Category: 上海后花园论坛

ACC, Ambuja Cements, Adani Group, Wipro, Hero MotoCorp, Tata Steel, Central Bank of India stocks in focus

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Bears are likely to grip Dalal Street on Wednesday amid high volatility, and uncertainty. SGX Nifty hinted at a negative start for benchmark indices NSE Nifty 50, BSE Sensex as Nifty future trading 0.5% down on the Singapore Exchange. “We believe all eyes will be on the FOMC meeting scheduled today wherein there are high expectations of the Fed increasing the rates by 75bps. So, the FED rate decision will dictate the market trend going ahead. Meanwhile, investors will continue to monitor global cues, crude and currency movement,” said Ajit Mishra, VP – Research, Religare Broking Ltd.

Stocks in focus on 21 September, Wednesday

Wipro: IT major Wipro announced the appointment of Dhruv Anand as country head and managing director (MD) for operations in Japan. Anand spent his formative years at Wipro before moving on to Tata Consultancy Services (TCS). In his most recent role at TCS, Anand led the manufacturing and hi-tech vertical with a focus on the Japanese automotive industry and ecosystem suppliers.

Hero MotoCorp: Two-wheeler maker Hero MotoCorp has partnered with Hindustan Petroleum Corporation Limited (HPCL) to establish charging infrastructure for electric vehicles (EVs) in India. As a part of the initiative, the companies will set up charging infrastructure for two-wheeled electric vehicles across the country.

Adani Group stocks: Days after completing its $6.5-billion acquisition of Ambuja Cements and ACC and chalking out plans to double the cement manufacturing capacity to 140 million tonnes in the next five years, Adani Group has pledged shares of the two companies valued at $13 billion based on Monday’s closing price. According to separate filings made to the stock exchanges by Deutsche Bank AG’s Hong Kong branch, about 57% of ACC and 63% of Ambuja Cements have been pledged “for the benefit of certain lenders and other finance parties”.

Tata Steel: The company has raised Rs 2,000 crore through NCDs issue as the board of directors has approved the allotment of 20,000 non-convertible debentures with a face value Rs 10 lakh each to identified investors on a private placement basis. The NCDs are proposed to be listed on the Wholesale Debt Market (WDM) segment of BSE.

Zydus Lifesciences: The company announced the launch of Lenalidomide Capsules in the US. The drug is a generic version of the US reference listed drug (US RLD) Revlimid of Celgene Corporation, a Bristol-Myers Squibb Company. The company had earlier received final approvals for 5 mg, 10 mg, 15 mg and 25 mg strengths and tentative approvals for 2.5 mg and 20 mg strength.

Also Read: Indian bonds’ inclusion in JP Morgan’s EM index to be game changer for Rupee; US Fed meeting major trigger

Central Bank of India: The Reserve Bank of India (RBI) took out Central Bank of India from the prompt corrective action (PCA) framework, subject to specific conditions. The Mumbai-based lender was the last bank under the regulator’s quarantine framework for weak banks after the asset quality review of 2015-16. The bank turned the corner in FY22, posting its first full year of profit after FY15. Its net profit for the year stood at Rs 1,045 crore. It was brought under the PCA framework, which imposes restrictions on a bank’s ability to grow risk-weighted assets, branch expansion and management expansion, depending on the threshold under which a particular bank is being penalised, in June 2017.

Ireland is among popular study abroad destinations for the Indian students; Study 

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Ireland is among the popular study abroad destinations for Indian students and 4,735 Indian students were enrolled in the Irish institutions between 2022 and 2023, sighted the recent insights from the ApplyBoard.

According to the Irish Higher Education Authority (HEA), In 2022/23, Ireland set a new all-time high for the number of international students studying at Irish universities. 33,480 students were enrolled at Irish universities last year, an increase of nearly 12% compared to 2021/22, according to the report.

According to the Higher Education Authority (HEA) 4,735 Indian students were enrolled in the Irish institutions between 2022 and 2023. India’s student population in Ireland has grown by a significant 17.8%, reflecting a surging trend. As a result, India is well-positioned to soon surpass the United States as the leading population of international students for Irish institutions, as claimed in the report.

The preference for fields of study remains consistent, with STEM subjects maintaining their dominance at 43% of all international students. With one in every five international students in 2022/23 enrolling in sought-after programmes including nursing, social work, medicine and childcare demonstrating the demand for healthcare-related careers.

