Mark to Market: Recent Episodes
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A show which covers comments and analysis which look at market-moving news and trends. This is a Mint production, brought to you by HT Smartcast.
DHFL’s acquisition would be a positive for Piramal Enterprises despite the short-term requirement of a large capital infusion. Even so, Piramal Enterprises must guard against buyer’s remorse as it sets to acquire DHFL. Why is that? Tune in here to find out.
Automobile companies have benefited from a strong festival season show. This is expected to reflect in the December quarter results but higher input costs could play spoilsport.
It has been 13 days into the New Year and some old trends are still playing out. One is that of dollar outflows from India’s bond markets. India’s equity market continues to see record dollar inflows but foreign investors are still exiting bonds. What gives? Tune in here to find out more.
Avenue Supermarts' is recovering at a faster pace than expected. Q3FY21 revenues grew by 10%, marking a reversal in the trend of revenue drop seen in the first half of FY21. Tune in here to find out more.
Banking shares have been one of the biggest gainers in the recent equity market rally. But can banks show the performance to justify the gains? December quarter results may show mostly healthy numbers but stress is still lurking in the balance sheets of lenders.
Shares of Info Edge (India) have risen about 11% so far in 2021, taking its rise compared to the lows of March to over 200%. Many analysts are struggling to justify valuations. What are the reasons behind the meteoric rise in the stock price? Tune in here to find out.
After forging several JV with Ford is the latest move in this regard. What are the implications? Listen in to find out.
Larsen & Toubro Ltd's market cap is currently at Rs 1.8 trillion, the exact same levels as three years ago. Actually, things would have been far worse, but for the stellar performance of its IT services subsidiaries. Why is that? The details are in this podcast. Listen in.
The aviation sector has been among the worst hit in 2020. Will 2021 bring any respite? Tune in here to find out what the new year can bring for Indian airlines.
The US government announced a stimulus package of $900 billion. While the jury is still out on whether this is enough to move the needle on recovery, it does pave the way for further US dollar weakness. Find out more about the US dollar outlook in this podcast.
With the final clutch of suitors competing intensely, the plot has turned in favor of DHFL's financial creditors. The valuation of DHFL has also gone up with revised bids. Listen in for more details on DHFL's resolution.
The RBI’s rate-setting committee is worried over inflation far more than its statement on 6 December showed. Minutes of the meeting reveal that members are closely monitoring the elevated inflationary pressures.
Going into 2021, emerging market (EM) equities are finding their lost charm again among investors. What is contributing to this rising popularity? What are the risks? Tune in here to find out more
Tata Consultancy Services stock has been seeing a good run in 2020 and is pricing in new opportunities, including cloud technology. Even so, the TCS stock has risen over 25% compared to pre-covid highs in February and valuations are not inexpensive. For more details, listen in.
ITC shares have surpassed the psychological barrier of Rs200 per share this week. But will the momentum sustain given the ESG concerns? Listen in, to find out.
A Mint report said Walmart is working towards an IPO for Flipkart, at a valuation of $40 billion. While the valuation seems like a stretch, note that share prices of some listed e-commerce firms in emerging markets have skyrocketed this year, helped by covid-19 led growth. But is that enough? Tune in to find out more.
RBI has left its policy rate and stance untouched in its latest meeting.
Contrary to market expectation, it has not indicated a change in its liquidity stance either.
While this has relieved markets, economists are calling it curtains down for rate cuts.
Auto stocks have shown sharp gains in anticipation of positive data in November. Auto sales from passenger vehicles to commercial vehicles are growing fast and much of this is already priced in. It means that any negative surprises may hurt investor sentiment.
L&T’s shares have fired up off late? Investors are appreciating the firm’s efforts to deal with elevated debt and order inflows.
Large order wins by the company have helped the stock but worries over margins remain.
Market research firm Nielsen predicts a mere 1.6% value growth for the FMCG sector for the September quarter.
This goes against the aggregate growth reported by listed companies for the quarter. Who is right? Listen in to find out
Whoever stuck their neck out in the Gland Pharma IPO is already sitting on decent gains. For an issue that offered full allotment for every application in the non-institutional category, it’s been among the best-performing IPOs for investors. Tune in here for more details.
About a year ago, BPCL's shares had rallied to more than ₹500 on the back of hopes around its proposed privatization. But since then, the stock has lost about 20%. Tune in here to find out more about the BPCL stock.
