victorybull

Author: victorybull

  • Indian stock markets can fall another 10%

    Budget euphoria is slowly fading away on Dalal Street as global headwinds stare in the eye. Geopolitical tensions involving Ukraine and Russia, coupled with fear of easy money drying up amid soaring inflation, are giving a rude reality check to stock market investors. Yesterday, the BSE Sensex plunged over 1,300 points in intra-day trade while the Nifty50 slipped below the 17,150 level. The Nifty 50 and BSE-Sensex tumbled for a third straight day and moved below the highs made on Budget-day.

    The indices ended nearly 2% lower at 17,214 and 57,621, respectively. With this, the markets have turned negative for the year, and are down 1 percent YTD.U R Bhat, who is co-founder & director at Alphaniti Fintech, believes markets can fall another 3-5% from here on as an actual clash on the Russian border is not priced in at all. Brent crude prices are already up 16% in a month amid simmering tensions between Russia and NATO over Ukraine. Brent is above $93 per barrel mark but a full-scale war can take it past the $100 per barrel mark, analysts worry. Most analysts, including those at Rabobank International and BofA Securities, see Brent hitting the $125 mark by June 2022. On their part, the benchmark indices – the S&P BSE Sensex and the Nifty50 – have slipped around 3% each in the past month. On the contrary, the Nifty Energy index that comprises upstream players like Reliance Industries and ONGC has outperformed with a rise of nearly 6% as oil prices rose during this period. Going forward, market mavens suggest investors stay stock-specific and tread cautiously in the markets. These global factors will continue to dictate market trends on Tuesday as well. Domestically, investors will track the three-day RBI policy meeting, which will begin later today. That apart, the December quarter result of prominent companies, including Bharti Airtel, Escorts, Indraprastha Gas, IRCTC, and Godrej Consumer products will be on investor radar. Moreover, shares of Adani Wilmar will also debut on the bourses today.

  • Delhi logs 1,151 new COVID-19 cases, 15 more deaths; positivity rate 2.62%

    Delhi reported 1,151 new COVID-19 cases and 15 more fatalities on Monday, while the positivity rate rose slightly to 2.62 percent, according to data shared by the health department. With this, the national capital’s case count increased to 18,45,084 and the death toll climbed to 25,998, it said.

    Delhi on Sunday reported 1,410 fresh COVID-19 cases and 14 more deaths, while the positivity rate was at 2.45 percent. The number of COVID-19 tests conducted a day ago stood at 43,991, it said.Delhi had on Saturday reported 1,604 cases with a positivity rate of 2.87 per cent, and 17 more deaths. The number of daily cases in Delhi has been on the decline after touching the record high of 28,867 on January 13.

    The city had recorded a positivity rate of 30.6 percent on January 14, the highest during the ongoing wave of the pandemic. It took just 10 days for daily cases to drop below the 10,000-mark. The national capital had on January 23 reported 9,197 new Covid cases with a positivity rate of 13.32 per cent and 34 deaths.

    The surge in Covid cases in Delhi during the third wave of the pandemic was due to the Omicron variant of the virus which is highly transmissible. Several families in a large number of neighbourhoods had tested positive, but medical experts said since the infection had happened at the same time, the recovery too was quicker for the community a

    Also, there has been less chance of more spread of the infection as people have been largely home isolated with a very little number of patients needing hospitalisation this time, they said. The DDMA had on Friday held a meeting to review the COVID-19 situation and decided to reopen higher education institutions and coaching centres along with schools for classes 9-12 from February 7 amid dipping Covid cases in the city.

    The DDMA, however, decided that night curfew will continue in Delhi. Gyms have also been allowed to reopen with certain restrictions. There are 15,416 beds for Covid patients in Delhi hospitals and 936 (6.07 per cent) of them were occupied, the bulletin said.

    A total of 936 Covid patients were in hospitals, the Monday health department bulletin stated. Out of them, 328 were on oxygen support, including 84 on ventilator support. The number of active cases stands at 7,885, it said.

