Stock Market LIVE: Indices to open on stable note; SGX Nifty in green
Global markets had a strong January on growing belief inflation is on a steady downswing, hopefully leading to less pressure on the economy and markets. The job market has remained remarkably resilient despite a slowing overall economy.
Back Stocks to Watch: Adani Group, Bajaj Finance, Vedanta, NTPC, Hinduja Global Solutions, NDTV, Samvardhana Motherson International, Kajaria Ceramics, Coal India, and Reliance Power
Bajaj Finserv, Tech Mahindra, BPCL, Gail India, Exide Industries, L&T, PNB, Inox Leisure will be among the stocks in focus as they declare their December quarter earnings today. (Read More)
Mint Long Story: The man behind a $50 billion Adani stocks sell-off
The antecedents and credentials of New York-heardquartered short-selling research firm Hindenburg, whose bearish take on the Adani group has set off a firestorm in Indian capital markets, prompting a $50 billion sell-off in equities, has piqued the curiosity of Indian investors.
While domestic observers may deride or praise Hindenburg, depending on their own views, what leaps out at you on perusal of the firm’s work is how prolific it is in churning out research reports. (Full Story)
LKP Securities – CANARA BANK – Q3 FY23 Result Update – BUY
LKP Securities says “Factoring near-term capital infusion, we expect the bank’s loan book to fatten cautiously at CAGR of ~20% over FY22-24E, led by RAM and corporate book growth. In our opinion, the bank’s credit cost shall normalise further by FY23E and estimate return ratio ROA/ROE of 1% and 17% in FY24E. We value the standalone entity with 0.7xFY24E BVPS ( ₹499) and arrive at a target price of ₹349. We recommend BUY with a potential upside of 20%.”
Vedanta Q3 net profit drops 41 pc on higher input cost, windfall tax
Vedanta Ltd on Friday reported a 40.8 per cent drop in consolidated net profit at ₹2,464 crore in the quarter ended December 31, 2022 on the back of higher input cost and windfall tax.
The company had posted its consolidated net profit at ₹4,164 crore in the year-ago period, Vedanta Ltd said in a filing to BSE.
However, the consolidated income of the company in the October-December period increased marginally by 0.4 per cent to ₹34,818 crore from ₹34,674 crore in the year-ago period.
The consolidated expenses of the company during the third quarter of FY23 increased to ₹31,327 crore from ₹26,777 crore in the corresponding quarter of previous fiscal.
There has been an impact of ₹333 crore due to introduction of windfall tax in July 2022.
In a conference call, Vedanta Group CFO Ajay Goel said, “If you look at Q2 over Q3 our PAT has increased by 15 per cent.” (PTI)
Adani Enterprises FPO: Subscription status on day 2 of the follow-on public offer
The follow-on public offer (FPO) of Adani group’s flagship company Adani Enterprises was on Friday subscribed just a per cent on the first day of the share sale as the Group stocks plunged after US short-seller Hindenburg Research said that it took a short position in certain securities of the group which the Group dismissed as ‘baseless’. The offer, which is priced at ₹3,112 to ₹3,276, will conclude on Tuesday, January 31, 2023.
Against an offer of 4.55 crore shares of Adani Enterprises Ltd, only 4.7 lakh were subscribed, according to information available from the BSE. Retail investors put in bids for close to 4 lakh shares against 2.29 crore shares reserved for them while qualified institutional buyers (QIBs) sought just 2,656 shares against 1.28 crore reserved for them. Non-institutional investors sought 60,456 shares against an offer of 96.16 lakh shares. (Read More)
Bajaj Finance logs highest-ever quarterly net profit at ₹2,973 crore
On the back of record loan sales, Bajaj Finance on Friday booked the highest-ever quarterly consolidated net profit of ₹2,973 crore for the December quarter, logging in an on-year 40 per cent growth.
The Pune-based non-banking lender said its core net interest income rose 28 per cent to ₹7,435 crore on-year during the reporting quarter, aided by a higher 28 per cent jump in the key profitability metric net interest income.
The company said it added 3.14 million new credit customers during the October-December quarter and 7.84 million so far this fiscal, making this the highest-ever for the non-banking lender focused on retail finance, taking its total customer franchise to 66.05 million, up 19 per cent from 55.36 million in December 2021.
This record disbursement had the company’s assets under management growing 27 per cent to ₹2,30,842 crore.