Banking regulator RBI is likely to revisit the idea of allowing big industrial houses to enter the banking system. An internal working group has made some key recommendations which the regulator is likely to adopt. But before it gives out licences, the RBI may allow big NBFCs to turn themselves into banks first
Lakshmi Vilas Bank would be the third bank to get rescued by the RBI in a span of just a year. The fact that three banks went under highlights the unsavoury weak points of India’s banking system. What are the key takeaways? Listen in for details.
Investors are banking on Aurobindo’s US pharma revenues getting a boost on the back of improving injectable sales in the second quarter. But a part of that growth already seems to be reflecting in the stock price gains of about 86% in 2020. Find more details in this podcast. Listen in.
Indigo’s stock leads global airlines in big valuation gains. Increasing daily traffic, market share gains and a vaccine in the works is making Indigo fly higher than its pre-covid levels.
The gush of liquidity in the equity markets is not hurting either.
Divi’s Laboratories stock has gained a whopping 83%. The firm’s capital expenditure plans has cheered investors. Its September quarter results too support the boost to valuations of the stock.
Gold loan companies are reaping benefits of a rise in gold prices and demand for emergency finance amid a pandemic.
Both Manappuram Finance and Muthoot Finance reported a rise in asset under management growth for the September quarter.
But will volatile gold prices upset this healthy trend?
HDFC, India’s largest mortgage lender showed quick recovery from the impact of Covid-19 pandemic in the September quarter.
Collections efficiencies are close to pre-covid levels. Loan disbursements are looking up. All the lender now needs is to sustain this momentum for its premium valuations to stick.
Bharti Airtel stock’s one-year returns stood at over 100% in mid-February.
But since Reliance Industries began its relentless fund raising spree, things have turned adverse for Airtel.
Airtel’s Q2 results have shown the company’s resilience but its shares still trail that of Reliance Industries. Tune in to know more.
Axis Bank kept up with its cautious approach to asset quality in the September quarter notwithstanding encouraging signs of recovery in its balance sheet. Tune in to our podcast to find out more about the third largest private sector lender's performance last quarter.
Kotak Mahindra Bank kept to its conservative approach amid a pandemic, choosing to shrink its loan book to stave off risk in the September quarter. To find the key trends during Q2, listen to our podcast here:
RBI's newly minted rate-setting committee is looking beyond short-term boosts to growth. Minutes show that the MPC discussed the sovereign yield curve and its implications on investment. The focus was not limited to fixing the demand shock but of how to revive investments.
Consumer lender Bajaj Finance's September quarter performance showed that recovery from the covid-19 pandemic could be sluggish and long drawn. Tune in to find out more.
For a stock that trades at an exorbitant multiple of 149 times trailing twelve-month earnings, Avenue Supermarts Ltd's September quarter results are a bit disappointing. Avenue, runs the DMart chain of retail stores, reported a 12% drop in revenues year-on-year. Listen in to our podcasts to find out more.
Global IT giant Accenture is double the size of India's largest IT company TCS. Yet Accenture's valuations are comparatively far modest. What explains this divergence? Indian investors are far more excited about the prospects of IT companies than in the US. The difference, it seems, lies in the composition of Indian and US markets.
Infosys Ltd has been beating Tata Consultancy Services Ltd on growth metrics for a while now. Post-covid, the extent of outperformance has only increased. Listen in to our podcast to find out more details.
Finance minister Nirmala Sitharaman’s fiscal stimulus announcements in a press conference on Monday turned out to be a bit of a damp squib. What gives? Give our podcast a listen to find out more.
The RBI announced a series of measures on Friday that would give big benefits to the bond market. In fact, every prayer of the bond market got answered on Friday, even the silent ones. So what has the RBI done?
The COVID-19 pandemic is said to have altered consumer behaviour drastically. For a consumer lender such as Bajaj Finance, the implications of this are already visible. Here's why. Tune in to our podcast by @PallaviPengonda to find out more.
Distressed Indians may soon get a relief on compound interest charged on their loans during the six-month moratorium period if the Govt.'s proposal gets legal sanction. But the Nifty bank index rose only slightly on Monday. What explains the muted sentiments?
The Embassy Office Parks real estate investment trust (REIT) has been performing well despite a post-covid world giving rise to the work from home culture. REITs such as Embassy Office Parks own, operate and finance real estate properties, mostly commercial real estate properties such as large office spaces, malls etc.
