Indian equity markets erased gains as a post-Fed relief rally fizzled out. An Asian share gauge flat-lined, European contracts made modest advances, while S&P 500 and Nasdaq 100 futures reversed gains, hit by the prospect of sustained rate hikes by the US Fed to rein in runaway inflation. At 1pm, Sensex was down 576.21 pts at 51,965.18, while the broader Nifty fell 214.75 pts to 15,477.40
Tesla hikes U.S. prices across car models: Reuters
Barring five, all Sensex stocks in the red
ITC’s recovery decent amid volatile macros; Motilal Oswal upgrades rating
Shares of ITC Ltd. shares have put up a good show in 2022, rising 20.6% so far this calendar year compared to a 2.2% drop in the Nifty FMCG index. Note that the stock had underperformed prior to this, which had rendered valuations lower. Amidst the broader market turmoil, investors are now valuing companies that generate good cash flows and were beaten down. ITC is a case in point.
Moreover, ITC’s flagship cigarettes business is recovering faster. The company has said that its cigarette volumes in the March quarter have surpassed pre-pandemic levels. (Read here)
Leaders of France, Germany, Italy arrive in Ukraine’s capital in unusual joint show of support: AP
The leaders of France, Germany, Italy and Romania arrived in Kyiv on Thursday in an apparent show of collective European support for Ukraine as it tries to resist Russia’s invasion.
The French president’s office said President Emmanuel Macron, German Chancellor Olaf Scholz and Italian Premier Mario Draghi had traveled to Kyiv together, and Romanian President Klaus Iohannis will join them in the Ukrainian capital.
The European leaders are expected to meet with Ukraine’s President Volodymyr Zelenskyy in the highest-profile Western visit to Kyiv since Russia sent in troops to Ukraine Feb. 24.
The visit comes as EU leaders prepare to make a decision June 23-24 on Ukraine’s request to become a candidate for EU membership, and ahead of an important NATO summit June 29-30 in Madrid.
Nifty near day’s low
All sectoral indices in the red
Sensex gives up gains made earlier in the session
Shriram Group has secured RBI approval for the merger of Shriram City Union Finance and Shriram Capital Ltd with Shriram Transport Finance Company: BSE filing
Revlon files bankruptcy facing high debt, supply chain pain: Bloomberg
Revlon Inc. filed for Chapter 11 bankruptcy, unable to manage its heavy debt load amid the supply chain crunch and steep inflation.
The cosmetics giant owned by billionaire Ron Perelman sought court protection in the Southern District of New York, and listed assets totaling $2.3 billion as of late April. That stands in contrast to total debts of $3.7 billion, which include its 6.25% senior notes due in 2024, according to court papers dated June 15. (Read here)
Glenmark Pharm launches asthma drug Indamet
Glenmark Pharmaceuticals on Thursday said it has launched a novel fixed-dose combination (FDC) drug–Indacaterol Mometasone–in the country for patients.
Luanched under the brand name Indamet, the drug will be available in three strengths with a fixed dose of Indacaterol 150 mcg and variable doses of Mometasone 80 mcg, 160 mcg and 320 mcg to be taken once daily.
Air India decides to procure Airbus A350 aircraft; first plane’s delivery likely by March 2023: PTI
The Tata Group-owned Air India has decided to procure its maiden batch of wide-bodied A350 aircraft of Airbus and the first plane is likely to be delivered to the airline by March 2023, sources have said.
However, it was not immediately clear how many A350 aircraft will be purchased by Air India.
Air India has not bought a single aircraft since 2006 when it had placed orders for purchasing 111 aircraft — 68 from the US-based aircraft manufacturer Boeing and 43 from European aircraft manufacturer Airbus.
A wide-bodied plane like Airbus A350 has a bigger fuel tank that allows it to travel longer distances such as India-US routes.
The Tata Group took control of Air India on 27 January after successfully winning the bid for the airline on 8 October last year.
India reports 12,213 fresh covid cases in last 24 hours; active caseload at 58,215
Broader markets rise, India VIX down over 5%
Axis Securities on Infosys: Robust Performance; Capitalizing on Strong Demand to Sustain Growth
Infosys’s deal-wins for FY22 remained strong with 94 large deals totalling $9.5 Bn, manifesting Infy’s deep client engagement throughout the year. The company reported industry-leading revenue growth of 21% in FY22. It also reported healthy expansion in its operating margins driven by higher offshoring, efficient utilization, lower attrition, and superior service mix. · In view of robust deal wins, the Infy management has issued guidance of strong revenue growth of 13%-15% (CC terms) in FY23. It has also guided for an operating margin of 21%- 23% in FY23, aided mainly by higher offshoring and a richer service mix.
The management has guided for double-digit growth in FY23 in the backdrop of robust deal wins. Additionally, higher offshoring, better utilization, and lower attrition are likely to expand the company’s operating margin moving forward. We recommend a BUY rating on the stock and assign a 26 x P/E multiple to its FY24E earnings of ₹71.1/share to arrive at a TP of ₹1,850/share, implying an upside of 25% from the CMP.
Oil prices move higher on tight supplies, firm demand outlook
Oil prices recovered on Thursday from a steep drop in the previous session, supported by tight oil supply and peak summer consumption, after a U.S. rate hike sparked fears of slower economic growth and less fuel demand.
Brent crude futures rose 77 cents, or 0.7%, to $119.28 a barrel, while U.S. West Texas Intermediate (WTI) crude futures climbed to $116.33 a barrel, up $1.02, or 0.9%.
Prices slipped more than 2% overnight after the Federal Reserve raised interest rate by three-quarters of a percentage point, the biggest hike since 1994.
Minimum 10-15% increase in airfares must due to ATF price increase, rupee slide, says SpiceJet CMD: PTI
The sharp increase in aviation turbine fuel (ATF) prices and the depreciation of the rupee have left the domestic airlines with no choice but to immediately raise airfares, said Ajay Singh, Chairman and Managing Director, SpiceJet, on Thursday.
A minimum 10-15% increase in air fares is required to ensure that cost of operations are better sustained, Singh said in a statement.
Rupee surges 15 paise to 78.07 against US dollar in early trade: PTI
RIL surges nearly 2% amid positive trend in market
Nifty surges above 15,800 in opening deals
Sensex rallies 500 points in opening deals
Nifty rises above 15,750 in pre-open
Sensex advances 300 points in pre-open amid positive global cues
Nifty view: Nagaraj Shetti, Technical Research Analyst at HDFC Securities
The short-term trend of Nifty continues to be weak with rangebound action. Such lack of strength at the important support signal chances of false downside breakout or one leg of downside before showing sharp upside bounce from…
Read More: Stock Market LIVE updates: Sensex falls 600 pts, Nifty below 15,500; metals tank