[vc_row][vc_column][vc_column_text css=”.vc_custom_1635509057723{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: #eaeaea !important;border-left-color: #161616 !important;border-left-style: solid !important;border-right-color: #161616 !important;border-right-style: solid !important;border-top-color: #161616 !important;border-top-style: solid !important;border-bottom-color: #161616 !important;border-bottom-style: solid !important;border-radius: 3px !important;}”]
Market Today with EZWealth – 29 Oct 2021
[/vc_column_text][vc_separator][vc_single_image image=”68136″ img_size=”full” alignment=”center”][vc_column_text]Shaktikanta Das reappointed as RBI Governor for three more years
The government has reappointed Shaktikanta Das as the Reserve Bank of India’s (RBI) governor for three more years. The re-appointment is effective from December 10, or until further orders, whichever is earlier. The decision was approved by the appointments committee of the cabinet late on Thursday.
“The Appointments Committee of the Cabinet has approved the reappointment of Shaktikanta Das as Reserve Bank of India Governor for a period of three years beyond 10.12.2021 or until further orders, whichever is earlier,” an official statement stated.
Shaktikanta Das has vast experience in various areas of governance and has held important positions in the Central and State Governments in the areas of Finance, Taxation, Industries, Infrastructure, etc. He is a postgraduate from St. Stephen’s College, Delhi University.
Sugar output pegged lower by 2.2% for 2021-22 season: ISMA
India’s sugar production is pegged lower by 2.18 per cent to 30.5 million tonnes in the ongoing 2021-22 season, as a record 3.4 million tonnes of sugar will get diverted towards production of ethanol, the Indian Sugar Mills Association (ISMA) said on Thursday. The country will need to continue exporting about 6 million tonnes of surplus sugar in the 2021-22 season (October-September), it added. Sugar output was at 31.18 million tonnes in the 2020-21 season.
India’s April-September fiscal deficit touches $70.4 billion
India’s federal fiscal deficit during April-September, the first half of the current fiscal year, stood at 5.27 trillion rupees ($70.4 billion) or 35% of the budgeted target for the whole year, government data showed on Friday. Net tax receipts were 9.2 trillion rupees while total expenditure was 16.3 trillion rupees, the data showed.
CAIT pegs Rs 50,000 cr losses to Chinese exporters this Diwali
Trader’s body CAIT on Friday said it estimates Chinese exporters to suffer business losses worth Rs 50,000 crore this Diwali season due to its boycott call. The Confederation of All India Traders (CAIT) also expects that consumers may spend about Rs 2 lakh crore during the Diwali festival sale period.
“Like previous year, this year too CAIT has given a call of ‘boycott Chinese goods’ and it is certain that China is going to suffer a business loss of about Rs 50,000 crore in terms of stoppage of import of chinese goods by Indian traders,” CAIT stated. CAIT Secretary General Praveen Khandelwal said a recent survey conducted by the body’s research arm in 20 ‘distribution cities’ showed that so far no orders for Diwali goods, firecrackers or other items have been placed with Chinese exporters by Indian Traders or Importers
Realty sector heading into best of times, focus on execution, Deepak Parekh tells developers
Housing affordability, liquidity conditions led by record-low interest rates and the desire among prospective homebuyers have never been at the levels being witnessed at present across India and the property sector stakeholders need to make the best of this, said Deepak Parekh, Chairman of the country’s largest private mortgage lender, Housing Development Finance Corporation (HDFC).
According to Parekh, he has not seen this kind of scenario in over 50 years of his work life. However, he also advised them to tread with caution, focus on execution and avoid repeating mistakes such as over-leveraging. India, according to him, does not have housing bubble troubles at present as the inherent housing demand remains immense and concerted efforts have been made to ensure supply at the right price points to meet the needs of various income groups.
Nykaa IPO oversubscribed by 3.87 times on Day 2, QIB portion booked 3.92 times
Falguni Nayar-promoted and private equity firm TPG-backed FSN E-Commerce Ventures’ maiden public offer was oversubscribed by 3.87 times on October 29, the second day of bidding. The offer closes on Monday. Investors have put in bids for 10.25 crore equity shares against an offer size of 2.64 crore equity shares, the subscription data showed.
