Market update at 12 PM: Sensex is up 326.94 points or 0.63% at 52149.47, and the Nifty added 106.20 points or 0.69% at 15519.50.
The #government is not looking at a special #Dollar window for #OMCs. #Rupee is reacting to #Fed rate hikes, it’s not a devaluation, sources tell @Sapna_CNBC
Here’s more pic.twitter.com/TNp0i37w3q
— CNBC-TV18 (@CNBCTV18Live) June 23, 2022
Emkay Global Financial Services on RBI MPC minutes:
The minutes of the June meeting reflected continued policy urgency and a need to catch up with heightened inflation uncertainties. The persistent inflation narrative saw coherence among members as most of them believed that irrespective of the source of inflation (supply or demand side), there was a need for policy tilt to tame current high-level inflation.
Even though the MPC rhetoric has firmly moved in a hawkish direction, the issue of real terminal rates seems to find some mild divergence among some members. Prof Varma suggested that the rate hike should continue until at least real rates become modestly positive. Dr. Patra argued that the repo rate needs to be increased to at least as high as the one-year-ahead inflation forecast suggests (near zero), knowing that monetary policy works with lags. Prof. Goyal said that at the current stage of recovery, the one-year-ahead real rate must fall below -1%.
The triple whammy of commodity price shocks, supply-chain shocks and somewhat resilient growth has shifted the reaction function in favor of inflation containment. We are currently tracking next month’s CPI inflation at 6.9% but reckon elevated policy pressures as inflation remains above 7% in H1FY23. FY23 could see rates go up by another 75bps, with another 25bps+ hike in August.
The auto index jumped over 3 percent led by Eicher Motors, Maruti Suzuki, Hero MotoCorp and Tata Motors
L&T bags order worth Rs 2,500-5,000 crore for its hydrocarbon business:
Uber India is said to have explored sale of ride-hailing arm:
Uber is said to have explored a sale of its ride-hailing arm in India, according to a Bloomberg report. Uber and Ola had been struggling to show profit in India’s price-sensitive market, with constant pressure on margins. Uber Inc has already sold its India food-delivery business to Zomato. Uber says Bloomberg’s reporting is categorically false, ‘We Have Never Explored Exiting India’.
#OnCNBCTV18 | Based on FY24 Nifty EPS, Nifty could base out around 13,500. Not too positive on consumption related sectors, says Venugopal Garre of Bernstein pic.twitter.com/Oh7zH7H732
— CNBC-TV18 (@CNBCTV18Live) June 23, 2022
Market update at 11 AM: Sensex is up 641.80 points or 1.24% at 52464.33, and the Nifty jumped 198.70 points or 1.29% at 15612.
Vodafone Idea delays payment of AGR dues
Vodafone Idea (Vi) has said it is delaying by four years the payment of adjusted gross revenue (AGR) dues worth Rs 8,837 crore as the department of telecom (DoT) has offered the telco the option to do so.
After the delay, Vodafone Idea will pay the amount in six equal instalments starting 31 March 2026.
According to the company, an old DoT communication from 14 October 2021 had granted a four-year deferment on the dues as determined by the Supreme Court (SC). This covered all the AGR dues up to 2016-17 (dues which were included in the SC order).
Vodafone Idea Limited was quoting at Rs 8.65, up Rs 0.12, or 1.41 percent on the BSE.
Rising rates pressuring countries’ credit ratings, S&P Global warns
A growing group of countries are likely to see their credit ratings come under pressure as rising global interest rates hit already-stretched finances, one of the world’s biggest rating agencies, S&P Global, has warned.
A report by the firm on Wednesday said that heavily indebted Italy would face its highest debt bill as a percentage of its GDP since 2012 without European Central Bank help, while Ukraine, Brazil, Egypt, Ghana and Hungary were the most vulnerable emerging market countries.
IRB Infrastructure receives arbitral award of Rs 308 croreIRB Infrastructure Developers received 75 percent of the arbitration award of Rs 419 crore from IRB Pathankot Amritsar Toll Road Ltd, an SPV of IRB InvIT Fund.The Court has upheld Arbitral Tribunal’s Order and directed NHAI to release 75 percent of the arbitration award amount, i.e. Rs 308 crore, to the company. IRB Infra was the EPC contractor for Pathankot Amritsar BOT project, as per the company’s release.
Hydrocarbon division of L&T Energy has secured three offshore packagesThe Hydrocarbon division of L&T Energy has secured three offshore packages from a prestigious overseas client. The scope of work comprises Engineering, Procurement, Construction, and Installation for various new offshore jacket structures. L&T Energy Hydrocarbon (LTEH) has executed orders for this client in the past and repeat business is a testimony to L&T’s “Execution Par Excellence” philosophy, company said in its release.
