· Maruti Q4 numbers show margin pressure
· Info Edge awaits windfall as Zomato readies to list
· NBFCs fear loan defaults, urge RBI to allow one-off debt recast
· Google parent reports record profit, but warns to slowdown ahead
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.
The trade setup on Dalal Street looks strong this morning with benchmarks looking set to build on an impressive show over the past two days. Nifty futures traded in the positive earlier in the day. Other Asian markets look cautious ahead of the US Fed’s policy outcome. Top indices on Wall Street ended flat overnight, while Nasdaq dropped for the first time in three sessions. Bonds weakened, and 10-year US Treasury yields advanced back above 1.6%. In commodities, crude oil and gold traded steady, but palladium prices hit a record, spurred by persistent supply worries.
That said, here’s what else is making news.
Maruti’s March quarter earnings showed acute margin pressure on Tuesday. India’s top carmaker saw net profit fall 9.7% to Rs 1,166.10 crore for the fiscal fourth quarter, missing Street estimates. That even when net sales increased 33.6% to Rs 22,958 crore. Maruti has been facing margin pressures due to cost inflation, and that has been an overhang on the stock for the last three months.
RBI’s latest order on bank CEO tenure has put three banks in succession planning mode. Long-serving CEOs at DCB Bank, RBL Bank and Federal Bank will now have to focus on this bit after the regulator capped their tenures at 15 years. DCB Bank CEO Murali Natrajan has completed 12 years in the job and got a year’s extension this month. Federal Bank CEO Shyam Srinivasan will complete 11 years in September when his second consecutive one-year extension ends. RBL’s Vishwavir Ahuja also completes 11 years in June and is awaiting RBI’s nod for another three-year term.
Info Edge India is awaiting windfall as one of its investee companies, Zomato, is readying to go public. The food delivery aggregator has proposed an initial public offering of fresh issue of equity shares and an offer for sale. Info Edge said in an exchange filing on Tuesday that it plans to sell its stake worth Rs 750 crore through the issue.
India’s business activity suffered its steepest weekly fall in over a year in the seven days to April 25, as many states imposed lockdowns to contain the resurgent pandemic, showed a tracker compiled by Japanese brokerage Nomura. However, the real economic impact is seen to be “small” compared with the first Covid wave as indicators such as the labour force participation rate among others have remained resilient, Nomura said in a report on Tuesday.
Alphabet Inc on Tuesday reported record profit for the second consecutive quarter and announced a $50 billion share buyback. However, the Google parent firm warned that a surge in usage and ad sales during the pandemic may slow down when people resume in-person activities.
And lastly, domestic NBFCs have written to the RBI governor seeking a dispensation for restructuring loans by the shadow banks to small businesses and of loans availed by these lenders. NBFCs have also sought liquidity support as the industry has been hit hard by the second wave of the pandemic.
NOW Before I go, here is a look at some of the stocks buzzing this morning…
Private lender Axis Bank on Tuesday beat street expectations by reporting net profit of Rs 2,677 crore on the back of lower provisions and higher net interest income.
SBI on Tuesday said it would consider raising up to $2 billion (around ₹14,942 crore) through bonds in the current fiscal.
HDFC Asset Management reported a 26% rise in profit after tax (PAT) to Rs 315.9 crore in the March quarter from Rs 250 crore reported for the same period a year ago
Ninety-nine-year-old Tamilnad Mercantile Bank is planning an initial public offer of Rs 1,000 – Rs 1,300 crore later this fiscal to comply with regulatory requirements.
Also… 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!
