Sensex sheds 630 pts, Nifty closes almost 200 pts lower; Bank, IT, Metal sink

Indices shed a per cent as Sensex closed 600 points lower and Nifty 200 points

Indian shares reversed all the gains made on Monday and shed a per cent after hawkish comments from Federal Reserve officials and a warning from the IT giant TCS.

Sensex tanked 630 points to close at 60,115. Nifty gave up on 18,000 and ended the day at 17,914, a drop of 187 points.

Bank, IT, Metal and Finance dragged the most in a session where almost all indices ended in the red. Auto and Healthcare remained the only exception and closed with minor gains.

Tata Motors jumped almost 6% after JLR posted a 15% rise in wholesale volumes for the third quarter on strong demand and improved chip supplies. Hindalco, Apollo Hospitals, Power Grid and Divi’s Labs gained a per cent. Adani Enterprises fell 5%, Airtel 3%, and Eicher Motors, Adani Ports and SBI more than 2%.

Asian Indices mostly fell except for Tokyo. Japan’s Nikkei index closed at its highest in two weeks as technology stocks jumped, but the gains were capped by caution ahead of next week’s meeting of the Bank of Japan. The Nikkei share average ended 0.78% higher and the broader Topix gained 0.27%.

China stocks snapped a six-session winning streak as some investors booked profits on doubts over the sustainability of the market’s recent rebound.

China’s blue-chip CSI 300 Index closed up 0.1%, while the Shanghai Index lost 0.2% after rising in the previous six sessions. Hong Kong’s Hang Seng Index and the Hang Seng China Enterprises Index declined 0.3% each.

European stocks fell as investors weighed hawkish comments from Fed for clarity on the trajectory of interest rates. The Stoxx Europe 600 Index dropped in the morning session retreating from an eight-month high as consumer products, construction and retail stocks led declines. Britain’s FTSE 100 also retreated from a three-and-a-half-year high on Tuesday

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Stellar Value Chain to invest ₹200 cr in 3-4 years to build fulfilment centres in 6 cities

Stellar Value Chain Solutions, a consumer supply chain startup, on Tuesday said it will invest around ₹200 crore over the next three-four years to build modern, tech-enabled fulfilment centres exclusively for direct-to-consumer (D2C) brands.

Stellar Value Chain Solutions is looking at onboarding around 20 D2C brands as its initial pool of clients. These centres will be equipped with advanced technologies that will empower the D2C brands with new-age supply chain solutions and will offer fast shipping and efficient return management services. (Read More)

Adani Enterprises is among the biggest laggards as it sheds more than 5%

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YES SECURITIES on TCS: Inline operating performance; Concerns regarding near term demand environment

YES Securities views on Tata Consultancy Services: ADD

CMP: ₹3,320

Target Price: ₹3,561

Potential Return: +7.3%

Inline operating performance; Concerns regarding near term demand environment

Tata Consultancy Services(TCS) reported broadly inline quarterly performance. It reported USD revenue growth of 2.9% QoQ. However, the depreciation of INR vs USD by around 2.9% QoQ supported the INR reported growth. The revenue growth was led by strong performance in Retail and CPG vertical(up 18.7% YoY). There was sequential improvement in EBIT margin(up 52bps QoQ) led by improving employee pyramid and other efficiency measures. Employee attrition remained high as LTM attrition declined by 20 bps QoQ to 21.3%. We maintain our ADD Rating with revised target price of ₹3,561/share at 27x on FY24E EPS.

Zydus Lifesciences gets final USFDA approval for drug to treat high uric acid

Zydus Lifesciences Ltd on Tuesday said it has received final approval from the US health regulator to market its generic version of Febuxostat tablets used to treat high uric acid in the blood.

The approval granted by the US Food and Drug Administration (USFDA) to market Febuxostat tablets is for strengths of 40 mg and 80 mg, the company said in a regulatory filing.

The drug will be manufactured at the group’s formulation manufacturing facility at Moraiya in Ahmedabad, it added.