Master’s programmes are on the ascent, accounting for 29.5% of international students in 2021/22, up from 20.8% in 2016/17. Ireland’s Third Level Graduate Scheme, offering extended work opportunities for master’s graduates, makes these programmes increasingly attractive.

Share Market HIGHLIGHTS: Sensex ends 156 pts up, Nifty at 17332 on weekly F&O expiry day; ICICI Bank up 2%

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Share Market News Today | Sensex, Nifty, Share Prices HIGHLIGHTS: Domestic equity market benchmarks BSE Sensex and NSE Nifty 50 ended the volatile session in the positive territory on Thursday, a day of weekly F&O expiry. BSE Sensex ended 157 points or 0.3 per cent up at 58,222, while NSE Nifty 50 gained 58 points or 0.3 per cent to settle at 17,332. Stocks of Tata Steel, L&T, ICICI Bank, HCL Tech, Infosys, Axis Bank, Sun Pharma, Wipro, Reliance Industries, among others were Sensex gainers. On the flip side, Bharti Airtel, Hindustan Unilever Ltd (HUL), IndusInd Bank, Housing Development Finance Corporation (HDFC), Bajaj Finance were among top index losers. India VIX, the volatility index, fell 1.3 per cent to end at 19.32 levels. Bank Nifty gained 0.4 per cent to finish at 39,283.

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

15:45 (IST) 6 Oct 2022 Sensex, Nifty extend Tuesday’s rally

BSE Sensex ended 157 points or 0.3 per cent up at 58,222, while NSE Nifty 50 gained 58 points or 0.3 per cent to settle at 17,332

14:53 (IST) 6 Oct 2022 Internet companies FY23Q2 preview

For Q2FY23, we estimate sequential revenue growth of 8.8%, 7.3%, 1.4% and 4.8% for Zomato, IndiaMART InterMESH (IndiaMART), Info Edge (IEL) and Just Dial (JD), respectively. However, higher employee costs and advertising spends would weigh on margins. As companies are at different stages of profitability and growth, we are seeing their divergent priorities. Edelweiss

13:49 (IST) 6 Oct 2022 Electronics Mart India IPO: Public issue closes on 7th Oct, check grey market premium; should you subscribe?

Electronics Mart India Ltd’s (EMIL) Rs 500 crore-IPO has been subscribed 2.64 times so far on day 2. The IPO received bids for 21,05,78,192 shares against 6,25,00,000 shares on offer, according to the data available with the NSE. The last day to subscribe to the issue is Friday, 7 October 2022. The IPO consists of a fresh issue of equity shares aggregating to Rs 500 crore, with no offer for sale component. Price range for the offer is at Rs 56-59 per share. In the grey market, Electronics Mart India shares were trading with Rs 36 per share premium, according to the people who deal in unlisted shares of the companies. Read full story

11:33 (IST) 6 Oct 2022 India Services growth loses momentum, September PMI shows weakest expansion since March; price pressures hurt

India’s Services PMI saw a dip and posted 54.3 in September, following August’s rise, suggesting a loss of growth momentum owing to price pressures, unfavourable public policies, and an increasingly competitive environment. The seasonally adjusted S&P Global India Services PMI Business Activity Index fell from 57.2 in August to 54.3 highlighting the weakest rate of expansion since March 2022. The data, however, reflected sustained economic growth, the S&P Global report noted. Read full story

11:19 (IST) 6 Oct 2022 Electronic Mart India IPO subscription update

Electronic Mart India IPO subscribed 2.64 times at 11.03 am (Day 2). Overall 2.64 times, QIB 1.68 times, NII 2.54 times and Retail 3.22 times

11:19 (IST) 6 Oct 2022 Lack of positive triggers for tech stocks in near term

We remain cautious on IT Services and expect more legs to consensus EPS downgrade cycle (refer IT Services – Nexus of cost management, EPS surprise, dated 27 September 2022). Post 24% correction FYTD, tier I Tech plays are trading close to their five-year average 12m rolling forward P/E (-5% to +9%), while at 11-40% premium to pre-pandemic average. We see lack of positive triggers for tech stocks in the near term. We maintain Reduce on Wipro and SELL on Mphasis. Elara Securities

