The minutes from the mid-December meeting show that Fed officials remained determined to keep rates high. The number of job openings in November in the US was higher than expected which can keep the inflation high but also bolsters the hopes that the economy can avoid sliding into a recession.
Bajaj Finance along with Bajaj Finserv tank in early trading with a drop of 5% and 2%, respectively
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Oil Claws Back Some Losses After Slump as Demand Concerns Linger
Oil rose amid broader market gains after tumbling around 9% over two sessions, with demand concerns continuing to hang over the market.
West Texas Intermediate futures climbed above $73 a barrel after capping the biggest two-day decline since March. A surge in Covid-19 cases across China is clouding the near-term demand outlook, overshadowing optimism commodity consumption in the world’s top importer will eventually rebound.
The gloomy start to the year has been exacerbated by thin liquidity, which has left oil futures prone to wild price swings. Investors are also weighing cautious commentary from the Federal Reserve meeting last month, which affirmed its resolve to bring down inflation without slowing the economy too much. (Bloomberg)
Indices open flat with Bajaj Finserv and Bajaj Finance dragging the market
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India awards mobility firms $362 million in e-bus contracts
Ashok Leyland’s Switch Mobility, JBM Auto and PMI Electro Mobility are the winners in a 30 billion Indian rupee ($362.40 million) tender run by state-run Convergence Energy Services Ltd (CESL), two sources said.
Switch Mobility emerged as the lowest bidder to supply 2,600 electric buses in three states, JBM Auto for 1,781 e-buses in three states, and PMI Electro quoted the lowest figure to supply 2,080 electric buses in two states, the sources said.
The companies did not immediately respond to queries sent by Reuters.
A senior CESL official, who did not want to be named, said the exact quantities being awarded to the three companies would be known by Friday.
CESL, which aggregates demand from states for electric buses, issued the tender on Sept. 21 last year as it sought to supply 6,465 e-buses for six states. (Reuters)
Tata Motors, Ashok Leyland among 7 Indian auto stocks to buy as Jefferies sees strong returns in 2023
The Indian auto sector is poised to deliver strong stock returns in 2023, in Jefferies’ view. Demand is recovering from its worst slowdown in decades, and the global brokerage expects 12-18% volume CAGR for PVs, 2Ws and trucks over FY23-25E and Strong top-line growth along with improving margins should fuel double-digit EPS CAGR for most OEMs, it said.
Electrification is picking up, with TVS Motor and Tata Motors leading among incumbents. TVS, Maruti, Tata Motors and Eicher Motors are Jefferies preferred buys in the Indian auto stocks. (Read More)
Sensex preopens with some minor gains; Marico, RIL, NTPC, DMart in focus for today’s trading
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Reliance Securities Stock to Focus for Today: Voltas
STOCK IN FOCUS
Voltas (CMP 806) – Considering the decent earnings growth, higher volume and improved business visibility over the medium term, we have our BUY rating on the stock, with a Target Price of Rs1,065.
Intraday Picks
DIVISLAB (PREVIOUS CLOSE: 3,435) BUY
For today’s trade, long position can be initiated in the range of Rs3,431-
3,415 for the target of Rs3,525 with a strict stop loss of Rs3,380.
BAJAJ-AUTO (PREVIOUS CLOSE: 3,553) SELL
For today’s trade, short position can be initiated in the range of Rs3,569-
3,584 for the target of Rs3,490 with a strict stop loss of Rs3,622.
SBICARDS (PREVIOUS CLOSE: 784) SELL
For today’s trade, short position can be initiated in the range of Rs789-
793 for the target of Rs767 with a strict stop loss of Rs803.
