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D.R.E Reddy, CEO and Managing Partner, CRCL LLP:
RBI’s accommodative stance is a welcome move to revive and sustain growth. While the Indian economy is steadily reviving from pandemic led contraction, recent geo-political tensions has led to increase in price of the several commodities such as oil and natural gas, wheat and corn, edible oil, fertilizer, milk, chicken, poultry.
The ongoing conflicts has brought in risk of slow growth and higher inflation. Given the scenario of increasing food and crude oil prices, we may see prolonged supply disruptions which will further harden food prices globally.
Sharp increase in international prices implies increase in rates across manufacturing, agriculture and services.
Indoco Remedies gets USFDA nod for Lacosamide Injection
Indoco Remedies announced that the United States Food & Drug Administration (USFDA) has approved the ANDA Lacosamide Injection USP, 200 mg/20 mL (10 mg/mL) single-dose vials.
The generic Lacosamide Injection USP of lndoco Remedies is bioequivalent and therapeutically equivalent to the reference listed drug (RLD), Vimpat Injection of UCB, Inc.
Indoco Remedies was quoting at Rs 399.20, up Rs 6.40, or 1.63 percent on the BSE.
Fitch Ratings has affirmed Indian retailer Future Retail Limited’s (FRL) Long-Term Issuer Default Rating (IDR) at ‘RD’ (Restricted Default).
Fitch has also affirmed FRL’s USD 500 million 5.6% senior secured notes due 2025 at ‘C’, with a Recovery Rating of ‘RR5’.
Choice International share starts trading on NSEChoice International announced listing of its stock on National Stock Exchange of India (NSE). Currently, Choice is listed on Bombay Stock Exchange (BSE) since January 15, 1996. The company has received approval for direct listing of its equity shares on NSE from the trading hours on April 8, 2022.
Jefferies view on Cholamandalam Investment:
Broking firm Jefferies maintained buy rating on Cholamandalam Investment with a target at Rs 820 per share.
The company has reported strong disbursement growth of 58%, YoY and new business formed 12% of Q4 disbursements.
The increasing collection efficiency should lead to better asset quality QoQ.
Cholamandalam Investment and Finance Company touched a 52-week high of Rs 749.10 and was quoting at Rs 739.95, up Rs 53.00, or 7.72 percent.
Suvodeep Rakshit, Senior Economist, Kotak Institutional Equities:
The policy decisions are in line with our expectation on repo rate and stance. The rate corridor has now effectively reduced to 25 bps compared to 65 bps earlier. The SDF window will become the new floor at 3.75% even as reverse repo rate is at 3.35%.
The policy has decidedly shifted away from being dovish. RBI’s concern on inflation has increased significantly especially with the FY2023 average inflation estimate revised up to 5.7% from 4.5%. The concern on growth is relatively lower in this policy even as FY2023 GDP growth estimate has been lowered to 7.2% from 7.8%.
Commitment has also been made to start withdrawal of liquidity from FY2023 and over the next few years. This policy strengthens our view that the first repo rate hike will be in the August policy. We expect the stance to be changed to “neutral” from “accommodative” in the June policy.
In a volatile session, Sensex surges 250 points led by consumer focused stocks
Research house Morgan Stanley has maintained equal-weight rating on Cholamandalam Investment and Finance Company with a target at Rs 775 per share.
There was a better-than-expected disbursements in Q4, while collection efficiency strong at 138% and also maintained strong liquidity at the end of Q4.
Shishir Baijal, Chairman & Managing Director at Knight Frank India:
Despite the disruptions from geo- political challenges as well as inflationary pressures, the RBI recognises the need to maintain economic growth momentum.
We welcome the RBI’s continued accommodative stance and status quo on REPO rate.
For the real estate sector, low interest rates for a long period of time has served as a key catalyst for the resurgence of demand.
The status quo on REPO rates will help maintain the current demand levels as interest rate for both homebuyers and developers are likely to be maintained by financial institutions.
Buzzing:Ruchi Soya shares are in focus today after listing of FPO shares. On April 5, company board had approved the allotment of 6.61 crore shares to raise Rs 4,300 crore.
Market at 12 PMBenchmark indices were trading higher amid volatility in the afternoon session.The Sensex was up 140.96 points or 0.24% at 59175.91, and the Nifty was up 60.20 points or 0.34% at 17699.70. About 2124 shares have advanced, 951 shares declined, and 117 shares are unchanged.
