BIGGER HIKES
Monsoon is a cyclical headwind, but infra push and M&A are bigger tailwinds for long term investors: 5 cement stocks with upside potential of up to 44%
Cement is a sector which has probably seen maximum mergers and acquisition in the last three years. Right from the second biggest player witnessing a change in ownership, to small players being taken over. With the monsoon coming, there is always a cyclical pressure on cement stocks, with the narrative being that in monsoon construction activity slows down. Even this week it played on the street, with cement stock witnessing a decline. But the question is whether this correction in stock price gives an opportunity to investors to get into a sector which is witnessing a fundamental shift in terms of how the demand curve pans out. Probably the answer is tilted toward yes for at least some players.
Budget 2024 should hike basic income tax exemption limit to Rs 5 lakh in both old and new tax regimes: Deloitte
Finance Minister Nirmala Sitharaman is likely to present Union Budget 2024 this month. Salaried taxpayers are eagerly waiting for some much-needed tax benefits from the upcoming Budget. According to Deloitte, salaried people want Finance Minister to revamp tax slab benefits, adjust HRA rates, incentivise EV sales, and promote affordable housing in Budget.
Telecom competition takes a breather, may recharge Vodafone Idea
Voda Idea's financial health is expected to improve with a projected increase in ARPU, revenue growth, and a slowdown in market share loss after the tariff hike. Vi is seeking external debt funding to bolster network expansion and 5G rollout after a recent capital raise.
Post tariff hikes: Users could spend Rs 47,500 crore more, trade up data plans
The recent hefty tariff hikes by major Indian telecom companies, Reliance Jio and Bharti Airtel, are expected to significantly increase consumer spending on telecom services, potentially adding Rs 47,500 crore annually. These increases, aimed at boosting 5G monetisation, raise the cost of entry-level 5G plans by up to 71%. Analysts anticipate a 15-17% rise in average revenue per user (ARPU) for Jio and Airtel, driven by up-trading to higher data allowance plans. Despite risks of subscriber churn, the hikes are seen as pivotal for enhancing profitability and investment returns in the telecom sector.
Karnataka BJP demands Siddaramaiah’s resignation amidst Valmiki scam investigation and soaring prices
The Congress government in Karnataka has been accused of playing politics with the chief minister and deputy CM posts, leading to fuel and milk price hikes and scams in government departments. Opposition leader R Ashoka has called for the CM to resign, accusing him of "eating 80% of the funds." The scam broke out after a KMVSTDC officer committed suicide over alleged corruption.
How to play the telecom stocks after tariff hikes? Gaurav Malhotra explains
This is something which we have been arguing that now that both Jio and Bharti have roughly around 20% of their subscribers on 5G, it is only a matter of time that they will start monetising it, which is what it has started.
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What should investors do with telecom stocks? Sandip Sabharwal answers
So, the best play is Bharti only because that is a pure play which has profits, which has a decent balance sheet, and which has market share and still gaining market share. Vodafone Idea is more about hope. Now the hope is that at some stage they will make profits. I am very doubtful that one, with their current balance sheet, etc, if shareholders will ever get one rupee EPS also from this company.
Monsoon is a headwind, but continued infra push is a bigger tailwind: 5 southern India focussed cement stocks with upside potential of upto 44%
With the monsoon coming, there is always a cyclical pressure on cement stocks, with the narrative being that in monsoon construction activity slows down. There is no doubt that this happens but over the last few years it has been seen that the decline in demand is not as strong as it used to be, maybe because the overall thrust on infrastructure is far higher or the fact that as the economy recovers, the overall demand matrix is better for cement companies. The fact is that cement has been a sector where most of the analysts have been caught off guards. The stocks have done well and a large number of analysts have been sticking to their stands that pricing and capacity utilization is an issue. Another reason to look for cement stocks is the fact that we have a state election coming in near term and that will lead to a situation where push to infrastructure projects would be given and that is always good news for the cement industry.
Euro zone inflation rises higher-than-expected in May just as ECB prepares to cut rates
Euro zone inflation increased more than expected in May, reaching 2.6% year-on-year, nudging away from the European Central Bank's 2% target. Core inflation rose to 2.9%, with services sector prices up to 4.1%, driven by strong wage growth. The ECB faces a cautious path in managing inflation amid ongoing economic uncertainty.
Japan's Nikkei stumbles as Nvidia earnings results loom
Japan's Nikkei share average fell 0.85% to 38,617.10 as investors awaited Nvidia's earnings, which will influence global stocks, including Wall Street and AI-related stocks. Chip stocks like Tokyo Electron and Advantest declined ahead of the results. The index previously hit a record intraday high and saw declines in Fast Retailing and Shin-Etsu Chemical.
Will try to grow better than last year without taking any price hikes: Shankha Banerjee, Dr Lal Pathlabs
We have been consistently saying that our EBITDA margin level would be around what we even see in our delivery in quarter four in the range of 26-27% kind of EBITDA margins, I think that is something which we continue to state is something which we are working towards.
Coforge’s $220-m Cigniti acquisition biggest, but not disproportionately bigger: CEO Sudhir Singh
Coforge's $220 million acquisition of Cigniti under CEO Singh's leadership aims to expand into new verticals, add fortune-500 clients, and strengthen North America market. Past acquisitions and focus on organic growth indicate a strategic approach to growth.
Three pvt telecom operators ideal for India: Sunil Mittal
A market with three private telecom companies is optimal for India, Bharti Enterprises chairman Sunil Mittal said on Thursday as debt-laden Vodafone Idea (Vi) got a financial lifeline allaying fears of a duopoly in the telecom sector. "My position has been consistent that three private operators are ideal for India," Mittal told ET. His comments come in the backdrop of Vi moving to secure its much-delayed funding.
