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Meta, Google investors look past earnings beats to risks ahead

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The digital ad market is finally recovering from a painful slump. You wouldn’t know it looking at the shares of Meta Platforms, Snap and Alphabet. All three reported generally upbeat results this week, with ad spending growing compared with a year ago. That should’ve been a welcome sign for investors who’ve seen the industry struggle through more than two years in turmoil. The companies have had to cope with a post-pandemic pullback in online marketing spending, an ever-changing list of economic uncertainties and a change to Apple’s privacy policies that made smartphone ads less effective.

But warnings from the companies’ executives about broader economic conditions and the pursuit of new avenues of growth have sent stocks sliding in the wake of results. Take Meta, the owner of Facebook, Instagram and WhatsApp. Shares initially climbed more than 5% following its quarterly report and guidance on Wednesday. Then chief financial officer Susan Li said in a call with analysts that the future looks unpredictable. “We are very subject to volatility in the macro landscape,” Li said. “The revenue outlook is uncertain” for 2024.

Financially, all three are looking stronger. Meta beat revenue estimates and indicated that growth will continue for the rest of the year. Snap returned to sales increases after two periods of declines. Alphabet topped projections with both its search ad sales and overall revenue, though its cloud business struggled.

It hasn’t been an easy transition. The companies have deeply cut costs, retooled their ad businesses and limited new spending to what they see as more solid bets, such as artificial intelligence and augmented reality.

Snap, the maker of the Snapchat app, has spent much of the year revamping its ad business, which finally returned to growth last quarter. But when it reported results Tuesday, the company said it had limited visibility into revenue for the rest of the year.

The Israel-Hamas war was cited as one source of uncertainty. A “large number” of advertising campaigns were paused in the third quarter after the start of the conflict, Snap said, and this delay could continue into the fourth quarter. As a result, the company said it would be “imprudent” to provide a formal outlook for the current quarter.

Snap fell 5.4% on Wednesday. “Given the near-term issues, which could take a while to play out, we remain on the sidelines,” said Susquehanna Financial Group analyst Shyam Patil, who has a neutral rating on the stock.

Angelo Zino, an analyst at CFRA Research, shares those anxieties. “I would say we are now in an environment where investors are becoming more concerned about macro/geopolitical/regulatory uncertainties,” he said.

For Alphabet, where the ad business is tied to an already mature and dominant search business, investors are looking for other sources of growth. On Tuesday, the cloud computing unit’s disappointments overshadowed a stronger ad business. Though overall sales came in about $1 billion higher than analysts’ estimates, the shares tumbled 9.5% on Wednesday, marking the biggest single-day decline since 2020.

Guidance from digital ad sellers is closely scrutinized because their revenue is dependent on businesses feeling confident enough to spend on marketing. Inflation, the wars in Ukraine and Gaza, and rising interest rates have all been headwinds.

“They are heavily tied to the health of the economy,” Zino said.

Amazon.com, which has been expanding its own ad business, should give investors a clearer picture of how holiday demand is shaping up when it releases results Thursday.

Meta, Snap and Alphabet all use revenue from digital ads to fund investments in new technology. A pullback in that market could make it harder to spend heavily on AI innovation and other big bets. Even though investors have rewarded stocks that show strength in AI, there’s less support when a company’s main revenue stream is at risk.

At Meta, Li acknowledged that steady profits are vital if it wants to maintain its ambitions. “We recognize that we have to earn the ability to invest in all of those things by delivering consolidated operating income growth over time,” she said.

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High stock market volatility ahead of Budget 2021; Sanjiv Bhasin has these sectors in focus | IIFL INTERVIEW

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Indian share markets will witness extreme volatility in this week just ahead of Union Budget 2021, with the January F&O contracts expiring on January 28, 2021, says Sanjiv Bhasin, Director, IIFL Securities Ltd. Besides Budget, Sanjiv Bhasin says that factors such as global liquidity, rise in bonds or US Dollar, and stimulus announcement from US President Joe Biden, are among few factors which may impact Indian share markets in the coming days. In an interview with Surbhi Jain of Financial Express Online, Sanjiv Bhasin said there are a lot of opportunities in a few sectors for retail investors. For the first time investors, he advises to keep a systematic investment plan (SIP) as market valuations are quite high. The COVID-19 pandemic offered once in a lifetime opportunity to the investors. Here are edited excerpts:

With Sensex, Nifty making new highs, where do you see the indices going in the run-up to the Union Budget 2021?