The initial public offering of Mazagon Dock Shipbuilders Ltd has kindled more retail interest than UTI Asset Management's public offer. What gives? Listen in to @livemint_m2m podcast by @PallaviPengonda to find out more.
The RBI needs to pick up the ball quickly and put in place a plan to revive Lakshmi Vilas Bank. Clearly, its prompt corrective action (PCA) hasn’t worked. So what is the best course of action? Tune in to find out the details.
The latest results of the global IT company Accenture PLC has given reasons to cheer to the investors of Indian IT companies. Outsourcing is where Indian companies have a greater presence. Analysts believe that India’s IT firms are likely to see a good run in the coming quarters. Tune in and find out.
Shares of Bharti Airtel fell about 8% on Wednesday. This is after Reliance Jio announced new tariff plans in the postpaid mobile services segment with a number of freebies. For more details on the impact on telcos, tune in here with Pallavi Pengonda.
At the offer price, valuations of the CAMS stock may appear a bit stiff at about 35 times FY20 earnings. But given the current frenzy for initial public offerings (IPOs), the issue is expected to sail through. For more details on this IPO, do tune in here.
The 10-year benchmark government bond yield is an important metric that is tracked by everyone in the markets. This 10-year bond yield has risen by 25 basis points to about 6% in the last two months. In other words, risk-free borrowing cost has gone up and has increased other borrowing costs. Tune in for more..
Apollo Hospitals Enterprises Ltd’s Q1FY21 revenue contraction is no surprise amid the pandemic. While the firm has done well on the cost front, the stock's pricey valuations seem to factor the brighter picture adequately. You can find more details by tuning in here
Stocks of IT services companies got a shot in the arm after HCL Technologies Ltd surprised the Street with its pre-quarter earnings update. HCL’s better prospects raised hopes of an improvement in the entire industry’s performance in Q2. Unsurprisingly, HCL stock jumped by over 10% on Monday and the Nifty IT index rose 4.7%, making it the biggest gainer among sectoral indices on the NSE.
Shares of Tata Motors continue to underperform the benchmark Nifty Auto index even as the company is seeing a meaningful recovery in sales. To find out more tune in with Aparna in this episode of Mark to Market on Tata Motors.
After Reliance Industries Ltd (RIL) raised a record ₹1.5 trillion by selling stakes in Jio Platforms Ltd, expectations have been running high with regards to stake sales in the group’s retail venture. However, tech-focused private equity investor, Silver Lake, has valued Reliance Retail Ventures Ltd at a much lower $57 billion. For more details on the deal and what it means for the RIL stock, tune in here.
Shares of Vodafone Idea have risen 40% while the Infratel stock has jumped 20% in value in the past five trading days. What explains? Tune in here for more details.
Till about two years ago, the Page Industries Ltd stock was a highly sought after one on the Street. The company’s shares had risen about 80 times in the ten-year period between August
Soon after the 24% decline in the GDP data for the June quarter, came the soothing manufacturing PMI reading for August. PMI bounced back to the expansion zone but the improvement looks pale in the backdrop of the stagnant GST revenues.
Reliance Retail's plan to acquire a majority stake in Future Group companies adds immense scale to its business. It also appears that Reliance Retail is clearly being prepped for a grand stake sale. Tune in to our podcast to find out more.
After prolonged pain, things may be finally looking up for the auto industry. The passenger vehicle segment is expected to show modest growth for August after a contraction in the past couple of months. Analysts are projecting double-digit growth, partly helped by a favorable base effect. Two-wheeler sales could reach the levels of the previous year. Tune in for expert inputs.
Momentum is a thing. For investors using momentum investing strategies in India, things have gotten even better this year. The Nifty Alpha 50 index has risen 79% from its March lows. Tune in to find more here.
PNB pleasantly surprised investors with a net profit of ₹300 crore for Q1FY21. But there are two signs that show PNB may have a tough time hacking down its bad loans despite forbearance. Tune in to Mint's Mark to Market podcast to find out the details.
The value style of investing has emerged as a winner, beating the growth style hands down. While value stocks are having their day in the sun, firms with sound business models provide a shield to investors during a crisis and beyond. Tune in to find out ...
Shares of the specialized tyre manufacturer recently hit a new 52 week recently, rising 37% so far in 2020. So what is benefiting Balkrishna Industries? In this episode, an insight into the industry and the trends driving the share prices of the company. Tune in and find out ...
