Tata Motors leads the market rally as the share climbs more than 4% and is the biggest gainer
Phasing Out Fossil Fuels Hasn’t Worked. Europe Has a New Idea for COP28
Near the end of the United Nations climate summit in Sharm El-Sheikh last year, European Union climate chief Frans Timmermans offered a grand bargain to break the deadlock in the two-week negotiations.
The 27-member bloc would consent to the creation of a finance facility to pay for loss and damage caused by climate change, fulfilling a demand made by developing countries. But the EU’s support would come only if all countries agreed on a stronger commitment to eliminate the use of fossil fuels. The loss-and-damage fund promise made it into the final deal at COP27; the stronger agreement to phase out fossil fuels did not.
That defeat still stings for Timmermans. “There’s no way — no way — we’re going to achieve any of our goals if we do not do more on mitigation,” he said at last week’s Petersberg Climate Dialogue in Berlin, an event aimed at boosting ambition before the annual UN climate summit in Dubai at the end of the year. Without stronger action against emissions, “whatever we do on finance, on adaptation, on loss and damage, will fall on short of what we need.”
Last year’s defeat for the EU and its allies on emissions cuts at COP27 has now set up what will be one of the hardest fights ahead of COP28. The host nation, the United Arab Emirates, is a wealthy petrostate whose economy depends on exports of oil and gas. Emissions-cutting hawks will have to contend with the UAE’s pick as president of COP28: Sultan Al Jaber, head of Abu Dhabi National Oil Co., the world’s 12th largest oil and gas producer. The state oil company he leads has some of the most aggressive plans to expand fossil fuel production.
Timmermans has science on his side. The cost of reducing emissions — leaving less extreme climate impacts to contend with — will be much less than paying for the higher damages of a warming world. But the politics will become even more difficult. (Bloomberg)
HDFC Bank hikes lending rates; loan EMIs to increase further; MCLR for one month is 8.10% and the three-month and six-month MCLRs will be 8.40% and 8.80%
HDFC Bank hikes lending rates: HDFC Bank has hiked its marginal cost of funds-based lending rates (MCLR) by 5-15 basis points (bps) across tenures. The new loan interest rates are effective from May 8, 2023, as per HDFC Bank’s website.
According to the bank website, the overnight MCLR is now 7.95%. The MCLR for one month is 8.10% and the three-month and six-month MCLRs will be 8.40% and 8.80%. The one-year MCLR, which is connected to many consumer loans, will now be 9.05%, the two-year MCLR will be 9.10%, and the three-year MCLR will be 9.20%. (Read More)
Noon Update: Indices jump more than a per cent as Sensex trades 700 pts higher and Nifty almost 200 pts higher with most sectors gaining in today’s session
Marico share price surges over 9% after Q4FY23 numbers; should you buy or wait? Here’s what top brokerages say
Shares of Marico surged over 9 per cent in early deals on BSE on May 8 after the company posted a mixed set of quarterly earnings for the March quarter of the financial year 2022-23 (Q4FY23).
In the previous session on May 5, the company posted a growth of 18.67 per cent year-on-year (YoY) in consolidated PAT at ₹305 crore for Q4FY23. However, sequentially the performance declined by 8.41 per cent. Marico’s PAT stood at ₹257 crore in Q4FY22 and at ₹333 crore in Q3FY23.
Most brokerage firms are positive about the stock and find Marico a decent buy for the long term. However, some of them have pointed out that the earnings of the company may not see a significant upside in the next few years and they downgraded the stock. Still, most of them have largely maintained their positive views. (Read More)
Realty index shines as it jumps more than 2% in today’s session with all the stocks trading higher
India, Canada trade ministers to review progress in talks on free trade agreement
Trade ministers of India and Canada will review the progress in talks on the proposed free trade agreement between the two countries besides discussing ways to strengthen economic ties, an official statement said on Monday.
Commerce and Industry Minister Piyush Goyal and Mary Ng, Minister of International Trade, Export Promotion, Small Business and Economic Development, Government of Canada, will co-chair the discussions for the sixth India-Canada Ministerial Dialogue on Trade and Investment (MDTI) on Monday in Ottawa.
MDTI is a bilateral mechanism which provides institutional mechanisms to discuss a broad spectrum of trade and investment related issues and cooperation areas.
The discussions will focus on various themes including strengthening the bilateral trade relationship, investment promotion, green transition – including critical minerals, it said.
