Adani Group, IT Stocks Lift Markets Amid Focus On US Debt Ceiling Talks

Indian shares advanced on Tuesday, powered by information technology and Adani group of stocks, even as markets kept an eye on the US debt ceiling talks.

The blue-chip Nifty 50 index was up 0.41% at 18,391.50 as of 10:08 a.m. IST, while the benchmark S&P BSE Sensex rose 0.33% to 62,165.70.

Ten of the 13 major sectoral indexes advanced, with the metal index jumping nearly 3%. Adani Enterprises Ltd, which has a weightage of 17% in the metal index, jumped over 12% and was the top Nifty 50 gainer.

All the Adani group stocks surged between 2% and 13%, and extended gains after markets regulator Securities and Exchange Board of India (SEBI) found no conclusive evidence after a probe into suspected violations in overseas investments in the group.

The Supreme Court's expert panel has ruled out a regulatory failure around the allegation of price manipulation.

"The high integrity of the members of the panel must have given confidence to investors to buy the beaten down (Adani) stocks," said VK Vijayakumar, chief investment strategist at Geojit Financial Services.

Bharat Petroleum Corporation Ltd rose over 2% and was among the top Nifty 50 gainers. The oil refiner reported a rise in fourth-quarter net profit, post-market hours on Monday.

High-weightage IT stocks rose nearly 1%. A report from credit ratings provider S&P Global Ratings, on Monday, said Indian IT companies have the resilience to downside risks due to strong balance sheets, high recurring cash flows, and execution track record.

While the debt ceiling talks in the U.S. did not yield an agreement on Monday, both US President Joe Biden and House Republican Speaker Kevin McCarthy vowed to continue negotiations.

Asian markets advanced on hints of progress in U.S. debt ceiling talks and strong macroeconomic data from Japan.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

(Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani Group Company.)

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Adani Group, IT Stocks Lift Markets Amid Focus On US Debt Ceiling Talks

Indian shares advanced on Tuesday, powered by information technology and Adani group of stocks, even as markets kept an eye on the US debt ceiling talks.

The blue-chip Nifty 50 index was up 0.41% at 18,391.50 as of 10:08 a.m. IST, while the benchmark S&P BSE Sensex rose 0.33% to 62,165.70.

Ten of the 13 major sectoral indexes advanced, with the metal index jumping nearly 3%. Adani Enterprises Ltd, which has a weightage of 17% in the metal index, jumped over 12% and was the top Nifty 50 gainer.

All the Adani group stocks surged between 2% and 13%, and extended gains after markets regulator Securities and Exchange Board of India (SEBI) found no conclusive evidence after a probe into suspected violations in overseas investments in the group.

The Supreme Court's expert panel has ruled out a regulatory failure around the allegation of price manipulation.

"The high integrity of the members of the panel must have given confidence to investors to buy the beaten down (Adani) stocks," said VK Vijayakumar, chief investment strategist at Geojit Financial Services.

Bharat Petroleum Corporation Ltd rose over 2% and was among the top Nifty 50 gainers. The oil refiner reported a rise in fourth-quarter net profit, post-market hours on Monday.

High-weightage IT stocks rose nearly 1%. A report from credit ratings provider S&P Global Ratings, on Monday, said Indian IT companies have the resilience to downside risks due to strong balance sheets, high recurring cash flows, and execution track record.

While the debt ceiling talks in the U.S. did not yield an agreement on Monday, both US President Joe Biden and House Republican Speaker Kevin McCarthy vowed to continue negotiations.

Asian markets advanced on hints of progress in U.S. debt ceiling talks and strong macroeconomic data from Japan.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

(Disclaimer: New Delhi Television is a subsidiary of AMG Media Networks Limited, an Adani Group Company.)

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Rs 2,000 Note Order To Improve Liquidity, Ease Short-Term Rates: Experts

The Reserve Bank of India (RBI)'s decision to withdraw its highest denomination currency note from circulation is likely to improve banking system liquidity, bringing down recently elevated short term rates, analysts and bankers said.

The RBI on Friday said that it will start withdrawing 2,000-rupee notes from circulation, although they will remain legal tender. Customers holding these notes can deposit them or exchange them for smaller notes by Sept.30, 2023.

The value of such notes in circulation is 3.6 trillion rupees ($44.02 billion), but not all of this will remain in banks in the form of deposits.

