Consumer inflation in the US slipped in December to the lowest level in over a year, rising 6.5% from a year ago. Retail inflation in India also cooled to a one-year low in December, remaining below the RBI’s upper tolerance limit of 6% for the second straight month.
Indices continue in their downward trajectory as Sensex is down 100 pts and Nifty around 25 pts
Ola lays off employees in ‘restructuring exercise’
Bengaluru-based cab aggregator Ola Cabs has laid off employees from some of its verticals as part of a “restructuring exercise”. The company did not disclose the number of employees affected following the move.
“We regularly conduct restructuring exercises to improve efficiencies, and there are roles which are now redundant. We will continue making new hires in engineering and design including senior talent in our key priority areas,” an Ola spokesperson said. (Read More)
Vodafone to cut hundreds of jobs in cost-saving measures: Report
Vodafone Group Plc is planning to cut hundreds of jobs cuts in cost-saving measures, Financial Times has reported citing people briefed on the discussions on 13 January. The report follows Vodafone’s November announcement of cost-saving measures worth 1 billion euros ($1.08 billion) in the wake of a deteriorating market outlook.
Since then, the company’s Chief Executive Officer Nick Read has stepped down, a tenure during which the British telecom group’s share price nearly halved, as the board expressed its unhappiness with the progress under him. (Read More)
Metal index continues to be strong amidst a dull market; almost all stocks in green
Mukul Agrawal buys stake in Suryoday Small Finance Bank
Ace investor of the Indian share market is known for investing in those stocks that tend to generate an alpha return in a quick time. For those retail investors, who scan Mukul Agrawal’s portfolio for value picks, there is a piece of good news for them. Ace investor Mukul Agrawal’s name has appeared in the shareholding date of Suryoday Small Finance Bank in the recently ended December 2022 quarter.
As per the shareholding pattern of Suryoday Small Finance Bank for October to December 2022 quarter, Mukul Agrawal is shown holding 2 lakh shares of the small finance bank, which is 1.88 per cent of the total paid-up capital of the private lender. However, in July to September 2022 quarter, Mukul Agrawal’s name is missing from the list of individual shareholders of the small finance bank. This means ace investor bought fresh shares of Suryoday Small Finance Bank in the third quarter of the current fiscal. (Read More)
L&T struggles in today’s trading as it sheds a per cent
Amazon starts layoffs in India: Company to hand pink slips to over 1,000 employees
As Amazon starts its second round of layoffs, it is expected that over 1000 employees in India will be handed the pink slip, as per a TOI report. The layoffs are likely to happen across various departments, including tech, human resources, and others likely to be handed pink slips.
In last week’s blog post, Amazon CEO Andy Jassy said that over 18,000 employees globally will be impacted by layoffs and the company will start the communication process on 18 January. (Read More)
Recent IPOs that mutual funds participated in
In December, Mutual Funds (MFs) deployed ₹147 bn and alongside foreign institutional investors (FIIs) sold ₹63 bn in the Indian secondary market, highlighted data analysed by domestic brokerage and research firm Edelweiss.
Funds participated in most of the initial public offerings (IPOs) and the December end holding value is highlighted alongside. MFs participated in Kfin Technologies ( ₹4.4 bn), Sula Vineyards ( ₹1.5 bn), Landmark Cars ( ₹1.2 bn), Elin Electronics ( ₹1 bn) & Radiant Cash Management ( ₹0.2 bn), as per the data by the brokerage. (Read More)
China imports, exports plunge in December: customs
China’s exports in December fell at their fastest pace since 2020, according to official data Friday, owing to a drop in global demand and after health restrictions hit economic activity at home.
The world’s second-largest economy is still reeling from the effects of years of its zero-Covid policy, which hammered businesses and supply chains, and dampened consumption.
China began lifting most of the hardline measures at the beginning of last month, but the country has since seen a massive spike in Covid-19 infections.
Exports fell 9.9 percent year-on-year to $30.6 billion, China customs said, their second consecutive month of decline and the biggest fall since the early days of the pandemic in 2020. That followed a fall of 8.7 percent in November.
Exports had been the main driver of China’s economy since 2020, when the global shutdown led to strong demand for Chinese goods such as medical products, and then as the rest of the world reopened.