The company said Febuxostat tablets are indicated to lower hyperuricemia (high uric acid in the blood) in patients with gout who have been treated with allopurinol that did not work well or cannot be treated with allopurinol. (PTI)

UP suspends license of cough syrup maker linked to Uzbekistan deaths: Report

Uttar Pradesh has suspended the production license of drug maker Marion Biotech, whose cough syrup has been linked to the death of 19 children in Uzbekistan, news agency Reuters quoted a report on Tuesday. Uzbekistan had earlier arrested four people in an investigation into the deaths of 19 children who consumed cough syrup made by Marion Biotech.

Two of the detained were senior employees of the Scientific Center for Standardization of Medicines, who circumvented the proper testing procedures for the Doc-1 Max cough syrup. (Read More)

Nayara Energy announces plan to strengthen environmental footprint

Nayara Energy on Tuesday announced its plans to strengthen the environmental footprint by augmenting renewable power generation across its operations. “The company is progressing well on its plans to set up a 10 MW Solar Power Plant at its Vadinar Refinery in Gujarat, which will help Nayara mitigate approximately 20,000 tons of CO2 emissions every year,” the company said in a release.

Nayara Energy initiated the development of a 500-kW captive solar power plant at its greenfield rail-fed fuel depot at Pali in Rajasthan late last year. “Scheduled for commissioning by March 2023, the on-grid solar plant will help them reduce its carbon footprint by preventing 730 tons of CO2 emissions per year,” it added. (Read More)

As Sona BLW shares rally post Novelic acquisition, what the deal could mean for the stock?

Shares of Sona BLW Precision Forgings (Sona Comstar) rallied up to 8% to ₹458 apiece on the BSE in Tuesday’s trading session after the auto component maker said it will acquire 54% stake in Serbia-based Novelic for 40.5 million euro (around ₹356 crore) enabling it to foray into the advanced driver assistance systems sensor market.

“While the acquisition may appear small in the overall scheme of things, we like the acquisition as it: i) Adds another revenue stream. ii) Complements its focus in the EV space. iii) Provides an option to scale the business and develop adjacencies in conjunction,” said brokerage Edelweiss. (Read More)

Eicher Motors sheds 3% and has found itself among the top draggers

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European shares dip as rate hike nerves crimp rally

European shares fell on Tuesday as investors turned cautious ahead of a speech by Federal Reserve Chair Jerome Powell after two U.S. central bank policymakers struck hawkish tones overnight.

The pan-European STOXX 600 slid 0.7% by 0811 GMT. The index had hit its highest level in eight months in the previous session.

Powell’s speech later in the day was on investors’ radar after Fed policymakers said they expected the Fed policy rate — now at 4.25% to 4.5% — to need to rise to a 5%-5.25% to rein in inflation.

Rate-sensitive technology stocks dropped 1.0%, while pharmaceutical majors Novo Nordisk and Novartis AG dropped more than 1.5% each, weighing on the STOXX 600.

Miners fell 1%, tracking weak copper prices as investors gauged demand risks amid fears of further U.S. rate hikes. (Reuters)

Coal India issues Letters of Acceptance for nine greenfield projects through MDOs

Coal India Ltd has issued letters of acceptance (LoAs) for nine greenfield projects to be pursued through mine developers and operators, the Ministry of Coal said in a statement. These projects have a production capacity of close to 127 million tonne per year, the public sector coal miner said.

The Ministry of Coal intends to engage reputed Mining Developers cum Operators (MDOs) in coal mines, through open global tenders, to ramp up domestic coal production and reduce import dependency to the extent possible. (Read More)

India wheat harvest could hit record on higher planting area, favourable weather

India’s wheat production is set to jump to a record after all-time high prices prompted farmers to expand planting areas with high-yielding varieties and good weather conditions, scientists and traders told Reuters.

Higher wheat output could encourage India, the world’s second-biggest producer of the grain, to consider lifting a ban on exports of the staple and help ease concerns over persistently high inflation in food prices.

