Indian markets are expected to remain stable on Monday, while trends from SGX Nifty suggest a positive opening for national indices. On Friday, the BSE Sensex closed at 48,782.51, up 689.19 points or 1.43%. Nifty closed at 14,347.25, up 209.90 points or 1.48%.
Asian stocks took a break on Monday, as Treasury yields hit 10-month highs as ‘trillions’ of new US fiscal stimulus packages were announced this week, fueling global think-tank trade .
Investors were keeping an eye on US policy as pressure for President Donald Trump’s impeachment increased, although signs that a real trial is still taking some time.
The broader MSCI index for Asia-Pacific stocks outside of Japan remained stable, having climbed 5% last week to all-time highs. Japan’s Nikkei was closed for a vacation after closing the maximum in 30 years on Friday.
President-elect Joe Biden is expected to announce plans for “trillions” in new humanitarian aid accounts this week, many of which will be paid for by larger loans.
In the meantime, the Federal Reserve seems happy to place the burden on fiscal policy, with Vice President Richard Clarida saying there will be no change anytime soon in the $ 120 billion debt the Fed buys each. month.
Back home, the Securities and Exchange Board of India (Sebi) asked the creditors of Dewan Housing Finance Corp. Ltd (DHLF) details the credit rating demands raised by Oaktree Capital in its offer to the bankrupt mortgage lender, according to the Mint report.
Future Group companies will be at the center of concerns as Attorney Kishore Biyani expects early regulatory approval of his $ 3.4 billion deal to sell its retail assets, its chief executive said, even with his conflicting business partner, Amazon.com Inc, stepping up efforts to block the deal.
Shares of Tata Consultancy Services will be seen, as the IT major on Friday announced a 7.2% increase in consolidated net profit to 8,701 crores in the December quarter. Revenue rose 5.4% in the quarter under review to $ 42,015 crore from $ 39,854 crore in the corresponding period last fiscal year, he added. This was the strongest growth for the December quarter in nine years, TCS said.
Avenue Supermarts, the owner of DMart, reported a much better-than-expected recovery during the December quarter, with revenue increasing 9% year-over-year to $ 7,400, thanks to the increase in the holiday season. Its other expenses were down 7% year on year despite revenue growth, leading the EBITDA margin to increase over several quarters.
Meanwhile, with the Fed reluctant to buy longer-dated bonds, yields on 10-year Treasuries jumped nearly 20 basis points last week to 1.12%, the biggest weekly increase since June.
Treasury futures lost another 3 ticks on Monday morning. Rising yields, in turn, offered some support for the bearish dollar, which had risen to 90.320 against a basket of currencies since last week’s low of 89.206.
The euro fell to $ 1.2185 from a recent high of $ 1.2349 but is supported around $ 1.2190. The dollar also strengthened to 104.08 yen, following a low of 102.57 reached last week.
The sudden surge in bond yields hurt gold, which bears no interest, and the metal fell to $ 1,844 an ounce from its recent high of $ 1,959.
Oil prices remained firm after hitting their highest level in nearly a year on Friday, gaining 8% the week following Saudi Arabia’s pledge to cut production.
Brent oil futures fell 11 cents to $ 55.88, while North American oil futures added 2 cents to $ 52.26 a barrel.
Stocks to watch: TCS, Tata Steel, Vedanta, Avenue Supermarts
Asian stocks are mixed this morning, although SGX Nifty indicates another gap opening for Indian stocks in today’s session.
The S&P BSE Sensex will start the new trading week based on 10 consecutive weekly gains, its longest period since 2009!
The US dollar appreciated against major pairs, while the yen fluctuated.
- Beautiful characters of the results: TCS Q3FY21
- U.S. Dollar Revenue Rises 5.1% to $ 5,700.6 Million
- Revenue increases 4.7% to Rs 42,015 crore
- Net income increases 3.2% to Rs 8,701 crore
- Operating profit of 6.4% at Rs 11.184 crore
- Operating margins increase to 26.6% from 26.2%
- Reported activity earns $ 6.8 billion in the quarter
- All Sectors Including BFSI and Manufacturing Saw Revenue Increase Compared to Previous Quarter
- Provisional dividend declared of Rs 6 per share
- Double-digit growth guides for the year ending March 2022.
- All figures are compared quarter by quarter
Earnings Fineprint: Avenue Supermarts Q3FY21
- Revenue increased 11% to Rs 7,542 crore
- Net income increases 16% to Rs 447 crore
- 15% operating profit for Rs 689.12 crore
- Ebitda margin at 9.1% vs. 8.8%
- Overall sales and sales mix trending very close to normal times
- Segments that take the longest to recover include clothing, laundry, shoes, travel, and out of home items
- Of the 221 stores, 162 are over two years or older achieved 96% of sales over the previous year
- All figures are compared year by yea
Actions to watch
Vedanta: The promoter group is launching an open offer to purchase 10% of the company’s capital. The parent company has offered to buy up to 37.17 million shares from public shareholders at Rs 160 each, which is a 12% reduction from Friday’s closing price.
Tata Steel: Domestic and European sales volumes in the third quarter were limited by the smaller opening of Covid-19 and its impact inventory. India’s production volumes increased 3% to 4.60 million tonnes in the third quarter of FY21, compared with 4.47 million tonnes in the third quarter of fiscal 2010. Delivery volumes of India fell 4% to 4.66 million tonnes from 4.85 million tonnes. Production volumes in Europe increased 4% to 2.61 million tonnes, compared to 2.51 million tonnes year-on-year. Delivery volumes in Europe fell 10% to 2.11 million tonnes from 2.35 million tonnes. Exports decrease to 11% of total shipments. Automotive and Specialty Products deliveries increased 48% compared to the previous quarter due to improved overall demand. The B2C brands Tata Shaktee and Tata Tiscon achieved the best quarterly sales ever. Deliveries in the industrial products and projects segment were slightly lower. Gross revenues obtained through “Aashiyana” – the online platform for builders of single-family homes increased 134% year on year to Rs 222 crore.
Tata Steel BSL: Sales volumes constrained by lower production and lower opening inventories saw strong sales in the second quarter of fiscal year 21. Shipments were down 10% in the quarter and 8% yoy at 1.149 million tonnes. Domestic deliveries increased 7% in the quarter to 947 KT. Exports reduced to 18% against 31% in T2AF21
Tata Steel Long Products: Achieved the highest quarterly crude steel production due to bottlenecks and arcs, despite maintenance shutdowns. Shipments were down 10% in the quarter, but increased 2% year-on-year to 166 KT. It had the best rolled steel sales for the quarter, with growth of 17% for the quarter. Alloy wire rod sales volume was also the best on record, growing 26% in the quarter. Reduced DRI production due to maintenance downtime. Sales volumes were in line with the lowest production.