A lot of Adani companies will be declaring their quarterly earnings report today which might have an effect on investor sentiment on the group. Adani Transmission reported a healthy profit on Monday which might boost investor confidence in the group.
Rupee falls 68 paise to close at 1-month low of 82.76 against US dollar
The rupee tanked 68 paise, its steepest single-day loss in more than four months, to close at a month low of 82.76 against the US currency on Monday due to a stronger greenback in the global markets and FII outflows.
Growing expectations of further rate hikes by the US Federal Reserve after strong US job data and firm crude oil prices weighed on the local unit, forex traders said.
At the interbank foreign exchange market, the rupee opened at 82.35 against the greenback, and fell further to settle at the day’s low of 82.76, a closing level not seen since January 4.
In the previous session on Friday, the rupee settled at 82.08 against the US dollar.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading 0.24 per cent higher at 103.16, on robust job data from the US, which raised expectations of a hawkish Federal Reserve.
Global oil benchmark Brent crude futures advanced 0.45 per cent to USD 80.30 per barrel. (PTI)
Adani not among our top 15 group exposures: BoB CEO
Bank of Baroda’s exposure to the Adani group is a fourth of what Reserve Bank of India permits to a group of connected companies. In an interview, Sanjiv Chadha, chief executive at India’s second-largest state-owned lender, said there is no cause for concern on its exposure to Adani group companies. In fact, for a while now, the bank has been taking it easy with its exposure to corporates, compared to its peers, he said. Edited excerpts:
Reliance Capital lenders approach NCLAT over 2nd round of auction
Reliance Capital lenders have approached the National Company Law Appellate Tribunal (NCLAT) to seek a second round of financial bids for the debt-ridden firm, presently going through the insolvency resolution process.
Vistra ITCL (India) Ltd, one of the members of the Committee of Creditors of Reliance Capital has filed an appeal before the appellate tribunal.
The petition has been listed before the bench headed by Chairman Justice Ashok Bhushan for hearing on Tuesday.
Earlier on February 2, the Mumbai bench of the National Company Law Tribunal (NCLT) had ruled against holding a fresh round of auction for the takeover of Anil Ambani-promoted Reliance Capital and said the challenge mechanism for financial bids has already concluded.
It upheld the plea by Torrent Investments’ plea challenging bankers’ decision to go for the second round of auctions in pursuit of higher value for the bankrupt company.
NCLT in its order said the bench allows Torrent Investment’s application and declared that the challenge mechanism for financial bids stood concluded as on December 21, 2022, with the bid of the applicant at ₹8,640 crore being the highest. (PTI)
LIC Housing Finance Q3 profit declines 37% on higher financing costs
LIC Housing Finance Ltd (LICHFL) on Monday reported a massive decline in its net profit for the December quarter of fiscal year 2023. Its net profit, hit by higher financing costs, fell 37% year-on-year basis to Rs480.30 crore in the third quarter from Rs767 crore a year ago.
The Mumbai-based mortgage lender’s finance costs rose 19.4%, accounting for 80% of total expenses, which increased 28.6% to Rs5,283 crore.
LIC Housing Finance said its impairment costs on financial instruments surged 114.5% to Rs763 crore.
LIC Housing’s interest income rose 16.8% to Rs5,839 crore in the December quarter.
On Monday, LICHFL’s shares fell 2.88% to close at Rs388.30 apiece on the BSE, ahead of the results. Its stock has fallen over 6% so far this year. (Read More)
UK considering launch of digital currency called ‘Britcoin’
UK authorities on Monday said British businesses and consumers are likely to need a digital version of the pound, formally asking for public comment on the idea of introducing a central bank digital currency.
Britain, home to the world’s second-biggest financial centre, is trailing former colonies such as Nigeria, the Bahamas and Jamaica in rolling out a digital currency.
More than 80 per cent of the world’s central banks are considering launching digital currencies or have already done so, according to the consultant PwC. (Read More)
Tata Steel Q3 net loss at ₹2,224 cr, down 76% as recession fears weigh on steel prices
Steel major Tata Steel on Monday reported a surprise consolidated net loss of ₹2,224 crore for the third quarter ending 31 December 2022 (Q3FY23). This is a decline of 76% from ₹9,572 crore profit posted in the corresponding quarter of last year.
The steel production company’s revenue from operations declined 6% to ₹57,083.56 crore for the period under review as compared to ₹60,783 crore in the year-ago period. The steel major’s expenses rose to ₹57,172.02 crore in the quarter under review from ₹48,666.02 crore in the year-ago period. (Read More)
National Stock Exchange lowers price band on Adani Green Energy and Adani Transmission
Indian bourse National Stock Exchange of India (NSE) has revised the circuit limits of Adani Green Energy Ltd and Adani Transmission Ltd to 5%, according to data on its website on Monday. The NSE had revised the price bands of both companies to 10% from 20% last week.
Stock exchanges set the circuit limits to prevent large movements in the price of stocks in a very short time. Shares in billionaire Gautam Adani’s companies have been in free-fall since a 24 January critical report by Hindenberg Research, with group cumulative market losses now topping $110 billion, sparking fears of wider financial contagion. (Read More)
US stocks slip on Monday as worries about high rates weigh on Wall Street
Wall Street shaved off more of its strong start to the year on Monday, adding to losses from the end of last week driven by worries about higher interest rates and inflation.
The S&P 500 fell 25.40, or 0.6%, to 4,111.08 for its second straight fall after a stunningly strong report on the U.S. jobs market dented the market’s hopes for easing interest rates. The Dow Jones Industrial Average fell 34.99 points, or 0.1%, to 33,891.02, while the Nasdaq composite dropped 119.50, or 1%, to 11,887.45.
Some of the sharpest action was again in the bond market, where expectations are rising for the Federal Reserve to stay firm on keeping interest rates higher for longer to combat inflation. It’s something the Fed has been talking about for a long time, but also something the market has been stubborn about not believing fully.
The yield on the two-year Treasury, which tends to track expectations for the Fed, leaped. It zoomed to 4.47% from 4.29% late Friday and just 4.10% the day before. That’s a significant move for the bond market. The 10-year yield, which helps set rates for mortgages and other important loans, jumped to 3.64% from 3.52% late Friday.
Higher rates slow the economy by design, in hopes of limiting the purchases by households and businesses that can fuel inflation. But they also raise the risk of a severe recession and hurt markets in the meantime. (AP)
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