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Think Ahead with EZWealth – 18 Oct 2021
[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]The benchmark indices hit fresh highs on Thursday as earnings reports of information technology (IT) majors and positive macroeconomic data released this week kept investor sentiment buoyant. The positive mood helped offset concerns about imminent interest rate hikes by the US Federal Reserve following the stronger-than-expected consumer inflation data in the US.
Gaining for the sixth straight session, the Sensex rose 569 points, or 0.9 per cent, to end at 61,306. The Nifty, on the other hand, surged 177 points to end the session at 18,338. The strong numbers posted by Infosys, Wipro, and Mindtree dissipated worries that arose after TCS’s results.
The RBI’s dovish stance, reports of an emergency nod for the Covid-19 vaccine for children, and the International Monetary Fund’s projections that India would retain its fastest-growing economy tag fuelled positive sentiments during the week. Both the benchmark indices ended the truncated week with more than 2 per cent gains.
Stats from last trading day:
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News Today:
1) In a major reform initiative, the seven state-run defence companies were created after dissolving the over 200-year-old Ordnance Factory Board (OFB). The assets of the OFB including its 41 ordnance factories were transferred to the seven new firms.
Modi mentioned that the target should be that the companies not only establish expertise in their products but also become global brands. He urged that while competitive cost is India’s strength, quality and reliability should be its identity.
The new defence companies are Munitions India Limited (MIL), Armoured Vehicles Nigam Limited (AVANI), Advanced Weapons and Equipment India Limited (AWE India), Troop Comforts Limited (TCL), Yantra India Limited (YIL), India Optel Limited (IOL) and Gliders India Limited (GIL).
2) The central government is likely to exceed the budgeted tax collection target of Rs 22.2 trillion for the current fiscal year, led by better indirect tax mop-up, compliance measures, and recovery in most sectors following the second wave of the Covid pandemic. It, according to experts, may overshoot the target by Rs 2.5 trillion.
Personal income and corporate tax collections (net of refunds) grew 74 per cent to Rs 5.70 trillion in the first half of the current financial year, driven mainly by advance tax and TDS payments. The target for the current fiscal year is Rs 11.08 trillion; higher taxes are paid usually towards the end of a fiscal year. The GST mop-up is expected to remain above the Rs. 1.1 trillion-mark a month as the festive season is set to see an improvement in consumer spending.
3) Base metals surged, led by zinc, which spiked to the highest since 2007, after European smelters became the latest casualties in a global energy crisis that’s knocking supply offline and heaping pressure on manufacturers.
Zinc rose as much as 6.9 per cent on the London Metal Exchange, and a gauge of six industrial metals rapidly closed in on an all-time high. Aluminium, one of the most energy-intensive commodities, is at the highest since 2008. Copper bounced closer to the $10,000-a-tonne mark, and spreads are pointing to a sharply tighter market — spot copper contracts are trading at the biggest premium over futures in nearly a decade as global inventories shrink.
Metal supply cuts are spreading from China to Europe, as energy shortages drive up costs for electricity and natural gas, threatening more inflationary pressure from rising commodity prices. The latest big catalyst came on Wednesday when Nyrstar – one of the biggest zinc producers – said it will cut output at three European smelters by up to 50 per cent due to rising power prices and costs associated with carbon emissions.
4) The government is aiming to lay the foundation of the country’s first semiconductor manufacturing unit by June-July next year and a request for proposal (RFP) will soon be floated seeking commercial bids from companies. The quantum of incentives will be decided after seeking feedback from the companies operating in this space, sources said.
“The semiconductor dream of India will be fulfilled soon. It’s the Prime Minister’s dream to have semiconductors designed and made in India. We are working on developing the complete semiconductor ecosystem – for designing, manufacturing and packaging semiconductor chips,” communications and IT minister Ashwini Vaishnaw said.
The need for having local chip manufacturing facilities is felt even today with the ongoing global chip shortage, which is hurting industries across sectors, as electronic items are needed in every segment these days.
5) Bitcoin hit $60,000 for the first time in six months on Friday, nearing its record high, as traders grew confident that U.S. regulators would approve the launch of an exchange-traded fund (ETF) based on its futures contracts. Cryptocurrency investors have been waiting for approval of the first U.S. ETF for bitcoin, whose recent rally has been fuelled in part by anticipation of such a move, which is seen as speeding up the mainstream adoption of digital assets.