“This year production could rise to 112 million tonnes because of the higher area and favourable weather,” Gyanendra Singh, director at the Indian Institute of Wheat and Barley Research, told Reuters.

India, also the world’s second-biggest consumer of wheat, banned exports in May 2022 after a sharp, sudden rise in temperatures clipped output, even as exports picked up to meet the global shortfall triggered by Russia’s invasion of Ukraine. (Reuters)

Metal index lags in today’s trading as it sheds a per cent with Adani Enterprises dragging the index 

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Gems and jewellery export slips 19% in Dec on weak demand

Exports of gems and jewellery slipped around 19% in December as weak consumer sentiments in the West disrupted trade in an otherwise healthy month for the sector, Gem and Jewellery Export Promotion Council (GJEPC) said.

The council warned that Ukraine-Russia conflict which has entered its 11th month has begun to hit cut and polished diamond exports as rough diamond imports from Russia plunged 40% in six months from March 2022. Russia is the largest producer of rough diamonds. (Read More)

Byju’s seeks more time from creditors to recast $1.2 billion debt

Byju’s, the world’s most valuable edtech startup, has sought more time from creditors to renegotiate an agreement governing a $1.2 billion loan that is in breach of covenants, according to people with knowledge of the matter.

The creditors have until Tuesday to sign a forbearance agreement, which will give the company time till Feb. 10 to negotiate broader terms on the term loan, the people said, asking not to be identified as the information isn’t public. Byju’s hadn’t met the deadline to disclose financial results for the year ended March 31, they said. (Read More)

Manu Rishi Guptha of MRG Capital on budget expectations with regard to Capex Spending, Fiscal Deficit, Tax Rates, and Export Duties

Manu Rishi Guptha, founder & CEO of MRG Capital: Considering this budget is the last before the general elections in 2024, we expect the budget to be a bit populist. Support to MSME and Agri sectors to continue while some moderation in capex from 7.5 lakh crore in FY23) is expected. Buoyant direct and indirect tax collections will be offset by sticky food, farm subsidy bills and lower disinvestment targets. So, need to see the path FM takes to get to the fiscal deficit target of 4.5% by FY26 from 6.4% currently. A weaker rupee makes the task even more difficult in bridging the fiscal deficit gap as any increased borrowing will lower the yields and push the rupee even lower.

Govt’s ECLGS scheme to support Covid-hit MSME sector has seen 71% (of a total 5 lakh crore allocated) disbursals and is set to end in March 2023. Not availing of full credit available indicates better health of the sector but considering the inflationary trends and falling exports amid global recessionary trends, we expect Govt to extend the validity of the scheme.

The government hasn’t tweaked income tax slabs since Feb 2020 budget wherein tax rates were reduced albeit on the clause of not claiming any exemptions. With inflationary trends and in view of FY24 elections, Govt might offer some relief to the salaried class to increase the exemption limit from the current 2.5 lakhs.

With current demand for housing and Govt’s intention to do away with exemptions, we don’t expect any rise in the 2 lakh deduction that currently one can claim on housing loan interests.

Govt has recently removed export duties on certain steel products to boost exports. We can expect some custom duty hikes also on imports in coming budget (these were reduced in FY22 budget) to give a fillip to local manufacturing through the PLI scheme.

Airtel among the biggest draggers in today’s session, sheds more than 2%

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Govt aims to engage Mining Developers cum Operators (MDO) in coal

The Union Ministry of Coal intends to engage Mining Developers cum Operators (MDOs) in coal mines, through open global tenders.

Through this, the ministry aims to ramp up domestic coal production and a subsequent reduction in import dependency.

The contract period of engagement would be for 25 years or for the life of the mine — whichever is less.

“The state-owned coal miner is tracking a total of 15 greenfield projects for implementation through MDOs with an investment component to the tune of around Rs.20600 crores largely pertaining to land acquisition, rehabilitation and resettlement issues, and in some cases on railway sidings,” the coal ministry said in a release on Tuesday.

