Tuesday, November 30, 2021
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Listen In: How Tatas’ Air India win may impact IndiGo, SpiceJet | The Economic Times Podcast


Hi there, Good Morning. Welcome to ETMarkets Morning, the show about money, business and markets. I am Nikhil Agarwal. Let’s start with the headlines first.

– Tatas may go for a Rs 15,000 cr loan for AI
– Maharashtra staring at load shedding as 13 coal-run power plants shut down
– Amazon, Flipkart see strong festive sales
– Covid vax doses in India surpass 95 cr mark

Now lemme give you a quick glance on the state of the markets.

Dalal Street is likely to have a flat start this morning. Nifty futures on the Singapore Exchange traded 11 points lower at 8:30 hours (IST). Asian shares rose in early trade on Monday as investors picked up bargains even as they continued to fret over inflation worries. MSCI’s broadest index of Asia-Pacific shares outside Japan rose by 0.54 per cent.

Elsewhere, the yield on 10-year Treasuries advanced four basis points to 1.61% Friday. The dollar ticked up to a 2-1/2-year high versus the yen on Monday after a soft US payrolls figure did little to alter market expectations that the US Federal Reserve will announce it will start tapering its massive bond-buying next month. Oil prices rose on Monday, extending multiweek gains, amid supply restraint from major producers and growing demand for fuels as economies try to recover from the coronavirus pandemic. Brent crude was up 81 cents, or 1%, at $83.20 a barrel.

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That said, here’s what is making news.

The renewed strength in the equity market, which got a boost from the Reserve Bank of India (RBI) persisting with its accommodative monetary policy on Friday, could push the Nifty past the 18,000-mark in the days ahead. While investors will shift focus to September quarter earnings season starting this week, analysts warn that disappointments could take the wind out of their sails as stronger profits are seen as imperative to justify elevated share valuations.

The total market capitalisation of Tata Group rose by Rs 1.31 lakh crore last week to over Rs 23.42 lakh crore on Friday driven by a run-up in most Tata companies. Mukesh Ambani’s Reliance Industries – the second most valuable group in India – has a market capitalisation of Rs 18.19 lakh crore on Friday. Tata Consultancy Services – considered the group’s cash cow – hit a record high of Rs 3,990 ahead of its September quarter results, which were announced after trading hours on Friday.

The acquisition of Air India’s operations by the Tata Group is likely to change the dynamics related to earnings and valuation of listed airline operators InterGlobe Aviation and SpiceJet. Better pricing power largely driven by consolidation, not-so-high aggression from players, and strict focus on cost-efficiency are some factors that are likely to improve the industry’s normalised operating profit before tax (Ebitda) in the medium term, analysts said. According to analysts, in the medium-term, players would have better bargaining power, which would increase their yields.

LASTLY,

Companies are rushing to raise bond funds after the Reserve Bank of India (RBI) took steps to cut easy money in its bi-monthly policy last week, resulting in an uptick in rates. The benchmark bond yield rose as much as 17 basis points in the past three weeks, raising overall funding costs. In the past one week, corporate bond sales totalled just about Rs 1,000 crore, much less than usual volumes.

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NOW Before I go, here is a look at some of the stocks buzzing this morning…

After announcing the $771 million acquisition of REC Solar from ChemChina, Reliance Industries is also buying Sterling and Wilson Solar from its promoters, making a big splash towards its renewable energy foray.

Tata Consultancy Services (TCS) will leverage its expertise in working with several global airlines such as Singapore Airlines and British Airways to bid for digitisation projects of national carrier Air India from its parent Tata Sons.

Macrotech Developers has sold properties worth Rs 3,000 crore during April-September on better demand, and looks to double its sales bookings in the second half to reach the Rs 9,000 crore target this fiscal year.

Ultratech Cement has emerged as preferred bidder for a limestone block in Madhya Pradesh. Ramstahn Ghunchihai limestone mine, which has reserves of 209.77 million tonnes, was auctioned in the current fiscal.

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Do also check out over two dozen stock recommendations for today’s trade from top analysts on ETMarkets.com.

That’s it for now. Stay with us for all the market news through the day. Happy investing!



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