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Bajaj Finserv posts 42% growth in Q3 net profit to ₹1,782 crore

Bajaj Finserv posts 42% growth in Q3 net profit to ₹1,782 crore

Monday, January 30, 2023

Bajaj Finserv on Monday posted a 42 percent growth in its profit to ₹1,782 crore for the quarter ended 2022, against ₹1,256 crore in the year-ago period. Total income during the quarter rose 23% to Rs 21,755 crore as compared to Rs 17,620 crore a year ago. Bajaj Finserv is a holding company for a number of businesses under the Bajaj brand including its lending and insurance businesses. Bajaj Finserv recorded healthy growth across its companies despite the higher interest rates scenario in Q3FY23. According to the statement shared with the exchanges, the finance costs of the company went up to ₹3,240.78 crores from ₹2,444.53 crores. Total expenses of the firm surged 17.10 percent to ₹17,336.45 crore from ₹14,370.55 crore in the year-ago period. Read more

Persistent Systems gains on strong Q3 show

Persistent Systems gains on strong Q3 show

Thursday, January 19, 2023

The share price of midcap IT firm Persistent Systems gained over 7 percent on January 19 after the company registered an 8.2 percent sequential growth in profit at Rs 238 crore for the quarter that ended December 31, 2022. The company had reported a net profit of Rs 176.4 crore in the same quarter of the previous fiscal year. The company's earnings were majorly in line with the analysts' estimates, which pushed the stock to move higher. Persistent clocked a 45.4% increase in the revenue from operations at Rs 2,169.3 crore during the October-December 2022 period, which stood at Rs 1,491.7 crore in the year-ago period, whereas the operating EBITDA of the company stood at 401.5 crores in Q3FY23, up 59.9% YoY. The IT company also announced an interim dividend of Rs 28 a share for FY23.The total expenses of the company spiked 43.83% YoY to Rs 1,849.6 crore during the quarter. Read more

Paytm stock gains after management's strong commentary on growth, profitability

Paytm stock gains after management's strong commentary on growth, profitability

Friday, December 2, 2022

Shares of One97 Communications, the parent company of Paytm, on Friday, zoomed more than 7 percent to Rs 543.45 as Dalal Street turned optimistic after the management's strong commentary on growth and profitability.“Management stated that the journey to attain operating profitability (EBITDA before ESOP cost) via consistent margin improvement has exceeded its expectations in the past few quarters,” ICICI Securities, which attended the company’s analyst day meet, said in a note. Meanwhile, the company on Thursday (1 December 2022) informed that at present it makes a net payment margin of 7 to 9 bps of GMV on processing. Of which UPI gives us 3 to 4 bps and other instruments give 15 to 18 bps. "Since UPI is growing faster than other instruments, we expect the blended margin to stabilize at 5 to 7 bps," the company said. Read more

Moody's cuts India's GDP growth projection for 2022

Moody's cuts India's GDP growth projection for 2022

Friday, November 11, 2022

Moody's today(11 November 2022) slashed India's GDP growth projection for 2022 to 7 percent on the expectation that global slowdown and high domestic interest rates would dampen economic momentum. For India, the 2022 real GDP growth projections have been lowered to 7 percent from 7.7 percent. The downward revision assumes higher inflation, high-interest rates, and slowing global growth will dampen economic momentum by more than we had previously expected, said the Global Macro Outlook 2023-24. Moody's expects growth to decelerate to 4.8 percent in 2023 and then to rise to 6.4 percent in 2024. The Indian economy grew 8.5 percent in the 2021 calendar year, according to Moody's. As per official GDP estimates, the economy expanded 13.5 percent in April-June 2022-23, higher than the 4.10 percent growth clocked in January-March. GDP figures for the September quarter would be released at the end of this month. Read more

Titan shares jump on strong Q2 growth

Titan shares jump on strong Q2 growth

Friday, October 7, 2022

Shares of Titan Company rallied 6 percent to Rs 2,744.30 on the BSE in Friday’s intra-day trade after the Tata Group firm said its witnessed healthy double-digit growth across most businesses with overall sales growing 18 percent year-on-year (YoY) in the September quarter (Q2FY23). Titan’s mainstay jewelry business has emerged as a shining star during the quarter. Excluding the sale of bullion, jewelry revenues grew by 18% year-on-year, surpassing expectations. Gold jewelry clocked low double-digit growth whereas studded sales were higher than the overall division driven by good activations and better contributions from high-value purchases, the company said. Titan said the outlook for the festive season continues to be optimistic and is visible in positive consumer sentiment across categories. Read more

Larsen and Toubro gains 2 percent on strong revenue outlook

Larsen and Toubro gains 2 percent on strong revenue outlook

Friday, September 2, 2022

Shares of Larsen & Toubro hit an over six-month high of Rs 1,951 after rising 2 percent on the BSE in Friday’s intra-day trade as the company’s strong order book of nearly Rs 4 trillion suggests good revenue visibility in coming years. The stock was the trading highest level since February 2, 2022. L&T primarily operates in infrastructure, heavy engineering, defense engineering, power, hydrocarbon, and services business segments. The consolidated order book of the group was at a record Rs 3.63 trillion as on June 30, 2022, with international orders having a share of 28 percent In the April-June quarter (Q1FY23), L&T secured orders worth Rs 41,805 crore at the group level, registering a growth of 57 percent over the corresponding quarter of the previous year. The domestic order environment in Q1FY23 was also significantly better compared to Q1FY22.

