BUSINESS
Currency Squeeze: Rupee expected to weaken further
Last week, rupee consolidated in a narrow range and has been having a muted reaction despite various data releases. "Indian rupee is expected to weaken against the US dollar in the coming week due to higher crude prices and a possible outflow of IPO money going back to foreign venture capitalists," said Sajal Gupta, Head, Forex and Rates at Edelweiss Securities.
Headline CPI inflation might have peaked out
According to MOFSL research, the peak out trend might provide some relief to market participants, especially in the bond segment. "We expect IIP to remain broadly unchanged in YoY terms in June'21, before reporting marginal growth of 1-2 per cent YoY over July-Aug'21." "Overall, we do not see RBI hiking rates in FY22." Recently, CPI-based retail inflation came in unchanged at 6.3 per cent YoY in June 2021.
HDFC Bank Q1FY22 YoY net profit up 16.1%
Besides, the bank's net interest income rose to Rs 17,009.0 crore from Rs 15,665.4 crore for the quarter ended June 30, 2020. "During the quarter, the country was hit by a 'second wave' of Covid-19, with a significant surge in cases following the discovery of mutant coronavirus strains. While there was an improvement towards the end, business activities remained curtailed for almost two thirds of the quarter."
Covid resurgence, OPEC supplies hike could come to India's aid
The increase in Covid cases globally have made the oil market uncertain as it has the potential to erode demand quickly. The benchmark Brent crude declined by 3 per cent to settle at around $73 a barrel, while US crude has fallen by about 4 per cent to settle at about $71 a barrel. The fall this month has come after crude fell in the previous eight months as the global economy recovered from the pandemic.
Restructuring on cards in absence of moratorium: HDFC Securities
Accordingly, HDFC Securities, expects banks to remain selective in restructuring stressed assets. "We believe that NBFCs (lender category) and the MSME sector (borrower category) are likely to witness the highest amount of restructuring," the brokerage firm said in a report. Besides, the firm expects a stop-start pattern in loan disbursements during Q1FY22, particularly in retail.
Q1FY22 earnings ignites interest in L-Caps; markets' seen rising
Accordingly, market observers, opined that healthy earnings announced till now have ignited investors' interest in largecaps and expanded volumes. Lately, Infosys and Wipro have come out with encouraging quarterly numbers. In the upcoming week companies such as ACC, HCL Tech, Asian Paints, Bajaj Finance, Bajaj Auto, HUL, JSW Steel, ICICI Bank and ITC are expected to come out with their quarterly numbers.
SIDBI's FY21 YoY net profit up 3.6%
The institution is engaged in creating an integrated credit and development support ecosystem for Indian Micro, Small and Medium Enterprises (MSME). Declaring the financial results for the year ended March 31, 2021 in its 23rd Annual General Meeting, it said that net profit recorded a growth of 3.6 per cent to Rs 2,398 crore in FY21, from Rs 2,315 crore in FY20.
Amid online boom, industry bigwigs on shopping spree for internet-based companies
Several mega acquisitions have taken place in the past one year, the latest being the announcement made by Reliance Retail of acquiring controlling stake in the home-grown online search engine platform Just Dial for Rs 3,497 crore. Recently, Tata Sons' subsidiary Tata Digital acquired a majority stake in Supermarket Grocery Supplies Private Ltd, the company which is better known as BigBasket.
India's forex reserves rise by over $1.8 bn
According to the Reserve Bank of India's (RBI) weekly statistical supplement, the reserves increased to $611.895 billion from $610.012 billion reported for the week ended July 2. India's forex reserves comprise foreign currency assets (FCAs), gold reserves, special drawing rights (SDRs), and the country's reserve position with the International Monetary Fund (IMF).
Reliance Retail to acquire controlling stake in Just Dial for Rs 3,497 cr
Post the agreements, RIL will acquire 1.31 crore equity shares by RRVL from VSS Mani (equivalent to 15.62 per cent post preferential share capital) at a price per share of Rs 1,020. RRVL will hold 40.95 per cent and would make an open offer to acquire up to 26 per cent stake in accordance with takeover norms. RRVL would make a public announcement to the public shareholders of Just Dial to acquire up to 2.17 crore equity shares of Just Dial.
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