Of the total 15 greenfield projects, state-owned Coal India (CIL) has issued letters of acceptance for nine coal projects to be pursued through the engagement of Mine Developer cum operator mode. (ANI)

Carlyle Group buys majority stake in beauty product brand VLCC

Private-equity firm Carlyle Group said on Tuesday it acquired a majority stake in Indian beauty care and wellness solutions provider VLCC. The equity for the transaction will come from funds managed and advised by entities affiliated with Carlyle Asia Partners, Carlyle said in a statement, without disclosing any financial terms.

VLCC founders Vandana Luthra and Mukesh Luthra will continue to hold a significant stake in the company, Carlyle said, without sharing further details.

Founded in 1989, the skin care and beauty product brand has a network of 210 retail clinics in 118 cities across 11 countries in South Asia, the Middle East and Africa. (Read More)

Prabhudas Lilladher viewpoint on India Strategy: We continue to believe that structurally story in India is intact

Amnish Aggarwal – head of research, Prabhudas Lilladher Pvt Ltd: Indian markets are currently undergoing uncertainty as a mix of global headwinds and subdued domestic demand are dragging otherwise strong fundamentals. Although we might see lesser rate hikes, stability and hopes of reduction seem farfetched as of now given inflation and employment data in US. Covid scare in China and some developed countries and its impact on supply chain needs to be watched out for in the coming quarter, although India seems well placed as of now. We have seen meaningful correction in commodity prices of Crude, Metals, Palmoil and various Agri commodities, expect trends to remain volatile.

While cooling off inflation and good crop prospects are positive, however demand trends have been divergent so far with tepid demand in 3Q in discretionary segments. India seems to be in a sweet spot led by strong domestic demand base, large agriculture production for food grains and aggressive infra spends by GOI. Strong balance sheets of banks, revival in credit growth and 36% higher capex announcements by companies YTD are positives. We expect higher spends on Rural, Agri credit and bottom-of-pyramid sections in run upto 2024 elections which should help revive demand.

We continue to believe that structurally story in India is intact and believe that Defence, Capex Recovery, Credit Growth revival, Rural demand and Healthcare services are key investing themes for 2023. The confluence of investment in Public Infra (Rs1400bn), PLI (Rs220bn), Defense, Digitisation and Data Centres will create big growth opportunity in coming years. However, it does not imply that structural themes of IT services, China+1 supply chain realignment in Pharma, Chemicals, Textiles and domestic demand etc will fizzle out. However, we expect near term volatility and back ended returns in 2023.

NIFTY target at 20820: We estimate NIFTY EPS at 848.5, 968.6 and 1088.8 for FY23/24/25. This shows a growth of 11.2/14.2/12.4% for FY23/24/25. Our estimates are lower by 3.9% and 4.4% than consensus EPS estimates. NIFTY is currently trading at 19x one year forward PE which is 8.2% discount to 10-year average of 20.7. Base case: we value NIFTY at 5% discount to last 10-year average PE of 20.7x on Dec24 EPS of Rs1059, and arrive at Dec23 NIFTY target of 20820 (21035 earlier). Bull Case: we value Nifty at 5% premium to 10-year average PE (20.7x) and assign a target of 23012. (23138 earlier). Bear Case – we value NIFTY at 20% discount to 10-year average and arrive at a target of 17533 (16828 Earlier).

Indices tank on Tuesday as Sensex sheds 550 pts and Nifty 150 pts with most sectors trading lower

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Covid-19: India reports 121 fresh coronavirus infections, 1 death in 24 hours

A total of 121 new coronavirus infections and one death were reported in 24 hours. The number of active cases came down to 2,319, according to Union health ministry data. The total number of Covid-19 cases now stands at 4.46 crore (4,46,80,215).

The death toll increased to 5,30,722 with one death reported from Delhi in the last 24 hours. The daily positivity rate was recorded at 0.07%, while the weekly positivity rate stood at 0.11%. (Read More)

Ghodawat Consumer buys packaged foods brand To Be Honest

Ghodawat Consumer Ltd., the consumer goods arm of Sanjay Ghodawat Group that retails home and personal care products, staples, and snacks, has acquired packaged foods brand, To Be Honest, to strengthen its premium packaged goods portfolio.