Bitcoin, the world’s biggest cryptocurrency, rose 4.5% to its highest level since Apr. 17 and was last at $59,030. It has risen by more than half in value since Sept. 20 and is now close to its all-time high of $64,895. The U.S. Securities and Exchange Commission (SEC) is set to allow the first U.S. bitcoin futures ETF to begin trading next week
Stocks in the news today:
Results on October 18: Ultratech Cement, Larsen & Toubro Infotech, Route Mobile, Alok Industries, Concord Drugs, Craftsman Automation, Gujarat Hotels, Hathway Bhawani Cabletel & Datacom, Hatsun Agro Products, International Travel house, Tanfac Industries, Tata Coffee
HDFC Bank on Saturday reported a 17.5% year-on-year growth in net profit in the second quarter of FY22. The bank’s net profit stood at ₹8,834.31 crore for the quarter ended September, compared to ₹7,513.11 crore during the same period last year.Net interest income, or core income, rose 12% year-on-year to ₹17,684 crore. Other income too rose 21.5% from a year ago to ₹7,401 crore. The bank’s asset quality improved on a sequential basis, with gross non-performing asset ratio at 1.35%, as compared with 1.47% as of June 30. Net NPA ratio too fell 8 basis points quarter-on-quarter to 0.4%. Total provisions for the bank rose marginally, by 6% year-on-year, to ₹3,925 crore.
Aviation regulator DGCA has temporarily suspended SpiceJet‘s licence for the transportation of ‘dangerous goods’ for alleged violations, according to sources. The suspension is for 30 days, and during this period, SpiceJet will not be allowed to carry dangerous goods, including lithium-ion batteries, on its domestic as well as international flights
Indiabulls Real Estate Ltd‘s (IBREL) sales bookings jumped over two-fold to Rs 874 crore during the first six months of this fiscal year on revival of housing demand. According to an investors presentation, new sales stood at Rs 874 crore in the first half of this fiscal year from Rs 368 crore in the corresponding period of the previous year. The gross collection also rose to Rs 654 crore during April-September period from Rs 284 crore in the year-ago period.
Reliance Industries (RIL) might collaborate with leading global players over fuel cells, carbon capture and storage, and green ammonia as part of its gigantic plans for renewables. Morgan Stanley Asia Pacific Insight, which tracks the group’s foray into renewables, has identified Canada-based Ballard Power as one of its potential collaborators in fuels cells, Saudi Aramco for green ammonia and Siemens Green Energies for carbon capture and storage.
PNB Housing Finance on Thursday said that its board has decided to terminate the ₹4,000 crore stake sale to a clutch of investors led by Carlyle Group, citing delays caused by pending legal proceedings. In an exchange filing, the mortgage lender said that Carlyle Group affiliate Pluto Investments initiated the process to withdraw the open offer after the housing finance company decided against proceeding with the preferential allotment. The investment by Carlyle was crucial for PNB Housing to boost lending amid the rising demand for home loans and low interest rates. With the cancellation of the deal, the mortgage lender will have to explore other funding sources to support growth. The company has received shareholders’ approval to raise ₹35,000 crore by selling non-convertible debentures.
The Adani Group has taken over the operation, management and development of the international airport in Thiruvananthapuram, saying it is now a Gateway to Goodness. Announcing the formal takeover of the airport, the business giant said in a tweet that it was privileged to serve and welcome passengers to God’s Own Country.
HCL Technologies (HCL Tech) on Thursday reported 3.9 per cent profit in the second quarter (Q2) ended September. The IT firm’s forecast for double-digit constant currency growth in the current financial year remains unchanged. HCL said its Q2 revenue was Rs 20,655 crore, up 2.9 per cent sequentially, and 11.1 per cent year-on-year. Net income for the quarter was Rs 3,265 crore, a rise of 1.6 per cent quarter-on-quarter, and 3.9 per cent annually. The firm continues to expect 2021-22 (FY22) revenue to grow in double digits in constant currency, while earnings before interest and tax (EBIT) margin is expected to be between 19 and 21 per cent for FY22. EBIT margin in the September quarter fell 0.4 per cent to 19 per cent.
IT company Cyient on Thursday posted a 44.57 per cent jump in consolidated net profit to Rs 121.3 crore for the quarter ended on September 30, 2021, compared to Rs 83.9 crore in the same period a year ago. Consolidated revenue from operations increased by 10.79 per cent to Rs 1,111.6 crore during the reported quarter compared to Rs 1,003.3 crore in the corresponding quarter of 2020-21, according to a regulatory filing by the company.
White House announcing reopening of the US for vaccinated travellers from November 8 is a welcome move for the travel companies. Thomas Cook and Ease My Trip official commented on it being a welcome move.
Dixon Technologies has started manufacturing 5G millimetre waves smartphones which will be the first set of devices in the segment to be exported from India
Route Mobile has received shareholders approval to raise Rs. 2000 crore through sale of securities
Avenue Supermarts, which owns and operates retail chain D-Mart, reported two-fold increase in its consolidated net profit to Rs 418 crore for the second quarter ended September 2021
Metropolis Healthcare said its borad has approved the acquisition of Hitech Diagnostic Centre and its subsidiary Centralab Healthcare Services for a cash consideration of Rs 636 crore
Reliance Brands will pick a 40% minority stake in renowned fashion designer Manish Malhotra’s MM Styles[/vc_column_text][vc_column_text]
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