10:51 (IST) 6 Oct 2022 Britannia to buy Britania: 130-yr old Indian co to acquire Kenya firm for this much money, expand Africa ops

India’s biggest cookie manufacturer, Britannia Industries Ltd., clinched a deal for operations in Kenya as part of its plan to expand in Africa. The company teamed up with Nairobi-based Kenafric Industries to purchase Catalyst Capital-backed Britania Foods Ltd. in Kenya in a $20 million transaction that also involved acquiring property and a plant, Mikul Shah, a director at Kenafric, said in an interview. Britannia Industries, unrelated to Britania Foods, took a controlling stake in the partnership, he said. Read full story

10:49 (IST) 6 Oct 2022 India September Services PMI at 54.3

India September Services PMI at 54.3 vs 57.2 sequentially; India September Composite PMI at 55.1 vs 58.2 (MoM)

10:25 (IST) 6 Oct 2022 MCX gold may trade in Rs 51,480-52,350 range

Gold and silver did witness some pressure in yesterday’s after a rally in the past few session; Dollar index and U.S. yields were up by ~1% and 4% respectively. Although this move seems to have reversed again in early morning trade as pressure on U.S. Yields and Dollar continues to support metal prices. Data showed U.S. private employers stepped up hiring in September, suggesting demand for workers remains strong despite rising interest rates and tighter financial conditions. Focus now shifts to the U.S. Labor Department’s closely watched nonfarm payrolls data for September on Friday. San Francisco Fed Mary Daly underscored the U.S. central bank’s commitment to curbing inflation with more rate hikes, even as she said the Fed will not simply barrel ahead if the economy starts to crack. Today the focus will be on the Service PMI data expected from major economies. Broader trend on COMEX could be in the range of $1710-1740 and on domestic front prices could hover in the range of Rs 51,480-52,350. Navneet Damani, Sr. Vice President – Commodity & Currency Research, Motilal Oswal Financial Services

10:06 (IST) 6 Oct 2022 Gold Price Today, 6 Oct 2022: Gold gets costlier, near Rs 52000; analysts say ‘buy on dips’, check silver rate

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate and silver rate were trading higher in India on Thursday, on the back of positive global cues. On the Multi Commodity Exchange, gold December futures were ruling Rs 269 or 0.5 per cent up at Rs 51915 per 10 gram, as against the previous close of Rs 51646. Silver December futures were trading at Rs 61490 per kg, up Rs 723 or 1.2 per cent on MCX. Globally, yellow metal prices edged higher as Treasury yields retreated, although gains were limited after stronger U.S. economic data bolstered expectations the Federal Reserve will retain its hawkish narrative. Read full story

09:33 (IST) 6 Oct 2022 Nifty’s near-term target at 18115

Standard deviation studies encourage us to look beyond and set 18115 as the near-term target. A close in the 17500 vicinity could be considered a confirmation signal towards this end, while also helping MACDF with a centre line cross over for the first time in almost one and a half months. Alternatively, a close back below 17300 would dilute the upside prospects. Anand James – Chief Market Strategist at Geojit Financial Services

09:32 (IST) 6 Oct 2022 Petrol and Diesel Price Today, 6 Oct 2022: Fuel cost steady; Check rates in Delhi, Mumbai, Noida, other cities

Petrol and Diesel Rate Today in Delhi, Bangalore, Chennai, Mumbai, Lucknow: The price of petrol and diesel remained unchanged on 6 October 2022 (Thursday), keeping costs steady for nearly four months now. The petrol rate and diesel rate in Delhi are at Rs 96.72 and Rs 89.62 per litre, respectively. In Mumbai, petrol is retailing at Rs 106.31 per litre and diesel at Rs 94.27 per litre. Read full story

09:25 (IST) 6 Oct 2022 HDFC, HDFC Bank, Kotak Bank top Sensex laggards

Bajaj Finance, Housing Development Finance Corporation (HDFC), Hindustan Unilever Ltd (HUL), HDFC Bank, Kotak Mahindra Bank, IndusInd Bank were among top index draggers.