To Be Honest offers a range of vegetable and fruit snacks, including okra, ripe jackfruit, beetroot, mixed sweet potato, chickpeas and tomato chips. It was founded by IIT and IIM alumni Mayank Gupta, Ritika Agrawal and Anuj Ghanghoria in 2017. (Read More)

IT index comes under pressure in today’s trading as it sheds more than a percent with all stocks in red 

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India Considers Lifting Rice Export Curbs as Supply Improves

India, the world’s biggest rice exporter, is likely to lift restrictions on grain shipments in a move that would mark a further easing of a global wave of food protectionism after Russia’s invasion of Ukraine.

Authorities are actively considering removing curbs on some rice exports as domestic prices are stable, according to a person familiar with the matter. Government stockpiles are adequate to meet the needs of welfare programs, said the person, who asked not to be identified as the information is private.

India accounts for about 40% of the global rice trade. Any relaxation of the export curbs will likely cool benchmark prices in Asia, which are trading near the highest since mid-2021. The move is being discussed as concerns over food inflation have eased. Global food costs ended 2022 roughly where they started despite a year of disruptions from the war in Ukraine and extreme weather.

A spokesperson for the food and commerce ministries declined to comment. (Bloomberg)

Oil slips on concerns higher interest rates to crimp demand

Oil edged lower on Tuesday on expectations that further interest rate hikes in the United States, the world’s biggest oil user, will slow economic growth and limit fuel demand.

Brent futures for March delivery fell 43 cents to $79.22 a barrel, a 0.5% drop, by 0522 GMT. U.S. West Texas Intermediate crude fell 36 cents, or 0.5%, to $74.27 per barrel.

Both benchmarks climbed 1% on Monday, after China, the world’s biggest oil importer and second-largest consumer, opened its borders over the weekend for the first time in three years.

Two United States Federal Reserve officials this week expected the Fed policy rate – now at 4.25% to 4.5% – to need to rise to a 5% to 5.25% range to bring higher inflation rates under control. (Reuters)

Tata Motors shines in today trading; jumps 6% 

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Rupee gains 18 paise to 82.17 against US dollar

The rupee rose 18 paise to 82.17 against the US dollar in early trade on Tuesday on easing crude oil prices.

Forex traders said sustained foreign fund outflows and a weak trend in domestic equities weighed on investor sentiments and restricted the appreciation bias.

At the interbank foreign exchange, the domestic unit opened at 82.20 against the dollar, then gained ground to touch 82.17, registering a rise of 18 paise over its previous close.

On Monday, the rupee settled at 82.35 against the US dollar.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.21 per cent to 103.21.

Brent crude futures, the global oil benchmark, fell 0.49 per cent to USD 79.26 per barrel. (PTI)

Cyient’s subsidiary files for IPO, to have fresh issue of ₹740 crore

Cyient Limited on Tuesday informed that Cyient DLM Limited, a subsidiary of the company, has filed its draft red herring prospectus dated January 9, 2023 with the capital market regulator Securities and Exchange Board of India (SEBI) in relation to its proposed Initial Public Offering (IPO) for listing on BSE Limited (BSE) and National Stock Exchange of India Limited (NSE).

The proposed listing of Cyient DLM on the Stock Exchanges will comprise an IPO in the form of a fresh issue of new equity shares by Cyient DLM for an amount of up to ₹740 crore. (Read More)

PSU Bank index sheds more than 1.5% in early trading with all stocks in red

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Piyush Goyal discusses investment opportunities, bilateral trade relations with US executives, industry leaders in NY

Commerce and Industry Minister Piyush Goyal met with chief executives of leading global corporations as well as industry stakeholders here and discussed investment opportunities in India and areas to further strengthen the bilateral trade partnership with the US.

Goyal, who is in the US on an official visit, held a series of meetings with the CEOs of investment and financial giants on Monday.

