Data show US inflation slowed to 7.1% last month from 7.7% in October which bolstered investors’ expectations that the Fed will downshift to an increase of 0.50 percentage points on Wednesday.
UK inflation slows to 10.7% in November
British inflation slowed in November from October’s 41-year peak, data showed Wednesday, but remains elevated as a cost-of-living crisis sparks strikes across the economy. The Consumer Prices Index eased to 10.7 percent last month, the Office for National Statistics (ONS) said in a statement. (Read More)
Pernod Ricard appoints Paul-Robert Bouhier as India MD
French spirits major Pernod Ricard on Wednesday announced the appointment of Paul-Robert Bouhier as its new Managing Director for India.
Robert takes the reins from Thibault Cuny, who stepped down in October 2022 due to health issues.
His appointment as Pernod Ricard India Managing Director is with effect from January 1, 2023, a company statement said.
In his new role, he will report to Philippe Guettat, Chairman and CEO of Pernod Ricard Asia, and will be a member of the Pernod Ricard Asia Executive Committee, it added.
“Paul-Robert will be responsible for continuing to transform and accelerate Pernod Ricard India’s business strategy, developing organization and people and finding new opportunities for sustainable and profitable business growth,” it said. (PTI)
All sectoral indices but for FMCG is trading green
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India-China Trade Jumps Thwarting Modi’s Self-Reliance Ambitions
India’s bilateral trade with China rose by a third in the year to March, throwing a spanner on Prime Minister Narendra Modi’s drive to wean the South Asian nation from relying on its hostile neighbor for cheap imports and promote a thriving domestic industry.
Total merchandise trade between India and China rose 34% to $115.83 billion in the 12 months to March 2022, according to data from the Commerce Ministry released to parliament last week. Trade between the two nations so far this year — between April and October — stood at $69.04 billion, according to the ministry.
In recent years, Modi’s administration has been trying to cut India’s reliance on China — the country’s biggest source of imports. It imposed curbs on trade and businesses in 2020 amid the deadliest fighting in decades at their disputed Himalayan border. (Bloomberg)
CPAI asks Sebi to provide uninterrupted trading in cotton futures contracts
Commodity Participant Association of India (CPAI) has urged capital markets regulator Sebi to facilitate uninterrupted hedging and trading in cotton futures contracts to market participants.
This comes after Sebi in August suspended trading in all cotton futures contracts on commodity exchange MCX for one month to align the contract specifications with that of the market.
Later, MCX informed that it is in process of modifying the cotton contract specification and no fresh position would be permitted in cotton January 2023 contracts and the subsequent expiry contracts till such time the revised contract specification gets finalised. (PTI)
Wholesale inflation declines to 21-month low in November
The wholesale price-based inflation declined to a 21-month low of 5.85 per cent in November on easing prices of food, fuel and manufactured items. After remaining in double digits for 19 months, the wholesale price index (WPI) based inflation declined to 8.39 per cent in October. The inflation was 14.87 per cent in November 2021. (Read More)
Sula Vineyards IPO: Retail investors show strong demand, portion fully subscribed; check latest GMP
Sula Vineyards IPO: Retail investors so far have shown strong demand for the largest wine seller in India. Before Day 3 could end, the portion reserved for retail individuals has fully subscribed, while high-net worth investors also show healthy appetite. Overall, 88% of the IPO has been subscribed. Wednesday is the last day for Sula Vineyards IPO. In the grey market, the company traded at a premium of ₹17 per share today. (Read More)
Prabhudas Lilladher recommendations on Colgative Palmolive and Tata Power
Colgate Palmolive (CLGT IN): Rating: HOLD | CMP: Rs1,639 | TP: Rs1,639
Analyst Meet Update – Lacks Growth Triggers
CLGT Analyst meet had nothing new with focus on low-growth oral care and lack of any concrete strategy sharing to grow Personal care. CLGT Mgt highlighted four growth pillars of the future growth strategy of the company as 1) Lead toothpaste volume growth 2) Drive science led premiumisation 3) Lead category growth in toothbrush & Devices and 4) Build personal care portfolio. CLGT is looking at 1) Ramping up innovations (Max Fresh Charcoal, Visible White in Oral Beauty category and Electric Toothbrushes 2) Increasing promotion intensity and 3) sustained investments to increase presence in personal care (Face, Hand and Body care).
CLGT’s innovations in Oral care (Visible White, Power Toothbrush, Kids range) are all centric at premium end niche segments which won’t move growth needle for the company. CLGT will likely gain from any uptick in demand as naturals segment growth has now flattened (40bps share gain 10 2 years’ v/s 900bps in earlier 4 years). We believe CLGT needs to be much more aggressive in Personal care to accelerate growth. We estimate 8.1% Sales and 10.3% PAT CAGR over FY23-25 assuming 4.3% decline in FY23 EPS. Although CLGT’s growth is unexciting, favorable financial parameters (37.1x Sep’24 EPS, 2.2% Dividend yield, 90%+ payout and ~80% ROCE) limit downside. We value CLGT at 37x Sep’24 EPS and assign a Target of ₹1639 (NO CHANGE). Downgrade to HOLD.
