The government will release India’s GDP data for the October-December 2022 quarter (Q3FY23) today. The GDP growth rate moderated to 6.3% in the preceding quarter after a double-digit expansion in the Q1 of the current financial year.
Indices in the red-to-flat zone as Sensex is down 70 pts and Nifty 20 pts
Consumer Durables and Media indices shine, while Energy and Metal indices drag
Cloud Kitchen Operator to Run 150 Wendy’s Restaurants in India
Wendy’s Co. has struck a deal with cloud kitchen operator Rebel Foods Pvt to scale the fast food chain’s physical presence in India to 150 locations, betting on diners returning to public eateries as the pandemic ebbs.
Mumbai-based Rebel will become a master franchisee of the burger brand about two years after the companies signed a cloud kitchen deliveries-only deal. With the latest signing, the startup will help grow the chain through its digital expertise in delivery and automation, the companies said on Tuesday.
In the expanded relationship, Rebel will develop about 150 traditional restaurants over the next decade. This is in addition to their December 2020 agreement for Rebel to run 250 cloud kitchens in India, which prepare food for delivery only and don’t serve dine-in customers. Currently, Wendy’s is in 90 locations across 19 cities, with its three traditional restaurants operated by Rebel.
“India is a strategic, high-growth potential market for us,” said Abigail Pringle, president for international development at Wendy’s. (Read More)
Eight Adani Group shares trade in the green, Adani Ent up nearly 9%
Stocks of eight out of ten listed firms of the Adani Group were trading in the green on Tuesday, with the flagship Adani Enterprises rising nearly 9 per cent as the conglomerate said it plans to prepay or repay share-backed loans worth between $690 million and $790 million by end of March 2023.
The empire, whose business interests span from sea-ports to airports, edible oil and commodities, energy, and cement to data centres, has taken a drubbing on the bourses following the 24 January report by US-based short-seller Hindenburg Research labelling charges of stock manipulation and accounting fraud. (Read More)
Consumer Durable index shines as it jumps a per cent with almost all stocks trading higher
Credit growth may moderate but banking on deposits to aid performance
The Indian banking sector is on a strong footing in terms of credit growth, profitability, and asset quality. This is evident from its December quarter performance this year. Many analysts and industry experts expect the traction to continue, particularly on credit (loan) growth.
Latest data from the Reserve Bank of India (RBI) shows that the overall bank credit growth had been robust despite the increase in interest rates. The bank credit for the fortnight ending 10 February, grew by 16.1% year-on-year (y-o-y), predominantly led by retail credit demand including consumer durables. As per a report by CareEdge, other than the retail segment, the sustained growth in credit is also driven by strong growth in NBFCs and inflation-induced working capital requirement from sectors such as petroleum, coal products & nuclear fuels, and chemicals and chemical products. (Read More)
Oil Heads for Fourth Monthly Drop as Fed Angst Eclipses China
Oil headed for a fourth straight monthly drop as concerns about tighter monetary policy and swelling stockpiles in the US eclipsed optimism about rising demand in top importer China.
West Texas Intermediate edged higher toward $76 a barrel, but is still down almost 4% this month. Crude has been burdened in February as signs of sticky inflation in the US have spurred expectations the Federal Reserve will keep hiking. That’s aided the dollar, hurting commodities priced in the currency.
Oil prices have also been weighed down by rising US stockpiles, which are at the highest level since May 2021. As part of that increase, there have been builds in crude holdings at the key storage hub in Cushing, Oklahoma.
Crude has softened in 2023 despite China’s rapid reemergence from Covid Zero and a host of signs the nation’s energy consumption is picking up. Vitol Group said on Monday that global oil demand may hit a record later this year. Traders are also tracking Russian exports amid the war in Ukraine, with Moscow pledging to reduce output in March as western sanctions tighten. (Bloomberg)
Zee Entertainment shares rally over 8%
Shares of Zee Entertainment Enterprises Ltd (ZEEL) jumped over 8 per cent in morning trade on Tuesday after the National Stock Exchange said it would include the company back into the futures and options segment.
At the NSE, it rallied 8.11 per cent to ₹197.80.
The stock climbed 8 per cent to ₹197.75 on the BSE.
This comes after the National Company Law Appellate Tribunal (NCLAT) stayed insolvency proceeding against ZEEL on Friday.
The matter pertains to a default of ₹89 crore by Essel Group’s multisystem operator arm Siti Networks claimed by IndusInd Bank, for which ZEEL was a guarantor.
The NCLAT order is a major reprieve for ZEEL, which is merging with rival Culver Max Entertainment, formerly known as Sony Pictures Networks India.
