Market Highlights: Sensex, Nifty end marginally higher; RIL, Infy shine

Indian shares fell at the start on Monday; however, moved to the green in the second half and ended with minor gains after the wholesale price index declined 1.36% year-on-year in July. The investor sentiment was subdued at the start weighted by concerns around local industrial output and weak consumption in top consumer China.

The Nifty 50 index gained 6 points to end at 19,434, while the S&P BSE Sensex climbed 80 points to close at 65,401. However, only three out of the 15 broad-based Nifty sectoral indices gained in today’s session.

Investors are awaiting India’s retail inflation data, which likely accelerated to 6.40% in July on surging food prices, breaching the upper end of the Reserve Bank of India’s 2%-6% tolerance band for the first time in five months.

Shares of Adani Group stocks fell on Monday after Deloitte resigned as auditor of the Adani group’s port company. JSW Steel, Apollo Hospitals and SBI were other major laggards. LTIMindtree, Infosys, HUL, and RIL gained more than a per cent each and were among the major gainers.

Media, IT and FMCG were among the major sectors to have gained today, however, most sectors ended lower with Metal shedding more than 1.5% and Bank, Auto and Pharma ending lower.

Asian markets posted sharp losses in Monday trade after falls in US tech stocks and as concerns over China’s property sector weighed on sentiment.

Japan’s Nikkei share average slid more than 1% as chip stocks followed U.S. peers lower and a retreat in crude oil weighed on energy companies. The Nikkei sank 1.27%. Of the Nikkei’s 225 components, 175 fell versus 48 that rose, with two flat. The broader Topix lost 0.98%.

China and Hong Kong stocks fell Monday as investor sentiment remained subdued after disappointing credit data added to worries about China’s slowing economy, compounded by property shocks. China’s blue-chip CSI300 Index and the Shanghai Composite Index closed down 0.7% and 0.3%, respectively. The Hong Kong benchmark Hang Seng Index was down 1.6%.

Trading in European stocks was muted as investors weighed signs of trouble in the Chinese property market before turning their attention to Federal Reserve policy minutes later in the week.

UK’s exporter-heavy FTSE 100 index opened lower on Monday weighed down by mining and oil firms shares, as worries mounted over China’s economic recovery and its debt-laden property market.

Salasar Techno’s shares have demonstrated an upward trend since the commencement of the new financial year 2023-24. The small-cap stock, initially priced around ₹50, has seen an increase from approximately ₹36.55 to ₹52 per share on the NSE, reflecting a growth of over 40% during this financial year. Over the past year, the stock has risen from ₹29.60 to ₹52 per share, marking a substantial gain of more than 70%.

In the current trading session, Salasar Techno’s share price opened higher and reached an intraday high of ₹52 per share. This level is only 12.50% below its all-time high of ₹58.50 per share on the NSE. Market observers attribute this surge in the small-cap stock to the announcement of the company’s Q1 2023 results. (Read More)

The recent report by the Comptroller and Auditor General (CAG) regarding the Ayushman Bharat – Pradhan Mantri Jan Arogya Yojana, presented in Parliament this week, highlights some astonishing and significant figures.

As per a report by FIT Quint, the report reveals that around 750,000 beneficiaries were associated with an invalid mobile number, specifically 9999999999.

Moreover, the CAG identified 4,761 registrations that were linked to only seven Aadhar numbers, indicating potential irregularities. (Read More)

Home-grown Ramkrishna Forgings on Monday announced bagging a USD 13.65 million (about ₹107 crore) order from clients in the North American region.

The order is for supply of rear axle and transmission components, the company said in regulatory filing.

“Ramkrishna Forgings strengthens its North American presence through…securing a substantial business contract valued at USD 13.65 million for supplying rear axle and transmission components,” it said.