NTPC Ltd’s shares jumped about 7.5% on Monday. True, the company's resilient performance in Q1FY21 boosted sentiments. But that's not all. NTPC has set-out a strategy rejig plan. For more details, tune in to Mint's Mark to Market podcast.
Hero MotoCorp Ltd is the best performing two-wheeler stock post-covid by far. In comparison, all other listed two-wheeler companies’ stocks have fallen from their highs earlier in the year. Why is the Hero stock doing better? Tune in to find out.
Shares of Titan Co. Ltd have lost some of its sheen post lacklustre June quarter results. But what's the outlook for the stock that already trades at pricey valuations? Tune in to find out more.
Cipla Ltd did well in the June quarter under difficult circumstances. The stock jumped 9% on Monday, as investors responded to the positive management commentary on costs' savings. But will investor interest sustain? Tune in to find out.
The Mindspace Business Parks REIT made its stock market debut on Friday. It is backed by the renowned real estate developer the K Raheja Group and Blackstone. Mindspace REIT listed at a 9.81% premium over its issue price of ₹275. What makes the REIT interesting is the timing of its launch.
How has cash-strapped SpiceJet managed to get by during this crisis? It has postponed the pain by deferring payments. Tune in to find out more about the airline's financial health and the tough times facing the aviation sector.
Auto sales are improving. But the demand pick-up is largely being seen in the mini-passenger vehicle and personal mobility segment. Going by the Street's reactions, it appears investors are not quite convinced that demand will persist. Tune in to find out more.
SBI is hopeful on loan growth and here it has reason enough to be so. The chairman has said that the bank has a project finance pipeline of Rs 1 trillion. Moreover, loan disbursements have increased in June as the economy unlocked and restrictions became more regional.
Opportunity knocks but once. And, the COVID-induced opportunity was the spike in demand for packaged food. In that sense, Nestle has missed the boat, but peer Britannia was able to capitalize on it. Tune in to find out more.
FMCG accounts for a smaller share of ITC's profits but, its contribution to the valuations of ITC shares is bigger. Tune in to find out why that's the case.
The Reserve Bank of India has released its financial stability report, which gives an indication of how vulnerable banks are amid the coronavirus pandemic. The RBI’s stress tests have revealed that the Indian banking sector would see its bad loan ratio surge to 12.5% by March 2021.
The coronavirus pandemic and the ensuing lockdown had made it challenging for India’s life insurance companies to grow. The signs were clear from the first-quarter results. Listen in to find out how life insurance companies performed in the June quarter.
So far, Indian airlines have managed to survive the COVID-19 crisis even though some of them had no cash reserves to speak of before the crisis. What steps are domestic airlines taking to cope with the pandemic? Tune in to find out more.
Yes Banks's rescue mission was led by SBI and together with other banks, they infused a total of Rs 10,000 crore capital into the lender. At that time, it was clear that the money was not enough and Yes Bank would soon need more capital to keep its head above water. Hence, the lender is back to raise money from the market through a follow-on public issue. The FPO has not been a big success but the bank will end up raising much of the money of the Rs 15,000 crore it hopes to get.
At its AGM, a major announcement by Reliance Industries (RIL) was the strategic investment by Google in Jio Platforms. Through its Google partnership, RIL is looking to tap users looking for an affordable smartphone. But how has the delivery been on targets set by RIL in the past few AGMs? Tune in to find out more.
Avenue Supermarts revenue performance in Q1FY21 improved month-on-month. But investors and analysts underestimated the impact on profits by a huge margin. To find out more, tune in.
TCS reported that its revenue fell as much as 6.3% y-o-y in constant currency terms. But, its shares don't seem to reflect a drop. Analysts said that the company’s performance was a reality check on the impact of the coronavirus pandemic. Is it?
In these uncertain times, Titan Co. Ltd’s recovery during the month of June is reassuring. Although, the stock's valuations at about 46 times estimated FY22 earnings suggest a decent recovery is on the cards. Investors would wait to see how that pans out. To find out more, tune in here
Few Indian private banks such as HDFC Bank, Indusind Bank and Federal Bank have given select business updates on Q1FY21. Tune in to find out the key takeaways from their announcements.
HDFC group companies including their parent could be sniffing out potential acquisitions soon if chairman Deepak Parekh is to be believed. HDFC Ltd does not need to raise capital as its adequacy ratios are superior, and the need for provisioning is far less than its peers.
