Hemant Kanawala, Head Equities, Kotak Mahindra Life Insurance Company
As high inflation remains the main concern, globally policy makers have begun to show urgency and respond with interest rate hikes and supply side measures.
While the aggressive rate hikes have increased the risks of growth slowdown in short term, the anticipated demand slowdown will also aid towards cooling of inflation in medium term.
Commodity prices have begun to reflect the same. Owing to this, as new inflation and growth dynamics unfold, markets are expected to remain in a consolidation phase.
Household, biggest lender to the economy, are going to the stock market because of negative real interest rates and we need to change it very soon, said RBI Deputy Governor Michael Patra.
Coal India forays into power production
South Eastern Coalfield Ltd (SECL) has signed a memorandum of understanding with Madhya Pradesh Power Generation Company Ltd (MPPGCL) to set up a 660 megawatt thermal power unit.
SECL is an undertaking of state-owned Coal India Ltd and the move marks a foray for CIL into power production, The Indian Express reported.
The coal-fired plant would be built next to the Amarkantak thermal power station at Chachai in the Anuppur district of MP.
Coal India was quoting at Rs 177.20, up Rs 0.15, or 0.08 percent on the BSE.
Geojit View on Strides Pharma Science
Strides continues to witness healthy sequential growth momentum despite various headwinds. Going forward, the company plans to focus on growth and profits and improve cashflows but also significantly reduce costs and debt.
New launches in the US market and exiting non-profitable business will support earnings. Outlook for the other regulated markets continues to remain robust given strong order book visibility and new customer acquisition.
Going forward, lower debt, higher cashflow and new portfolio contribution will be key catalysts.
Hence, given our positive outlook, we reiterate our ‘Accumulate” rating based on 14x FY24E EPS and target price of Rs 355.
BSE Information Technology index shed 0.5 percent dragged by the Brightcom Group, Mindtree, L&T Infotech
Gainers and Losers on the BSE Sensex in the early trade:
Market at 12 PM
Benchmark indices were trading higher with Nifty above 15600.
The Sensex was up 270.39 points or 0.52% at 52536.11, and the Nifty was up 89.80 points or 0.58% at 15646.50. About 2163 shares have advanced, 825 shares declined, and 129 shares are unchanged.
Motilal Oswal on ICICI Prudential Life Insurance
ICICI Prudential Life Insurance has maintained a steady traction in VNB growth, led by a healthy product mix and APE growth, aided by a more balanced distribution mix. The share of higher margin products such as protection and annuity/non-par savings has increased in
recent years, thus reducing dependence on ULIPs.
On the distribution side, the share of banks (excluding ICICI Bank) has increased over the years (off a low base), supporting the diversification in its distribution mix. The increase in agent recruitment and the forming of new partnerships will continue to support premium growth.
We expect VNB margins to improve slightly and project IPRU to deliver 21% and 23% CAGR in new business APE and VNB over FY22-24E, respectively, thus enabling an operating RoEV of 16.9% in FY24E. We reiterate our buy rating with a revised target price of Rs 630 (premised on 2.1x FY24E EV)
Govt may hold 33% stake in Vodafone Idea, SEBI nod awaited: Network18 Exclusive
The government will dilute its equity stake in Vodafone Idea once the company’s balance sheet improves, according to CNBC-TV18 sources.
I think the bond market is misreading the @federalreserve. This is likely due to Powell’s communication style and some wishful thinking on the part of investors. Inflation is out of control and inflationary expectations have become unanchored.— Bill Ackman (@BillAckman) June 23, 2022
#OnCNBCTV18 | On a relative basis, India is still quite expensive Vs other markets. Our proprietary data shows, retail inflows have already started falling. Valuations are not expensive relative to India’s own historical averages, says Sunil Tirumalai of UBS Securities pic.twitter.com/kD452Ve1VR— CNBC-TV18 (@CNBCTV18Live) June 24, 2022