The awarded contract pertains to the production and supply of rear axle and transmission components for Class 5, 6, and 7 vehicles. With this accomplishment, the company said it is strategically expanding its footprint in North America and strengthening its position within the light vehicle sector. (PTI)

SUN TV Network Limited releases earnings report for the quarter ended 30th June 2023:

Highlights:

• Revenues up ~10.38 % @ Rs.1,317.78 crs.
• Domestic Subscription up ~6.02 % @ Rs.435.34 crs.
• EBITDA up ~2.96% @ Rs.786.46 crs.
• Profit after tax up ~18.53 % @ Rs.582.80 crs.
• First Interim Dividend of 125 % declared.

Merchandise goods exports in July slips 16% compared to last year. Imports in July reduce to $52.92 billion from $63.77 billion in July 2022: Govt data. Exports in July contract to $32.25 billion from USD 38.34 billion in july 2022: Govt data.

Rajani Sinha, Chief Economist, CareEdge Ratings on WPI: The wholesale price index (WPI) continued in a deflationary zone for the fourth consecutive month in July, helped by lower metals, chemicals, textile, manufactured food, and mineral oils prices. However, the pace of annualised decline in WPI slowed significantly compared with the previous two months, with the spike in food prices led by vegetables restricting the downside. Consequently, sequential momentum in WPI turned positive after two months.

If the food prices continue to trend upward, the deflationary trend could end, and WPI inflation could turn marginally positive in the coming months. Additionally, the uptrend in global crude oil prices, global edible oil prices, and uneven monsoon distribution domestically pose an upside risk to the outlook. Nevertheless, we expect the WPI inflation for this fiscal at a subdued level (in the range of 1-2%) with positive implications for the retail inflation trajectory.

Indian pharmaceutical company Divi’s Laboratories reported a 49.2% fall in quarterly profit, missing analysts’ estimates, as the generic drug maker grappled with pricing pressures in key markets like the United States.

The company reported a consolidated profit of 3.56 billion rupees ($42.9 million) for the first quarter ended June 30, compared to 7.02 billion rupees a year ago.

Analysts, on an average, had expected a profit of 4.17 billion rupees, according to Refinitiv data.

Revenue from operations fell 21.2% to 17.78 billion rupees.

The Hyderabad-based company’s core business is manufacturing of active pharmaceutical ingredients (API), which are chemical compounds in a drug that help produce desired health effects. (Reuters)

Cyndrella Carvalho of JM Financial Institutional Securities recommendations on Zydus Lifesciences | Margin guidance raised | BUY INR 690 

ZYDUSLIF reported a stellar quarter yet again led by US outperformance (5th consecutive quarter). While revenues grew 26%YoY, EBITDAM expanded meaningfully to 29% (c.25% ex-Revlimid) driven by increased contribution from gRevlimid, gTrokendi, new launches and strong Europe and EM business. The company’s near-term launch pipeline remains strong with 3 trans-dermal launches from Moraiya, 2-REMS products (in 3Q and 4Q), gVascepa (3Q launch) and new launches (30-35 planned in FY24 including Chantix, Indomethacin etc.). These launches will be cumulatively offsetting base erosion (mid-single digit) and Asacol competition. This along with higher gRevlimid share compelled ZYDUSLIF to raise their US business guidance to double digit growth. India business was largely in line with JMFe growing 10%YoY (12% adjusted for NLEM price impact) and we expect it to grow in early double digits. Consumer Wellness, despite their seasonally strong quarter, were below expectations due to lower Glucon-D sales. EMs and Europe reported sturdy growth of 30%YoY. Management revised their EBITDA margin guidance upwards by additional 100bps implying 150-200bps margin expansion in FY24. We upgrade our earnings by 10%/12% for FY24/25 to factor in higher US sales and better margins. We believe domestic earnings momentum; near-term US launches and margin sustenance will facilitate ZYDUSLIF to continue a sustainable growth path despite competition in base US business. We maintain BUY with a Mar’24 Price Target of INR 690 (including gRevlimid NPV of INR 32).

On Monday, the Securities and Exchange Board of India (Sebi) appealed to the Supreme Court for a 15-day extension to finalize its investigation into allegations made by US short-seller Hindenburg Research against the Adani group.

Sebi, originally expected to present its findings on that day, informed the apex court that it has completed its investigation into 17 out of the 24 transactions that were under scrutiny, as reported by Reuters.

