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Think Ahead with EZWealth – 19 Oct 2021
[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]India’s benchmark indices gained for a seventh straight session on Monday even as global stocks were mostly flat after a relentless rise in oil and other commodity prices stoked inflation concerns. This is the longest winning streak for the domestic markets in nearly 10 months.
The surge on Monday was aided by gains in index heavyweight Infosys, which rose 4.5 per cent and made a 255-point contribution to the Sensex’s gain. ICICI Bank rose 2.5 per cent and made a 112-point contribution. The overall market breadth was weak, with 12 of the 30 Sensex components ending with losses amid weak global cues.
Brent crude prices hovered around seven-year highs, while several base metals hit fresh record highs, sparking concerns of high inflation. The 10-year US treasury yields rose to 1.6 per cent. Yields on the domestic 10-year government security also hardened by 6 basis points to 6.389 per cent.
China’s economic data also weighed on sentiment. The gross domestic product (GDP) of the world’s second-largest economy grew 4.9 per cent in the September quarter, the weakest pace since the third quarter of 2020. The tepid Chinese macro numbers, fuel price rise, and global energy crisis have raised global economic recovery concerns.
Experts said investors globally continued to worry that energy shortages and supply-chain disruptions would drive up living costs in most economies at a time when central banks were inching closer to tapering.
Stats from the 18th Oct 2021, Monday:
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News Today:
1) The Department of Telecommunications (DoT) has asked Bharti Airtel, Vodafone Idea and Reliance Jio to inform the government by October 29 whether they would opt for the four-year moratorium on adjusted gross revenue- (AGR-) related dues, which is part of the relief package approved last month. Further, three months have been given to service providers to respond on whether they would choose the option of converting accrued interest due to the deferred payments into equity. Companies opting for the moratorium proposal will have to furnish their audited financial statements.
On September 15, the Union Cabinet approved a relief package for the telecom sector, which included a four-year moratorium on AGR and spectrum payments, reduced bank guarantees and the option of converting operators’ principle statutory dues owing to the deferred payment into equity at the end of the moratorium period — or after four years. The relief package is expected to give a boost to current players, besides attracting international investment, for which 100 per cent foreign direct investment (FDI) under the automatic route has been permitted in the telecom sector, with all safeguards.
2) Finance ministry officials will likely meet senior executives of Fitch Ratings this week and impress upon the global agency to upgrade its India rating. Economists expect the agency to at least raise its India outlook from “negative” to “stable” in the wake of improving fiscal metrics and Covid vaccination drive.
In June 2020, Fitch had trimmed its India outlook to “negative”, citing a sharp Covid-induced deterioration of the country’s growth and fiscal position. However, it has retained its India rating at the lowest investment grade of BBB- for well over a decade.
The meeting with Fitch comes barely days after another global rating agency, Moody’s, revised up its India outlook to “stable” from “negative” after almost two years. S&P, which has retained a similar rating for India, said in May it saw no change in the country’s rating for the next two years. Finance ministry officials believe India more than deserves a rating upgrade, as the economy has witnessed a “V-shaped recovery” since the second half of FY21, despite the onslaught of the second Covid wave. The economy grew 20.1% in the first quarter of this fiscal, albeit driven by base effect, and the recovery will remain strong in the coming quarters as well, official sources assert.
3) The country’s exports rose by 40.5 percent to $15.13 billion during October 1-14 on account of healthy performance by key sectors such as petroleum products, engineering and chemicals, according to preliminary data of the commerce ministry. Imports during the period grew by 60.72 percent to $14.82 billion, the data showed.
India’s merchandise exports grew by 22.63 percent year-on-year to $33.79 billion in September on better performance by key sectors, even as the trade deficit widened to a record high of $22.59 billion. Export sectors which are recording positive growth include coffee, cashew, petroleum products, handloom, engineering, chemicals, man-made yarn/fabrics, gems and jewellery, plastic and marine products. Cumulatively, exports rose by 57.53 percent to $197.89 billion during April-September this fiscal as against $125.62 billion during April-September 2020.
4) Protracted rains have taken a toll on highway construction, one segment that has consistently been weathering the broader economy’s travails and even the pandemic shock. Highway Construction fells to its lowest in three years to a little over 21 km per day during the April- September period of the current fiscal, compared with an average of 22km/day in the same period last ear and the peak of 25.67 km/day in the comparable pre-pandemic period of April September 2019
5) Showing signs of recovery, housing sales across eight major cities registered an annual growth of 59% during July-September at 55,907 units, but demand jumped over three-fold against the previous quarter, according to PropTiger.com. Sales stood at low levels at 35,132 units in the July-September last year and 15,968 units in the previous quarter because of the adverse impact of the first and second wave of the Covid pandemic. In its report ‘Real Insight (Residential) -July-September (Q3) 2021’, PropTiger, one of the leading housing brokerage firms, said the demand for residential properties bounced back after the second wave.