Following a meeting with smart and sustainable buildings solutions provider Johnson Controls Chairman and CEO George Oliver, Goyal tweeted that he “exchanged views on enhancing company’s role in decarbonisation & developing sustainable buildings in India.”

They also discussed developing security products through Research and Development, the Internet of Things and Artificial Intelligence. (PTI)

Tata Consultancy Services stock sheds 2% as it missed its quarterly profit estimates; drags the IT index

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Tata Group close to taking over iPhone maker’s plant near Bengaluru

Tata Group is close to taking over a major plant in southern India in a deal that would give the country its first homegrown iPhone maker. The airline-to-software conglomerate has been in talks with the factory’s owner, Taiwan’s Wistron Corp., for months, and is looking to complete the purchase by the end of March, according to two people familiar with the process. The two firms discussed various potential tieups but talks have now centered on Tata taking a majority of a joint venture, the people said. Tata is set to oversee the main manufacturing operation, with support from Wistron, the people said, asking not to be named because the plans aren’t public. (Read More)

Indices opened flat but quickly moved to red as IT stocks drag, Sensex down 200 pts and Nifty 50 pts

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Reliance Securities Stock in Focus for Today: Wipro

STOCK IN FOCUS

Wipro (CMP 392): In view of decent deal wins and attractive valuation, we have a BUY recommendation with a target price of Rs455, valuing the stock at a P/E multiple of 18.5x FY24E earnings.

Intraday Picks

POWERGRID (PREVIOUS CLOSE: 209) BUY

For today’s trade, long position can be initiated in the range of Rs205-

207 for the target of Rs214 with a strict stop loss of Rs203.

ICICIBANK (PREVIOUS CLOSE: 873) BUY

For today’s trade, long position can be initiated in the range of Rs865-

870 for the target of Rs889 with a strict stop loss of Rs858.

LAURUSLABS (PREVIOUS CLOSE: 379) BUY

For today’s trade, long position can be initiated in the range of Rs374-

377 for the target of Rs388 with a strict stop loss of Rs371.

Sensex preopens flat on Monday; TCS, HDFC, Paytm in focus in today’s session

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Geojit Financial Services: If the CPI data of Wednesday confirms the declining trend in inflation, the market will get ahead of the Fed and will start pricing in a terminal rate below 5% and possible rate cuts by end 2023

Dr V K Vijayakumar, chief investment strategist at Geojit Financial Services: After the positive market news of last Friday the market would be keenly watching the Powell Speech today and the CPI data to be released tomorrow. Powell is unlikely to depart from the Fed’s hawkish stance but if the CPI data of Wednesday confirms the declining trend in inflation, the market will get ahead of the Fed and will start pricing in a terminal rate below 5% and possible rate cuts by end 2023. On the other hand, if inflation continues to remain high, there can be a sell-off in the market discounting higher rates and a hard landing for the US economy. So, investors may wait for these crucial inputs before taking a call on near-term market trends. TCS results indicate continuing growth for the IT industry with slightly weakening deal wins. Results of Infy and HCL Tech due this week will throw more light on the short-term prospects of the industry.

Stocks to Watch: TCS, HDFC, ONGC, JSW Steel, Paytm, Tata Motors, Sona BLW Precision Forgings, PVR, IDBI Bank, and Bandhan Bank

Excel Realty, Shradha Infraprojects, and GI Engineering Solutions will be among the stocks in focus as they declare their December quarter earnings today. (Read More)

Sah Polymers IPO: Latest GMP as all eyes on shares listing after allotment

The finalisation of the basis of share allotment of Sah Polymers IPO is done and if allotted, the shares will get credited to the demat accounts on Wednesday, January 11, 2023. Now, all eyes are on the listing of the company’s shares that is likely to debut this week.