The uncertainties linked to Covid and the economic slowdown in China are having an impact on the need for foreign products. (AFP)
Infosys shares rise on better-than-expected Q3: Buy, sell or hold the IT stock?
Shares of Infosys rose marginally to ₹1,489 apiece on the BSE in Friday’s opening deals after the IT company reported a better-than-expected over 13% rise in profit in the December quarter and raised its annual sales forecast on a strong deal pipeline even as it warned of “constraints” in certain verticals amid slowing global economy. CEO Salil Parekh noted that Q3 witnessed ‘exceptionally strong growth’ but acknowledged that signs around are showing a slowing global economy.
“Despite healthy deal wins, Infosys’ upward revision in FY23 growth guidance of 16-16.5% implies a soft 4Q. Slowing net hiring also reflects rising caution. We raise our FY23 -25 estimates by up to 2% and expect Infosys to deliver 13% EPS CAGR over FY23-25. Infosys strong execution favorably positions it to gain market share, strong deal bookings and consistent execution provide comfort amidst an uncertain macro. Maintain Buy with target price of ₹1,770/share,” said Jefferies in a note. (Read More)
PSU Bank remains marginally in green when most sectors are trading lower
Cement sector outlook positive, Ultratech among top 3 picks by Motilal Oswal
Cement manufacturing companies are expected to do well for next few years on the back of better demand prospects led by infrastructure and housing sectors, heightened industry consolidation, and regulatory changes in the allotment of limestone blocks.
Average price of a cement 50kg bag has gone up 3% on a quarter-on-quarter basis in the third quarter of FY23, Motilal Oswal said in a recent note. The brokerage estimates a 10% (YoY) growth in volumes in the December quarter and a three-year CAGR at 5.4%, aided by strong infrastructure and real estate demand as well as the low base effect of last year. In third quarter of FY22, sales volumes dipped 2.6% (YoY).
Motial Oswal has picked Ultratech Cement as its top pick in the largecap space and Dalmia Bharat and JK Cement from the midcap space. (Read More)
Tata Steel shines in an otherwise dull trading; leads the Metal index rally
Geojit Financial Services on today’s market: DIIs now have fundamental support coming from reduced CPI inflation and rising IIP numbers
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: There are significant near-term positives for equity markets. Globally, the decline in US inflation to 6.5% and the consequent decline in US 10-year bond yields by 10% to 3.46% are supportive of equity markets. The dollar index dipping below 103 is positive for emerging market equity. Therefore, the sustained selling by FIIs in India for the 15th trading session is likely to abate, going forward. Yesterday, FII selling ( ₹1662 crores) was eclipsed by DII buying ( ₹2127 crores). DIIs now have fundamental support coming from reduced CPI inflation ( 5.72% in December) and rising IIP numbers (7.1% in November). RBI can now afford to soften rate hikes.
The emerging interest rate scenario is favourable for banks and NBFCs. The impressive Q3 results from IT majors will keep the IT segment resilient.
IT index falls at the start on Friday with almost all stocks trading lower
Godrej Properties acquires 60-acres land parcel in Chennai
Godrej Properties Ltd., one of India’s leading real estate developers, today announced that it has purchased 60 acres on an outright basis in the fast-developing micro market of Oragadam Junction, Chennai.
Spread across ~ 60 acres, the proposed project is estimated to have a developable potential of approximately 1.6 million square of saleable area, comprising primarily of residential plotted development.
The site is strategically located in between Grand South Trunk road (GST road) and NH-4, just off Oragadam Junction (on the 6-lane SH-48) offering access to other parts of the city via Chennai Bypass Road, Chennai Tiruvallur High Road and Red Hills Road. (Read More)
Indices struggle at start as Sensex is down 200 pts and Nifty 30 pts
IMF chief expects to keep 2023 global growth forecast steady at about 2.7%
The International Monetary Fund is not likely to downgrade its forecast for 2.7% growth in 2023, the head of the global lender said on Thursday, noting that a feared oil price spike had failed to materialize and labor markets remained strong.
