[vc_row][vc_column][vc_column_text css=”.vc_custom_1635423535648{margin-top: 11px !important;margin-right: 11px !important;margin-bottom: 11px !important;margin-left: 11px !important;border-top-width: 3px !important;border-right-width: 3px !important;border-bottom-width: 3px !important;border-left-width: 3px !important;background-color: #e5e5e5 !important;border-left-color: #eeee22 !important;border-left-style: solid !important;border-right-color: #eeee22 !important;border-right-style: solid !important;border-top-color: #eeee22 !important;border-top-style: solid !important;border-bottom-color: #eeee22 !important;border-bottom-style: solid !important;border-radius: 3px !important;}”]
Market Today with EZWealth – 28 Oct 2021
[/vc_column_text][vc_separator][vc_single_image image=”68122″ img_size=”full” alignment=”center” css=”.vc_custom_1635423473509{margin-top: 10px !important;margin-right: 10px !important;margin-bottom: 10px !important;margin-left: 10px !important;border-top-width: 2px !important;border-right-width: 2px !important;border-bottom-width: 2px !important;border-left-width: 2px !important;border-left-color: #000000 !important;border-left-style: solid !important;border-right-color: #000000 !important;border-right-style: solid !important;border-top-color: #000000 !important;border-top-style: solid !important;border-bottom-color: #000000 !important;border-bottom-style: solid !important;border-radius: 1px !important;}”][vc_column_text]Indian utilities’ Sept coal imports at more than 7 yr-low despite call to boost shipments
Indian utilities’ coal imports fell more than 73% in September to their lowest in more than seven years due to high prices, government data showed, despite a call by the federal government to boost shipments to arrest a crippling coal shortage.
Imports by Indian utilities fell to 1.08 million tonnes in September, compared with 4.03 million tonnes in the same period in 2020 and 5.23 million tonnes in September 2019. Import data for periods preceding April 2014 were unavailable. India had urged utilities to import coal in late August as coal-fired electricity generation surged after coronavirus-related curbs were eased, with several power plants being pushed to the verge of running out of fuel.
Imports of liquefied natural gas (LNG) by utilities during the September quarter also slumped 36%, the data showed, hitting their lowest levels in three years. The drop represented the steepest monthly decline in at least three and a half years. Coal imports by power plants fell 55% during the quarter, making it the biggest fall in at least six and a half years.
Morgan Stanley downgrades Indian equities over valuations
Morgan Stanley downgraded Indian equities to equal-weight from overweight on Thursday due to expensive valuations, and said it expects the market to consolidate ahead of potential “short-term headwinds”. The brokerage said while the country’s key fundamentals are positive, at 24 times forward price-to-earnings, Indian equities could see some consolidation ahead of the Fed tapering, a likely rate hike by India’s central bank in February, and higher energy costs.
Morgan Stanley’s downgrade follows similar moves by Nomura and UBS over expensive valuations. Indian stocks have strongly outperformed other emerging markets this year, with the MSCI India index up 27.53 percent, compared to a 0.65 percent slip in the MSCI Emerging Market index. Morgan Stanley attributed the outperformance to bullish consensus earnings expectations and a “favourable” government reform agenda. The brokerage had said in an earlier report that nascent signs of capital expenditure, supportive government policy and a robust global growth outlook may result in India earnings compounding at over 20% per year for the next three-four years.
Oil plunges to 2-week low on US inventory shock, rise in COVID-19 cases
Oil prices slumped to their lowest in two weeks after official figures showed a surprise jump in U.S. inventories of crude, and rising cases of COVID-19 in Europe, Russia, and some outbreaks of infections in China dented hopes for an economic recovery. Brent crude dropped 94 cents, or 1.1%, to $83.64 a barrel by 0655 GMT, having hit a two-week low of $82.32 earlier and fallen by 2.1% in the previous session.
U.S. oil was down 89 cents, also a 1.1% drop, at $81.77 a barrel – a one-week low after dropping 2.4% on Wednesday. Outbreaks of coronavirus infections in China and record deaths and the threat of lockdowns in Russia, along with rising cases in western Europe were putting the brakes on a multi-week rally in oil prices.
