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Navneet Damani, VP – Commodity & Currency Research, Motilal Oswal Financial Services on Gold:
Bullions started 2021 year with some buzz over vaccine reports from major pharma companies, political tiff between US President Biden and Former President Trump along with rising cases and concerns regarding the Covid-19 and its variants, stimulus packages and liquidity measure to support the economy, lower interest rate scenario continued to support the prices at lower levels. They become more relevant especially in the year 2021, with some baggage from 2020. Bullions did have a few phases of struggle, although that did not create a deep dent on prices amidst the strong fundamentals creating a floor for the prices and triggering high volatility.
Looking ahead, quarterly target of $1915 followed by $1965 could be seen, with a meaningful base around $1800 and $1745 zone. Correction from short term hurdles could be used as a buying opportunity although over the course of next 12-15 months an extended rally could be seen over $2000 with a potential to make new life time highs.
Asian Paints Q3: Asian Paints Ltd on January 20 reported a consolidated profit after tax (PAT) of Rs 1,016 crore for the quarter ended December 2021, down 18 percent from Rs 1,238 crore in the year-ago quarter. The profit grew 70 percent from Rs 596 crore in the previous quarter.
Consolidated revenue of India’s largest player in the decorative paints segment was 26 percent higher at Rs 8,527 crore from Rs 6,788 crore in Q3FY21. Revenue in the September quarter was Rs 7,096 crore.
Market update at 2 PM: Sensex is down 916.12 points or 1.52% at 59182.70, and the Nifty tumbled 258.90 points or 1.44% at 17679.50.
BSE Fast Moving Consumer Goods index fell nearly 1 percent dragged by the Godrej Consumer Products, Gujarat Ambuja Exports, Venky’s
ICRA cuts aviation recovery estimates amid third COVID-19 wave
Rating agency ICRA on January 19 cut its estimates for recovery in the domestic aviation market to 52 percent of pre-pandemic levels from 62 percent earlier due to the outbreak of the third wave of COVID-19 in the country. The outbreak of a new wave of COVID-19 due to the emergence of the Omicron variant of COVID-19 will result in a 40-42 percent fall in domestic passenger traffic in January, ICRA said in its report.
“Overall, passenger traffic is expected to be lower by 40-45 per cent in Q4 FY2022 and the traffic recovery for FY2022 is moderated to 52 per cent of pre-Covid level as against our earlier estimates of 62 per cent of pre-Covid level,” Rajeshwar Burla, Group Head of Corporate Ratings at ICRA said in a press release.
Century Textiles Q3
The company December quarter net profit declined 56 percent at Rs 14.1 crore versus Rs 32.1 crore, while revenue was up 38.3 percent versus Rs 1,065 crore versus Rs 770 crore, YoY.
Earnings before interest, tax, depreciation and amortization (EBITDA) was up 33.1 percent at Rs 100.3 crore and margin was at 9.4 percent versus 9.8 percent, YoY.
Century Textiles and Industries was quoting at Rs 941.55, down Rs 21.80, or 2.26 percent on the BSE.
UK consumer prices rise at fastest pace in almost 30 years
Consumer prices in the UK have risen at the fastest pace in almost 30 years as higher costs for energy, transportation, food and furniture squeezed household incomes.
Inflation measured by the consumer price index accelerated to 5.4 percent in the 12 months through December, the Office for National Statistics said on Wednesday. That is the highest rate since March 1992, when inflation stood at 7.1 percent, and above the 5.1 percent seen a month earlier.
Market at 1 PMBenchmark indices continued to trade negative with Nifty hovering around 17800 and Sensex down 500 points.The Sensex was down 571.23 points or 0.95% at 59527.59, and the Nifty was down 154.80 points or 0.86% at 17783.60.
Buzzing
Shares of Bajaj Auto fell over 3 percent after the company’s weak commentary for motorcycle demand. Bajaj Auto’s management told investors in a post-earnings conference call said that motorcycle sales in January were under pressure on a year-on-year basis.
The company had on Wednesday reported a 22 percent on-year decline in net profit to Rs. 1,214 crore but was above analysts estimate. Similarly, the company’s revenues of Rs. 9,022 crore was also above analysts’ expectations.
Nifty metal index added 1 percent supported by the Hindustan Copper, Jindal Steel, Welspun Corp
UPL & other shareholders in Sinagro announced agreement with Bunge:
UPL and other shareholders in Sinagro Produtos Agropecuarios SA., Brazil, have announced an agreement in which Bunge will acquire a 33% stake in Sinagro to strengthen its grain orientation strategy in Brazil, company said in its press release.
The deal is subject to approval by Brazil’s antitrust body, Conselho Administrativo de Defesa Econômica.
UPL was quoting at Rs 812.75, down Rs 0.10, or 0.01 percent on the BSE.
