Sensex closes modestly lower on fag-end sell-off
Equity benchmark Sensex slipped over 66 points to close at 52,586.84 on Friday, hit by fag-end selling in finance and metal stocks following sluggish investor sentiment in global markets,PTI reported.
The 30-share BSE index fell 66.23 points or 0.13% to close at 52,586.84, while the broader NSE Nifty dipped 15.40 points or 0.10% to 15,763.05.
Sun Pharma surged 10% to be the top gainer followed by Tech Mahindra. Power Grid, Bajaj Auto NTPC and HCL tech were among the other top gainers.
Bajaj Finance was the top loser in the Sensex pack, shedding over 2.5 per cent, followed by SBI, Bajaj Finserv, Tata Steel, Asian Paints and Axis Bank.
Fed’s Powell bets economy will navigate new coronavirus surge
Federal Reserve Chair Jerome Powell’s belief that the U.S. economy has “learned to handle” the coronavirus and won’t be swamped in a fresh wave of infections or by rising inflation may get tested in coming weeks as schools reopen, supply chains remain clogged, and federal unemployment benefits wane.
“We’ve kind of learned to live with it,” Powell told reporters.
The economy returned to its pre-pandemic level of output in the second quarter, according to gross domestic product data released by the Commerce Department on Thursday, a rebound that came earlier than many expected. But the report also showed personal income dropping alongside a decline in federal transfer payments and the economy growing at an annual rate of 6.5%, slightly below the 7% expected by the U.S. central bank.
Since April Fed has stopped referring to the pandemic as a factor weighing on the economy, emphasized the impact of vaccinations, and this week said, in effect, that the virus would remain as a future risk, but not a significant one, Reuters reported.
U.S. regulator freezes Chinese company IPOs over risk disclosures
The U.S. Securities and Exchange Commission (SEC) has stopped processing registrations of U.S. initial public offerings (IPOs) and other sales of securities by Chinese companies while it crafts new guidance for disclosing to investors the risk of a new regulatory crackdown by Beijing, according to people familiar with the matter.
Chinese listings in the United States have reached a record $12.8 billion so far this year, according to Refinitiv data, as companies swooped in to capitalize on the U.S. stock market reaching daily record highs.
Some 418 Chinese companies are listed on U.S. exchanges, according to Refinitiv.
No major U.S. IPO of a Chinese company is in the works following Didi, as the business community in China tries to get to grips with the regulators’ intentions, according to a Reuters report.
High tariffs faced by Indian exporters in EU, UK affecting exports performance: Govt
High tariffs faced by domestic exporters in the European Union and the UK as compared to zero duty access given by these countries to nations like Bangladesh and Cambodia are affecting India’s exports performance, Parliament was informed on Friday.
Minister of State for Textiles Darshana Jardosh also said that the textile industry has been hugely affected due to the outbreak of COVID-19 pandemic.
India’s textiles exports in 2020 stood at $29.61 billion, while the shipments of Bangladesh, Vietnam and Cambodia in that year were aggregated at $37.95 billion, $37.10 billion and $7.77 billion, respectively.
Textiles exports to China have increased to $1.56 billion in 2020-21 as against $1.13 billion in 2019-20.
Sun Pharma reports June-quarter net profit of 14.44 billion rupees
Sun Pharmaceutical Industries Ltd. reported a net profit of 14.44 billion rupees in the June ending quarter compared to a loss of 16.56 billion Rupees in the previous year.
Its total revenue from operations in the June-quarter stood at 97.19 billion rupees compared to 75.85 billion Rupees a year ago.
Sun Pharma shares rose 3.5% after the results.
Aditya Birla Fashion & Retail suffers June-quarter net loss of 3.47 billion rupees
Aditya Birla Fashion & Retail suffered a net loss of 3.47 billion Rupees in the June ending quarter compared to a loss of 4.08 billion Rupees in the previous year.
Its revenue from operations stood at 8.12 billion Rupees in the June-quarter compared to 3.23 billion Rupees a year ago.
SoftBank Q1 performance seen buoyed by China IPOs; crackdown clouds outlook
SoftBank Group Corp is set to report a boost to Vision Fund returns when it posts quarterly earnings due to the U.S. listing of Chinese portfolio firms, just as regulatory scrutiny of such firms clouds the outlook for the Japanese conglomerate, according to a Reuters report.
The fund’s listed portfolio swelled in April-June with initial public offerings (IPO) of ride-hailer Didi Global Inc , “Uber for trucks” firm Full Truck Alliance Co Ltd and edutech startup Zhangmen Education Inc.
However widespread regulatory action in China’s technology and education sectors has spooked investors, wiping billions of dollars from the value of U.S.-listed Chinese firms.
