Month: January 2023

Rupee likely to depreciate on strong dollar, elevated crude prices; USDINR pair to trade in this range

The Indian Rupee is likely to depreciate to 80 in coming sessions amid strength in dollar, volatility in equity markets, US Fed rate hike and inflation concerns. Rupee has fallen 6.51% against the US dollar so far in 2022. In comparison, Australian dollar has declined 7.5%, Pakistani rupee fell 23.77%, and Japanese Yen slipped 19.79% against the greenback YTD. On Tuesday, Chief Economic Advisor V Anantha Nageswaran had said that India is not defending rupee, and that the Reserve Bank of India is taking necessary steps to ensure that the movement of the rupee is gradual and in line with market trends. Rupee is being managed in a manner that reflects the fundamentals of the economy, he added.

Dilip Parmar, Research Analyst, HDFC Securities

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“The pair is trading within the range of 79.90 to 79.10 with rising volatility indicating consolidation before a directional trend. The confidence in positioning coming back from foreign institutions as the accelerated buying in the domestic equities after the worst sell-off in the last couple of months. The 5-day moving average of net foreign inflows increased to $289.4 million, rising above the 20-day average of $269.2 million, according to data from the Central Depository Services (India) Ltd.”

Anuj Choudhary – Research Analyst, Sharekhan by BNP Paribas

“Indian rupee depreciated by 0.38% yesterday on strong US Dollar and deteriorating global risk sentiments. US Dollar surged as US CPI rose unexpectedly to 8.3% y-o-y in August compared to expectations of 8.1% while core CPI increased to 6.3% y-o-y in August compared to expectations of 6.1%. This raised expectations of yet another aggressive rate hike by FOMC in its September meeting. Apart from increased odds of a 75 bps rate hike, there are talks of even a 100 bps rate hike.”

“We expect Rupee to trade with a negative bias amid risk aversion in global market worries that the US Federal Reserve may be more hawkish than previously expected. Investors may also take cues from PPI data from US today. However, India’s WPI inflation eased to a 11-month low of 12.41% in August which may support Rupee at lower levels. USDINR spot price is expected to trade in a range of Rs 78.80 to Rs 80 in next couple of sessions.”

Anindya Banerjee, VP, Currency Derivatives & Interest Rate Derivatives at Kotak Securities

“USDINR spot closed 79.44, up 30 paise, due to strong rally in US Dollar Index and sell-off in equities. However, RBI intervention and FPI flows may have capped the advance beyond 79.60. The sharp drop in the forward premium could be a sign of RBI selling in forwards. Post US CPI, odds of a 100-bps hike next week has increased. These odds can keep USDINR supported till Fed meeting. We expect a range of 79.20 and 79.80 on spot.”

Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors

“USDINR to open flat at 79.50 as the dollar index is at 109.72 US 10-year yields at 3.42 oil is $ 94 per barrel. Asian currencies are still on the weaker side against $ which will not allow the rupee to gain much against the dollar. The range for the day is expected between 79.30 to 79.80 as the market braces in for a 75 bps rate hike by FED on 21st. India’s trade deficit was higher though export figures were also revised to slightly higher. Trade deficit still remains a matter of concern for the country. Exporters to sell above 79.80 while importers to buy below 79.30.”

Also Read: Bulls may attempt a comeback to push Nifty above 18100; 5 key things to know before market opening bell

(The recommendations in this story are by the respective research analysts and brokerage firms. FinancialExpress.com does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.)

Simpl announces Diwali sale featuring products from D2C merchants nationwide

Simpl, checkout services provider, announces its ‘Crazy Desi Diwali sale’ from October 28th to November 2nd, 2023, to make available lakhs of products from D2C brands for millions of customers across the country.

This festive extravaganza aims to provide lakhs of products and services, ranging from fashion to footwear and electronics to home decor, from over 80 homegrown D2C merchants to millions of consumers across 100% of the serviceable pin codes across the country in an affordable manner. Customers looking to avail these benefits can visit Simpl’s mobile app to get access to the products and services on sale, where they will be redirected to the merchant’s platform with the discount already applied, enabling customers to save up to Rs 6,000 on their products and brands.

“The behaviour of Indian consumers has undergone a sea change over the last few years with a growing demand for niche products which fulfil their diverse requirements. This trend is panning out across categories – from fashion to footwear and electronics to Home decor where D2C merchants have become the preferred choice for customers. With the onset of the festive season, it becomes even more important to empower these merchants to cater to their customers’ evolving needs. As an organisation, Simpl is at the forefront of supporting merchants across the country through its technological platform and properties such as the Crazy Desi Diwali Sale, which enables them to showcase their wide selection of products to millions of consumers across the country, ”Khanaz K.A, CXO, Simpl, said.

