Sunday, December 4, 2022
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News Bulletin

 « Pre- Market Report

14th December 2022
Key US equity indices ended with huge losses yesterday, as shares of technology cos saw a rout - on the back of deteriorating outlook for iPhone sales. Shares of technology giant - Apple Inc slumped 5%, after Lumentum Holdings Inc - which makes the face-id technology for co, cut it’s growth outlook. Lumentum Holdings tanked as much as 33%. Several other Apple suppliers - including Cirrus Logic Inc & Qorvo Inc, also fell because of this development. In the face of rising interest-rates in various economies, investors are worried that high growth cos - such as Apple, may not be able to sustain their growth rate. Financial stocks also fell - as shares of Goldman Sachs tanked 7.50%, after reports said that Malaysian Finance-Minister (FM) - Lim Guan Eng said the country was seeking a full refund of all the fees it paid to the US bank for arranging billions of dollars of deals for troubled state fund - 1Malaysia Development Berhad.
Key European equity indices finished broadly lower yesterday, with shares in Germany falling the most. While Germany’s DAX plunged by 1.77%, France's CAC-40 closed with steep losses of 0.93%, & London's FTSE-100 ended lower by 0.74%.
Key Asian equity indices are seen tanking in early morning trade today - following an overnight rout in their US counterparts, as the outlook for iPhone maker - Apple Inc & it’s suppliers has turned bleak. Shares of technology giant - Apple Inc slumped 5%, after Lumentum Holdings Inc - which makes components for the face-id technology for the co, cut it’s growth outlook. Japan's benchmark - Nikkei-225 was the worst hit in the region, with a 3% fall - as shares of Apple suppliers in the region fell. In the face of rising interest-rates in various economies, investors are worried that high growth cos - such as Apple, may not be able to sustain their growth rate. This was reflected in the 3% fall in shares of Samsung Electronics. NIFTY Supports: S1 10416 | S2 10349 | S3 10234…. Resistances: R1 10531 | R2 10597 | R3 10712….
FII’s Net Buys 832.15 Cr in equity & Net Sells 289.94 Cr in F&O (Sells 168.84 Cr in index futures, Buys 8.74 in index options, Sells 146.85 Cr in stock futures, & Buys 17.01 in stock options), and DII’s Net Sells 1073.84 Cr in equity, on Monday (12th Nov’18). Indian ADR’s closed down/negative in trade, yesterday::: INFY declined by 1.58%, WIPRO down by 0.40%, ICICI BANK fell by 2.69%, HDFC BANK fell by 2.62%, TATA MOTORS nose-dived by 7.55%, DR REDDY’S LABS up by 0.39%, VEDANTA slumped by 3.92%, & MAJESCO rose by 2.62%.
Stocks in F&O ban today (13-Nov-18): ADANI POWER. DOLLAR ALERT: The US Dollar (U$D) traded just below a 16-month high versus a basket of peers - in early trade today, benefiting from safehaven flows - as investors shunned riskier assets because of political uncertainties in Europe & fears of a global economic slowdown. Investor confidence has been eroded by bitter trade-tensions between the United States (US) & China, fears of a no-deal ‘Brexit’, and a stand-off between Rome & the European-Union (EU) - over Italy's deficit-deepening budget. Added to that litany is a view that corporate earnings growth has peaked - amid rising borrowing costs.
The Japanese yen was the only major currency to gain Vs the U$D overnight - as risk-aversion caught hold of investors. It traded at 113.66 today - as the greenback lost 0.16% Vs the yen. The yen touched a 6-week low of 114.20 yesterday - before the safe-haven bids kicked-in. The U$D has been preferred over the yen, due to the diverging monetary policies of the US Federal Reserve & the Bank of Japan (BoJ) - which is expected to retain it’s ultra-loose monetary policy settings for some time in the face of stubbornly sluggish inflation. The Dollar Index - which tracks the greenback against a basket of 6 major rival currencies, traded at 97.60 - sitting just shy of it’s 16-month high of 97.69 hit yesterday.
GOLD ALERT: Gold prices edged higher in early trade today, as investors looked for bargains - after the metal fell to a more than 1-month low on a stronger US dollar (U$D). Spot gold was up 0.20% - at U$D 1,202.99 per ounce at 0125 GMT, having touched their lowest since 11th Oct’18 - at U$D 1,199.72/ounce earlier in the session. US gold futures were flat at U$D 1,203.40 per ounce. SPDR Gold Trust - the world's largest gold-backed exchange-traded fund (ETF), said it’s holdings rose 0.90% - to 762 tonnes yesterday. Turkey raised it’s gold holdings by 7.87 tonnes - to 471.44 tonnes in Oct’18, according to the International Monetary Fund (IMF).
