>> Potential MSCI inclusion candidates are in focus
>> Investors rush to postal savings to lock in higher interest rates
>> Diagnostics stocks on a high on Dalal Street
>> Overseas Indians try out a trick to skirt new tax
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 signalled weak sentiment early Monday and Nifty futures traded some 15 points lower on Singapore Exchange at 7 am (IST). Other Asian markets opened mixed after Wall Street indices rallied overnight to record high on solid economic data that added to evidence of a strengthening recovery. In currencies, the dollar held on to Monday’s losses. The rupee declined by 18 paise on Monday to close at 73.30 against the US currency. US Treasury yields traded steady at 1.70%. Oil held onto most of its 4.6% decline amid growing delays in Europe’s reopening and looming Iranian supply. Gold traded little changed in international markets.
That said, here’s what else is making news.
Potential candidates for inclusion in the MSCI index are in focus on Dalal Street. IIFL Alternative Research put out a report, saying Adani Enterprises, Adani Total Gas, Adani Transmission, SBI Cards and Cholamandalam Investment are ‘high probability’ candidates for inclusion in the MSCI Standard index in the forthcoming semiannual review in May. It said Jindal Steel, Voltas, SRF, Godrej Properties and Bharat Electronics are ‘medium probability’ inclusion candidates. Adani group stocks could see inflows ranging from $207 million to $229 million each on such an inclusion.
Diagnostics stocks are on a high. These shares jumped amid Monday’s sell-off on expectations that rising Covid-19 cases will boost testing. Money managers said investors are shuffling their portfolios in favour of companies that can benefit from essential services than discretionary spends. Thyrocare Technologies surged 7.35% on Monday while Metropolis Healthcare gained 2.6% and Dr Lal PathLabs 6.1%.
Many wealthy Indians with businesses and jobs abroad are trying to get around the country’s new tax rule that targets the global income of its citizens. These individuals are booking a slice of their income in jurisdictions like Singapore and Hong Kong to pay a small tax there in the hope that they would escape the glare of the Income Tax department in India. But whether their aggressive strategy pays off would depend on how sternly tax officials interpret the law.
Credit rating agency ICRA says bad loans of Indian banks could rise significantly this financial year when the government and RBI roll back regulatory and fiscal support measures. Banks could see gross bad loans rise to 9.7% of advances in FY21 and 10.2% by the end of FY22, the rating firm said in a report. “While the headline asset quality and restructuring numbers are encouraging, these don’t reflect the underlying stress on the asset quality of banks,” said Anil Gupta, sector head for financial sector ratings at ICRA.
And lastly, worried Indian investors are rush to postal savings now. Eyeing simple products and visible returns, they are rushing to post offices to take advantage of the higher returns offered by post office savings schemes. The government has kept interest rates on these small savings products unchanged for the April-June quarter, making these schemes attractive compared with bank deposits. Financial planners believe it is a matter of time before the interest rates on such schemes get reduced in line with the general low interest-rate environment.
NOW Before I go, here is a look at some of the stocks buzzing this morning…
Adani Ports and Special Economic Zone (APSEZ), which last year acquired 75% stake in Krishnapatnam Port, has purchased an additional 25% for Rs 2,800 crore, making it a fully-owned port.
Naveen Jindal-led JSPL will divest 100% of its power subsidiary Jindal Power (JPL) in order to bring down the company’s overall debt of Rs 28,000 crore and to reduce carbon emissions within the group.
Mortgage lender HDFC on Monday said it will acquire 9.90% stake in Kerala-based infrastructure fund management company KIFML.
The country’s largest carmaker Maruti Suzuki India on Monday said its total production in March 2021 increased significantly to 1,72,433 units over the same month last year.
Alcoholic beverages maker, Tilaknagar Industries said it has signed a deal with French distiller Pernod Ricard to make their products at their Maharashtra manufacturing unit.
Steelmaker JSPL has reported a 20% jump in sales at 7.28 million tonnes for the financial year ended 31st March 2021 with production up by 19% to 7.51 mt, the company said.
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!