The market regulator has requested additional information from various other regulatory bodies and foreign jurisdictions to chart the next steps in its course of action. (Read More)

Chris Miller, a semiconductor expert, suggested India to be patient with its objectives in the ‘technology-invented’ and ‘challenging’ semiconductors industry, while also asserting that the country possesses certain advantages to win investments in its production cycle, according to a report published by Hindustan Times.

He also highlighted that Taiwan plays a crucial role in the manufacturing of semiconductors, and foresaw the devastating effects a war in the Taiwan Straits would have on the world economy, the HT report said, adding that the semiconductor supply chain is controlled by a few dominant companies. (Read More)

After experiencing losses in previous quarters, SpiceJet Ltd, the financially challenged airline, managed to achieve profitability once again in the first quarter of FY24. The low-cost carrier disclosed a standalone net profit of ₹204.56 crore for the quarter ending in June 2023, a notable shift from the net loss of ₹788.83 crore recorded in the same quarter of the previous fiscal year.

For Q1FY24, the company’s standalone revenue from operations saw an 18.5% decrease to ₹2,001.74 crore compared to ₹2,456.76 crore in the same period, year-on-year.

Looking at the consolidated figures, SpiceJet reported a net profit of ₹197.63 crore in the quarter ending June 2023, in stark contrast to the net loss of ₹783.62 crore incurred in the corresponding quarter of the previous year. (Read More)

India’s wholesale price index fell 1.36% year-on-year in July, but the decline was smaller than expected because of higher prices for food and some commodities.

Economists polled by Reuters had estimated the wholesale price index for July would fall 2.70%. It fell 4.12% in June.

In July, fuel and power prices fell 12.79% from a year earlier, compared with a fall of 12.63% in June, and prices of primary articles rose 7.57% versus a fall of 2.87%.

Food prices sharply rose 7.75% year-on-year, compared with a fall of 1.24% in June, and manufactured product prices fell 2.51% in July, against a 2.71% fall the previous month. (Reuters)

The Producers Guild of India and Multiplex Association of India said the past weekend of 11-13 August was the busiest single weekend post re-opening following the covid-19 pandemic. The weekend saw a new all-time theatrical gross box office record with collections over ₹390 crore, drawing more than 2.10 crore moviegoers to theatres across the country, which is also the highest combined admissions record in the last 10-year history, the two bodies said.

The weekend saw the release of four tentpole films across languages—period drama Gadar 2 and Akshay Kumar and Pankaj Tripathi-starrer OMG 2, both in Hindi besides Rajinikanth’s Jailer (Tamil) and Chiranjeevi’s Bhola Shankar (Telugu). (Read More)

Nishant BAGRECHA Rohan KALLE of InCred Equities recommendations on Raymond Ltd: On a strong footing despite seasonality – ADD – Maintained | INR1,974 TP:INR2,320

■ Net sales growth of 2.5% yoy in 1QFY24 is healthy, despite a seasonally weak quarter for the company. Store network optimization continues.

■ We expect better sales growth in 2HFY24F due to the upcoming festive and wedding-related demand. Growth in bookings in the realty segment is healthy.

■ Maintain our FY24-26F estmates. Retain ADD with higher SOTP Sep 2024F based target price of Rs2,320 (upside of ~18%).

Despite robust growth in gold loan AUM, the stock fell nearly 5% on the NSE in Monday’s intra-day trade. The growth in the key gold loans business has come at the cost of lower margin. “Muthoot reported a healthy sequential growth in gold loans but this growth was accompanied by a corresponding trade-off between spreads and margins. Striking an appropriate balance between loan growth and margin will still remain an important deliverable in FY24,” said a Motilal Oswal Financial Services report. (Read More)

Adani group stocks fell in the range of 2-5% on Monday with Adani Enterprises shares declining the most by over 5%, being the top loser on the Nifty index.

The Adani Group stocks are in focus as the capital market regulator Securities and Exchange Board of India (Sebi) is likely to submit its report to the Supreme Court of India on its probe over the allegations made by US-based Hindenburg Research against the Adani Group.

