Upasna Bhardwaj, Senior Economist at Kotak Mahindra Bank:
The inflation readings came in line with our expectations at elevated levels. While we expect April 2022 to have likely marked the peak for headline CPI inflation, the trajectory will witness a very slow descent, with all CY2022 readings likely to remain above 6%.
This will intensify the pressure on the MPC to aggressively frontload policy rate hikes especially with no near term respite seen on the supply side and geopolitical tensions.
We expect another 90-110bps of repo rate hike in CY2022, with 35-40bps in the June policy. We also expect additional CRR hike of 50bps in order to quickly streamline the monetary policy and liquidity stance.
Dalmia Cement draws up plan to invest Rs 2,600 crore in Tamil Nadu
Cement-maker Dalmia Cement (Bharat) Ltd, a subsidiary of Dalmia Bharat Ltd, has chalked out a Rs 2,600-crore investment plan spread over the next four years to take up expansion of its existing facilities and also set up new manufacturing units in Tamil Nadu, a top official said on Thursday.
The company would set up two greenfield grinding units with a capacity of producing two million tonne per annum each, regional director of the cement-maker Sunil Aggarwal said.
Dalmia Bharat was quoting at Rs 1,441.50, up Rs 35.40, or 2.52 percent on the BSE.
Tech Mahindra Q4 Preview | Profit may grow 30% and revenue 24%
Experts expect the rise in employee attrition and travel costs to impact EBITDA margins, which are likely to shrink by around 235 bps on year and 35 bps on quarter to 17.6 percent
Rajani Sinha – Chief Economist – CARE Ratings
The sharp spike in inflation in April explains the out of turn rate hike by RBI. While the spike in CPI inflation is higher than market expectations, even more concerning aspect is that the core inflation has shot up to 6.8% in April.
Food has continued to be the major contributor to CPI inflation, contributing around 47% to overall inflation in April. With global turmoil continuing and commodity prices remaining high, there will continue to be upward pressure on inflation in the coming months.
For full year, we estimate the average CPI inflation to be around 6%, with upward bias. With concerns on second round effect of inflation and wage price spiral caused by high household inflationary expectations, the RBI will be on tenterhooks. We expect the Central Bank to hike policy rate by another 25 bps in June and total of around 75-100 bps in FY23.
Market at 12 PMBenchmark indices extended the gains and trading at day’s high with Nifty above 16000.The Sensex was up 655.20 points or 1.24% at 53585.51, and the Nifty was up 214.30 points or 1.36% at 16022.30. About 2421 shares have advanced, 608 shares declined, and 102 shares are unchanged.
BSE Capital Goods Index rose 2 percent supported by the Timken, Bharat Forge, Polycab India
Titan Company was quoting at Rs 2,135.65, up Rs 87.25, or 4.26 percent. The share touched a 52-week high of Rs 2,767.55 and a 52-week low of Rs 1,426.00 on 21 March, 2022 and 12 May, 2021, respectively. Currently, it is trading 22.83 percent below its 52-week high and 49.77 percent above its 52-week low.
#TitanOutlook | Titan sees jewellery biz sales to rise by 2.5x by FY27, co aims ₹60,000 cr sales by FY27 Vs ₹24,300 Cr in FY22. Titan to add 600+ stores in 3 years@TitanCompanyLtd pic.twitter.com/0ajeFn2UzW
— CNBC-TV18 (@CNBCTV18Live) May 13, 2022
Results on May 14: Avenue Supermarts, Heranba Industries, Affle (India), Anant Raj, GPT Infraprojects, Kalpataru Power Transmission, Neogen Chemicals, Share India Securities, Transformers and Rectifiers (India), Triveni Engineering & Industries, TVS Electronics, and Vinati Organics.
Results on May 13: State Bank of India, Eicher Motors, Tech Mahindra, Bank of Baroda, Bandhan Bank, Union Bank of India, Alkem Laboratories, Emami, Escorts, Hindustan Aeronautics, JK Paper, Linde India, Nazara Technologies, Amber Enterprises India, APL Apollo Tubes, Balkrishna Industries, Carborundum Universal, CESC, Coromandel Engineering Company, DB Corp, Elgi Equipments, Gujarat Fluorochemicals, REC, Reliance Infrastructure, Reliance Power, Sharda Cropchem, Sigachi Industries, Steel Strips Wheels, Triveni Turbine, UCO Bank, and Vakrangee will release quarterly earnings on May 13.
Nifty FMCG index added 2 percent supported by the United Spirits, Godrej Consumer Products, Radico Khaitan
Have volatile markets driven investors out of mutual funds?
Rising interest rates, volatile equity markets and a curb on new fund launches have slowed mutual fund inflows. Fund officials say this is temporary.
Venus Pipes and Tubes IPO updates:
The initial public offering of Venus Pipes and Tubes was subscribed 5.88 times by the morning of May 13, the final day of the bidding, with investors putting in bids for 2.08 crore units against an IPO size of 35.51 lakh shares.
Retail investors have bid 10 times the shares set aside for them, while non-institutional investors’ portion has been subscribed 3.64 times on the final day. Qualified institutional buyers subscribed 36 percent of their quota of 10.14 lakh shares.
