China’s strict lockdown policies have been crimping economic growth in the world’s second-largest economy. Moreover, Goldman Sachs sees India’s economic growth slowing next year, citing a hit to consumer demand from higher borrowing costs and fading benefits from the pandemic reopening.
BNP Paribas Indian Pharma and Healthcare Q2 Earnings Reviews
Sriraam Rathi , analyst – pharma and healthcare, BNP Paribas India
Pharmaceuticals: 2QFY23 trends
· The domestic formulations business’ aggregate reported growth was 6.2% y-y and adjusted for growth of Covid-related sales, the aggregate growth was in double digits.
· The US generics business reported 8.7% growth q-q at the aggregate level, largely driven by the launch of Revlimid by DRRD, CIPLA and ZYDUSLIF
· We think product launches and revenue market share gains are key in this market for growth. SUNP reported q-q growth on a q-q rise in volumes
Healthcare: 2QFY23 trends
· Occupancy levels for hospital companies recovered and neared pre-Covid levels, led by an increase in footfalls as well as a pick-up in elective surgeries and international patients’ visits. We expect occupancy levels to remain steady or improve.
· Diagnostics companies’ three-year CAGR for non-Covid revenue (excluding acquisitions) was steady in high single digit, led by a pick-up in volumes and rising share of health packages
· EBITDA margin improved q-q for diagnostics companies as non-Covid revenue improved and costs were stable
Oil & Gas index shed in today’s trading, most stocks in red
Keystone Realtors IPO allotment announced; shares listing this week
The finalisation of the basis of share allotment of Keystone Realtors has been done and now all eyes are on the listing of the company’s shares which is expected to happen this week. Keystone Realtors, which sells properties under the brand ‘Rustomjee’, saw its initial public offering (IPO) receive 2 times subscriptions on the last day of the offer that was open from Monday, November 14, 2022, to Wednesday, November 16, 2022.
The shares of the company are expected to make their market debut on the leading stock exchanges BSE and NSE this week on Thursday, November 24, 2022. (Read More)
Nestle India drags on Tuesday, among biggest laggards
Nykaa shares tumble nearly 4% on likely stake sale by Lighthouse India
Shares of FSN E-Commerce Ventures, parent of beauty-to-fashion e-tailer Nykaa, fell 3.6% on Tuesday after private equity firm Lighthouse India likely sold 1.8 crore shares of the company in a block deal.
Lighthouse India held a 2.04% stake, or a little over 5.81 crore shares, in Nykaa as of 12 November. It was reported that the PE firm will sell 0.65% of its stake worth ₹320 crore in Nykaa. Bank of America was the broker for the deal. (Read More)
Japanese shares end higher; caution ahead of Fed minutes limit gains
Japanese shares ended higher on Tuesday, as the yen’s weakness against the U.S. dollar raised prospects of a better outlook for domestic manufacturers, although caution ahead of the release of the Federal Reserve’s minutes of policy meeting limited gains.
The Nikkei share average rose 0.61% to close at 28,115. 74, while the broader Topix climbed 1.12% 1,994.75.
“There were no specific market-moving cues but investors liked the yen’s weakness. Investors probably bought back stocks to cover their short positions ahead of a market holiday tomorrow as the yen may weaken further after comments from the Federal Reserve,” said Yutaka Miura, senior technical analyst at Mizuho Securities. (Reuters)
HC rejects Future Group’s plea seeking termi
The Delhi High Court on Tuesday rejected Future Group’s plea challenging the Singapore International Arbitration Centre’s (SIAC) order that had dismissed the Indian retailer’s plea to stay the arbitration proceedings with Amazon Inc. This paves the way for Amazon to continue its arbitration proceedings with Future Group which will commence from 28 November.
On 17 November, the top court had made it clear that it will not allow stalling of arbitral proceedings pending before the Singapore International Arbitration Centre (SIAC) pertaining to the ongoing legal tussle between US e-commerce major Amazon and the Future Group, saying the sanctity of such proceedings needed to be maintained. (Read More)
Near-term gain of steel producers limited despite export duty rollback: Crisil
The government’s decision to withdraw export duty on steel products and raw materials will improve sector sentiment but may not materially increase the near-term earnings of domestic primary steel manufacturers because of subdued global demand, said CRISIL Ratings in a note.
“However, in the long run, it should improve export competitiveness of the additional capacities being set up,” said CRISIL. (Read More)
As Kaynes Technology shares list at premium, should investors buy, sell or hold?
Shares of Kaynes Technology India Ltd on Tuesday were listed with a premium of 32.5% at ₹775 apiece against the issue price of ₹587, and later touched an intraday high of ₹787 on the BSE in the early trading session.