Salesforce to cut 10% of workforce after hiring ‘too many people’
Salesforce Inc said it plans to cut jobs by 10% and close some offices, after rapid pandemic hiring left it with a bloated workforce amid an economic slowdown. The cloud-based software firm said on Wednesday the job cuts would lead to about $1.4 billion to $2.1 billion in charges, while only about $800 million to $1 billion will be recorded in the fourth quarter. (Read More)
Stocks to Watch: Marico, RIL, GAIL, Ashok Leyland, DMart, NTPC, HPCL, RBL Bank, Coal India, IRB Infra, and Aurobindo Pharma
Supreme Infrastructure India stock will be in focus today as it will be declaring the December quarterly results. Indices put a halt to their winning streak on Wednesday as they shed around a per cent. (Read More)
Cryptocurrency prices today: Bitcoin, ether, dogecoin rise over 2%; Solana, Litecoin slip
Bitcoin price today rose with the world’s largest and most popular digital token trading over a per cent higher at $16,827. Overall, the global cryptocurrency market cap today remained below the $1 trillion mark, even as it rose 2% in the last 24 hours to $855 billion, as per the data by CoinGecko.
On the other hand, Ether, the coin linked to the ethereum blockchain and the second largest cryptocurrency, gained more than 2% to $1,253. Meanwhile, dogecoin price today was also over 2% higher at $0.07 whereas Shiba Inu gained too at $0.000008. (Read More)
D-Mart Q3 revenue rises 24.7% to ₹11,305 crore
Avenue Supermarts Ltd, which owns and operates the retail chain D-Mart, has reported a 24.7 per cent rise in its standalone revenue from operations to ₹11,304.58 crore for the third quarter ended on December 31, 2022.
The company had revenue from operations of ₹9,065.02 crore in the October-December quarter a year ago, Avenue Supermarts said in a regulatory filing on Tuesday.
“Standalone Revenue from operations for the quarter ended December 31, 2022, stood at ₹11,304.58 crore,” it said while sharing an update at the end of the quarter.
The total number of stores stood at 306 as of December 31, 2022.
In the year-ago period, Avenue Supermarts’ standalone revenue was at ₹7,432.69 crore. (PTI)
CIL, trade unions ink pact for 19 pc minimum guaranteed benefit
State-owned Coal India Limited (CIL) and trade unions have agreed to a 19 per cent minimum guaranteed benefit of the monthly emolument, benefitting 2.38 lakh non-executive workers, an official statement said on Wednesday.
In this regard, “CIL and the four central trade unions BMS, HMS, AITUC and CITU have inked a Memorandum of Understanding (MoU), recommending 19 per cent Minimum Guaranteed Benefit (MGB) for 2.38 lakh non-executive employees as part of the ongoing National Coal Wage Agreement –XI (NCWA-XI),” Ministry of Coal said in a statement.
The MoU between CIL and trade unions was signed in Kolkata on Tuesday.
The MGB of 19 per cent is on the emoluments as of June 30, 2021, which include basic pay, variable dearness allowance, special dearness allowance and attendance bonus. (PTI)
Cinemas swing between hope and jitters as big releases loom
After a forgettable 2022 that brought barely half the revenues of pre-pandemic years, the Hindi film industry is placing hopes on the first quarter of the New Year, with four big movies lined up for release.
Trade experts expect box office revenues in the March quarter to be up 10-15% from a year ago when many theatres remained shut as the third wave of the pandemic swept the country. (Read More)
Reliance eyes green energy: Mukesh Ambani to pass the buck to Akash-Anant-Isha for $75-billion investment
Mukesh Ambani, the billionaire chairman of Reliance Industries Ltd., will be focusing his attention on the Indian conglomerate’s pivot to green energy, according to people familiar with the matter, after putting his children in charge of other businesses.
The 65-year-old will oversee strategy, including the building of gigafactories and blue hydrogen facilities, will assess acquisition targets, and is talking to potential investors, the people said, asking not to be named as the information isn’t public. Ambani last year unveiled plans to spend $75 billion on clean energy projects over the next 15 years. (Read More)
Amazon to cut 70% more jobs than previously planned
Amazon.com Inc. is laying off more than 18,000 employees — a significantly bigger number than previously planned — in the latest sign that a technology slump is deepening, according to the Wall Street Journal.
Amazon.com Inc’s job cuts will now impact more than 18,000 roles as part of a workforce reduction it previously disclosed, Chief Executive Andy Jassy said in a public staff note on Wednesday.
