The stock slide, rising bond yields and dollar strength are tightening financial conditions ahead of looming U.S., U.K. and Australian interest-rate hikes, while price pressures are being stoked by the elevated cost of commodities ranging from fuel to food, in part due to disruptions from Russia’s war in Ukraine.
CIL’s coal supply to power sector rises 16% in Apr; PSU plans to augment dispatches: PTI
State-owned CIL on Monday said coal supply to the power sector rose 15.6 per cent to 49.7 million tonne last month in the wake of high demand of the dry fuel from electricity generating plants and stressed that it is planning to augment its dispatches further, especially to power plants in the coming months.
The statement comes at a time when several parts of the country are grappling with power crisis.
“With the intense demand for coal continuing unabated driven by an upward spiral in the electricity generation, CIL (Coal India) pushed up its supplies to power plants of the country to 49.7 million tonnes (MT) in April’22. This is 6.7 MT more supply compared to April’21 when the power sector’s dispatch was 43 MTs,” the maharatna firm said.
With higher output, CIL is aiming to increase its dispatches further, especially to power plants in the coming months.
Coal India, which accounts for over 80 per cent of domestic coal output, is one of the major suppliers of fossil fuel to the power sector.
Angel One says SUBSCRIBE to LIC IPO
Outlook & Valuation: At the upper end of the price band the LIC IPO
is offered at P/EV (embedded value) of 1.1x as compared to other large listed private life insurance companies which are trading at multiples of 2.5-4.3x Sep’21 EV. Though there are concerns over LIC regarding market share loss in individual insurance business and historically lower margins, we believe that valuations factor in most of the negatives. Expected improvements in product mix and greater transfer of surplus to shareholders account over the coming years are expected to drive profits from current low levels, which along with cheap valuations provide comfort.
The issue is priced in the range of ₹902-949.
European stocks slip as downbeat China data dents risk appetite
European stocks fell in thin trade on Monday, pressured by heavyweights such as Mercedes-Benz trading ex-dividend, while data that signalled a steeper pace of contraction in China’s factory activity also dampened risk appetite.
The pan-European STOXX 600 index was down 0.8%, set to snap a three-day session of gains, although trading volumes were likely thinned by a UK bank holiday.
Ex-dividend factors weighed heavily on the STOXX 600, with automaker Mercedes-Benz, healthcare company Bayer , auto parts maker Continental and chemical group BASF all losing their payout attraction.
Mumbai property registrations fall 30% in April
Mumbai saw a 30% fall in property sale registrations of 11,744 units in April, compared to 16,726 units in March, contributing over ₹738 crore to the state revenue.
However, the number of units registered in April 2022 was the best in a decade for the month of April, said property advisory Knight Frank India. Around 55% registrations were in the price band of above ₹1 crore while in terms of apartment size, mid-sized homes (between 500-1000 sq ft) were the most preferred category of property registered during the month. (Read here)
Unrelenting heat in India pushes April power demand to record high
India’s electricity demand touched a record high in April as its northern states reeled under the hottest pre-summer months in decades, with a surge in the use of air conditioning triggering the worst power crisis in more than six years.
Power demand grew 13.2% to 135.4 billion kilowatt hours (kWh), as the electricity requirement in the north grew between 16% and 75%, a Reuters analysis of government data showed.
Electricity use is expected to grow as India’s weather office has forecast above normal maximum temperatures over most parts of the west central, northwest, north and northeast.
Royal Enfield joins hands with Italian riding gear brand Alpinestars
Mid-size motorcycle maker Royal Enfield, a subsidiary of Eicher Motors, on Monday said it has tied up with Italian riding gear brand Alpinestars to create a riding apparel collection with high protection and performance.
Founded in 1963 in Asolo, Italy, Alpinestars is now a world-leading manufacturer of professional racing products, motorcycling airbag protection, high-performance apparel, gear and technical footwear.
The partnership aims to provide Indian riders with the essential tools needed to make the best of their adventures, Royal Enfield said in a statement.
Why Tata Chemicals shares are up 10%?
Shares of Tata Chemicals Ltd jumped more than 10% in Monday’s morning trade on the National Stock Exchange. This is on a day when the benchmark Nifty50 index was 0.7% down.
The reason is simple. The company announced results for the fourth quarter of FY22 (Q4FY22) on Friday after market hours and performance has exceeded Street expectations. Plus, management commentary has been upbeat.
TVS Motor launches NTORQ 125 XT scooter priced at ₹1.03 lakh
The company’s sales grew 24% year-on-year to 295,308 units in April.
Total two-wheelers sales also grew 24% to 280,022 units in April. Domestic two-wheeler sales grew 37% on year 180,533 units last month.
Axis Securities recommends BUY rating on Embassy REIT, target price at ₹425/share
Stable Occupancies Led by Back-to-Office Drive
Embassy REIT’s Q4FY22 revenue at ₹749 Cr was in line with our estimate amidst stable occupancies coupled with resilient collections after the pandemic. The occupancy was 87.1% on the total portfolio of 33.8 msf at the end of Q4FY22. Reported NOI margins are 82.4% and EBITDA margins improved to 76.7% due to a fall in indirect expenses. EMBASSY has Leased 2.2 msf at 18% spreads across 47 deals, achieved 14% rent escalations on 7.7 msf across 89 deals for FY22, focused on occupiers from high growth sectors such as SaaS, EV, and E-Commerce.
The management has guided NOI of ₹2,710 Cr (on average) for FY23 and NDCF/distributions of ₹2,050 Bn. DPU guidance stands at ₹21.7 per unit for FY23 on a similar base of 948 Mn units. Furthermore, the office leasing momentum continues to grow backed by a healthy return to workplace trajectory coupled with robust hiring by technology and global captive players and record tech investments. The company remains focused on delivering growth to Unitholders and scaling up its industry-leading portfolio.
Ajanta Pharma board to consider issue of bonus shares on 10 May: BSE release
EaseMyTrip to apply for a Full-Fledged Money Changer License (FFMC) from RBI: BSE release
Gold prices dip as bond yields strengthen ahead of Fed meeting
Gold prices fell on Monday as elevated U.S. Treasury yields pressured demand for zero-yield bullion, ahead of a widely expected big interest rate hike by the Federal Reserve to contain broadening inflationary pressures.
Spot gold was down 0.6% at $1,884.50 per ounce. US gold futures dropped 1.5% to $1,883.30.
The market is concerned that the Fed could be quite hawkish, pricing in a 50 basis point hike, and it could be 75 basis points in July, said Stephen Innes, managing partner at SPI Asset Management. The U.S. central bank’s Federal Open Market Committee is scheduled to begin its two-day meeting on May 3 and announce its decision the next day. U.S. Fed policymakers look set to deliver a series of aggressive rate hikes at least until the summer to deal with rapid inflation and surging labour costs, even as two reports released on Friday showed tentative signs that both may be cresting.
Axis Securities maintains BUY on Maruti; target price at ₹9800/share
Maruti Suzuki India’s Q4FY22 performance was ahead of expectations on the margin front, aided by operating leverage benefits, lower discounts, and price hikes.
With low inventory and a large order book, we expect MSIL to come back strongly in terms of profitability along with volume recovery. Going forward, near-term headwinds of chip shortages weighing on production and commodity cost pressures will weigh on MSIL’s financial performance. We expect margin contraction in H1FY23E and normalization in H2FY23E.
We maintain our BUY rating on the stock with an unchanged TP of ₹9,800/share, valuing the stock at 27x its FY24E EPS. The TP implies an upside of…