Jul 22, 2024, 3:29 pm IST
Economic Survey Pitches For More FDI From China
Amidst strained ties with China, the pre-budget Economic Survey on Monday made a strong case for seeking foreign direct investments (FDI) from Beijing to boost local manufacturing and tap the export market. As the US and Europe are shifting their immediate sourcing away from China, it is more effective to have Chinese companies invest in India and then export the products to these markets rather than importing from the neighbouring country, the Survey said. India faces two choices to benefit from 'China plus one strategy' - it can integrate into China's supply chain or promote FDI from China.
"Among these choices, focusing on FDI from China seems more promising for boosting India's exports to the US, similar to how East Asian economies did in the past. "Moreover, choosing FDI as a strategy to benefit from the China plus one approach appears more advantageous than relying on trade. This is because China is India's top import partner, and the trade deficit with China has been growing," it added.
Jul 22, 2024, 2:59 pm IST
Financial Sector Outlook Appears Bright, But Needs Tight Vigil On Vulnerabilities: Eco Survey
The outlook for India's financial sector appears bright, but there is a need to keep a tight vigil on vulnerabilities as India can ill-afford the over-financialisation of the economy at this stage, said Economic Survey 2023-24 tabled in Parliament on Monday. The Indian financial sector is at a "turnpike moment", it said, adding that the dominance of banking support to credit is being reduced, and the role of capital markets is rising. For a country that aspires to be a developed nation by 2047, this is a long-awaited and welcome development, it said.
"Being reliant on and exposed to the capital market, however, comes with its challenges and trade-offs. As India's financial sector undergoes this critical transformation, it must also brace for likely vulnerabilities and prepare itself with regulatory and government policy levers to intervene and hedge, as required," it said.
Jul 22, 2024, 2:39 pm IST
Massive Shift In Capital Expenditure Likely In Union Budget: Expert
The Union Budget will likely focus on expanding capital investment in several sectors, including infrastructure, construction, manufacturing and green energy, a professor of a top business school said. Finance Minister Nirmala Sitharaman will present the Union Budget in Parliament on Tuesday. Over a period of time, the central government has increased capital expenditure by around 30 per cent every year, and this year, a massive shift is expected in this regard, said Dr Trilochan Tripathy, Professor of Finance at XLRI.
“India will definitely grow at faster rate because the whole attention of the government is to promote capital expenditure... The overall capital expenditure is expected to grow about 50 per cent for the 2024-25 fiscal,” he told PTI. In the upcoming Union Budget, the finance minister is expected to set an optimistic growth target of over 7.5 per cent against the recent forecasts of 7 per cent by the International Monetary Fund (IMF) and the Asian Development Bank (ADB), he said.
Jul 22, 2024, 2:19 pm IST
Gold Prices Slip In India, July 22: Check Latest Gold Price After Decline
Gold prices in India today witnessed decline yet again for 4th consecutive day as US President Joe Biden decided to withdraw from the 2024 Presidential race. 22k gold prices today slipped by Rs 100 to Rs 67,700/10 grams and 100 grams of 22 carat yellow metal prices today slipped by Rs 1000 to Rs 6,77,000 ahead of budget 2024.
Union Finance Minister Nirmala Sitharaman on July 23 will present the Budget for the financial year 2024-25 in the Lok Sabha.
24K gold prices today fell by Rs 120 to Rs 73,850/10 grams and 100 grams of 24 carat precious metal prices slipped by Rs 1200 to Rs 7,38,500. 18k gold prices today declined by Rs 90 to settle at Rs 55,390/10 grams while 100 grams of 18 carat yellow metal prices dived by Rs 900 to Rs 5,53,900.
Jul 22, 2024, 1:45 pm IST
BigBloc Construction Ltd Approves 1:1 Bonus Issue
The Board of directors of BigBloc Construction Limited, one of the largest manufacturers of Aerated Autoclaved Concrete (AAC) Blocks, Bricks, and Panels in India has recommended issue of bonus equity shares in the ratio of 1:1 in the meeting held on July 19, 2024. The board also approved the proposal of increasing the authorised share capital of the company to Rs. 30 crore divided into 15 crore Equity Shares of Rs. 2/- each, subject to approval of the members and regulatory authorities. Mr. Narayan Saboo, Chairman, Bigbloc Construction Ltd said, “Our Company is set to bring major transformation in the AAC Block industry. Further to reward our loyal shareholders and boost liquidity, the board has recommended a bonus issue. This move will enhance our equity base and support continued growth. We anticipate sustained momentum and look forward to further achievements in the coming years.”
Jul 22, 2024, 12:45 pm IST
CIL Emerges As The Preferred Bidder For Khattali Chotti Graphite block In Alirajpur Madhya Pradesh
Coal India Limited (CIL) has successfully opened its account in domestic critical mineral asset emerging as the preferred bidder for Khattali Chotti graphite block in Alirajpur district of Madhya Pradesh. This was under tranche two forward auction held on 9 July by the Ministry of Mines. It would be CIL’s first ever non-coal mineral mining venture. CIL won the bid quoting a mining premium of 150.05 percent of the value of mineral despatch, which it would pay to the State of MP. With this, CIL is poised to play a supporting role in critical minerals domestically. Based on five bed rock samples from the Khattali Chhoti block, the fixed carbon ranges from 1.99% to 6.50 %. The total area of the block is nearly 600 hectares.