Retail investors subscribed for 6.15 times the portion reserved for them and employees have put in bids 1.07 times the portion set aside for them. Qualified institutional investors have bought shares 3.92 times their reserved portion, and a part earmarked for non-institutional investors was subscribed 2.35 times. The Nykaa and Nykaa Fashion operator intends to garner Rs 5,351.92 crore through the public issue, of which it mobilised Rs 2,396 crore from anchor investors on October 27. The offer comprises a fresh issue of Rs 630 crore and an offer for sale of Rs 4,721.92 crore worth of shares by the promoter and investors.
PM Jan Dhan Yojna accounts swell to 44 crore till October this year
Bank accounts under Pradhan Mantri Jan Dhan Yojna (PMJDY) have increased to 44 crore in over 7 years till October 2021, a finance ministry official said on Friday. The PMJDY was announced by Prime Minister Narendra Modi in his Independence Day address on August 15, 2014, and was simultaneously launched on August 28, 2014, to foster financial inclusion. This national mission was launched to ensure people have access to financial services, namely, banking, remittance, credit, insurance, pension in an affordable manner. Speaking at an Assocham event on ‘National E-Summit on Financial Inclusion – Roadmap for An Inclusive Bharat’, Department of Economic Affairs Economic Advisor Manisha Sensarma said the PM Jan Dhan Yojna has seen immense success since its launch.
Azim Premji donated Rs 27 cr per day in FY21, retains top giver rank
Software exporter Wipro’s Azim Premji donated Rs 9,713 crore or Rs 27 crore a day to retain his top rank among Indian philanthropists in FY21. Premji, the founder chairman of the company, increased his donation by nearly a fourth during the pandemic year, as per the Edelgive Hurun India Philanthropy List 2021, which had HCL’s Shiv Nadar at second place with contributions of Rs 1,263 crore towards upliftment causes.
Mukesh Ambani of Reliance Industries, India’s richest man by a distance, came third on the list with a Rs 577 crore contribution and was succeeded by Kumar Mangalam Birla with Rs 377 crore. The second richest Indian Gautam Adani is eighth on the givers’ list with a donation of Rs 130 crore towards disaster relief. Infosys co-founder Nandan Nilekani’s ranking improved to fifth with a Rs 183 crore donation with societal thinking being identified as the primary cause.
COVID-19 can be transmitted by fully vaccinated people at home: Lancet study
Fully vaccinated people can contract and pass on Delta variant of SARS-CoV-2, the virus that causes COVID-19, in household settings, but at lower rates than unvaccinated people, according to a study published in The Lancet Infectious Diseases journal. Researchers led by Imperial College London, UK, found that vaccinated people clear the infection more quickly, but the peak viral load among them is similar to that seen in unvaccinated individuals, which may explain why they can still readily pass on the virus at home.
The researchers noted that most COVID-19 transmission is known to occur in households yet there is limited data on the risk of transmission of the Delta variant from vaccinated people with asymptomatic or mild infections in the community.[/vc_column_text][vc_column_text css=”.vc_custom_1635509185235{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: #eaeaea !important;border-left-color: #161616 !important;border-left-style: solid !important;border-right-color: #161616 !important;border-right-style: solid !important;border-top-color: #161616 !important;border-top-style: solid !important;border-bottom-color: #161616 !important;border-bottom-style: solid !important;border-radius: 3px !important;}”]
Stocks in the news
[/vc_column_text][vc_column_text]Tata Motors on Thursday unveiled 21 new commercial vehicles, including trucks and buses, to cater to evolving needs of cargo and people transport across segments. The company has unveiled seven products in the medium and heavy commercial vehicles (M&HCV) segment and five products in the intermediate and light commercial segment (4-18 tonne GVW) with CNG powertrains. Besides, the auto major has unveiled four new LCVs (Light Commercial Vehicles) to improve last-mile delivery efficiency and reduce operational cost. It includes Ace with a petrol engine and Winger Cargo for the growing needs of e-commerce distribution. Tata motors also unveiled five passenger commercial vehicles including buses for intra-city transportation requirements.