Simpl, which has over 26,000 merchants and millions of customers across the country, has been actively working towards empowering the D2C landscape in India through its AI-led offerings such as the Checkout Network, Checkout Suite and D2C Simplified community. The community counts thousands of D2C merchants across the country including smaller cities such as Surat, Indore as its members.

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Deltatech Gaming, Pristine Logistics get Sebi’s go-ahead to float IPO

Deltatech Gaming Ltd and Pristine Logistics & Infraprojects Ltd have received Sebi’s go-ahead to raise funds through an initial public offering (IPO).

The two companies, which filed their preliminary IPO papers with Sebi during May and June, obtained its observation letter on September 30, an update with the markets watchdog showed on Monday.

In Sebi’s parlance, its observation implies its nod to launch an IPO.

Going by the draft papers, Deltatech Gaming’s Rs 550-crore IPO comprises fresh issue of equity shares worth up to Rs 300 crore and an offer-for-sale (OFS) of Rs 250 crore by promoter Delta Corp Ltd.

Proceeds worth Rs 150 crore from the fresh issuance will be utilised for organic growth through marketing and business promotion activities, to attract new gamers and retain the existing ones, Rs 50 crore will be used for strengthening the technology infrastructure to develop new capabilities, maintain and manage its existing platform and general corporate purposes.

The Gurugram-based company is one of the earliest companies in the real money gaming segment in India. Over the years, the digital gaming company has developed its own platforms, which it continues to evolve.

Pristine Logistics & Infraprojects’ initial share-sale comprises fresh issuance of equity shares worth Rs 250 crore and an OFS of 20,066,269 equity shares by promoters and existing shareholders, according to the Draft Red Herring Prospectus (DRHP).

Proceeds from the fresh issuance will be used to repay debt and for general corporate purposes.

Also Read| Rupee likely to consolidate in near-term, may fall to 83 level, if 82 breached amid global uncertainty

Pristine provides logistics infrastructure and services, pivoted around rail transportation networks. It also offers synergetic logistics infrastructure and services across the spectrum, including non-container, container, rail transportation and road transportation services.

It also helps in areas such as integrated logistics solutions by offering warehousing, storage and cargo handling, rail transportation, road transportation, and third-party logistics (3PL) services and identifies these services as the company’s key revenue streams.

Equity shares of both companies will be listed on BSE and NSE.

Meanwhile, Mukka Protein, which filed its IPO papers with Sebi in March this year, withdrew its DRHP on September 27, an update with Sebi showed.

The company is engaged in manufacturing of fish meal, fish oil and fish soluble paste which is widely used as a raw material in aqua feed, poultry feed, soap manufacture, leather tanneries and paint industries globally.

Colgate-Palmolive Q2 Results: Profit rises 22.3% on-year to Rs 340.05 crore, revenue up 6%; Rs 22 dividend declared

Colgate-Palmolive (India) Limited on Thursday posted profit for the quarter ended September 2023 at Rs 340.05 crore, up 22.3 per cent in comparison to Rs 278.02 crore during the same period last year, surpassing estimates. It posted revenue from operations at Rs 1471.09 crore, up 6 per cent as against Rs 1387.48 crore during the second quarter of FY23. The company EBITDA stood at Rs 482.2 crore. EBITDA margins continued to improve, up 120 bps vs. sequential quarter and up 340 bps vs. prior year quarter driven by pricing and efficiencies. According to a CNBC TV18 poll, Colgate-Palmolive was expected to post Q2 profit at Rs 332 crore and revenue at Rs 1502 crore.

Colgate-Palmolive reported a 6.1 per cent increase in net sales for the second quarter, reaching Rs 1462.4 crore as of September 30, 2023, compared to the same period in the previous year. Domestic growth was reported at 6.6 per cent for the quarter.

“We continue to be happy with our momentum and continue to be focussed on strengthening our brand portfolio and delivering superior products to consumers. In this quarter, we have doubled down on the Colgate Strong Teeth relaunch, expanding reach & availability. This has been further supported by the excellent performance of Colgate Max Fresh, which has been relaunched with the best, proprietary freshness technology. We have also restaged our largest toothbrush franchise, Colgate Zig Zag with a superior mix that focuses on its core equity of deep, interdental cleaning. Our domestic growth remains strong, registering a 6.6 per cent increase over the previous year quarter, with our toothpaste segment witnessing higher single-digit growth,” said Prabha Narasimhan, Managing Director & CEO, Colgate-Palmolive (India) Limited.

Furthermore, the company board also said that consequent to the appointment of Niraj Kumar, Business Lead – Bangladesh, Nepal and Sri Lanka, as the Managing Director of Colgate-Palmolive ACI Bangladesh Pvt Ltd, he ceases to be a member of the leadership team of the Company effective October 26, 2023.

