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Tag: News

  • Investors are panicking as Bitcoin falls below the $30,000 level

    Cryptocurrency, Bitcoin, Market, News,

    On Tuesday, the global cryptocurrency market reached its lowest point in history, with Bitcoin falling below $30,000 a coin, sending millions of investors into a panic.

    The whole global cryptocurrency market fell 13%, hovering around $1.37 trillion in market capitalization, its lowest level this year.

    Bitcoin had dropped more than 55% from its all-time high of $69,000 in November of last year.

    Cardano (20%), Solana (16%), XRP (13%), BNB (16%), and Ethereum (16%) were among the digital assets that experienced double-digit percentage declines (10 per cent),

    According to experts, the combination of rising interest rates and declining economic activity has created a risk-off atmosphere.

    Terraform Labs (TFL), the company behind UST, LUNA, and the Luna Foundation Guard (LFG), has depleted its treasury wallet of all of its bitcoin (about 42,530 bitcoin) worth $1.3 billion.

    According to TechCrunch, the UST stablecoin lost its 1:1 dollar peg for the second time in three days on Monday, falling as much as 5.3 percent to 95 cents.

    The drop is due to concerns about the US Federal Reserve’s willingness to combat inflation. The Federal Reserve raised interest rates by 50 basis points last week.

    The GST council in India is considering a 28 percent tax on cryptocurrencies, similar to the present GST on casinos, betting, and lottery, which might further damper the attitude of crypto investors in the country.

    Bitcoin is worth approximately $650 billion and accounts for almost a third of the cryptocurrency market.

  • As crude oil prices rise, the rupee falls to an all-time low of 77.42 per dollar

    Crude Oil Price

    The Indian rupee has broken over the 77-per-dollar barrier for the first time, owing to rising crude oil prices and a growing trade deficit.
    The rupee was trading at 77.32 per dollar, 41 paise lower than its previous close.
    The US Federal Reserve’s hawkish posture has resulted in higher US bond yields, with the dollar index reaching a 20-year high.
    The RBI has been robust in its intervention in the foreign exchange market in the past, and was seen protecting the Rs 77 per dollar levels.

    As a result, foreign exchange reserves have fallen by roughly $45 billion from their all-time high of $642 billion, which was recorded for the week ending September 3, 2021.
    According to the most recent figures issued by the RBI on Friday, the country’s foreign exchange reserves dipped to $598 billion for the week ending April 29.

    Risk appetite has diminished, according to forex traders, due to growing fears about inflation, which may prompt more aggressive rate hikes by global central banks.

    The dollar index, which measures the strength of the greenback against a basket of six currencies, was up 0.35 percent at 104.02, reflecting rising US yields and concerns about higher interest rates.

    Furthermore, Asian and developing market rivals began the day badly and likely impact on mood.

    The 30-share Sensex was trading 737 points, or 1.34 percent, lower at 54,098.58 points, while the wider NSE Nifty was down 220.25 points, or 1.34 percent, at 16,191.00 points.

    Brent crude futures increased 0.14 percent to USD 112.55 per barrel, the global oil benchmark.

    According to stock exchange data, foreign institutional investors were net sellers in the capital market on Friday, offloading shares worth Rs 5,517.08 crore.

  • 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 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%.

  • Bajaj Auto’s April sales fell 20% to 310,774 units, with domestic sales down 24%

    Bajaj Auto Ltd reported a 20% drop in overall sales in April to 3,10,774 units on Monday. Bajaj Auto said in a statement that it sold 3,88,016 vehicles in the same month last year.

    It stated that total domestic sales in April 2021 were 1,02,177 units, down 24% from 1,34,471 units in April 2021.
    Last month’s exports were also down 18%, at 2,08,597 units, compared to 2,53,545 units a year ago.
    Domestic two-wheeler sales were 93,233 units, down 26% from 1,26,570 units in the same month previous year, according to the business.

    It said that the company’s two-wheeler shipments were down 15% to 1,88,478 units in April 2021, compared to 2,21,603 units in April 2021.

    Commercial vehicle sales in the domestic market, on the other hand, increased by 13% to 8,944 units from 7,901 units in the same month last year, according to Bajaj Auto.

    However, commercial vehicle exports fell 37% to 20,119 units in April 2021, compared to 31,942 units in April 2021, according to the business.

  • As the yen falls on the dovish BOJ, the dollar reaches a 20-year high and the euro a 5-year low

    The dollar rose to a 20-year high against its peers on Thursday as the Bank of Japan maintained its dovish stance, sending the yen to its lowest level since 2002 and the euro to a five-year low amid concerns about the region’s economic growth.

    The dollar soared beyond 130 yen as the Bank of Japan reaffirmed its commitment to maintaining ultra-low interest rates by promising to buy an infinite number of bonds everyday to meet its yield target.
    Given the pressure mounting throughout foreign exchange markets, there had been considerable market speculation that the BOJ might take a step back.

    After reaching a high of 103.93, the dollar index was last seen at 103.73, up 0.74 percent for the day.