Dalmia Cement will set up a 2 million tonne plant at Jharkhand’s Bokaro at an estimated cost of Rs 577 crore, the Jharkhand government said on Friday. The Jharkhand government has ensured allotment of land for the cement plant, a statement from the state government said. The cement maker had expressed commitment in this regard during the Jharkhand Industrial and Investment Promotion Policy (JIIPP) 2021 in New Delhi on August 28, launched by Chief Minister Hemant Soren.
The Railway Board and top officials from the Indian Railway Catering and Tourism Corp Ltd (IRCTC) are scheduled to meet on October 29 at 4 pm to discuss the withdrawal of the revenue sharing model for IRCTC’s convenience fee. The update comes after Tuhin Kanta Pandey, Secretary at the Department of Investment and Public Asset Management (DIPAM). He said that the government would withdraw its decision to share revenues from the convenience IRCTC earns on tickets booked through its online portal.
JK Tyre’s net profit declined 41 per cent to Rs 64.96 crore for the second quarter ended September on the back of rising input costs. Revenue from operations rose 31 per cent to Rs 2,986.66 crore year-on-year. Raghupati Singhania, chairman and managing director, said: “The sales in the replacement market registered healthy growth whereas institutional sales recorded a quantum jump in the quarter.”
Lupin reported a consolidated net loss of Rs 2098.04 crore in Q2 September 2021 as against net profit of Rs 211.02 crore in Q2 September 2020. On a consolidated basis, net sales rose 5.86% to Rs 4003.42 crore in Q2 September 2021 over Q2 September 2020. Pre-tax loss stood at Rs 2204.78 crore in Q2 September 2021 as against pre-tax profit of Rs 360.21 crore in Q2 September 2020. EBITDA rose 3.7% to Rs 628.50 crore in Q2 September 2021 over Q2 September 2020. EBITDA margin stood at 15.7% in Q2 September 2021 lower than 16% in Q2 September 2020. EBITDA for Q2 FY2022 includes an adverse impact of about 80 bps for one-time costs related to US specialty restructuring.
SBI Cards and Payment Services (SBI Card) on Thursday reported a 67 per cent jump in net profit at Rs 345 crore for the September quarter on the back of good growth in retail and corporate spends. The pure-play credit card company had registered a net profit of Rs 206 crore in the same period a year ago. Total income increased by 7 per cent to Rs 2,695 crore during July-September period of FY22, from Rs 2,510 crore in Q2 FY21. The increase is primarily due to higher income from fees and services during the quarter, SBI Card said in a release. The company’s finance cost fell by 4 per cent in the reported quarter to Rs 254 crore from Rs 264 crore. However, total operating cost went up by 25 per cent to Rs 1,383 crore.
Bajaj Finserv rose 1.25% to Rs 18238.20 after the company reported 13.8% rise in consolidated net profit to Rs 1,122.13 crore on a 19.6% increase in total income to Rs 18,008.22 crore in Q2 FY22 as compared with Q2 FY21. Profit before tax in Q2 FY22 stood at Rs 2,792.28 crore, up by 29.5% from Rs 2156.60 crore in Q2 FY21. Bajaj Finserv is the holding company for the various financial services businesses under the Bajaj group. BFS participates in the financing business through its 52.65% holding in Bajaj Finance (BFL) and in the protection business through its 74% holding in two unlisted subsidiaries, Bajaj Allianz General Insurance Company (BAGIC) and Bajaj Allianz Life Insurance Company (BALIC). Bajaj Housing Finance (BHFL), which does mortgage business and Bajaj Financial Securities (BFinsec), which does broking business, are wholly-owned subsidiaries of Bajaj Finance. Bajaj Finance (BFL) recorded 53% rise in consolidated net profit to Rs 1,481 crore on a 19% increase in total income to Rs 7,732 crore in Q2 FY22 as compared with Q2 FY21. The rise in net profit was mainly on account of robust AUM growth, higher net interest income and better portfolio performance.
UCO Bank on Thursday reported a multifold 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 had 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, the lender said in a regulatory filing. Reserve Bank of India (RBI) had recently removed UCO Bank from its prompt corrective action (PCA) framework following improvement in various parameters.
Reliance Jio has paid Rs 10,792 crore to the Department of Telecommunications (DoT) for 269.2 MHz of spectrum it acquired in 2016. While Jio had made upfront payments, it has dues of Rs 15,000-16,000 crore towards spectrum it acquired in 2014 and 2015. Jio will have to inform the DoT by Friday whether it wants a moratorium for the balance payments.