Vodafone Idea's net worth and cash have deteriorated over the last twelve months. The company's quarterly run rate in terms of losses could well mean that its net worth would have totally wiped out by the end of June 2020. Listen in to find out more.
For ITC's investors, early indications on volumes for the June quarter are encouraging. Still, the fact that June quarter would be sorely scarred by the lockdown means cigarette volumes for FY21 are likely to be subdued. Listen in to find out more.
Ashok Leyland, the flagship company of the Hinduja group is feeling the heat of the family feud just like other group companies. The stock has lost 7.5% in the past three trading sessions. However, not all the worry is from the legal battle surrounding the $11 billion fortune of the group.
The rate at which the Ruchi Soya Industries Ltd stock is rising, it would have overtaken the market capitalization of Marico Ltd by the end of the week. Sebi should sit up and take notice because, in this instance, the extremely low float is leading to strange price movements. Tune in to find out more about this striking stock movement.
Shares of Avenue Supermarts Ltd are just 8% lower compared to its 52-week high in mid-February. Avenue runs the DMart chain of retail stores and investors had got a reality check after its March quarter results were announced last month. But since then, the stock staged a smart recovery. Tune in to find out more.
Gold loan lender Muthoot Finance reported strong March quarter results. Net profit surged 59% year-on-year and operating metrics were healthy too. Asset under management grew 22% and margins improved. The lender has benefited from the rise in gold prices during the pandemic. Gold is seen as a safety asset and even a liquid asset during crisis. The present coronavirus pandemic has made Indians opt for emergency funding through gold loans. Muthoot Finance is seeing demand for its gold loans owing to this. Also, given the price of gold has gone up, the loan-to-value ratio too has improved. Moreover, gold loans are short in tenure and therefore borrowers may not avail of moratorium. Unlike other NBFCs, Muthoot Finance hasn’t received a large number of moratorium requests. Further, the company reported improvement in asset quality as well. Analysts believe the company will benefit in the coming quarters too and growth in gold loans would be strong. Therefore analysts have raised their earnings per share estimates for the company. Muthoot Finance shares have outperformed the broad market on this optimism.
There seems to be a never-ending queue of investors lining up to buy shares of Jio Platforms Ltd. After all, the company has already raised $13.7 billion. Listen in to find out what is driving investors by the droves to Jio Platforms.
Hindalco Industries' March quarter numbers were not bad, to begin with. Going ahead, a lot depends on how aluminum prices move. While the stock has recovered smartly from the lows in March, the shares are still 34% lower than 52-week high seen in January.
The Reserve Bank of India has proposed changes that seek to strengthen the governance in India’s private sector banks. The regulator wants the tenure of whole-time directors and chief executives of a bank to have a ceiling. For an executive who is also the promoter of the bank, the tenure limit would be 10 years. For a non-promoter director and executive, the ceiling is 15 years. The regulator has also sought to strengthen the boards of banks by making them responsible of big decisions. The discussion paper comes after allegations on the CEO of a top private sector bank, ICICI Bank, and a near collapse of Yes Bank because of misdemeanors of its promoter and MD Rana Kapoor. The intention clearly is to safeguard the bank’s stability from wrong decisions of promoters and even professional executives. A long stint at a bank makes it easy for the MD and CEO to have disproportionate influence over decision making and at times over the board as well. The RBI has also sought to strengthen bank boards so that they can check against promoter influence. While it is just a discussion paper, the intention of the regulator is very clear. Experts believe that the RBI would soon bring out guidelines that will cap the tenure of private-sector bankers. Promoters such as Uday Kotak and even professional executives such as Aditya Puri of HDFC Bank will have to step down and give the reins to another banker. It is evident that banks will have to take their succession planning very seriously.
The Godrej Consumer stock declined by 4% on Wednesday, making it the biggest loser in the Nifty FMCG index. Investors evidently don't like the management change announcement. Listen in to find out more.
Shares of IndusInd Bank rose more than 7% on Monday, making it the biggest gainer in the Nifty bank index. Why is there a sudden optimism with this stock? The main reason is that the bank’s promoters, the Hinduja Group want to increase their stake from the current 14.68% to at least 26%. True, a promoter increasing stake would mean there is more skin in the game. But there’s a catch here. Listen in to find out.