Indian used car market to grow 12-14% in next few years
The Indian used car market is expected to reach a size of over 70 lakh vehicles by 2025-26, up from 38 lakh in 2020-21, growing at around 12-14 per cent over the next few years, according to a study. The pre-owned car industry is expected to clock a growth rate of 15 per cent in FY22 as the COVID-19 pandemic, digitalization, changing demographics and aspirations, first-time buyers, and availability of financing options acting as growth drivers, as per the OLX Autos-CRISIL Study 2021.
“The prospects continue to be bright on the longer horizon, with a 12-14 per cent CAGR expected over the next few years, taking the size of the market to more than 7 million vehicles by FY26, from 3.8 million units in FY21,” it added. The study found that with many people preferring socially-distanced personal mobility, during and because of the pandemic, the pre-owned car market is expected to continue to be a sunrise sector. Supply levels are slowly normalising in 2021 with improved mobility, lesser restrictions, and lower reluctance to sell vehicles, it said, adding as new car vehicle supply improves, pre-owned car supply is also increasing.
Cooking oil prices cool off ahead of festive season
Cooking oil prices in India have started cooling from the previous month’s highs, in part due to the reduction in import duty on edible oils and the Centre’s directive to the states to maintain stocks and prevent hoarding of the essential kitchen commodity.
The wholesale price of soyabean oil NSE -1.76 % has dropped to Rs 129 per litre from Rs 142 a month ago, while that of palm oil has come down to Rs 121 from Rs 130. Sunflower oil now costs Rs 138 per litre, down from Rs 147. But mustard oil prices are expected to rule firm until the new mustard crop comes in in February-March, industry executives told ET, adding that a sudden spike in prices of edible oils in the upcoming festival season is unlikely
The Centre on Monday asked the states to speed up the process of issuing stock limit notifications for edible oils in view of the upcoming festival season, which starts on November 4 with Diwali. To provide near-term relief to consumers, the government has reduced import duty on crude edible oils—first in September and then again in October this year—helping bring down to zero. This will be in effect till March 2022.
Over 100 containers fall from fire-hit cargo ship off British Columbia
More than 100 containers had fallen of a ship carrying cargo including mining chemicals that was struck by fire off the coast of British Columbia, up from a previous count of 40, Canada’s Coast Guard said on Wednesday, with the blaze under control.
The container fire broke out on Saturday on the cargo ship MV Zim Kingston. There were no reported injuries or casualties. Transport Canada inspectors will inspect the ship and then direct it to a port for unloading and any further inspections. Stormy weather in recent days had complicated efforts to recover the containers which pose a risk to mariners, according to the Coast Guard. Over 100 containers of toys, clothing, automotive parts, industrial parts and furniture went off the side of the ship when it hit rough seas near Port Angeles.
Forex reserves surge by $58.38 bn in Mar-Sep 2021 period: RBI report
The country’s foreign exchange reserves surged by USD 58.38 billion in April-September 2021 to USD 635.36 billion, says an RBI report released on Wednesday. The forex reserves were at USD 576.98 billion at end-March 2021. The Reserve Bank of India (RBI) publishes half-yearly reports on management of foreign exchange reserves. These reports are prepared half yearly with reference to the position as at end-March and end-September each year.
The report released on Wednesday is 37th in the series and is with reference to the foreign exchange reserve position as of end-September 2021. “During the half-year period under review, reserves increased from USD 576.98 billion as at end-March 2021 to USD 635.36 billion as at end-September 2021, the report said.
Anheuser-Busch InBev to enter energy drink market in India
Anheuser-Busch InBev (ABI) has extended Budweiser into the energy drinks market in India, a first for the world’s largest beer brand globally. This is part of the Belgian drink and brewing company’s wider strategy to focus on non-alcoholic and premium beverages that now accounts for over half its sales. The new product – Budweiser Beats – will compete with Red Bull, which is synonymous with energy drinks in the market.
