Exports slide 12% on recession fears; trade deficit widens to $23.76 bn
India’s merchandise exports contracted 12.2 per cent year-on-year (YoY) in December to $34.48 billion as slowing external demand amid recession fears in developed economies continued to weigh on outbound shipments, the data released by the commerce and industry ministry showed. Still in the first nine months of the current financial year, exports grew nearly 9 per cent. The latest decline in the value of outbound shipments can also be attributed to the statistical effect of a high base because December 2021 witnessed the second-highest monthly exports in the previous financial year at $39.3 billion. “There are a lot of headwinds. Despite that, our export competitiveness has held its head high… It is clear that there are headwinds and there is a recession in our export countries (markets). Therefore, we need to look at export targets in a manner that we are able to reap benefits in relation to countries witnessing GDP growth, such as Brazil and other Latin American nations,” Commerce Secretary Sunil Barthwal said on Monday.
WPI inflation cools to 22-month low of 4.95% in Dec as food prices fall
The wholesale price index (WPI)-based inflation rate for December decelerated to a 22-month low at 4.95 per cent, on the back of a higher base and the easing of price pressure for food and manufactured products. In November 2022, wholesale price inflation stood at 5.85 per cent. In December 2021, it was at 14.27 per cent. The data released by the Ministry of Commerce and Industry on Monday showed food inflation — excludes manufactured food items — at minus 1.25 per cent contracted in December, from 1.07 per cent in November, as vegetable prices (minus 36 per cent) fell from their year-ago levels. However, the inflation rate for cereals, paddy, wheat, and pulses went up in December.
States’ fiscal health better after Covid-19 pandemic stress: RBI report
The fiscal health of state governments has shown improvement after a sharp deterioration induced by the pandemic in 2020-21, the Reserve Bank of India (RBI) said in a report on state finances released on Monday. The better showing on states’ fiscal front has been driven by a broad-based economic recovery and the resultant improvement in revenue collections, the RBI said in the report, which was prepared by the central bank’s Division of State Finances of the Department of Economic and Policy Research. “States’ gross fiscal deficit (GFD) is budgeted to decline from 4.1 per cent of gross domestic product (GDP) in 2020-21 to 3.4 per cent in 2022-23,” according to the report.
Gold – Rs 56642/10gm, Silver – Rs 68812/kg, Brcrude – Rs 6359/barrel, Degumsyoil – Rs 1296/10kg, Copper – Rs 770/kg.
Lupin gets USFDA tentative nod for generic drugs to treat HIV infection.
Siemens signs Rs 26,000-crore locomotive order with Indian Railways.
Paytm bank gets RBI nod to operate as Bharat Bill Payment Operating Unit.
SGX Nifty indicates negative start to Indian markets trading at 17929 levels down by 16 points or 0.09%. Dow Jones is ended yesterday`s session in green up by 0.33% at close.
Sector in focus – Banks, IT, Chemicals & Pharma.
Stocks in Action
Stock in Action:Power Finance Corporation: Power finance corporation Q2FY23 earnings came ahead of consensus estimates buoyed by provisioning release of Rs1600 crore on stress resolution and dividend income of Rs511 crore. With resolution of South East UP Transmission and Jhabua Power, stage-3 assets were down 90bps QoQ to 4.75%. Two more projects namely Ind Barath Energy (Utkal) and LANCO Amarkantak are in advanced stages of resolution and will keep stress pool under check. Provisioning release of Rs1600 crore on stress resolution was utilised to raise coverage on stage-1/2 assets. Drawing down from sanction pipeline, disbursements gained traction. Incremental sanctions under various power schemes revive hope on growth gathering pace gradually. Drawing down from robust sanction pipeline, disbursements gained traction growing 21% YoY and 270% QoQ to Rs17,150 crore led by both generation as well as distribution segments. As a result, loan book was up 1.8% QoQ/1.3% YoY at Rs 3,76,00 crore during Q2FY23. Positive on Power Finance Corporation given the robust disbursement and strong earnings growth momentum.
Sundram Fasteners ltd.: Sundram Fasteners is witnessing strong traction from its domestic and global OEMs, driven by a recovery in automotive and non-automotive demand. The outlook remains positive going forward, driven by pent-up demand, post normalization of the economy. Operating profit margin would expand on account of operating leverage benefits, cost-control measures, and its ability to pass on the increase in cost to customers. The company has a robust long-term revenue visibility, given its strong relationships with OEMs, both in India and globally. During 2QFY23, it reported healthy revenue growth of 12.8% YoY to Rs 1,402 crores, led by improved offtake from OEMs. The EV business prospects remain robust going forward. The company 3% share of revenues from the EV portfolio, while the EV business share in the order book is above 10%. Positive on Sundram Fasteners given the strong tractions from domestic as well global OEMs and increasing revenue share in EV segment.
Vinny Overseas considered, approved and recommended an alteration in the capital of the company by split/sub-division of equity share of the company from Rs. 10/- per share to Re 1/- per share. Also considered, approved and recommended the issue of Bonus equity shares in the ratio of 13:10 i.e., 13 (Thirteen) Bonus Equity share of Rs.1/- each (post considering the split of shares subject to the approval of the Members) for every 10 (ten) fully paid equity shares held as on Record Date, by the shareholder, subject to the approval of the Members of the Company in the Extra Ordinary General Meeting.
HCLTECH: Interim Dividend – Rs. – 10.00
ANGELONE: Interim Dividend
GOTHIPL: Interim Dividend
Abirami Financial: Ex-Date: 27-Jan-23
Triveni Turbine: Open: 17-Jan-23; Close: 31-Jan-23
KPI Green Energy: Bonus Issue 1:1; Ex-Date: 18-Jan-23
Deep Diamond India: Stock Split From Rs. 10/- to Rs. 1/-; Ex-Date: 20-Jan-23
Aarti Surfactants: Ex-Date: 17-Jan-23
Markolines Pavement Tech: Ex-Date: 17-Jan-23
Anjani Portland Cement: Open: 30-Dec-22; Close: 19-Jan-23
Pacific Industries: Open: 19-Jan-23; Close: 02-Feb-23
Aarti Surfactants: Open: 25-Jan-23; Close: 03-Feb-23
Rajapalayam Mills: Open: 18-Jan-23; Close: 07-Feb-23
Indowind Energy: Open: 27-Jan-23; Close: 10-Feb-23
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