Opening Bell: Sensex, Nifty extend losses after flat start; Shriram Transport Finance slips 6%

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Indian market started the week on a sombre note, failing to hold minor opening gains. The BSE Sensex slipped below 39,300 and the Nifty50 was trading below 11,800 amid uncertainty ahead of US Federal Reserve meet, rising oil prices and as US-India trade dispute dented investor appetite for equities.

The Modi government on Saturday raised custom duty on various items, including walnut and apples, exported from the US.

At 9.40 am, the Sensex was trading at 39,293, down by over 158 points, or 0.40 percent. The Nifty was down by 0.48 percent, trading almost 57 points lower, at 11,766.

Broader markets also fell with both the Nifty MidCap and BSE MidCap falling well over half a percent.

Only six sectors advanced led by Nifty Pharma which rose just half a percent, while metal, energy, oil and gas counters were the worst among 37 falling sectors.

Among gainers, Yes Bank, Bharti Infratel, Indiabulls Housing Finance, Wipro, Infosys, Power Grid, NTPC and TCS, surged by up to 1.5 percent. Among losers, JSW Steel, Vedanta, Grasim, Tata Steel, Reliance Industries, Tata Motors and Coal India, dropped by up to 2.7 percent.

Shares of Shriram Transport Finance slipped almost 6 percent after 10 percent equity worth Rs 2,305 crore was exchanged on NSE at Rs 1,000-1,023 per share. The company had bought the 10 percent stake at Rs 723 per share in 2013.

Meanwhile, the Indian rupee opened unchanged at 69.80 against the US dollar on Monday. On Friday, the home currency had closed at 69.80 against the greenback.

Also, catch all the latest market action and updates in our Live Blog.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Reliance Infra shares tank 14% post disappointing Q4 earnings

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of Reliance Infrastructure plunged 14 percent intraday after the Anil Ambani-led company reported a consolidated net loss of Rs 3,301 crore in the fourth quarter of 2018-19, its biggest ever loss.

In its press release, the company said, “Net loss is largely a result of one-time impairment of Reliance Naval and Engineering Ltd acquired  in 2016 which was already NPA (non-performing asset ) company.”

Reliance Infra shares fell as much as 14.6 percent intraday to to hit a 52-week low of Rs 50.50 per share. In last one month, the stock has tanked about 48 percent and, in last one year, it has declined over 87 percent.

At 9.51 AM, the stock price was trading at 53.90 per share, down 8.8 percent from its previous close. The Nifty 50 traded 0.5 percent lower at 11,765.30.

The company during the quarter undertook write-offs and impairment of over Rs 8,500 crore. The write-off also includes one time sale of power distribution business in Mumbai used to offset one time loss on sale of RPower shares by the lenders and one-time losses consolidated from RPower.

The company in its press release also added that it aims to be zero debt in the next financial year or earlier based on liquidity events.

Consolidated total income during the quarter was at Rs 4,234 crore as against Rs 3,709 crore in the corresponding quarter last year.

Catch all the latest and live updates here on CNBC TV18 Market Live Blog.

Disclaimer: CNBCTV18.com advises users to check with certified experts before taking any investment decisions.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Petrol, diesel prices fall for fifth straight day. Check rates here

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Petrol prices declined further on Monday by 6 paise, while diesel slipped by 9-10 paise in the four major metro cities — Chennai, Kolkata, Mumbai and New Delhi.

Petrol in Mumbai stood at Rs 75.63 a litre, while diesel was at Rs 66.93 per litre.

According to the Indian Oil Corporation data, petrol costs Rs 69.93 per litre and diesel Rs 63.84 a litre in New Delhi. In Kolkata and Chennai, petrol price stood at Rs 72.19 per litre and Rs 72.64 per litre while diesel was at Rs 65.76 per litre and Rs 67.52 a litre, respectively.

Fuel prices have declined for the fifth straight day today. Rates were largely rangebound during April and May despite a rise in oil prices in the international market.

As per the country’s dynamic pricing mechanism, the domestic fuel prices depend upon international fuel prices on a 15-day average and the value of the rupee.