    The number of people under home isolation stood at 5,715 on Monday, while it was 6,401 a day before. The number of containment zones in the city stood at 28,980, a fall from 30,546 the previous day.

  • Tube Investment Consolidated December 2021 Net Sales at Rs 3,410.10 crore, up 100.6% Y-o-Y

    Net Sales at Rs 3,410.10 crore in December 2021 up 100.6% from Rs. 1,699.99 crore in December 2020.

    Quarterly Net Profit at Rs. 278.88 crore in December 2021 up 159.79% from Rs. 107.35 crore in December 2020.

    EBITDA stands at Rs. 466.45 crore in December 2021 up 92.06% from Rs. 242.87 crore in December 2020.

    Tube Investment EPS has increased to Rs. 14.46 in December 2021 from Rs. 5.71 in December 2020.

    Tube Investment shares closed at 1,796.50 on February 04, 2022 (NSE)

  • Markets drop for a second day on global cues; eke out 2.5% weekly gain

    Benchmark indices fell for a second day on Friday but ended the week with a 2.5 per cent gain. Global investor sentiment was hit by hawkish comments by the European Central Bank (ECB), disappointing earnings from US technology giants and a simmering crisis at Ukraine’s border.

    The Sensex fell 143 points, or 0.24 per cent, to end at 58,645. The index gained 1,444 points, or 2.5 per cent, during the week after the capex push announced in the Union Budget drove optimism of revival in economic growth and corporate earnings. The Nifty 50 index fell 44 points, or 0.25 per cent, to finish at 17,516.3.

    In the preceding two weeks, domestic markets had crashed 7 per cent spooked by the US Federal Reserve’s decision to start raising interest rates to cool down inflation. On Thursday, the ECB joined the Fed in taking a hawkish turn as its President Christine Lagarde no longer ruled out an interest-rate hike this year. Meanwhile, the Bank of England Thursday raised interest rates back-to-back for the first time since 2004 as it began the process of quantitative tightening.

    Domestic markets started this week on a strong note but gave up some gains amid these headwinds.

    Earlier this week, the Finance Minister Nirmala Sitharaman announced plans to increase capital spending by 35 per cent to Rs 7.5 trillion in the next financial year, seeking to bolster the economy’s recovery after disruptions from the pandemic.

    “Domestic indices had a bull run during the first half of the week as the Budget was in line with market expectation. As global cues turned in favour of bears, the domestic market turned volatile towards the end of the week. US markets were under pressure following weak earnings numbers reported by Meta. The European market also lacked strength as the Bank of England imposed a back to back rate hike while the most dovish European Central Bank acknowledged the risk of rising inflation signaling a rate hike in near future,” said Vinod Nair, Head of Research at Geojit Financial Services.

    Overseas investors sold shares worth Rs 2,268 crore, while domestic institutions were net-buyers to the tune of Rs 622 crore.

    “Market is witnessing higher volatility but the sentiment has improved post the Budget. Now the focus would shift to the rising interest rate regime globally and consequent higher bond yields. Surge in oil price to seven-year high of $92 per barrel would present further challenge for inflation. The December quarter earnings has been good so far as companies largely delivered on the earnings front, despite the unprecedented inflationary pressures from rising commodity and energy prices. The corporate earnings delivery is highly crucial, in a rising rate regime which is getting well reflected in the market with poor performers getting battered severely,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.

    As per Bloomberg data, out of the 33 Nifty 50 companies that have announced results so far, 18 either met or exceeded analyst estimates, 13 missed and two can’t be compared.

  • Markets drop for a second day on global cues; eke out 2.5% weekly gain

    Benchmark indices fell for a second day on Friday but ended the week with a 2.5 per cent gain. Global investor sentiment was hit by hawkish comments by the European Central Bank (ECB), disappointing earnings from US technology giants and a simmering crisis at Ukraine’s border.