09:24 (IST) 6 Oct 2022 Reliance Industries, Infosys top Sensex gainers

Stocks of L&T, HCL Technologies, Sun Pharma, Reliance Industries, Infosys were among top Sensex leaders

09:21 (IST) 6 Oct 2022 Sensex, Nifty extend Tuesday’s rally

BSE Sensex jumped 500 points or more than 1 per cent to 58578, while NSE Nifty 50 crossed 17400 on weekly F&O expiry day

08:42 (IST) 6 Oct 2022 USDINR to remain in 81.20-81.90 range, before breaking towards 82.50

Back home, Rupee is likely to open near 81.60 levels, with an expected intraday range of 81.35 to 81.90. The cues for the USDINR in recent days have been mixed. On one side, weakness in the USD amid a short recovery in riskier equities and currencies along with RBI’s small step towards guiding oil refiners to lean on the $9 bn credit line instead of the spot helped Rupee to off from its low. But recovery in US yields amid rising inflationary concerns has again put pressure on Rupee in the Asian market today. The focus shifts to today’s US private payroll and tomorrow’s official job report, which will further drive the momentum in USD and thus will guide the Rupee. Overall, we expect the USDINR pair to remain in a range of 81.20 to 81.90, before breaking towards 82.50 levels. Amit Pabari, managing director, CR Forex Advisors

08:35 (IST) 6 Oct 2022 Bank Nifty support at 38000, Nifty to trade flat on today’s expiry; use short straddle for 13 Oct F&O expiry

Nifty Put options OI distribution shows that 17,000 has highest OI concentration followed by 17,100 & 17,200 which may act as support for current expiry and on the Call front 17,500 followed by 17,600 & 17,700 witnessed significant OI concentration and may act as resistance for current expiry. Options data suggest an immediate trading range between 17,500 and 17,100 levels.In Nifty Call writing was witnessed at 17,500 , 17,550 & 17,600 ;while on Put side it was seen at 17,200 ,17,100 &17,000. Read full story

08:16 (IST) 6 Oct 2022 Bank Nifty index support at 38500

Bank Nifty had a decent gain when it closed for the day. On the daily chart, the index has closed above 50 EMA which is a bullish setup. The RSI has narrowed down its negative crossover. The trend looks positive. On the lower end, support is placed at 38500, resistance on the higher end is visible at 39500/40000. Rupak De, Senior Technical Analyst at LKP Securities

08:14 (IST) 6 Oct 2022 Banking, financial sector could remain in momentum in near-term

We expect momentum in Nifty to continue towards 17650-17700 zone. The earning season is about to begin with TCS reporting its result on 10th Oct’22. Being seasonally strong quarter, IT companies are expected to report healthy 9% constant currency QoQ PAT growth in Q2. However, commentary around weakening global macro and adverse FX impact would be key monitorable. Pre quarterly updates from banking and financial companies indicate strong Q2FY23 earnings, hence this sector could remain in momentum in the near term. We expect stock specific action with pre quarterly updates coming in over the next few days. Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services

08:12 (IST) 6 Oct 2022 Nifty immediate support at 17150

The short term trend of Nifty has turned up sharply after a broader range movement of the last few sessions. A decisive move above 17300 levels is likely to pull Nifty towards the next crucial resistances of around 17600 and next 18000 levels in the near term. Immediate support is placed at 17150 levels. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

08:12 (IST) 6 Oct 2022 Morgan Stanley says bottom near for emerging-market equities

Having endured a long stretch of losses, stocks in emerging markets and Asia excluding Japan are close to completing their bear-market cycles, Bloomberg report quoted Morgan Stanley. It’s highly likely these markets are bottoming amid “abundant” signs of extreme selling, the investment bank’s strategists including Jonathan Garner wrote in note Tuesday. They upgraded emerging-market and Asia ex-Japan stocks to overweight from equal-weight. Bloomberg

08:10 (IST) 6 Oct 2022 US stock market falls in overnight trade on Wednesday

In overnight trade on Wednesday, Wall Street stocks closed lower after data showing strong U.S. labor demand again suggested the Federal Reserve will keep interest rates higher for longer, according to Reuters. The Dow Jones Industrial Average fell 42.45 points, or 0.14%, to 30,273.87, the S&P 500 lost 7.65 points, or 0.20%, to 3,783.28 and the Nasdaq Composite dropped 27.77 points, or 0.25%, to 11,148.64.

08:10 (IST) 6 Oct 2022 Asian stock markets trade mixed on Thursday

Asian stock markets were trading mixed in early trade on Thursday. Japan’s Nikkei 225 gained 0.78%, while the Topix added 0.71%. The Kospi in South Korea rose 0.81% and the Kosdaq was 1.85% higher.

