Tuesday, July 17, 2018

W P Inflation further up in June

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Wholesale price inflation rose to a four and a half year high of 5.72 per cent in June, up from 4.43 per cent in May. 

Jump in fuel prices, along with a continuing uptick in food inflation, led to a rise for a fifth month in a row. This raises pressure on the RBI to raise its policy rate of interest, which makes bank loans costlier.

Rate  sensitive stocks may continue to come under pressure.

Crude prices effect : IMF cuts India's growth

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IMF has cut India’s growth forecast by 10 basis points to 7.3% for the current year and by 30 basis points to 7.5% for 2019, citing faster-than-anticipated monetary tightening and higher crude prices.

The international body had projected 7.4% and 7.8% growth for 2018 and 2019, respectively in its April forecast. India is still the fastest growing economy, well ahead of 6.6% and 6.4% growth for China. 

Amazon at $ 1822, Jeff Bezos, richest person in modern history

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Jeff Bezos, the Amazon.com Inc. founder, is the richest person in modern history. Amazon stock closed at $ 1822 in Monday's trading. 

The net worth of Jeff Bezos broke $150 billion, according to the Bloomberg Billionaires Index. That’s about $55 billion more than Microsoft Corp. co-founder Bill Gates, the world’s second-richest person.

HUL reports healthy numbers in Q1, stock hits 52 week high

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Hindustan Unilever has reported at 19 per cent YoY jump in net profit at Rs 1,529 crore for the quarter ended June 30, 2018. 

Desi FMCG giant, Patanjali, led by Baba Ramdev is giving tough fight to many MNCs in the segment. 

The company had posted a net profit of Rs 1,283 crore in the corresponding quarter last year.

Revenue from operations of the company increased almost 3 per cent (YoY) to Rs 9,356 crore in Q1 FY19 over Rs 9,094 crore in Q1 FY18. Volume for the quarter rose 12 per cent on year-on-year basis.

HUL closed at Rs 1760, up Rs 17. The closing new 52 week high  for the stock.

Adverse court verdict: Dr Reddy's tanks 9 percent

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 Dr Reddy’s Lab tanked 9% and closed Rs 2083 in yesterday's trade.  US federal judge has blocked the multi-national from selling a generic version of Indivior PLC’s opioid treatment Suboxone film.

US’ New Jersey district court granted a preliminary injunction against Dr Reddy’s. Thus, this prevents it from selling or exporting the drug to the US pending the outcome of the litigation, the reports added. The court has also ordered the parties to submit a final proposed injunction order on July 16.

Monday, July 16, 2018

Moody's downgrade Tata Motors

Moody's have downgraded Tata Motor's senior unsecured instrument ratings to Ba2 from Ba1, but maintained a stable rating outlook.

The downgrade to Ba2 reflects our expectation of continued weakness in company's consolidated credit metrics over the next two years, led by its wholly owned subsidiary Jaguar Land Rover Automotive Plc.

Friday, July 13, 2018

Infy reports disappointing numbers in Q1, stock to react negatively on Monday

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Infosys numbers for the first quarter of FY 19 are disappointing. The numbers, with profit missing the analyst estimates. Operating margin fell to 23.7 percent from 24.7 percent in the previous quarter. Attrition rose to 21 percent from 17 percent in the previous quarter.

Net profit for the June quarter fell by 2.1 percent to Rs 3,612 crore, compared to Rs 3,690 crore in the previous quarter. 

The previous quarter's profit included positive impact of Rs 1,432 crore on account of conclusion of an advance pricing agreement with the US revenue service.

First quarter revenue increased 5.8 percent to Rs 19,128 crore from Rs 18,083 crore in the March quarter.

Infosys says that the profit was impacted by ongoing negotiations for Panaya, the Israeli software company.  The company has recorded a reduction in the fair value of Disposal Group held for sale amounting to USD 39 million in respect of Panaya.

As a results, profit for the three months ended June 30, 2018 has decreased by USD 39 million resulting in a decrease in basic earnings per equity share.

The board has approved a one bonus share for every share held.

Infosys, as on date has an equity of Rs 1092 Cr (FV Rs 5). Post bonus the equity will swell to Rs  2184 Cr.

Infosys retained its annual revenue growth guidance of 6-8 percent in constant currency and operating margin guidance at 22-24%.

Infosys closed at Rs 1323, up Rs 29 in today's trade. The results were announced after market hours.

IPO ANALYSIS: Ganesh Films India limited - Avoid

Issue Details :

Issue opens  / closes on
16-07 /18-07-2018
Issue size
10,52,800 equity shares
Face Value
Rs 10
Rs 80
Film distribution / production
Nambirajan Ganapathi Yadav and Natrajan Ganapathy
Bse, sme
Fedex Securities


Issue Details:

Issue size
35,00,000 equity shares
Face value
Rs 10

Mfrs of pharma intermediaries
Bse, Nse
I T I Capital
Link Intime