>> Tata Motors goes all out to double output
>> Gold price slumps to its lowest in 8 months
>> Crude oil tops $65 as US crisis turns into a global supply shock
>> RBI tightens rules for HFCs to make your deposits safer
Hi there. Welcome to ETMarkets Morning, the show about money, business and markets. I am Sandeep Singh.
Let’s start with a quick glance on the state of the markets.
Dalal Street looked upbeat this morning even as other Asian markets traded weak. The Nasdaq slipped in overnight trade as US technology stocks faced pressure on inflation concerns. Crude oil price rose past to $65 a barrel mark as the deep freeze causing historic power outages across the central US has led crude output in the country to plunge by one-third. Brent crossed the $65 mark whereas WTI crude gained 1.4% to hover around $62.
Gold prices are plunging. In international markets, the yellow metal traded around its lowest in almost eight months. Back home, gold prices fell by Rs 717 to Rs 46,102 per 10 gm in Delhi on Wednesday. Silver dropped by Rs 1,274 to Rs 68,239 a kg.
Meanwhile, Bitcoin jumped the $52,000 mark for the first time on Wednesday.
That said, here’s what else is making news.
Tata Motors appears to have turned the corner – and is on course to reclaim its podium position in a market dominated by companies from maritime northeast Asia. Two hot-selling models, Nexon and Altroz, have given Tata Motors confidence to consider doubling its local output to 4 lakh units in FY22. If that milestone is reached, the Tata firm will likely garner its highest-ever sales in India and help secure the broader goal of cornering at least a 10% market share.
Alembic Pharma has earned an adverse order from the US FDA. The drug regulator of the world’s largest market found violations related to quality control, cleanliness and size of equipment and inadequate sample collection procedures at Alembic Pharmaceuticals’ new sterile injectables unit in Karkhadi, Gujarat. Remember, FDA had issued a ‘Form 483’ to the facility with five observations earlier this month.
Market regulator Sebi has cleared the decks for ultra-mega IPOs, by easing the minimum public offer norms at a time when the total market capitalisation of listed assets is beginning to outrun the country’s gross domestic output. Sebi said for issuers with post-issue market capitalisation exceeding Rs 1 lakh crore, the need for the minimum public offer will be reduced from 10% of post-issue market capital, plus 5% of the incremental amount beyond Rs 1 lakh crore. The move is, visibly, aimed at facilitating LIC’s mega IPO due over the next few months.
Shares of Dixon Technologies, D-Link India, ITI, Sterling Technologies, Tejas Network and Shyam Telecom are in for some action after the Union Cabinet cleared the Production-Linked Incentives scheme for telecom equipment in an attempt to boost local manufacturing. These stocks saw solid gains on Wednesday in an otherwise depressed market. According to analysts, it’s going to be a Rs 2.4 lakh crore opportunity for these companies over the next five years.
RBI has tightened norms for housing finance companies, particularly those raising public deposits. Under the new rule, HFCs must cease lending if they are not in a position to repay fixed deposit holders. The comprehensive rule book for HFCs is in the wake of RBI taking over the regulation and supervision of these specialised lenders from the National Housing Bank in 2019. It will probably make your corporate deposits in HFCs slightly safer.
NOW Before I go, here is a look at some of the stocks buzzing this morning…
>> The US FDA found violations related to quality control, cleanliness and size of equipment, and inadequate sample collection procedures at AlembicPharmaceuticals’ new sterile injectables unit in Karkhadi, Gujarat.
>> Bharti Airtel on Wednesday said it will acquire 20% stake in its DTH arm Bharti Telemedia from an affiliate of Warburg Pincus for about Rs 3,126 crore.
>> IndusInd Bank promoters IndusInd International Holdings Ltd (IIHL) have converted warrants in the bank at a 60% premium to Tuesday’s closing price investing Rs 2,021 crore
>> Amazon has written to NCLT, objecting to Future Group’s petition that sought the latter’s nod to hold a shareholders’ meeting that would approve its Rs 24,713 crore deal with Reliance Retail.
Do also check out over two dozen stock recommendations for today’s trade from top analysts on ETMarkets.com.
That’s it for now. Stay put with us for all the market news through the day. Happy investing!