The Supreme Court had granted Sebi an extension until August 14 to conclude its investigation into allegations against the billionaire Gautam Adani-led conglomerate made by the US short-seller.

According to a CNBC-TV18 report, the Supreme court has listed the case for hearing on August 29. (Read More)

UBS is confronting a new legal predicament linked to its contentious acquisition of Credit Suisse, as numerous individual shareholders, including former employees of Credit Suisse, are preparing to submit a lawsuit in Zurich’s commercial court. This legal action is set to take place today, as reported by the Financial Times.

The Swiss Investor Protection Association (SASV), which represents retail investors, aims to initiate the claim on behalf of approximately 500 Credit Suisse equity investors who incurred substantial losses during UBS’s takeover of the bank in March. Notably, the takeover, orchestrated by Swiss authorities, did not afford shareholders in either institution the opportunity to vote on the transaction. UBS paid CHF 3 billion ($3.4 billion) for Credit Suisse, an amount that was significantly less than half of the bank’s market value on the day preceding the finalization of the deal. (Read More)

Apollo Hospitals Enterprises Ltd reported a nearly 47% year-on-year decline in consolidated net profit during the June quarter due to one-off factors. Nonetheless, strong performance in the healthcare services (hospitals) division helped maintain a positive outlook, analysts said.

The hospital segment remains robust with average revenues per operating bed (ARPOB) at ₹57,760, up 11% year-on-year, and segment’s profits at ₹264 crore, up 19% year-on-year. Overall occupancy was 62% and the company plans to achieve more than 70% over the next two years, Group CFO Akhileswaran Krishnan said. (Read More)

Nykaa’s share price today witnessed heavy beating during early morning deals and hit intraday low of ₹130.10 apiece on NSE within a few minutes of the stock market’s opening bell, logging around 11 per cent dip from its Friday close of ₹146.20 per share.

On reasons for dip in Nykaa share price today, Vaibhav Kaushik, Research Analyst at GCL Broking said, “Nykaa shares are nosediving today due to two major reasons — not so encouraging Q1 results 2023 and weak stock market sentiments.”

GCL Broking expert advised Nykaa shareholders to hold the stock with strict stop loss at ₹125 apiece levels.

Avinash Gorakshkar, Head of Research at Profitmart Securities said, ‘Nykaa results are not too bad but due to weak global sentiments, Dalal Street is reeling under the sell off heat. We may see sharp rebound in the stock if Nifty manages to sustain above 19,250 levels.” (Read More)

Amit Anwani – Research Analyst, Prabhudas Lilladher Pvt Ltd views on Kalpataru Projects International (KPIL IN) – Rating: BUY | CMP: Rs635 | TP: Rs732

Q1FY24 Result Update – Healthy topline visibility; margin revival a key

Quick Pointers:

§ Strong domestic T&D prospects of ~Rs250bn and ~$3.5bn in international markets, providing healthy revenue visibility.

§ Lower other income amid high base, higher interest cost & effective tax rate drags profitability.

Kalpataru Projects International (KPIL) reported decent quarterly performance with standalone revenue growth of ~15.4% YoY and EBITDA margins remaining broadly flat at 8.7%. Net working capital days improved to 106 days vs 134 days in Q1FY23, driven by efforts towards project closure and timely collections. Order pipeline remains strong across business verticals such as T&D, Water, B&F and Oil & Gas. Management priorities are currently on 1) increasing margin to 9-10% over next 2-3 years, 2) expanding international business in new and existing areas, and 3) strengthening resources via training. Management maintained its FY24 guidance of 30%+ standalone revenue growth, Rs260bn order inflows, 4.5%-5% PBT margin and interest cost below 2% of sales. Debt is likely to be higher compared to FY23 owing to high growth expectations in FY24.

