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Market Today with EZWealth – 19 Oct 2021
[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]Domestic stocks advanced on Tuesday morning, tracking an overnight rise in US stocks. But upside in key indices was largely capped as traders were cautious after seven days of relentless buying. The fact that technical charts were suggesting an overbought situation for the market made analysts believe a consolidation is imminent. At 12:20PM, Nifty is trading up at 18580, Sensex at 62184 and Nifty Bank at 39880
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1) The global solar sector, including the Indian market, has witnessed total corporate funding of USD 22.8 billion in the January-September 2021 period, registering a nearly three-fold jump over the previous year, according to a report. Corporate funding includes venture capital (VC) funding, public market and debt financing, Mercom Capital Group said in the report on Monday.
The total corporate funding increased 190 per cent in the first nine months of 2021, with USD 22.8 billion in 112 deals as compared with USD 7.9 billion in 72 deals in the same period of 2020, the global clean energy communications and consulting firm said. The global solar sector brought in USD 2.2 billion in VC funding in 39 deals, registering a rise of 466 per cent compared to USD 394 million in 29 deals during January-September 2020. Public market financing into the solar sector came to USD 6.3 billion raised in 23 deals, up 209 per cent compared with USD 2 billion in 10 deals in the year-ago period.
The largest M&A transaction was by Adani Green Energy Ltd (AGEL), which agreed to acquire a 100 per cent stake in SB Energy India from Soft Bank Group (80 per cent) and Bharti Group (20 per cent). The transaction values SB Energy India at an enterprise valuation of about USD 3.5 billion.
2) Coal futures in China surged to another record to put a previously unthinkable level of 2,000 yuan ($311) a ton in sight, as a cold blast adds to the country’s energy crisis. Cool weather has descended on eastern China, sparking an early start to the winter heating season in some areas. That’s boosting demand for coal with inventories already low and electricity being curtailed to some industrial users.
The most-active contract on the Zhengzhou Commodity Exchange rose as much as 6% to 1,937.8 yuan ($302) a ton Tuesday. Futures have gained more than a third since the end of September and have closed at a record high in six consecutive sessions. The continued gains come even as China urges its mining giants to boost output to ensure supplies for winter heating, and as it raises electricity prices and curtails use for some industrial consumers. Guangxi province, a major alumina and aluminum producer in southern China, announced Sunday it will impose a 50% premium on electricity prices for the most energy-intensive industries.
3) Sales at large fast-moving consumer goods (FMCG) companies such as Hindustan Unilever, Nestle, Marico, Tata Consumer, Dabur, and Godrej Consumer are expected to have risen at double-digit pace in the September quarter due to recoveries in key segments like packaged foods and personal care as well as higher rural demand.
But profit margins are expected to shrink by as much as 100 basis points owing to spiralling commodity costs, HUL, Marico, Dabur, ITC, Nestle and Tata Consumer will announce quarterly earnings in the next two weeks. Strong demand and double-digit growth in the top line are expected to reflect in the quarter, which coincides with monsoons, with India’s rural markets having recovered from the second wave of Covid-19, aided by higher farm incomes and reverse migration of the workforce. While companies raised prices 5-15% to offset commodity price inflation in the quarter, which may contribute to growth partially, analysts said margin pressures would persist.
4) India’s diesel consumption is gathering pace with the onset of annual festivals, boosting sales to pre-pandemic levels in the first half of October in a sign that the economy is bouncing back. The top three Indian fuel retailers sold 2.41 million tons of diesel Oct. 1-15, just 0.9% less than the corresponding period of 2019, according to preliminary figures from officials with direct knowledge of the matter. The sales were 14.5% higher than the same period a month earlier, they said, asking not to be named as the information is not public. The nation’s month-long festival season — typically during October and November — is a busy time for diesel-guzzling trucks hitting the roads to deliver everything from clothes to refrigerators across the country. Reopening of schools and crop-harvest
Diesel accounts for almost 40% of total oil product demand in the nation, and a rebound will boost refinery operations and crude imports by the world’s third-biggest oil consumer. The International Monetary Fund sees India’s gross domestic product expanding 9.5% in the year to March after contracting 7.3% last year.
5) After an extended period of subdued growth, non-food bank credit is growing at its fastest pace in nearly two years, as the economy recovers from second Covid-19 wave. Credit growth could strengthen further as banks try and capture the festive demand from retail customers. For the fortnight ended Sept. 24, outstanding non-food credit of scheduled commercial banks rose 6.75% year-on-year, according to the Reserve Bank of India data. Banks had last seen a year-on-year credit growth of 7% or above in December 2019. CARE Ratings Ltd. estimates that bank credit growth for the year will rise further to a range of 7.5-8%. This will be aided by a low base, economic expansion, extended support from government schemes like the emergency credit-linked guarantee and improved demand for retail credit.
While state-run banks are typically slower to return to growth, they’re being pushed by the government to lend. Each bank has shortlisted lead districts where they see maximum business and are rolling out outreach programmes over October and November, the banker said. These will target retail, agriculture and small business borrowers.
6) TV viewers may have to shell out up to 50% more for the same number of TV channels starting December 1 after top four broadcasters – Star & Disney India, Zee Entertainment Enterprises (ZEE), Sony Pictures Networks India (SPN) and Viacom18 – updated their channel pricing in compliance with the amended tariff order (NTO 2.0).