Does more work and bigger responsibilities lead to better compensation and promotions?
Research from Deloitte India and Randstad India indicates that employees taking on additional roles are receiving better increments, double promotions, and career advancement opportunities. This strategy benefits companies by retaining talent, cultivating skilled workers internally, and saving on external hiring costs. Such initiatives have reduced attrition and boosted employee engagement.
Indian companies to hand out bigger hikes
A survey by Aon indicates that India-based companies are likely to offer higher salary hikes to their employees in India compared to foreign-headquartered firms. This trend started in 2022 and continued in 2023, influenced by cost pressures and economic uncertainties in advanced economies like Japan and the UK.
RIL turns bigger than McDonald's, Netflix as Mukesh Ambani fuelling India’s $1 trillion dream
Reliance Industries, owned by Mukesh Ambani, has become the largest wealth creator on Dalal Street with a market capitalization of Rs 20 lakh crore. It is bigger than American giants like McDonald's, PepsiCo, Netflix, and Accenture. RIL is also the only Indian company among the world's 50 most valuable companies and is also one of the top candidates to become India's first $1 trillion stock.
Big becomes bigger! Reliance Industries market value crosses Rs 18 lakh crore
Reliance Industries shares hit a fresh all-time high on Thursday. The market cap of India's largest company also crossed the Rs 18 lakh crore mark. As the Q3 earnings season begins today, Reliance remains on the top of the buying list of major brokerage houses. Goldman Sachs recently increased its target to Rs 2,885 from Rs 2,660 earlier. Jefferies has an even higher target price of Rs 3,125 for the stock.
Goldman Sachs, Morgan Stanley diverge on Fed rate-cut forecasts
The central bank will start cutting rates in June 2024, then again in September and every meeting from the fourth quarter onward, each in 25-basis point increments, Morgan Stanley researchers led by chief US economist Ellen Zentner said in their 2024 outlook on Sunday.
Decision-Day Guide: Fed’s ‘hawkish pause’ to keep option to hike
The Federal Open Market Committee will keep rates unchanged at its two-day meeting ending Wednesday in a range of 5.25% to 5.5%, a level first reached in July. The rate decision and an accompanying statement will be released at 2 p.m. in Washington. Chair Jerome Powell will hold a press conference 30 minutes later.
Netflix shares surge on big subscriber additions despite Hollywood strikes
Netflix capitalised on its heft in global production, as well as the economic hardships of its media rivals, to garner 247 million subscribers in the third quarter, a gain of nearly 9 million over the last three months.
OECD raises 2023 global growth outlook, cuts 2024
The OECD has forecasted that a stronger US economy will help mitigate the global slowdown this year, but a weakening Chinese economy will have a greater negative impact next year. Global GDP growth is expected to slow to 3.0% this year, an upgrade from the previous estimate but is projected to slow further to 2.7% in 2024. OECD has said that central banks should keep interest rates high until clear signs of inflationary pressures have subsided.
5 world market themes for the week ahead
Here's your week ahead in markets from Yoruk Bahceli in Amsterdam, Ira Iosebashvili in New York, Kevin Buckland in Tokyo, Li Gu in Shanghai and Amanda Cooper and Ahmad Ghaddar in London.
Prices of SUVs and MPVs to go up 2% following the GST cess increase
The GST Council in India has raised the cess on utility vehicles (UVs) by 200 basis points from 20% to 22%, leading to a price rise of 2% for UVs measured at over four metres. Currently, big UVs are subject to a GST rate of 28%, plus a cess of up to 22%. However, the SUV condition has been removed, meaning all larger SUV/MPVs which attracted a 20% cess rate will now have a 22% rate.
European shares fall as Powell signals bigger rate hikes
The index posted its steepest one-day fall in nearly two weeks on Tuesday after Powell, at a hearing before the Senate Banking Committee, said the central bank might need to raise interest rates more than expected and was prepared to move in larger steps to temper inflation
D-St indices tank on fears of bigger Fed rate hike
World Bank chief economist Indermit Gill said Thursday he was concerned about "generalised stagflation", a period of low growth and high inflation, in the global economy, according to Reuters. The IMF said downside risks continue to dominate the economic outlook but it was too early to say if there will be a widespread global recession.
Nomura sees bigger fed rate hikes in Sept, Nov
The analysts maintained their projections of 25-basis-point increases each in December and February, which would bring their terminal interest rate forecast to 4%-4.25%. The Nomura revision follows forecast revisions by Goldman Sachs Group Inc. earlier this week and matches both the size of those changes and the latest calls.
Vox MPC: Inflation a priority, rate hikes likely, bigger ones may be not
Expectations are that the MPC will continue to vote for higher interest rates in its next two meetings in September and December taking the Reserve Bank of India's (RBI) benchmark repo rate at least 50 basis points higher from the current 5.40%. One basis point is 0.01%.
'India Inc to hand out bigger hikes next year'
As per the report, 58% of Indian employers have budgeted for higher salary increases this year compared to last year, while 24.4% are making no changes in the budget. Only 5.4% have reduced the budget as compared to 2022.
Bond yields jump, euro rallies on prospect of bigger ECB rate hikes
The euro jumped 1.1% to $1.08149, on course for its best day since May, after Reuters reported that ECB policymakers are considering raising interest rates by a bigger-than-expected 50 basis points at their meeting on Thursday.Euro zone government bond yields also shot higher. Germany's two-year bond yield, sensitive to near-term rate expectations.
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