We remain positive on KPP in long run owing to 1) strong order backlog, 2) strong order pipeline across segment, 3) focus on geographical expansion for segment such as Water, Railways, Civil etc. 4) increasing pre-qualification for large contracts and 5) operational & cost synergy arising due to merger. The stock is trading at PE of 15.8x/11.9x FY24/25E. Maintain ‘BUY’ rating on stock with revised SoTP based TP of Rs732 (earlier Rs625), valuing core business at 13x FY25E (11x earlier), owing to robust tendering prospects.

TVS Supply Chain Solutions Limited’s initial public offering (IPO) commenced on August 10, 2023, and is set to conclude today, August 14, 2023. Despite the sluggish market conditions on Dalal Street, the IPO, valued at ₹880 crore, has garnered significant interest from investors. The subscription status of the TVS Supply Chain IPO indicates that the public offering has been subscribed 1.03 times after two days of bidding.

Interestingly, even with the prevailing uncertain market sentiment, the IPO has managed to generate substantial investor participation. Notably, in the grey market, sentiments have remained stable regarding the TVS Supply Chain IPO. Reportedly, shares of TVS Supply Chain Solutions Limited are trading at a premium of ₹25 in the grey market as of today. (Read More)

LKP Securities recommendations on SCHNEIDER ELECTRIC INFRASTRUCTURE LIMITED – Q1 FY24 Result Update: Business momentum remains positive across its traditional and emerging businesses and we expect this to continue as core data improves which reflects on the overall business it operates in with adequate digitalization opportunities and positive outlook ahead. Further, company’s performance has been consistent in FY22, FY23 and Q1FY24 wherein execution has remained strong and expects it to continue with robust order book and pipeline ahead with focus of management on collections. Overall company remains optimistic in the short to mid-term with support from the government in the form of investment, reforms and policies. Considering the FY23 performance we have tweaked our estimates up (margins) accordingly and remain positive ahead and expect the momentum to continue. Hence, we maintain BUY with a revised TP of ₹365.

The Indian rupee opened 16 paise lower at a 10-month low against the US dollar on Monday weighed down by a strong American currency amid a spike in US Treasury yields. The local currency opened at 83.01 a dollar as compared to its previous close of 82.85.

Asian currencies were down between 0.2% and 0.6%. The offshore Chinese yuan dropped to 7.2775 to the dollar, the lowest in one-and-a-half months, Reuters reported. (Read More)

Today, ITC Ltd., the diversified conglomerate, is anticipated to unveil its first-quarter results. The cigarette manufacturing sector of the company is projected to witness a respectable double-digit increase in net profit for the initial quarter of FY24, while revenue is predicted to remain relatively unchanged when compared on a year-on-year (YoY) basis.

According to a brokerage poll conducted by Livemint, it is expected that ITC’s Q1 net profit will surge by 16.7% compared to the previous year, reaching ₹4,886 crore. This growth is attributed to steady advancements in the cigarette and fast-moving consumer goods (FMCG) divisions.

The company’s overall revenue performance in Q1FY24 is anticipated to exhibit modest growth, with a projected 1.5% increase. Analysts’ average estimates suggest that ITC is likely to report a revenue of ₹17,548 crore for the quarter.

Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services.

The market construct has turned a bit negative. The spike in the dollar index to 103 and the U.S. 10-year bond yield rising to 4.18 are negative for capital flows to emerging markets. The FPI sell figure of ₹3073 crores last Friday is in tune with these negative trends.

The Bank Nifty has been a pressure point for the markets during the last several trading days. The RBI decision to raise the CRR of banks to neutralise the excess liquidity created by the withdrawal of ₹2000 notes has added to the negative sentiments in the banking sector. However, leading banking stocks would be good bargain buys on market corrections since the fundamentals of the sector remain strong and valuations are fair.

Investors should exercise caution for the near term and wait for the market to consolidate.

An increasing number of economists — including the Federal Reserve’s own staff — are predicting the US will escape a recession, though it’ll be well into 2024 before anyone can be sure of it.

Fed Chair Jerome Powell says he expects the central bank to navigate a path where the US economy expands with inflation rates falling back to the 2% target, though the task will be challenging.