08:09 (IST) 6 Oct 2022 SGX Nifty positive on weekly F&O expiry day

Nifty futures on the Singapore Exchange were trading 89 points, or 0.51 per cent, higher at 17,428.

Muthoot Finance Rating: Buy | Better times ahead for the company

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By Kotak Institutional Estimates

We believe that the withdrawal of teaser rate loans and better pricing discipline will support Muthoot’s near-term net interest margin (NIM). Gold price tailwinds due to a depreciating INR will augur well for Muthoot’s medium-term growth prospects. We remain positive and upgrade the stock to BUY (from ADD) with a revised Fair Value of Rs 1,240 (22% upside).

Rising competitive pressures had prompted Muthoot to launch teaser loans in December 2021 that put pressure on its NIM for two subsequent quarters. The company stopped the scheme in April but the entire portfolio was shifted to higher-yielding loans by June 2022. Increasing credit growth in the system will likely prompt these players to shift focus away from gold loans that tend to be a low-ticket, low-duration and high-velocity business.

Also Read: One 97 Communications Ltd Rating: Overweight | Margin improvement in payment business

Valuation undemanding despite improving underlying securityWe remain assertive on Muthoot’s business model to deliver ~20% RoE and low-to-mid teens medium-term growth. Credit cost remains low due to solid underlying security and Muthoot’s risk-management systems that have ensured strong portfolio performance over cycles. Growth has, however, been volatile linked to gold price movements and auctions. While we are not revising our estimates, we find upside risks from a depreciating INR supporting gold prices. Valuations at 7.6X earnings and 1.5X book FY2024E are undemanding. BUY; RGM-based FV stands at Rs 1,240 .

Will bulls stage a comeback or bears drag Nifty to 17150? 5 things to know before share market opening bell

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Indian stock market is likely to open in green on Monday as trends in the SGX Nifty hinted at a positive start for Indian benchmark indices, with a gain of 43 points. In the previous session, the BSE Sensex fell nearly 1,100 pts to 58,841, while the NSE Nifty 50 plunged around 350 pts to 17,531. “Indian markets were the worst performers in the Asian pack on Friday, as higher inflation and likely aggressive rate hikes by the US Fed sent stocks tumbling across the board. We are likely to see strong bouts of volatility in the coming sessions as global slowdown looms large. Technically, the double top formation on daily and intraday charts and bearish candle on weekly charts is indicating further weakness from current levels,” said Amol Athawale, Deputy Vice President – Technical Research, Kotak Securities.

Also Read: ACC, Adani Power, Ambuja Cements, Tata Steel, Paytm, Tata Power, HDFC Life, Indus Towers stocks in focus

Nifty technical view: “A long bear candle was formed on the daily chart, that has engulfed the last 9-10 sessions range movement with positive bias in the last two sessions. Technically, this faster retracement on the downside could mean more weakness for the market ahead. Nifty on the weekly chart formed a long range bear candle with the bearish candle formation like dark cloud cover. Last week’s chart pattern confirms a false upside breakout of the significant resistance of down trend line at 17900 levels. The short term trend of Nifty seems to have reversed down. The formation of bearish candlestick pattern on the daily and weekly chart indicates more weakness ahead for the market,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

Levels to watch for: “Markets have shown tremendous strength so far amid the global turmoil however the lingering fear of aggressive rate hikes by the US Fed has capped the upside and also trigger intermediate declines. The prevailing market structure combined with cues from the US markets is pointing towards further fall. A breakdown below 17,500 in Nifty could push the index to the 17,150 zone. In case of any rebound, the 17,800-18,100 zone would act as a hurdle. We feel participants should stay light and maintain positions on both sides. Amid all, we reiterate our preference for private banking counters and suggest using correction to accumulate them in a staggered manner. On the flip side, IT and pharma look weak to us and can be considered for short trades,” said Ajit Mishra, VP – Research, Religare Broking.

Trade Setup: “The Indian market performance showed resilience in the last couple of months and outperformed the major global market by a superior margin. We believe macroeconomic factors will continue to influence the market, and in the near term, market performance will be range bound. We could see the reaction in both directions. On Friday, we saw weakness in the equity ahead of the FED meeting scheduled this week. We believe the market is likely to be volatile in the near term as the global central bank could surprise the market by raising interest rates beyond the market’s current estimates,” said Neeraj Chadawar, Head – Quantitative Equity Research, Axis Securities.

