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Category: Financial Market

  • Reliance Industries loses 3% after the March quarter results; it has dropped 9% in the last six days

    Reliance Industries (RIL) shares

    Reliance Industries (RIL) shares fell up to 3% to Rs 2,542.1 on the BSE in intraday trade on Monday after the Mukesh Ambani-led oil-to-chemicals (O2C) firm reported a consolidated net profit of Rs 16,203 crore for the quarter ended March 31, 2022 (Q4 FY22), up 22.5 percent from the year-ago period’s Rs 13,227 crore, but falling short of expectations.

    The stock was trading lower for the sixth consecutive trading day, down 9% over time. On April 29, 2022, it reached a record high of Rs 2,855. In comparison, the S&P BSE Sensex was down 1.5 percent at 54,039 points at 09:25 a.m.

    Reliance Industries (RIL) shares fell up to 3% to Rs 2,542.1 on the BSE in intraday trade on Monday after the Mukesh Ambani-led oil-to-chemicals (O2C) firm reported a consolidated net profit of Rs 16,203 crore for the quarter ended March 31, 2022 (Q4 FY22), up 22.5 percent from the year-ago period’s Rs 13,227 crore, but falling short of expectations.

    The stock was trading lower for the sixth consecutive trading day, down 9% over time. On April 29, 2022, it reached a record high of Rs 2,855. In comparison, the S&P BSE Sensex was down 1.5 percent at 54,039 points at 09:25 a.m.

    The retail category created 714 new outlets, pushing the total number of establishments to 15,000, while sales topped pre-Covid levels.

    While sim consolidation led to the third consecutive quarter of net subscriber decline, the positive surprise came from better ARPU growth and a minor beat at EBITDA levels due to higher topline.

  • Elon Musk has secured almost $7 billion in new cash for his purchase of Twitter

    Elon Musk

    Elon Musk has obtained approximately $7.1 billion in new finance pledges for his proposed $44 billion takeover of Twitter, gaining the support of some of the world’s most powerful investors.

    He was also anticipated to act as Twitter’s interim CEO for a few months once the acquisition was completed

    The equity commitments come as the Tesla billionaire raises funds to fund one of the most significant tech industry takeovers. Binance, Brookfield Asset Management, Fidelity Management & Research, and Qatar Holding are among the investors identified in the filing on Thursday.
    Musk has also garnered the backing of fellow entrepreneur and Oracle co-founder Larry Ellison, who has a significant position in Tesla and serves on its board of directors. Ellison’s trust has pledged $1 billion to Musk’s takeover.

    In intraday trading, Twitter shares surged 3.63 percent.

    On April 25, the world’s wealthiest individual agreed to buy Twitter using a financing strategy that has concerned some Tesla investors. Musk promised to provide $21 billion in equity in addition to promising tens of billions of dollars in Tesla stock to support margin loans. According to the filing on Thursday, that figure has climbed to $27.25 billion.

    Saudi Prince Alwaleed bin Talal, chairman of the board at Kingdom Holding Firm and one of Twitter’s most ardent supporters, has agreed to pledge nearly 35 million shares in Twitter — worth $1.9 billion — in order to maintain a stake in the company following Musk’s takeover.

    He earlier rejected Musk’s offer, claiming that it fell “far short of the underlying worth of Twitter.” Musk is reportedly in talks with Twitter co-founder Jack Dorsey about contributing some of his shares to the purchase.

    Musk’s new investors include a slew of traditional asset managers, venture capital firms, boutique hedge funds, and one of the world’s largest capital pools. Qatar Holding, a subsidiary of the country’s sovereign wealth fund, has committed to provide $375 million.

  • Uber reports a $5.9 billion net loss as Asian investment values tumble

    Uber

    Uber reported a net loss of $5.9 billion owing to unrealized losses from holdings in Didi Global, Grab Holdings, and Aurora Innovation, but provided a good earnings projection for the current period. It indicated that the firm intends to capitalize on strong ride demand without jeopardizing earnings by focusing on product upgrades rather than incentives to overcome the driver shortage.

    The ride-sharing and delivery company forecasted second-quarter gross bookings of $28.5 billion to $29.5 billion and adjusted earnings before interest, tax, depreciation, and amortization of $240 million to $270 million. The upper end of both ranges outperformed the average analyst forecast.

    Uber‘s positive results contrasted with rival Lyft’s poor prediction on Tuesday, which indicated that the driver shortage that has plagued both ride-hailing businesses for the past year will continue into the second quarter. In extended trading, shares fell as much as 27% after Lyft said it would increase spending on driver incentives to bring the number of drivers on its marketplace back into balance with rebounding rider demand.

    Uber’s estimate comes after revenue increased 136% to $6.9 billion in the first quarter, the firm said in a statement on Wednesday.

    Adjusted Ebitda earnings were $168 million in the quarter, exceeding the $135 million projected by analysts.

  • In early trade, the rupee climbs 29 paise to 76.11 against the US dollar

    The rupee rose 29 paise to 76.11 against the US dollar in early trade on Thursday, as the US currency fell in the international market.