Oil prices rose on Monday after US Secretary of State Mike Pompeo said Washington will take all actions necessary to guarantee safe navigation in the Middle East, as tensions mounted following attacks on tankers last week.

Brent futures rose 27 cents, 0.4 percent to $62.28 a barrel by 0040 GMT. They rose 1.1 percent on Friday. US West Texas Intermediate (WTI) crude futures were up 18 cents, or 0.4 percent, at $52.69 a barrel. They rose 0.4 percent in the previous session.

Prices had jumped as much as 4.5 percent on Thursday after the attacks on two oil tankers near Iran and the Strait of Hormuz. Petrol prices in India, however, fell further by one percent despite the Middleast tensions.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Jet Airways shares decline 18% after PMO calls for a review on the airline

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Extending losses for the eighth straight session, shares of Jet Airways fell 19 percent in intra-day trade on Monday after the PMO called for a review on the debt-laden airline.

The stock fell as much as 19 percent to hit a new low of Rs 64.40 per share on the BSE. At 12:15 PM, the stock was trading 18.6 percent lower at 66.75 per share as compared to 0.80 percent (304 points) fall in the BSE Sensex at 39,147.

The stock has tanked over 42 percent in the last one month, 74 percent in 2019 and 81 percent in the last 1 year.

According to sources, PMO has asked the revenue department to assess tax dues on account of the airline, CNBC-TV18 reported. They also added that Principal Secretary to the Prime Minister, Nripendra Misra, met the Ministry of Corporate Affairs on June 14 and asked it to keep a close watch on the case in NCLT.

The stock fell 35 percent last week after National Stock Exchange of India (NSE) decided to impose restrictions on its stock trading from 28 June as part of preventive surveillance measures to curb excessive volatility.

NSE said shares of Jet Airways would be pulled out of F&O trading, citing the embattled carrier’s failure to respond to queries about rumours in the market. It also cited the company’s failure to submit its financial results for the year ended March 31 as well as observations made by the airline’s auditor as reasons for the move.

The cash-starved airline suspended operations in April and lenders are working on ways for its revival.

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Disclaimer: CNBCTV18.com advises users to check with certified experts before taking any investment decisions

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Be selective in NBFCs, invest in top performers, says Equirus Securities’ Ashutosh Tiwari

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Improving liquidity situation and employment will be the main focus of the Narendra Modi government in the Budget, said Ashutosh Tiwari, head of research, Equirus Securities. Finance minister Nirmala Sitharaman will present her first Union Budget on July 5. In an interview with CNBCTV18.com, Tiwari talks about markets’ expectations from Budget 2019 and the ongoing NBFC crisis. Edited Excerpts:

What are the key expectations of the market from the upcoming Budget? Which sectors should the new finance minister focus on to help improve growth?

Demand scenario remains subdued across consumption sectors, further aided by the credit crunch in the market. The government needs to focus on job creation as well as improving liquidity in the market.

Various media reports said the government could hike the long-term capital gain tax (LTCG) in the budget. Do you think any increase will create panic amid the investors? What is your view of the same?

We don’t expect a further hike in long term capital gain tax, however, if it is hiked, it might create near term volatility. In the long run, equities will still remain the best investment class due to a superior return profile.

Do you think the market will see a pre-budget rally, or expect a consolidated trade in the run-up to the budget?

Markets already witnessed a rally around elections, so unlikely to see any pre-budget rally, it will rather look forward to steps taken by the government on demand revival and liquidity improvement in the budget.

How would you approach the current NBFC crisis? What should investors do with DHFL, other NBFC stocks?

Liquidity crisis will take away some of the NBFCs with it, some clean-up is required and is already happening. Some of the stronger NBFCs are gaining market share due to their superior internal processes in loan disbursal and low exposure to riskier sectors. We believe that one needs to be selective in this space and invest in leaders.

How are you reading into these bank downgrades? There was a downgrade in ICICI as well as Axis Bank earlier and now, Moody has placed Yes Bank’s rating under review for downgrade. Also, your top picks in the banking sector.