Jul 22, 2024, 12:18 pm IST
Happiest Minds Wins the AIM 50 Best Firms For Data Scientists To Work For 2024
Happiest Minds Technologies Limited (NSE: HAPPSTMNDS), a ‘Born Digital . Born Agile’, Mindful IT Company, today announced that it has been recognized among the ‘50 Best Firms for Data Scientists to Work for 2024’ by Analytics India Magazine (AIM). This is the fourth consecutive year Happiest Minds has received this award. Rajiv Shah, President & Executive Board Member of Happiest Minds said, “We are happy to be among the ‘50 Best Firms for Data Scientists to Work for 2024’. This honor underscores our commitment to creating a nurturing environment for our talented team to innovate and excel. Looking ahead, we look forward to upholding our good work and making remarkable progress in the industry.”
Jul 22, 2024, 12:02 pm IST
Result Update: Tata Technologies | An Aberration And Not A Trend
Abhishek Kumar of JM Financial Institutional Securities said, “TATATECH reported a soft 1Q. Consol. revenues declined 2.5% cc QoQ, missing JMFe: +0.7%. Services revenues declined 1.3% as last leg of Vinfast ramp-down and few client specific project delays weighed. Tech services declined 7.4% QoQ (+6.4% YoY) due to seasonal weakness in products business. Management sees 1Q decline in Services as transitory. Absence of Vinfast decline and resumption of delayed projects should help accelerate sequential growth from Q2 onwards. 5 deal wins across Auto and Aerospace should help too. BMW JV, on-track to for a 2H start, should ensure consistent growth through FY25. Telengana Education deal ramp from 2Q and seasonal uptick in product revenues in 2H are further tailwinds. Resilient margins (-20bps) despite revenue decline indicate sharp cost focus. That should continue. A weaker start to the year however drives 500bps cut to our FY25E USD revenue estimate. We lower our FY25-27E margin estimates by 20-40bps driving 6% cuts to EPS. We now value the stock at 55x forward EPS, at c.10% discount to our target PER for KPIT given latter’s superior growth profile. TATATECH’s broader spectrum of offerings and structural nature of demand in end-industry keep us constructive. We maintain BUY with a revised TP of INR 1,250 (from INR 1,410).”
Jul 22, 2024, 11:33 am IST
Havells India – Lloyd Drives Topline; Consumer Spending Revival Inconclusive (Add, TP: Rs1,875)
“Havells India’s (HAVL) sales growth was healthy at 20% YoY to Rs58bn, 3% above our estimate, largely driven by Lloyd (+47% YoY) and ECD (+20% YoY led by fans and air-coolers) amid strong summer season. Gross margin rose 150bps YoY to 31.9%, but was lower than past three quarters by 100-140bps due to cost inflation and sales mix. Ad-spends were higher (+28% YoY to Rs1.7bn) at 3% of sales while staff costs rose 27% YoY to Rs4.6bn (at 7.9% of sales, up 40bps YoY). EBITDA grew 43% YoY to Rs5.8bn leading to 160bps YoY expansion in margin to 9.9%, below our estimate of 11.1%. PAT grew 43% YoY to Rs4.1bn, below our/consensus estimate of Rs4.4bn each due to operating margin miss. As per management, consumer spending is showing signs of improvement, though it is premature to determine if demand will continue to strengthen. Following rising commodity prices, HAVL undertook price hikes in majority of categories in Q1, however, it will partly reflect in Q2. We increase our FY25E/26E EPS estimates by 4%/7% and retain ADD rating on the stock with a revised target price of Rs1,875 based on 50x FY26E EPS,” Centrum Broking said in a note.
Jul 22, 2024, 11:00 am IST
Forex Market Outlook Today By Anand James, Chief Market Strategist, Geojit Financial Services
INR: The rupee fell to a record low on Friday, closing at 83.6625 against the U.S. dollar, despite likely intervention from the Reserve Bank of India. Persistent dollar bids from two large foreign banks and a decline in Asian peers pressured the currency, which was down 0.1% week-on-week.
USD: The dollar eased on Monday after U.S. President Joe Biden announced he would not seek re-election, endorsing Vice President Kamala Harris as the Democratic candidate. Meanwhile, the dollar remained steady at 7.2881 yuan in offshore trading after the People's Bank of China cut the seven-day reverse repo rate to 1.7% from 1.8%.