    The rupee rose 29 paise to 76.11 against the US dollar in early trade on Thursday, as the US currency fell in the international market.

    The rupee began at 76.17 against the US dollar on the interbank foreign exchange, then gained ground to quote at 76.11, a 29-paise increase from the previous day.

    The rupee had finished at 76.40 versus the US dollar on Wednesday.

    According to Sriram Iyer, Senior Research Analyst at Reliance Securities, the Indian rupee opened stronger against the US dollar on Thursday following a surprise rate hike by the Reserve Bank of India and US Fed Chairman Powell pushing back against a steeper 75-basis point rate hike in the coming months.
    Furthermore, foreign money inflows into domestic assets via the LIC IPO could boost sentiment.

    However, Asian and developing market currencies have begun to fall, and a rise in oil prices could limit the appreciation bias. Furthermore, the bearish rupee forecast remains unchanged due to the anticipation of more 50-basis-point rate hikes by the US Fed in the coming months, according to Iyer.

    The dollar index, which measures the strength of the US currency against a basket of six currencies, was 0.03 percent lower at 102.55.
    The US dollar fell more in Asian trade on Thursday morning after Powell stated that the committee was not actively exploring a sharper 75-basis-point rate hike in the coming months, despite the fact that inflation remains well above the Fed’s 2 percent target.
    The 30-share Sensex was trading 399.81 points, or 0.72 percent, higher at 56,068.84 points, while the wider NSE Nifty was up 125.75 points, or 0.75 percent, at 16,803.35.

    Brent crude futures increased 0.35 percent to USD 110.53 per barrel, the global oil benchmark.

    According to stock exchange data, foreign institutional investors were net sellers in the capital market on Wednesday, offloading shares worth Rs 3,288.18 crore.

  • In April, auto retail sales increased 37% due to a low Covid-hit base impact

    auto retail sales

    Automotive retail sales in India surged by 37% in April on a low base of COVID-affected April last year, according to the automobile dealers’ group FADA on Thursday.

    Total sales across all categories increased to 16,27,975 items in April, up from 11,87,771 units the previous year.

    When compared to April of last year, all vehicle types, including passenger vehicles and two-wheelers, increased year on year.

    Passenger car registrations totaled 2,64,342 units in April, up 25% from 2,10,682 units in April of last year.
    Similarly, two-wheeler sales were 11,94,520 units, up 38% from the previous year.

    Commercial vehicle retail sales in April were 78,398 units, up 52% from 51,515 units in April 2021.

    When compared to April of previous year, three-wheeler sales increased by 96%, while tractor registrations increased by 26%.

  • The selling of a private bond to Apollo Global nets the Mumbai airport $750 million

    Mumbai International Airport

    After delaying a scheduled note offering, Mumbai International Airport Ltd. has raised $750 million through a private bond sale to Apollo Global Management Inc.

    According to a stock exchange notification, the operator of India’s No. 2 airport, which is controlled by the country’s richest man, issued 7.25-year dollar notes to Apollo-managed funds to refinance current debt and fund new capital investment. The deal’s terms were not specified in the statement.

    Several Asian firms have revised their dent sale plans as a result of a worldwide bond market rout. Last month, Kalyan Jewellers India Ltd. announced the cancellation of a dollar bond offering, and India’s local currency debt market has experienced a slew of cancellations in recent months.

  • ZEPTO HAS RAISED $200 MN TO DEVELOP ITS 10-MINUTE DELIVERY SERVICE THROUGHOUT INDIA

    Zepto, a rapid commerce startup founded by two 19-year-old Stanford dropouts nine months ago, has raised $200 million in a Series D funding round, valuing the company at about $900 million. Zepto intends to use the funds to expand 10-minute grocery delivery across the country and continue to grow responsibly.

    Y Combinator Continuity doubled in and spearheaded rapid commerce Zepto’s Series D, with Kaiser Permanente joining the company as a new investor. All of the company’s previous investors have upped their stakes, including Nexus Venture Partners, Glade Brook Capital, and Lachy Groom, signaling yet another vote of confidence in the company’s prospects.

    The funding would also help Zepto compete with companies like Dunzo, Swiggy, Zomato, Amazon, and Flipkart, which are all spending big on the country’s quickly rising online food sector.

    “The core of what we’re doing is delivering groceries in 10 minutes,” said Zepto co-founder and CEO Aadit Palicha in an interview. “The way we do that is through a network of highly optimized delivery centers. We have scaled to millions of customers across the country. Today, we’re doing hundreds of thousands of orders a day. We have achieved a scale that took food delivery players years to achieve and we did that in a few months. The business continues to grow at a very fast pace.”

    According to Palicha, Zepto’s revenue increased by 800% QoQ (quarter-over-quarter), but burn decreased by 5X on a per-order basis. He claimed that at scale, the company had an 88-point NPS (net promoter score) and 60% Month-1 Buyer Retention.

    The company has secured $360 million in total from well-known investors in Silicon Valley and India. In just a few months, the company claims to have established an all-star bench of executive talent and expanded its team to over 1,000 individuals. The funds will allow it to continue hiring across all departments, including engineering, analytics, operations, marketing, finance, and human resources.