Experts said that the price hike is an unintended consequence of the new tariff regulations for the TV broadcast sector – meant to reduce the consumers’ monthly cable or DTH (direct-to-home) bill. The Telecom Regulatory Authority of India (TRAI) was of the view that NTO 2.0 would allow viewers more choice and freedom to select and pay only for the channels that they want to watch.
7) India’s exports of major 37 agriculture and processed products, promoted by Agricultural and Processed Food Products Export Development Authority (Apeda), jumped 18% to $10 billion during the first half of the current fiscal from the year-ago period as wheat, maize, meat, dairy and poultry products registered impressive growth. The overall export of Apeda products was $8.51 billion in April-September 2020.
Export of rice, both basmati and non-basmati, recorded 12.3% growth to $4.59 billion in April-September 2021. But there was a 110% jump in other cereals like maize and wheat at $448 million during H1 FY22. The export of meat, dairy and poultry products increased 20.7% to $1.9 billion during H1 FY22. Similarly, cashew export witnessed an impressive 31.6% growth at $222 million. As per the Quick Estimates, the exports of fresh fruits and vegetables registered an 8.5% growth at $1.3 billion while shipment of processed food products like cereals preparations and miscellaneous processed items increased 34.2% at $1.07 billion.
8) India logged 13,058 new coronavirus infections, the lowest in 231 days, taking the total tally of COVID-19 cases to 3,40,94,373, according to the Union Health Ministry data updated on Tuesday.
The death toll climbed to 4,52,454 with 164 fresh fatalities, while the active cases declined to 1,83,118, the lowest in 227 days, according to the data updated at 8 am. The daily rise in new coronavirus infections has been below 30,000 for 25 straight days and less than 50,000 daily new cases have been reported for 114 consecutive days now. The active cases comprise 0.54 per cent of the total infections, the lowest since March 2020, while the national COVID-19 recovery rate was recorded at 98.14 per cent, the highest since March 2020, the ministry said.
Stocks in the news:
Dixon Technologies’ wholly owned subsidiary, Padget and a US based smartphone manufacturer Orbic have entered into agreement for manufacturing of smartphones at Padget’s manufacturing facility situated at Noida.
L&T Infotech (LTI) has impressed the Street yet again with its stellar earnings performance. In the September quarter, the company reported a massive beat on revenue at $509 million, up 8.9% on a sequential basis in constant currency terms and ahead of the consensus estimate of 3.5% revenue growth. Growth was broad-based across verticals, geographies and service lines. Reacting to Q2FY22 earnings, shares of the company rose 10% on the NSE in Tuesday’s opening trade.
Indian Railway Catering and Tourism Corporation Ltd (IRCTC) has become the ninth public sector entity to join the elite club of ₹1 trillion market capitalization (m-cap) with its shares surging over 300% so far this year.
Larsen & Toubro Limited on Monday emerged as the lowest bidder for the construction and maintenance of the first three buildings of the Common Central Secretariat under the Central Vista redevelopment project. According to the Central Public Works Department’s bid documents, Larsen & Toubro Limited quoted around Rs 3,141 crore, which is 3.47 per cent less than the estimated cost.
Riding on the growing popularity of sport utility vehicles (SUV), Tata Motors % on Monday launched its smallest SUV Punch with the intention of wooing buyers of small cars at a starting price of Rs 5.49 lakh ex-showroom.
Den Networks: Net Sales at Rs 325.05 crore in September 2021 down 3.74% from Rs. 337.67 crore in September 2020. Quarterly Net Profit at Rs. 39.39 crore in September 2021 up 7.16% from Rs. 36.76 crore in September 2020. EBITDA stands at Rs. 84.07 crore in September 2021 down 18.84% from Rs. 103.58 crore in September 2020. Den Networks EPS has increased to Rs. 0.83 in September 2021 from Rs. 0.77 in September 2020.
Hatsun Agro: Net Sales at Rs 1,635.42 crore in September 2021 up 23.24% from Rs. 1,327.00 crore in September 2020. Quarterly Net Profit at Rs. 82.10 crore in September 2021 up 24.79% from Rs. 65.79 crore in September 2020. EBITDA stands at Rs. 210.71 crore in September 2021 up 7.92% from Rs. 195.24 crore in September 2020. Hatsun Agro EPS has decreased to Rs. 3.80 in September 2021 from Rs. 4.11 in September 2020.
Alok Industries: Net Sales at Rs 1,904.57 crore in September 2021 up 132.24% from Rs. 820.08 crore in September 2020. Quarterly Net Loss at Rs. 84.11 crore in September 2021 down 101.75% from Rs. 4,798.64 crore in September 2020. EBITDA stands at Rs. 120.12 crore in September 2021 up 780.18% from Rs. 17.66 crore in September 2020.
Indian Energy Exchange share price touched a 52-week high of Rs 956.15, gaining 20 percent intraday on October 19 as the company is to consider a proposal for the declaration of a bonus issue.
TTK Prestige touched a 52-week high of Rs 10,586, rising 20 percent intraday, on October 19 as the company’s board geared up to discuss sub-division of shares on October 27.[/vc_column_text][vc_separator][vc_column_text]
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