Jul 22, 2024, 10:29 am IST
Derivative Outlook Today By Anand James, Chief Market Strategist, Geojit Financial Services
Nifty weekly contract has highest open interest at 25500 for Calls and 23500 for Puts while monthly contracts have highest open interest at 25500 for Calls and 23500 for Puts. Highest new OI addition was seen at 26500 for Calls and 20150 for Puts in weekly and at 26500 for Calls and 20150 for Puts in monthly contracts. FIIs decreased their future index long position holdings by 4.62%, increased future index shorts by 6.79% and in index options by 46.29% increase in Call longs, 52.04% increase in Call short, 63.94% increase in Put longs and 31.10% increase in Put shorts.
Jul 22, 2024, 10:01 am IST
Nifty Outlook Today By Anand James, Chief Market Strategist, Geojit Financial Services
A marubozu lends more weight to the prospects of an extended fall that have been long in the making, as also suggested by MACD’s signal crossover attempts late last week. The first leg of downsides could ideally stretch to 23000. However, 24000 presents a convenient point for regrouping for bulls as well, during the week. For the day, a hurried entry towards 24300 or below might create a bearish exhaustion, allowing brief short covering attempts. The week’s view will stand as long as 24640 holds though.
Jul 22, 2024, 9:33 am IST
Heavyweights Drag!
Heavyweights Kotak Mahindra Bank, and Reliance Industries (RIL) dropped sharply by 2-3.5% after their Q2 results. Other stocks like L&T, IndusInd Bank, ICICI Bank, and Titan were also among top bears.
Jul 22, 2024, 9:32 am IST
Market In Opening Bell
Sensex slipped to around 80,300 after hitting an intraday low of 80,100.65, while Nifty 50 is struggling to hold 24,400 levels after it touched the day's low of 24,362.30.
Jul 22, 2024, 8:48 am IST
Nifty and Bank Nifty Forms Bearish Patterns
According to Om Mehra, Technical Analyst, SAMCO Securities, Nifty formed a bearish engulfing pattern with its open and high remaining almost identical. The daily RSI slipped from 77 to 66 levels in a day. However, Nifty is currently holding the support of a rising trendline on the daily time frame. The 10 EMA stands at 24,450, and if this level is violated there might be short-term weakness. The bullish trend would be on hold unless the Nifty crosses the 24,680 level. Bank Nifty formed a bearish harami pattern on the daily candle which indicates the short-term weakness. Bank Nifty is near its support zone which is around 52,100, and if this level is broken on a closing basis, it could extend towards the 51,700 zone. With the daily MACD indicator slightly skewed to the negative side, a sell-on-rise strategy would be suitable for the short term.
Jul 22, 2024, 8:30 am IST
Global Economic Outlook By Alex Volkov, Market Analyst At VT Markets
Fed Chair Powell's dovish tone highlighted that recent inflation figures bolster confidence in achieving the 2% inflation target, supporting the likelihood of a rate cut in September. US retail sales, excluding autos, increased by 0.4% in June, outperforming expectations, while the Retail Control group, crucial for GDP calculations, surged by 0.9%, indicating robust consumer spending. However, the US job market showed potential softening as initial jobless claims rose to 243,000, surpassing the anticipated 225,000. The European Central Bank kept interest rates unchanged, with President Lagarde emphasizing a data-driven approach for future decisions. Meanwhile, China's Q2 GDP growth slowed to 4.7% year-on-year, below the 5.1% estimate, marking the slowest growth rate since Q1 2023, with housing prices continuing to decline by 4.5% year-on-year. In the commodities market, crude oil prices dropped by 1.72% this week to .80 per barrel, ending a four-week winning streak, while gold prices increased by 1.39% to 44, hitting a new record high of 83. Market sentiment reflected heightened uncertainty as the VIX index, a gauge of market volatility, surged to 15.92 from 12.45.
Jul 22, 2024, 8:04 am IST
Key Events To Watch This Week
Alex Volkov, Market Analyst at VT Markets said, “In the week, significant economic data releases could influence market dynamics, starting with the US Q2 GDP Growth Rate on Thursday, July 25. The Q1 2024 GDP growth was revised down to 1.4%, but an improvement to 1.8% is expected for Q2, driven by strong retail sales, with the Atlanta Fed estimating an even higher growth rate of 2.5%. A strong GDP reading could delay anticipated rate cuts by the Fed. On Friday, July 26, the US Core PCE Inflation data will be released. In May, core PCE inflation remained at 2.6% year-on-year, with a modest monthly rise of 0.1%. June’s expectations are for a 0.1% month-on-month increase in headline PCE, reducing the annual rate to 2.5%, and a 0.2% month-on-month rise in core PCE, maintaining the annual rate at 2.6%. These figures are critical for the Fed’s policy decisions. Stay ahead of the game by closely monitoring these events and adjusting your strategies accordingly.”
Jul 22, 2024, 7:58 am IST
Asian Markets Slide Amid Corporate Earnings And Inflation Concerns
Asian markets traded lower on Monday, with Taiwan's index down 2% and Japan's Nikkei declining by 1%. Investors treaded cautiously ahead of a busy week of corporate earnings, which are expected to challenge the high valuations of tech stocks. Meanwhile, market participants are closely watching a crucial US inflation report, hoping it will clarify the likelihood of a rate cut in September.
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