Rival United Breweries, which owns the Kingfisher brand, is by far the leader in the beer segment in India, controlling more than half the market while AB InBev is a distant second with about 20% share. However, AB InBev has more than 65% share in the premium segment, with a portfolio that includes Stella Artois, Leffe and Corona. Rival UB too has pricier products such as Kingfisher Ultra, Storm and Heineken, and has been growing in double-digits, but these account for less than 10% of its total sales. In India, AB InBev generated 35% of its sales from premium brands until last year, which has now surged to 48%.[/vc_column_text][vc_column_text css=”.vc_custom_1635423559665{margin-top: 11px !important;margin-right: 11px !important;margin-bottom: 11px !important;margin-left: 11px !important;border-top-width: 3px !important;border-right-width: 3px !important;border-bottom-width: 3px !important;border-left-width: 3px !important;background-color: #e5e5e5 !important;border-left-color: #eeee22 !important;border-left-style: solid !important;border-right-color: #eeee22 !important;border-right-style: solid !important;border-top-color: #eeee22 !important;border-top-style: solid !important;border-bottom-color: #eeee22 !important;border-bottom-style: solid !important;border-radius: 3px !important;}”]
Stocks making news today
[/vc_column_text][vc_column_text]UCO Bank on Thursday reported multi-fold jump in net profit at Rs 205.39 crore for the second quarter ended September 2021 as bad loans fell. The Kolkata-headquartered public sector lender registered a net profit of Rs 30.12 crore in the year-ago period. Total income in July-September 2021-22 rose to Rs 4,655.86 crore from Rs 4,327.13 crore in the year-ago period, UCO Bank said in a regulatory filing. The bank improved on its bad assets significantly as gross non-performing assets (NPAs) fell to 8.98 per cent at the end of September 2021 quarter from 11.62 per cent by the same period of 2020.
Sun Pharmaceutical Industries Ltd on Thursday said it has launched its medicine ILUMYA used in the treatment of adults with moderate-to-severe plaque psoriasis in Canada. The company said ILUMYA (tildrakizumab injection) has already completed a five-year study based on a pooled analysis of two Phase 3 efficacy and safety extension trials in moderate-to-severe plaque psoriasis. The results showed that patients with moderate-to-severe plaque psoriasis maintained consistent, high levels of skin clearance and a durable safety profile through five years of continuous treatment.
Engineering major Larsen & Toubro (L&T) on Thursday said its construction arm has bagged a ’large’ order for its buildings and factories business from the Central Public Works Department (CPWD). Though the company did not specify the exact value of the contracts, as per its specification a large contract ranges between Rs 2,500 crore and Rs 5,000 crore.
United Breweries: Net Sales at Rs 1,427.01 crore in September 2021 up 58.57% from Rs. 899.90 crore in September 2020. Quarterly Net Profit at Rs. 80.38 crore in September 2021 up 2072.43% from Rs. 3.70 crore in September 2020. EBITDA stands at Rs. 169.84 crore in September 2021 up 133.75% from Rs. 72.66 crore in September 2020. United Brewerie EPS has increased to Rs. 3.04 in September 2021 from Rs. 0.14 in September 2020.
Eimco Elecon: Net Sales at Rs 10.85 crore in September 2021 down 67.59% from Rs. 33.48 crore in September 2020. Quarterly Net Profit at Rs. 1.25 crore in September 2021 down 54.77% from Rs. 2.76 crore in September 2020. EBITDA stands at Rs. 3.83 crore in September 2021 down 34.19% from Rs. 5.82 crore in September 2020. Eimco Elecon EPS has decreased to Rs. 2.17 in September 2021 from Rs. 4.79 in September 2020.
Dalmia Bharat: Net Sales at Rs 2,577.00 crore in September 2021 up 6.93% from Rs. 2,410.00 crore in September 2020. Quarterly Net Profit at Rs. 204.00 crore in September 2021 down 12.07% from Rs. 232.00 crore in September 2020. EBITDA stands at Rs. 666.00 crore in September 2021 down 10.48% from Rs. 744.00 crore in September 2020. Dalmia Bharat EPS has decreased to Rs. 10.90 in September 2021 from Rs. 12.24 in September 2020.
Lupin: Net Sales at Rs 4,091.33 crore in September 2021 up 6.68% from Rs. 3,835.00 crore in September 2020. Quarterly Net Loss at Rs. 2,098.04 crore in September 2021 down 1094.24% from Rs. 211.02 crore in September 2020. EBITDA stands negative at Rs. 1,251.04 crore in September 2021 down 306.4% from Rs. 606.13 crore in September 2020.