This is the fourth report on quarterly housing sales of major primary property markets by different property consultants. Bengaluru saw a 36% increase in sales to 6,547 units from 4,825 units. Sales of residential properties in Chennai doubled to 4,665 units from 2317 units. The growth in housing sales remained muted in the Delhi-NCR market, which witnessed sales of 4,458 units as against 4,427 units in the year-ago period. In Hyderabad, sales more than doubled to 7,812 units from 3,260 units. Housing sales in Kolkata rose 7% to 2,651 units from 2,479 units. Mumbai saw a 92% increase in sales to 14,163 units from 7378 units. Housing sales in Pune grew 43% to 10,128 units in July-September 2021 from 7,107 units in the corresponding period of last year.
Stocks in the news today:
Results on October 19: Hindustan Unilever, Nestle India, 5paisa Capital, ACC, Consolidated Construction Consortium, DCM Shriram, Heidelbergcement India, ICICI Prudential Life Insurance Company, ICICI Securities, JSW Ispat Special Products, Jubilant Ingrevia, L&T Technology Services, Mastek, Navin Fluorine International, Nelco, Network18 Media & Investments, Oriental Hotels, Rallis India, Rane Brake Lining, Shakti Pumps, Standard Industries, Sonata Software, Tata Steel Bsl, and TV18 Broadcast are slated to release their September quarter earnings on October 19.
The National Company Law Tribunal (NCLT) on Monday allowed Reliance Retail Ventures Ltd (RRVL) and Reliance Retail & Fashion Lifestyles Ltd (RRFLL) to hold extraordinary general meetings (EGMs) of their shareholders and creditors to acquire Future Group’s businesses. The NCLT said the objections raised by American retail giant Amazon were premature and could be dealt with later. On September 28, the NCLT had allowed six Future Group companies to hold meetings of their respective shareholders and creditors. Lawyers said the NCLT permission to hold the meeting was a preparatory step. The Supreme Court will take the final decision.
Telecom operator Vodafone Idea (VIL) and smart world and communication business of engineering and construction conglomerate Larsen and Toubro (L&T) have joined hands for a pilot project to test 5G-based smart city solutions, according to a statement. This is part of the ongoing 5G trials on government-allocated spectrum.
Tata Coffee on Monday reported a 26.55 per cent growth in consolidated net profit during the September quarter at Rs 53.66 crore. The company’s consolidated net profit during the corresponding quarter of the previous fiscal stood at Rs 42.40 crore. Total income grew by 1.40 per cent during the second quarter of this fiscal to Rs 554.32 crore, compared to Rs 546.63 crore earlier.
Sterlite Power on Monday said it has bagged Nangalbibra -Bongaigaon inter-state power transmission project worth Rs 324 crore. The project elements consist of a new 220/132 kV substation at Nangalbibra and laying of 130 km of 400kV D/c transmission line connecting Bongaigaon in Assam to Nangalbibra in Meghalaya across the river Brahmaputra, it added. The project will also have 20 km of 132kV D/c line connecting Hatsinghmari in Assam to Ampati in Meghalaya. With this project win, Sterlite Power now has a portfolio of 26 projects across India and Brazil, which includes projects under various stages of development and those that have been sold. The company is focused on integrating renewable energy sources to the transmission grids.
Aditya Birla group firm UltraTech Cement Ltd on Monday reported a consolidated net profit of Rs 1,310.34 crore for the quarter ended in September 2021 against Rs 1,310.06 crore in the year-ago quarter on account of sharp rise in coal and pet coke prices. However, its revenue from operations was up 15.69 per cent to Rs 12,016.78 crore during the quarter under review as against Rs 10,387.14 crore in the corresponding period of the last fiscal, UltraTech Cement said in a BSE filing. UltraTech Cement’s total expenses were at Rs 10,209.43 crore, up 17.02 per cent in the second quarter of 2021-22 as against Rs 8,724.43 crore in the year-ago period.
LTI (Larsen & Toubro Infotech) on Monday reported net profit of Rs 552 crore for the second quarter ended September 30, 2021, up 21 per cent year-on-year and 11 per cent sequentially. Strong demand led to revenue at Rs 3,767 crore, up 25.6 per cent yoy and 8.8 per cent sequentially. The management said that this was the strongest sequential growth the company has witnessed, taking its annual revenue run rate to cross $2 billion.
HG Infra Engineering: The company been declared as L-1 bidder by National Highways Authority of India (NHAI) for two HAM projects.
Smartlink Holdings: Subsidiary Synegra EMS has received approval from the Government of India under the Production Linked Incentive (PLI) Scheme for manufacturing of telecom and networking products in India under the MSME category.
Indian Energy Exchange | The company will consider bonus share issue on October 21.
TTK Prestige | The company will consider the proposal of stock split on October 27.
Craftsman Automation | The company reported higher consolidated profit at Rs 49.96 crore in Q2FY22 against Rs 22.83 crore in Q2FY21, revenue jumped to Rs 571.01 crore from Rs 370.72 crore YoY.
Hatsun Agro Products | The company reported higher profit at Rs 82.09 crore in Q2FY22 against Rs 65.78 crore in Q2FY21, revenue rose to Rs 1,635.41 crore from Rs 1,327 crore YoY.
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