The downgrade in ICICI and Axis Bank ratings was more a view on Indian Economy rather than bank-specific factors. We believe and as Fitch has also indicated, that larger private corporate bankers like ICICI and Axis will show improved profitability in FY20. Yes Bank is under clean up phase and therefore uncertainty can remain there in near to medium terms.

Our top pick in the sector is ICICI Bank, as, with a sharpened focus on risk-calibrated growth, a reducing stressed asset pool, improving NIMs, a good CASA (49.6 percent) and a healthy tier-1 (15.1 percent), ICICI Bank is well-poised to embark on an improving profitable growth trajectory.

Do you think the polarised trade in large-cap space will continue or is it time for investors to step back in the mid- and small-cap markets?

Valuations of some of the mid- and small-cap are at very reasonable levels and therefore it is looking more interesting for long term investors, however near term movement in these stocks will depend on liquidity scenario.

Do you see good times for consumer and auto sectors any time soon? What are your top picks in these sectors?

We believe that the discretionary segment will take more time to revive and hence are not positive in these sectors. However, our top picks in the sector are VIP Industries – due to superior growth opportunity in luggage sector and Jyothy Labs – due to improving the balance sheet, its willingness to invest in power brands and attractive valuations

Analysts believe RBI should go for another rate cut in the August Policy. Do you think it is time to pause?

We do not deny the possibility of a rate cut, but liquidity improvement and transmission of rate cuts is more important right now.

Globally, what factors apart from trade tensions will affect the domestic indices in the near future?

Geopolitical tensions in the Middle East and its impact on crude prices will be a key event to watch out from the Indian perspective.

What is your year-end target for Nifty and Sensex? How much upside do you see?

We don’t have any specific targets for Nifty and Sensex

Also, track all live market action on CNBC-TV18 Market Blog

Disclaimer: CNBCTV18.com advises users to check with certified experts before taking any investment decisions

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Asian Development Bank approves Rs 1,650 crore infra projects in Tripura

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Asian Development Bank (ADB) has approved projects for infrastructure development worth Rs 1,650 crore ($235 million) in seven of the eight district headquarter towns in Tripura, an official release said here on Sunday.

The release said that the Urban Development Department of Tripura government had submitted the projects’ details to the ADB through the Central government on which the ADB gave its nod.

“The ADB would give 80 percent of the amount as grant-in-aid and the Tripura Government would have to repay back only 20 per cent loan in due course of time,” the release added.

The district headquarters towns where the ADB funded projects would be executed include Ambassa (Dhalai district), Dharmnagar (North Tripura), Kailashahar (Unakoti), Udaipur (Gomati), Bishramganj (Sepahijala), Belonia (South Tripura) and Khowai (Khowai).

The release said that the Urban Development Department of the Tripura government would start preparing a detailed project report with the support of the ADB for speedy execution of the projects.

“Such ADB-assisted ambitious infrastructure development project, first of its kind in Tripura, is expected to modernise all the district headquarters and would boost tourism and trade prospects in future so as to fulfil the dreams of model state of Chief Minister Biplab Kumar Deb”, it added.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Jet Airways’ lenders likely to decide fate of airline today, says report

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The decision on crisis-ridden Jet Airways that has been off operations since April 17 is likely to be taken on Monday as bankers are meeting to finalise a resolution under the June 7 Reserve Bank of India (RBI) norm on stressed assets, The Economic Times reported, citing three unnamed bankers.

The bankers are required to take a decision on whether the airline can be rescued or if it has to be taken to the bankruptcy court, added the report. The hearing of insolvency petitions by two suppliers is scheduled for June 20.

“We will also discuss whether bankruptcy may be the most viable solution as no serious proposal has been received yet,” a source was quoted as saying in the report.

According to the sources, the lenders are unlikely to consider the proposal of paying more than Rs 200 crore (about $30 million) to the US Exim Bank and take charge of six Jet Airways planes.

The airline has a debt of nearly Rs 8,500 crore with total liabilities of around Rs 25,000 crore.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow