Nifty IT Index lose the most, down 2.15 percent; Wipro & Tech M down more than 3 percent
Will LIC eclipse Paytm to become one of the worst IPOs of pandemic era?
LIC shares have fallen 25 percent from the issue price of Rs 949 per share after listing on May 17. The stock has seen an average decline of around 1.3 percent per session in 19 trading sessions. If…
Key trigger is fuel price crossing Rs 100/l. Work is going on in R&D to make amenable electric platforms for motorcycles, says Rakesh Sharma of Bajaj Auto pic.twitter.com/Xx4TbG0Usu— CNBC-TV18 (@CNBCTV18Live) June 10, 2022
Fitch Revises Outlook on India to Stable, Affirms at ‘BBB-‘
Fitch Ratings has revised the Outlook on India’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to Stable, from Negative, and has affirmed the IDR at ‘BBB-‘. The Outlook revision reflects our view that downside risks to medium-term growth have diminished due to India’s rapid economic recovery and easing financial sector weaknesses, despite near-term headwinds from the global commodity price shock. We expect robust growth relative to peers to support credit metrics in line with the current rating. High nominal GDP growth has facilitated a near-term reduction in the debt-to-GDP ratio, but public finances remain a credit weakness with the debt ratio broadly stabilising, based on our expectation of persistent large deficits. The rating also balances India’s external resilience from solid foreign-exchange reserve buffers against some lagging structural indicators.
Market at 1.00 PM
Indices tank more than 1.5%, Sensex trading lower by around 950 points, Nifty around 16,200
The Sensex was trading lower by 952.7 points or 1.72% at 54,4372.6 and the Nifty was lower by 263.6 points or 1.6% at 16,214.45. About 1156 shares have advanced, 2010 shares declined, and 144 shares are unchanged.
Santosh Meena, Head of Research, Swastika Investmart Ltd. on LIC
We believe India’s highly underserved life insurance market is still in its infancy and is well-positioned to capitalize on the enormous growth potential. LIC has several competitive advantages, including a strong brand value, a massive network of agents, and an enviable distribution network. Further, the company has plans to address concerns with the company like low VNB margins, loss in market share, high reliance on agency channel, etc. Additionally, the company’s issue was priced at a Price to Embedded Value of 1.1x, which was already at a discount compared to its global as well as Indian peers, and the current dip provides further valuation comfort. Another point we’d like to make is that investors should be aware that insurance is a long-term business; therefore wealth development and compounding occur only over time. One interesting observation that can be witnessed is that the low made on the first day of trade after the 30-day anchor investor’s lock-in period may act as strong support for a further rally for quality stocks. If fundamentals are strong it’s a good time to buy on such dips
Ravi Singh, Vice President & Head of Research, Share India on fall of LIC stock
LIC share prices may drop further till 700 levels and investors are advised earlier to exit their positions and wait for the turnaround of the sentiments. The high risk appetite investors may hold their positions. It is expected that in the long run, the business metrics of LIC will improve steadily. Investment done at lower levels will deliver good returns in the long term.
Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services on the fall of Rupee
Rupee hit its fresh all time low but in the last few sessions has been very resilient and is consolidating in a narrow range despite volatility in domestic and global equities and strength in the dollar against its major crosses. On the domestic front, RBI has been very actively intervening and curtailing the volatility for the rupee. Global crude oil prices have been rallying thereby putting pressure on inflation and leading to higher trade deficit. Dollar is getting support at lower levels ahead of US inflation number that will be released today and FOMC policy statement that is scheduled next week. Expectation is that the Fed could continue to raise rates and maintain its hawkish stance. We expect the USDINR (Spot) to trade with a positive bias and is gradually headed towards 78.50 levels. On the downside 77.20 will continue to act as an important support in the short term.
Sugar companies to benefit from additional charge on Ethanol from OMCs
OMCs have announced a relief scheme for sugar companies on Ethanol supplied between June 2022 and November 2022. Under this scheme OMCs will pay additional Rs 1.60/litre, Rs 1.49/litre and Rs 1.18/litre for Ethanol supplied from Sugarcane Juice, B-Heavy Molasses and C-Heavy Molasses route respectively. Also the prices of damaged food-grain ethanol & surplus rice based ethanol have also been increased by Rs 2.3 / litre and Rs 1.4 / litre respectively.
Experts are of the opinion that this will aid the growth in earnings of sugar companies and demonstrates the intent of the government to reach its ethanol blending target of 20% by 2025
Market at 12.00 Noon
Indices lose further ground, Sensex trading lower by around 850 points, Nifty around 16,250
The Sensex was trading lower by 839.65 points or 1.52% at 54,480.63 and the Nifty was lower by 229 points or 1.39% at 16,249.1. About 1163 shares have advanced, 1950 shares declined, and 135 shares are unchanged.
#OnCNBCTV18 | 50% of Kotak loans are linked to external benchmark based lending rate. Margin in Q1FY23 to be in range with Q4FY22, says Shanti Ekambaram of Kotak Mahindra Bank pic.twitter.com/3zh0sHQD3V— CNBC-TV18 (@CNBCTV18Live) June 10, 2022
Fitch Ratings forecasts India GDP to grow at 7.8% in FY23
Fitch Ratings forecasts India GDP to grow at 7.8% in FY23 compared to its previous estimate of 8.5 percent and forecasts a growth of around 7 percent between FY24 and FY27. It expects inflation to remain elevated at 6.9 percent during the current fiscal and expects the repo rate to reach 6.15 percent by FY24.