IMF Managing Director Kristalina Georgieva said 2023 would be another “tough year” for the global economy, and inflation remained stubborn, but she did not expect another year of successive downgrades like those seen last year, barring unexpected developments.
The IMF in October forecast that global growth would slow to 2.7% in 2023 after falling from 6.0% in 2021 to 3.2% in 2022. It had previously forecast growth of 2.9% for 2023, but Georgieva said she did not expect further cuts to the outlook.
“Growth continues to slow down in 2023,” she told reporters at the IMF’s headquarters in Washington. “The more positive piece of the picture is in the resilience of labor markets. As long as people are employed, even if prices are high, people spend … and that has helped the performance.” (Reuters)
Reliance Securities Stock in Focus Today: Engineers India
STOCK IN FOCUS
Engineers India (CMP 84): Considering its asset-light business model, strong clientele base, foray into newer segments and healthy execution track record, we have our BUY rating on ENGR, with a SOTP-based Target Price of Rs100.
PEL (PREVIOUS CLOSE: 837) BUY
For today’s trade, long position can be initiated in the range of Rs830-
838 for the target of Rs858 with a strict stop loss of Rs822.
TECHM (PREVIOUS CLOSE: 1,002) BUY
For today’s trade, long position can be initiated in the range of Rs995-
1000 for the target of Rs1025 with a strict stop loss of Rs987.
CROMPTON (PREVIOUS CLOSE: 338) BUY
For today’s trade, long position can be initiated in the range of Rs335-
338 for the target of Rs350 with a strict stop loss of Rs331.
Sensex preopens in the flat zone; Infosys, HCL Tech, Shriram Finance, Cyient in focus in today’s trading
Porinju Veliyath buys stake in this below ₹100 small-cap stock in Q3
Czar of small-cap stocks’ has added Max India share in his portfolio during October to December 2022 quarter. As per the shareholding pattern of Max India for recently ended December 2022 quarter, Porinju Veliyath’s name has appeared in the list of individual shareholders of the company. The shareholding data of the company shows that Porinju Veliyath holds 1.05 per cent stake in the company.
According to shareholding pattern of Max India for December 2022 quarter, Porinju Veliyath holds 4.50 lakh company shares, which is 1.05 per cent of total paid up capital of the company. However, in July to September 2022 quarter, Porinju Veliyath name was not in the list of individual shareholders of the company. This means, market magnet bought fresh stake in the company during October to December 2022 quarter. (Read More)
Mutual funds with active ELSS allowed to launch passive schemes. What it means for investors
The Securities and Exchange Board of India (Sebi) said in a recent circular that mutual funds (MFs) in India can launch a passive equity-linked savings scheme (ELSS) but only after the closure of the existing actively-managed ELSS fund for the subscription.
“…the passive ELSS are much cheaper with a lower expense ratio as compared to the active ones. Along with the tax benefit, a lower expense ratio is something wherein investors will get directly benefited, and they will be able to save more money. This also opens up opportunities for the mutual fund industry to have more inflows of funds and more savings from a consumer standpoint,” said Mahesh Shukla CEO & Founder PayMe. (Read More)
Apple’s Tim Cook takes rare CEO pay cut after pushback
Apple Inc. is cutting Chief Executive Officer Tim Cook’s compensation by more than 40% to $49 million in 2023, citing investor guidance and a request from Cook himself to adjust his pay.
As part of the changes, the percentage of stock units awarded to Cook and tied to Apple’s performance will increase to 75% in 2023 from 50%, as well as in future years, the company said in a regulatory filing Thursday. For 2022, Cook received compensation of $99.4 million, including $3 million in base salary, about $83 million in stock awards and a bonus. That was up slightly from 2021, when his total pay package was $98.7 million. (Read More)
Stocks to Watch: Infosys, HCL Tech, PVR, Inox, Cyient, Shriram Finance, Zee Entertainment, L&T Technology Services, Allcargo Logistics, Coal India, and Anand Rathi Wealth
Wipro, L&T Finance Holdings, Just Dial, Aditya Birla Money, Ganesh Housing Corporation, and The Anup Engineering will be among the stocks in focus as they declare their December quarter earnings today. (Read More)
Rupee seen higher as data boosts smaller Fed rate-hike bets
The Indian rupee is expected to open higher against the dollar on Friday after the U.S. inflation reading reinforced expectations that the Federal Reserve would opt for a smaller rate hike at the upcoming meeting. The rupee was likely to be around 81.20-81.30 per dollar in early trades, compared to 81.55 in the previous session.