“The current setup is a ‘Buy on dips’ market, and investors should use volatility in the coming weeks in a phased manner to build a position with a view of 12-18 months in quality companies where earnings visibility is very high. In this context, domestic-oriented themes like Banks, FMCG, Hospitals, Domestic Industrials, and Discretionary consumption are well placed over export + cyclical-oriented themes,” he added.

Also Read: US FOMC meeting preview: Fed may announce 50-75 bps rate hike in Sep monetary policy as inflation persists

Stocks under F&O ban on NSE: Indiabulls Housing Finance, India Cements, PVR, and RBL Bank are the four equities under the NSE F&O ban list for September 19. Securities thus banned under the F&O segment include companies where derivative contracts have crossed 95 per cent of the market-wide position limit.

What’s crippling share market? SEBI boss calls out markets’ polio, smallpox; no view on IPO pricing

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SEBI chairperson Madhabi Puri Buch termed insider trading, front running, and information asymmetry as Indian equity market’s smallpox and polio. She assured that SEBI’s every single policy is back-tested by data. “There is not a single piece of paper now that moves within SEBI that is not backed by data,” Buch said at an event on Tuesday, 13 September. She added that the capital market regulator was trying to keep pace with the evolution of the market. SEBI holds no view on the IPOs pricing, and companies are free to price their issue, which they feel is appropriate for them, Buch iterated. She added that there is a need to manifest the spirit of partnership between SEBI and corporates.

Also read: Inflation may cool off in next 2 quarters, another 50 bps RBI repo rate hike likely in September

Buch noted that the regulator is in a disclosure-based regime, and full disclosures protect all stakeholders. “Every step at SEBI will be taken after recommendations from the advisory committee,” Buch said. The Securities and Exchange Board of India is working to improve trust in capital markets, and see a lot of opportunities for India in the current environment. “SEBI believes that it exists for capital formation for the Indian economy,” the SEBI Chairperson said. She added that trust in the system needs to be protected, otherwise SEBI will fail in its core objective. She also noted that transparency is one important aspect of trust building, which holds importance for SEBI. Nation building is being done on the ground by the corporates who are building businesses, producing products, delivering services to the consumer, and that is what is creating wealth for the nation, she further said.

Also read: FM Sitharaman’s 4-wheel car to drive India’s economic growth: Skills, jobs for youth important; check other 3

Technology is the magic bullet

Talking about public issues and preferential share allotment, Buch said that firms must disclose differences in pricing on the preferential allotment and subsequent public offer. In regards to litigation against managerial personnels, SEBI Chairperson advocated consulting, saying “SEBI has plenty to do if firms fail to disclose litigation against managerial personnel in offer documents. Our working assumption is that the world is too complex, thus we must consult.” Buch believes that technology is the ‘magic bullet’ as according to her with technology, it is possible to reduce cost, serve the customer better, have better control, and compliance.

Nykaa board to meet on October 3 to consider bonus share issuance

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Cosmetics and fashion retailer Nykaa on Wednesday said the company’s board will meet on October 3 to consider and approve the issuance of bonus shares to its existing shareholders.

“We wish to inform you that a meeting of the board of directors of the company will be held on Monday, October 3, to interalia, consider and approve the issuance of bonus shares to the equity shareholders of the company in the ratio, as it may deem fit and seeking shareholders’ approval by way of postal ballot and such other approval(s), as the board may deem appropriate,” a regulatory filing by the company to the stock exchanges said.

Bonus shares are additional shares given to the current shareholders of the company without any additional cost, based upon the number of shares a shareholder owns. These are the company’s accumulated earnings, which are not given out in the form of dividends, but are converted into free shares.

During the April-June quarter, Nykaa posted a 43% year-on-year jump in its net profit to Rs 5 crore, against Rs 3.52 crore in the same period a year ago.

Consolidated revenue from operations during the period increased 41% to Rs 1,148.42 crore during the period, while operating margin stood at 4%, up 70 basis points.