Morgan Stanley cuts India's GDP forecast to 7.2% in FY23

Morgan Stanley cuts India's GDP forecast to 7.2% in FY23

Monday, July 18, 2022

Analysts at Morgan Stanley, have lowered their GDP growth estimates following Nomura slashed India's 2023 GDP growth forecast to 4.7 percent from its earlier projection of 5.4 percent amid recession fears and rising interest rates. Analysts in Morgan Stanley now expect the Indian economy - as measured by GDP - to grow at 7.2 percent in fiscal 2022-23 (FY23), 40 basis points (bps) lower than their earlier estimates. For FY24, the revised projection stands at 6.4 percent - down 30 bps. Read more

India's $5-trillion economy dream not before FY29: IMF data

India's $5-trillion economy dream not before FY29: IMF data

Tuesday, May 3, 2022

According to the International Monetary Fund (IMF), the wait for India to become a $5-trillion economic powerhouse by 2024-25 (FY25) is going to take longer than what the finance ministry had originally intended. The vision will instead be achieved in 2028-29 (FY29), revealing the IMF data, illustrating a four-year delay. Chief Economic Advisor (CEA) V Anantha Nageswaran had in February said India would become a $5-trillion economy by 2025-26 or the following year, on the back of an 8-9 percent sustained growth rate in the real gross domestic product (GDP). Read more

Indian economy looks better than others, but uncertainty ahead

Indian economy looks better than others, but uncertainty ahead

Saturday, April 16, 2022

The Indian economy looks better than almost any other, according to some positive thinking analysts. If you consider prices, consumer price inflation in the US is at 8.5 percent, a 40-year high. In the euro area, it is 7.5 percent. These are economies used to inflation averaging less than 2 percent. Here in India we may groan over rising petrol and diesel costs and some spectacular price tags on individual food items. Naturally, criticism of the RBI has grown for not having placed greater emphasis much earlier on controlling inflation, which is now well above the target range. Still, India’s consumer price inflation is moderate at fractionally under 7 percent. Compared with the Brics economies, Brazilian inflation is in the double-digits at 11.3 percent, as is Russia’s at 16.7 percent. Only China has the inflation beast virtually slain, breathing slowly at just 1.5 per cent. (All numbers are as compiled by The Economist) Read more

Fitch reduces FY23 India growth forecast to 8.5%

Fitch reduces FY23 India growth forecast to 8.5%

Tuesday, March 22, 2022

With the Omicron wave subsiding quickly, containment measures have been scaled back, setting the stage for a pick-up in GDP growth momentum in the June quarter this year, the agency said. It has revised upwards the GDP growth forecast for the current fiscal by 0.6 percentage points to 8.7 percent. "However, we have lowered our growth forecast for FY 2022-2023 to 8.5 percent (-1.8 pp) on sharply higher energy prices," Fitch said while revising up its inflation forecasts. In its Global economic Outlook-March 2022, Fitch said the post-COVID-19 pandemic recovery is being hit by a potentially huge global supply shock that will reduce growth and push up inflation. Read more

The budget focuses on the next few years and the thrust has been in infrastructure modernisation: experts

The budget focuses on the next few years and the thrust has been in infrastructure modernisation: experts

Tuesday, February 1, 2022

The government has done a fantastic job of managing growth and providing the money for Capex in the Budget 2022 proposals according to analysts. They have raised more resources than was expected. The government’s fiscal management in these two years of the Covid pandemic has been phenomenal. The thrust of the Budget has been in infrastructure modernisation. All this will have a multiplier effect on job creation and economic growth. That said, another good thing is that the tweak(s) in the tax rates have been minimal. Even the long-term capital gains tax across asset classes has been capped at 15 percent. The message that the government wants to convey through this is that the tax regime is stable and does not warrant much change. This is one thing that the markets and all investors will like. All this will help investors commit big money. Read more

IMF cuts India's GDP forecast for FY22 to 9% from 9.5%

IMF cuts India's GDP forecast for FY22 to 9% from 9.5%

Wednesday, January 26, 2022

The IMF (International Monetary Fund) has cut India's economic growth forecast to 9 percent (from the earlier forecast of 9.5%) for the current fiscal year ending March 31, on concerns over the impact of a spread of a new variant of coronavirus on business activity and mobility. In its latest update of World Economic Outlook yesterday(25th Jan.2022), the international financial institution, which had in October last year projected a 9.5 percent GDP growth for India, put the forecast for the next fiscal FY23 (April 2022 to March 2023) at 7.1 percent. The Indian economy had contracted by 7.3 percent in the 2020-21 fiscal year. Read more

Banks see uptick in credit growth and asset quality likely to improve

Banks see uptick in credit growth and asset quality likely to improve

Monday, January 10, 2022

According to some analysts, banks saw some uptick in credit growth during the October – December period of 2021, which could help them report better profitability. The credit growth remained sluggish since the start of the coronavirus (Covid-19) pandemic in March 2020. Q3FY22 saw loan growth improving due to festive season demand along with pent-up demand as there were minimum economic disruptions due to lockdowns. According to Reserve Bank of India’s (RBI) data, year-on-year loan growth of banks inched up to 7.3 percent by the end of September, from about 6.1 percent in June end. "Q3FY22 is expected to be sequentially better on the growth and operational front for lenders, in general, barring a few exceptions,” ICICI Securities said in a note. Read more