What tax changes markets expect from the Budget this year?

Well, nothing much, just some tinkering with fiscal numbers and some extra on sin tax etc. The market would look for some relief being given to insurance as Covid reinsurance could be much more widespread than ever and the government can make it attractive to be insured in the future. The market would be hurt if any cess on Covid is levied as consumers do not need any more taxes.

What would you advise first-time stock market investors? Which sectors look attractive?

Kindly do a SIP as valuations are expensive and you may never be able to time the markets. This pandemic was once in a lifetime opportunity which came in March and those who seized it would be laughing their way to the bank. Either way, if you were invested or doing a SIP through mutual funds or directly then you would have by default participated in the fall.

Apart from Budget, what are the key risks and triggers in markets?

Global liquidity is calling the shots and if any rise in bonds or US Dollar comes suddenly then the repatriation of flows can cause a sudden correction, secondly, markets are looking forward to a big stimulus from the new President-elect which if falls short could again see a correction.

With new COVID strain cases, do you see that impacting the markets in any way?

Global liquidity and money printing at the lowest interest rates are fuelling the markets which are looking beyond the new strain as the vaccine makes up for the damage over the next few months. Also, India stands out as we have avoided the strain with herd immunity enabling the resumption of normal activity much faster than the rest of the world.

Has the COVID vaccine rollout changed the sentiments? Is Indian economy in recovery mode?

It has improved the sentiment and the psychological aspect as the individual is now more receptive to acceptance of the virus and learned to handle it better with keeping necessary precautions. India has been one of the better performers as we have seen herd immunity with correct precautions act in less affliction to the new strain which has been avoided.

Where do you see opportunities for retail investors in markets right now?

Materials as in steel and cement, pharma and IT along with consumption as auto numbers are most positive.

Global Markets: Dust settles on stocks surge, OPEC+ talks supply cuts

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World stocks clung to two-week highs on Wednesday, although another aggressive rate increase from New Zealand tempered the idea that central banks may be close to slowing down the pace of rapid monetary tightening.

Oil prices inched higher before a meeting of OPEC+ producers to discuss a big cut in crude output, after gaining more than 3% in the previous session.

The S&P 500 index posted its biggest single-day rally in two years on Tuesday after softer U.S. economic data and a smaller-than-expected interest rate hike from Australia stirred hope for less aggressive tightening by the Federal Reserve.

Yields on 10-year U.S. Treasuries, which move inversely to prices, are down 12 basis points this week, as hopes for a slowdown in rapid Fed tightening took hold.

But a more cautious tone surfaced on Wednesday, with a sharp rate rise in New Zealand dampening hopes for a pause or slowdown in aggressive hikes from other major central banks.

“There is a growing sense that the market may have got ahead of itself in thinking that inflation has peaked and central banks will start to dial back on their hawkish stances,” said Stuart Cole, Head Macro Economist at Equiti Capital.

“Until we see material falls in CPI I think central banks will remain in hawkish mode and willing to accept a moderation in growth – ie mild recession – if that is the price to pay to get the inflation genie back in the bottle,” he added.

Also Read: Global Markets: Stocks, bonds rally as investors spy possible central bank ‘pivot’; pound

European shares fell, sending the region’s STOXX 600 index down 0.9% by 1114 GMT after a 5% rally in the previous three sessions. S&P 500 futures fell by 0.8%.

MSCI’s broadest index of Asia-Pacific shares outside Japan was up 2.4%, catching up with the strong gains seen on Wall Street during the previous session.

That left MSCI’s World Stock Index up around 0.1%, having touched its highest level in around two weeks earlier in the session.

WAITING FOR OPEC+Investors closely awaited a crucial supply decision from OPEC+ due later on Wednesday, which could have global implications for already high energy prices and inflation.

After making strong gains the previous day, U.S. crude rose 0.6% to $87.08 a barrel and Brent crude gained 0.7% firmer at $92.43 per barrel.

OPEC+, which includes Russia and Saudi Arabia, could cut between 1 and 2 million barrels a day, according to a Reuters report.

U.S. Treasury yields headed back higher and the dollar steadied, having suffered its heaviest setback in more than two years on Tuesday. The yield on benchmark 10-year Treasuries , were 6.6 basis points higher at 3.6828%.

