Market this week 12-11-2022

Market this week 12-11-2022

Despite smaller provisions, the Q2 net disappoints the street, sending LIC Housing down 10%.

On November 2, shares of LIC Housing, the nation’s second-largest provider of housing finance, achieved a 10-percent decline, marking the company’s steepest decline in more than two years. The 23 percent year-over-year increase in net profit at Rs 305 crore appears to have disappointed market players, as the stock has fallen for a fourth day on strong volume.

The pure-play mortgage lender, a division of the biggest insurer in the nation, LIC, reported a slight fall in net interest income for the quarter of 80 basis points to Rs 1,163 crore from Rs 1,173 crore, but the management provided no explanation.

According to the corporation, its provisions increased to Rs 6,522 crore on an estimated credit loss basis and its provision coverage ratio for Stage-3 accounts increased to 44 percent from Rs 5,355 crore in September 2021 to Rs 6,522 crore. On the BSE, LIC Housing Finance was quoted at Rs 360.40 as of the morning of November 2nd, down Rs 40.00 or 9.99 percent. It reached a high of Rs 377 and a low of Rs 360.40 over the same trading day. There were 139,697 shares worth of pending sell orders with no bidders in sight. The stock was trading with volumes of 633,988 shares, up 208.42 percent from its five-day average of 205,563 shares.

As investors await the Fed rate announcement, Asia stocks increase.

Despite slight losses on Wall Street overnight, Asian shares increased and bond rates firmed in early trade on Tuesday as investors shifted their attention to the Federal Reserve’s policy meeting this week for clues as to what would happen next.

On Wednesday, the central bank is almost set to increase interest rates by 75 basis points, but investors will be watching for any signs that the Fed may be considering slowing down rate increases in the future.

In addition to the Fed’s rate decision, the market will pay close attention to the Reserve Bank of Australia’s meeting on Tuesday, U.S. jobs data on Friday, and statistics on Chinese economic activity this week. As a significant week of central bank decisions got underway, risk assets had a mixed start. The largest MSCI index of Asia-Pacific shares outside of Japan was up 0.7% at the start of the Asian trading session. Futures on US stocks increased by 0.2%.

Fears of a Chinese owner’s distress sale cause Gland Pharma to fail.

On October 31, Gland Pharma’s shares continued to fall, bringing the aggregate decrease in three sessions to 23 percent, on concerns over a potential distressed sale of a stake by its promoter company Fosun Pharma Industrial Pte, according to dealers.

Fosun Pharma owns 57.86% of Gland Pharma, a company that exports a lot of injectables to places like the US and Europe.

The ultimate benefactor of Fosun Pharma, China-based Fosun International, is experiencing tremendous financial strain. According to media sources, the firm may have to sell off assets in order to raise money because it is unable to raise new cash.

According to a Forbes magazine report, credit rating agencies recently downgraded Fosun International further into a “junk” rating as the storm in the Chinese real estate market spread to other areas of the economy.

Given that the business reported a steep fall in net profit, Gland Pharma’s September quarter earnings likewise did little to assuage market angst. In comparison to the same period last year, the company’s consolidated net profit dropped by 20% to Rs 241 crore.

As the business signs a deal with Revamp Moto for EVs, Panache Digilife’s stock rises.

The company announced on October 31 that it had inked a manufacturing and supply agreement with Revamp Moto Private Limited for electric vehicles in the Indian market, which caused shares of Panache Digilife to soar.

The two-year-old start-up Revamp Moto is based in Nashik and is working to create extremely dependable, adaptable, and networked electric vehicles using its modular utility platforms.

According to the company, Panache will concentrate on high-quality product assembly, process optimization, and component indigenization to help it enter the Indian EV market, while Revamp Moto will work on new product development (NPD), research and development (R&D), new technologies, and generating intellectual property (IP).

Revamp Moto is the appropriate partner for Panache because of its audacious and cutting-edge approach to designing and producing electric vehicles, which has never been seen before in the nation.

Investors sell off shares of Tata Chemicals despite its outstanding Q2 performance.

Despite the firm reporting strong growth in revenue and earnings after taxes, Tata Chemicals’ share price fell more than 4% in the afternoon trade. The operating income of the corporation, according to analysts, was less than anticipated.

On October 27, the Tata Group Company reported consolidated income from operations of Rs 4,239 crore, up 40% from Rs 3,022 crore in the corresponding period last year.

In comparison to the same quarter last year, the combined profit from continuing activities was Rs 685 crore as opposed to Rs 248 crore. In light of increased energy and input costs, the operating performance indicates enhanced realisations and effective cost management.

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