The company’s shares are expected to list on the leading stock exchanges BSE and NSE this week on Thursday, January 12, 2023. According to market observers, Sah Polymers shares are commanding a premium of ₹7 in the grey market today. (Read More)

Gold jumps ₹733; silver zooms ₹1,012

Gold price in the national capital jumped ₹733 to ₹56,380 per 10 grams on Monday amid a rally in the precious metal prices in the overseas market, according to HDFC Securities.

The yellow metal had touched ₹55,647 per 10 grams in the previous trade.

Silver also zoomed ₹1,102 to ₹69,834 per kilogram on Monday from ₹68,822 per kg in the previous trade.

“Comex Gold price traded higher in early Asian hours on Monday supported by weaker US dollar. Gold prices bullish trend will likely to continue for the day,” said an analyst at HDFC Securities.

In the overseas market, gold was trading in green at USD 1,875 per ounce and silver was up at USD 23.92 per ounce. (PTI)

Paid subscriptions plateau for OTTs after the covid-led spike in viewership

Paid subscription growth has plateaued for over- the-top streaming platforms since the covid-19 lockdown-led spike in user base, said industry executives.

While the menace of piracy is impacting returns, the shift towards bundled offering from individual OTT subscriptions by a section of users, have also hit the average revenue per user (Arpu). Besides penetration of OTTs among the urban elite has reached a saturation point and the platforms are yet to devise a strategy to woo the lower-end of the target audience in a significant way, they added. (Read More)

Amul MD Sodhi ousted, COO Mehta logs in

RS. Sodhi has stepped down as the managing director of India’s largest dairy cooperative, Gujarat Cooperative Milk Marketing Federation Ltd, which owns the Amul brand, after serving for over 40 years. Jayen Mehta was named as interim managing director on Monday.

Sodhi was terminated with immediate effect after a board meeting on 9 January, according to a notice issued at a meeting of the company’s board. A copy of the order was reviewed by Mint.

“It is true. I have resigned. My contract expired two years ago. I was on extension and I have been telling the board I want to pursue other things. I’m also president of the Indian Dairy Association. The board has now agreed,” Sodhi told Mint on Monday evening. (Read More)

Banks chase deposits with campaigns, increased rates

Waning depositor interest and soaring credit demand are forcing banks to go all-out to attract deposits, even though they are forced to shell out more in interest.

State-owned Indian Bank on 6 January held an early-morning campaign at Mumbai’s Marine Drive, where about 200 employees walked the promenade holding placards of various deposit schemes. A bank employee said Indian Bank was able to open six to seven new savings accounts during the campaign.

“We got quite a good response, in fact it was better than we had anticipated,” the employee said.  (Read More)

Buy or sell: Vaishali Parekh of Prabhudas Lilladher recommends these 2 stocks to buy today

Vaishali Parekh of Prabhudas Lilladher has recommended two stocks to buy today which are Canara Bank and Hindustan Unilever Ltd (HUL).

Canara Bank: BUY CANARA BANK at ₹326, stop loss ₹320, target ₹338

HUL: BUY HIND UNILVR at ₹2,624, stop loss ₹2,584, target ₹2,708 (Read More)

NCLT rejects Torrent Investments’ plea to halt Reliance Cap CoC’s voting for second auction

The National Company Law Tribunal (NCLT) on Monday rejected a plea by Torrent Investments — one of the bidders for the Anil Ambani-promoted Reliance Capital — that sought to halt the Committee of Creditors’ voting to hold a second round of auction.

The NCLT, comprising justice PN Deshmukh and Shyam Babu Gautam, declined to grant a stay on Torrent Investments’ plea, seeking to stop the Reliance Capital CoC’s voting on the second round of auction.

The tribunal has kept the matter for hearing on January 12.

IndusInd International Holdings (Hinduja), represented by Harish Salve and Abhishek Manu Singhvi, also pleaded to be a party in the matter.

Ravi Kadam represented the administrator, while Vikram Nankani appeared for the Torrent Group.

Torrent Investments and Hinduja Group company IndusInd International Holdings are in the fray for Reliance Capital. (PTI)

China Sees Over 250,000 Arrivals on Day One of Border Reopening

China saw about a quarter of a million travelers enter the country on its first day of reopening, though the figure remains a fraction of pre-pandemic flows.