CRUDE-OIL ALERT: Global oil prices fell by more than 1% - in early trade today, after US President - Donald Trump put pressure on OPEC - not to cut supply to prop-up the market. The international/global benchmark - Brent crude-oil futures were at U$D 69.44 per barrel, down 68 cents or 0.97% from their last close. US West Texas Intermediate (WTI) crude-oil futures were at U$D 59.13 per barrel, down 80 cents, or 1.33% from their last settlement. Both oil price benchmarks have shed more than 20% in value - since early Oct’18
Saudi Energy Minister - Khalid al-Falih, yesterday, said that the Organization of the Petroleum Exporting Countries (OPEC) - which Saudi Arabia de-facto leads, agreed there was a need to cut oil supply next year - by around 1 million barrels per day (MBPD) from Oct’18 levels, to prevent over-supply. US President - Donald Trump put pressure on Saudi Arabia & OPEC not to cut supply, in order to prop-up the market. "Hopefully, Saudi Arabia & OPEC will not be cutting oil production. Oil prices should be much lower - based on supply!", Trump wrote on Twitter yesterday. Oil prices saw a correction, after US President - Trump voiced his disapproval of the move by OPEC & Saudi Arabia to potentially cut-back supply.
CURRENCY ALERT::: The embattled/beleaguered domestic currency (INR) dropped by 39 paise or 0.54% - to settle at 72.89 against the American currency (U$D) yesterday, as oil prices rebounded - after Saudi Arabia announced plans to cut production & the greenback strengthened in global markets. Having opened lower - at 72.74/U$D, the INR fell further by 57 paise - to the day's low of 73.07/U$D, as crude-oil prices surged over 1% - to reclaim U$D 71/barrel level, cutting short it’s 10-day selling trend.
COAL INDIA Q2FY19 Consolidated PAT at Rs 3,084.70 Cr Vs Rs 3,786.44 Cr (QoQ), & Rs 370.43 Cr (YoY)…. Net Sales/ Income from Operations at Rs 20,712.71 Cr Vs Rs 22,597.80 Cr (QoQ), & Rs 17,478.52 Cr (YoY)…. Alert::: The co’s Q2FY19 PAT adversely impacted - vis-à-vis Q1FY19 (QoQ), on account of lower ‘Other Income’ at Rs 2,011.27 Cr Vs Rs 2,262.36 Cr in Q1FY19 (QoQ). AUROBINDO PHARMA Q2FY19 Consolidated PAT at Rs 611.43 Cr Vs Rs 455.66 Cr (QoQ), & Rs 781.15 Cr (YoY)…. Net Sales/ Income from Operations at Rs 4,667.12 Cr Vs Rs 4,181.56 Cr (QoQ), & Rs 4,354.18 Cr (YoY)…. The co also declared an interim dividend of Rs 1.25/share for FY19, with 22nd Nov’18 fixed as Record Date for the same.
EICHER MOTORS Q2FY19 Consolidated PAT at Rs 548.76 Cr Vs Rs 576.18 Cr (QoQ), & Rs 518.02 Cr (YoY)…. Net Sales/ Income from Operations at Rs 2,395.22 Cr Vs Rs 2,534.29 Cr (QoQ), & Rs 2,161.14 Cr (YoY)…. Alert::: (1). The co’s Q2FY19 PAT significantly boosted by higher ‘Other Income’ at Rs 93.95 Cr Vs Rs 59.61 Cr (QoQ), & Rs 69.94 Cr (YoY)…. (2). Also, the co’s Q2FY19 PAT significantly boosted by higher ‘Share of profit of joint-venture (JV)’ at Rs 77.17 Cr Vs Rs 64.29 Cr (QoQ), & Rs 51.77 Cr (YoY). SHREE CEMENT Q2FY19 PAT at Rs 49.33 Cr Vs Rs 279.48 Cr (QoQ), & Rs 211.50 Cr (YoY)…. Net Sales/ Income from Operations at Rs 2,586.59 Cr Vs Rs 3,069.91 Cr (QoQ), & Rs 2,142.38 Cr (YoY)…. Alert::: (1). The co’s Q2FY19 PAT adversely impacted by ‘Exceptional Loss/Expense’ at (- Rs 178.13 Cr)…. (2). Also, the co’s Q2FY19 PAT adversely impacted by substantially lower ‘Other Income’ at Rs 51.37 Cr Vs Rs 93.63 Cr (QoQ), & Rs 99.51 Cr (YoY).