TATA POWER: BUY CMP: 222 TRGT: 244 SL: 214
The stock after the short correction has attained the trendline support zone of 215 levels and has witnessed a pullback to come inside the channel pattern on the daily chart to improve the bias and anticipate for further rise in the coming days. With a move past the significant 50EMA level of 225, the trend would be further strengthened to expect targets of 240-244 in the coming days. With the risk reward ratio favorable, we recommend a positional buy in this stock for an upside target of 244 keeping a stop loss of 214.
Yes Bank share price down 5%, Morgan Stanley gives an underweight rating
Yes Bank’s asset quality has improved since the NPA crisis in 2020. The two new CEOs since January 2019 at the bank – Ravneet Gill and Prashant Kumar – have helped the bank fix its governance framework while adequately providing for legacy stressed assets, said Morgan Stanley in its latest report.
“We expect strong cyclical improvement over the next few years. Having cleaned its balance sheet, we expect Yes Bank’s loan growth and margin profile to improve as the macro recovery gains pace. Yes Bank’s recent strategic decision around the sale of stressed assets to asset reconstruction company (ARCs) will help clean up its balance sheet,” said the report by Morgan Stanley’s Research team. (Read More)
IDBI Bank disinvestment: Govt extends bid submission deadline till 7 January
The Centre has extended the deadline to submit preliminary bids for the IDBI Bank privatization to 7 January on Wednesday. The government and LIC together are looking to sell 60.72% of IDBI Bank and had invited bids from potential buyers in October. The last date for submission of the initial bids was 16 December. Also, the last date for submission of physical copies of the EoIs has been extended to January 14, from December 23. (Read More)
Nestle India sinks 1.5% in an otherwise bright day and drags the FMCG index
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U.S., UK export controls hit China’s access to Arm’s chip designs – FT
Chinese tech giant Alibaba Group Holding Ltd cannot buy some of the most advanced chip designs after the SoftBank-owned British chip tech firm Arm Ltd determined that U.S. and Britain would not approve licences to export technology to China, the Financial Times reported on Wednesday.
This is the first known time that Arm has decided it could not export its most cutting-edge designs to China, the report said, citing people familiar with the matter.
The British chip tech firm concluded that the U.S. and UK would not approve the sale of its latest Neoverse V series because the performance was too high, the report added
Alibaba and Arm did not immediately respond to Reuters’ request for comment.
The development comes two months after the U.S. published a sweeping set of export controls, including a measure to cut China off from certain semiconductor chips made anywhere in the world with U.S. tools, vastly expanding its reach to slow Beijing’s technological and military advances. (Reuters)
Mahindra to set up ₹10,000 crore EV plant in Pune
Indian automaker Mahindra and Mahindra Ltd said on Wednesday it would invest 100 billion rupees ($1.21 billion) to set up an electric vehicle manufacturing plant in Pune as part of its aggressive push in the country’s EV space.
India’s car market is tiny compared to its population, with electric models making up just 1% of the total annual car sales of about 3 million, but the government wants to grow this to 30% by 2030. (Read More)
Noon Update: Indices remain strong as Sensex trades above 62,700 and Nifty above 18,650
All sectoral indices but FMCG have gained in today’s trading with Realty, Media, IT and Metal leading the rally.
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Two of this year’s biggest Japan IPOs set for stock-market debut
Shares of two of Japan’s largest initial public offerings this year jumped in Tokyo after both companies successfully priced shares at the top of the marketed range.
Daiei Kankyo Co. Ltd., which offers waste recycle and treatment services, gained as much as 37% in early trading, to as high as 1,850 yen. The IPO raised about 43.3 billion yen ($315 million). Once bankrupt Japanese discount carrier Skymark Airlines Inc., traded as high as 1,280 yen, or 9.4% above the listing price. The company is returning to the exchange after raising 32.5 billion yen. (Read More)
Paytm shares slump over 2% after buyback announcement
Shares of One97 Communications, parent of Paytm, fell more than 2% to hit an intraday low of ₹525.05 apiece in early deals on Wednesday, a day after the company approved its first ever share buyback worth up to ₹850 crore. The board of the company has approved the buyback at 810 rupees each, a massive 62% discount to the IPO price of 2,150 rupees, but at a 50% premium to Tuesday’s closing price.
On Wednesday, the stock had opened at ₹544, but soon fell weighing on hopes of shareholders and market participants who were expecting a rally in the company’s stock price after the buyback announcement. (Read More)
NTPC jumps 2% in today’s session, amongst the biggest gainers
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Bitcoin hits highest level in a month thanks to rosier-than-expected US inflation; eyes on Fed meet
The largest cryptocurrency Bitcoin is in a super rally on Wednesday, touching its highest level in a month thanks to significant cooling in US inflation data. Broadly, crypto markets are on a bull run with the focus now shifting toward the FOMC policy meeting. Bitcoin which holds dominance in the crypto market moved closer to the $18,000 mark with weekly performance further improving. Also, with a rosier-than-expected inflation print, Bitcoin snapped its seven days of losing streak. Other counterparts such as Ether, Binance, XRP, and Dogecoin have also witnessed an upside in the last 24 hours. (Read More)
Smallcap textile share turns ex-date for both 9:1 bonus issue and 10:1 stock split
Textile fabrics manufacturer, Alstone Textiles (India) shares on Wednesday turned ex-bonus and ex-stock split ahead of the record date. The shares were near ₹169.85 apiece on December 13 before correcting into the said corporate actions. The ex-date is the day when the price of equity shares of a company gets adjusted for corporate decisions like bonus issues, stock splits, or dividend payout. Overall, the sentiment in Alstone is positive on BSE and its trading at the upper circuit.