The dollar was 0.2% firmer at 144.4 yen, while the euro was around 0.7% softer at $0.9920, having gained 1.7% on Tuesday in its biggest one-day percentage gain since March.

“Despite European assets rebounding quite sharply, it’s hard to point to any material change in the eurozone’s outlook that would warrant a significant return of market appetite for the euro just yet,” said ING currency strategist Francesco Pesole.

Elsewhere, spot gold traded at around $1,709 per ounce, down about 1%.

FII, DII data: FPIs sold shares worth Rs 7702 Cr, DIIs added shares worth Rs 6558 Cr on October 26, Thursday

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Foreign institutional investors (FII) offloaded shares worth net Rs 7,702.53 crore, while domestic institutional investors (DII) added shares worth net Rs 6,558.45 crore on October 26, 2023, according to the provisional data available on the NSE.

For the month till October 26, 2023, FIIs sold shares worth net Rs 25,098.60 crore while DIIs bought shares worth net Rs 23,123.45 crore. In the month of September, FIIs offloaded shares worth net Rs 26,692.16 crore while DIIs added equities worth a net Rs 20,312.65 crore.

On Thursday, the NSE Nifty 50 tanked 264.90 points or 1.39% to settle at 18,857.25, while the BSE Sensex shed as much as 900.91 points or 1.41% to 63,148.15.

Foreign institutional investors (FII) or Foreign portfolio investors (FPI) are those who invest in the financial assets of a country while not being part of it. On the other hand, domestic institutional investors (DII), as the name suggests, invest in the country they’re living in. Political and economic trends impact the investment decisions of both FIIs and DIIs. Additionally, both types of investors  –  foreign institutional investors (FIIs) and domestic institutional investors (DIIs) – can impact the economy’s net investment flows.

Sterlite Power postpones IPO plans on current market volatility

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Sterlite Power on Friday announced deferring its Rs 1,250 crore-IPO in view of current volatility in the stock market.

In August 2021, the company had filed the Draft Red Herring Prospectus (DRHP) with markets regulator Sebi. The Initial Public Offer (IPO) was to be worth Rs 1,250 crore.

Also Read: Kanpur-based Lohia Corp files IPO papers with Sebi 

Pratik Agarwal, Managing Director of Sterlite Power, said that given the volatility in the current markets and the limited window available under the currently filed DRHP, it has been decided to withdraw the DRHP.

“However, it remains observant of the market and will consider re-filing the DRHP in the future. In the meantime, we are in conversation with large private capital institutions to grow the business,” he said.

Sterlite Power has a portfolio of 30 projects covering approximately 14,602 circuit kilometres of transmission lines. It has projects in India and Brazil.

It also has a portfolio of high-performance power conductors, Extra High Voltage (EHV) cables and Optical Ground Wires (OPGW), among others.

The company was the sponsor of IndiGrid, the country’s first power sector InvIT.

Share Market HIGHLIGHTS: Sensex ends 337 pts down, Nifty at 17630 on weekly F&O expiry day; HDFC Bank falls

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Share Market News Today | Sensex, Nifty, Share Prices HIGHLIGHTS: Domestic stock market benchmarks BSE Sensex and NSE Nifty 50 ended half a per cent down on Thursday, a day of weekly F&O expiry. BSE Sensex fell 337 points or 0.6 per cent to 59,120, while NSE Nifty 50 was down 89 points or 0.5 per cent to settle at 17630. Stocks of Titan Company, Hindustan Unilever Ltd (HUL), Asian Paints, Maruti Suzuki India, ITC, Dr Reddy’s, Bharti Airtel, M&M, TCS, and NTPC were among top BSE Sensex gainers. On the flip side, Power Grid Corporation of India, HDFC Bank, Axis Bank, Housing Development Finance Corporation (HDFC), Reliance were among top index draggers. Bank Nifty index tumbled 1.4 per cent to settle at 40,631.