SIS: Net Sales at Rs 2,430.93 crore in September 2021 up 12.65% from Rs. 2,157.86 crore in September 2020. Quarterly Net Profit at Rs. 68.39 crore in September 2021 down 36.39% from Rs. 107.51 crore in September 2020. EBITDA stands at Rs. 131.47 crore in September 2021 down 32.97% from Rs. 196.14 crore in September 2020. SIS EPS has decreased to Rs. 4.65 in September 2021 from Rs. 7.33 in September 2020.
Kopran: Net Sales at Rs 127.57 crore in September 2021 up 7.2% from Rs. 118.99 crore in September 2020. Quarterly Net Profit at Rs. 17.09 crore in September 2021 up 2.77% from Rs. 16.63 crore in September 2020. EBITDA stands at Rs. 26.54 crore in September 2021 down 0.79% from Rs. 26.75 crore in September 2020. Kopran EPS has increased to Rs. 3.95 in September 2021 from Rs. 3.84 in September 2020.
Oracle Financial Services: Net Sales at Rs 1,280.97 crore in September 2021 up 6.98% from Rs. 1,197.39 crore in September 2020. Quarterly Net Profit at Rs. 447.55 crore in September 2021 up 14.15% from Rs. 392.07 crore in September 2020. EBITDA stands at Rs. 656.10 crore in September 2021 up 10.18% from Rs. 595.50 crore in September 2020. Oracle Fin Serv EPS has increased to Rs. 51.95 in September 2021 from Rs. 45.60 in September 2020.
PNB: Net Interest Income (NII) at Rs 6,549.61 crore in September 2021 down 23.48% from Rs. 8558.98 crore in September 2020. Quarterly Net Profit at Rs. 1,104.25 crore in September 2021 up 91.66% from Rs. 576.16 crore in September 2020. Operating Profit stands at Rs. 4,135.92 crore in September 2021 down 29.16% from Rs. 5,838.06 crore in September 2020. PNB EPS has increased to Rs. 1.00 in September 2021 from Rs. 0.61 in September 2020.
Tata Chemicals: Net Sales at Rs 3,022.63 crore in September 2021 up 15.84% from Rs. 2,609.35 crore in September 2020. Quarterly Net Profit at Rs. 221.16 crore in September 2021 up 213.84% from Rs. 70.47 crore in September 2020. EBITDA stands at Rs. 557.26 crore in September 2021 up 22.53% from Rs. 454.80 crore in September 2020. Tata Chemicals EPS has increased to Rs. 8.68 in September 2021 from Rs. 2.77 in September 2020.
Adani Transmission has raised USD 700 million for its under-construction transmission asset portfolio. In a regulatory filing the company said it has raised USD 700 million for its under-construction transmission asset portfolio through the definitive agreements signed with leading international banks.
SpiceJet has decreased its domestic services by 31 per cent to 2,995 weekly flights in the upcoming winter schedule as compared to 4,316 weekly flights that it got approved for the winter schedule of 2019, the aviation regulator DGCA said on Thursday. Meanwhile, Vistara, another private carrier, has increased its domestic services by 22 per cent to 1,675 weekly flights as compared to 1,376 weekly flights for 2019 winter schedule, the regulator added.
The Ministry of Railways has through a letter asked Indian Railways Catering and Transportation Corporation to share 50 per cent of the revenue from the convenience fee with it, the company said today in an exchange filing. Analysts believe that this spark a near 50 per cent cut in the earnings of IRCTC since the majority of its revenues come from internet ticketing services.
Tata Power NSE -2.79 % on Thursday reported a 51 per cent year-on-year (YoY) rise in its consolidated net profit to Rs 421.5 crore for the quarter ended September 2021. The power company’s revenue from operations in the reported quarter climbed 18 per cent on-year to Rs 9,810.2 crore.
Vedanta NSE -4.60 % Ltd on Wednesday said its arm Monte Cello BV (MCBV) has entered into a term-sheet agreement to divest Mt Lyell Copper Mine in Australia. MCBV is the 100 per cent owner of the Mt Lyell Copper Mine, a small copper asset which has been on care and maintenance for the last five years and not strategic for Vedanta with its size and country presence.
[/vc_column_text][vc_separator][vc_column_text]
Disclosure:
EZ Wealth is a Stock Broker registered with BSE, NSE and MSEI in all the major segments viz. Cash, F&O and CDS segments. EZ Wealth is also a Depository Participant and registered with both the Depositories viz. CDSL and NSDL. Further, EZ Wealth is a SEBI registered Portfolio Manager. EZ Wealth is a step-down subsidiary of Wealth Discovery Securities Pvt. Ltd (referred as ‘WDSPL’ hereafter).