SoftBank will likely book a first-quarter net loss of 175 billion yen ($1.60 billion) when it reports on Aug. 10, according to an average of two analyst estimates compiled by Refinitiv.
Asian shares extend losses, set for worst month since March 2020
Asian shares fell on Friday, extending their biggest monthly drop since the height of global pandemic lockdowns last March on lingering investor concern over regulatory crackdowns in China on the education, property and tech sectors.
On Friday, MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.33%, taking its losses for the month to more than 7%. Japan’s Nikkei dipped 1.80%, its 11th straight month of falls on the last trading day in the month.
Chinese blue-chips fell 1.06%, and Hong Kong’s Hang Seng fell 2.11%, with tech stocks once again dragging. The Hang Seng Tech index shed more than 4%, deepening its fall for the month to more than 18%. Seoul’s Kospi fell 1.16%.
The falls in Asia came despite robust U.S. earnings and forecasts, as well as strong second-quarter economic growth figures, that helped to lift Wall Street to record intraday highs on Thursday, according to a Reuters report.
China finance minister says will make no sharp turn in fiscal policy in second half
China’s finance minister Liu Kun said at a news conference in Beijing on Friday that the country will make no sharp turn in fiscal policy in the second half of 2021.
He further noted that total new taxes and fees reductions for the whole year were expected to exceed 700 billion yuan ($108.42 billion), according to a Reuters report.
First Solar plans to invest $684 million in a new solar manufacturing facility in India
First Solar Inc said on Friday said it intends to invest $684 million (about ₹5,000 crore) in a new a fully vertically integrated photovoltaic (PV) thin-film solar module manufacturing facility in India.
The facility is projected to have a nameplate capacity of 3.3 gigawatts (GW) DC. It is expected to be built in Tamil Nadu and commence operations in the second half of 2023.
“India is an attractive market for First Solar, and not simply because our module technology is advantaged in its hot, humid climate,” First Solar CEO Mark Widmar, said in a statement. “It is an inherently sustainable market, underpinned by a growing economy and appetite for energy, with a well-defined goal that will need over 25 GW of solar to be deployed every year for the next nine years.”
Musk’s Neuralink raises over $200 million from Google Ventures, others
Elon Musk’s Neuralink said on Thursday that it has raised $205 million in a funding round, led by Vy Capital, with participation from Google Ventures, DFJ Growth, Valor Equity Partners, Craft Ventures, Founders Fund, and Gigafund.
The funds from the round will be used to take Neuralink’s first product, the N1 Link, to market and accelerate the research and development of future products, the firm noted.
A group of leading executives and entrepreneurs also joining the round, including Robert Nelson, Blake Byers, Sam Altman, Fred Ehrsam and Ken Howery.
Tech Mahindra shares hit 52-week high after Q1 earnings
Shares of Tech Mahindra surged nearly 10% on Friday after the firm posted 39% growth in June quarter consolidated net profit.
The company’s shares jumped 9.68% to hit a 52-week high of Rs. 1,237 on BSE and NSE.
Tech Mahindra on Thursday reported 39% growth in June quarter consolidated net profit at Rs. 1,353 crore. The firm’s revenue from operations rose almost 12% to Rs. 10,197.6 crore.
Mastercard profit rises on overall spending boost
Mastercard’s profit rose in the June ending quarter, beating analyst estimates, driven by continued recovery in domestic and cross-border spending.
The company on Thursday posted a 36% increase in second-quarter profit.. Mastercard’s cross-border volumes rose 58% on a local currency basis, fuelled by a pickup in international travel.
“International travel is still in the early stages of recovery and represents additional upside potential,” CEO Michael Miebach, said in a statement.
The firm’s net income rose to $1.9 billion, or $1.95 per share, from $1.4 billion, or $1.36 per share a year earlier. Analysts on average had expected a profit of $1.75 per share, according to Refinitiv IBES data.
TVS Motor earmarks ₹1,000 crore for EVs
TVS Motor CMD Venu Srinivasan said that the company has lined up several new products during the current fiscal in the mid to premium segment.
“This is the gap that needs to be filled, and will also lead to the volume growth,” Srinivasan told shareholders. Electric vehicle (EV) adoption in India is being accelerated with significant policy interventions and rising fuel costs, he added.
He further noted that the firm was aggressively ramping up to establish a dominant presence in EV segment by earmarking ₹1,000 crore to manufacture two and three wheelers ranging from 5 kW to 25 kW under a separate vertical.
Rupee opens on flat note, gains marginally in early trade
Indian Rupee opened on a flat note at 74.30 against the U.S. dollar on Friday, after closing at 74.29 on Thursday.