Niraj Kumar is a seasoned professional with more than 2 decades of experience in the FMCG Industry. He is currently acting as a Business Lead – Bangladesh, Nepal and Sri Lanka for Colgate-Palmolive (India). He joined Colgate in 2007 as Customer development manager, where he worked on turnaround of business leading to market leader in struggling markets, the company said. He also led North and East India business as Customer development team leader successfully with strong business and share growth.

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. 

Also read: India’s GDP to grow at 7.5% in FY23 despite developed-economy recession; inflation to stay above 6% till Nov

The Indian IT stocks witnessed weakness on Thursday tracking slump in US IT stocks overnight. US markets tumbled mainly dragged by IT stocks after the US Federal Reserve hiked interest rate by another 75 bps with hawkish commentary. “However, fundamentally and technically, Infosys holds strong with encouraging growth and robust parameters from a long term perspective,” Ravi Singh, VP & Head of Research, Share India Securities. He also added investors may hold their long positions and wait for the target of 1450 levels in coming months.

Also read: Buy these two stocks to pocket gains, charts show upside; Nifty short-term trend looks choppy

Nifty IT index was ruling 0.3 per cent up, at 26,922 levels, on the back of gains in stocks of Coforege, Mindtree, LTTS, L&T Infosys, Tata Consultancy Services (TCS), and Mphasis, up in the range of 0.2-2 per cent. On the flip side, HCL Technology, Infosys, Tech Mahindra and Wipro were the top draggers.

The stock recommendations in this story are by the respective research analysts and brokerage firms. FinancialExpress.com does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.

Rupee held up better than others against US Dollar, says FM Nirmala Sitharaman

Finance minister Nirmala Sitharaman on Saturday said the rupee has “held back very well” against the US dollar when compared to other currencies, adding that the “RBI and ministry are keeping very close watch on this”. The Indian Rupee plunged to a record low on Friday, hitting 81.2250 to the dollar.

Speaking at a press conference in Pune after concluding her visit to the Baramati constituency, Sitharaman said efforts were on to contain inflation within the target band of 6%.

Also read: RIL-Sebi dispute: New SC bench to hear Sebi’s plea for review

Responding to a query on shifting of the Vedanta Foxconn semiconductor project from Maharashtra to Gujarat, the minister said the Maharashtra Vikas Aghadi (MVA) government should first answer why they stalled or stopped projects such as the Asia’s biggest Nanar oil refinery in Ratnagiri, the Rs 65,000-crore Wadhawan Port in Palghar district, Ahmedabad-Mumbai bullet train and the Mumbai Metro car shed.

“They should be held responsible for stalling projects rather than complain about one project that did not come to Maharashtra,” the finance minister said, pointing out that the Mumbai Metro Phase III project costs had escalated by Rs 4,000 crore because of the delay and failure to execute the project on time.

US Stocks: Futures bounce after brutal Wall Street selloff

US stock index futures jumped about 1% on Tuesday, following a bruising selloff over the last few sessions on rate-hike induced recession fears that confirmed the Dow has been in a bear market for most of this year.

If gains hold till the open, the three major stock indexes will snap a five-day losing streak, with rate-sensitive growth shares leading the advance in premarket trading.

Oil stocks got a shot in the arm after a sharp recovery in crude prices, with Exxon and Chevron up 1.4% each.

At 6:59 a.m. ET, Dow e-minis were up 273 points, or 0.93%, S&P 500 e-minis were up 42.25 points, or 1.15%, and Nasdaq 100 e-minis were up 152.5 points, or 1.35%.

Also read: India defers govt bond index inclusion to next year; $30 bln opportunity pushed back due to operational issues

Concerns about corporate profits coming under pressure from soaring prices, an economic downturn and higher interest rates have roiled Wall Street in the past two weeks, pushing the S&P 500 to new closing lows for the year on Monday.

Analysts have cut their S&P 500 earnings estimates for the third and fourth quarters, and for all of 2022. For the third quarter, overall S&P 500 earnings are seen rising just 4.6% year-over-year, compared with the 11.1% growth expected at the start of July.

US Federal Reserve officials on Monday sloughed off rising volatility in global markets, from slumping US stocks to currency turbulence abroad, and said their priority remained controlling domestic inflation.

Chicago Fed President Charles Evans said the central bank will need to raise interest rates by at least another percentage point this year, highlighting the Fed’s combative stance to quash too-high inflation.

Also read: MCX Crude oil October futures may rise to Rs 6800/bbl this week; medium-term fundamentals still remain bearish

Analysts at Wells Fargo now see the US central bank taking its target range for the Fed funds rate to 4.75%-5.00% by the first quarter of 2023.

Later in the day, investors will be watching for August durable goods orders, as well as consumer confidence data for the month.