The rupee, like its Asian peers, will do very well at the opening, a trader at a Mumbai-based bank said.
It is surprising that the dollar fell this much post the U.S. inflation considering that the market had anyway expected a soft reading, the trader added.
The dollar index tumbled 0.9% to touch its lowest since June after data showed the U.S. consumer price index (CPI) fell for the first time in more than 2-1/2 years in December.
The rupee is poised to test its next resistance level of 81.20, and we reckon it will have a difficult time breaching it, the trader said. (Reuters)
Anand Rathi Wealth Q3 PAT up 35 pc to ₹43 cr
Leading non-bank wealth solutions firm Anand Rathi Wealth Ltd on Thursday reported a 35 per cent jump in consolidated profit after tax (PAT) to ₹43.2 crore for the three months ended December 2022.
In comparison, the company had posted a PAT of ₹32 crore in the year-ago period, Anand Rathi Wealth said in a statement.
The company’s total revenues rose 29 per cent to ₹140.2 crore in the quarter under review, from ₹108.7 crore in the year-ago period.
For the nine months ended December 2022, the company reported a consolidated net profit of ₹126 crore, an increase of 37 per cent from a year earlier, while total revenue climbed 32 per cent to ₹412 crore.
“Indian HNIs have begun to shift from physical assets to financial assets as a means of wealth creation. This shift has led to a significant momentum in addition of number of client households. (PTI)
Wipro Q3 preview: Revenue likely to post double-digit growth YoY, EBITDA seen flat. Key factors here
Wipro’s Q3 financial result is the next major thing to watch in the IT sector. The Azim Premji-backed company will be announcing its December 2022 quarterly result today (January 13), and its stock will be in focus accordingly. In Q3FY23, Wipro’s EBIT margins are expected to expand, however, wage hike shocks still pertain which is likely to limit the upside. On the other hand, the company is expected to continue its deal momentum. Among key factors to look out for will be revenue guidance, management commentary, attrition, pricing, and others.
Ahead of Q3 earnings, Wipro share price closed flat with a positive bias at ₹394.45 apiece on January 12 compared to the previous day’s closing of ₹393.95 apiece. (Read More)
HCL Tech’s PAT up 19% in December quarter
HCL Tech posted a 19% rise in net profit in the December quarter to ₹4,096 crore, up from ₹3,442 crore in the year ago, growing at a faster clip than peers Infosys and TCS. HCL also announced a dividend of ₹10 a share. Q3 FY22 is the 80th straight quarter for the tech major, announcing a dividend payout.
HCL, however, trimmed the upper end of services revenues and EBIT margin guidance by 50 basis points, each. EBIT is earnings before interest and taxes. The company’s revenue guidance for FY23 now stands at 13.5-14% against the earlier 13.5-14.5%. Its services revenue growth for FY23 is expected to be at 16-16.5%, while the EBIT margin guidance narrowed to 18-18.5%. In contrast, Infosys raised its revenue growth guidance for FY23 to 16-16.5% from 15-16% in its Q3 financial review note published on Thursday. (Read More)
India iPhone breakthrough masks struggle to boost manufacturing
On paper, India’s chances of attracting global manufacturers look rosy. Apple Inc. began assembling its latest iPhone models in the South Asian nation in a significant break from its practice of reserving much of that for giant Chinese factories run by its main Taiwanese assemblers, a key win for Prime Minister Narendra Modi’s “Make in India” campaign.
