Tata Motors reports highest PV sales in 9 years

Tata Motors reports highest PV sales in 9 years

Indian auto-manufacturers reported a mixed bag of sales in February as the slowing demand and supply chain constraints continued to keep two-wheeler sales under pressure.
Tata Motors reported a 54% year-on-year increase in total domestic sales led by strong demand for its passenger car and a revival of the commercial vehicle segment. The company said the car sales were the highest ever in at least 9 years.

The country’s largest carmaker Maruti Suzuki India reported a 11.8% increase in wholesales to 1.64 lakh units in February.
Although the company’s entry-level cars, Alto and S-Presso, declined by 12.9% compared to the same month last year — Sales of compact segment vehicles, including models Swift, Celerio, Ignis, Baleno and Dzire, increased by 15.3% year-on-year.

The Hinduja group flagship firm Ashok Leyland reported an increase of 19% in total vehicle sales in February as the commercial vehicles segment showed positive signs after recovering from the coronavirus slowdown.
The medium and heavy commercial vehicles (M&HCV) sales in the domestic market were up 5%, and the light commercial vehicle (LCV) sales in the domestic market were up 46%.

The Tractor sales continued marching in a positive trajectory, with M&M posting double-digit growth in February. The farm equipment segment recorded 19.8% growth leading to the overall growth of 3.3%.
TVS Motors reported 18% year-on-year growth in February-led by strong growth in the two-wheeler segment. The company which sells Apache and Jupiter saw its sales jump nearly 21% in the segment.

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Bharti Airtel raises $1.25 Bln through debt issue

Bharti Airtel raises $1.25 Bln through debt issue

Shares of Bharti Airtel rose 2% after the telecom services provider raised $1.25 billion through debt instruments.
The special committee of directors for debt fundraising, on February 25, 2021, approved the pricing, tenure and other terms and conditions w.r.t. issuance of senior unsecured foreign currency (USD) denominated notes aggregating to $750 million.

This forms a part of total debt fundraise of $1.25 billion by the company through its first-ever dual tranche of dollar bond offering, including the aforesaid issue of $750 million and issue of guaranteed perpetual securities of $500 million by Network i2i Limited, a subsidiary of the company.
This is the largest issuance by any Indian Investment Grade issuer since January 2019.
The offering was oversubscribed with strong demand from several marquee Asian, European and American funds.

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This document is meant for the recipient only for use as intended and not for circulation. This document should not be reproduced or copied or made available to others. The information contained herein is from the public domain or sources believed to be reliable. While reasonable care has been taken to ensure that information given is at the time believed to be fair and correct and opinions based thereupon are reasonable, due to the very nature of research it cannot be warranted or represented that it is accurate or complete and it should not be relied upon as such. Also above note is not a recommendation to Buy or SELL and is only a view based on facts and figures and we will be in no way responsible for any losses incurred by anyone who uses this information to either trade or invests securities mentioned herein.

NSE halts trading due to links issue

NSE halts trading due to links issue

Index price feed for NSE indices across brokers has frozen due to an unknown reason. NSE has closed F&O market at 11:40 am and the cash market at 11:43 am. NSE says that the update for the re-opening will be shared later.
NSE has multiple telecom links with two service providers to ensure redundancy. We have received communication from both the telecom service providers that there are issues with their links due to which there is an impact on NSE system.
NSE does all sort of Mock Trading sessions for system testing, still such things happen in real time and not during mock sessions. *NIFTY / BANKNIFTY spot prices frozen since 10:07am.

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This document is meant for the recipient only for use as intended and not for circulation. This document should not be reproduced or copied or made available to others. The information contained herein is from the public domain or sources believed to be reliable. While reasonable care has been taken to ensure that information given is at the time believed to be fair and correct and opinions based thereupon are reasonable, due to the very nature of research it cannot be warranted or represented that it is accurate or complete and it should not be relied upon as such. Also above note is not a recommendation to Buy or SELL and is only a view based on facts and figures and we will be in no way responsible for any losses incurred by anyone who uses this information to either trade or invests securities mentioned herein.