“The ministers will also review India-Canada CEPA (Comprehensive Economic Partnership Agreement) negotiations,” it added. (PTI)
One97 Communications shares jump over 5 pc on narrowing loss in Jan-Mar of FY23
Shares of digital financial services firm One97 Communications, which operates under the Paytm brand, jumped over 5 per cent in morning trade on Monday after the company’s consolidated loss narrowed to ₹167.5 crore in the fourth quarter ended March 31, 2023.
The stock rallied 5.24 per cent to ₹725.60 apiece on the BSE.
Shares of the company at the NSE climbed 5.13 per cent to ₹725.
In traded volume terms, 2.72 lakh shares of the firm exchanged hands on the BSE and over 71.34 lakh shares were traded on the NSE in initial trade.
The company had posted a loss of ₹762.5 crore in the same period of the last year.
The consolidated revenue from operations of the company grew 51.5 per cent to ₹2,334.5 crore in the quarter under review, from ₹1,540.9 crore in the March quarter of FY22. (PTI)
PL Stock Report – Hero Motocorp (HMCL IN) (BUY) and CEAT (CEAT IN) (Accumulate)
Himanshu K Singh – Research Analyst, Prabhudas Lilladher Pvt Ltd recommendations on:
Hero Motocorp (HMCL IN): Rating: BUY | CMP: Rs2,547 | TP: Rs3,200
Q4FY23 Result Update – Aggressive plans for both ICE and EV
Quick Pointers:
§ Margin beat led by inventorisation; may reverse in coming quarters.
§ Aggressive on EVs (both pricing & network expansion) and ICE model launch.
Hero Motocorp’s (HMCL) expanded its EBITDA margin by c150bps QoQ, largely led by inventorisation which may reverse in FY24. The company plans for an aggressive model launch cycle in premium (including Harley-partnered bike) and lower cc segment to aid revenue growth. It also plans on expansion of exports revenue from 5% to 10%-15% over the medium term. However, with low market share in scooter segment, HMCL’s aggressive EV plans may not cannibalize volumes and help it grow its scooter portfolio. We like HMCL’s aggressive stance but investors will have to wait to see initial success before any re-rating for the stock. The company trades at nearly half the PE multiple, as compared to peers.
We expect margins to improve in the near term from operating leverage, premiumisation, cost controls and stable commodity costs (we build in c170bps increase over FY23-25E). Key monitorables would be 1) performance of new launches, 2) uptick in EV volumes, 3) competition in core segments and 4) recovery in rural markets. We adjust our estimates by less than 1% after factoring 4Q results and management commentary for FY24E-FY25. Maintain ‘BUY’ at an unchanged TP of ₹3,200 (at 15x on Mar-25E standalone EPS, ₹87 for Fincorp and ₹78 for Ather).
CEAT (CEAT IN): Rating: ACCUMULATE | CMP: Rs1,717 | TP: Rs1,800
Q4FY23 Result Update – Lower RM cost powers solid margin expansion
Quick Pointers:
§ c8-9% drop in RM help margin beat (company had guided for 2%-3% drop).
§ Margin may moderate from 4Q levels as RM benefit gets passed on to clients.
We increase our EPS estimates by c10% each for FY24/25, to factor in strong beat on margins led by lower commodity costs (8-9% lower QoQ) and management commentary. In 4QFY23, CEAT’s revenue was helped by volume growth of 7% QoQ, however, blended realizations were lower QoQ due to mix and discount. RM basket was lower by 8-9% QoQ (gets passed on to clients with one quarter lag) and helped EBITDA margin to grow by c560bps. In FY24, CEAT sees mix of higher margin replacement and exports segment to improve and OEM mix to fall. However, volumes growth could be in the range of low to mid-single-digit in major segments. CEAT expects RM cost to remain in a narrow range and may have to pass on benefits to its clients in 1QFY24.
In the near-term, impact on export volumes, moderation in growth and higher interest costs may put pressure on profitability. Yet correction in commodity cost coupled with cost control would aid margin expansion, in our view. Maintain ‘Accumulate’ with revised TP of ₹1,800 ( ₹1,635 earlier) at 14x Mar-25E consolidated EPS.
Coal India drags in today’s trading as it sheds 2% and is the biggest laggard in the Nifty 50
Britannia Industries, Nestle India, ITC touch 52-week high on Monday’s trade
Shares of three fast-moving consumer goods (FMCG) companies, Britannia Industries Ltd, Nestle India Ltd, and ITC Ltd touch a new 52-week on Monday’s trade. FMCG major, Britannia posted a 47% on-year jump in its consolidated net profit for Q4FY23 on Friday.