In a circular on Monday, NSE said it has withdrawn its previous decision, whereby it had excluded ZEEL from the F&O segment. (PTI)
Metal Index tanks as it loses around 1.5% with many stocks trading in the red
Centre fixes retail prices of diabetes, high blood pressure, 74 other medicines
The government’s National Pharmaceutical Pricing Authority (NPPA) has fixed the retail prices of 74 medicines including diabetes, high blood pressure, etc.
NPPA has fixed the prices of drugs under the Drugs (Prices Control) Order 2013 based on the decision taken in the 109th meeting of the Authority held on 21 February.
As per the notification by the NPPA, the cost of one tablet of Dapagliflozin Sitagliptin and Metformin Hydrochloride (Extended-Release Tablet) has been fixed at ₹27.75. (Read More)
Air India CEO says merger with Vistara needs to go through regulatory approval process
Air India CEO Campbell Wilson has said that the integration of Air India and Vistara needs to go through a regulatory approval process.
During a virtual media interaction on Monday, Wilson talked about the proposed Air India and Vistara merger and the future plans for Air India.
He explained that there are three steps to that process, one is competition clearance, the second is the Directorate General of Civil Aviation’s (DGCA) perspective and the third is obviously the merger of the two companies.
“We are in the process of the first phase seeking clearance from the Competition Commission of India but in anticipation of this we are working together with some external parties to work on what are the areas of opportunity in an integrated business, what are the things that we need to focus on in the process of that integration and what would the end State look like once we have received clearance to actually embark on the integration process,” he said. (ANI)
Cipla stock sheds 2% and is one of the biggest laggards in Nifty 50
As LIC shares hover around record low, key stocks level to watch
Shares of Life Insurance Corporation of India (LIC) have remained under pressure, hovering around record low levels of ₹566 apiece on the BSE on concerns over exposure to Adani Group – which has remained under pressure since the January 24 report of US short seller Hindenburg accused it of manipulating stock prices and other corporate governance lapses.
“LIC stock is in bearish structure after breaking the major support of 600 levels. The momentum indicators like RSI, MACD and MAs are in negative zone and suggesting further weakness in the counter. The stock may touch the levels of 550 in coming trading sessions,” said Ravi Singh, Vice President and Head of Research, Share India. (Read More)
Divgi TorqTransfer Systems IPO: What GMP says about Nandan Nilekani-backed issue
The Nandan Nilekani-backed initial public offering (IPO) is going to open on 1st March 2023 i.e. tomorrow and it will remain open for bidders till 3rd March 2023. The auto component company has fixed Divgi TorqTransfer Systems IPO price band has been fixed at ₹560 to ₹590 per equity share. The public issue is proposed for listing on BSE and NSE and the tentative date for Divgi TorqTransfer Systems share listing is 14th March 2023.
Meanwhile ahead of Divgi TorqTransfer Systems IPO opening, grey market is dropping positive signals in regard to this public issue. As per the market observers, shares of Divgi TorqTransfer Systems Ltd are available at a premium of ₹60 per equity share in grey market today. (Read More)
Adani stocks: JPMorgan investment unit wipes its ESG portfolio clean of exposure
The asset management unit of JPMorgan Chase & Co. has wiped its ESG portfolios clean of their exposure to the Adani empire, as per an analysis of data compiled by Bloomberg,
The JPMorgan Global Emerging Markets Research Enhanced Index Equity ESG UCITS ETF offloaded the more than 70,000 shares in cement manufacturer ACC Ltd., exiting a stake it’s held since May 2021, according to a data review by Bloomberg that looked at movements following the January 24 publication of the Hindenburg report. (Read More)
Coal India struggles in today’s trading as it sheds 1.5% in early trading
Rupee rises 11 paise to 82.68 against US dollar
The rupee gained 11 paise to 82.68 against the US dollar in early trade on Tuesday as the American currency retreated from its elevated levels.
Forex traders said sustained foreign fund outflows weighed on the local unit and restricted the appreciation bias.
At the interbank foreign exchange, the domestic unit opened at 82.69 against the dollar and marginally rose to 82.68, registering a rise of 11 paise over its previous close amid a positive trend in domestic equities.
On Monday, the rupee closed at 82.79 against the US currency.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.06 per cent to 104.73. (PTI)
Adani CFO says Group not seeking to refinance debt, inject capital at Hong Kong Roadshow
Adani Group isn’t seeking to refinance debt or inject capital, group chief financial officer Jugeshinder Singh told Bloomberg News on the sidelines of an investor roadshow in Hong Kong Tuesday.
