Companies and Markets

Companies & Markets

Better Q3 Numbers Seen for Key Sectors

The dynamics of the equity market is largely determined by corporate earnings. And the December quarter earnings season is set to kick off now, with top software exporters announcing their numbers in the coming fortnight.

India Inc’s Q3 performance is expected to show signs of improvement with the ill-effects of GST implementation coming down and better demand conditions prevailing in urban and rural markets on the back of an early festive season and improved consumer demand.

Idea to raise Rs 6,750 cr, sell shares to group firms

Idea Cellular, India’s third largest telecom operator, on Thursday announced a Rs 6,750 crore ($1.1 billion) fund infusion plan ahead of its merger with Vodafone’s local unit later this year.

As part of the plan approved by its board, Idea will raise Rs 3,250 crore by selling 326.6 million shares on a preferential basis to companies controlled by its parent Aditya Birla Group at Rs 99.5 apiece. The deal will increase Aditya Birla Group’s stake in Idea to 47.2 per cent from 42.4 per cent now, the company said.

Positive technical evidence of uptrend

The market ended with modest gains on the back of positive cues from global markets. The Sensex rose 176.26 points, or 0.52%, to settle at 33,969.64, while the Nifty 50 gained 61.60 points, or 0.59%, to end at 10,504.80.

The BSE Mid-Cap and Small-cap indices rose 0.71% and 0.88%, respectively, outperforming the Sensex. The broad market depicted strength. There were almost two gainers against every loser on BSE.

Better Q3 Numbers Seen for Key Sectors

The dynamics of the equity market is largely determined by corporate earnings. And the December quarter earnings season is set to kick off now, with top software exporters announcing their numbers in the coming fortnight.

India Inc’s Q3 performance is expected to show signs of improvement with the ill-effects of GST implementation coming down and better demand conditions prevailing in urban and rural markets on the back of an early festive season and improved consumer demand.

Equity indices hit record high for third day in a row

The global equity market touched a record high as stocks gained for a third straight day in the New Year.

The FTSE All World index rose 1.7 per cent in the New Year, extending the 2017 gain of 22 per cent, while the Dow Jones Industrial Average rose above 25,000 mark and S&P 500 made further gains.

Rupee at 30-mth high; yen, won, baht do even better

The rupee on Thursday appreciated to 30-month high of 63.41 against the dollar, tracking gains in local equity market. Analysts expect the local currency to strengthen towards 62-level by month-end on strong foreign inflows in domestic stocks and foreign direct investment (FDI).

Forex experts said that exporters are unlikely to be impacted significantly by a stronger rupee, as global currencies have appreciated much more than the local unit.

10-year bond yields may shoot up to 7.5-8% range

The 10-year G-sec yields have risen by almost 85 basis points to 7.4 per cent over the past 13 weeks, making bond traders cautious.

Apart from fiscal developments, inflationary concerns, high oil prices and rising US rates may make the Reserve Bank of India (RBI) settle into a long pause.

The ten-year bond yields have risen to 7.4 per cent this month, back to July 2016 highs and up around 90 basis points in 2017, compared to relatively flat movements in the region (ex-India and China).

Crude oil at three-year high of $68.27 per barrel

While the broader commodity market received support from weakening US dollar, crude oil prices hit three-year high levels amid supply concerns.

With the positive sentiment continuing, Brent crude is likely to move up to $70 per barrel in the coming session, said analysts.

Brent crude moved to $68.27 per barrel intraday on Thursday, a level last seen in December 2014. US West Texas Intermediate crude at the New York Mercantile Exchange moved up to $62 per barrel.

Metals rise after months of volatility as US, China show way

Recovering economic sentiment across the world, particularly in China and the US, has resulted in commodities rallying globally in the last two weeks, after years of volatility. India was no exception. While yellow metal glittered, rising to its highest levels in over three months (spot gold hit $1311.14 an ounce, its highest level since September 2017), base metal too was seen wavering near their recent highs.

Moody’s: Recap to narrow gap between public & pvt lenders

The gap between the capital profiles of Indian public and private sector banks is expected to narrow.

This follows the government’s proposed Rs 2.11 lakh crore recapitalisation plan for public sector banks (PSBs), which are financially weaker entities, said Moody’s Investors Service on Thursday.

As of September 2017, the average common equity tier 1 (CET1) ratio of rated public sector banks was 8.7 per cent compared to 12.2 per cent for the rated private sector banks.

However, the gap is expected to narrow, given the government’s recapitalisation package.

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