Infosys: A long term bet

Infosys: A long term bet

Share price of Infosys fell 5% in early trade Thursday as better-than-expected earnings for the December quarter triggered profit-booking.
Infosys posted a 16.6% year-on-year (YoY) rise in consolidated net profit at Rs 5,197 crore in Q3 as against Rs 4,466 crore in the year-ago quarter.
Its revenue grew 12.3% to Rs 25,927 crore in the quarter under review from Rs 23,092 crore in the corresponding period last fiscal.

The Bengaluru headquartered IT services exporter has also increased its FY21 revenue growth guidance to 4.5-5^ in constant currency terms. In October, Infosys had guided towards 2-3 percent revenue growth in FY21 on a constant currency basis.

Infosys remains preferred stock among portfolio investors given its strong financials and new deal wins.
Infosys reported a strong $5.2 billion in net new large-deal wins in 3QFY21 that positions it well for 15% dollar revenue growth in FY22.
Management expects to offset associated margin headwinds from transition costs and passthrough revenue in such deals via a combination of operating leverage and improved profitability in previously won deals.

Evidently, increased sales aggression and best-in-class execution are helping Infosys gain disproportionate share as clients explore cost-takeout deals to fund digital spending, making Infosys one of the best plays on the theme.
Execution of client relevant strategy focused on digital transformation continues to drive superior growth, well ahead of the industry.

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Bharti Airtel: DoT approves FDI limit hike

Bharti Airtel: DoT approves FDI limit hike

Shares of Bharti Airtel rallied nearly 6% in Wednesday’s trade after the telecom operator informed stock exchanges that it is initiating the process to revise its foreign investment limit, as notified to its depositories, to 100% with immediate effect.

Sunil Bharti Mittal owned company has received the FDI approval from the Department of Telecommunications, for its relevant downstream investments. Accordingly, the company is initiating the process to revise its foreign investment limit, as notified to its depositories, to 100% with immediate effect.
It is expected to be the biggest Nifty winner of 2021, even after its price almost doubled from its March 2020 low.
The optimistic outlook is based on robust earnings growth expectations.

Bharti Airtel is likely to report a Rs 81.30 crore profit for the December quarter. It sees the margin for the firm expanding to 45.1% in the December quarter, from 42.1% in the corresponding quarter last year. Sales are projected to rise 15% to Rs 25,244 crore.
India wireless revenues are likely to rise 7% sequentially, aided by healthy expansion in its subscriber base by 70 lakh, accompanied by data subscriber addition of 1 crore.

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Burger King: Grand opening

Burger King: Grand opening

Quick restaurant chain Burger King India shares had a strong opening premium of 92.25% on the first day of trade on December 14.
The listing premium was better-than-expected given the stellar subscription and consistent strong revenue growth as well as store additions over the past more than five years of operations.
The stock opened at Rs 115.35 , against issue price of Rs 60 on the BSE, while on the National Stock Exchange, shares made a debut at Rs 112.50, a 87.50% premium over IPO price.
Burger King was expected to list at around 70-75% premium over issue price, while it was also trading at 75% premium in the grey market.

Analysts are optimistic on Burger King’s growth story considering improving organised industry growth benefiting from reduced competition from unorganised restaurants due to COVID-related challenges and expansion of its outlets wherein Burger King is well-positioned to expand its footprint in India from 260+ to 700 stores by December 2026.
Burger King India raised Rs 810 crore through public issue which was subscribed 156.65 times during the December 2-4 period. The company is going to utilise issue proceeds for debt repayment and expansion.
The quick service restaurant chain has 259 owned Burger King restaurants and nine sub-franchised Burger King restaurants as per the prospectus filed with the SEBI. Burger King has a target to increase its number of restaurants to 700 by the end of December 2026.

The company recorded a 49% CAGR growth in revenue and 258% in EBITDA during FY18-FY20, backed by strong store strength in the same period, though it reported losses at PAT level.

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This document is meant for the recipient only for use as intended and not for circulation. This document should not be reproduced or copied or made available to others. The information contained herein is from the public domain or sources believed to be reliable. While reasonable care has been taken to ensure that information given is at the time believed to be fair and correct and opinions based thereupon are reasonable, due to the very nature of research it cannot be warranted or represented that it is accurate or complete and it should not be relied upon as such. Also above note is not a recommendation to Buy or SELL and is only a view based on facts and figures and we will be in no way responsible for any losses incurred by anyone who uses this information to either trade or invests securities mentioned herein.