    What sets Zepto apart, according to the company, is its capacity to regularly supply over 3,000 products in under 10 minutes. The goal is to establish 10-minute delivery as the new standard.

  • As Facebook’s user base grows again, Meta Platforms’ stock rises 19%

    meta

    Meta Platforms, the parent company of Facebook, saw its stock rise as much as 19% on Thursday after the company reported that its main platform added more users than expected in the first quarter, assuaging concerns that the company is losing steam as a new generation flock to younger sites like TikTok.

    Meta announced on Wednesday that its primary platform has 1.96 billion daily users, a return to growth following the first-ever fall in the December quarter. Analysts had predicted a total of $1.94 billion.

    Revenue increased 6.6 percent to $27.9 billion, the smallest growth in a decade, and would have been higher if not for the conflict in Ukraine, according to the company.

    Investors became increasingly concerned that Meta’s core business and profit engine, advertising in its social media feeds, was losing steam, and the stock had plummeted nearly 50% this year.

    Those fears appear to have been allayed — at least for the time being — since Facebook just added 31 million new daily active users. Many of Meta’s problems still exist. Mark Zuckerberg, Facebook’s CEO, has admitted that TikTok, a video-sharing app, is a significant competitor for young users’ attention.
    The stock soared to a high of $208.20 per share, the most intraday gain since July 2013.

    A sustained decline would make it more difficult for the company to justify Zuckerberg’s costly, virtual-reality-fueled metaverse vision, a business that won’t turn a profit for years, if ever.

    On a conference call with analysts on Wednesday, Zuckerberg repeated that Meta’s Reality Labs section, which is developing AR and VR technology, will not contribute significantly to the company’s business for several years. Meanwhile, Facebook has announced that it will invest billions of dollars and hire thousands of people to turn the platform, which Zuckerberg sees as the next major computing shift, into a fully immersive digital environment where users will interact virtually while working, shopping, and playing games.

  • Profit-booking in banking, financial, and IT stocks has sent the indices back into the red

    After a recent rise, the Sensex and Nifty50 stock indices fell roughly 1% on Wednesday due to profit-booking in banking, financial, and IT firms.

    The 30-stock BSE Sensex fell 537.22 points, or 0.94 percent, to 56,819.39, as 24 of its constituents fell. It fell 772.57 points, or 1.34 percent, during the day, reaching a low of 56,584.04.

    The broader NSE Nifty50 index fell 162.40 points (0.94%) to 17,038.40, with 39 of its constituents ending the day in the red.
    With a 7.24 percent decline, Bajaj Finance was the worst performer on the Sensex. ICICI Bank fell 2.21 percent, Bajaj Finserve fell 3.88 percent, and SBI fell 1.78 percent.
    Infosys was down 1.68 percent, and Wipro was down 1.91 percent. Titan was down 2.19 percent, Dr. Reddy’s was down 1.94 percent, UltraTech Cement was down 1.63 percent, M&M was down 1.46 percent, and Maruti was down 1.44 percent.

    Tata Steel, on the other hand, increased by 1%, as did Asian Paints, HCL Technologies, TCS, Kotak Mahindra Bank, Reliance Industries, and HDFC Bank.
    The BSE midcap index fell 0.88 percent, while the smallcap index fell 0.61 percent in the broader market.

    Power slid the most (1.86%) among BSE sectors indices, followed by utilities (1.81%), telecom (1.72%), banking (1.40%), and oil and gas (1.40%). (1.24 per cent). Metal was the sole asset to gain ground, gaining 0.02 percent.

    There were 2,202 stocks that fell, 1,161 that rose, and 120 that were constant.

    Stock markets dropped substantially lower in continuation of the current consolidation period, according to Ajit Mishra, VP – Research, Religare Broking Ltd.

  • After Q4 earnings, Bajaj Auto shares fell over 2% to Rs 3,804.80 on the BSE.

    Bajaj Auto's stock fell over 2% in early Thursday trade after the business reported a 2% drop in consolidated net profit for the fourth quarter ended March 2022.

    Bajaj Auto’s stock fell over 2% in early Thursday trade after the business reported a 2% drop in consolidated net profit for the fourth quarter ended March 2022.

    On the BSE, Bajaj Auto shares fell 2.58 percent to Rs 3,804.80.

    The stock fell 2.57 percent to Rs 3,805 per share on the NSE.

    Bajaj Auto reported a 2% drop in consolidated net profit to Rs 1,526 crore for the fourth quarter ended March 2022, owing to sluggish demand and a semiconductor shortage in both domestic and international markets.
    In the January-March quarter of 2020-21, the Pune-based company posted a combined net profit of Rs 1,551 crore.

    Total revenue from operations fell to Rs 7,975 crore in the fourth quarter of FY21, down from Rs 8,596 crore the previous year.

    In the fourth quarter, the company’s total two-wheeler and commercial vehicle sales fell by 17% to 9,76,651 units, compared to 11,69,664 units in the same time of the 2020-21 fiscal year.