The Supreme Court has set aside the Delhi High Court order, which had permitted Bharti Airtel to claim refund of Rs 923 crore of goods and services tax (GST) from the government. The telecom operator claimed that it had paid an excess GST for July-September, 2017 and wanted to rectify its relevant returns for that period to get the refund. The company had pleaded that it had paid more taxes since the GST system faced technical glitches that time because of which it could not correctly estimate its input tax credit.
Dr Reddy’s Laboratories on October 29 declared its financial results for the second quarter ended September 30, 2021. The company reported a consolidated profit after tax (PAT) of Rs 992 crore for the quarter, up 30% from Rs 762 crore reported in the corresponding period last year (adjusting for extra ordinaries of Rs 78 crore, the adjusted profit is Rs 840 crore). Sequential growth in profit is 74% from Rs 571 crore in the quarter ended June 30, 2021. The revenues came in higher by 18% at Rs 5,763 crore for the quarter, compared to Rs 4,897 crore in the same period last year. Sequentially, the consolidated revenue increased by 17% from Rs 4,919 crore reported in the previous quarter. The revenues are higher due to growth in its generics business which grew 19% y-o-y across geographies and strong growth in its proprietary business which had a robust growth of 195% on an annualized basis albeit on a low base.
Torrent Power: Net Sales at Rs 3,647.62 crore in September 2021 up 16.58% from Rs. 3,128.73 crore in September 2020. Quarterly Net Profit at Rs. 367.35 crore in September 2021 up 82.91% from Rs. 200.84 crore in September 2020. EBITDA stands at Rs. 974.39 crore in September 2021 up 30.18% from Rs. 748.49 crore in September 2020. Torrent Power EPS has increased to Rs. 7.64 in September 2021 from Rs. 4.18 in September 2020.
Zydus Wellness: Net Sales at Rs 383.65 crore in September 2021 up 12.18% from Rs. 341.99 crore in September 2020. Quarterly Net Profit at Rs. 21.47 crore in September 2021 up 120.38% from Rs. 105.34 crore in September 2020. EBITDA stands at Rs. 33.90 crore in September 2021 up 13.26% from Rs. 29.93 crore in September 2020. Zydus Wellness EPS has increased to Rs. 3.37 in September 2021 from Rs. 18.14 in September 2020.
IDBI Bank: Net Interest Income (NII) at Rs 1,860.03 crore in September 2021 up 9.21% from Rs. 1703.2 crore in September 2020. Quarterly Net Profit at Rs. 599.58 crore in September 2021 up 80.25% from Rs. 332.63 crore in September 2020. Operating Profit stands at Rs. 1,230.35 crore in September 2021 down 3.05% from Rs. 1,269.00 crore in September 2020. IDBI Bank EPS has increased to Rs. 0.55 in September 2021 from Rs. 0.32 in September 2020.
KPR Mill: Net Sales at Rs 1,211.34 crore in September 2021 up 28.6% from Rs. 941.92 crore in September 2020. Quarterly Net Profit at Rs. 242.22 crore in September 2021 up 115.23% from Rs. 112.54 crore in September 2020. EBITDA stands at Rs. 366.24 crore in September 2021 up 84.02% from Rs. 199.02 crore in September 2020. KPR Mill EPS has decreased to Rs. 7.04 in September 2021 from Rs. 16.36 in September 2020.
Kolkata-based FMCG major Emami Ltd on Friday reported a 56 per cent jump in consolidated profit after tax at Rs 185.25 crore in the second quarter ended September on the back of higher revenue and cost optimisation measures. The company had posted a consolidated profit after tax of Rs 118.45 crore in the second quarter last fiscal, Emami said in a regulatory filing. Consolidated revenue from operations during the second quarter stood at Rs 788.84 crore as against Rs 734.82 crore in the year-ago quarter, it added. Emami said its board of directors in a meeting held on Friday has declared payment of 400 per cent interim dividend at Rs 4 per equity share of Re 1 each fully paid-up for the financial year 2021-22.[/vc_column_text][/vc_column][/vc_row]