Stock Market LIVE: Indices open flat; HUL gains; Hindalco drags
While inflation in the US appears to have peaked, aggressive policy tightening by central banks risks pushing the global economy into a recession. The World Bank last week added to the gloomy outlook, warning of one of the sharpest slowdowns.
Hindustan Unilever surges in early trading as the stock jumps more than a per cent
China’s 1st recent population fall with 850,000 people fewer at 2022 end: Report
Amid an aging society and plunging birthrate, China has announced its first overall population decline. The National Bureau of Statistics reported the country had 850,000 fewer people at the end of 2022 than over the previous year, according to The Associated Press.
Addressing a briefing on Tuesday, the bureau said that left a total 1.411.75 billion, with 9.56 million births against 10.41 million deaths. It counts only the population of mainland China while excluding Hong Kong, Macao and self-governing Taiwan as well as foreign residents. (Read More)
Indices flat at open with minor gains as FMCG and IT stocks gain, while Metal drags
Byju’s rolls out virtual sales plan amid concerns
Amid mis-selling concerns, edtech giant Byju’s has replaced its existing direct sales with a new internal sales strategy to avoid mis-selling and expand the reach of customers through a virtual process over zoom.
The edtech decacorn, which claims to have over 150 million registered learners, rolled out a four-tier tech-driven internal sales, which begins with educating an incoming lead about Byju’s product portfolio and its new refund policy over a live Zoom session that is recorded for future audit, the company said on Monday. The refund for a product is also done over a Zoom call, the company further said. The new inside sales strategy, launched in October, is announced amid increased criticism against the edtech firm for aggressively pitching its courses through its on-field sales push. (Read More)
Bitcoin, ether, dogecoin, other crypto prices today fall. Check latest rates
Bitcoin price today gained to trade above $21,000 even as the world’s largest and most popular digital token was trading with cuts of nearly a per cent at $21,102. It crossed the level on Saturday, first since November 8, 2022. The price of Bitcoin was stuck in a narrow range around $16,000 to $17,000 for weeks before the latest breakout. The global cryptocurrency market cap today was up almost flat in the last 24 hours to $1.02 trillion, as per the data by CoinGecko.
“BTC is currently trading around the $21,000 mark, remaining relatively stable over the last 24 hours. It experienced a significant increase of 25% already this year, with most of the gains happening since last Tuesday when it was hovering around $17,400. This surge is likely driven by renewed investor confidence in the U.S. central bank’s ability to control inflation without harming the economy. Ether, following a similar pattern to Bitcoin, has also seen an increase in value, reaching a two-month high before falling slightly. On the other hand, MANA, the native token of the 3D virtual reality platform Decentraland, has increased by more than 16%,” said CEO and Co-founder, Edul Patel, Mudrex. (Read More)
Sensex start flat at the preopen session; ONGC, Reliance, Siemens India, NTPC in focus
Geojit Financial Services views on today’s market: FIIs are playing it safe by moving money to cheaper markets where there is valuation comfort
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: The dominant trend impacting the near-term texture of the market is the sustained selling by FIIs for the eleventh time this month. There is selling even in bluechip names like HDFC Bank, that too, after impressive Q3 results. The simple logic behind sustained FII selling is that India is the only large market where FIIs are still sitting on good profits after the disastrous 2022 performance in most global markets. FIIs are playing it safe by moving money to cheaper markets where there is valuation comfort. The sustained FII selling has turned the near-term structure of the market weak. The best investment strategy in the present weak market would be to systematically buy high-quality large-caps in performing sectors like banking, capital goods, telecom and construction-related segments. Soon, India’s strong fundamentals will bring cheer to the market.
Reliance Securities Stock in Focus for Today: ABB
STOCK IN FOCUS
ABB (CMP 2,872): In view of strong capex uptick, high earnings growth and backing by ABB global, we have our BUY rating with a Target Price of Rs3,500.
POWERGRID (PREVIOUS CLOSE: 216) BUY
For today’s trade, long position can be initiated in the range of Rs212-214 for the target of Rs220 with a strict stop loss of Rs210.
LT(PREVIOUS CLOSE: 2137) SELL
For today’s trade, short position can be initiated in the range of Rs2150- 2160 for the target of Rs2105 with a strict stop loss of Rs2180.
BANKBARODA (PREVIOUS CLOSE: 186) SELL
For today’s trade, short position can be initiated in the range of Rs187- 189 for the target of Rs181 with a strict stop loss of Rs191.