MARKET UPDATE: Sensex quoted 653 points lower at 56,358 level while Nifty broke below the 16,800-mark at 16,795, down 190 points

MARKET UPDATE: Sensex quoted 653 points lower at 56,358 level while Nifty broke below the 16,800-mark at 16,795, down 190 points

Monday, December 20, 2021

Indian benchmark indices opened lower today (20th Dec.2021) as investors continue to track the spread of the Omicron Covid variant. The World Health Organization recently warned that the number of cases is doubling in 1.5 to 3 days in areas with community spread. That apart, Asian stocks dropped in early trading today after China slashed its benchmark lending rate for the first time in more than one-and-a-half years. The move likely indicates policymakers' concerns around the slowing economic growth in China, which worried investors. The BSE Sensex quoted 653 points lower at 56,358 level while the Nifty50 broke below the 16,800-mark at 16,795, down 190 points. Both the indices were down over 1 percent each. In the broader markets, the BSE MidCap and SmallCap indices fell 2 percent each. Read more

MARKET UPDATE: Sensex up 659 points at 57,724 levels while Nifty at 17,183, up 200 points

MARKET UPDATE: Sensex up 659 points at 57,724 levels while Nifty at 17,183, up 200 points

Wednesday, December 1, 2021

The Indian frontline indices started gap-up today (1st December 2021) on the back of strong GDP growth of over 8 percent in Q2. With this, India continues to remain the fastest-growing large economies in the world. That apart, firm Asian cues also supported the sentiment on the Street. The BSE Sensex was up 659 points, or 1.15 percent, at 57,724 levels. The Nifty50, on the other hand, was at 17,183, up 200 points. IndusInd Bank (up 3.7 percent) was the top Sensex gainer, followed by Tech M, HDFC, NTPC, Tata Steel, and UltraTech Cement. Power Grid was the only loser on the index, down 0.2 percent. In the broader markets, the BSE MidCap and SmallCap indices added 0.9 percent and 0.8 percent, respectively. Read more

Moody’s pegged GDP growth for India at 9.3% in FY22

Moody’s pegged GDP growth for India at 9.3% in FY22

Thursday, November 25, 2021

Moody’s Investors Service in its latest report has projected that the economic growth in India will rebound strongly. It has pegged GDP growth for the nation at 9.3% and 7.9% in FY22 and FY23, respectively. Steady progress in Covid vaccination will support a sustained recovery in India’s economic activity, Moody’s analyst Sweta Patodia said. “Consumer demand, spending, and manufacturing activity is recovering following the easing of pandemic restrictions. These trends, including high commodity prices, will propel significant growth in rated companies’ EBITDA over the next 12-18 months,” Patodia added. India recently hit record Covid-19 vaccination rates. Moody notes that the vaccination drive in India has gathered pace after the second wave. Around 30% of the population of India is now fully vaccinated with two doses while around 55% of the population has received at least one dose. Improved vaccination coverage has led to stabilisation in consumer confidence. Read more

GDP to clip at 9.5% as growth impulses strong: RBI Governor

GDP to clip at 9.5% as growth impulses strong: RBI Governor

Thursday, November 11, 2021

Reserve Bank Governor Shaktikanta Das yesterday(10th Nov.2021) expressed confidence in the economy clipping at the projected 9.5 percent this fiscal as per the growth impulses and the strong fast-moving indicators. Giving all the credit for the faster-than-expected recovery of the economy to the government, Das said the central bank has only been supporting the government in reviving the economy ravaged by the pandemic. Citing a slew of measures the government has taken since the pandemic struck in March 2020, the governor specifically mentioned tax cuts on fuels, tax resolution for the telecom sector, annulling of the retro tax legislation, sale of Air India, plans to sell some of the public sector banks and PLI scheme as the major reforms and growth-drivers bearing fruits now. Read more

Marico rallies 6% hits record high on healthy business growth in Q2

Marico rallies 6% hits record high on healthy business growth in Q2

Wednesday, October 6, 2021

Shares of Marico rallied nearly 6 percent to hit a record high of Rs 590 on the BSE in Wednesday’s intra-day trade after the company said it has witnessed healthy consumer sentiment across categories and has recorded revenue growth in the low twenties with strong double-digit volume growth on a 2-year compound annual growth rate (CAGR) basis during the September 2021 quarter. "During the quarter, the sector witnessed improving demand trends as mobility levels increased with reducing COVID-19 infections and accelerated vaccination drives. Discretionary categories and out-of-home consumption also visibly picked up," the company said in a regulatory filing. Parachute oil delivered with their medium-term aspirations. Saffola franchise, Saffola Edible Oils had a muted quarter, largely due to volatility in edible oil prices leading to trade destocking and partly owing to lower in-home consumption. Read more

Consumer major Marico stock up 12% from Aug lows

Consumer major Marico stock up 12% from Aug lows

Wednesday, October 6, 2021

Consumer major Marico stocks rose about 2.4 percent in trade today(6th Oct.2021) after its quarterly update highlighted pick up in demand and improving consumer sentiment across categories. While the ongoing vaccination and lower covid infections not only led to healthy overall demand, improved mobility too rubbed off on growth in discretionary and out-of-home categories. For its domestic business which accounts for three-fourths of its revenues, revenue growth came in at low twenties which was in line with analyst estimates. After an 11 percent dip in Q1FY21, Marico’s revenue growth has been trending up over the last three quarters on a lower base and gradual recovery. The company had ended the June quarter with a growth of 26 percent. While the sharp 14 percent decline in domestic volumes had dragged down the two-year average quarterly growth to 3.5 percent in the June quarter, the company indicated that the metric is now closer to double digits. Read more