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Share Market Today | Sensex, Nifty, BSE, NSE, Share Prices, Stock Market News Updates

15:35 (IST) 22 Sep 2022 Sensex, Nifty end weekly F&O expiry day in red; fall 0.5%

BSE Sensex fell 337 points or 0.6 per cent to 59,120, while NSE Nifty 50 was down 89 points or 0.5 per cent to settle at 17630

15:12 (IST) 22 Sep 2022 US Federal Reserve may hike interest rate by 75bps yet again in November; FOMC unlikely to cut rates in 2023

The US Fed on Wednesday raised rates by 75bps, 3rd consecutive jumbo rate hike (highest since CY08), to a new target range. Fed Chair Jerome Powell in his statement signalled more rate hikes going forward to tame red hot inflation in the US. The median projections for federal funds rate is now expected at 4.4% in 2022. “We have got to get inflation behind us. I wish there were a painless way to do that. There isn’t,” Powell said after officials lifted the target for the benchmark federal funds rate to a range of 3% to 3.25%. According to analysts, the hawkish Fed commentary has pushed market expectations of a reversal in policy tightening through rate cuts to 2024 from late 2023 earlier. Read full story

14:44 (IST) 22 Sep 2022 Remain constructive on Indian equities over the medium-term

While rising in interest rates represent a headwind for Indian equities, our buoyant domestic demand scenario presents a sliver of hope for global investors looking to diversify globally. We remain constructive on Indian equities over the medium-term and continue to orient our portfolios around domestic cyclical which continue to look attractive to us from a medium-term perspective. Trideep Bhattacharya, CIO Equities, Edelweiss MF

13:52 (IST) 22 Sep 2022 Motilal Oswal AMC launches Gold and Silver ETFs FoFs

Motilal Oswal Asset Management Company (MOAMC) has announced the launch of Motilal Oswal Gold and Silver ETFs FoFs, with an objective to generate returns by investing in units of Gold ETF and Silver ETF. The NFO will open on 26th September 2022 and closes on 7th October 2022.

13:46 (IST) 22 Sep 2022 Infosys share price hits 52-week low tracking fall in US IT stocks, tanks 28% YTD; should you buy, sell, hold?

Infosys share price fell more than 1 per cent to Rs 1,360.05 apiece on BSE, a new 52-week low in Thursday’s intra-day trade, tracking the fall in US IT stocks overnight. On the back of growth concerns, the stock has fallen more than 3 per cent in the last five days, 13 per cent in one month, and 27 per cent in the last six months. The IT bellwether has tanked 28 per cent so far this year, and 20 per cent in one year. In comparison, the S&P BSE Sensex was down less than one per cent in the last month. Analysts say that despite being a very low debt, and consistently well performing sector, IT stocks including Infosys recently have seen a sharp dip due to a worsening US & European economy including sharp sell offs in tech giants across the globe. Read full story

13:17 (IST) 22 Sep 2022 India’s GDP to grow at 7.5% in FY23 despite developed-economy recession; inflation to stay above 6% till Nov

India’s export outlook looks weak going forward amid global headwinds. Since exports were the key peg for strong real GDP growth in the first half of the current financial year, when domestic demand was in the early stages of its climb back to pre-covid levels, analysts at ICICI Securities have lowered their real GDP growth forecast for FY23 to 7.5%. As oil prices moderate, the fiscal and current account deficits are expected to moderate sharply in H2FY23. Read full story

12:11 (IST) 22 Sep 2022 Indian equity markets can witness increased volatility in near-term

With the US Fed increasing rates by 75 bps and hinting at more rate hikes in the future, we believe the Dollar index can see a significant increase, implying most major market currencies, including INR should be under pressure. If we start seeing INR depreciating, then from a USD returns perspective for FPIs, India becomes unattractive. We could also witness a reversal of FPI flows in the near to medium term, which will increase market volatility. Higher interest rates in the US will force major central banks, including India, to increase interest rates to stem the pressure on their domestic currencies and with increased interest rates and cost of capital, market multiples can contract. We believe in the near term, Indian equity markets can witness increased volatility. Naveen Kulkarni, Chief Investment Officer, Axis Securities PMS

11:34 (IST) 22 Sep 2022 Buy these two stocks to pocket gains, charts show upside; Nifty short-term trend looks choppy

The short-term trend of Nifty continues to be choppy. The market is stuck within a broader high low range of 18100-17500 levels and the movement within the said range is expected for the next few sessions. Any decisive move beyond this range is likely to bring acceleration in the momentum on either side. Read full story

11:08 (IST) 22 Sep 2022 A move past 80.10 mark has opened doorway for depreciation in rupee towards 81

“The Indian rupee has plunged to a fresh record low of 80.61 mark amid signs of escalating Russia-Ukraine tensions and a hefty rate hike of 75 bps by the US Fed for the third time in a row, which has led to a vertical rally in the greenback towards two-decade highs of 111.78 level. The US central bank struck a more hawkish tone than expected at its latest meeting indicating that it will aggressively front load rate hikes to rein in runaway inflation, even at the risk of hurting growth. Slowing portfolio flows in the domestic markets have further accentuated the decline witnessed in the rupee-dollar exchange rate, even as weakening crude oil prices are still capping losses in the domestic currency. Further ahead, a move past the 80.10 mark has opened the doorway for depreciation in the Indian rupee towards the 81 mark in the coming days.”

