Tag: Stock market

Cheers to hand sanitisers! Liquor companies see surge in demand as stocks rise 30% in two trading sessions

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

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Did you also believe that consuming alcohol helps in preventing the deadly coronavirus? If you did then sadly, those were just rumours. However, it is true that alcohol in sanitisers with heavy concentration have proven to be helpful in fighting  the virus.

Extra neutral alcohol (ENA), the key raw material used to make sanitizers can only be produced by liquor firms, which has increased the demand for major producers like United Breweries, United Spirits, Radico Khaitan and GM Breweries in the market.

Amidst all the chaos, many FMCG companies have managed to launch their own sanitizers in the market given the rising demand. In fact, some of the major players including Hindustan Unilever, Godrej Consumer Products, ITC, RB India amongst others have also slashed their prices to make it affordable for the general public.

This high demand for sanitisers has put liquor companies also on a higher pedestal in the stock market as recently the government encouraged to expand the ENA production.

As a result, players like UBL, USL, Radico and GM Breweries this week are seeing a sudden rally in their stock prices. In the last two trading sessions, UBL and USL surged 16 percent and  11 percent respectively, while Radico Khaitan rose 21 percent and GM Breweries rallied 27 percent. 

Emkay Global Research in its recent report noted that it is a good time to accumulate shares of alcohol companies, which have already corrected 20-25 percent. The brokerage has a ‘buy’ rating on USL, UBL and Radico Khaitan and expects them to rise 40-60 percent.

“While on-premise consumption will be hit from lower footfalls in bars, steady retail offtake should restrict the overall impact,” said Emkay’s analyst Ashit Desai.

“Concerns about adverse state policies have eased with excise policies being largely stable, which is positive for volume recovery in FY21,” added Desai.

Dolat Analysis also reiterate optimism on Radico, UBL and USL in order of preference from medium-to-long term perspective. “We try to analyse the impact on liquor companies due to likely business slowdown, if any on
account of  coronavirus coupled with sentimental impact of market meltdown. We believe there is negative little impact on business; albeit on most of the parameters it is positive”, said the brokerage.

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

Investors’ wealth rise Rs 11.12 lakh crore in three days as stock markets surge

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

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Investor wealth rose for the third consecutive day on Thursday, gaining Rs 11,12,088.78 crore in three days, as equity markets continued their sharp rally.

The BSE benchmark index Sensex advanced 1,410.99 points or 4.94 per cent to close at 29,946.77 on Thursday.

In three days, the index has gained 3,965.53 points. The market capitalisation of BSE-listed companies zoomed Rs 11,12,088.78 crore to Rs 1,12,99,025.06 crore in three days.

The government on Thursday unveiled a Rs 1.70 lakh crore economic package involving free foodgrain and cooking gas to poor for the next three months, one-time doles to women and poor senior citizens, higher wages to workers and measures to boost liquidity of employees as it looked to contain the impact of unprecedented nationwide lockdown.

“The key takeaway is that it will provide a solid support to rural and semi-rural economy due to high amount of benefit in terms of food, cash in hand and job safety. Regarding the market, it will provide safety to defensive stocks like the staple industries, but does not provide any relief to corporates like banks, hospitality and others,” Geojit Financial Services Head of Research Vinod Nair said.

“It seems that the majority of the benefits announced is factored in the market given more than 15 per cent bounce from the recent low. The recovery of the market will continue if strict lockdown system is implemented in the developed markets and number of new virus cases reduces,” he added.

The government will also frontload Rs 2,000 payment to farmers in the first week of April under the existing PM Kisan Yojana to benefit 8.69 crore farmers.

With businesses closed during the lockdown, the government will contribute employees as well as employer’s contribution to the provident fund for the next three months for companies with up to 100 employees with 90 per cent earning not more than Rs 15,000.

The contribution will be a total of 24 per cent of eligible wages.

“FM came out with some announcements in terms of relief package which was majorly attributed to poor people and farmers who are facing major problems during lockdown, but there was no major thing which can boost market sentiments while the market has already rallied significantly in last 2-3 days in anticipation of some kind of announcements,” TradingBells Senior Analyst Santosh Meena said.

From the 30-share frontline companies pack, IndusInd Bank grabbled the limelight, as it jumped 45.07 per cent.

Other big gainers were Bharti Airtel, Larsen & Toubro, Bajaj Finance, Kotak Mahindra Bank and Bajaj Auto.

On the BSE, 1,508 companies advanced, while 769 declined and 172 remained unchanged.

In the broader market, the BSE midcap and smallcap index rose by 3.49 per cent and 3.73 per cent, respectively.

All the sectoral indices ended higher, led by telecom and capital goods, which rose 10.04 per cent and 7.24 per cent, respectively.

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

Sensex gains 1,200 points, Nifty above 8,600 ahead of Finance Minister’s presser

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

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Indian benchmark indices, Sensex and Nifty, extended gains on Thursday to trade over 4 percent higher led by gains across sectors.

The market rallied on hopes of stimulus measures from Finance Minister Nirmala Sitharan as she will address a press conference at 1 pm today.

At 11:55 am, Sensex rallied 1,142,52 points or 4.00 percent to 29,677,30 and the Nifty traded 304.60 points or 3,66 percent higher at 8,622,45.

Investor sentiment was boosted after the US Senate passed a $2 trillion virus relief bill. Analysts expect domestic stimulus measures soon to fight the impact of the coronavirus outbreak on an already slowing economy.

All the sectoral indices were trading 2-10 percent higher.