India may seek a ratings upgrade from Moody’s

India may seek a ratings upgrade from Moody’s

Thursday, September 23, 2021

Indian finance ministry officials plan to pitch for a sovereign rating upgrade from Moody’s Investors Service in the meeting with Moody's scheduled for Sept. 28, according sources. Finance officials plan to provide details on how India will meet its budget targets for the current fiscal year, which runs through March. Moody’s cut India’s sovereign rating to Baa3 in June 2020, the lowest investment grade, citing policy challenges in addressing a prolonged economic slowdown and its deteriorating fiscal position Neither the finance ministry nor Moody’s responded to requests for comment S&P Global Ratings in May said it sees no change in India’s sovereign rating for the next two years. Read more

Analysts see 19% upside in HUL (FMCG) stock on strong outlook, product mix

Analysts see 19% upside in HUL (FMCG) stock on strong outlook, product mix

Monday, September 13, 2021

After clocking a big rally, Hindustan Unilever shares may take a breather before hitting fresh record highs, according to some analysts. They are expecting up to 19 percent upside from current market levels, deriving comfort from the company’s long-term growth strategies, along with an increase in prices to protect margins. "The management, during its Annual Investor Meet, appeared upbeat on the medium-term growth outlook and maintained double-digit EPS growth. The commentary emphasized significant leverage on data analytics and technology across functions, which will be a competitive advantage, going ahead," said a report by Emkay Global Financial Services dated September 12. It, however, added that post the recent run-up, there is limited upside potential in the stock. Read more

Jubilant Food share hits new high, gains 35 percent in a month

Jubilant Food share hits new high, gains 35 percent in a month

Wednesday, August 18, 2021

Shares of Jubilant FoodWorks gained 7 percent intraday and hit a new high of Rs 4166.40 on the BSE on Wednesday on strong growth prospects. The stock price of the Quick Service Restaurant (QSR) company rallied over 34% in the past month due to robot quarterly performance in the first quarter of FY22 (Q1FY22) and healthy growth prospects. Jubilant Foodworks Ltd, operates three international brands, Domino’s Pizza, Dunkin' Donuts, and Popeyes. Jubilant FoodWorks aims to “transform itself into a food-tech powerhouse” after reporting a robust recovery from the second COVID wave, the company said. For Q1FY21, JFL reported a consolidated net profit of Rs 69.06 crore in the first quarter ended June 30, It had posted a consolidated net loss of Rs 74.47 crore in the same quarter last fiscal. Its revenue from operations in the first quarter stood at Rs 893.19 crore as compared to Rs 388.41 crore in the corresponding period last year Read more

India's GDP likely to grow 13-23% in first quarter

India's GDP likely to grow 13-23% in first quarter

Tuesday, August 17, 2021

Indian GDP growth is estimated by the economists to grow in the range of 13.1-23 percent for the first quarter (Q1) of this fiscal year. The index of industrial production (IIP) would take into account 45 percent of manufacturing while the rest will be corporate data, he said. Soumya Kanti Ghosh, the chief economic advisor to the SBI group, said: “Our preliminary estimates suggest that GDP growth could be in the range of 17-18 percent for Q1.” However, he said ideally one should look at the gross value added (GVA) numbers because the GDP numbers were likely to be bolstered by strong tax collection in Q1. Net product taxes, which take out subsidies, are added to GVA to arrive at GDP. Read more

India’s largest fund house has waved the red flag on the country’s stock market

India’s largest fund house has waved the red flag on the country’s stock market

Thursday, August 12, 2021

SBI Mutual Fund, India’s largest mutual fund asset manager, has waved the red flag on the country’s stock market. The asset manager, which manages assets worth more than Rs 5 lakh crore, is concerned over the prospects of returns from the Indian equities going ahead, because of the euphoria on display in the primary market and among retail investors. “Primary market activity is flashing warning signs. Such level of activity is normally associated with euphoria (in the market),” Dinesh Balachandran, fund manager at SBI Mutual Fund said at the launch of the SBI Balanced Advantage Fund yesterday(11th August 2021). Read more

Sensex falls for third day; what frightens investors on D-Street?

Sensex falls for third day; what frightens investors on D-Street?

Wednesday, July 28, 2021

In across-the-board selling by the investors, the benchmark indices tumbled for a third day while volatility shot up ahead of the US Federal Reserve outcome later today and Thursday's July F&O expiry. Overall, the BSE barometer Sensex gave up the 52,000 marks as it cracked 776 points to day's low of 51,803. NSE's Nifty50 tumbled over 200 points to 15,513. Index heavyweights HDFC twins, Reliance Industries, ICICI Bank, Axis Bank, and Infosys were among the top Sensex drags. Select counters like IndusInd Bank, HUL, and Titan held their ground. Investors, meanwhile, turned poorer by nearly Rs 3 trillion. Today's (27th July 2021) fall is due mainly to a regulatory crackdown by the Chinese government. Investors worried whether the selloff in Chinese tech stocks would spread to other segments. Read more