According to analysts, all these three stocks are in an uptrend. Britannia shares has given a fresh breakout, and they expect prices to move further in the near term towards the 4,900 level, while 4,550 is the support level for the stock. (Read More)
LKP Securities views on the THE FEDERAL BANK LIMITED – Q4 FY23 Result Update: BUY with target price of ₹160
THE FEDERAL BANK LIMITED – Q4 FY23 Result Update: We believe the asset quality is likely to stay stable with significant improvement in profitability. We have incorporated steady provision requirements along with stable growth in the balance sheet and thus expect it to deliver RoA/ RoE of 1.2%/15% by FY24E. We reiterate BUY with target price of ₹160 (based on 1.2x FY25E Adj. BVPS); a potential upside of 25%.
Bank of India drags PSU Bank index as the sector remains in the red in an otherwise strong market
Oil Steadies as Traders Grapple With Demand Outlook After Slump
Oil steadied as investors assessed a complex outlook for global crude demand after a period of volatile trading.
West Texas Intermediate held above $71 a barrel after surging by more than 4% on Friday, when futures pared a steep weekly loss. While fears of a US recession and bank failures have rattled markets recently, pushing crude to the lowest intraday level since late 2021, physical demand signals suggest at least some of the recent weakness in prices may have been overdone.
Traders will get a brace of outlooks this week on how the second half of the year may shape up. The Organization of Petroleum Exporting Countries issues its monthly snapshot on Thursday and, ahead of that, the US Energy Information Administration delivers its short-term outlook on Tuesday. The world’s largest oil producer, Saudi Aramco, will also disclose earnings. (Bloomberg)
Rupee rises 8 paise to 81.70 against US dollar
The rupee gained 8 paise to 81.70 against the US dollar in early trade on Monday tracking the weakness of the American currency in the overseas market.
Forex traders said significant foreign fund inflows and crude oil prices below USD 75 a barrel also supported the local unit.
At the interbank foreign exchange, the domestic unit opened strong at 81.76 against the dollar and then rose to 81.70, registering a rise of 8 paise over its previous close.
On Thursday, the rupee closed at 81.78 against the US currency.
The forex market was shut on Friday on account of Buddha Purnima.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.07 per cent to 101.14. (PTI)
IndusInd Bank shines in early trading as it jumps 5% and leads the stock rally
Q4FY23 earnings review: Earnings in line so far, says brokerage Motilal Oswal; banks shine, metals drag
Brokerage firm Motilal Oswal Financial Services is of the view that the March quarter earnings of the financial year 2022-23 (Q4FY23) have been in line so far led by BFSI and automobiles while metal has been a drag. The earnings of Nifty companies, in fact, have beaten the estimates of the brokerage firm thanks to the strong show of the financial sector.
As per the brokerage firm, by May 4, some 78 companies within the Motilal Oswal Financial Services (MOFSL) universe and 26 companies of Nifty had announced their Q4FY23 results. These companies constitute (a) 50 per cent and 55 per cent of the estimated PAT for the MOFSL and Nifty Universe, respectively, (b) 41 per cent of India’s market capitalization, and (c) 70 per cent of weightage in the Nifty. (Read More)
Auto index shines in early trading on Monday as it jumps a per cent with most stocks trading in the green
Geojit Financial Services views on today’s market: Support from global markets and sustained FII buying can revive positive market sentiments
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: Support from global markets and sustained FII buying can revive positive market sentiments which were impacted by heavy delivery selling of ₹4500 crores in HDFC twins last Friday. It is important to note that the fundamentals of the HDFC twins are strong and the selling was triggered by fears of outflows after the merger due to MSCI weighting update.
Cues from the mother market US indicate that the fears from the regional banking crisis are receding. The April US jobs data, which came at a much better-than-expected 253000 jobs reflect a strong economy which may even avoid a recession.
FIIs have been continuous buyers in India during the last seven trading sessions, cumulatively buying equity worth ₹11700 crores. Rupee appreciation is aiding FII buying.
Indices gain at the open on Monday as Sensex is trading above 61,400 and Nifty above 18,150; IndusInd Bank jumps 3%
Mankind Pharma IPO: What GMP signals as all eye set on share listing date?
Shares of Mankind Pharma Limited is expected to list on BSE and NSE soon and lucky allottees and market investors are busy calculating the expected listing premium from Mankind Pharma IPO listing. For such allottees and market observers, there is a piece of good news. Mankind Pharma IPO grey market premium (GMP) today has surged despite weakness on Dalal Street on Friday. According to market observers, shares of Mankind Pharma Limited are available at a premium of ₹103 per equity share.
