato food delivery business but also other large businesses.
Goyal said these included Zomato’s proposed purchase of grocery-delivery startup Blinkit, kitchen and food ingredients supply business Hyperpure, and Feeding India, a not-for-profit firm that aims to reduce hunger in India’s poor communities.
Growth momentum good but exports may be hit: Sanyal
Tighter monetary policy in developed economies and macro-economic stress in some emerging markets may impact demand for Indian exports in the next 6-12 months, said Sanjeev Sanyal, a member of the Prime Minister’s Economic Advisory Committee (PMEAC), in an emailed interview.
However, he added that instead of getting distracted by “cyclical factors”, India should focus on becoming part of the global supply chain in an aggressive way. (Full Report)
Gold falls by ₹195, silver drops by ₹223 on Monday
Gold prices declined by ₹195 to ₹51,947 per 10 grams in the national capital on Monday amid weak global cues and rupee appreciation, according to HDFC Securities.
The precious metal had closed at ₹52,142 per 10 grams in the previous trade.
Silver declined by ₹223 to ₹58,731 per kg from ₹58,954 per kg in the previous trade.
Local OTT platforms battle rising costs of production
The streaming business is getting expensive for homegrown over-the-top (OTT) video platforms competing for eyeballs with well-funded global companies such as Netflix, Amazon Prime Video and Disney+Hotstar.
While American firms with deep pockets have kept pace with the rising costs of producing web originals, smaller OTT platforms said it is a challenge considering the mounting bills as actors, writers and directors charge more and more as bigger platforms loosen their purse strings. Viewers, too, expect superior quality, requiring higher investments. (Full Report)
Rupee rises by 18p to close at nearly 4-week high against dollar
The rupee rose by 18 paise to close at a nearly four-week high of 79.06 against the US currency on Monday following foreign fund inflows, a decline in crude oil prices and weak American currency in global markets.
Strong gains in domestic equities, positive PMI data and an increased appetite for riskier assets among investors also boosted the rupee sentiment, analysts said.
At the interbank forex market, the local unit opened higher at 79.16 on gains in stocks and a fall in crude oil.
China stocks tumble on news of Pelosi’s expected Taiwan visit
China major stock indexes slumped on Tuesday, as tensions between Washington and Beijing mounted on news U.S. House of Representatives Speaker Nancy Pelosi was set to visit Taiwan during the day.
Selling was broad-based. The CSI300 index fell 1.4% to 4,129.73 points at 2:03 GMT, while the Shanghai Composite Index lost 1.7% to 3,205.98 points.
The Hang Seng index in Hong Kong was down 2.5%, to 19,660.96 points.
Pelosi, who began an Asia trip earlier on Monday in Singapore, was due to spend Tuesday night in Taiwan, three people briefed on the matter said, as the United States said it wouldn’t be intimidated by Chinese threats to never “sit idly by” if she made the trip to the self-ruled island claimed by Beijing.
Air India brings new policy; allows pilots to fly for 5 yrs after retirement
Chief Human Resource of Air India in a letter said, “Air India’s pilots currently retire at the age of 58, the company has made a policy to extend service to pilots even after retirement, amid increasing the number of aircraft in its fleet.”
The company’s current retire age for pilots is 58. The policy has been made to extend service to pilots even after retirement keeping the increasing number of aircraft in its fleet in mind. (Read More)
Zero probability of India getting into recession or stagflation: FM Sitharaman
India does not face any risk of either recession or stagflation as its macroeconomic fundamentals are “perfect”, Finance Minister Nirmala Sitharaman asserted in the Lok Sabha on Monday.
Sitharaman said that India is doing better than its peers and there is no question of India getting into recession or stagflation … there is no question of us getting into stagflation or like the US a technical recession. (Full Report)
5G Auction: Record ₹1.5 lakh crore bids; Jio top bidder
India’s biggest ever auction of telecom spectrum received a record ₹1.5 lakh crore of bids, with Mukesh Ambani’s Jio cornering nearly half of all the airwaves sold with a ₹88,078 crore bid.
Richest Indian Gautam Adani’s group, whose entry in the auction was billed by some as another flashpoint in the rivalry with Ambani, paid ₹212 crore for 400 MHz, or less than 1 per cent of all spectrum sold, in a band that is not used for offering public telephony services.
Telecom tycoon Sunil Bharti Mittal’s Bharti Airtel made a successful bid of ₹43,084 crore, while Vodafone Idea Ltd bought spectrum for ₹18,799 crore.
Tokyo shares open lower after US losses
Tokyo shares opened lower on Tuesday following modest losses on Wall Street, where petroleum-linked shares retreated.
The benchmark Nikkei 225 index fell 0.62%, or 174.40 points, to 27,818.95 at the open, while the broader Topix index dropped 0.64%, or 12.55 points, to 1,947.56.
“Tokyo shares will fall… after the three major US indexes dropped,” Mizuho Securities said. “The market is also likely to be weighed down by a stronger yen and profit-taking.”
Wall Street markets waver, oil prices sink
Wall Street ended a three-day winning streak and crude prices plunged on Monday as economic data from the U.S., Europe and China showed demand weakening under inflation pressures, while the looming possibility of recession curbed risk appetite.
All three major U.S. indexes ended the choppy session modestly lower on the first day of August, on the heels of the S&P 500’s and the Nasdaq’s largest monthly percentage gains since 2020.
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