After a long weekend, benchmark indices will open on Tuesday amidst the news of weak economic data and lending rate cuts in China which raises the concerns of a recession. Wall Street gained despite this news on Monday and Asian traders are trading cautiously but mostly in green on Tuesday.
India Inc to see 10% median salary hike in 2023
India Inc. will see a 10% median salary hike in 2023, pushed by labour constraints and inflation concerns. Global advisory firm WTW noted that the median increase could translate to a 9.8% hike with financial services, banking, technology, media and gaming companies expected to offer the highest increments.
Companies in India are budgeting an overall median increase of 10% for 2023–translating to an average salary increase of 9.8%–compared with the actual 9.5% rise in 2022. (Full Report)
What can put IRCTC stock on growth path
State-owned Indian Railway Catering and Tourism Corp. Ltd’s (IRCTC) earnings for the June quarter (Q1FY23) were a mixed bag. In Q1FY23, revenue at almost ₹853 crore surpassed analysts’ estimates, aided by the solid performance of its catering business. Even so, the catering segment has a relatively lower margin profile and that weighed on Ebitda (earnings before interest, tax, depreciation and amortization) margin performance, which was down by 820 basis points (bps) year-on-year to 37.6%. (Full Report)
Prabhudas Lilladher recommendations on Bajaj Electricals, Hero Motorcorp, Aurobindo Pharma and Apollo Hospitals
Bajaj Electricals (BJE IN): ACCUMULATE | CMP: Rs1,144 | TP: Rs1,211
Hero Motocorp (HMCL IN): BUY | CMP: Rs2,762 | TP: Rs3,130
Aurobindo Pharma (ARBP IN): ACCUMULATE | CMP: Rs593 | TP: Rs635
Apollo Hospitals Enterprise (APHS IN): BUY | CMP: Rs4,313 | TP: Rs5,000
India inflation may remain elevated despite July dip – analysts
India's headline retail inflation that eased for the third straight month in July is expected to remain above the central bank's upper tolerance range in the near term, necessitating more rate hikes in coming months, analysts said.
“High frequency price data suggest that headline inflation is likely to remain around July levels in August…We expect headline inflation to remain above 6% until February 2023, and core CPI inflation to remain sticky at a shade under 6% in the remaining months of FY2023,” Nomura economists Sonal Varma and Aurodeep Nandi said in a note. (Reuters)
India's SpiceJet settles with lessors for Boeing aircraft
Indian low-cost carrier SpiceJet Ltd said on Tuesday it has entered into a settlement agreement with aircraft lessor Goshawk Aviation Ltd and its affiliates related to three Boeing aircraft.
The airline said that the agreement – the terms of which are confidential – ends all litigation proceedings between the parties, adding that this will allow SpiceJet to add two more fuel-efficient Boeing 737 MAX aircraft and one Boeing 737-800 NG aircraft to its fleet. (Reuters)
Syrma SGS Technology IPO: Latest GMP, subscription status on day 2 of the issue
Syrma SGS Technology's initial public offering (IPO), with a price band of ₹209-220 a share, is open for public subscription from August 12 and will conclude on August 18, 2022. At the upper end of the price band, the initial share-sale is expected to fetch ₹840 crore. Syrma SGS Tech's IPO includes a fresh issue of ₹766 crore and OFS of up to 3.37 million shares. (Full Report)
Adani Ports surges, up 3.5%
India logs 8,813 Covid infections in a day; active cases decline to 1,11,252
India's COVID-19 case tally increased by 8,813 in a day to reach 4,42,77,194, while active infections have declined to 1,11,252, according to the Union Health Ministry data on Tuesday.
The death toll has climbed to 5,27,098 with 29 more fatalities, including one death reconciled by Kerala, the data updated at 8 am stated.
Active cases declined by 6,256 in a day and now comprise 0.25 per cent of the total infections, while the national COVID-19 recovery rate was at 98.56%, the health ministry said. (PTI)
ICICI Securities and ICICI Direct views on Derivatives, Opening Bell, and Commodities
The Nifty traded in a narrow range and closed with a gain of 0.12%. Healthy buying was seen in broader market as both midcap and small cap indices outperformed the Nifty. According to option data, 17500 Put strike holds sizeable OI which should act as immediate support on the downsides.
Indian markets are likely to open on a positive note today tracking mixed global clues. Investors are likely to keep track of news of weak economic data and lending rate cuts in China, which raises concerns on a recession.
Daily Recommendations: Copper and Bulldex
Centre to amend Companies Act, tighten audit regime soon
The ministry of corporate affairs will soon introduce a set of tough measures to tighten the framework of statutory auditors aimed at ensuring their independence.
The measures are aimed at checking the recurrence of situations such as the 2018 failure of Infrastructure Leasing and Financial Services Ltd. (IL&FS) group firms.