According to market observers, Mankind Pharma IPO GMP today is ₹103, which is ₹3 higher from its yesterday’s GMP of ₹100. (Read More)
Go First may lose valuable airport slots to other airlines if its operations remain suspended
Low-fare airline Go First may lose valuable airport slots to other airlines if its operations remain suspended, two people aware of the matter said. Given the intense demand for airport slots, authorities and stakeholders may be forced to allocate them to other airlines ready to operate a route, first on an ad-hoc basis and later permanently if Go First remains grounded, one of the two people cited above said.
A slot is a specific period of 5-20 minutes during which an aircraft can take off or land. Slot timing can impact airline yield, revenue, efficiency and profitability. Given the high demand for early morning and late evening flights, slots at these times generate better yields for airlines. (Read More)
Sensex starts flat at the preopen session; Adani group, Britannia, Coal India will be in focus today
Sales deluge may mark the end of India’s best bond rally
A rally in India’s sovereign bonds may end soon, as traders shift their focus to upcoming heavy debt issuances from the positive impact of the central bank pausing its rate hikes.
India’s 10-year yield dropped below 7% on Thursday, the first time since April 2022 due to falling crude prices and the prospect of a Federal Reserve rate pause. But now, a potential increase in government debt supply in the coming months and a lack of rate cut expectations in the near term are threatening to stall the advance. (Read More)
India’s Marico posts 20% jump in Q4 profit on rural demand, easing inflation
Marico Ltd, home to popular brands Parachute and Saffola, reported a more than 20% jump in quarterly profit, helped by a recovery in rural demand and easing inflation.
Consumer goods makers have been winding down price hikes in recent months in line with easing commodity costs, encouraging people to buy more branded products.
India’s annual retail inflation eased to 5.66% in March, government data showed.
The company also pointed to early signs of a demand recovery in rural India. “The rural sector has most likely bottomed-out as the declining trend reversed in this quarter,” it said.
Marico’s consolidated net profit stood at 3.02 billion rupees ($37 million) for the three months ended March 31, compared with 2.51 billion rupees a year earlier.
Analysts, on average, had expected the company to report a profit of 2.74 billion rupees, according to Refinitiv IBES data. (Reuters)
Binance pauses Bitcoin withdrawals, second time in less than 12 hours. Here is why
Crypto exchange Binance said that it has temporarily paused withdrawals of Bitcoin for the second time in less than 12 hours, citing congestion on the token’s network.
“We’ve temporarily closed #BTC withdrawals due to the large volume of pending transactions. Our team is currently working on a fix and will reopen $BTC withdrawals as soon as possible. Rest assured, funds are SAFU.” Binance said on Twitter.
The platform took a similar action for about 90 minutes on Sunday. Bitcoin slipped on Monday, falling about 3% and trading at roughly $28,200 as of 9:44 a.m. in Singapore. An index of the biggest 100 digital assets also posted a moderate decline. (Read More)
Stocks to Watch: Adani Group, Britannia, Coal India, Marico, Paytm, Vedanta, Union Bank of India, SJVN, Bank of India, and Aditya Birla Fashion and Retail
Canara Bank, CG Power, Exide Industries, Pidilite Industries, Indian Bank, Mahanagar Gas, HFCL, and Kalpataru Power Transmission will be among the stocks in focus as they will be declaring their March quarter earnings today. (Read More)
‘Paytm to be free cashflow positive’: CEO on fintech’s ‘aim’, inclusion of Artificial General Intelligence
Digital payments firm Paytm announced their Q4 results, where the company logged a 51.5% rise in fourth-quarter revenue on Friday, aided by a surge in loan growth, and posted an operating profit for a second consecutive quarter.
In a letter to shareholders, CEO Vijay Shekhar Sharma informed that Paytm aims to become ‘free cashflow positive in the near future’.
A company is declared free cash flow when it has sufficient funds to invest back into the business for growth. (Read More)
Home buyers likely to get some relief from bankruptcy shock
Home buyers may be spared the agony in insolvency cases where they have bought and occupied a house without completing the necessary paperwork, a person aware of the development said. Currently, such houses are considered part of the builder’s inventory and hence open to resolution under the Insolvency and Bankruptcy Code (IBC).
The government is planning a special carveout within IBC to exclude such homes, the person cited above said on the condition of anonymity. In some cases, customers got possession but not occupation certificates, as the developer failed to pay the local authority for the land. (Read More)
Britannia Q4 net profit rises 47.5 pc to ₹557.6 crore, sales up 11 pc at ₹3,892 crore
Bakery food company Britannia Industries Ltd on Friday reported a 47.53 per cent rise in consolidated net profit to ₹557.60 crore for the fourth quarter ended March 2023, helped by gains from distribution expansion, cost management and softening commodity prices.
