– Petrol and diesel rates at fresh all-time high
– Monsoon set to withdraw by October 26
– Industrial output regains lost ground
– Coal shortage continues at thermal plants
Now lemme give you a quick glance on the state of the markets.
Dalal Street is likely to have a positive start this morning. Nifty futures on the Singapore Exchange traded 41 points higher at 8:15 hours (IST). Asian shares opened mostly higher on Thursday as rising US bond yields worried investors, although overnight gains on Wall Street provided some support. MSCI’s broadest index of Asia-Pacific shares outside Japan rose by 0.12 per cent.
Elsewhere, the yield on 10-year Treasuries rose one basis point to 1.67%. The dollar’s index, having eased 0.3% so far this week, stood at 93.602, near its lowest level since late September. Bitcoin was around $65,300 after setting an all-time high. Oil prices rose on Thursday to extend gains from the previous session as US crude and fuel inventories tightened further, with supplies of gasoline hitting a two-year low, pointing to strong demand. Brent crude futures climbed 17 cents, or 0.2%, to $85.99 a barrel.
That said, here’s what is making news.
The September quarter numbers reported by Tata Steel’s subsidiary Bhushan Steel give confidence. In addition, Tata Steel is the lowest cost steel producer in the world thanks to captive iron ore and coal mines. It will therefore be least impacted by the rise in input prices. Tata Steel BSL reported 7 per cent sequential rise in the realization for the September quarter though sales volume fell by 1 per cent.
Most brokerages have maintained their bullish ratings on Hindustan Unilever (HUL) after the company reported a 9% rise in September quarter net profit to ₹2,187 crore. Edelweiss, HSBC and Motilal Oswal have maintained buy ratings on the fast moving consumer goods giant, while CLSA has retained an outperform rating. IDBI Capital has upgraded the stock to buy from hold but trimmed earnings estimates for FY22-FY23 period by 3-4% citing revised outlook on raw material cost inflation.
Debt index funds are now gaining currency because of their portfolio of AAA-rated PSU bonds and state bonds, called state development loans (SDL) in market parlance. After the series of negative events in the fixed income space, conservative investors are keen to play it safe and are comfortable with PSU bonds or SDLs with no fund manager intervention. Distributors point out that investors save on expenses in passive debt funds, which increases their overall returns.
Cracks are appearing in the blistering rally in mid- and small-cap shares seen over the past 18 months. Indices comprising smaller shares have fallen as much as 5% in the past two trading sessions, raising concerns that the bullish momentum could see a reversal for a longer period. Bulls are taking heart that declines in the broader market since late March 2020 have not lasted for long thanks to the strong flows from individual investors. But experts warn against aggressive purchases in these segments even on dips as valuations are perceived to be rich.
NOW Before I go, here is a look at some of the stocks buzzing this morning…
Bandhan Financial Holdings has offered to buy Future Group’s stake and acquire a controlling interest in Future Generali India Life Insurance Company-a three-way joint venture between the Future Group, Industrial Investment Trust (IIT) and Italian insurance and asset management giant Generali.
L&T Finance Holdings (L&T Finance) the non-banking finance company of the engineering to IT group reported a 10 per cent fall in net profit year on year as its loan book shrunk even as collections and disbursements improved in the second quarter ended September 2021.
Tata Communications’ consolidated profit jumped 10.6 per cent on year to Rs 425 crore in the fiscal second quarter due to lower operating cost and taxes, while consolidated revenue was down 5.2 per cent to Rs 4,174 crore, on a decline in its voice business and moderation in the data segment.
Vodafone Idea has informed the government that it will accept the four-year spectrum payment moratorium, becoming the first telco to accept the deferred payment option provided under the telecom relief package.
Do also check out over two dozen stock recommendations for today’s trade from top analysts on ETMarkets.com.
That’s it for now. Stay with us for all the market news through the day. Happy investing!