Smallcap funds make for a good investment choice now

Smallcap funds make for a good investment choice now

Tuesday, July 20, 2021

Smallcap companies are those that have a market capitalisation of less than the 250th stock on the stock exchange. With economic data improving, the corporate profitability of smallcap companies can be expected to improve. Investors looking for decent returns and having a higher risk tolerance can look to invest in small caps. When it comes to mutual funds, schemes that invest at least 65% of their portfolio in smallcap stocks can be deemed as smallcap funds. There are over 4,500 smallcap companies listed on the stock exchange in India. Though they have the potential to give investors good returns, it is advisable to stay invested in them for the long term to mitigate the risks. Actively managed to smallcap funds can outperform other segments of the market, especially during phases of economic recovery or growth. Historically too, the smallcap funds have managed to outperform other segments. Read more

Infosys hits record high; zooms 103% in one year

Infosys hits record high; zooms 103% in one year

Thursday, July 15, 2021

On the BSE in the intra-day trade today(15th July 2021) Shares of Infosys hit a fresh record high of Rs 1,597.25, up 1.3 percent. The country’s second-largest IT services player yesterday raised its revenue growth guidance for the financial year 2021-22 (FY22) buoyed by a robust deal pipeline. The stock surpassed its previous high of Rs 1,590.85 touched on June 30, 2021. In the past year, Infosys has outperformed the market by zooming 103 percent, as compared to a 47 percent rally in the S&P BSE Sensex. Infosys now expects its revenue to grow by 14-16 percent in FY22, up from the earlier estimate of 12-14 percent. This guidance is ahead of the one-percentage-point increase analysts were estimating. The company, however, maintained margin guidance at 22-24 percent in FY22. Analysts expect Infosys to deliver another year of an ongoing guidance raise as the current one does not fully factor in strong technology demand and execution of its record high deal wins. Read more

Global sell-off, slowing growth drag Sensex 480 pts lower; Nifty ends below 15,750

Global sell-off, slowing growth drag Sensex 480 pts lower; Nifty ends below 15,750

Thursday, July 8, 2021

Mainly due to slowing growth and sinking Dow futures ahead of US market opening benchmark indices ended the day deep in the red today(8th July 2021), dragged by banks and metal stocks. The move was volatile as profit booking near all-time high levels continued. Fitch, meanwhile, cut India’s FY22 GDP growth forecast to 10 percent but sees revival if vaccination is rapid. Anxiety that the spread of Covid-19 variants could upend growth going forward, back-pedaled reflation trades in global markets. The frontline S&P BSE Sensex ended 486 points down at 52,569 levels while the broader Nifty50 defended the psychological zone of 15,700 to end at 15,728 level, down 152 points. The BSE MidCap and BSE SmallCap indices slipped 0.37 percent and 0.09 percent in the broader markets, respectively. Read more

S&P Global cuts India's growth forecast to 9.5% from 11%

S&P Global cuts India's growth forecast to 9.5% from 11%

Tuesday, June 29, 2021

S&P Global cut its growth forecasts for some of Asia's top economies including India, the Philippines, and Malaysia on Monday, offsetting upgrades to China and South Africa, and much of Latin America. The estimates, which feed into S&P's closely-followed sovereign ratings, saw India's growth projection cut to 9.5% from 11% due to its COVID-19 outbreak, the Philippines' lowered to 6% from 7.9% and Malaysia's downgraded to 4.1% from 6.2%.In contrast, China's forecast was surged up to 8.3% from 8%, Brazil's was upgraded to 4.7% from 3.4%, Mexico's to 5.8% from 4.9% while those of South Africa, Poland, and Russia were lifted to 4.2%, 4.5%, and 3.7%, respectively, from 3.6%, 3.4%, and 3.3%. "The top risk facing emerging market economies (EMs) is a slower-than-expected rollout of the vaccines," S&P's economists said in a news report, adding that the pandemic would only subside once vaccinations "reach a level consistent with herd immunity". Read more

Indian benchmark indices snapped their three-day winning streak as investors booked profits

Indian benchmark indices snapped their three-day winning streak as investors booked profits

Wednesday, June 23, 2021

Benchmark indices snapped their three-day winning streak and ended half a percent lower today(23rd June 2021) as investors booked profits at higher levels. Besides, a cut in India's CY21 growth forecast by Moody's further dampened the sentiment on the Street. Barring the auto segment, all other sectoral indices settled the session in the red with the Nifty Metal (1 percent) and IT (0.87 percent) indices nursing the steepest losses. Overall, the S&P BSE Sensex index closed at 52,306 levels, down 282.6 points or 0.54 percent while the Nifty50 index ended at 15,687 levels, down 86 points or 0.54 percent. Maruti Suzuki, Titan Company, Bajaj Finserv, M&M, Ultratech Cement, Hero MotoCorp, and ONGC were the top gainers in the large-cap space while Adani Ports, Wipro, JSW Steel, Divis Labs, Shree Cement, L&T, Kotak Bank, and TCS were the top laggards. Read more

Financial wealth in India jumps 11% to $3.4 trillion in pandemic year

Financial wealth in India jumps 11% to $3.4 trillion in pandemic year

Tuesday, June 15, 2021

Financial wealth is the total wealth excluding real assets and liabilities held by adult individuals. Financial wealth in India grew 11 percent to USD 3.4 trillion in 2020 despite the coronavirus pandemic, according to a global consultancy estimation published today(15th June 2021). The 11 percent growth in financial wealth was at par with the compounded annual growth rate for the five years to 2020, the report said. It can be noted that after a sharp correction in the early days of the pandemic, there has been a continuing rally in stocks since April last year, which has led to concerns being expressed across quarters. Concerns are also being expressed about a greater disparity in incomes and the pandemic widening the divide. The report noted that the next few years will also see a faster expansion in financial wealth, but the rate of expansion will slow down marginally to 10 percent per annum to take the number to USD 5.5 trillion by 2025. Read more