    After data showed that the US economy unexpectedly fell in the first quarter due to a resurgence in COVID-19 cases, the greenback lost ground.

    Rai, on the other hand, claimed that the data did not necessarily show a sluggish economy, but that it was skewed by a much higher trade deficit caused by rising imports.

  • 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.

  • Reliance Industries has become the first Indian business to have a market capitalization of Rs 19 trillion

    After reaching a new high, Mukesh Ambani’s Reliance Industries Ltd (RIL) became the first Indian listed firm to have a market capitalization of Rs 19 trillion. In an otherwise sluggish market, the stock set a record high of Rs 2,827.10, up 2% on the BSE in intraday trade on Wednesday.

    RIL’s market capitalization was Rs 19.02 trillion at 09:33 a.m., according to BSE data, with the stock up 1.3 percent at Rs 2,811.85. The S&P BSE Sensex, on the other hand, was down 0.61 percent at 56,977.

    RIL’s stock price has increased by 11% in the last seven trading days, from a low of Rs 2,544 on April 18, 2022. The stock has gained 20% in the last three months, compared to a 0.42 percent fall in the S&P BSE Sensex.

    “Reliance industries is firing on all cylinders because its petchem business is doing extremely well on the back of a surge in Oil and Gas prices where Singapore gross refining margin (GRM) is at an all-time high. Its telecom business is unaffected by geopolitical tension and inflation whereas it is exploring synergies in its retail business. It is continuously expanding its path in the renewable energy business that opening more opportunities for the company,” said Santosh Meena, Head of Research, Swastika Investmart.

    RIL is a well-diversified commercial entity with a presence in refining or marketing petrochemicals (O2C), oil and gas exploration, retail, digital services, and media, making it one of India’s largest conglomerates. O2C and oil and gas contributed 50% of EBITDA in the 9MFY22 period, whereas retail, digital, and others contributed 10%, 34%, and 6%, respectively.

    On Tuesday, RIL and Abu Dhabi Chemicals Derivatives Company RSC (TA’ZIZ) inked a shareholder agreement for a chemical project in Abu Dhabi’s Ruwais. The development is significant because it will concentrate on the manufacturing of chlor-alkali, ethylene dichloride (EDC), and polyvinyl chloride (PVC), which are all used in a variety of industrial applications.

  • In early trade, the rupee fell 16 paise to 76.72 against the US dollar.

    stock exchange data

    In early trade on Wednesday, the rupee fell 16 paise to 76.72 against the US dollar, driven down by the greenback’s strength and continuous foreign fund outflows.

    The rupee opened at 76.69 versus the dollar on the interbank foreign exchange, before losing ground to quote at 76.72, a drop of 16 paise from the previous close.

    The rupee was trading at 76.56 against the dollar on Tuesday. According to Sriram Iyer, Senior Research Analyst at Reliance Securities, the rupee opened worse against the dollar on Wednesday as the American currency resumed its upward trend.

    Asian and emerging market counterparts were mixed, but Iyer noted that anticipation of Chinese intervention should limit the peers’ depreciation bias and boost sentiment for the local currency.

    The dollar index, which measures the strength of the greenback against a basket of six currencies, was up 0.05 percent at 102.34.

    Concerns about China’s weakening growth and predictions that the Federal Reserve will raise rates rapidly increased demand for the greenback, according to Iyer.

    On the domestic front, the 30-share Sensex was down 392.12 points, or 0.68 percent, at 56,964.49, while the wider NSE Nifty was down 126.25 points, or 0.73 percent, at 17,074.55.

    Brent crude prices increased 0.27 percent to USD 105.27 per barrel, the global benchmark.

    According to stock exchange data, foreign institutional investors were net sellers in the capital market on Tuesday, offloading shares worth Rs 1,174.05 crore.

  • Rupee slips for third session in a row; oil near $113 a barrel

    Rupee slips for third session

    The rupee depreciated for the third straight session to close 10 paise lower at 76.29 against the dollar on Monday, tracking the strength of the greenback overseas, coupled with foreign fund outflows.

    At the interbank foreign exchange market, the rupee opened lower at 76.41 against the American currency, and shuttled between a high of 76.20 and a low of 76.43. It settled at 76.29, down 10 paise over its previous close of 76.19. The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.20 per cent higher at 100.70.

    The rupee also weakened as hawkish Fed officials and dovish ECB continued to push the bond yields higher. The benchmark 10-year bond yield traded down to 7.15 per cent after earlier rising to a high of 7.26 per cent.

    Sriram Iyer, senior research analyst at Reliance Securities, said the rupee weighed was weighed down by the rising crude prices and bond yields.

    Oil prices rose on Monday as the shut down of Libya’s biggest oil field in an already under-supplied market overshadowed signals that China’s lockdowns are weighing on its economic growth.

    Brent crude futures rose above $113 a barrel for the first time since late March. West Texas Intermediate traded around $108. Global markets face further interruptions to oil supplies after demonstrations against Libya’s PM Abdul Hamid Dbeibah shut down Sharara, the country’s biggest oil field.