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Think Ahead with EZWealth – 20 Oct 2021
[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]The benchmark Sensex and the Nifty ended with losses for the first time in eight trading sessions amid losses in consumer stocks. Amid the reasons for the dip was the earning disappoint by FMCG major Hindustan Unilever. However gains in technology and banking sector helped offset some losses. The broader market saw a sharp correction. The Nifty Midcap 100 declined 2.2% while the Nifty Smallcap 100 fell 1.7%. With the exception of tech and energy, all BSE sectoral indices ended with losses. The BSE Realty and BSE FMCG indices declined the most at 4.6% and 3.1% respectively.
Stats from 19 Oct 2021:
[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_single_image image=”68009″ img_size=”large” alignment=”center” css=”.vc_custom_1634697896409{margin-top: 5px !important;margin-right: 5px !important;margin-bottom: 5px !important;margin-left: 5px !important;}”][/vc_column][/vc_row][vc_row][vc_column][vc_single_image image=”68010″ img_size=”large” alignment=”center” css=”.vc_custom_1634697978629{margin-top: 5px !important;margin-right: 5px !important;margin-bottom: 5px !important;margin-left: 5px !important;}”][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]News today:
1) The approval for Bharat Biotech’s Covaxin for use in children as young as two years may be some time away with India considering a phased roll-out of the vaccine for them.
India’s drug regulator is carefully examining the recommendation by the expert panel and evaluating several factors, sources close to the development said. The panel last week recommended granting emergency use authorisation to the vaccine for children in the 2-18 years age group. “There are several factors that are being considered by the Central Drugs Standard Control Organisation (CDSCO) like the performance of the vaccine in young adults. Also, there is an availability problem which is being evaluated,: said a government official.
Bharat Biotech has been struggling to ramp up supplies of its inactivated virus vaccine, and so far has contributed only 11 to 12% of India’s overall vaccination. Allowing it in the 2-18 years age group may create a sudden spike in demand for the jab, leading to an availability crisis for the elderly and vulnerable, the source said.
2) Global rating agency Moody’s has upgraded the outlook on the Indian banking system from “Negative” to “Stable” on the back of stabilising asset quality and improved capital. The deterioration of asset quality since the onset of the Coronavirus (Covid-19) pandemic has been moderate, and an improving operating environment will support asset quality. The level of problem loans for rated banks has moved down from 8.5 per cent in FY19 to 7.1 per cent in FY21.
Declining credit costs as a result of improving asset quality will lead to improvements in profitability and capital will remain above pre-pandemic levels, the rating agency said in a statement. The operating environment will be stable as the economy gradually recovers from the Covid-19 pandemic, said Moody’s. “India’s economy is expected to continue to recover in the next 12-18 months, with Gross Domestic Product (GDP) growing 9.3 per cent in FY22 and 7.9 per cent in the following year. The pickup in economic activity will drive credit growth, which we expect to be 10 per cent to 13 per cent annually,” the rating agency said.
3) Power shortages are turning out streetlights and shutting down factories in China. The poor in Brazil are choosing between paying for food or electricity. German corn and wheat farmers can’t find fertiliser, made using natural gas. And fears are rising that Europe will have to ration electricity if it’s a cold winter.
The world is gripped by an energy crunch — a fierce squeeze on some of the key markets for natural gas, oil and other fuels that keep the global economy running and the lights and heat on in homes. Heading into winter, that has meant higher utility bills, more expensive products and growing concern about how energy-consuming Europe and China will recover from the Covid-19 pandemic.
The biggest squeeze is on natural gas in Europe, which imports 90 per cent of its supply — largely from Russia — and where prices have risen to five times what they were at the start of the year, to ^95 euros from about ^19 per megawatt hour. It’s hitting the Italian food chain hard, with methane prices expected to increase sixfold and push up the cost of drying grains. “From October we are starting to suffer a lot,” said Valentino Miotto of the AIRES association that represents the grain sector.
Analysts blame a confluence of events for the gas crunch: Demand rose sharply as the economy rebounded from the pandemic, while a cold winter depleted reserves. The crunch is likely short term but it’s difficult to say how long higher fossil fuel prices will last, said Claudia Kemfert, an energy economics expert at the German Institute for Economic Research in Berlin.
