Investors are bracing for the latest earnings season as they evaluate the threat from inflation, amid concerns that rising commodity costs and more circumspect consumers will end up squeezing company profits.
First rate hike likely in June policy meet; cumulative 75 basis points expected through the cycle: SBI report
Historically, at the lowest end of spectrum, the spread between the Repo and G-sec hovers around 250 basis points. In an interest rate hardening cycle, the spread vaults up to 350 points. 10-year Benchmark yields should thus move towards 7.50%, even with the current repo rate at 4%. We now expect a 25 basis point rate hike each in June and August, with a cumulative rate hike of 75 basis points in the cycle. Given that the spread between G-sec yields and repo rate jumps in an increasing interest rate cycle, G-sec yields could touch 7.75% by September. We believe, RBI will keep the G-sec yields capped at 7.5% through unconventional policy measures.
Oil prices edge higher with falling supplies in focus
Oil prices edged higher on Wednesday after Moscow said that peace talks with Ukraine had hit a dead end, fuelling supply worries, while weak economic data from China and Japan kept a lid on gains.
Brent crude rose by 48 cents, or 0.5%, to $105.12 a barrel, while U.S. West Texas Intermediate (WTI) crude futures gained 28 cents to $100.88. Both benchmarks had surged by more than 6% on Tuesday.
Jindal Stainless FY22 sales volume rise 23% to 1,011,292 MT: BSE filing
Jindal Stainless Ltd’s total sales volume for FY22 stood at 1,011,292 MT, up by 23% as compared to FY21. During Q4FY22, sales volume stood at 269,168 metric tonnes (MT), registering an uptick of 9% on QoQ and 6% on YoY basis.
The sales volume was backed by JSL’s agile supply chain and a flexible product mix with a focus on value added product segments. Despite volatility and global disruptions in raw material supply and logistics, JSL effectively upped its exports. Company’s exports sales proportion doubled to 32% of sales volumes in Q4FY22 as compared to 16% Q4FY21.
ICICI Bank signs MoU with GIFT SEZ
ICICI Bank and GIFT SEZ have signed a Memorandum of Understanding (MoU) to promote GIFT SEZ to Indian as well as global businesses including IT / ITeS and financial services. GIFT SEZ is the country’s first International Financial Services Centre (IFSC) which is being developed as a global financial services hub.
As per the MoU, ICICI Bank and GIFT SEZ will jointly work towards attracting global investors and capital market firms to set up operations in GIFT SEZ. Further, both the organisations will promote GIFT SEZ among Indian and foreign MNCs as the preferred location for availing cross-border trade finance. GIFT SEZ and ICICI Bank aim to promote development of GIFT SEZ as fintech hub of India and will make concerted efforts to support start-ups and fintech firms
Leaf Round Raises $300K in Pre-seed Funding
Leaf Round, an alternative investments platform has raised $300K in a pre-seed funding from micro VC firm Upsparks, Superb Capital and senior business leaders from McKinsey, Bain, Barclays and Adobe. Leaf Round will use the funds to further its product building efforts and create market awareness about the company and its offerings. It will also be double downing its efforts in hiring the right talent, building a highly scalable tech stack and focusing on content driven marketing to enhance the understanding of the product.
Leaf Round is a fintech start-up that offers asset renting as an alternative investment product and has witnessed strong traction from its early users since its launch in April 2022.
Zydus to supply product to US firm Sagent from Gujarat plant
Zydus Lifesciences on Wednesday said it will supply Caffeine Citrate Oral Solution from its Gujarat-based manufacturing plant to Sagent Pharmaceuticals, Inc.
The company will be manufacturing and supplying Caffeine Citrate Oral Solution in the strengths of 60 mg per 3 ml (20 mg per ml) single-dose vial from its injectables facility at Jarod in Gujarat, Zydus Lifesciences said in a statement.
Zydus said it has received Prior Approval Supplement (PAS) approval from the US Food and Drug Administration (USFDA), which allows for a site transfer and manufacturing of the drug at Jarod.
Top gainers/losers on Nifty at this hour
Sensex extends losses
India’s IOC buys 7 million bbls of crude via tenders: Reuters
Indian Oil Corp, the country’s top refiner, has purchased a total of 7 million barrels of crude via tenders for May and June loading, traders said on Wednesday.
The refiner bought 4 million barrels of Murban crude and another 3 million of West African crude, they added.
Oil majors Total, Shell and BP sold the Murban cargoes, the sources said.
Tata Steel gains; company completed acquisition of 50% stake held by Steel Authority of India in S&T Mining Company
India’s March trade deficit at $18.51 billion
India’s merchandise trade deficit in March touched $18.51 billion, data released by the government showed on Wednesday.
India’s merchandise exports rose nearly 20% to $42.22 billion, while imports rose 24% to $60.74 billion.
India’s crypto exchanges block deposits via state-backed system, stir alarm: Reuters
Big Indian crypto exchanges CoinSwitch Kuber and WazirX have disabled rupee deposits for the purchase of cryptocurrency using a widely-used state-backed transfer system, spurring users to voice concern on social media.
India has spent years on a law to ban or regulate cryptocurrencies, with its central bank backing a ban over their threat to financial stability, but a recent decision to tax income from them suggests acceptance by authorities.
Result Preview – Oil & Gas: ICICI Securities
Oil prices surged sharply amid concerns over supply disruption following the Ukraine-Russia conflict during Q4FY22. Brent crude oil prices peaked at $139/bbl in March. Subsequently, average crude oil prices rose $20.1/bbl QoQ to $99.5/bbl. On a closing basis, crude oil prices increased $29.1/bbl QoQ to $106.6/bbl. Gas realisation was up 62% YoY as domestic APM gas prices were revised upwards from October. Similarly, ceiling price for gas from deepwater fields was also higher by 51% YoY in Q4FY22. Hence, net realisations of upstream companies are estimated to improve YoY as well as QoQ.
Top picks: IOC, BPCL, RIL
Gold inches higher as Ukraine conflict lifts safe-haven bids
Gold prices edged higher on Wednesday as concerns of an escalation in the Russia-Ukraine conflict increased safe-haven bids for the precious metal, although a firmer U.S. dollar capped bullion’s gains.
Spot gold was up 0.2% at $1,969.61 per ounce, after hitting a near one-month peak of $1,978.21 on Tuesday. U.S. gold futures were down 0.1% at $1,973.70.
PhonePe crosses 100 million transactions a day
PhonePe currently processes over 2.5 billion transactions a month at an Annual TPV run rate of $780 billion.
The app has seen digital transactions from over 19,000 pin codes, constituting more than 99% of the country.
Oil prices ease on weaker economic data from China, Japan
Oil prices eased on Wednesday, giving up earlier gains, after China and Japan reported weak economic data, fuelling concerns about growth and oil demand in the world’s top consumers.
Brent crude futures was down 34 cents, or 0.3%, to $104.30 a barrel, while U.S. West Texas Intermediate (WTI) crude futures fell by 46 cents, or 0.5%, to $100.14 a barrel. Both contracts had surged more than 6% in the previous session.
China’s export growth beats expectations but imports slip
China’s export growth held up well in March, although analysts say the momentum could soon peter out with the world’s second-largest economy set to slow sharply due to the Ukraine war and domestic COVID-19 lockdowns.
Imports, on the other hand, unexpectedly fell as domestic consumption weakened amid widespread lockdowns to stop the spread of record COVID cases.
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