On one side, a failure to act aggressively enough against price pressures could result in rebounding inflation that requires harsher moves later. There’s also the risk that the lagged effects of what’s already the most aggressive tightening in four decades could tip the economy into recession. (Read More)

Foreign portfolio investors (FPIs) performance remains muted on D-Street so far in August, far lower than the inflows sustained in the last three months. FPIs bought ₹3,272 crore worth of Indian equities and infused a total of ₹6,241 crore as of August 11, taking into account debt, hybrid, debt-VRR, and equities, according to National Securities Depository Ltd (NSDL ) data. Month till-date, FPIs have sold Indian stocks to the tune of ₹7,543 crore, according to analysts.

However, FPIs continue to invest in capital goods and selectively in IT. However, the trend of FPI selling in August has been countered by strong buying led by domestic institutional investors (DIIs). (Read More)

Apollo Hospitals Enterprises announced a 46.5% year-on-year (YoY) decrease in its consolidated net profit, reporting ₹173.4 crore for the June quarter of the present fiscal year (Q1FY24), as opposed to a profit of ₹323.9 crore achieved in the corresponding quarter of the previous year.

Nevertheless, the company’s revenue from operations exhibited a positive trend, marking a 16.4% YoY increase to reach ₹4,417.8 crore, in comparison to ₹3,795.6 crore recorded in Q1FY23. Apollo Hospitals Enterprises also stated in a BSE filing that its consolidated EBITDA, excluding 24/7 operating costs and ESOP charges, stood at ₹712.9 crore, reflecting a 13% YoY rise.

Breaking down the results by segment, revenue from healthcare services grew to ₹2,293.7 crore, showing a 13% YoY expansion. Additionally, Healthco revenues increased to ₹1,805.4 crore, demonstrating a substantial 22% YoY growth. The company noted that Healthco is progressing toward reaching break-even status in Q4FY24. (Read More)

Over the weekend, Rail Vikas Nigam Limited (RVNL) unveiled its financial results for the first quarter of fiscal year 2023-24 (Q1FY24). The report revealed a notable 15% year-on-year increase in its consolidated net profits, which reached ₹343 crore in Q1 compared to ₹297.6 crore during the corresponding quarter in the previous fiscal year. Concurrently, the revenue from operations of RVNL experienced a significant 20% year-on-year surge, rising to ₹4,640.7 crore from ₹5,571.5 crore recorded in Q1FY23.

However, in a sequential comparison, the company’s net profit for the quarter ending March 2023 witnessed a 4% decline, settling at ₹359.3 crore. Similarly, the revenue from operations for RVNL dipped by 2% quarter-on-quarter, totaling ₹5,719.9 crore during Q4FY23. (Read More)

Top stocks in focus:

1. HDFC Bank – Concerns over funding after merger.

2. ONGC – 102.6% rise in net profit.

3. Adani Ports – Appoints new auditor.

4. Aurobindo Pharma – 22.5% decline in net profit.

5. RVNL – 15% rise in net profit.

6. Apollo Hospitals – 46.5% decline in net profit.

7. Zydus Lifesciences – 30% revenue growth.

8. Jindal Steel and Power – 14.37% fall in PAT.

9. Glenmark Pharma – 18% decline in net profit.

10. FSN E-Commerce Ventures – 8% rise in total net profit. (Read More)

The Union government is likely to disburse up to ₹600 crore to South Korea’s Samsung Electronics Co. Ltd for the first year under the production-linked incentive (PLI) scheme for mobile phone manufacturing, three people aware of the development said.

This would be the largest payout ever under the scheme, the first in a series of similar schemes rolled out to incentivize domestic manufacturing.