~ Sugandha Sachdeva, Vice President – Commodity and Currency Research, Religare Broking

11:04 (IST) 22 Sep 2022 Gold Price Today, 22 Sep 2022: Gold falls on strong dollar after US Fed’s rate hike, MCX support at 48800

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate and silver rate were trading weak in India on Thursday, on the back of strength in US Dollar. On Multi Commodity Exchange, gold October futures were trading flat to negative at Rs 49,439 per 10 gram, as against the previous close of Rs 49,443. Silver December futures were ruling Rs 96 or 0.2 per cent down at Rs 57,202 per kg on MCX. Read full story

10:39 (IST) 22 Sep 2022 Rupee may fall to 81.5 levels against US dollar

It is apparent from the recent action and commentary of the US Federal Reserve that we are still far away from the end of the rate hike cycle. We reckon that the rupee is expected to remain under pressure despite the improvement in domestic economic prospects. Additionally, for the RBI it will be difficult to intervene and take strict actions to curb the rupee depreciation as the liquidity in the banking system has swung into deficit mode after remaining in a surplus mode for almost 40 months and at the current juncture, the RBI doesn’t want to derail the economic recovery. Technically, the USDINR pair witnessed a breakout of ascending triangle formation that may lead to further weakness in the rupee towards the 81.5-82 zone however 81 will be an intermediate and sacrosanct support level for the rupee. Santosh Meena, Head of Research, Swastika Investmart

09:44 (IST) 22 Sep 2022 Rupee hits fresh all-time low

Rupee hit lifetime low level after the Fed decision dollar index traded on above 111 levels. Due to this rupee and other Asian currencies were trading lower. Today as expected, Rupee traded at life time low of 80.40 levels. Eur against dollar was also trading at 20-yr low at 0.9822 and GBP against dollar was also trading at 29-yr low at 1.1234 levels. Due to the hawkish statement of FED, we expect other major currencies against dollar may depreciate. Rupee may also further depreciate and test 81-82 levels very soon. Anuj Gupta, VP, IIFL Securities

09:36 (IST) 22 Sep 2022 Bank Nifty down 0.3%

Bank Nifty index was down 0.3 per cent to trade at 41,088.85

09:33 (IST) 22 Sep 2022 HDFC, Wipro, Dr Reddy’s were Sensex losers

Housing Development Finance Corporation (HDFC), Wipro, Tech Mahindra, Dr Reddy’s, HCL Tech, Sun Pharma were Sensex losers

09:28 (IST) 22 Sep 2022 ITC, IndusInd Bank top Sensex gainers

ITC, Bajaj Finance, IndusInd Bank, NTPC, Kotak Mahindra Bank, Axis Bank, Nestle India, and Tata Steel were top Sensex gainers

09:25 (IST) 22 Sep 2022 Sensex, Nifty down nearly 0.5%

BSE Sensex was down 235 points or 0.4 per cent at 59,221, while NSE Nifty was down 54 points or 0.3 per cent to 17,664

08:44 (IST) 22 Sep 2022 Wipro fires 300 employees for moonlighting

Wipro Chairman Rishad Premji on Wednesday said the company had found 300 of its employees worked with one of its competitors at the same time, and added that action was taken in such cases by terminating their services. Premji asserted that he stands by his recent comments on moonlighting being a complete violation of integrity “in its deepest form”. In the previous trading session, the share closed down 1.02% or Rs 4.15 at Rs 400.80 on the BSE.

08:43 (IST) 22 Sep 2022 IDBI Bank sells its entire stake in Ageas Federal Life Insurance

IDBI Bank sold its entire stake in Ageas Federal Life Insurance Company to partner Ageas Insurance International NV. In May 2022, the bank had entered into a Share Purchase Agreement to sell its entire stake of 20 crore equity shares in Ageas Federal Life Insurance Company to Ageas Insurance International NV. With this sale, IDBI Bank’s shareholding in Ageas Federal Life Insurance Company now stands at NIL.