“Kaynes Technology is a leading end-to-end and IoT solutions-enabled integrated electronics manufacturing company. The issue has been subscribed 34x , which can give it good listing gains. Syrma SGS, Dixon, and Amber Enterprise are its listed peers. Investors can hold it with mid-term to long-term perspective,” said Manoj Kumar Dalmia, Founder and Director, Proficient equities Private limited. (Read More)
Divi’s Laboratories gains in today’s session, adds more than 1%
Ministers’ panel may recommend 28 pc GST on online gaming, tweak in calculation method
The panel of state finance ministers is likely to recommend a uniform GST levy of 28 per cent on online gaming irrespective of whether it is a game of skill or game of chance, sources said.
However, it is likely to suggest a revised formula for calculating the amount on which the Goods and Services Tax (GST) would be levied.
Currently, online gaming attracts 18 per cent GST. The tax is levied on gross gaming revenue, which is the fees charged by online gaming portals.
Sources said that the GoM report is almost final and would be submitted to the GST Council soon for consideration. (PTI)
Nykaa shares see another big fall today. Should you try bottom-fishing?
Shares of FSN E-Commerce Ventures Ltd., owner of beauty e-retailer Nykaa, fell as much as 5% today as pre-IPO investors continue to exit the stock after the expiry of lock-ins. Stocks often fall after lock-ups expire, as investor selling puts downward pressure on shares. At day’s low, Nykaa shares were down at at ₹174.5, before paring some losses. At 11:30 am, the stock was down 3.5% at ₹177.20.
Nykaa shares had got listed last November and the mandatory lock-in period for pre-IPO investors came to an end on November 10. Apart from lock-in expiry, concerns over valuations and rising global rates have also taken their toll on some high-profile internet stocks, even as the broader Indian stock market has outperformed global peers and scaled new peaks. (Read More)
Noon Update: Indices trade in green with Sensex up by 190 points and Nifty by around 60 points
NDTV shares slump 3% as Adani Group’s open offer gets underway
Shares of media company NDTV Ltd. fell over 3% on Tuesday in early deals as the Adani group launched an open offer to buy an additional 26% stake, or 1.67 crore shares, in the company. The offer price is 294 rupees, a discount of 23.07% from the last close.
Metal Index gains with indices adding 0.5% and most stocks in the green
Removal of export duty will strengthen steel sector: Jyotiraditya Scindia
Union Minister of Steel Jyotiraditya Scindia has stated that the removal of export duties on steel will herald a new era for the Indian steel sector and allow it to establish its position in the global market.
Delivering the keynote address at the third conclave of the Indian Steel Association (ISA) on Monday, Scindia said that the steel sector will not only restore its international footprint but will also reach newer heights in the domestic market.
Scindia stated that Prime Minister Narendra Modi has put forth the mandate to enhance capital infrastructure by nearly ₹17 lakh crore per year, thus increasing demand for steel by close to double digits (approximately 10 per cent per year). (ANI)
Elon Musk loses ₹2,500 crore every day this year amid Twitter troubles
World’s richest Elon Musk’s losses in his net worth for this year topped $100 billion as shares of Tesla Inc dropped to the lowest level in two years. The billionaire’s wealth eroded the most as compared to anyone on the Bloomberg wealth index, after peaking at $340 billion a little more than a year ago.
According to the Bloomberg Billionaires Index, Tesla’s chief executive officer (CEO) Elon Musk’s wealth has declined over 37% or $101 billion in value in 2022, losing about ₹2,500 crore a day. His total wealth stands at $170 billion as of November 22, 2022. The Bloomberg Billionaires Index is a daily ranking of the world’s richest people. The figures are updated at the close of every trading day in New York. (Read More)
IndusInd Bank gains in today’s session; adds more than a per cent
Prabhudas Lilladher recommendations on India Cement: BUY
Vaishali Parekh – VP – Technical Research, Prabhudas Lilladher Pvt. Ltd says:
BUY INDIA CEMENT
CMP: 236 TRGT: 270 SL: 225
The stock after the decent correction has bottomed out and consolidated near 224 levels and currently has picked up momentum with a positive bullish candle pattern to improve the bias. The RSI is also well placed and indicated a trend reversal from the oversold zone to signal a buy. We suggest to buy and accumulate this stock for an upside target of 270 keeping the stop loss of 225.
INDIA BONDS-Bond yields steady ahead of state debt sale
India’s bond yields were steady early on Tuesday as traders avoided placing large bets ahead of a debt auction by states.
The benchmark 10-year govt bond yield was at 7.327% as of 0427 GMT, after closing at 7.320% on Monday.