When asked “Are you looking to refinance any debt?” Singh said: “No, we don’t have anything major at all.” “There’s no transactions,” he added, without specifying a timeframe or elaborating further. He also said “No” in response to the question: “Are you looking to inject any capital?,” as reported by Bloomberg. (Read More)
IT index shines in early hours on Tuesday with all stocks trading in the green
Zoom jumps on AI bandwagon, forecasts upbeat 2024 profit targets
Zoom Video Communications Inc said on Monday it will integrate more artificial intelligence into its products and forecast annual profit above Wall Street estimates, sending the company’s shares up 8% in extended trading.
Analysts predict the AI tech will be a major driver for future growth for the tech industry, which has been grappling with slowing demand amid recessionary fears.
The AI race picked up pace after Microsoft-backed OpenAI’s ChatGPT last year prompted heavyweights from Alphabet Inc to China’s Baidu Inc to announce their own offerings.
“I like that Zoom is proactively talking about these opportunities today and I honestly believe it’s necessary, especially given Microsoft is already including ChatGPT as part of Teams Premium,” said RBC analyst Rishi Jaluria.
San Jose, California-based Zoom forecast fiscal 2024 profit between $4.11 and $4.18 per share, compared with analysts’ average estimate of $3.66 per share, according to Refinitiv data. (Reuters)
After Singapore India’s UPI likely to extend to UAE, Mauritius, Indonesia
After the successful launch of the cross-border connectivity of real-time digital payment with Singapore last week, experts believe that India’s UPI likely to extend to UAE, Mauritius, Indonesia.
‘It is a matter of pride that India’s world-class UPI digital payment infrastructure has gone global and will make it easier for Indian users to conduct business abroad. As a result of Singapore’s move, other nations like the UAE, Mauritius, and Indonesia will likely follow suit, enabling seamless real-time financial transfers,” said Mehul Mistry- Global Head- Strategy, Digital Financial Services & Partnership, Wibmo – A PayU Company. (Read More)
M&M gains in early trading and leads the Auto index rally
Indices remain flat at open with Auto stocks gaining at the start and Metal dragging
Geojit Financial Services: Investors should appreciate the fact that the selling in banking is overdone and some bluechips are available at attractive valuations
Dr V K Vijayakumar, chief investment strategist at Geojit Financial Services: Sustained FII selling ( ₹5488 crores in the last 4 days) will act as a drag on the market in the near term. Weak participation by retail/HNIs has emboldened FIIs to press sales on every mild rally. This trend might continue. But a significant feature of the market trend is the strength being exhibited by the banking sector. Smart money is chasing fundamentally strong banking names. Investors should appreciate the fact that the selling in banking is overdone and some bluechips are available at attractive valuations. For instance, Axis Bank is now trading at 1.5 times forward PB. IT valuations are also turning attractive for long-term investors. Attractive valuations can trigger buying in beaten-down segments. The PCR and derivatives activity indicate an oversold market.
Buy or sell: Vaishali Parekh recommends 2 stocks to buy today
Vaishali Parekh of Prabhudas Lilladher recommended two stocks to buy today and those two day trading stocks are ICICI Bank and Power Grid. Here we list out full details in regard to these two day trading stocks for today:
1] ICICI Bank: Buy at ₹856, target ₹886, stop loss ₹842; and
2] Power Grid: Buy at ₹219, target ₹228, stop loss ₹215. (Read More)
Sensex preopens in green with Adani Group, SpiceJet, Vodafone Idea in focus in today’s session
Global markets: SGX Nifty, US dollar to Dow Jones — key triggers that may dictate stock market today
Global markets today: After closing out its worst week since early December 2022, US stocks witnessed some bottom fishing and finished higher on Monday session. However, this rise in equities can be attributed to the profit booking by investors in US dollar as Dollar Index came below 105 on Monday. However, Us inflation concern is still around as WTI crude oil price advances towards $76 levels as investors look optimist for Caixin Manufacturing PMI. Meanwhile, in early morning deals, US dollar has witnessed buying interest while SGX Nifty is trading flat but in positive territory.
Here we list out important global market indicators that may dictate Indian stock market today: (Read More)
Citi India customers’ transition to Axis Bank effective from 1 March
Private sector lender Axis Bank on Thursday said that the deal to acquire Citibank’s India’s consumer business and NBFC business will be completed by tomorrow, 1 March 2023.
Axis Bank will acquire Citibank’s India consumer business from Citibank N.A. (CBNA) and NBFC from Citicorp Finance (India) Limited (CFIL), according to its regulatory filing. (Read More)
Reliance Securities Stock in Focus for Today: Blue Star
STOCK IN FOCUS
Blue Star (CMP 1,434): With the higher earnings growth, better margin profile and improved business visibility over the medium term, we have our BUY rating on BLSTR, with a Target Price of Rs1,685.