Zomato IPO: Growth versus profitability debate is on

Zomato IPO: Growth versus profitability debate is on

Tuesday, June 8, 2021

Ahead of Zomato's initial public offering (IPO) planned later this year the growth versus profitability debate is heating up. According to analysts at Jefferies, while one set of investors are looking at Zomatos’ growth metrics even at the cost of medium-term profitability, the other camp is looking for a clear path to profitability going ahead. Potential competition from Amazon, Thrive, etc. is also on investors' minds and so is the dynamics between Zomato and Swiggy, they said. A few investors are concerned that Swiggy, given its unlisted status, may have less investor pressure on profitability versus Zomato, which will have public market shareholders,” note the experts. Read more

RBI keeps growth revival top priority;maintained status quo on interest rates

RBI keeps growth revival top priority;maintained status quo on interest rates

Friday, June 4, 2021

The monetary policy committee of RBI maintained the status quo on interest rates for the sixth consecutive review meeting today(4th June 2021), indicating that reviving economic growth was top on its agenda as it decided to look through inflation pressure which is resurfacing in the economy due to a variety of factors including hardening of crude oil prices. “The MPC also decided unanimously to continue with the accommodative stance as long as necessary to revive and sustain growth on a durable basis and continue to mitigate the impact of COVID-19 on the economy, while ensuring that inflation remains within the target going forward,” said RBI governor Shaktikanta Das in Mumbai while announcing the policy review decision. Read more

Fundamentals of PNB Housing need to catch up with the stock now: Analysts

Fundamentals of PNB Housing need to catch up with the stock now: Analysts

Wednesday, June 2, 2021

Shares of PNB Housing Finance (PNB HF) have soared a massive 58 percent in three days on the bourses after the housing financier announced equity infusion worth Rs 4,000 crore, led by Carlyle Group, removing a key overhang on the company’s growth outlook. The fact that the capital raising plan was nearly double what was expected (Rs 1,800 crore) has helped the counter jump a massive 279 percent from its 52-week low level of Rs 183, hit on June 2, 2020. It is difficult to predict Whether PNB HF will deliver on the growth projections that don’t look promising - at least till the financial year 2022-23 - 2023-24 (FY23-FY24). Read more

Barclays pegs India's FY22 GDP growth at 7.7%

Barclays pegs India's FY22 GDP growth at 7.7%

Tuesday, May 25, 2021

Barclays, as measured by gross domestic product (GDP) has pegged India’s economic growth -for fiscal 2021-22 (FY22) – at 7.7 percent in the bear-case scenario, if the country is hit by the third wave of the Covid pandemic going ahead. The economic cost, it believes, could rise by at least a further $42.6 billion, assuming another round of similar stringent lockdowns is imposed across the country for eight weeks later this year. After factoring in recent developments, Barclays has pegged the economic cost of the latest shutdowns at $8 billion per week in May, up from $5.3 billion per week in the last two weeks of April, and well above the $3.5 billion a week estimated early in the second wave. “We believe these economic losses will remain steady at $8 billion a week through the month of May but expect them to ease from June,” Barclays said. Read more

RBI governor is optimistic about the growth prospects of the economy

RBI governor is optimistic about the growth prospects of the economy

Monday, March 8, 2021

RBI governor Shaktikanta Das in an interview with TOI said that savers can look at various small savings schemes for better returns while asserting that inflation management remains a top priority. He said equity investors must be judicious and not get carried away by short-term trends. Growth impulses are gradually and steadily getting broad-based. The high-frequency indicators such as steel consumption, PMI for manufacturing and services are expanding, GST collections and e-way bills are showing improvement. Earlier, there was an impression that it was due to pent-up and festival demand. But now, it is genuine demand that is visible. The vaccination drive is giving greater confidence to consumers, so the demand is expected to sustain. The only downside risk is the recent spike in the number of Covid cases in certain parts of the country. With daily vaccination numbers going up, we should be able to contain a further spike. Read more

Indian economy witnessing 'V-shaped' recovery since June: FinMin

Indian economy witnessing 'V-shaped' recovery since June: FinMin

Tuesday, January 5, 2021

According to a Finance Ministry report India has been witnessing a 'V-shaped' recovery since June with the gradual easing of restrictions on economic activities." The sustained improvement in high-frequency indicators ignite optimism of improved performance in the second half of the year," it said. The Monthly Economic Recovery for December by the Department of Economic Affairs (DEA) also noted that the impending vaccination is set to spur the momentum in economic activity globally. "The effective management of Covid-19 spread despite the festive season and onset of the winter season, combined with sustained improvement in high-frequency indicators and V-shaped recovery along with easing of lockdown restrictions distinguish Indian economy as one riding against the Covid-wave," it said. Read more

S&P raised India's growth projection for the current fiscal to (-) 7.7% from (-) 9%

S&P raised India's growth projection for the current fiscal to (-) 7.7% from (-) 9%