India’s largest lender, State Bank of India sounded optimistic on delinquencies in a year when every other bank is predicting a surge in bad assets. The coronavirus pandemic is expected to increase unemployment and push many small businesses into bankruptcy. That pain is sure to be reflected in SBI’s asset quality. But chairman Rajnish Kumar is hopeful that this pain would be limited. As such, only 23% of the bank’s loan book is under moratorium. The repayment holiday which was allowed by the regulator is for six months to borrowers. While SBI expects to keep its bad loans under check, it has opted to make higher provisions. It has also gone a step ahead and decided not to take the benefit of forbearance on loans where repayment schedules were altered. In other words, though SBI did not mark loans as non-performing, it has provided against them like they would be a bad asset. SBI’s shares surged over 8% on Friday because of this optimistic guidance and the highest yearly net profit it reported for FY20. The bank has however said that it would be prudent to assess borrowers and their repayment strength once the moratorium is over in August. A clear picture will emerge only in September.
In the week that global rating agency Moody’s downgraded India’s rating, the Nifty 50 index has reclaimed the 10000 marks. The index is now almost 33% higher since its lows on the day the first lockdown was announced. What are the reasons for this optimism?
After a little over two months, the withdrawal of the government of India’s strictest lockdown has brought cheer to the equity markets. The Nifty 50 index increased by about 2.6% on Monday. The lockdown hit businesses hard in April and May. So what is the impact of Unlock 1? Well, much of the revival hinges heavily on how soon consumption demand picks up. Many sectors will see a slow path towards normalization in business activity.
Pharmaceutical companies have been a bright spot amid a general gloom during this COVID-19 pandemic. The Nifty Pharma has been the top-performing index in 2020. It has given a 20% return this year at a time when all other sector indices are giving negative returns. It is not because they have found a cure for covid-19 but rather because they have underperformed in the past several years. Besides, demand for drugs across the globe have risen.
The lockdown imposed to curb the spread of COVID-19 pandemic has meant that borrowers are unable to repay their loan instalments on time. Banks have given a six months moratorium but now the fear is that even after the moratorium is over, borrowers won’t be able to start paying their EMIs. To absorb such losses, banks need capital. Credit Suisse estimates that Indian banks need $20 billion capital to absorb these losses. Public sector banks are in a far worse position to raise capital. Unlike private sector banks, going to the market to raise money won’t get them much.
Bharti Telecom, a promoter of Bharti Airtel, has sold 152 million shares for about Rs8,500 crore in a block deal on Tuesday. This will help Bharti Telecom repay its entire debt worth Rs8,500 crore. The shares were sold at a time when Airtel shares were at an all-time high. Airtel shares fell over 5% on Tuesday, as the deal was done at a discount of about 5% to its previous closing price. Even so, the share sale should not unnerve investors. Here's why.
The RBI has reduced its policy rate by 40 basis points. It has extended the benefits of loan moratorium and working capital interest deferral to 31 August. In short, if you are a businessman, you still have more time to pay back your loan.
Bharti Airtel and Jio’s March quarter results were strikingly different. There was hardly any sign of the December tariff hikes in Jio’s results. On the other hand, Bharti Airtel’s average revenue per user or ARPU expanded by 14% last quarter compared to Jio’s Arpu growth of a mere 1.7%. Airtel’s India wireless business grew by 16% sequentially, much higher than Jio’s 6% growth. This implies massive market share gains for Airtel. Overall, Airtel saw a 27% sequential jump in operating earnings at it's India wireless business.
For airline companies, there is no help coming from the government. Smaller airlines such as SpiceJet are under far greater pressure with almost no cash to speak of before the lockdown began. On the other hand, IndiGo’s large cash pile is helpful in these times and puts it in the best place in the Indian aviation sector to deal with this crisis. As such, near-term revenue and capital outlook remain grim for the sector.
Maruti posted a weak March quarter performance, hit by COVID-19 pandemic and the lockdown. Sales and profits fell. Recovery is likely to take a few quarters, say analysts. Still, the stock trades at rich valuations. Tune in to know more.
Initially, the Indian stock markets were excited about the Rs20 trillion economic package. In fact, the pre-opening rates had suggested a 5% jump in the markets. However, markets rose only 2% on Wednesday, with the initial excitement wearing off. In absolute terms, BSE’s total market cap rose Rs. 2.3 trillion, as compared to the Rs5.5 trillion rise pre-opening rates had suggested. So what caused the excitement to ebb? Find out here.
ICICI Bank shares have gained since the lockdown to prevent the spread of covid-19 pandemic was announced on 24 March. Much of this optimism is now being put to test with its March quarter not pleasing the market. For one, the net profit missed market estimates considerably. Secondly, the problem of a rise in fresh bad loans continued.
