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Listen In: Sticky long-term global funds raising bets on D-Street


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.

– India to push for TRIPS waiver on Covid drugs at WTO
– Govt to allow sale of some drugs sans prescription
– Sebi gives itself powers to grant exemptions to FPIs

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

Asian stocks majorly opened slightly lower on Thursday after the fall in the previous session but with some support from bargain-hunting purchases pushed the indices higher. Tech firms enjoyed more buying. MSCI’s index of Asia-Pacific shares outside Japan was up by 0.55 per cent.

Elsewhere, the yield on 10-year Treasuries declined three basis points to 1.84%. Oil prices slipped back on Thursday after hitting their highest levels since 2014 in the previous session on the back of strong demand and short-term supply disruptions, underlying factors that limited losses as investors took profits.

That said, here’s what is making news.

The share of pension funds and global central banks in the equity assets under management (AUM) of foreign portfolio investors reached a multiyear high at 8.8% and 2.8%, respectively, at the end of December 2021, data from NSDL show. The share of the sticky long-term funds including pension funds, central banks, sovereign wealth funds, and government-owned funds rose by 100 basis points to 24% in 2021
compared with the long-term average.

Combined net borrowing by India’s central and state governments is likely to be lower and within tolerable limits in FY23, with the country’s likely inclusion in global bond indices and tweaks to portfolio-valuation methods helping prevent yields from spiking despite an imminent reversal to the benign rate cycle.

FMCG bellwether Hindustan Unilever is expected to post on Thursday subdued performance for the fiscal third quarter, marked by input cost inflation, high base effect, delayed onset of winter and lacklustre demand amid fears of the third Covid-19 wave. Revenue for the quarter is expected to increase by around 8% — the slowest in six quarters. The growth is likely to be driven by price increases rather than a healthy surge in volumes.

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

Reliance Jio Infocomm (Jio) has paid Rs 30,791 crore to the telecom department, clearing all its dues towards spectrum bought in auctions before March 2021, a move that will help the Mukesh Ambani-owned telco save Rs 1,200 crore annually.

Bajaj Auto saw a sharp year-on-year decline in profits in the December quarter as domestic sales was in slow gear and higher input costs weighed on the margins. The company reported a standalone profit of Rs 1,214 crore, down 22% on-year.

JSW Energy said net profit surged 162% to Rs 324 crore in the third quarter on higher revenues. The company had reported consolidated net profit of Rs 124 crore in the year-ago quarter.

The two dedicated power sector financiers Power Finance Corp (PFC) and REC Ltd are considering bidding for stressed power assets to prevent large haircuts on their loans during resolutions.

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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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