In the previous trading session, the share closed down 2.43% or Rs 1.10 at Rs 44.20 on the BSE.

08:06 (IST) 22 Sep 2022 Bulls and bears likely to tussle for dominance amid volatility; 5 things to know before market opening bell

Indian benchmark indices BSE Sensex, NSE Nifty 50 are likely to open in red, tracking weak global. Early trends in SGX Nifty hinted at a gap-down opening for the broader domestic frontline index with a loss of 121 points. Markets will react to the Fed’s interest rate hike decision. An aggressive commentary is expected to lead to higher volatility and pressure on the market, according to analysts. “If Nifty trades below 17700, it could trigger short-term correction. Below the same, the index could slip till 17550-17500. The current market texture is non directional, hence level-based trading would be the ideal strategy for short-term traders,” said Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities.

Read full story

07:36 (IST) 22 Sep 2022 Asian markets in red

Asia markets traded lower on Thursday after the U.S. Federal Reserve raised interest rates and signaled further hikes ahead. U.S. stocks were volatile and closed sharply lower following the announcement. In Hong Kong, the Hang Seng index fell 2.19% in early trade, with the Hang Seng Tech index dropping 3.08%. The Shanghai Composite in mainland China shed 0.37% and the Shenzhen Component declined 0.546%. The Nikkei 225 in Japan slipped 1.2%, and the Topix index fell 0.84%.

07:35 (IST) 22 Sep 2022 Wall Street stocks slump

Wall Street’s main indexes see-sawed before slumping in the final 30 minutes of trading to end Wednesday lower, as investors digested another supersized Federal Reserve hike and its commitment to keep up increases into 2023 to fight inflation. The Dow Jones Industrial Average fell 522.45 points, or 1.7%, to 30,183.78, the S&P 500 lost 66 points, or 1.71%, to 3,789.93 and the Nasdaq Composite dropped 204.86 points, or 1.79%, to 11,220.19.

07:34 (IST) 22 Sep 2022 SGX Nifty hints at a negative start for Indian equities

Nifty futures traded 133 points, or 0.75% lower at 17,583 on the Singapore Exchange, signaling that Dalal Street was headed for a negative start.

Reliance, Suzlon Energy, Bharti Airtel, Zydus Lifesciences, Poonawalla Fincorp, APL Apollo stocks in focus

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Indian equity markets are expected to start the week and month on a negative note. SGX Nifty was in red ahead of the session, hinting at a gap-down start for NSE Nifty 50 and BSE Sensex. “The week is a holiday-shortened one and marks the beginning of the new month also, so important data like auto sales, S&P Manufacturing PMI and S&P Services PMI will be in focus. Besides, the performance of global markets, FIIs trend, and movement in currency and crude will also remain on participants’ radar,” said Ajit Mishra, VP – Research, Religare Broking.

Also Read: Uneven rain may lead to fall in Kharif crop output, high food prices

Poonawalla Fincorp: Care Ratings has upgraded the long-term rating of Poonawalla Fincorp and its subsidiary, Poonawalla Housing Finance (PHFL) to ‘AAA’ with a stable outlook. This rating is applicable for bank loan facilities, non-convertible debentures, market-linked debentures and subordinated debt.

Bharti Airtel, Reliance: 5G networks in India were officially inaugurated last week. Bharti Airtel and Jio are set to launch their 5G plans in India soon. Jio will bring in its 5G plans by Diwali, around October 22 – 26. The service will initially be available in Delhi, Mumbai, Kolkata, and Chennai. Airtel rolled out 5G services in eight Indian cities starting Saturday. While Airtel hasn’t clarified which eight cities these are, metro cities like Mumbai and Delhi are expected to be included. Sunil Bharti-led Airtel has also announced that it will bring 5G connectivity all across India by March 2024.

Suzlon Energy: Shares of Suzlon Energy will trade ex-rights for its rights issue of 5 shares for every 21 shares held by the shareholder. Last month, the company had announced earlier that its board has decided to issue equity shares of the company via a rights issue to the eligible equity shareholders of the company. The total number of equity shares and rights issue size is 240 crore equity shares of Rs 2 each at an issue price of Rs 5 per equity share, aggregating to Rs 1,200 crore.