Tuesday, December 15, 2020

S&P Global Ratings today(15th December 2020) raised India's growth projection for the current fiscal to (-) 7.7 percent from (-) 9 percent estimated earlier on rising demand and falling COVID infection rates. "Rising demand and falling infection rates have tempered our expectation of COVID's hit on the Indian economy. S&P Global Ratings has revised real GDP growth to negative 7.7 percent for the year ending March 2021, from negative 9 percent previously," S&P said in a statement. The US-based rating agency said its revision in growth forecast reflects a faster-than-expected recovery in the quarter through September. For the next fiscal, it projected India's growth to rebound to 10 percent. Read more

GOI may recommend a looser inflation target for RBI

GOI may recommend a looser inflation target for RBI

Wednesday, December 9, 2020

GOI is considering recommending a looser inflation target for RBI, allowing it to focus more on economic growth despite price pressures, according to some sources. A consumer-price inflation band tracked by the Reserve Bank of India may be relaxed further from the current 2%-6% range. The government still needs to hold consultations with the central bank before finalizing a new framework sometime next year. The current mandate, set in 2016, requires the RBI to keep headline inflation at the 4% midpoint of its target range. The Finance Ministry is of the view that the RBI can’t be saddled with a rigid inflation targeting framework, especially in situations when growth needs to be pushed, as per the sources. Read more

Nifty may touch 14,100 by December 2021

Nifty may touch 14,100 by December 2021

Thursday, November 12, 2020

Global brokerage firm Goldman Sachs and Nomura in a report dated November 11, has pegged Nifty50 target at 14,100 by December 2021and will be up 11 per cent from the current levels raising Indian Market as overweight on the back of strong capital flows. The reversal comes with foreign brokerages saying that earnings are likely to continue improving for the next two years after the sharp fall this year and a global recovery from the pandemic that jolted equity markets earlier this year. The foreign brokerage firm also highlighted that the market sentiment is high due to positive reports about the coronavirus vaccine. Nifty 50 has managed to chart its way to make fresh all-time highs repeatedly over the last few days. Goldman Sachs’ new target would see Nifty go another 11% from its current record high of 12,769 points. “We think the investment case for India has improved now, and upgrade it back to overweight,” Goldman Sachs said in a note. Read more

Indian economy saw growth rebound through Q2FY21: Nomura

Indian economy saw growth rebound through Q2FY21: Nomura

Tuesday, October 27, 2020

The Indian economy saw growth rebound through the second quarter of the ongoing fiscal with gross domestic product (GDP) contraction likely to have narrowed to -10.4% from the sharp -23.9% seen in the previous quarter, according to Nomura. The Nomura Monthly Activity Indicator, which takes into account high-frequency indicators from across sectors, improved to -8.6% year-on-year in September from -19.7% in August and a record low of -37.8% in June, “implying a swift GDP growth rebound”, the firm said in a report today. In the run-up to the festive season, aggregate demand recovered to 77% of normal in September against 71% recorded in the month earlier while aggregate supply picked up to 92% of normal in September against 86% in August, it said.

India's Q2- 2020 GDP growth most affected among G-20 countries

India's Q2- 2020 GDP growth most affected among G-20 countries

Thursday, September 3, 2020

IMF chief economist Gita Gopinath yesterday(2nd Sept.2020) tweeted a graph suggesting India's gross domestic product (GDP) may have shrunk the most among G-20 countries in the April-June quarter, at 25.6%, when compared with the previous quarter. In her tweet, accompanying the graph, Gopinath said, “In #GreatLockdown Q2 (June quarter) 2020 GDP growth at historical lows. The graph puts G20 growth numbers on a comparable scale, quarter-on-quarter non-annualised. Should expect rebounds in Q3 (September quarter) but 2020 overall will see major contractions. China recovers strongly in Q2 after a collapse in Q1 (March quarter)." The chart shows all countries except China registering GDP contraction. While China's economy is shown to have expanded by a robust 12.3 percent over the March quarter on a non-annualised basis, the UK is the most affected after India, with a GDP contraction of 20.4 percent. The US economy is shown to have shrunk 9.1 percent on a quarterly basis. Read more

MARKET UPDATE:Sensex climbed 450 points to reclaim 39,000-level and Nifty testing the 11,500-mark

MARKET UPDATE:Sensex climbed 450 points to reclaim 39,000-level and Nifty testing the 11,500-mark

Tuesday, September 1, 2020

The historic fall in Q1 GDP growth did not dampen the sentiment of investors who sent the benchmark indices near a percent higher in today's (1st September 2020) early deals ahead of the Supreme Court's verdict on AGR. The S&P BSE Sensex climbed 350 points, or 0.92 percent, and reclaimed the 39,000-level and the Nifty50 index was testing the 11,500-mark. IndusInd Bank (up 4%), Tata Steel, State Bank of India, and Bajaj Finance (all up 2%) were the top Sensex gainers. On the other hand, ONGC dipped 3 percent. The Supreme court is set to deliver decisions on three key issues: the tenure for staggered payment of AGR dues, whether or not Reliance Jio has to pay the hefty AGR dues bill of Rcom, and Bharti Airtel, that of Aircel and Videocon. And three, whether banks can, as creditors, transfer spectrum to a new buyer under IBC, without first taking cognizance of the dues of the government. Read more

Public Sector Banks face fresh capital shortages as coronavirus aftermath: Moody's

Public Sector Banks face fresh capital shortages as coronavirus aftermath: Moody's

Friday, August 21, 2020

Public sector banks in India will need external capital injection of Rs 1.9-2.1 trillion over the next two years to restore loss absorption capacity, according to Moody’s. The most likely source of capital to plug these capital shortfalls is the government, despite its completion of a large recapitalisation just a few months ago. Uncertainty surrounding India's economic recovery and the ongoing clean-up of balance sheets are making it difficult for banks to raise equity capital from markets, the rating agency said in a statement. "PSBs dominate India's banking system, meaning any failure could jeopardise financial stability Moody’s, said. The sharp slowdown in India's economic growth, exacerbated by the coronavirus outbreak, will hurt public sector banks' (PSBs) asset quality and drive up credit costs. The Non-Performing Loans (NPLs) ratio will rise to 14.5 percent by March 2022 from 11 percent as of March 2020.