The company’s gross merchandise value grew 47% on year to Rs 2,155 crore during the quarter. Within the business, Nykaa’s beauty and personal care segment saw GMV grew 39% year-on-year to Rs 14,88 crore, while the fashion segment’s GMW grew 59% on year to Rs 582 crore.

On Wednesday, FSN E-Commerce Ventures’, Nykaa’s parent firm, shares closed at Rs 1,277.35 apiece on the BSE , down 0.8% from previous day’s close.

5 Nifty stocks to buy post Budget 2021; technical charts show strong gains as Nifty 50 eyes further upside

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By Shrikant Chouhan

Markets are happy with the outcome of the Union Budget. Banks, infra and commodities were preferred sectors from major participants of the market on the completion of the Budget announcements. Nifty has broken all the important resistance levels led by strong companies. Technically, the market has created a strong bullish reversal pattern on a daily chart is moving towards the 14500 levels. Traders should consider reducing the weak positions on the resistance or around the cost price. The strategy would be to buy in the market if it corrects to 14200. The Nifty would move above to the level of 15300 if it crosses 14800 levels. The bank nifty has cheered the sentiment and surpassed the previous high, which was at 32842 levels. As per the charts, it is heading for the levels of 34500 in next few weeks.

Escorts: As per the Japanese candlestick formation the stock has formed “Inverted Hammer” formation after hitting the support area of 1200. It is heading higher for the upward boundary which is at 1350. Buy at current levels with a final stop loss at 1230.

HDFC Life Insurance Company: The stock has formed a higher bottom at 670 and reversed back sharply. It has next resistance in the region of 725/730. Buying is advisable with a strict stop loss at 680.

Tata Motors: It is trending upward and after consolidating between the levels of 255/270, it could move to set a new high above the levels of 307. Buy at current levels and for that keep a final stop loss at 267.

Axis Bank: It is the most out performing stock within the basket of Bank Nifty. It has decisively surpassed the psychological mark of 700. Based on long term charts, the stock is ready to surpass all-time high levels. However, in the short term 735/745 would be major hurdles. Keep a stop loss at 695 for creating any long position.

(Shrikant Chouhan is the Executive Vice President, Equity Technical Research at Kotak Securities. Views expressed are the author’s own.)

Market valuations seem overextended; these sectors could be hit by localised lockdowns | INTERVIEW

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Although domestic stock markets have corrected from their all-time highs, market valuations still seem to be overextended given the economic outlook, said Investment advisor Sandip Sabharwal in an interview with Surbhi Jain of Financial Express Online. He added that consensus earnings estimates are very high and could be tough to achieve. The market veteran added that the second wave of covid-19 is likely to impact the April to June quarter earnings of various sectors as states revisit imposing lockdowns. Here are the edited excerpts.

Amid the second COVID-19 wave, do you find market valuations reasonable? Is there any scope for further correction?

What do you make of corporate earnings by IT companies so far?

IT company earnings were fine. However, the risk is in earnings as margins are likely to be under pressure given wage hikes and lack of support from currency movements. The good part is that the business outlook continues to be strong for IT companies and that will prevent any significant decline in stock prices.

Do you think fresh localised restrictions including curfews and weekend lockdown to curb COVID will hit Apr-June quarter results?

Companies were facing unprecedented raw material price hikes even prior to the lockdowns and earnings growth outlook ex of the metals and commodity basket was looking shaky. The localised lockdowns are in a way a double whammy where margins are under pressure and on top of that sales are also likely to be impacted which will reduce the operating leverage which could have played out and helped the companies bypass some of the margin pressure. The impact on April to June earnings is likely to be real and significant especially in some pockets like consumer goods, automobiles, retail etc

In the past week, IT and Realty indices plunged up to 6 per cent, what’s weighing on these sectors?

Technology stocks corrected just because they had run up rapidly and most traders were overbought on the sector. Realty typically is high beta and whenever there is a sharp market correction then these stocks correct more. However, the outlook for real estate is not negative and the cycle has turned after many years and is likely to sustain.

What would be an appropriate strategy for Nifty Bank traders?

Nifty Bank traders should be cautious. The banking sector outlook which was improving could take a hit due to lockdowns and the impact on MSME’s and retail loans. The NPA picture might take more time to improve and that could be negative. On top of that inflation has picked up substantially which is typically negative for financials.

Indian rupee becomes Asia’s worst-performing currency in just two weeks, where is the rupee headed?