    The Sensex fell 143 points, or 0.24 per cent, to end at 58,645. The index gained 1,444 points, or 2.5 per cent, during the week after the capex push announced in the Union Budget drove optimism of revival in economic growth and corporate earnings. The Nifty 50 index fell 44 points, or 0.25 per cent, to finish at 17,516.3.

    In the preceding two weeks, domestic markets had crashed 7 per cent spooked by the US Federal Reserve’s decision to start raising interest rates to cool down inflation. On Thursday, the ECB joined the Fed in taking a hawkish turn as its President Christine Lagarde no longer ruled out an interest-rate hike this year. Meanwhile, the Bank of England Thursday raised interest rates back-to-back for the first time since 2004 as it began the process of quantitative tightening.

    Domestic markets started this week on a strong note but gave up some gains amid these headwinds.

    Overseas investors sold shares worth Rs 2,268 crore, while domestic institutions were net-buyers to the tune of Rs 622 crore.

    “Market is witnessing higher volatility but the sentiment has improved post the Budget. Now the focus would shift to the rising interest rate regime globally and consequent higher bond yields. Surge in oil price to seven-year high of $92 per barrel would present further challenge for inflation. The December quarter earnings has been good so far as companies largely delivered on the earnings front, despite the unprecedented inflationary pressures from rising commodity and energy prices. The corporate earnings delivery is highly crucial, in a rising rate regime which is getting well reflected in the market with poor performers getting battered severely,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.

    As per Bloomberg data, out of the 33 Nifty 50 companies that have announced results so far, 18 either met or exceeded analyst estimates, 13 missed and two can’t be compared.

  • BlackBerry to Sell Patents Related to Mobile Devices, Messaging for $600 Million

    BlackBerry Ltd said on Monday it will sell its legacy patents primarily related to mobile devices, messaging and wireless networking for $600 million to a special purpose vehicle formed to acquire the company’s patent assets.

    BlackBerry said the transaction with the vehicle, Catapult IP Innovations Inc, will not impact customers’ use of its products or services.

    The move comes weeks after BlackBerry pulled the plug on service for its once ubiquitous business smartphones, which were toted by executives, politicians and legions of fans in the early 2000s.

    U.S-listed shares of BlackBerry were down 3.6% in premarket trading. One of the so-called “meme stocks”, such as GameStop and AMC Entertainment, that witnessed a surge in early 2021, BlackBerry rose 41% last year.

    At the closing of the deal, the company will receive $450 million in cash and a promissory note for $150 million.

    Once known for its phones with a tiny QWERTY physical keyboard and the BBM instant messaging service, BlackBerry’s core businesses today are cybersecurity and software used by automakers.

  • Saregama India plans to invest up to Rs 750 cr in music business

    Saregama India, a part of RP-Sanjiv Goenka Group, is planning to invest up to Rs 750 crore in its music business to achieve a 25-30 per cent revenue growth in the next few years through organic and inorganic routes, an official said.

    It is also foraying into a new business segment of artiste partner programme to launch their music videos and audios on its platforms with an arrangement of sharing revenue, he told analysts.

    The fund (of up to Rs 750 crore) is only for the music business. This is not going to be used for our films or our Carvaan business. Other businesses are well capitalised and they will be able to manage to run on their own…. Our projection of 25-30 per cent revenue growth that we are giving is a combination of both organic, new content purchases, and some inorganic purchases,” the official said.

    On music licencing and the film business, the company is also looking at 25-30 per cent growth next year, he said.

    Saregama announced its partner programme for all singers and musicians wanting to do covers, recreations and remakes of its catalogue across all languages.

    “The company has categorised partnerships into three segments. The first is Diamond plus for which revenue share is 20 per cent, while Diamond revenue share will be 10 per cent and for the gold category, which is only for audio, it is also 10 per cent,” the official added.