Dilip Buildcon: The company received a provisional completion certificate for rehabilitation and up-gradation from two to four lane for Varanasi – Dagamagpur section of the National Highway-7 on EPC mode in Uttar Pradesh. With this, the authority declared the project fit for entry into commercial operation on September 29.

Also Read: Stock market holidays October 2022: BSE, NSE to remain shut on these days this month, check here

APL Apollo Tubes: The steel tube maker registered the highest quarterly sales volume of 6.02 lakh tonnes in Q2FY23, up 41 percent YoY and growing 42 percent sequentially. The sales volume for the first half of FY23 was 10.25 lakh tonnes compared to 8 lakh tonnes in the same period last year. In the second half of FY23, the sales volume would get a further boost from the commissioning and ramp-up of the new Raipur plant, the company said.

ACC Q2 profit beats estimates

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ACC, an Adani Group cement company, has posted a consolidated net profit of Rs 388 crore for the second quarter ended September, buoyant on an improved demand for its premium products and operational efficiencies. In comparison, the company had posted a net loss of Rs 87 crore a year ago.

The company’s revenue rose 11.2% to Rs 4,435 crore from Rs 3,987 crore in Q2FY23. The cement manufacturer had posted a net profit of Rs 466 crore in the sequential quarter ended June, ACC said in a statement.

“This growth is attributed to the improved demand for our premium cement products up by 1.5 percentage points on a year-on-year basis at 32% of trade sales and net dealer addition of 534 during the quarter across all markets. In operational efficiencies, electrical energy consumption improved by 6.4 kilowatt-hour per metric tonne (kWh/t) at 73.9 kWh/t with clinker factor improvement from 57.2% to 56.6% coupled,” CEO Ajay Kapur said.

“Our commitment to enhancing logistics efficiencies has resulted in a road direct despatch increase from 52% to 58% and an increase in rail coefficient by 5 percentage points to 34%,” he added.

ACC’s clinker and cement sales volume rose by 17.3% y-o-y to 8.1 million tonne, while kiln fuel cost fell by 42%, driven by fuel mix optimisation and higher alternative fuel consumptions.

During the quarter, ACC’s The Waste Heat Recovery System (WHRS) at Kymore & Jamul (22.4 MW) became fully operational, while another 16.3 MW at Ametha is expected to be commissioned in Q3. The share of WHRS in total power consumption will increase to 9% by the end of FY24 against 2.9% in the last quarter, it said.

On the outlook, the firm said it expects the industry to witness a volumetric growth as the demand environment remains “robust” on the back of increased housing and infrastructure spend.

McDonald’s India franchisee Westlife Foodworld Q2 profit drops 29.1% to Rs 22.37 cr on higher costs, revenue up 7.4% YoY

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Westlife Foodworld Limited (WFL), formerly known as Westlife Development and the owner-operator of McDonald’s restaurants across west and south India, on Thursday announced its Q2 earnings with profit at Rs 22.37 crore. The Q2 profit dropped by 29.1 per cent on-year in comparison to Rs 31.54 crore during the corresponding quarter of last year. It posted revenue from operations at Rs 614.73 crore, up 7.4 per cent as against Rs 572.42 crore during the second of FY23. 

Westlife Foodworld’s operating EBITDA grew 7 per cent YoY in H1FY24. Despite the lower operating EBITDA margin on account of higher G&A costs, gross margins improved by 93 bps YoY in Q2, thanks to an improved mix and cost-saving initiatives, whereas input costs remained mostly in line with the company’s expectations.

Westlife Foodworld said that its on-premises as well as off-premises businesses grew by 7 per cent YoY, with the off-premise contribution remaining stable at 41 per cent. “The group continues to focus on digital transformation with self ordering kiosks and mobile apps, with digital sales growing by 30 per cent YoY and contributing 67 per cent to the top line,” it said. 

Despite ongoing market challenges, the company added, it delivered a 3 per cent Same Store Sales Growth (SSSG) in H1FY24, marking an 11 per cent YOY growth in revenue compared to H1FY23. Q2FY24 sales grew by 7 per cent YoY, demonstrating the company’s ability to sustain growth and profitability. SSSG in Q2 was 1 per cent YoY.