HDFCLIFE (PREVIOUS CLOSE: RS489) BUY
For today’s trade, long position can be initiated in the range of Rs488-
484 for the target of Rs504 with a strict stop loss of Rs477.
POWERGRID (PREVIOUS CLOSE: RS219) BUY
For today’s trade, long position can be initiated in the range of Rs217-215
for the target of Rs224 with a strict stop loss of Rs213.
DLF (PREVIOUS CLOSE: RS350) SELL
For today’s trade, long position can be initiated in the range of Rs347-
345 for the target of Rs359 with a strict stop loss of Rs340.
Stocks to Watch: Adani Group, Zee, SpiceJet, Vodafone Idea, Dr Reddy’s, Wipro, Mahindra Logistics, DroneAcharya, Dalmia Bharat, and Triveni Glass
Unitech will be among the stocks in focus as it will declare its December quarter earnings today. (Read More)
Rupee falls 4 paise to close at 82.79 against US dollar on forex outflows
The rupee depreciated by 4 paise to close at 82.79 against the US currency on Monday as a stronger dollar in the overseas market and forex outflows from capital markets weighed on the local unit.
Month-end dollar demand from importers and losses in domestic equities also weakened the rupee sentiment.
At the interbank foreign exchange market, the rupee opened lower at 82.87 against the greenback and later slid further to a low of 82.94 in line with a decline in equity markets.
The rupee later pared losses as the US dollar retreated from the seven-week highs and stock markets cut losses. The local unit closed at 82.79, registering a fall of 4 paise over its previous close of 82.75.
Forex traders said that suspected intervention by the RBI might have prevented a sharp fall in the rupee.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading marginally lower at 105.15 after touching a seven-week high of 105.36. (PTI)
Elon Musk becomes world’s richest again on Tesla shares surge
Billionaire Elon Musk has surpassed France’s Bernard Arnault to regain his spot as the world’s richest person, as per the Bloomberg Billionaires Index, on the back of an over 90% surge in Tesla Inc’s stock price this year so far (YTD). Musk had entered 2023 with a net worth of $137 billion.
Tesla’s chief executive Elon Musk’s net worth stands at $187 billion as of 28 February 2023, as per the index, which is up about $50 billion or 36% in 2023 yet – exceeding the $185 billion personal fortune of Bernard Arnault who is the French tycoon behind luxury-goods powerhouse LVMH. Tesla’s gains have far outpaced the rally in the tech-heavy Nasdaq 100 Index, which is up about 10% in 2023, as per the Bloomberg data. (Read More)
A $19 billion derivative bond trade in India at risk with Modi’s new tax
A derivative trade that boosted demand for India’s sovereign bonds by billions is at risk from a proposed tax on high-value insurance policies, piling pressure on a market straining under record government borrowings.
Analysts say a New Delhi plan to tax high-value insurance policies will reduce demand, leading the industry to cut back on bond investments. For the past two years, banks have boosted the amount of debt bought for interest-rate swaps offered to insurers. (Read More)
Paytm’s updated shareholding shows increase in stake of domestic mutual funds and reduction in share capital base by 2.4%
One97 Communications, which owns the payments and financial services platform Paytm, completed its ₹850 crore share buyback earlier this month.
On February 13, the fintech company had informed the stocks exchanges that it repurchased 15.57 million equity shares, representing 2.4 per cent of the total number of outstanding shares, at a weighted average price of ₹545.93 per share. Consequently, the percentage stake of continuing shareholders in the firm will rise on a proportionate basis, though the absolute number of shares held by them remains the same.
Domestic institutional shareholding has increased by 1.11 per cent likely on account of increase in shareholding of Mutual Funds and AIFs. Mutual funds have increased their position since December 2022, on the back of strong Q3 results — from 1.73 per cent to 2.68 per cent.
On the other hand, foreign institutional shareholding has reduced from 72.8 per cent to 71.9 per cent. FDI shareholding saw a reduction, FPI Cat 1 shareholding increased from 6.7 per cent to 10.6 per cent (a 3.9 per cent increase).
Godrej industries appoints Vishal Sharma as CEO-designate of its chemicals business
Godrej Industries has announced the appointment of Vishal Sharma as CEO-designate of its chemicals business effective 1 March 2023. “As a part of the Leadership Team – Succession Planning, we are pleased to inform that we are announcing appointment of Mr. Vishal Sharma as the “Chief Executive Officer- Designate” (CEO-Designate) of GIL–Chemicals Business with effect from March 1, 2023,” the company informed in an exchange filing on Monday.