The government may release the incentive amount by the month-end, the first of the three officials said, while the second official said the decision to release it was taken at the top levels of the government after due consideration. The officials spoke on condition of anonymity. (Read More)

Vaishali Parekh, Vice President — Technical Research at Prabhudas Lilladher has recommended three intraday stocks for today, here we list out full details in regard to those day trading stocks:

1] IRCTC: Buy at ₹662, target ₹694, stop loss ₹653;

2] NOCIL: Buy at ₹232.50, target ₹242, stop loss ₹228; and

3] Schneider Electric: Buy at ₹315, target ₹330, stop loss ₹310. (Read More)

On August 12, Aurobindo Pharma released its financial results for the April-June quarter of fiscal year 2023-24 (Q1FY24). The report outlined a decrease of 22.5% in net profit, which amounted to ₹540 crore in contrast to the ₹697.6 crore recorded during the corresponding period in the previous year. However, the pharmaceutical major’s revenue from operations during the initial quarter of the current fiscal year showed a positive trajectory, reaching ₹6,850.5 crore. This represented a growth of 9.9% compared to the figure of ₹6,236 crore in the same period of the preceding year.

The company’s performance on the operational front exhibited improvement in the June quarter, with its earnings before interest, taxes, depreciation, and amortization (EBITDA) surging by almost 23% to ₹1,151.4 crore. This was in contrast to the ₹936.5 crore recorded during the same period in the previous year. Furthermore, the EBITDA margin expanded to 16.8% in the quarter under review, a notable increase from the 15% observed in the corresponding quarter of the previous year. (Read More)

On August 11, Oil and Natural Gas Corporation (ONGC) unveiled its financial results for the April-June quarter of fiscal year 2023-24 (Q1FY24). The report indicated a remarkable upsurge of 102 percent in their consolidated net profit, reaching ₹17,383 crore as opposed to ₹8,580.75 crore during the same period in the previous year.

During the initial quarter of the current fiscal year, the state-owned petroleum behemoth recorded a revenue from operations amounting to ₹1,63,823 crore. This marked a decrease of 10 percent compared to the figure of ₹1,82,894 crore in the corresponding period of the preceding year. (Read More)

Following the prosperous $40 billion merger with its parent company, private lender HDFC Bank’s CEO, Sashidhar Jagdishan, highlighted funding as a potential risk, according to a report by PTI.

Jagdishan expressed his concerns to shareholders during the company’s inaugural annual general meeting held after the merger’s official commencement on July 1. He remarked, “As you are aware, the funding aspect poses certain risks associated with the merger.”

At present, HDFC has not fully achieved its goals in securing all the relief it had requested from the Reserve Bank of India (RBI) regarding its financial obligations. (Read More)

Deloitte Haskins and Sells Llp’s resignation letter as Adani Ports and SEZ Ltd’s statutory auditor revealed that the US-headquartered Big 4 auditor resigned prematurely primarily due to lack of clarity on transactions with certain parties alleged in the 24 January Hindenburg Research report, and because of the ₹1.75 trillion Gautam Adani-led company’s resistance to conduct an independent external evaluation.

As a “material weakness” identified as at 31 March, Deloitte said, “The company (Adani Ports) did not have an appropriate internal control system in respect of conducting an external examination of allegations made on the company.”

Deloitte said Adani Ports did not have adequate internal control system to even examine veracity of allegations ( made by Hindenburg) on related party relationships, which could potentially result in possible adjustments or disclosures of related party relationships, balances and transactions in the standalone financial statements.

A ‘material weakness’ is a deficiency in internal financial control, in the absence of which there could be a reasonable possibility that a material misstatement of the company’s annual or interim financial statements will not be detected in time. (Read More)

A choppy day of trading on Wall Street ended Friday with an uneven finish for the major stock indexes, as mixed economic data stoked worries that the Federal Reserve’s work on bringing inflation to heel isn’t done.

The S&P 500 slipped 0.1% after wavering between small gains and losses most of the day. The benchmark index fell 0.3% for the week, its second consecutive losing week.

The Nasdaq composite fell 0.7%, reflecting a pullback in big tech companies. The Dow Jones Industrial Average eked out a 0.3% gain.

Stocks lost ground in the early going after the Labor Department reported Friday that its producer price index, which measures inflation before it hits consumers, rose 0.8% last month from July 2022. The latest figure followed a 0.2% year-over-year increase in June, which had been the smallest annual rise since August 2020.

While modest, the increase in wholesale prices last month could help persuade the Federal Reserve that more rate increases are necessary to lower inflation to 2%, the central bank’s goal. (AP)