At around 10.07 am, Alstone stock traded at the 5% upper circuit of ₹1.75 apiece. The stock stayed on the upper circuit as of now. After turning ex-bonus and ex-split, the stock’s 52-week high is ₹3.48 apiece and the 52-week low is ₹0.15 apiece on BSE. Its market cap is over ₹223 crore. (Read More)
Realty Index surges 1.5% in today’s trading; most stocks trading in green
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HDFC Bank to acquire 7.75% stake in fintech start-up Mintoak
HDFC Bank has acquired a minority stake in fintech start-up Mintoak for a cash consideration of ₹31.1 crore, the bank said in a regulatory filing today.
“We wish to inform you that HDFC Bank Limited has executed agreements on December 13, 2022 to subscribe to 21,471 fully paid up Compulsory Convertible Preference Shares (“CCPS”) of face value of ₹20 each at a premium of ₹9,711 for an aggregate consideration of ₹9,731 per CCPS to be issued by Mintoak Innovations Private Limited and to purchase 10,538 fully paid up Equity Shares of face value of ₹10 each at a premium of ₹9,721 for an aggregate consideration of ₹9,731 per Equity Share from certain existing shareholders of Mintoak,” HDFC Bank informed via a regulatory filing. (Read More)
Binance sees withdrawals of $1.9 bn in last 24 hours, data firm Nansen says
Binance, the world’s biggest crypto exchange, saw withdrawals of $1.9 billion in the last 24 hours, blockchain data firm Nansen said on Tuesday, as the platform said it had “temporarily paused” withdrawals of the USDC stablecoin.
The $1.9 billion figure marks the largest daily outflow since at least June, the Nansen data showed, and accounted for the majority of the $2.2 billion in etheruem-based withdrawals during the last seven days. (Read More)
GMR Hyderabad International Airport raises ₹1,150 crore via NCD issuance
GMR Hyderabad International Airport Limited (GHIAL), a subsidiary of GMR Airports Limited and a step-down subsidiary of GMR Airports Infrastructure Limited (formerly known as GMR Infrastructure Limited (GIL)), announced that it had on December 13, 2022, successfully raised funds through the issuance of 10 year Listed, Rated, Redeemable, Secured Non Convertible Debentures (NCDs) amounting ₹11.50 billion, on private placement basis. The NCDs will be listed on BSE Limited. (Read More)
Hindalco going strong in today’s session, gains 2% in early trade
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Rupee falls 4 paise to 82.64 against US dollar
The rupee depreciated 4 paise to 82.64 against the US dollar in early trade on Wednesday as a strengthening greenback overseas and risk-off sentiment among investors ahead of the US Fed’s interest rate decision weighed on the local unit.
However, a firm trend in domestic equities supported the domestic currency, forex dealers said.
At the interbank foreign exchange, the domestic unit opened flat at 82.60 against the dollar, then lost some ground to quote at 82.64, registering a decline of 4 paise over its previous close.
In early deals, the rupee was moving in a tight range of 82.60-82.65. (PTI)
Bank Nifty hits 44,000 for first time
Bank Nifty surged to a record high, lifted by strong global equities sparked by a cooler-than-expected consumer price increase in the US. Bank Nifty hit the 44,000 level for the first time as financials continued their recent outperformance. At 9:40 am, Bank Nifty index was up 0.35% at 44,089. (Read More)
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Adani Transmission incorporates Adani Cooling Solutions
Adani Transmission on Tuesday said it has incorporated a wholly-owned subsidiary Adani Cooling Solutions Ltd.
According to a regulatory filing, the subsidiary was incorporated on Monday with an initial authorised and paid up share capital of ₹1,00,000 each, for the purpose of carrying on District Cooling System business.
The entity will commence its business operations in due course, it added. (PTI)
Positive global cues lifts IT Index with all stocks trading in green
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TVS Motor to launch Euro-5 emission norms compliant two-wheelers in Turkey
TVS Motor Company on Tuesday said it plans to launch Euro-V emission norms-compliant two-wheelers in Turkey.
The company said it plans to introduce Euro 5 compliant products like Jupiter, NTORQ Race Edition, Raider and Apache RTR 200 4V in the market.
In consideration of environmental protection and taking care of the well-being of people of Turkey, the Turkey government has regulated adherence to Euro-5 emission norms, the company said in a statement.
The company awaits approval from European Union/local authorities to…
Read More: Stock Market LIVE: Indices pare gains, Sensex up 100 pts; IT, Metal shine