In December 2018, Hindustan Unilever (HUL) announced the acquisition of GSK Consumer. As part of the deal, in May 2020, GSK Consumer’s parent company disposed off HUL shares and this was done at a higher realisation compared to what it had anticipated it would receive in end 2018. The deal also helped HUL to increase the share of foods and beverages in its product portfolio to about 28% of revenues, from 18% earlier.
UPL Ltd's stock gained 28% in April, almost double the rise in the benchmark Nifty index. The stock recovered after UPL’s management reassured investors on business operations and debt reduction.
Reliance Industries Ltd has announced another stake sale in its digital services subsidiary, Jio Platforms Ltd. Private equity firm Silver Lake will invest ₹5,655 crore in Jio Platforms for an effective 1.1% stake at an equity value of ₹4.9 trillion, a 12.5% premium to the Facebook deal. So what do this development mean for the Reliance stock?
Shares of Reliance Industries have appreciated by more than 60% from its lows in end March. A key reason for the optimism is Reliance’s deal with Facebook, which was announced last week. Facebook’s $5.7 billion investment in Reliance’s digital subsidiary, Jio Platforms Ltd is expected to offer some relief on Reliance’s debt front. Still, the company also said that its board will consider a rights issue. So why is Reliance raising the funds?
Shares of Reliance Industries Ltd are now below the level seen before its last Annual General Meeting (AGM) on 12 August 2019. No doubt, valuations have turned attractive with the steep fall in the stock price but should investors bet on the company?
The global coronavirus epidemic has sent shivers down the global markets while Indian markets were no exception. The outbreak led to a sharp correction in the global and Indian markets. From its peaks, the Indian markets have corrected about 10% on heavy selling by foreign investors. Earnings growth is expected to pick up in the second half of FY21 due to a lower base and gradual pick up in the economy.
According to the World Health Organization, there are as many as 79,331 confirmed cases of Novel Coronavirus globally and on February 24 alone, 715 new cases were reported. Listen to this episode as Mint's Disha Sanghvi answers some pertinent questions that you might have about your travel insurance as Coronavirus casts a shadow on those traveling to China and neighboring countries.
The consumption demand slowdown in the country is biting hard and companies are finding it increasingly difficult to get the cost-conscious Indian consumer to spend more. But it is turning out to be a rough road. Take December quarter results of FMCG companies for instance. According to Kotak Institutional Equities, the aggregate revenue growth for 11 consumer staples’ companies has dropped to 3.4% last quarter, the lowest in the last ten quarters.
Dewan Housing Finance Ltd, a large housing finance company is undergoing insolvency proceedings. Its resolution is key as DHFL owes not just banks but also retail bondholders and depositors. A painless resolution would ensure retail lenders keep their faith in the system, and banks are able to limit a hit on their books through another bad loan. It would also show that IBC is a law that works for financial companies' resolution too.
The concerns surrounding coronavirus outbreak and global economic growth have put pressure on the Indian rupee. But the biggest factor in rupee weakness is the RBI's intervention which remains strong. The exchange rate has dropped 3.2% since July despite good dollar inflows as the RBI incessantly bought dollars. This grip is unlkely to loosen in the coming months, according to currency dealers. .
The lender Q3 results beat the net profit analysts' net profits estimates despite a slowdown in loan growth.
Air India's disinvestment process has been kick-started once again with lower debt. Government has sweetened the deal for Air India's disinvestment process this time. The condition of the government retaining a 24% stake in the airline has been foregone.
Shares of the country’s largest infrastructure conglomerate, Larsen and Toubro Ltd (L&T) increased 3.5% on Thursday morning even though the company’s December quarter results, which came after market hours on Wednesday disappointed on some counts. The firm’s last quarter performance mirrors the challenges in the Indian economy primarily of consumption slowdown, weak capex cycle and the prolonged liquidity crunch. Revenue from L&T’s core infrastructure segment declined by 5% year-on-year despite its huge order book worth Rs3.1 trillion. What explains the slow pace of execution?
Results of two private sector banks HDFC Bank and Kotak Mahindra Bank were not too well received by the markets. Both the banks reported slower loan growth and asset quality slippages in Q3. Considering that their asset quality worries are persisting, valuations could get affected. Listen to the details in Mark to market.