In Friday’s early trading, the rupee inched higher by 2 paise over its previous close, touching 74.27 against the dollar.
According to Forex traders, foreign fund outflows and firm crude oil prices could weigh on investor sentiment and cap the appreciation of the rupee, a PTI report noted.
Oil falls but heads for strong weekly gain on demand growth
Oil prices fell on Friday but were on track to post strong weekly gains with demand growing faster than supply.
Brent crude oil futures for September fell 0.6%, to $75.60 a barrel, while U.S. West Texas Intermediate crude oil futures fell 0.5%, to $73.19 a barrel.
Both benchmark contracts were headed for gains of about 2% for the week, buoyed by indications of tight crude supplies and strong demand in the U.S, a Reuters report noted.
Microsoft looks to tap into Oyo before its potential IPO
Microsoft is in advanced talks to invest in hotel chain Oyo at a $9 billion valuation, Reuters reported on Thursday, citing a source familiar with the matter.
The deal may be announced in the following weeks and would be a prelude to an initial public offering (IPO) by Oyo, the report noted.
Oyo founder and CEO Ritesh Agarwal said earlier in the month that the firm would consider a potential public offering, however did not provide a timeline.
The deal may involve Oyo shifting to use Microsoft’s cloud services, a TechCrunch report noted earlier on Thursday, citing people familiar with the matter.
Earnings announcements expected today
Several companies are expected to release their earnings report on Friday, for the June ending quarter, including Aditya Birla Fashion and Retail, Allied Digital Services, Bandhan Bank, Bharat Heavy Electricals, Birla Tyres, Blue Dart Express, Britannia Industries, Cholamandalam Investment and Finance Company, LT Foods, Exide Industries, Finolex Industries, HIL, Hindustan Organic Chemicals, Jindal Saw, JK Paper, JSW Energy, Nazara Technologies, Shriram Transport Finance, Sundaram-Clayton, Sun Pharmaceutical Industries, V-Guard Industries, and Zydus Wellness.
Didi Global denies media report it plans to go private
China’s Didi Global on Thursday denied a media report that the company was considering going private to placate Chinese regulators and compensate investor losses since it listed on the New York Stock Exchange in June after raising $4.4 billion in an initial public offering (IPO).
The Wall Street Journal, citing people familiar with the matter, reported that the company has been in discussions about delisting itself as China continues its crackdown, and is said to have received support from cybersecurity authorities.
“The company affirms that the above information is not true,” Didi said, referring to the report. “The company is fully cooperating with the relevant government authorities in China in the cybersecurity review of the company.”
High fiscal borrowings won’t crowd out private sector: CEA
Concerns about high government borrowings crowding out the private sector’s fund-raising efforts were misplaced and not based on evidence, Chief Economic Advisor Krishnamurthy Subramanian asserted on Thursday reacting to comments made earlier by a member of the Securities and Exchange Board of India (SEBI).
“It’s a very tempting argument to make but the data does not support it,” Dr. Subramanian said. “It’s a very humble request that we must use the latest evidence to drive our thinking on economic matters and that’s what leads to better policy making,” he added.
Benchmark Indian indices open higher
Indian indices opened higher on Friday. BSE Sensex opened at 52,792.36, up 139.29 points, while Nifty opened at 15,800.60, up 22.15 points.
Major Asian stock indices open in red, dip in early trade
Major Asian stock indices opened in red on Friday and dipped in early trade. Japan’s Nikkei opened at 27,677.89, down 104.53 points, and Topix at 1,922.19, down 5.24 points, while South Korea’s Kospi opened at 3,234.37, down 8.28 points.
Hong Kong’s Hang Seng, opened at 26,042.84, down 272.48 points. The stock index recovered about 3% in the previous session after it plunged over 8% early this week.
Investors in the Asian equity market would monitor how shares of Chinese firms close a week of volatile trading.
On Thursday, the 30-share BSE index climbed 209.36 points or 0.40% to close at 52,653.07, while the broader NSE Nifty advanced 69.05 points or 0.44% to 15,778.45.
Major U.S. indices close in green driven by strong earnings, forecasts
The three major U.S. indices rose on Thursday and closed in green driven by strong U.S. earnings and forecasts. Meanwhile, data released by the U.S. Bureau of Economic Analysis showed that the country’s gross domestic product (GDP) grew at an annual rate of 6.5% in the second quarter of 2021.
The S&P 500 closed at 4,419.15, up 18.51 points or 0.42%, the Dow Jones Industrial Average rose 153.60 points or 0.44% to close at 35,084.53, and the Nasdaq Composite ended at 14,778.26, up 15.68 or 0.11%.