This report is not to be altered, transmitted, reproduced, copied, redistributed, uploaded, published or made available to others, in any form, in whole or in part, for any purpose without prior written permission from EZ Wealth.
The projections and the forecasts described in this report are based on estimates and assumptions and are inherently subject to significant uncertainties and contingencies. Projections and forecasts are necessarily speculative in nature, and it can be expected that one or more of the estimates on which the projections are forecasts were based may not materialize or may vary significantly from actual results and such variations will likely increase over the period of time. The recipients should consider and independently evaluate whether it is suitable for its/ his/ her/their particular circumstances and if necessary, seek professional / financial advice as there is substantial risk of loss. EZ Wealth does not take any responsibility thereof. Any such recipient shall be responsible for conducting his/her/its/their own investigation and analysis of the information contained or referred to in this report and of evaluating the merits and risks involved in securities forming the subject matter of this report. The price and value of the investment referred to in this report and income from them may go up as well as down, and investors may realize profit/loss
This report has been prepared by EZ Wealth and published in accordance with the provisions of Regulation 19 of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014, for use by the recipient as information only and is not for general circulation or public distribution. The solicitation of an offer to buy, purchase or subscribe to any securities, and neither this report nor anything contained therein shall form the basis of or be relied upon in connection with any contract or commitment whatsoever. It does not constitute a personal recommendation or take into account the particular investment objective, financial situation or needs of any individual in particular. The research analysts of EZ Wealth have adhered to the code of conduct under Regulation 24 (2) of the Securities and Exchange Board of India (Research Analysts) Regulations, 2014. The recipients of this report must make their own investment decisions, based on their own investment objectives, financial situation or needs and other factors. Past performance is not a guide for future performance. Actual results may differ materially from those set forth in the projection. This report has been prepared by EZ Wealth based on the information available in the public domain and other public sources believed to be reliable. Though utmost care has been taken to ensure its accuracy and completeness, no representation or warranty, express or implied is made by EZ Wealth that such information is accurate or complete and/or is independently verified.
The contents of this report represent the assumptions and projections of EZ Wealth and EZ Wealth does not guarantee the accuracy or reliability of any projection, assurances or advice made herein. Nothing in this report constitutes investment, legal, accounting and/or tax advice or representation that any investment or strategy is suitable or appropriate to recipients’ specific circumstances. Since EZ Wealth or its associates are engaged in various financial activities, they might have financial interest or beneficial ownership in various companies including subject company/companies mentioned in the report. EZ Wealth or its associates have not received any compensation for investment any compensation including brokerage services and for products or services other than investment banking or merchant banking from the subject company in the past 12 months. It is confirmed that EZ Wealth or research analyst or its associates have not managed or co-managed public offering of securities for the subject company in the past 12 months.
Research analyst or EZ Wealth or its relatives’/associates’ have no material conflict of interest at the time of publication of this report. Neither research analyst nor EZ Wealth are engaged in market making activity for the subject company. It is confirmed that research analysts do not serve as an officer or director. No material disciplinary action has been taken on EZ Wealth by any regulatory authority impacting Equity Research Analysis activities. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. This information is subject to change, as per applicable law, without any prior notice. EZ Wealth reserves the right to make modifications and alternations to this statement, as may be required, from time to time. Research analyst or EZ Wealth or its actual/beneficiary ownership of 1% depends from case of case. It is also confirmed that research analysts have not received any compensation from the subject company in the past 12 months.
WDSPL registered address: 1206, 12th Floor, Kailash Building K.G. Marg.
Connaught Place New Delhi-110001
Tel No: 91 +11-43444-666 | 91 +11-43444-623 |
Wealth Discovery Securities Pvt Ltd – CIN: U74999DL2010PTC211626
Wealth Discovery Commodity Pvt Ltd – CIN: U74999DL2011PTC213264
SEBI-NSE-INB/F/E231435737,BSE-INB011435733/INF011435833, DP-IN-DP-CDSL-679-2013 SEBI- REG.NO- MCX & NCDEX – INZ000015731
[/vc_column_text][/vc_column][/vc_row]