Corporate India at present is more indebted than all state govts put together.
Equity benchmark Sensex tumbled 674 points on Friday, weighed by losses in banking stocks as an unabated spike in new coronavirus cases fuelled uncertainty over the economic impact of the pandemic. After hitting a low of 27,500.79 during the day, the 30-share BSE barometer ended 674.36 points or 2.39 per cent lower at 27,590.95. The NSE Nifty shed 170 points, or 2.06 per cent, to finish at 8,083.80.
Nifty 50 firms' net profit estimated to grow by a modest 3.1% in Q2, reports Krishna Kant.
Fresh investments by corporates up just 5.8% in FY17, lowest since 1992
The ruling BJP losing Chhattisgarh, Madhya Pradesh and Rajasthan, or being able to retain power only in Chhattisgarh may result in a "sharp correction" in the indices
Infosys' aspirations to improve revenue per employee might also prove to be a tall task, believe analysts.
For equity investors, the risk-to-reward ratio is worsening.
Top losers in the Sensex pack included ICICI Bank, Tata Steel, Vedanta, HDFC IndusInd Bank, Tata Motors, RIL and ONGC -- falling up to 4.45 per cent.
In the Sensex pack, Axis Bank, Tata Motors, Infosys, Kotak Bank, HDFC Bank, RIL, Bajaj Auto, SBI, HUL, Tata Steel, Vedanta, HFDC, TCS, ITC and Sun Pharma jumped up to 4.64 per cent.
Sales expansion also down 4.4%
'The government is encouraging consumption through fiscal spending in a bid to push up economic growth in the face of a slowdown in corporate investment and exports.'
A full-blown recovery remained elusive for India Inc in the July-September quarter, even as it overcame the challenge of achieving profitable growth.
Over the past four quarters, the Sensex companies' earnings trajectory has improved sharply because of a weak rupee.
This was even as the country's economy grew by 7.3%.
A weak rupee, though seemingly good for exporters, would push up input cost further for Indian companies.
In the Sensex kitty, ITC turned star performer by surging 2.45 per cent, followed by NTPC rising 2.19 per cent.
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Revenue yield on every rupee of investment fell to Rs 1.06 in FY13 from Rs 1.20 in FY08.
The sharp fall in the rupee's value against the dollar during the July-September quarter, it turns out, has come as a boon for corporate earnings.
All sectoral indices on the BSE and NSE ended in the red, led by realty, banking, metal, pharma, pharma and financial stocks.
The fall was led by L&T, IndusInd Bank, PowerGrid, NTPC, TCS, ICICI Bank, Axis Bank, Hero MotoCorp, Bharti Airtel and SBI, declining up to 2.64 per cent.
Stock prices is due to valuation expansion
Chinese telcos hold 60-100 MHz of spectrum, while Indian companies hold 13-15 MHz of spectrum.
If you are not happy with the price offered at buybacks, you could be in for a long haul.
Among Sensex constituents, HCL Tech suffered the most by diving 2.26 per cent, followed by HDFC shedding 2.10 per cent.
Net profit grew 25.4% in Q4 but revenue growth, lower at 8.5%, suggests lack of volume expansion.
Companies from the capital goods space will under-perform.
Among Sensex components, shares of Reliance Industries, India's largest company by market value, stole the show by surging 1.61 per cent to their highest in over three months.
Gold is currently trading at Rs 25,200 for 10 grams.
Adani Enterprises plans to invest a total of $25 billion in the next five years.
The windfall from RBI may be used to trim borrowing, help fund Rs 3.3 lakh crore capex plan, capitalise banks and provide fiscal stimulus to some stressed sectors, experts and economists said.
India Inc did not perform well during December quarter.
And why markets could give up 25 per cent of all these gains made since March 2020
Analysts remain confident RIL's refining and petrochemical segment will continue to support growth.
Large-cap scrips are still trading at a discount to mid-caps.
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Investors often forget that the movements in indices such as the Sensex reflects the performance of its constituent stocks; nothing else.
Group policies are more suitable for diabetics; these are negotiable & flexible.
The finance ministry is not only keen to split the roles of CMD, but also wants to appoint them for a fixed tenure of five years.
A large number of successful IPOs ensured that the total investor wealth, measured in terms of cumulative valuation of all listed shares, rose by nearly Rs 6 lakh crore during the year to Rs 106.23 lakh crore
Consensus continues to be cautious with analysts pointing towards tougher days ahead