There were 251,045 inbound passenger trips on Sunday, the official Xinhua News agency reported, citing customs data. That compares with a daily average of about 945,300 arrivals in the first quarter of 2019, according to National Immigration Administration data.

The end of quarantine for all arrivals on Sunday marked the end of Covid Zero and China’s long-awaited reopening with the world after three years of isolation. While it’s sparked a flurry of interest among diaspora keen to reunite with loved ones, expensive air fares and still-tight flight capacity mean inbound travel remains difficult for many. (Bloomberg)

Future Lifestyle Fashion debt reduced to ₹1,827.9 cr; total default at ₹1,465.7 cr

Debt-ridden Future Lifestyle Fashion Ltd (FLFL) on Monday said its total outstanding debt is reduced to ₹1,827.82 crore as of December 31, 2022, while its total default stood at ₹1,465.67 crore.

FLFL’s default of ₹1,465.67 crore “comprised of the persisting default” of ₹436.01 crore for the September 2022 quarter, the company said in a regulatory filing.

Its total amount of outstanding loans includes the “Listed Non-Convertible Debentures (NCDs) of ₹350 crore” and deferred interest on NCDs of ₹42.98 crore, it added.

“There is a reduction in the total outstanding financial indebtedness of the company from ₹2,008.44 crores as of June 30, 2022, to ₹1,827.82 crore as of December 31, 2022, on account of the repayments of the debt by the Company,” it said.

FLFL’s lenders implemented One Time Restructuring (OTR) on April 30, 2021. (PTI)

India asks utilities to import 6% of their coal for nine months

India’s power ministry has asked utilities to import 6% of their coal requirement until September, according to a letter seen by Reuters, warning that domestic supplies could be curtailed if import targets are not met. Coal accounts for more than 70% of India’s power generation, with coal-fired plants accounting for more than three-quarters of India’s use of the polluting fuel.

The estimated domestic coal supply of 392 million tonnes during the six months to the end of September is expected to fall short of demand by 24 million tonnes, according to the letter sent to heads of energy departments of states and managing directors of all utilities. (Read More)

TCS profit rises 11% but misses estimates

Tata Consultancy Services Ltd (TCS) on Monday reported a lower-than-expected 11% increase in fiscal third-quarter profit as customers tightened spending amid mounting concern about a worldwide economic recession. Net profit rose to ₹10,846 crore in the quarter ended 31 December from ₹9,769 crore a year earlier, the company said in a statement. Analysts, on average, expected the company’s quarterly profit to be ₹11,000 crore. 

Rupee revenue for the third quarter of the current fiscal, however, grew 19.1% to ₹58,229 crore from ₹48,885 crore, led by growth in cloud services, cybersecurity, consulting services and enterprise application services during the quarter. 

The company’s constant currency revenue (after removing the effects of currency fluctuations) growth slowed to 13.5% from 15.4% during the same period last year. (Read More)

Stocks end up mixed on Wall Street on Monday after early gains fade

U.S. stocks were mixed Monday at the start of a week with a few events that could shake markets, including updates on inflation and the health of corporate profits.

The S&P 500 dipped 0.1% after surrendering an early gain of 1.4% in its first trading after closing out its first winning week in the last five. The Dow Jones Industrial Average dipped nearly 113 points, or 0.3%, while the Nasdaq composite gained 0.6%.

More stocks rose than fell, and Wall Street’s largely positive start to 2023 has come on hopes the Federal Reserve could ease up on its economy-shaking hikes to interest rates as inflation cools. Such rate increases have already slowed parts of the economy sharply, and the fear is more big hikes could cause a painful recession.

Treasury yields fell further Monday as traders adjust bets for what the Fed will do. They dropped Friday after data showed workers are winning weaker raises than in earlier months. While that’s discouraging for workers whose pay is still failing to keep up with rising bills, it could ultimately mean less upward pressure on inflation. (AP)