“Our second quarter results, amidst challenging market conditions, reflect consistently strong execution of our long-term strategic playbook aligned with our Vision 2027. The resilient Q2 FY24 performance and sales growth affirm that Westlife Foodworld’s strategy of omnichannel, menu innovations, and prudent network expansion is working. While macroeconomic challenges persist, we continue to invest in our new stores and our other growth drivers to create value for all our stakeholders,” said Amit Jatia, Chairperson, Westlife Foodworld.

In terms of its network presence, as of September 2023, Westlife Foodworld is present in 370 restaurants across 59 cities. The company added 9 restaurants during Q2FY24 and is on track to add 40-45 stores in FY24. It aims to reach 580-630 restaurants by 2027.

Westlife Foodworld has a total of 71 drive-thrus and the company added 2 during the second quarter of FY24. It has 327 McCafés and Q2 saw an addition of 11 more by the company. Westlife also has a total of 237 EOTF stores and it added 13 more in Q2FY24. “This expansion underscores Westlife Foodworld’s commitment to catering to a broad market segment across various dayparts. It also fortifies its unique business model of combining quality food offerings with innovative dining experiences, thereby establishing a strong foothold across the geographies of West and South India,” the company said in a statement. 

US stocks: Wall Street posts fourth straight day of gains ahead of CPI report

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Wall Street extended its winning streak on Monday, rallying to a sharply higher close as investors awaited crucial inflation data that could provide clues about the duration and severity of the Federal Reserve’s tightening policy. Energy and technology shares helped the three major U.S. stock indexes touch two-week highs and notch their fourth straight session of gains, in which growth stocks were slightly favored over value.

The Labor Department’s consumer price index (CPI), expected before Tuesday’s opening bell, is this week’s main event, and will be scrutinized for any signs regarding the number and size of future interest rate hikes from the Fed.”CPI is expected to see a little bit of a decrease,” said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut. “The market is hoping that news translates into smaller rate hikes after the Sept FOMC meeting.” “Because of that, you’re seeing a risk-on type of mentality today,” Pavlik added.

On Thursday, Fed Chair Jerome Powell affirmed the central bank remains “strongly committed” to tackling decades-high inflation, and that it would “keep at it until the job is done.”Economists polled by Reuters expect monthly CPI to have contracted 0.1% in August from July, edging down to 8.1% year-on-year, mainly due to the recent cool-down of commodity prices.

Financial markets have currently priced in a 92% probability that the Federal Open Markets Committee (FOMC) will implement its third straight 75-basis-point interest rate hike at the conclusion of next week’s policy meeting, according to CME’s FedWatch tool. “The market has now fully priced in 75 basis points for September,” Pavlik said. “The market is hoping the next one is 50 basis points and that we’ll see a slight decrease in rate hikes after that, and Wall Street can live with that.”

Also read| Wall Street cautious ahead of US inflation data

The Dow Jones Industrial Average rose 229.63 points, or 0.71%, to 32,381.34, the S&P 500 gained 43.05 points, or 1.06%, to 4,110.41 and the Nasdaq Composite added 154.10 points, or 1.27%, to 12,266.41. All 11 major sectors of the S&P 500 closed green. Energy companies, boosted by rising crude prices, enjoyed the biggest percentage gain. Economically sensitive transports outperformed the broader market, while market-leading megacaps provided the most lift.

A 3.9% jump in Apple Inc shares gave the S&P 500 and the Nasdaq their biggest boost, days after the gadget maker unveiled updates to its iPhone and Apple Watch. Drugmaker Bristol-Myers Squibb rose 3.1% following the Food and Drug Administration’s approval of its psoriasis drug late on Friday. Rival Amgen Inc, maker of psoriasis drug Otezla, slid 4.1%.

Twitter Inc ended the session down 1.8% amid its legal wrangling against Tesla Inc chief Elon Musk for scrapping a deal to acquire the social media platform. Car selling platform Carvana Co hopped 15.5% higher following Piper Sandler’s upgrade of the stock to “overweight. “Advancing issues outnumbered declining ones on the NYSE by a 3.37-to-1 ratio; on Nasdaq, a 1.78-to-1 ratio favored advancers. The S&P 500 posted 11 new 52-week highs and no new lows; the Nasdaq Composite recorded 47 new highs and 59 new lows. Volume on U.S. exchanges was 9.63 billion shares, compared with the 10.22 billion average over the last 20 trading days.