JET AIRWAYS (INDIA) Q2FY19 Net Loss at (-Rs 1,297.46 Cr) Vs Loss of (-Rs 1,323 Cr) (QoQ), & Profit of Rs 49.63 Cr (YoY)…. Net Sales / Income from Operations at Rs 6,161.15 Cr Vs Rs 6,010.46 Cr (QoQ), & Rs 5,626.61 Cr (YoY)…. Alert::: (1). The Co’s Q2FY19 Bottom-Line adversely impacted by higher ‘Aircraft Fuel Expenses’ of Rs 2,419.76 Cr Vs Rs 2,332.49 Cr (QoQ), & Rs 1,525.66 Cr (YoY)…. (2). Also, the co’s Q2FY19 bottom-line adversely impacted - vis-à-vis Q2FY18 (YoY), on account of substantially lower ‘Other Income’ at Rs 75.54 Cr Vs Rs 131.57 Cr in Q2FY18 (YoY).
VARDHMAN TEXTILES Q2FY19 Consolidated PAT at Rs 196.41 Cr Vs Rs 159.13 Cr (QoQ), & Rs 133.15 Cr (YoY)…. Net Sales/ Income from Operations at Rs 1,685.10 Cr Vs Rs 1,699.97 Cr (QoQ), & Rs 1,523.06 Cr (YoY)…. KIRI INDUSTRIES Q2FY19 Consolidated PAT at Rs 112.24 Cr Vs Rs 86.23 Cr (QoQ), & Rs 92.61 Cr (YoY)…. Net Sales/ Income from Operations at Rs 373.02 Cr Vs Rs 333.07 Cr (QoQ), & Rs 268.09 Cr (YoY)….
JINDAL SAW Q2FY19 PAT at Rs 101.73 Cr Vs Rs 95.41 Cr (QoQ), & Rs 60.10 Cr (YoY)…. Net Sales/ Income from Operations at Rs 2,337.20 Cr Vs Rs 2,284.31 Cr (QoQ), & Rs 1,321.19 Cr (YoY)…. BANK OF INDIA (BOI) Q2FY19 Net Loss at (-Rs 1,156.25 Cr) Vs Profit of Rs 95.11 Cr (QoQ), & Profit of Rs 179.07 Cr (YoY)…. NET NPA at 7.64% Vs 8.45% (QoQ), & 6.47% (YoY)…. Provision Coverage Ratio (PCR) at 69.12% Vs 66.67% (QoQ)…. Alert::: The co's Q2FY19 bottom-line adversely impacted by higher ‘Provision (other than tax) & Contingencies’ at Rs 3,343.27 Cr Vs Rs 2,564.19 Cr (QoQ), & Rs 1,953.30 Cr (YoY).
INDIA OCT'18 CPI INFLATION DATA OUTCOME ALERT::: India’s retail inflation eased to 3.31% in Oct'18 - the lowest in a year, Vs 3.70% in Sep'18 (MoM), driven by cheaper food items, data released by the govt's Central Statistics Office post market hours today showed. Retail inflation - measured by Consumer Price Index (CPI), stood at 3.58% in Oct'17 (YoY). Context::: CPI is the main price gauge that the country's apex/central bank - the Reserve Bank of India (RBI) tracks. According to central bank's latest estimate, retail inflation is projected at 3.70% in the Jul-Sep'18 quarter (Q2FY19), 4.80% in the Jan-Mar'19 quarter (Q4FY19), & 3.80-4.50% during Oct'18-Mar'19 (H2FY19) of the current fiscal 2018-19 (FY19).
A lower rate of inflation for Oct'18 - amid softening crude-oil prices & relatively stable domestic currency (INR), lowers the possibility of a rate-hike by the RBI - at it's next scheduled 5th bi-monthly monetary policy review meeting on 3-5 Dec'18. Going forward, headline inflation is expected to remain benign - given the recent downturn in oil prices, stability in the INR, & mild inflation prints. The next inflation print could be even lower. INDIA SEP'18 IIP DATA OUTCOME ALERT::: India's industrial production grew marginally - at 4.50% in Sep'18 Vs 4.30% in Aug'18, data released by the govt's Central Statistics Office (CSO) post market hours today showed. Manufacturing sector output - which accounts for more than 3/4ths of the entire index, was unchanged at 4.60%. This monthly trend in factory output data - broadly indicates that there has not been any significant acceleration in factory output, despite waning of the impact of both demonetisation & implementation of GST. Context::: Factory output - measured
   
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