Since there are no major domestic or global triggers, the market will take cues from state-debt auction cut-offs, said Debendra Kumar Dash, senior vice president, treasury, at AU Small Finance Bank. The auction will be well-bid with strong demand from pension funds and insurance companies for longer-tenure bonds, Dash said.
Indian states aim to raise an aggregate of 149.63 billion Indian rupees ($1.83 billion) later in the day through a sale of bonds maturing in four years to 25 years.
During the day, yields are seen moving in the range of 7.28%-7.34%, according to dealers. (Reuters)
Realty index remains under pressure; sheds 1%
Govt preparing ‘coking coal mission’ to diversify raw material sources: Steel minister
The government is preparing a ‘coking coal mission’ to diversify the sources of key steel-making raw material, for which the country is heavily dependent on imports, according to Union minister Jyotiraditya Scindia.
The mission is part of the government’s efforts to reduce dependence on imports for coking coal and increase the use of locally available coal in the steel making through the gasification process, the steel minister told PTI in an interview.
“We (the government) are in the process of making it (coking coal mission). It is the coal ministry’s purview,” Scindia said in response to a question on the government’s initiative towards increasing the availability of raw material in the country.
India imports around 90 per cent of its coking coal requirement. The coal produced within the country has high ash content, the minister said.
Coal with high ash content is not suitable for steel making through the blast furnace route. (PTI)
Kaynes Technology shares surge on market debut as stock lists at strong premium
Shares of Kaynes Techonology India Ltd made a strong market debut on Tuesday with the stock listing at ₹778 apiece on the NSE, a premium of more than 32% as compared to its IPO issue price of ₹587 per share. On the BSE, Kaynes Technology shares started trading at ₹775 apiece.
“The company has reported strong financial growth, especially in recent years, and its margins have also improved significantly. It has a diversified business and customer profile and robust expansion in the order book; So, allottees who applied for the public issue for listing premium are advised to maintain a stop loss at ₹710 and wait for further upside whereas those who have medium to long-term perspective can hold the stock maintaining a stop loss at ₹680,” said Pravesh Gour, Senior Technical Analyst, Swastika Investmart Ltd. (Read More)
Ultratech Cement climbs 1% in today’s session; tops the stock chart
Rupee gains 14 paise to 81.65 against US dollar in early trade
The rupee appreciated 14 paise to 81.65 against the US dollar in early trade on Tuesday as the American currency retreated from its elevated levels.
Forex traders said foreign fund outflows and a muted trend in domestic equities weighed on the local unit and restricted the appreciation bias.
At the interbank foreign exchange, the domestic unit opened at 81.72 against the dollar, then gained further ground to touch 81.65, registering a rise of 14 paise over its previous close.
On Monday, the rupee depreciated by 5 paise to close at 81.79 against the US dollar.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.24 per cent to 107.57. (PTI)
Cannot leave homes without Covid negative test: China locks down millions
The southern Chinese metropolis of Guangzhou locked down its largest district Monday as it tries to tamp down a major COVID-19 outbreak, suspending public transit and requiring residents to present a negative test if they want to leave their homes.
The outbreak is testing China’s attempt to bring a more targeted approach to its zero-COVID policies while facing multiple outbreaks driven by fast-spreading omicron variants. China is the only major country in the world still trying to curb virus transmissions through strict lockdown measures and mass testing. (Read More)
ONGC stock price sheds in initial trading; down more than a per cent
Geojit Financial Services on today’s market: The weakness in the market is likely to continue in the near term
Dr V K Vijayakumar, chief investment strategist at Geojit Financial Services: “The weakness in the market is likely to continue in the near term. With the dollar index rebounding to above 108, FIIs may sell again or at least refrain from big buying. There are no positive triggers now that can take the market much higher from the current levels. The Covid spread in China is likely to impact Chinese growth and, therefore, further weakness in crude and metals is likely. Long-term investors can utilize the weakness in the market to buy high-quality stocks in banking, telecom, capital goods, IT and autos and blue chips across sectors.”
PSU Bank index continues to shine with the index jumping 1% in early trading; most stocks in green
Vedanta’s interim dividend decision to be taken in board meet today
Vedanta’s board of directors will meet on Tuesday, November 22, 2022, and will consider and approve the third interim dividend on equity shares, if any, for the Financial Year 2022-23. A dividend means the distribution of surplus from the profits by a listed company to its shareholders.
“The Board of Directors of the Company (the “Board”) on Tuesday, November 22, 2022, will consider and approve Third Interim Dividend on equity shares, if any, for the Financial Year 2022-23. Please note that the record date for the purpose of determining the entitlement of the equity shareholders for the said dividend, if declared, is being fixed as Wednesday, November 30, 2022,” Vedanta had informed in an exchange filing earlier this month. (Read More)