The ministry has completed a consultation on a report on audit reforms submitted to finance and corporate affairs minister Nirmala Sitharaman in March by an expert committee. (Full Report)
Metal index drags, down almost a percent; most stocks in red
Sensex adds 300 points at open, Nifty up by 100 points.
Cryptocurrency prices today plunge as Bitcoin falls below $25,000; ether, Shiba Inu dip over 6%
Cryptocurrency prices today plunged as the recent rally in market bellwethers Bitcoin and Ether cooled. The world's largest and most popular cryptocurrency Bitcoin fell below $25,000 level, which it crossed during the weekend for the first time since June 13, and was trading over 4% lower at $24,167. The global crypto market cap today was above the $1 trillion mark, even as it was down 2% in the last 24 hours at $1.2 trillion, as per CoinGecko. (Full Report)
Apple lays off recruiters as part of its slowdown in hiring
Apple Inc. laid off many of its contract-based recruiters in the past week, part of a push to rein in the tech giant’s hiring and spending, according to people with knowledge of the matter.
About 100 contract workers were let go in a rare move for the world’s most valuable company, said the people, who asked not to be identified because the situation is private. The recruiters were responsible for hiring new employees for Apple, and the cuts underscore that a slowdown is underway at the company.
Workers laid off were told the cuts were made due to changes in Apple’s current business needs. (Bloomberg)
Sensex remains flat at pre-open on Tuesday. LIC, ONGC, HDFC Bank stocks are in focus today
Cars, hotels, realty among robust sectors
Revenge travel and soaring demand for cars, hotel rooms, new homes and printing and stationery items have spurred the biggest expansion in Ebitda margins for five out of 75 sectors in the fiscal first quarter despite rising or steadily-elevated input costs, showed a Mint study of Capitaline data.
Ebitda margin expanded the most in air transport, hotels, realty, auto and printing and stationery sectors in the quarter ended June (Q1FY23) with most companies in these sectors having issued their quarterly earnings. (Full Report)
Reliance Securities Stock in Focus: Finolex
STOCK IN FOCUS
Finolex (CMP Rs.143)
Considering the leading position in the Agri-pipe segment and backward integration for the PVC Resin business, sustained cash flow and high dividend pay-out of 35% (average over FY16-FY22), we have BUY rating on the stock, with a Target Price of Rs165.
ASHOKLEY (PREVIOUS CLOSE: 147) BUY
For today’s trade, long position can be initiated in the range of ₹144- 146 for the target of Rs.152 with a strict stop loss of ₹142.
INDIGO (PREVIOUS CLOSE: 2014) SELL
For today’s trade, short position can be initiated in the range of ₹2035-2050 for the target of Rs.1980 with a strict stop loss of ₹2065.
WIPRO (PREVIOUS CLOSE: 436) BUY
For today’s trade, long position can be initiated in the range of ₹430- 434 for the target of Rs.450 with a strict stop loss of ₹427.
Stocks to Watch: ONGC, LIC, HDFC Bank, Reliance Infra, Godrej Industries
Future Lifestyle Fashions will be in focus as it declares its June quarter earnings today. Balrampur Chini Mills, Delta Corp, and Tata Chemicals securities will be in the ban period for the F&O segment as they have crossed 95% of the market-wide position limit. (Full Report)
3 chemical stocks that have given multibagger return since last Independence Day
As India is celebrating the completion of 75 years of independence, here we list out three such chemical stocks that have given multibagger return since the last Independence Day.
Fine Organic Industries, Gujarat Fluorochemicals Limited and Gujarat Narmada Valley Fertilisers & Chemicals (GNFC) are the three multibagger chemical stocks that have given returns as much as up to 115% in a year's period. (Full Report)
Oil extends losses on global slowdown and chance of more supply
Oil declined for a third day as a deepening global slowdown looked set to coincide with an increase in supply from OPEC producers.
West Texas Intermediate futures slid toward $88 a barrel after falling around 5% over the previous two sessions. Mounting signs of an economic downturn swept through markets on Monday as bearish US data including rapidly cooling manufacturing followed weaker-than-expected Chinese numbers.
Investors are also facing the prospect of rising supply as demand moderates, while prompt time spreads are signaling concerns over tight global markets are easing. Libya is pumping more and Iran is edging closer to reviving a nuclear deal that will likely see higher crude flows. (Bloomberg)
Rakesh Jhunjhunwala’s stock holdings worth nearly $4 billion in focus after death
The death of Indian billionaire Rakesh Jhunjhunwala puts a spotlight on the nearly $4 billion worth of stocks held by the famed investor, whose trades were closely scrutinized.
Jhunjhunwala was among the most influential market voices in Asia’s third-biggest economy, with an intense following among the nation’s growing horde of retail investors. The man also known as “Big Bull” was a fierce backer of the India growth story.
