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While Amisha Vohra of Prabhudas Lilladher was enthused by the resilience of local equities, having wiped out most of their post-demonetisation losses, she said the market was in no way “out of the woods”.
“The macro picture hasn’t improved much and the earnings from most of the FMCG companies highlighted the fact that there has been a demand disruption,” she told BloombergQuint in a phone conversation.
Investors have now shifted their focus to the upcoming Union Budget, which has been dubbed as a make or break one for the Modi government since it could be the last shot at any sort of big bang reforms.
However, Vohra is unsure of the government’s ability to dole out sops and incentives. “I think if you’re a long-term investor then equities remain the best asset class for you. But for traders and medium-term investor, it would be better to wait for the budget announcement and then take a call,” he advised.
Shares of the residential property developer fell as much as 3.4 percent after reporting a 36.3 percent drop in net profit for the third quarter.
The company made a net profit of Rs 15.81 crore for quarter-ended December, compared to Rs 24.82 crore in the same period last year. It clocked sales of around Rs 35.22 crore for the period in focus versus Rs 23.79 crore year-on-year.
For more details on what it means for the two companies and the sector, CLICK HERE
Shares of the flagship company of the Aditya Birla Group rose after its net profit jumped 21.9 percent during the third quarter of financial year 2016-17.
Net profit rose to Rs 331.4 crore from Rs 271.9 crore in the same quarter last year, according to the company’s filing. Analysts tracked by Bloomberg had pegged the profit at Rs 337 crore.
Total income rose 7.8 percent to Rs 2,738 .3 crore from Rs 2,540.1 crore. Other income stood at Rs 55.3 crore at the end of the quarter.
The pharmaceutical firm will acquire drugs portfolio from Mallinckrodt LLC in an all-cash deal for consideration of $171 million and up to an additional $32 million to financial performance over the next three years, according to its filing.
Shares of the non-banking financial firm gained as much as 5.7 percent to Rs 1,053 after reporting its third quarter earnings.
Management Commentary
HDFC Chairman Keki Mistry Said
A gauge of the country’s top 10 information technology firms dropped 0.5 percent, led by Mindtree and Wipro on concerns around protectionist measure by the Trump administration.
The draft of an executive order from President Donald Trump may restrict the use of work visas for outsourcing firms such as Infosys and Wipro, according to Bloomberg News.
“Our country’s immigration policies should be designed and implemented to serve, first and foremost, the U.S. national interest,” the order reads, according to draft reviewed by Bloomberg News.
Infosys, Wipro, TCS among others use H-1B visas and other programmes to bring workers to the U.S.
For a complete report on GCPL’s third quarter earnings, click HERE
Shares of the Anil Ambani-led firm gained as much as 8.2 percent intraday, the most since October 3, after it signed a contract for design and construction of 14 Fast Patrol Vessels for Indian Coast Guard.
The company won the contract, valued at Rs 916 crore, through competitive bidding process undertaken by the Ministry of Defence.
Shares of the construction major rose 1.9 percent to Rs 1,467 after reporting a 38.5 percent increase in net profit for the third quarter of the financial year 2016-17. However, the company cut its revenue growth guidance for the year to 10 percent from 15 percent.
Shares of the country’s third largest telecom operator jumped as much as 9 percent to Rs 85 amid reports of a possible merger with Vodafone. The share price of Idea Cellular has risen 24 percent since January 18.
Talks to explore a merger have been "on for some time", according to an Economic Times report citing unnamed sources. Idea's decision to postpone its January 23 meeting to consider third quarter results has added fuel to the speculation; a fresh date is yet to be set, the daily said.
Global brokerage house CLSA believes a potential merger between Vodafone India with Idea Cellular would change the industry order. The combined entity would have 43 percent revenue share in the market by FY19 against 33 percent of Bharti Airtel and 13 percent for Reliance Jio.
The merged entity will also have the highest spectrum holding across the industry.
Movers & Shakers: Bharat Electronics, Om Metals, Kalindee Rail And More
For a complete list of stocks to watch, click HERE
This is the budget week and all eyes will be on Finance Minister Arun Jaitley's proposals on February 1.
There are chances that there could be a minor fiscal slippage in the budget, and the roadmap of a 3 percent fiscal deficit target for FY18 may be revised. Still, the markets may be willing to accommodate a small change, provided the additional spending is focused on boosting growth.
India’s currency is poised to weaken past 70 per dollar this year and touch 75 at the end of 2019, according to Deutsche Bank.
India's benchmark bond yield logged its biggest weekly drop in last three weeks on optimism the government will be prudent when it presents the budget.
The Reserve Bank may give banks more time for implementing the asset quality review, PTI reported yesterday.
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The Nifty futures on the Singapore Stock Exchange, an early indicator of Nifty’s performance in India, fell 0.5 percent to 8,628.
Asian stocks declined this morning, as traders digested the tensions sparked by U.S. President Donald Trump’s order halting some immigration, a move that’s ignited opposition from world leaders.
The dollar weakened against all its major peers in early Asian trading. The Bloomberg Dollar Spot Index dropped 0.2 percent while the yen gained 0.3 percent to 114.72 per dollar.
U.S. stock futures slipped lower after the underlying gauge gained 1 percent last week. Investor sentiment was also subdued after data on Friday showed U.S. economic growth slowed sharply in the fourth quarter.
Economic growth in the world largest economy slowed more than expected in the fourth quarter, with GDP rising at a 1.9 percent annual rate following the prior quarter’s 3.5 percent gain, according to data from the Commerce Department.
Gold rose on growing haven interest, while crude dropped for the second day amid signs of increased output from the U.S.
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