Markets week ahead: Covid-19 vaccine, macro data hold key

Markets week ahead: Covid-19 vaccine, macro data hold key

Market continued to hit fresh record highs in the week gone by on the back of positive global cues. Benchmark indices gained 2% each crossing major milestones in the sixth consecutive weekly gain.
BSE Sensex crossed 46,000 for the first time adding 1,019.46 points in the past week, while Nifty gained 255.35 points to end at 13,513.90.

Market will react to the macroeconomic data viz. IIP and CPI inflation in early trade on December 14.
Investors will keep an eye on the progress on the vaccine developments in India and Worldwide.
The US Food and Drug Administration (FDA) on December 11 approved the Pfizer-BioNTech COVID-19 vaccine for emergency use, and a rollout could begin within days. This is the first COVID-19 vaccine candidate that has been given emergency use authorisation in the Unites States, the country most affected by the pandemic.

The developments in corona vaccine and decreasing trend of the infections supported the market last week.
Global stock indexes eased and the dollar rose on Friday amid continued concerns over the timing of more US economic stimulus.

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Markets week ahead: Vaccine progress, stimulus package hold key

Markets week ahead: Vaccine progress, stimulus package hold key

The market started off December month on a strong note with the benchmark indices creating a history in the truncated week ended December 4. Indices gained more than 2% with the participation from all sectors barring Financial Services, continuing uptrend for fifth consecutive week.
The unchanged repo rate and maintaining an accommodative stance with dovish commentary and revising economic growth forecast upwards by the RBI, better-than-expected GDP data, vaccine progress, and FII inflow boosted sentiment during the week.

The BSE Sensex surpassed 45,000 mark for the first time, rising 929.83 points to 45,079.55, while the Nifty50 hit a fresh record high of 13,280.05, before ending 289.60 points higher at 13,258.55.
The market mood may remain positive but there could be some consolidation or volatility in the coming week given the benchmark indices moved to uncharted territory, while the catch up trade may continue in broader markets along with sector rotation and all eyes will be on global cues given the absence of domestic cues.
On macro front, the industrial output data for the October month and foreign exchange reserves for week ended December 4 will be released on coming Friday.

India’s industrial output registered growth in September after contraction seen in previous six months, growing 0.2% against revised contraction of -7.36% in August, but manufacturing segment continued to contract (-0.6%) in September, but better than August (-7.8%). There are expectations of further improvement in these data points in October.

The rising hopes for new fiscal relief bill lifted sentiment at Wall Street as benchmark indices hit fresh record highs on Friday. The discussion over second stimulus has started off in the passing week (for the first time after US elections in November), especially after fears of weakening job market and increasing economic restrictions due to fast-rising coronavirus cases in the United States.

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November Class 8 Truck Orders: Forging Ahead

November Class 8 Truck Orders: Forging Ahead

Shares of Bharat Forge and Ramkrishna Forgings gained in today’s session after Class 8 truck orders in the US rose to 52,600 units in November.
Orders were up 31% month-on-month and almost three times the level seen in November 2019, according to data from FTR Transport Intelligence.

The total orders in November were the third highest ever. Class 8 truck orders for the last 12 months now stand at 2.5 lakh units.
Consumer-oriented freight remains vibrant and industrial freight is expected to improve in the coming months. Fleets are placing big orders anticipating needing more trucks throughout next year.
The orders should begin to wind down in the next several months as the large fleets conclude their seasonal ordering.

Fleets are still trying to catch-up with the jump in freight volumes resulting from the economic restart and stimulus money spent on consumer goods and food. This will only intensify if there is a second round of payouts.
Bharat Forge, in November, said that the US truck market recovery surprised them positively, which should lead to a strong pick-up in the next few quarters.

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This document is meant for the recipient only for use as intended and not for circulation. This document should not be reproduced or copied or made available to others. The information contained herein is from the public domain or sources believed to be reliable. While reasonable care has been taken to ensure that information given is at the time believed to be fair and correct and opinions based thereupon are reasonable, due to the very nature of research it cannot be warranted or represented that it is accurate or complete and it should not be relied upon as such. Also above note is not a recommendation to Buy or SELL and is only a view based on facts and figures and we will be in no way responsible for any losses incurred by anyone who uses this information to either trade or invests securities mentioned herein.