  • Sebi advises MFs to stop investing in int’l stocks

    The Securities and Exchange Board of India (Sebi) has advised mutual funds investing in overseas securities to stop further investments in foreign stocks to avoid breach of industry-wide overseas limits, two industry executives independently confirmed to Mint on the condition of anonymity.

    Mutual funds can make overseas investments up to $1 billion per mutual fund, with the overall industry limit of $7 billion, according to a Sebi circular of 3 June 2021. The suspension is likely to be temporary and could be revoked once the limits are enhanced by the regulator.

    Following the Sebi directive, the Association of Mutual Funds in India (Amfi) has asked fund houses to stop accepting flows in schemes investing overseas from 2 February. However, existing SIPs and STPs have been allowed to continue.

    Franklin Templeton Mutual Fund released a notice on Saturday announcing suspension of lump-sum subscription, switch-ins, and fresh registration of SIP/STP for its three overseas funds, Franklin India Asian Equity Fund, Franklin India Feeder-Franklin US Opportunities Fund and Franklin India Feeder -Templeton European Opportunities Fund, after 28 January 2021. The fund house temporarily withdrew the notice, but may be forced to reinstate it after the Amfi guidance.

    Sebi advises MFs

  • World food prices ease in Dec, but hit 10-year peak in 2021: FAO

    World food prices eased in December after four consecutive monthly gains but jumped 28% over 2021 for the highest average level since 2011, the U.N. food agency said on Thursday.

    The Food and Agriculture Organization’s (FAO) food price index, which tracks international prices of the most globally traded food commodities, averaged 133.7 points last month compared with a revised 134.9 for November.

    The November figure was previously given as 134.4.

    For 2021 as a whole, the benchmark index averaged 125.7 points, up 28.1% from 2020 and the highest since 131.9 in 2011.

    The monthly index has been running at 10-year highs, reflecting harvest setbacks and strong demand over the past year. 

    With the exception of dairy products, prices for all categories in the food price index eased in December, with vegetable oils and sugar falling significantly, the agency said.

    Higher food prices have also contributed to a broader surge in inflation as economic activity recovers from the coronavirus crisis.

    The FAO has warned that higher food costs in import-reliant countries are putting poorer populations at risk.

  • IPO-bound Delhivery announces investment in Falcon Autotech

    IPO-bound logistics service Delhivery has announced its investment in Falcon Autotech, a logistics automation solutions provider. This is in line with Delhivery’s stated objective of sustained investments in future-ready hardware solutions in its operations.

    The amount invested is undisclosed by both the firms.

    With this partnership, Delhivery expects to work closely with Falcon Autotech to design and implement new automation solutions for transportation and warehousing operations.

    The partnership will also enable the bundling of the hardware automated solutions along with Delhivery’s SaaS platform, one of the proposed growth verticals for Delhivery in the national and international market.

    Delhivery (including Spoton) already operates 20 automated sortation centres, 124 gateways, and 83 fulfillment centres across India as of June 30, 2021.

    Commenting on the investment, Ajith Pai, Chief Operating Officer, Delhivery, said, “The collaboration with Falcon Autotech strengthens our ability to drive greater speed, precision, and efficiency across our business lines.”

    Naman Jain, Chief Executive Officer, Falcon Autotech, added, “We are delighted to welcome Delhivery as a partner to Falcon. This investment is a testimony to Falcon’s commitment to our customers, our design, technology, and delivery capabilities, and the product roadmap ahead.”

    A month ago in December, Delhivery had acquired Transition Robotics Inc, a California-based company focused on developing unmanned aerial system platforms.  The deal would help strengthen its capabilities in a wide range of applications, including aerial photography, remote sensing, inspection and surveys.

    Delhivery on November 2 filed its documents with the market regulator, seeking to raise a billion dollars in an initial public offering.Delhivery IPO will consist of primary issuance of Rs 5,000 crores which the end-to-end supply chain unicorn will raise via public issue. The offer for sale by the existing investors will be to the tune of Rs 2,460 crores. It will mark a lucrative exit for many of its investors.