Chief Executive Officer Andy Jassy announced the cutbacks in a memo to staff Wednesday, saying they followed the company’s annual planning process. The cuts, which began last year, were previously expected to affect about 10,000 people. The reduction is concentrated in the firm’s corporate ranks, mostly Amazon’s retail division and human resources functions like recruiting. (Read More)
M&M Finance: RBI lifts restrictions on recovery via outsourcing
The Reserve Bank of India (RBI) on Wednesday lifted restrictions related to Mahindra & Mahindra Financial Services (M&M Finance) on recovery operations via third-party collection agents.
The lifting of restrictions followed submissions made by M&M Finance and its pledge to strengthen recovery practices and outsourcing arrangements, while tightening the process of onboarding third-party agents and strengthening its accountability framework, the company said in a regulatory filing. (Read More)
India OKs $2 billion incentive plan for green hydrogen industry
India has approved an incentive plan of 174.9 billion rupees ($2.11 billion) to promote green hydrogen in a bid to cut emissions and become a major exporter in the field, the information minister said on Wednesday.
The move is targeted to help India, one of the world’s biggest greenhouse gas emitters, achieve net-zero carbon emissions by 2070. Reuters reported last month about India’s plans for a green hydrogen incentive programme.
The country aims for annual production of 5 million tonnes of green hydrogen by 2030, cutting about 50 million tonnes of carbon emissions and saving one trillion rupees on fossil fuel imports, the minister, Anurag Thakur, told reporters.
“Our aim is to establish India as a global hub of green hydrogen,” Thakur said. “We will make efforts to get at least 10% of the global demand for green hydrogen (by 2030).” (Reuters)
Sah Polymers IPO: What GMP signals after closure of subscription?
After the closure of bidding for the initial public offering (IPO) of Sah Polymers Limited, all eyes are now set on the Sah Polymers IPO allotment date, which is most likely on 9th January 2022. In four days of bidding from 30th December 2022 to 4th January, the public issue worth ₹66.30 crore was subscribed 17.46 times whereas its retail portion was subscribed 39.78 times. Meanwhile, the grey market has also become volatile after the closure of Sah Polymers IPO subscription. According to primary market observers, shares of Sah Polymers are available at a premium of ₹5 in the grey market today.
Market observers said that Sah Polymers IPO grey market premium (GMP) today is ₹5, which is ₹10 lower from its Tuesday evening GMP of ₹15. They said that on Wednesday morning Sah Polymers IPO GMP was around ₹10. So, in near 36 hours, Sah Polymers IPO GMP has dipped from ₹15 to ₹5 per equity share. (Read More)
Mamaearth’s Ghazal Alagh clears air on IPO valuation concerns
Mamaearth has neither quoted nor subscribed to the valuation numbers which are doing the rounds on social media, co-founder of the company, Ghazal Alagh said on Wednesday, clearing the air on the firm’s valuation for its initial public offering (IPO).
Responding to social media users who had expressed concerns regarding the Sequoia- and Sofina-backed company’s valuation demand, Alagh said, “In our DRHP as is the standard practice there is no mention of valuation.” (Read More)
Wall Street stocks end higher on Wednesday after Fed meeting minutes, strong job data
Stocks on Wall Street closed broadly higher Wednesday after wavering for much of the day as investors weighed the minutes from the Federal Reserve’s latest meeting of policymakers and welcomed encouraging data on job openings.
The S&P 500 rose 0.8% after having been down 0.2% in the early going. The Dow Jones Industrial Average rose 0.4% and the Nasdaq composite added 0.7%. Small company stocks outpaced the broader market, lifting the Russell 2000 index 1.2% higher.
The Fed raised its key short-term interest rate last month for the seventh time in 2022 and signalled more hikes to come. Still, the increase was smaller than those announced after its previous four meetings, reflecting signs that inflation, while still high, has been showing signs of easing.
The minutes from the mid-December meeting show that Fed officials remained determined to keep rates high and have taken little comfort from inflation’s decline from a peak of 9.1% in June to 7.1% in November.
Stocks marched higher prior to the 2 p.m. Eastern release of the Fed minutes after the government reported that the number of job openings in November was higher than expected. While that could maintain pressure on the Fed to keep interest rates high to fight inflation, the resilience in the labour market also bolsters hopes on Wall Street that the economy can avoid sliding into a protracted recession. (AP)
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