Ever since Reliance Jio launched services in September 2016, there has been a huge spike in data usage and voice traffic and a sharp decline in consumer spends on telecom. Data volumes have risen as much as 4160%, on the back of increased usage per customer as well as a rise in the number of data subscribers. Voice traffic too has doubled. All of this has been aided by a 41% drop in average tariffs paid by customers. In turn, telcos have reported a sharp drop in revenues and profits.
The CSO pegs FY20's economic growth rate at 5% which is one of the lowest in a long time. Analysts expect that the GDP growth rate could be revised downwards to about 4.5% later. Among the reasons to doubt the growth rate is the slow credit growth and muted festive cheer.
Bajaj Finance investors now seem to be taking note of the consumption slowdown and the adverse impact that it can have on the lender’s financial performance. Bajaj Finance has said its assets under management increased by 35% for the December quarter, the slowest growth in last two years. What's worse, is that growth in new loans has dropped sharply to 13% from 23% in the September quarter. Bajaj Finance’s management had warned about the slowdown in AUM growth in the September quarter. However, the slowdown seems to be deeper than what the lender had anticipated.
Mid- and small-cap space continues to languish in 2019 as earnings growth has been low.
The domestic Indian pharma market has seen a pickup in sales growth in November over last year, although stock market cheer is muted.
In the latest episode of Mark to Market, we take a look at why Reliance Jio is the biggest gainer post the tariff hikes. Jio revised tariffs are at a meaning discounts to the tariffs announced by Vodafone Idea and Bharti Airtel. Post the tariff hikes, Vodafone Idea and Airtel shares have given up more than half their gains for the week. Some analysts are also beginning to worry about the possibility of downtrading among some customers. Vodafone Idea remains vulnerable given its relatively weaker network.
India’s GDP growth has fallen to 6-year low in September quarter and all eyes are on Reserve Bank of India’s monetary policy for a rate cut. Considering food inflation is on upswing, markets fear this could be the last of the cuts from the RBI. However, a big challenge for RBI is to unclog the credit flow and resolve the NBFC crisis. Markets will watch for commentary on credit flow, NBFC crisis and forecasts of GDP and inflation on Thursday when the committee puts out its vote on policy rates and stance.
The stock markets are at all-time highs when the economy is at a multi-year low. What is happening?
SpiceJet has denied a news report that it plans to raise Rs750 crore through a qualified institutional place (QIP). Whether or not the company is looking to raise money, the fact is that the airline has extremely low amounts of cash on its books, and needs to bolster its balance sheet with a fund-raise sooner than later. As on 30 September, the airline had cash and cash equivalents worth Rs93 crore and a negative networth of about Rs850 crore.
Shares of Sterling and Wilson Solar, a solar engineering, procurement, and construction company, touched the lower circuit again on Tuesday on the National Stock Exchange. With this, the stock has fallen over 60% from its issue price of Rs780 apiece during the initial public offering (IPO). What gives? The promoters have sought an extension for repayment of loans taken from Sterling and Wilson. Promoters had originally promised to clear the dues within 90 days of listing and investors are seemingly disappointed that the promoters have not kept their word.
Vodafone Idea shares fell below Rs 3 on Thursday, on news that the govt has demanded its dues in the AGR case. The dues could be as high as Rs 40,000 crore, while the company has a cash balance of about Rs 20,000 crore. Reports suggest both promoter groups of the company are unwilling to infuse fresh capital. The government will be a major loser if the company goes into liquidation, as the company owes it over Rs 90,000 crore.
The FMCG sector's second-quarter results were largely in-line with estimates barring a few companies.
The Midcap index was up last month outpacing the frontline Nifty 50. Some limited churn also seems to be happening from large-caps to midcaps. While, midcaps earnings tend to expand when GDP growth is strong, the weak economic growth will weigh on the midcap stocks. So what’s next for midcaps? Listen to this podcast to find out.
Reliance Industries has said it will infuse Rs1.08 trillion into its telecom subsidiary, which the latter will use to reduce debt. As a result, Reliance Jio's debt to equity ratio will fall from about 2.5 times to 0.3 times. In contrast, other telcos have been burdened further after a Supreme Court ruling, which has asked them to pay license fee dues and penalties. Traders fear Vodafone Idea may end up in bankruptcy, since the penalty amount is higher than the cash on its books. While Jio's debt will come down, it remains a capital heavy business; and its profit needs to rise multi-fold for the company to earn a decent return on capital.