Oil Extends Decline Ahead of Chinese GDP Data and OPEC Outlook
Oil dropped as investors waited for data on China’s economy and a market outlook from the Organization of Petroleum Exporting Countries that may yield clues about supply and demand in 2023.
Global benchmark Brent fell toward $84 a barrel after shedding 1% on Monday. Beijing is due to release fourth-quarter economic growth data. The figures are expected to show a marked slowdown even as most traders look ahead to a likely rebound in energy demand following the dismantling of virus curbs.
In addition to the backward-looking data from China, OPEC is scheduled to release its monthly analysis of the global oil market. The wider 23-nation OPEC+ group agreed to collectively reduce supplies by 2 million barrels a day from November, and then hold steady for the rest of this year.
Crude has had a rocky start to 2023, sinking in the opening week on concerns over a global slowdown before rebounding. Aside from China, oil has found support from growing expectations that the Federal Reserve is nearing an end to its aggressive series of interest-rate hikes and a weakening dollar. (Bloomberg)
INDIA BONDS-Bond yields seen little changed ahead of state debt sale
Indian government bond yields may remain largely unchanged in early session on Tuesday as traders await supply through sale of debt from states.
The benchmark 10-year yield could move in a range of 7.31%-7.35%, a trader with a private bank said. The yield ended higher at 7.3283% on Monday, the second consecutive session of rise.
Bond yields have corrected again after last week’s fall, and with a very small quantum of the state debt, it should not make any material difference to the overall supply-demand dynamics, the trader said.
Four Indian states aim to raise 67 billion rupees ($820.27 million) through the sale of bonds against the scheduled 220 billion rupees.
Indian states may not borrow as much as the record 3.41 trillion rupees in the January-March quarter, which will help keep the spread between state and central government bond yields in check, analysts had said after the release of state debt calendar for this quarter. (Reuters)
Stocks to Watch: ONGC, Reliance, NTPC, Siemens, Dabur, Paytm, BoM, JSW Ispat Special Products, Samvardhana Motherson, Coal India, and Spencer Retail
ICICI Prudential, ICICI Lombard, Bank of India, Delta Corp, Tata Investment Corp, and Metro Brands will be among the stocks in focus as they declare their December quarter earnings today. (Read More)
Gold prices seen rising towards record highs as rate rises near end
Gold prices are expected to rise towards record highs above $2,000 an ounce this year, albeit with a little turbulence, as the United States slows the pace of rate hikes and eventually stops increasing them, according to industry analysts. Spot prices of the precious metal have shot above $1,900 an ounce, surging by about 18% since early November as inflationary pressures recede and markets anticipate less aggressive monetary policy from the U.S. Federal Reserve.
Fast-rising interest rates hammered gold prices last year, kicking them as low as $1,613.60 in September from a high of $2,069.89 in March – just shy of a record peak in 2020. (Read More)
Federal Bank share price target raised after strong Q3 results. What brokerages recommend
Private sector lender Federal Bank posted a 54% rise in its profit at ₹804 crore in the third quarter ended December 2022 (Q3FY23), on higher net interest income and improved asset quality. The bank had posted a net profit of ₹522 crore in the same quarter a year ago.
The bank’s net Interest Income (NII), the difference between interest earned and expended, for the quarter grew by over 27% to ₹1,957 crore from 1,539 crore in the year ago quarter. Federal Bank reported a strong quarter – third in a row. Given Federal’s notable RoA expansion in 9MFY23E, analysts at Edelweiss are confident the bank can deliver strong earnings and RoA ahead. (Read More)
JSW Ispat Special Products Q3 net loss widens to ₹97.98 crore
JSW Ispat Special Products Limited (JISPL) on Monday said its consolidated net loss widened to ₹97.98 crore in the December quarter.
The company had posted a ₹27.12 crore net loss in the year-ago period, according to a statement.
Its total income fell to ₹1,110.33 crore from ₹1,476.46 crore during the October-December period of the previous year.
Debt-laden Monnet Ispat & Energy Limited (MIEL) was acquired jointly by a consortium of Aion Investments Private Limited (AION) and JSW Steel Limited and later renamed as JSW Ispat Special Products Limited. (PTI)
Airlines face hurdles to cashing in on China re-opening
US and European airlines will benefit from pent-up demand for travel to China after its recent border reopening, but route approvals, fresh COVID-19 testing rules and not enough large aircraft remain barriers to rising sales, analysts and industry officials say.