4) India is forming a group that brings together state-run and private refiners to seek better crude import deals, oil secretary Tarun Kapoor said on Tuesday, as the country grapples with soaring oil prices. The world’s third-largest oil importer and consumer, India depends on imports for about 85% of its crude and buys most of it from Middle East producers.
Indian state refiners have already jointly negotiated some crude oil purchases. To date, the one effort at a joint negotiation bringing together not only state-run but private refiners resulted in a deal that secured supply of Iranian oil at a deep discount. With local gasoline and gasoil prices rising to a record high amid India’s worst power crisis in years, the nation wants to redouble its efforts to buy wisely. India’s trade deficit in September surged to a record $22.6 billion, its highest in at least 14 years, driven by expensive imports.
5) The first Bitcoin-linked exchange-traded fund in the US, the ProShares Bitcoin Strategy ETF, saw strong investor demand during its trading debut, marking a watershed moment for the crypto industry. The fund — trading under the ticker BITO — rose as much as 5.4 per cent to $42.15 before paring gains and turning negative at one point. Still, more than 12 million shares worth roughly $480 million changed hands, according to the data compiled by Bloomberg.
While comparisons are difficult because some funds are pre-funded, that volume makes it easily one of the busiest ETF debuts ever seen. Because of the way the fund settles trades, net flows into or out of the product probably won’t be known until overnight on Wednesday. A Bitcoin ETF has been long-awaited by both crypto community and investors on Wall Street, many of whom have argued for years that approval by regulators would open up digital currencies to more mainstream investors. The ProShares fund is based on futures contracts and was filed under mutual fund rules that SEC Chairman Gary Gensler has said provide “significant investor protections.”
Stocks in the news today:
Results on October 20: Jubilant FoodWorks, Havells India, L&T Finance Holdings, Angel Broking, Arihant Superstructures, Deep Polymers, Hathway Cable & Datacom, Just Dial, Menon Bearings, Moschip Technologies, Reliance Industrial Infrastructure, Rane (Madras), Shoppers Stop, Snowman Logistics, Supreme Petrochem, Suryalakshmi Cotton Mills, Syngene International, TajGVK Hotels & Resorts, Tata Communications, Tata Steel Long Products, Tejas Networks, and TT Ltd.
Cement maker ACC Ltd on Tuesday reported a 23.74 per cent increase in consolidated net profit to Rs 450.21 crore for the third quarter ended September 30, 2021. The company, which follows the January-December financial year cycle, had posted a profit of Rs 363.85 crore in the same quarter a year ago, it said in a BSE filing. Total revenue from operations of ACC, a subsidiary of Swiss building material major Holcim group (earlier LafargeHolcim), rose 5.98 per cent to Rs 3,749 crore from Rs 3,537.31 crore earlier. During the July-September quarter, ACC’s cement sales volume rose 1.23 per cent to 6.57 million tonnes (MT), compared to 6.49 MT earlier. Revenue from cement increased 3.62 per cent to Rs 3,495.49 crore, while that from ready-mix concrete jumped 55.2 per cent to Rs 305.07 crore, as against Rs 196.57 crore earlier.
Nestle India on Tuesday announced its financial results for the July-September quarter (Q3), in which the company recorded 5 per cent growth in net profit at Rs 617 crore vs Rs 538 crore in the same period a year ago. Nestle follows the January-December financial year system. Nestle India reported the total sales growth at 9.6 per cent to Rs 3,864 crore for Q3 FY22 vs Rs 3,525 crore in Q3 FY21. The domestic sales growth stood at 10.1 per cent. Its overall growth is broad-based and largely driven by volume and mix, the company said in a stock exchange statement. Nestle’s export sales increased by 1.3 per cent during the quarter. The company’s board of directors has declared a second interim dividend for 2021 of Rs 110 per equity share (face value Rs 10 per equity share) amounting to Rs 1,060 crore. It will be paid from November 16, 2021. Nestle said it is in addition to the first interim dividend of Rs 25 per equity share paid on May 19, 2021.
Reliance Retail Ventures Ltd (RRVL) has acquired a 52 per cent stake in veteran couturier Ritu Kumar’s firm Ritika Pvt Ltd for an undisclosed amount.