Vishal Sharma will report to Nitin Nabar, Executive Director and President (Chemicals), Godrej Industries Limited. (Read More)
VIL allots 12,000 optionally convertible debentures to ATC Telecom Infrastructure
Vodafone Idea Ltd (VIL) on Monday said it has allotted 12,000 optionally convertible debentures to ATC Telecom Infrastructure.
The balance 4,000 debentures will be allotted on receipt of application form and subscription money and due intimation of the same shall be filed as necessary, according to a regulatory filing.
“… it is hereby informed that the capital raising committee of the Board of Directors of Vodafone Idea Limited has, at its meetings held today that is 27 February, 2023, allotted a total of 12,000 number of unsecured, unrated and unlisted Optionally Convertible Debentures of the face value of ₹10,00,000 each (OCDs) to ATC Telecom Infrastructure Private Limited,” it said.
On February 25, VIL’s shareholders approved the preferential issuance of up to ₹1,600 crore of OCDs to American Tower Corp (ATC).
In this regard, the special resolution was cleared at an Extraordinary General Meeting (EGM) of Vodafone Idea held last week. (PTI)
SpiceJet’s $100 mln debt rejig: Carlyle Aviation to buy stakes in airline, SpiceXpress
In a move that will help reduce its debt by USD 100 million, cash-strapped SpiceJet on Monday announced that Carlyle Aviation Partners will acquire a 7.5 per cent stake in the airline by converting outstanding dues as well as snap up shareholding in the cargo business.
As it faces multiple headwinds, the no-frills carrier will also tap the Qualified Institutional Buyer (QIB) route to raise up to ₹2,500 crore.
SpiceJet’s board has approved restructuring more than USD 100 million outstanding dues to aircraft leasing firm Carlyle Aviation Partners into equity shares and Compulsorily Convertible Debentures (CCDs).
Carlyle Aviation Partners is the commercial aviation investment and servicing arm of Carlyle’s USD 143 billion Global Credit platform. (PTI)
AEL pips RIL to become top traded stock on NSE
Gautam Adani might have ceded his position as the richest Indian to Mukesh Ambani, but, in an unflattering comparison, his group flagship Adani Enterprises (AEL) has trumped Ambani’s Reliance Industries Ltd to become the most actively traded scrip on NSE so far this month.
AEL has clocked a trading volume of ₹46,832.5 crore in the month through 27 February, accounting for a whopping 5% of the overall exchange turnover of ₹9.36 trillion over the same period. Against this, Reliance’s turnover stands at ₹13,500.54 crore or just 1.44% of overall exchange turnover. (Read More)
India’s Q3 GDP to be out today. Here’s what to expect
The government will release India’s gross domestic product (GDP) data for the October-December 2022 quarter (Q3FY23) on February 28. The GDP growth rate moderated to 6.3 percent in the preceding quarter after double-digit expansion in the Q1 of the current financial year. The Q3 GDP numbers will play a key role in setting market sentiment on Tuesday.
In the April-June quarter, GDP growth stood at 13.5 percent.
For Q3FY23, experts predict moderation in the growth momentum as the economic activity in the quarter remained distinctly uneven. Although, among key sectors, agriculture is likely to see reasonable improvement. (Read More)
US STOCKS-Stocks close slightly up on Monday after prior week’s selloff
U.S. stocks eked out a slight gain on Monday as investors engaged in some bargain hunting after last week’s losses, the biggest percentage declines of 2023 for Wall Street’s main benchmarks, as jitters persisted about coming interest rate hikes to tame stubbornly high inflation.
All three main stock indexes climbed more than 1% shortly after the opening bell, in part due to an easing in Treasury yields, and all three closed well off their session highs.
Stocks steadily gave up gains throughout the session as U.S. Treasury yields moved off the day’s lows.
“On the heels of the worst week of the year, first three-week losing streak for the S&P since December, a little green is a welcome change but again the reality is market participants are trying to square the circle with exactly how long the Fed will leave rates high, and is a 50 basis point hike really on the table at the next meeting,” said Ryan Detrick, chief market strategist at Carson Group in Omaha, Nebraska.
“It’s led to a good deal of uncertainty, and we have seen that when there is uncertainty there can be selling and volatility.”
The Dow Jones Industrial Average rose 72.17 points, or 0.22%, to 32,889.09, the S&P 500 gained 12.2 points, or 0.31%, to 3,982.24 and the Nasdaq Composite added 72.04 points, or 0.63%, to 11,466.98. (Reuters)
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