Travel is returning to China, the world’s largest outbound tourism market worth $255 billion in 2019, after the country ended mandatory quarantines on Jan. 8. Airfares from China are now 160% higher than before the pandemic, data from travel firm ForwardKeys shows, due to limited supply. (Read More)
Global recession likely in 2023: World Economic Forum survey
With geopolitical tensions continuing to shape the global economy and anticipate further monetary tightening in the United States and Europe, a majority of the World Economic Forum’s Community of Chief Economists have expected a global recession in 2023. The findings were found in the The January 2023 Chief Economists Outlook’ by the World Economic Forum’s Centre for the New Economy and Society.
As per the survey, almost two-thirds of chief economists believe a global recession is likely in 2023; of which 18% consider it extremely likely – more than twice as many as in the previous survey conducted in September 2022. A third of respondents consider a global recession to be unlikely this year. (Read More)
BoM to raise up to ₹1,000 crore through QIP in Q4FY23
The state-owned Bank of Maharashtra (BoM), which reported solid Q3 results, announced on Monday that it aims to raise up to ₹1,000 crore via qualified institutions placement (QIP) in the January-March quarter pr Q4FY23 in order to comply with Sebi’s minimum public shareholding (MPS) standards. A S Rajeev, managing director of BoM, stated that the bank has commenced the procedure to comply with Sebi’s (the Securities and Exchange Board of India) regulations.
“It will be done in a piecemeal manner and we are looking at QIP between ₹500 and ₹1,000 crore in the current quarter,” MD said by adding that going forward other means would be explored for dilution of the government’s stake. (Read More)
HDFC Bank to miss quarterly deposit target of ₹1 trillion
HDFC Bank’s plan to ramp up its deposit mobilization to ₹1 trillion per quarter may hit a wall, as the pricing war over deposits heats up, analysts said. The private sector lender, which is in a merger process with its parent HDFC Ltd, had set the target during a roadshow in September. The management sought to mop up ₹4 trillion, or roughly 25% of its current deposit base, per year.
However, the third quarter earnings reveal that it fell short of its expectations. At the end of December, the bank posted an incremental deposit growth of ₹59,796 crore, compared to ₹68,648 crore in the previous quarter. Its total deposit book stood at ₹17.3 trillion as of 31 December. (Read More)
India to boost coal imports to cope with harsh weather, freight snags
India’s power utilities will likely boost coal imports this year to cope with surges in demand, made worse over the past year by extreme temperatures, and with freight bottlenecks that are disrupting domestic coal supplies, analysts and officials said. A steady rise in industrial electricity use in recent years has left utilities in India, one of the world’s fastest growing major economies and the second-largest coal consumer and importer, with limited leeway to confront extraordinary demand or hiccups in supply. (Read More)
Centre cuts windfall tax on crude oil to Rs1,900 per tonne
The union government has lowered the windfall tax on the sale of locally-produced crude oil to ₹1,900 per tonne from ₹2,100 per tonne after a gap of two weeks. Centre has also reduced additional excise duty on the export of aviation turbine fuel (ATF) to ₹3.5 per litre from earlier ₹4.5 per litre and has reduced export duty on diesel to ₹5 per litre, including cess, from the previous levy of ₹6.5 per litre, said a finance ministry notification.
Global oil prices have largely been subdued of late. At the time of writing the story, the March contract of Brent on the Intercontinental Exchange is at $84.44 per barrel, lower by 0.99% from its previous close. (Read More)
European shares shine on Monday, dollar dims as BOJ battles bond bears
Stocks continued their new year rally on Monday as optimism over the global economy, inflation coming under control and China’s reopening offset concerns the Bank of Japan (BOJ) might temper its super-sized stimulus policy at a pivotal meeting this week.
The yen climbed to its highest since May after rumours swirled the BOJ might hold an emergency meeting on Monday as it struggles to defend its new yield ceiling in the face of massive selling, sending the dollar to a seven-month low.
The region’s STOXX 600 benchmark rose 0.3% by 1145 GMT driven by healthcare stocks which gained 0.6%, and Britain’s FTSE at 7856 inched towards a record 7903.
MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.37%, with hopes for a speedy Chinese reopening giving it a gain of 4.2% last week.
The fragile rally in equities that has characterised the opening weeks of the year could be tested from a number of angles this week, however, as world leaders, policymakers and corporate CEOs gather for the World Economic Forum (WEF) in Davos. (Reuters)
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