Asset quality improved considerably with both gross NPAs as well as net NPAs falling to 1.14 per cent and 0.41 per cent, respectively from 1.73 per cent and 0.78 per cent in December 2021. As a result, its loan losses and provisions declined steeply to ₹841 crore from ₹1,051 crore and it continues to maintain an additional provision of ₹1,000 crore. (PTI)
Electronics export from India to cross ₹1.28 lakh crore next fiscal: MoS IT
Electronics export from India is expected to cross ₹1.28 lakh crore in the next financial year, Minister of State for Electronics and IT Rajeev Chandrasekhar has said.
The minister, in an interview with PTI, said the government is now going to broaden and widen the electronics manufacturing ecosystem with a new production-linked incentive scheme for hearable-wearable, IT hardware and component makers.
“Electronics manufacturing as a whole, we see next year that we will at least do exports worth ₹1.28 lakh crore. I have already said that we will see mobile phone exports reaching ₹1 lakh crore in 2023-24,” Chandrasekhar said.
There has been a focus on mobile phones because it is the fastest-growing segment in electronics across the world, he added.
“Value addition in manufacturing is a function of scale. First, you need to hit the scale. The component industry is the one which does value addition. Components will not come if the scale of manufacturing is not there. The next stage of our PLI is to get components PLI, hearable-wearable PLI and the IT server PLI,” the minister said. (PTI)
Tech Mahindra Q3 preview: EBIT margins likely to improve; slower growth seen in BFSI, hi-tech
Tech Mahindra is set to announce its financial results for the third quarter of FY23 on Monday. Accordingly, the IT major’s stock will be in focus on exchanges. The Q3 of FY23 is likely to be a mixed bag with PAT seen to decline while revenue growth is likely to be in double-digit year-on-year. There are expectations of slower growth in segments like BFSI and hi-tech. Also, deal wins may be on lower levels than company’s expectations. However, EBIT margins are expected to improve in Q3.
Also, Tech Mahindra’s attrition rate and net addition of employee counts will be keenly watched. Its peers TCS and Wipro have reduced their workforce in Q3FY23, while Infosys and HCL Tech made lower additions on a quarter-on-quarter basis. (Read More)
A calculated attack on India’: Adani Group on Hindenburg allegations
Richest Indian Gautam Adani’s group on Sunday likened the damning allegations levied by short-seller Hindenburg Research to a “calculated attack” on India, its institutions and its growth story, saying the allegations are “nothing but a lie”. In a 413-page response, Adani Group said the report was driven by “an ulterior motive” to “create a false market” to allow the US firm to make financial gains.
“This is not merely an unwarranted attack on any specific company but a calculated attack on India, the independence, integrity and quality of Indian institutions, and the growth story and ambition of India,” it said. Adani Group, in its 413-page report, has also responded to all 88 questions raised by Hindenburg.
“This is rife with conflict of interest and intended only to create a false market in securities to enable Hindenburg, an admitted short seller, to book massive financial gain through wrongful means at the cost of countless investors,” Adani said in 413-page response late on Sunday. (Read More)
Wall Street adds more to its big January after strong week
A strong week for Wall Street closed out with modest gains Friday, sending the stock market to its highest level since early December.
The S&P 500 rose 0.2% to clinch its third winning week in the last four and was near its highest level since the summer, before fading at the end of the day. It’s rallied through January on growing belief inflation is on a steady downswing, hopefully leading to less pressure on the economy and markets.
The Dow Jones Industrial Average rose 28 points, or 0.1%, while the Nasdaq composite gained 0.9%.
Helping to lead the way was American Express, which jumped 10.5% despite reporting weaker profit and revenue for the latest quarter than expected. It gave a forecast for earnings through 2023 that topped Wall Street’s expectations and announced a planned increase to its dividend.
Another big gain for Tesla’s stock also supported the market. It rose 11% following its stronger-than-expected profit report for the end of 2022 released earlier in the week.
They helped offset a 6.4% loss for Intel following a jarring warning from the chipmaker. Not only did its revenue and earnings fall short of expectations last quarter, it also gave a forecast for revenue this quarter more than $2 billion below analysts’ expectations.
All told, the S&P 500 rose 10.13 points to 4,070.56. The Dow climbed 28.67 to 33,978.08, and the Nasdaq gained 109.30 to 11,621.71. (Reuters)
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