"The lower than expected US CPI numbers have catalyzed a rally in global markets on the hope that the US Fed may go slow on rate hikes," Deepak Jasani, head of retail research at HDFC Securities Ltd., wrote in a note.
The prospect of faster monetary tightening by the Fed had stoked fears of capital outflows from riskier emerging market assets like India.
In earnings, of the 44 Nifty companies that have announced quarterly results so far, an equal number have missed and exceeded analyst estimates.
The company also announced that it is executing an export order valuing $19.76 million with the Ministry of Economy, Planning and Regional Development (MINEPAT), Cameroon for the supply of 71 nos. Earthmoving machinery for preparation of Agricultural Land for Cassava Project under Government of India Line of Credit.
Company continued to optimize cost structures and drive efficiencies across its value chain
"In the face of volatile inflation, geo-political unrest, we are conscious about our cost efficiencies and accordingly various cost-savings measures across our network continue to be implemented which has reflected in the profitability metrics," CEO Gunjan Shah says
Shares of Rossari Biotech climb as much as 7.5% to the highest level since April 18 after the company’s margins improved. The Indian specialty chemicals maker successfully navigated volatile raw material prices and increased prices in April to June.
“The management expects to achieve medium-term Ebitda margins in the range of 14%-15%, while it aims at achieving 15%-17% margins over the next two years,” Priyanka Baliga, analyst at KRChoksey Shares & Securities, writes in an Aug. 10 note
Estimates revenue growth at 25% CAGR over FY22-24 led by strong product pipeline which focuses on sustainability and the environment
Positive on R&D strength of company and will monitor margin performance in coming quarters; maintains buy with price target of Rs 1,252.
Aviation stocks gained, a day after the Civil Aviation Ministry said that domestic airfare caps will be removed.
The Union Aviation Ministry on Wednesday said that limits imposed on domestic airfares will be removed from August 31, after a span of approximately 27 months.
Shares of InterGlobe Aviation rose as much as 2.7% to Rs 2,084.6, but pared gained to trade 0.3% lower thereafter. SpiceJet Ltd rose as much as 6.9% at Rs 47.90.
"The decision to remove air fare caps has been taken after careful analysis of daily demand and prices of air turbine fuel (ATF). Stabilisation has set in and we are certain that the sector is poised for growth in domestic traffic in the near future," Aviation Minister Jyotiraditya Scindia said on Twitter.
The PSU major reported an almost three-fold rise in consolidated net profit at Rs 8,832.86 crore for the June 2022 quarter on the back of higher sales. Its revenue from operations during the April-June period increased to Rs 35,092.17 crore from Rs 25,282.75 crore a year ago.
The company's net sales in the first quarter rose to Rs 32,497.9 crore from Rs 23,293.65 crore earlier.
Its output in the April-June period rose to 159.75 million tonnes (MT) from 123.98 MT in the corresponding quarter of the previous fiscal.
The Indian rupee gains, tracking advances in other emerging-market currencies after a slower-than-expected US inflation reading for July sparked optimism over a slower pace of rate hikes. Sovereign bonds edge higher.
USD/INR drops 0.2% to 79.3750
The response was triggered with US inflation data lowering the expectations of a 75bps hike by Fed and it has come back to bets of 50bps, says Dilip Parmar, current analyst, HDFC Securities
Expect rupee to either consolidate in the month of August or it could see some kind of a strength in the coming days
Believe that 78.85-79.70 is the short-term range in which rupee could consolidate
Going ahead, the positive factors could be FIIs turning net buyers and good FDI inflows for Q1
TGV SRAAC manufactures and exports a wide range of chemical products. The company produces chlor-alkali, castor derivatives, chloromethanes, toilet soap, and fatty acids. TGV SRAAC serves manufacturing, export, pharma and health care, power, infrastructure, hospitality, and educational sectors worldwide.
Q1 Ebitda rose 23% QoQ and profit was up 16% QoQ, beating Citi’s estimates by more than 20%
While outlook for the sector has been muted in recent months, the co. recently confirmed that the city’s gas distributors have sought relief from the govt, which may consider measures to bring down the companies’ costs
Recommends overweight on IGL and underweight on Petronet LNG as a pair trade
Petronet continues to face headwinds from weakening LNG demand, which could be further compounded in the near-term by GAIL’s Russian LNG shortfall
IGL’s ~20% YTD under-performance makes risk-reward favorable, Handa writes
Edelweiss
Q1 Volumes grew 48% YoY and 2% QoQ to 7.9 mmscmd driven by its highest ever CNG volumes as Covid-led disruptions eased and new vehicle addition remained strong
Ebitda margins improved 9% YoY and 20% QoQ to Rs 9/scm helped by aggressive price hikes taken during Q1
Sees room for company to further hike prices; IGL is targeting 2x CNG stations and PNG connections in five years, which would add incremental ~5 mmscmd of volumes over four-five years
Foreign institutional investors (FIIs) were net buyers in the Indian capital market as they purchased shares worth Rs 1,061.88 crore on Wednesday, as per exchange data.
Suzlon Energy reported net income for the first quarter of Rs 2,430 crore vs. loss Rs 22.44 crore YoY.
Q1 Earnings Highlights
Revenue Rs 1380 crore, +22% YoY
Total costs Rs 1380 crore, +12% YoY
Ebitda Rs 214 crore
COMMENTARY AND CONTEXT
Q1 Profit Before Tax, One-Off Income Rs 7.21crore
Q1 One-Off Gain Rs 2,470 crore
To Raise Upto Rs 1200 crore Via Rights Issue of Shares
Co. approves transfer of stake in units Varadvinayak Renewables, Gale Green Urja, Suyash Renewables to units SWE Renewables, SWE Wind Project Services, Suryoday Renewables respectively
Co. approves sale of 51% stake in Vayudoot Solarfarms
Suzlon Energy Q1 one-off gain on extinguishing debentures, pref shares
Since refinancing exercise was completed towards end of May 2022, full impact of the same on finance cost will be seen from 2Q of FY23, CFO Himanshu Mody says in the statement
The Nifty August futures were little changed at 17,558.25, a premium of 24 points to the Nifty spot; open interest for the active contract declined 1.3% to 213,395 contracts
Out of 187 futures contracts in the NSE Nifty 500 Index, 58 saw short positioning and 47 saw long unwinding; Of the remainder, 46 contracts were for short covering and 36 were long positioning
Indraprastha Gas Ltd. and Escorts Kubota Ltd. saw significant short covering, while Tata Chemicals Ltd. and City Union Bank Ltd. saw long positioning
The rupee may gain, tracking advances in other emerging-market currencies on optimism over a slower pace of US rate hikes. Bond traders are looking ahead to India inflation data on Friday.
USD/INR dropped 0.2% to 79.5175 on Wednesday
Implied opening from forwards suggest spot may start trading around 79.17
10-year yields fell 4bps to 7.31% on Wednesday
Global funds bought Rs 24 crore of sovereign bonds under limits available to foreign investors, and withdrew Rs 123 crore of corporate debt
State-run banks bought Rs 4,003 crore of sovereign bonds on Aug. 5: CCIL data. Foreign banks bought Rs 2,590 crore of bonds
Housing Development Finance Corp., the nation’s biggest rupee-bond issuer this year, used a so-called total return swap to hedge rate risks on a debt issuance which closed last month, the people said, asking not to be identified discussing private arrangements. The lender had been primarily using overnight-index swaps before, they said.
