Weekly Capsule (Apr26–Apr30)

weekly Weekly Capsule (Apr26–Apr30)

News AnnouncementImpact Analysis
·        Reliance net profit for Mar-12 quarter doubles to Rs.13,277 crore·        Despite lower ARPUs in the telecom  business, the retail and digital business earned more EBITDA than the O2C business

·        However, the Mar-20 quarter profit may have been subdued due to Rs.4,267 crore of O2C business value write-off

·        Daily Coronavirus afflictions cross the 3.80 lakh mark on an average·        Despite the lockdowns imposed, there has been little respite as aggressive testing is also spiking the number of cases

·        The government will commence vaccinations for the 18-44 age group from 01 May onwards on a top priority basis

·        Core sector growth bounces back to 6.8% for the month of Mar-21·        This smart growth came largely on the  back of the base effect as Mar-20 was an exceptionally weak month for core data

·        For the full year ending March 2021, the core sector number contracted by -7%, the first negative core sector in history

·        Fed underlines that policy will be accommodative as long as necessary·        The one change in the Fed statement was that they admitted that growth recovery and inflation were a risk to rates

·        The Fed Watch probability for a status quo on rates till December 2021 remains fairly comfortable at above 85%

·        Sensex plunged 984 points on the last trading day of the week·        The second wave of COVID has raised fears that the GDP recovery could be much slower than anticipated

·        Only metals and pharma were the two sectors that held up on Friday with all the other sectors, including banks, taking hits

·        Yes Bank disappointed the street with net loss of Rs.3,789 crore in Q4·        The losses were largely an outcome of a spike in provisions for loan losses and doubtful debts on account of COVID revival

·        Gross NPAs were higher in the quarter and remain high even in absolute terms raising concerns about slippages in future

·        Tata Power could be planning $473 million IPO of renewable unit·        The renewable energy business has been driving a lot of the price upgrades of the stock in the last few months

·        With its focus shifting to sustainable energy, this would also enable the company to get a better valuation in the market

·        Government sets record 104.3 million tonne Kharif rice target for 2021-22·        In the previous year, the actual rice production was 103.75 million tonnes compared to the target of 102.60 MT

·        The Kharif season extends from July to June and is likely to be a big beneficiary of normal Southwest monsoons

·        Hindustan Unilever Q4 flatters on the top line and the bottom line·        HUL reported 41% growth in net profits and 35% growth in revenues on a yoy basis for the Mar-21 quarter

·        While the base effect played a role, HUL has seen very good traction on its food, home care and beauty products lines

·        India gold demand in Mar-21 quarter up 37% at 140 tonnes·        This bounce was largely driven by a revival in festive demand and a lot of pent up gold demand unsatiated in India

·        This is paradoxical because during the quarter global demand for gold fell by 23% to 815 tonnes on weak ETF demand

·        Rahul Bajaj decides to step down from the board of Bajaj group at 83·        The group has been synonymous with Rahul Bajaj for over 50 years when he first took over in the year 1968

·        Today the auto business is handled by Rajeev Bajaj while the financial services business is handled by Sanjiv Bajaj

·        US reports GDP growth of 6.4% in the first quarter ended March 2021·        This is important because it comes on top of a 4.3% growth in GDP in the fourth quarter ended December 2020

·        The growth has been triggered by helicopter money pushing consumer spending growth to 10.3% in the quarter

·        Exit polls predict DMK in TN, LDF in Kerala and a hung house in Bengal·        Most of the estimates were along estimated lines although we will have to await the final outcome on 02 May

·        The exit polls have also suggested that the ruling BJP would retain Assam and get an absolute majority in Puducherry

·        Air India divestment likely to get delayed beyond the first half of FY22·        This delay has been necessitated due to the uncertainties caused by the resurgence of COVID cases in India

·        Apart from the tepid markets, it has also made examination of Air India properties unfeasible at this point of time

·        Anupam Rasayan gets Rs.1100 crore order from MNC life sciences company·        The order is one of the largest single orders and is meant to supply specialty chemicals for the life sciences operations

·        This order led to the sharp stock price rally and it is now quoting at a premium of nearly 20% to its recent IPO price

·        Zomato plans to hit the IPO market with a Rs.8,250 public issue·        According to the DRHP, this would include Rs.7,500 crore of fresh issue and Rs.750 crore by way of offer for sale or OFS

·        Zomato plans to utilize the fresh fund infusion for organic and inorganic expansion and investment in process and people

·        SEBI wants KMPs of MFs paid 20% of pay in units of funds they manage·        According to SEBI, this would bring about greater alignment between the fund manager and the unit holders

·        This has been apparently triggered by recent events like the Franklin Templeton case, where investors had to take losses

·        Axis Bank turns around to net profit of Rs.2,677 crore in Mar-21 quarter·        This turnaround from losses to profits was driven by a sharp fall in the loan provisions in the current quarter

·        On the business front, the bank saw 11% growth in net interest income or NII and a 2 bps expansion in NIMs

·        S&P Global Platts cuts monthly Indian oil demand by 9% for April and May·        The weak oil demand is likely to be triggered by persistent lockdowns and restrictions on movement

·        The demand contraction is largely because oil refineries have opted to reduce crude intake on account of weak demand

·        RBI restricts tenure of bank CEOs to 15 years in case of owner CEOs·        This would specifically impact bank CEOs of Kotak Bank and Bandhan Bank were the founders are also the CEOs

·        However, professional non-promoter CEOs are eligible to apply for reappointment even after completing 15 years

·        Indian mutual funds add 81 lakh folios in the financial year 2020-21·        Active folios now stand at 9.78 crore giving an approximate picture of the retail investor appetite for mutual funds

·        However, this annual accretion is much lower than the addition of 1.60 crore folios in FY18 and 1.13 crore in FY19

Related Post

Add a Comment

Your email address will not be published.