Moody's Investors Service forecast a negative outlook for the steel industry in India

Moody's Investors Service forecast a negative outlook for the steel industry in India

Wednesday, July 29, 2020

Due to the adverse effect of coronavirus pandemic on the economy Steel consumption is expected to decline at least 10 percent for rated Indian steel-makers, says a report. Moody's Investors Service in the latest report has forecast a negative outlook for the steel industry in the Asia Pacific region. According to Moody's Investors Service, India's (Baa3 negative) economic growth will remain materially lower than in the past, with real GDP contracting 3 percent in 2020. "We assume that economic activity will gradually pick up in July. However, given the possibility for second or third waves of virus infections or deeper economic costs than currently factored in, the downside risk to these forecasts is significant," the agency said. Moody's estimates that lower GDP growth will translate into steel consumption falling at least 10 percent for rated steel-makers in the 12 months to March 2021.

India's GDP growth to lose momentum from late third quarter: Oxford Economics report

India's GDP growth to lose momentum from late third quarter: Oxford Economics report

Wednesday, July 29, 2020

Oxford Economics, a Global forecasting firm, yesterday (28th July 2020) said it expects India's GDP growth to lose momentum from the late third quarter (October-December) of the current fiscal as the push from the initial reopening fades. It further said India fares the worst in its Asia recovery scorecard, implying that the country will likely take the longest among major economies to converge to its pre-coronavirus growth level. Oxford Economics, in a report titled 'India: A reopening went wrong', said the central government's attempts to restart the economy are already running aground. "In our baseline, we expect GDP growth to lose momentum from late Q3 on, once the push from the initial reopening fades and, likely compounded by the ongoing pandemic and inadequate policy support, legacy economic headwinds re-assert themselves. Read more

Is there a nagging worry behind the stocks rally on Dalal Street ?

Is there a nagging worry behind the stocks rally on Dalal Street ?

Tuesday, June 2, 2020

Behind the stocks rally seen on Dalal Street since late April lurks a nagging worry about growth prospects of the economy, which puts the market at risk of a sudden U-turn. A top Nomura analyst on Tuesday flagged this worry, saying that the equity risk premium remains high, which shows that investors are a worried lot. “India needs a big push from the government to revive the COVID-19-hit economy,” say experts. The government needs to spend on infrastructure in a big way to revive growth as corporates are not investing at this point in time. This came a day after Moody's Investors Service downgraded India’s sovereign credit rating for the first time in more than two decades. The latest official data showed the economy grew at 4.2 percent in FY20, the slowest rate in 11 years. Read more

Fitch ratings, CRISIL, and SBI Research cut India’s economic growth forecast

Fitch ratings, CRISIL, and SBI Research cut India’s economic growth forecast

Wednesday, May 27, 2020

Fitch Ratings, CRISIL, and SBI Research have drastically cut India’s economic growth forecast in the current fiscal year due to a prolonged lockdown. While both Fitch and CRISIL projected the economy to contract 5 percent, from their earlier estimates of the economic growth at 0.8 percent and 1.8 percent, respectively, SBI Research slashed economic contraction to 6.8 percent from earlier 4.7 percent. CRISIL said it expected the current quarter’s GDP to shrink 25 percent year on year. In its latest report, CRISIL said it would really be a long road to recovery, and going back to the pre-COVID-19 trend level of gross domestic product (GDP) in India will not be possible for the next three fiscal years. The lockdown extension, higher economic costs, and an economic package that lacked muscle are the three key reasons why CRISIL has downgraded the GDP forecast

Goldman Sachs, Nomura lower FY21 GDP estimate for India

Goldman Sachs, Nomura lower FY21 GDP estimate for India

Friday, May 8, 2020

Goldman Sachs and Nomura (Global research and broking houses) – have sharply cut their economic growth projections for India FY 21 and expect the RBI to cut rates sharply to stem the economic rout caused by the lockdown due to Covid-19 pandemic. Analysts at Goldman Sachs, for instance, expect the Indian economy to contract 0.4 percent in FY21 versus consensus median 2.7 percent following the extension of the nationwide lockdown. In April, they had expected the GDP growth to slip to 1.6 percent in FY21. Read more

India's GDP growth at 4.7% in Q3 of FY2020, marginal improvement over Q2

India's GDP growth at 4.7% in Q3 of FY2020, marginal improvement over Q2

Saturday, February 29, 2020

India’s GDP growth in the October-December quarter of 2019 (Q3 of FY20) stood at 4.7 percent, as per the data released by the Central Statistics Office (CSO) on 28th Feb. The data also showed that projections for economic growth in FY2020 had been at 5 percent in the second advance estimates. The rate of the country’s economic growth had stood at a six-year low of 4.5 percent in the previous quarter (Q2) and 6.6 percent in the same quarter a year earlier (Q3 of FY19). India’s GDP growth in FY2019 had stood at 6.8 percent.

Tag: growth

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