The INR outlook is more towards a depreciation cycle now as the interest rate differentials between India and the USA is not attractive given the growth and inflation outlook. In case the Indian Economic recovery lags that of the other Emerging Markets due to the second Covid wave we could see rupee underperformance continue.

(The stock recommendations in this story are by the respective research and brokerage firms. Financial Express Online does not bear any responsibility for their investment advice. Please consult your investment advisor before investing.)

Strengthening India’s Public Health System through Immunization

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By Nikhil George

As India aims to carry forward its economic growth agenda and transform into a US$5 billion economy, it is necessary that we focus on creating resilient health systems that are built upon improvements in preventive and curative care measures to help improve productivity.

With India, now the most populous nation in the world, the lower to middle-income country faces multiple infrastructural challenges pertaining to healthcare and the public health system is vulnerable to severe capacity shortages as it must tend to a high disease burden of communicable, non-communicable, and reproductive health-related diseases. It is therefore imperative that due focus be given to enhancing prevention, the first level of healthcare, through vaccination, raising awareness of its importance, and developing innovative financing mechanisms.

Public Health vaccination programs have primarily been aimed at protecting children, the most vulnerable and affected by many Vaccine-Preventable Diseases (VPDs). However, empirical evidence suggests that VPDs from direct infection or from opportunistic infection due to comorbidities severely impact mortality, disability, and Quality-Adjusted Life Years (QALY) of adults. Therefore, it is imperative to develop a sustained strategy for immunization for an individual’s life course.

India’s Vaccine Preventable Disease Burden

Developing this life-course immunization strategy becomes difficult. Constraints include the scarcity of data on the incidence rate of VPDs in the country and the vaccination uptake in India. This suggests that adult vaccination coverage, even among the at-risk population, such as healthcare workers, the aging population, and the immunocompromised segment is negligible. This can largely be attributed to the lack of awareness of vaccines and their role in preventing certain VPDs amongst the general population and healthcare providers. This highlights the need to improve awareness of adult vaccinations at an individual level, at the level of healthcare professionals, and the community at large, via the involvement of different stakeholders across the government and private health sectors.

Leveraging India’s Vaccine Infrastructure

The success India has seen in its childhood immunization programs needs to be leveraged to ensure we, as a nation, achieve success in our life course immunization approach. The direct benefits of the childhood vaccination program can be seen through the reduction of infant and childhood mortality rates in India, which has drastically decreased in the last four decades, and needs to be replicated. This can be aided through our improved vaccine supply chain infrastructure that has been developing due to COVID and delivering over 2.2 billion vaccinations. India has enhanced its production capacities, trained frontline workers, deployed over 70,000 vaccination centres, and created an end-to-end digital platform, CoWIN, that can be repurposed for all vaccines. India now should broaden its Universal Immunization Program (UIP) to include other risk groups among its adult population.

The Way Forward

As India needs to allocate its resources in the most efficient manner, it is imperative that immunization, first and foremost, be recognized as an integral part of healthcare policy planning. This will help to raise awareness and establish clinical guidelines on the usage of vaccination as a preventive and disease management strategy.

Not all vaccines can be administered to the adult population, therefore the non-pediatric population needs to be divided into various risk cohorts, to ensure that the most vulnerable sections of the population are covered. This identification and segmentation of high-risk groups can be undertaken on the basis of socio-economic and demographic profiles and epidemiological disease burden, i.e., ageing population or patients suffering from co-morbidities.

It will be necessary to develop novel financing mechanisms to cover the costs of vaccines. One suggested method could be through its inclusion in government-funded insurance programs such as Ayushman Bharat-Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) that can help prevent in-patient incidents and reduce the overall health burden. This can also be extended to private health insurance policies and group insurance covers to support healthy aging and a healthy workforce.

Finally, India can scale up its healthcare delivery infrastructures for adult vaccines throughout the country through the conversion of established anti-rabies clinics and yellow fever immunization clinics to cover overall immunization.

Reducing India’s healthcare burden through inoculation can aid in our health and economic agendas. As with other policy decisions, this will have its own challenges that can only be solved over time. However, with the introduction of a Life course Immunization approach, India can work towards bringing about a reduction in its overall healthcare burden.

The author is Manager, Healthcare at the US – India Strategic Partnership Forum (USISPF).

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