But experts warn that lasting gains to improve a sluggish manufacturing sector are still a ways off for India, a country of 1.4 billion people. Modi’s Make in India campaign, which aims to increase exports and create jobs, hasn’t quite panned out. Manufacturing accounts for 14% of the economy, a figure that’s barely budged in decades. And despite India’s massive demographic dividend, unemployment remains stubbornly high. (Read More)
Apax Partners to sell its entire stake in Shriram Finance
Private equity major Apax Partners LLP is likely to sell its entire 4.63% stake in non-bank lender Shriram Finance in a block deal on Friday, a person aware of the development said. The deal is valued at approximately ₹2,250 crore and is being offered at a discount of about 6% to the current market price. Apax Partners, through unit Dynasty Acquisition, will sell up to 17.3 million shares in the publicly traded firm through the secondary market transaction, the person said. (Read More)
Infosys beats Street estimates on the back of eight-quarter-high deal wins
India’s second-largest information technology (IT) services company, Infosys, on Thursday, reported a 13.4% year-on-year rise in net profit for Q3FY23 to ₹6,586 crore, up from ₹5,809 crore, in turn raising its revenue growth guidance for this financial year (FY). The company upped its FY23 revenue growth guidance to 16-16.5% from the earlier forecast of 15-16%, beating analyst expectations of guidance remaining constant. Operating margin guidance for FY23 was retained at 21-22%.
The firm says it signed 32 large deals in the December quarter for a total of $3.3 billion, the highest in two years. (Read More)
Crypto firms are cutting more than 1,600 jobs already this year
Crypto companies are once again tightening their belts, as the bear market enters the second year and the industry suffers from major meltdowns that damage its outlook.
Coinbase Global Inc., Blockchain.com, and Genesis are among companies embarking on a new round of layoffs. The three firms, along with Huobi exchange, crypto bank Silvergate Capital Corp., Ethereum software firm ConsenSys, collectively are shredding more than 1,600 jobs in the first two weeks of 2023. In a letter to employees, Coinbase Chief Executive Officer Brian Armstrong said the industry could see further contagion, and that “in hindsight,” he should have cut deeper last year. (Read More)
Retail inflation eases to 1-year low in December
Retail inflation cooled to a one-year low in December, remaining below the Reserve Bank of India’s upper tolerance limit of 6% for the second straight month, thanks primarily to lower vegetable prices. Inflation based on the consumer price index (CPI) eased to 5.72% in December from 5.8% in November, data released by the ministry of statistics and programme implementation (MoSPI) on Thursday showed.
The overall decline in inflation has raised expectations that the Reserve Bank of India (RBI) may pause its monetary policy tightening, but economists pointed out that core inflation, which excludes food and fuel, stayed high at 6.1% in December. Besides, retail inflation is expected to rise in January as the favourable base effect wanes. (Read More)
Tata considers THESE countries for EV cell manufacturing plants
Tata group is considering setting up plants in India and Europe to produce battery cells for electric vehicles, the chief financial officer of its auto unit said in an interview to Reuters on Thursday.
India’s Tata Motors dominates the country’s EV market with total sales of 50,000 electric cars to date. The company has also outlined plans to launch 10 electric models by March 2026.
Tata is evaluating two production bases, the other one is in Europe, so that the battery cell needs of its luxury car unit Jaguar Land Rover – which has a manufacturing facility there – can also be met, Reuters reported. (Read More)
Wall Street ticks higher on Thursday as hot US inflation cools further
Wall Street closed higher Thursday after a report showed inflation slowed again last month, bolstering hopes the Federal Reserve may take it easier on the economy through smaller hikes to interest rates.
While the report on U.S. inflation was clearly encouraging, stocks had already rallied earlier this week in anticipation of exactly such data. The numbers were in line with forecasts on many points, and analysts warned investors not to get carried away by them.
The S&P 500 rose 13.56 points, or 0.3%, to 3,983.17. The Dow Jones Industrial Average rose 216.96 points, or 0.6%, to 34,189.97. The Nasdaq rose 69.43 points, or 0.6%, to 11,001.10
Small company stocks outpaced the broader market. The Russell 2000 rose, 32.01 points, or 1.7%, to 1,876.06. Every major index is on track for weekly gains.
The nation’s painfully high inflation has been at the center of Wall Street’s wild movements for more than a year. Recently, stocks have been rising and bond yields have been falling on hopes inflation’s cooldown from a summertime peak may get the Federal Reserve to ease off its barrage of rate hikes. Such increases can stifle inflation, but they do so by slowing the economy and risk causing a recession. They also hurt investment prices. (AP)
the App to get 14 days of unlimited access to Mint Premium absolutely free!