Express distribution firm Gati has ramped up its network capacity by 20-25 per cent by adding 100 line haul trucks to its flexi network to connect the demand locations besides scaling up workforce by at least 15 per cent, a release said on Tuesday. The move is aimed at cutting down the dwell time further view of the huge spike in demand during the festival season, which is considered a stress-test time for supply chain players, it said.
Adani Enterprises, which recently launched its petrochemicals arm, is planning to offer a range of green fuels and use its existing supply chains and renewable energy units for their production andtransport. The company plans to manufacture green hydrogen, green methanol, green ammonia and green fertiliser, said senior executives. For each fuel, Adani is planning to reach out to different sets of buyers. It will also participate in tenders that the government is planning for green hydrogen and fertilisers.
ICICI Prudential Life Insurance Co Ltd on Tuesday reported nearly 47 per cent jump in its net profit to Rs 445 crore for the second quarter ended September 30. The company had posted a net profit of Rs 303 crore in the corresponding quarter of the previous financial year 2020-21. The total income during July-September 2021 also rose to Rs 23,188 crore, compared with Rs 16,715 crore in the year-ago period, ICICI Pru Life said in a regulatory filing. As against this, a massive Rs 500-crore net COVID-19 claims left the second-largest private-sector life insurer in the red with a Rs 186-crore net loss in the June 2021 quarter, despite it reporting good all-round numbers, including a 71 per cent growth. At Rs 445 crore, net income for the reporting quarter grew 47 per cent from the year-ago period, its Managing Director and Chief Executive N S Kannan said.
ICICI Securities on Tuesday reported a 26 per cent jump in profit after tax to Rs 351 crore in the three months ended September 2021 on account of growth in revenue and improvement in margins. In comparison, the company had posted a profit after tax (PAT) of Rs 278 crore in the same quarter preceding fiscal, ICICI Securities, a subsidiary of ICICI Bank, said in a statement. The company’s revenue rose to Rs 857 crore in the second quarter ended September 30, 2021 from Rs 680 crore in the same period preceding the financial year. The company has attributed the growth in revenues to strong all-around performance across business segments.
HCL Technologies: The company and Innovaccer Inc (a health cloud company) partnered to help healthcare and life sciences organizations drive digital health transformation.
L&T Technology Services: The company reported higher consolidated profit at Rs 230 crore in Q2FY22 against Rs 216.2 crore in Q1FY22, revenue rose to Rs 1,607.7 crore from Rs 1,518.4 crore QoQ.
Rallis India: The company reported lower consolidated profit at Rs 56.49 crore in Q2FY22 against Rs 82.95 crore in Q2FY21, revenue rose to Rs 727.80 crore from Rs 725 crore YoY.
Navin Fluorine International: The company reported lower consolidated profit at Rs 63.22 crore in Q2FY22 against Rs 67.81 crore in Q2FY21, revenue rose to Rs 338.95 crore from Rs 318.92 crore YoY. Ketan Sablok resigned as Chief Financial Officer and a Key Managerial Personnel of the company. Basant Kumar Bansal is appointed as Chief Financial Officer and a Key Managerial Personnel of the company.
Network 18 Media & Investments on October 19 posted consolidated revenue of Rs 1,387.2 crore for the quarter ended September 30, 2021, against Rs 1,061 crore logged in the same quarter last fiscal – a jump of 30.8 percent. The company’s profit after tax (PAT) during the quarter rose to Rs 200 crore which is 3x of Q2FY21, driven by improved revenue performance, controlled operating expense and lower finance costs. Its consolidated earnings before interest, tax, depreciation, and amortisation (EBITDA) rose 52.4 percent (YoY) to Rs 252.3 crore and the consolidated operating margin came in at 18.2 percent.
Tata Steel BSL on Tuesday reported over a five-fold jump in its consolidated net profit to Rs 1,837.03 crore for the September 2021 quarter, mainly on account of higher income. In a BSE filing, the company said it had clocked a net profit of Rs 341.71 crore during the corresponding period of the previous financial year 2020-21. Its total income during July-September 2021 rose to Rs 8,329.68 crore, from Rs 5,545.35 crore in the year-ago period. The company’s expenses stood at Rs 6,492.97 crore, against Rs 5,203.33 crore in the year-ago quarter.[/vc_column_text][vc_separator][vc_column_text]
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