BuzzingShortly after it was reported that Vodafone Idea (Vi) has sought additional loans up to Rs 7,000 crore, banking industry sources told CNBC TV-18 on January 6 that the lenders are not keen to fund the beleaguered telecom operator.According to persons who are aware of the development, the State Bank of India (SBI)-led lenders have sought clarity on whether the interest of Rs 16,130 crore on deferred adjusted gross revenue, which Vi is liable to pay, will be converted into government equity.The lenders have also argued that Vi would use the fresh loan to repay the existing debt, which would not leave the company with any additional financial resources that could be injected into its business operations, the sources added.
Q3 earnings preview: Revenue growth to be muted due to high base, margins to improve on softening commodity prices
The upcoming Q3 earnings season will be closely watched for cues on post-festive season demand trends, impact of global slowdown, as well as the commentary and guidance of companies going forward…. Read More
Ravindra V.Rao, CMT, EPAT, VP-Head Commodity Research, Kotak Securities:
COMEX Gold saw a dramatic turnaround on Friday and hit a seven month high of $1875.2/oz in line with a pull-back in the greenback.
Dollar reversed gains made earlier in the session and slipped to 103.6 as wage growth fell to 0.3% MoM, less than expected 0.4%, leading to bets that slowing wage growth may prompt Fed to moderate their policy stance.
Markets largely ignored job additions and drop in unemployment rate. The US economy added 223,000 jobs in December, beating expectations of 200,000 while the jobless rate slipped to 3.5%. Not only this, ISM Services PMI fell to 49.6 in December, slipping into contraction for the first time since May 2020, and sharply lower from November’s reading of 56.5.
This highlighted the impact of higher interest rates on economic activity. Today, COMEX Gold prices are trading 0.7% near $1884/oz supported by extended losses in dollar; however Fed Chair Powell’s speech and US CPI figures may influence prices later in the week.
Nifty Information Technology index rose 2 percent led by Tech Mahindra, Coforge, Persistent Systems
Best Agrolife gets licence
Best Crop Science a wholly owned subsidiary of Best Agrolife has been granted licence for indigenous manufacturing of Propaquizafop Technical & Cyhalofop-butyl Technical u/s 9 (3) by Central Insecticides Board & Registration Committee.
Best Agrolife was quoting at Rs 1,479.15, up Rs 24.65, or 1.69 percent on the BSE.
TCS share price rise more than 2% ahead of its December quarter earnings
JSW Steel Group Crude Steel Production volume up at 6.24 MT in Q3JSW Steel reported its group combined crude steel production at 6.24 million tonnes for Q3 FY’23 registering a growth of 17% YoY, including the production at jointly controlled entities.JSW Steel was quoting at Rs 739.40, up Rs 10.55, or 1.45 percent.
Ashoka Buildcon share price gains on bagging projectsAshoka Buildcon has received Letters of Intent from Dakshinanchal Vidyut Vitran Nigam for the projects worth Rs 807.64 crore.Also, company has emerged as the Lowest Bidder (L-1) for the project, the bid value of which is Rs 2,161 crore, for National Highway Authority of India (NHAI) project.
Future Supply Chain Solution shares fall 5% after NCLT admits insolvency plea against the companyFuture Supply Chain Solution share price fell 5 percent after National Company Law Tribunal (NCLT) has on Friday admitted the insolvency plea filed against Future Supply Chain Solutions Ltd (FSCSL).Future group firm FSCSL in a regulatory filing said the Mumbai bench of NCLT has allowed the plea filed by DHL E-commerce (India) Pvt Ltd, claiming default.”NCLT has pronounced its Order today i.e. January 05, 2023, allowing the admission of the said petition of DHL E-commerce (India) Private Limited on for default of outstanding amount payable to operational creditor,” the regulatory filing said.
IDBI Bank shares rises nearly 3%Middle East banking powerhouse Emirates NBD and billionaire Prem Watsa-led Canada’s Fairfax Group are likely to have submitted EOI’s or expressions of interest earlier this week for a majority stake in IDBI Bank, multiple sources in the government and the industry familiar with the development told Moneycontrol.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services
The US economic data released on Friday is significant from the global market perspective. All data point to a strong but cooling US economy which indicates the rising possibility of a soft landing for the US economy. The ISM Services data came at 49.6 against the previous figure of 56.5. The December jobs increase was 223000, the lowest in 2 years. The hourly wage increase slowed to 4.6% against the recent peak of 5.6%. All these point to cooling inflation and the possibility of the Fed going less hawkish in 2023.
The market has already started discounting this with the dollar index declining below 104 and the US 10-year bond yield declining by 12bp. All signals are bullish.
In India the major drag has been the sustained FII selling. This is the data to watch. If this too turns, Nifty can break out on the upside.
Paytm shares gain 2%-Merchant payment volumes (GMV) for the quarter ended December 2022 at Rs 3.46 lakh crore (USD 42 billion), 38% YoY growth
-Loan distribution business growing at 330% YoY with disbursements at Rs 3,665 crore in December
-Average monthly transacting users (MTU) at 8.5 crore for Q3, up 32% YoY