The company had posted a net profit of ₹377.95 crore in the January-March quarter a year ago, Britannia Industries said in a BSE filing.
Its revenue from operations rose 10.93 per cent to ₹3,892.02 crore during the quarter under review against ₹3,508.35 crore in the year-ago period.
“On the cost & profitability front, input prices softened on the back of correction in palm oil and packaging materials, while flour continued to trend higher. Our intensified cost efficiency programme coupled with moderation in commodity inflation led to a healthy operating margin in this quarter,” said Britannia’s earning statement quoted its Vice Chairman and Managing Director Varun Berry as saying. (PTI)
Why Adani Total, Adani Transmission may see selling pressure today — explained
Adani group stocks — Adani Total Gas and Adani Transmission shares are expected to sharp selling triggered by foreign institutional investors (FIIs) and foreign portfolio investors (FPIs) when trading activities resume on Monday. According to stock market experts, this selling is expected after MSCI’s decision to lower the free float in these two Adani group stocks. Experts said that FIIs and FPIs who invest in index funds follow MSCI and are expected to bring down their exposure in these two Adani shares on the basis of MSCI’s May index review. Hence, there can be a sharp sell-off taking place from FPIs and FIIs when the Indian stock market opens on Monday. (Read More)
Buy or sell: Vaishali Parekh recommends three stocks to buy today: Exide Industries, Ashok Leyland, and SBI Life
Vaishali Parekh has recommended three day trading stocks for today, here we list out important details in regard to those intraday stocks:
1] Exide Industries: Buy at ₹187, target ₹200, stop loss ₹182;
2] Ashok Leyland: Buy at ₹144, target ₹155, stop loss ₹140; and
3] SBI Life: Buy at ₹1173, target ₹1250, stop loss ₹1140. (Read More)
Warren Buffett shares key investment lessons at Berkshire Hathaway annual meeting
Chairman and chief executive of Berkshire Hathaway, Warren Buffett said that his company’s first-quarter profit soared to $35.5 billion, which reflected gains from common stocks like Apple Inc, and booster operating profit.
While addressing the annual shareholder meeting, the billionaire investor, along with vice chairman Charlie Munger and Greg Abel, and Ajit Jain, took questions from those who participated in the meeting in a five-hour long session. Know about the key investment lessons shared by them during the annual shareholders meeting.
Go First crisis: NCLT to hear two insolvency petitions against cash-strapped airline today
As cash-strapped Go First is awaiting a ruling from the National Company Law Tribunal (NCLT) on its plea for voluntary insolvency resolution, the tribunal is set to hear two additional insolvency petitions filed against the airline on Monday.
One petition has been filed by a transport services provider who claims around ₹3 crore, while the other petition has been filed by a pilot who claims over ₹1 crore in unpaid dues.
The Wadia group-owned airline’s liabilities amount to ₹11,463 crore, and it has faced a severe financial crunch, leading to its insolvency resolution plea. The airline hopes to resolve its financial issues through insolvency proceedings and the protection of an interim moratorium. (Read More)
Wall Street tocks rally on Friday while Treasuries fall as US jobs data brightens outlook
A global gauge of stocks rallied and U.S. Treasuries and gold sold off on Friday as strong U.S. jobs data brightened the economic outlook and traders pared expectations of Federal Reserve easing after a long spate of rate hikes.
The non-farms payroll report showed U.S. employers added 253,000 new jobs in April, up from 165,000 in March and exceeding expectations for 180,000.
U.S. Treasury yields rose after the report while the dollar was down very slightly against a basket of major currencies.
Oil prices jumped on signs of economic strength, but registered their third weekly decline in a row. Shares in U.S. banks also erased some losses after a rough week following the collapse of a third major bank.
Since Fed Chair Jerome Powell signalled that the central bank could pause hikes traders have been betting this would happen at the June meeting with some even calling for rate cuts in July, according to CME Group’s FedWatch tool. After Friday’s data, the probability for a July cut declined.
But still, Friday’s trading suggested a focus on signs of economic strength rather than on the prospects for tighter policy, which often come with stronger than expected data.
MSCI’s gauge of stocks across the globe was gaining 1.48% and on track for its biggest one-day percentage gain since Jan. 6. However, for the week it still showed a small decline.
The Dow Jones Industrial Average rose 546.64 points, or 1.65%, to 33,674.38, the S&P 500 gained 75.03 points, or 1.85%, to 4,136.25 and the Nasdaq Composite added 269.02 points, or 2.25%, to 12,235.41. (Reuters)
