This year, the combined net profit of 24 index companies, which have declared their June-20 numbers, has declined by 37 per cent year on year, while their revenues, including other income, is down by 21 per cent YoY so far.
If international crude oil prices zoom past the current level of about $90 per barrel and move towards $100 and beyond, middle-class consumers are not going to keep quiet about their discomfort, points out Arun Balakrishnan, former chairman and managing director, Hindustan Petroleum.
The combined profit before tax of 748 companies, which have declared their results for Q1FY21, is down 46 per cent YoY. Their net sales went down by a quarter as the Covid-19 lockdown led to a sharp fall in economic activity.
Demand to remain high with festive season ahead and ongoing price fall
The companies that have seen sharp erosion of market wealth include YES Bank, Indiabulls Housing Finance, Zee Entertainment, Vodafone Idea, and Bharat Heavy Electricals.
'If you see the composition of items which are causing this spike in prices, most of them have little to do with the kharif harvest, except for pulses and vegetables to some extent.' 'I don't know on what basis the government is claiming that food prices will moderate in the weeks to come.'
Bajaj Finance was the top laggard in the Sensex pack, slumping over 10 per cent, followed by M&M, Titan, Hero MotoCorp, ICICI Bank and Tech Mahindra. On the other hand, L&T, Bharti Airtel, IndusInd Bank, UltraTech Cements and NTPC were among the gainers.
The broader NSE Nifty fell 78.75 points, or 0.70 per cent, to close at 11,234.55.
India's industrial production contracted by 3.6 per cent in February, official data showed on Monday. According to the Index of Industrial Production (IIP) data released by the National Statistical Office (NSO), manufacturing sector output declined by 3.7 per cent in February 2021. Retail inflation rose to 5.52 per cent in March, mainly on account of higher food prices, government data showed on Monday. The consumer price index (CPI) based retail inflation stood at 5.03 per cent in February.
The Bhartiya Kisan Union Lokshakti said the principle of natural justice is going to be violated as those appointed to the four-member committee 'have already supported these laws'.
'Earlier-than-expected tapering from the US, followed by rate hikes, and locally, a potential third wave, which mimics the second wave in terms of severity.'
Attorney General K K Venugopal, appearing for the Centre, said that 'Khalistanis' have infiltrated the protest and he will file an affidavit along with the necessary inputs of the intelligence bureau (IB).
Indian corporates might face higher borrowing cost in the overseas market in short-run due to the Greek debt crisis.
If more commodities which have seen a sharp rise in MSP are to be procured, such as pulses, oilseed and cereals, there could be a storage problem. Also, if state-owned Cotton Corporation of India joins in, this problem will aggravate.
The current up move, according to analysts, closely resembles the rally post the global financial crisis in 2008-09, not just in quantum and speed, but also the way small-and mid-cap indices outperformed large-cap peers.
Not surprisingly, equity investors are bidding-up stock prices across sectors and the broader market is now more valuable than pre-Covid levels.
Inflation in food articles, fuel and power contracted in July.
Crude oil prices have more than doubled, pushing up India's import bill and raising fears of a higher current account and fiscal deficit. This will impact corporate earnings.
Government sources said the ministers deliberated on various arrangements being made to deal with increasing cases of coronavirus cases as well as to ensure adequate supplies of medicine and essential commodities during the lockdown.
'They can shift to dynamic asset allocation funds to automatically rebalance their equity exposure.'
Among the key demands of agitating farmers has been a legal guarantee on minimum support price (MSP). The protest reached a crescendo when thousands of farmers from Punjab and elsewhere marched towards Delhi late last year and decided to block the main entry points once they were denied entry. The Centre, on its part, held 11 rounds of discussions with the protesters and even offered to amend some of the provisions without much success. With now one of their chief demands met, farmers have now moved on to force the government to concede on MSP.
In three of the past four years, 10-year returns have been 10 per cent or lower, making equity unattractive, compared to other asset classes.
The world's biggest lockdown that shut a majority of the factories and businesses, suspended flights, stopped trains and restricted movement of vehicles and people, may have cost the Indian economy Rs 7-8 lakh crore during the 21-day period, analysts and industry bodies said.
For a few weeks after the surgery, you will need to take special care to avoid putting any pressure on the joints or the artificial knee, says Dr Subhash Jangid.
What is aggravating the situation is that e-commerce firms are facing huge shortage of delivery personnel. They have not been able to bring back their staff to work, despite offering higher pay and Covid-related insurance packages.
With 3,000 tonnes of imported onion entering the market over the next fortnight, the price should start cooling off. Soon after, the new crop of onions will arrive, further reducing prices.
Mid- and small-cap indices have outperformed the frontline benchmarks - the S&P BSE Sensex (up around 10 per cent) and the Nifty50 (13 per cent) - in the first half of calendar year 2021 (H1-CY21) by rallying 26 per cent and 39 per cent, respectively. The trend, analysts believe, is likely to continue in H2-CY21 as well. The outperformance in H1-CY21 comes on the back of improved earnings and strong inflows from the foreign portfolio investors (FPIs) in Indian equities. However, good monsoon so far, gradual opening up of the economy and the pick-up in the pace of vaccination provides support to the market.
Dhananjay Sinha, co-head, institutional research, Emkay Global Financial Services tells Business Standard in an interview that even as global commodity prices have softened in response to expectations of weaker global demand, the stronger performance of equities is seemingly pre-empting stronger growth.
The oil crisis could not have come at a worse time for the Modi government as its tax collection has fallen short of its 2020-2021 target by Rs 5.2 lakh crore.
Check out some of the stocks that will react on the basis of their numbers in the near term.
According to latest data, crops have been sown in around 72.13 million hectares, which is 8.90 per cent less than the same period last year.
On a year-to-date basis, gold prices have gained 23 per cent as the dollar weakened and as demand for the metal from central bankers rose.
The benchmark indices have rallied 28 per cent this year, while the broader market has outperformed
The Consumer Price Index hit the lowest in six months in March at 4.83 per cent.
There has been some improvement in prices of oilseed and gram after the central government increased their import duties
There is no research in India done on topics like why people borrow, or how people invest. Here is an attempt at guessing.
"The question of entering into Delhi is a law and order matter and will be determined by the police," the bench said.
Any market correction, analysts say, would be an attractive entry point for risky assets, which should do well over the medium-to-long term.
'Even if the government does not implement an all-India NRC before 2024, it will be part of the party's long-term project.'
Oil imports are a third of India's total import bill.