Broader indices supported gains with Nifty Midcap100 and Nifty Smallcap100 trading more than 3 percent and 4 percent higher, respectively.

IndusInd Bank, Axis Bank, ICICI Bank, HDFC and Bajaj Finserv led gains among Nifty constituents while GAIL India, NTPC, UltraTech Cement, HCL Technologies and Coal India were the top losers.

Meanwhile, Asian stocks traded mixed on Thursday morning as investors await the release of US jobless claims data expected later in the day stateside.

Catch all the latest updates from the stock market here.

(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

CNBC-TV18 Market Highlights: Sensex closes 1,400 points higher, Nifty holds 8,600; IndusInd Bank top gainer

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

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CNBC-TV18 Market Highlights: The Indian market ended higher on Thursday after it cheered relief package from the Finance Minister. The Sensex ended 5 percent higher while Nifty held on to its gains, at 8,600. IndusInd Bank remained the top-gainer of the day, ended 46 percent higher. Amongst slew of announcements by the FM, Sitharaman addressed directly to the poor by releasing Rs 1.7 lakh crore under the PM Gareeb Kalyan Scheme. She also said that the government will give an additional Rs 2,000 per worker and a wage hike for MGNREGA workers. Thank you for staying with us throughout the day. Keep following our page for all the market action as well as major economy, policy and corporate news.

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

COVID-19 crisis: Travel industry is worst-affected sector, stocks tank 70%

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

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Most people across the country are fearing for their jobs given the current crisis due to the coronavirus pandemic. The economic meltdown, unemployment and liquidity crunch have had a negative impact on almost every sector, but the travel and tourism industry seems to be the most-affected.

The travel and tourism industry was already hit by the economic slowdown in 2019, coupled with macro challenges and geopolitical issues. And then came the COVID-19 pandemic that didn’t take much time to shut the entire world down.

According to the World Travel and Tourism Council India Initiative (WTTCII) and the Federation of Associations in Indian Tourism and Hospitality, the coronavirus pandemic could leave over 38 million people jobless, which is approximately 70 percent of the total tourism and hospitality sector workforce.

Not just mass unemployment, the extended national lockdown could lead to bankruptcies and closure of numerous travel firms. The current scenario is bad, especially in the aviation industry as airlines have had to shut operations. Experts suggest that in the coming two quarters, around 40,000 jobs could be lost.

The Centre for Asia Pacific Aviation India (CAPA India) has said that India’s aviation industry, excluding Air India, will incur losses of up to $600 million in Q4FY20. If the government does not intervene, several Indian carriers would have to shut operations by May or June due to lack of liquidity, the report warned.

Stocks related to the industry have shed over 70 percent of their gains this year.

InterGlobe Aviation and SpiceJet slipped 38 percent and 72 percent, respectively. Hotel stocks like Indian Hotels has lost 50 percent of its share value, while Chalet Hotels, EIH and LemonTree Hotels have shed 47 percent, 61 percent and 67 percent, respectively.

Thomas Cook stocks have plunged by 66 percent, BLS International Services has slipped 54 percent in trade in 2020.

Industry associations have expressed concerns over falling businesses and said that if the impact of the pandemic is not addressed immediately, it could stretch over for years and revival of jobs will become almost impossible. The impact of the deadly outbreak is already being witnessed as job losses and layoffs have started in the sector.

With the rise in number of coronavirus positive cases, the economy seems to be heading towards a “longterm lockdown”. Several tourism, aviation and hospitality bodies have written to the government for interim relief. However, as the country is already staring at a liquidity crisis, it seems unlikely that the industry could get any assistance from the government in the near term.

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

Treat with caution: rocketing stocks aren’t cause for comfort

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

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Those pining for a bottom to the gut-wrenching stock market selloff may be disappointed to learn that mega one-day rallies like the historic one witnessed on Tuesday are typically not the start of a durable recovery.

US stocks, that recently entered a bear market – a fall of 20 percent or more from recent highs – rebounded strongly on Tuesday after US lawmakers said they were close to a deal for an economic rescue package in response to the coronavirus outbreak, injecting optimism to a market grappling with its biggest selloff since the financial crisis.

The Dow Jones Industrial Average soared 11.37 percent, its largest one-day percentage gain since 1933, while the S&P 500 jumped 9.38 percent to 2,447.33, its biggest one-day percentage rise since 2008.

All the same, data suggest investors should treat the rally in stocks with caution.

Of the twenty past instances when the S&P rallied 8 percent or more on a single day, thirteen of them took place when stocks were in the embrace of a bear market.

“These 8 percent rallies are not necessarily signs of health,” said Christopher Murphy, co-head of derivatives at Susquehanna Financial Group.

In a note on Tuesday, Murphy wrote, “It is important to remember that some of the largest one‐day rallies in SPX’s history took place during bear markets, implying that one day pops are not uncommon in a down market.”

Nor are such sharp rallies a herald of better days.

In 2008, for instance, the two biggest gains during the market crash that fall, both in October 2008, were actually followed by five more months of double-digit declines, data showed.

“You can’t take this bounce and say that (the market) will turn around next week or the week after,” said Quincy Krosby, chief market strategist at Prudential Financial in Newark, New Jersey.

A lot will depend on whether monetary and fiscal response can stave off a prolonged downturn, Krosby said.

Going by history, those looking to time the end of the bear market should be more encouraged by days when investors take modest bites at risky assets rather than great big mouthfuls.

In 2009, the bull market was born with a 6.4 percent up day for the S&P 500. In 2002/2003 the recovery began with 3 percent up days.

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