Jewelery retailer Titan Co. was one of the largest and most profitable investments for the veteran trader and his wife Rekha Jhunjhunwala, making up for more than a third of their portfolio, according to data compiled by Bloomberg. (Full Report)
Shareholders' approve Ashishkumar Chauhan appointment as NSE MD, CEO
Leading bourse National Stock Exchange (NSE) on Sunday said that shareholders have approved the appointment of Ashishkumar Chauhan as its managing director and chief executive. The Extra Ordinary General Meeting (EOGM) of NSE was held on August 11, according to a statement. Shareholders approved the appointment of Chauhan, who was the MD and CEO of rival bourse BSE, with 99.99% votes. He assumed charge as NSE chief on July 26. PTI
M&M to unveil 5 EVs built on new platform in next 5 years
Mahindra and Mahindra on Monday said it will launch five electric vehicles by 2027 on its new platform Inglo, starting with the first in December 2024. The company expects as much as 30% of its sales to come from EVs by 2027. The first launch will be the XUV e8 in December 2024, with the remaining four planned over the next two years. (Full Report)
Inflationary impact on FMCG price & margin to continue in Q2, to improve from 2nd half
Inflationary pressure on some raw material inputs for the FMCG industry is abating but the manufacturers expect its impact on price and margins to continue in the current quarter.
In the April-June quarter, listed FMCG companies including – HUL, ITC, Godrej Consumer Product, Nestle, Dabur and Britannia delivered mixed results, reporting impact on their margins and mostly, a drop in volume in some categories.
FMCG companies also expect volume decline to continue in the rural side but see some stabilisation in the business and recovery in demand, starting from the third quarter of FY23. (PTI)
PM Modi sets sights on developed India by 2047
Prime Minister Narendra Modi on Monday set an ambitious target of making India a developed nation by 2047 and made a renewed pitch for cutting import dependence and boosting domestic manufacturing.
Addressing the nation from the ramparts of the Red Fort on the 76th Independence Day, Modi coined ‘Panch Pran' or lifeblood resolves for the nation when it celebrates its 100th year of independence in 2047. (PTI)
Bank asset quality improves as economy turns around
Aided by a pickup in economic activity, asset quality in the banking system improved over the past year. Bad loans declined about 185 basis points to 5.7% of all loans, although concerns around restructured credit remain.
Public sector banks’ NPA ratio has come down from 9.4% in June 2021 to 7.2%, a drop of 220 bps, while at private banks, the decline was 110 bps, from 4.2% to 3.1%, in the same period. One basis point is one-hundredth of a percentage point. (Full Report)
China cuts interest rate to shore up sagging economy
China’s central bank has trimmed a key interest rate to shore up sagging economic growth at a politically sensitive time when President Xi Jinping is believed to be trying to extend his hold on power. The ruling Communist Party has acknowledged it can’t hit this year’s official 5.5% growth target after anti-virus curbs disrupted trade, manufacturing and consumer spending. A crackdown on corporate debt has caused activity in the vast real estate industry to plunge. Government data showed July factory output and retail sales weakened. The rate cut suggested Beijing’s worries about rising debt are at least temporarily outweighed by the political dangers of an economic slump and job losses. (AP)
Make in India: Govt holds meeting on container production
A meeting was held on Monday between Union Minister of Ports, Shipping and Waterways Sarbananda Sonowal and his Railways counterpart Ashwini Vaishnaw to facilitate an ecosystem for container production under the Make In India programme, an official statement said.
The high-powered meeting deliberated on various aspects in this regard.
“With a cluster base manufacturing in focus, the CONCOR will be working closely with the Ministry of Ports, Shipping & Waterways (MoPSW),” the statement added. (PTI)
Be cautious! Nifty approaching key resistance zone, say analysts
It is time to get cautious as Indian stock markets are approaching key resistance levels though the short-term trend remain positive, say analysts. Equities will track global trends, foreign fund flows and movement of crude oil prices in this holiday-shortened week. Stock markets are closed today on account of Independence Day. The demise of ace investor Rakesh Jhunjhunwala on Sunday has come as a shock to the investor community.
“Short-term traders must liquidate some positions and wait for dips to enter. Immediate resistance is located around 17,800, while 17,600 serves as a decent support,” said Apurva Sheth, Head of Market Perspectives, Samco Securities.(Full Report)
US Stocks, dollar gain despite surprise weak China data
Global equities and the U.S. dollar advanced on Monday despite weaker-than-expected economic data in China that prompted its central bank to cut its lending rate, stoking concerns of a global recession.
The Dow Jones Industrial Average rose 0.42% to 33,903.57, the benchmark S&P 500 gained 0.37% to 4,296.09 points, and the Nasdaq Composite added 0.59% to 13,123.89.
The dollar index, which measures the greenback against six peers, rose 0.785%, with the euro down 0.97% to $1.0158. (Reuters)
the App to get 14 days of unlimited access to Mint Premium absolutely free!