Kotak Institutional Equities estimates that liquidity could improve by around 1 trillion rupees, depending on the behaviour of depositors, while QuantEco Research pegs the potential liquidity impact at 400 billion rupees to 1.1 trillion rupees.

ICICI Securities Primary Dealership estimates the liquidity surplus could increase to 1.5-2 trillion rupees.

India's banking system liquidity surplus has averaged above 600 billion rupees in May.

About 2.5-3 trillion rupees of banking sector liquidity leaks out as currency in circulation each year, wrote Pranjul Bhandari, chief India economist at HSBC. "As such, markets may anticipate some comfort on the liquidity front."

Most economists expects the note withdrawal to be less disruptive for the economy than the 2016 demonetisation.

Impact On Rates

If liquidity surplus improves sharply because of this move, "the weighted average call rate could sustain below the repo rate for the next few weeks," said Raju Sharma, chief investment officer- debt at IDBI Mutual Fund.

The overnight inter-bank rate has remained above the policy repo rate of 6.5%.

Short-term interest rates for government securities, bank bulk deposits and corporate borrowings will also likely ease.

Treasury bill auctions will see good demand in the coming weeks, said Rajeev Pawar, head of treasury at Ujjivan Small Finance Bank.

This would eventually spillover to three-year and five-year bonds and yields of such notes could fall by up to 10 basis points, he said.

"With the liquidity coming in, we do expect bullish bets on Indian government bonds to increase across the curve, especially when inflation has come off and rate cuts are getting priced in," Mr Sharma said.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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Rs 2,000 Note Order To Improve Liquidity, Ease Short-Term Rates: Experts

The Reserve Bank of India (RBI)'s decision to withdraw its highest denomination currency note from circulation is likely to improve banking system liquidity, bringing down recently elevated short term rates, analysts and bankers said.

The RBI on Friday said that it will start withdrawing 2,000-rupee notes from circulation, although they will remain legal tender. Customers holding these notes can deposit them or exchange them for smaller notes by Sept.30, 2023.

The value of such notes in circulation is 3.6 trillion rupees ($44.02 billion), but not all of this will remain in banks in the form of deposits.

Kotak Institutional Equities estimates that liquidity could improve by around 1 trillion rupees, depending on the behaviour of depositors, while QuantEco Research pegs the potential liquidity impact at 400 billion rupees to 1.1 trillion rupees.

ICICI Securities Primary Dealership estimates the liquidity surplus could increase to 1.5-2 trillion rupees.

India's banking system liquidity surplus has averaged above 600 billion rupees in May.

About 2.5-3 trillion rupees of banking sector liquidity leaks out as currency in circulation each year, wrote Pranjul Bhandari, chief India economist at HSBC. "As such, markets may anticipate some comfort on the liquidity front."

Most economists expects the note withdrawal to be less disruptive for the economy than the 2016 demonetisation.

Impact On Rates

If liquidity surplus improves sharply because of this move, "the weighted average call rate could sustain below the repo rate for the next few weeks," said Raju Sharma, chief investment officer- debt at IDBI Mutual Fund.

The overnight inter-bank rate has remained above the policy repo rate of 6.5%.

Short-term interest rates for government securities, bank bulk deposits and corporate borrowings will also likely ease.

Treasury bill auctions will see good demand in the coming weeks, said Rajeev Pawar, head of treasury at Ujjivan Small Finance Bank.

This would eventually spillover to three-year and five-year bonds and yields of such notes could fall by up to 10 basis points, he said.

"With the liquidity coming in, we do expect bullish bets on Indian government bonds to increase across the curve, especially when inflation has come off and rate cuts are getting priced in," Mr Sharma said.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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India's Forex Reserves Hit One-Year High, Rise To Nearly $600 Billion

India's foreign exchange reserves continue to rise and are edging towards USD 600 billion, hitting a nearly one-year high. In the week that ended on May 12 for which data is available, the reserves rose by USD 3.553 billion to USD 599.529 billion.

Prior to the May 12 week, they rose by USD 7.196 billion to USD 595.976 billion, RBI data showed.

Coming back to RBI's latest data, India's foreign currency assets, the biggest component of the forex reserves, rose by USD 3.577 billion to USD 529.598 billion.

Gold reserves during the latest week rose by USD 38 million to USD 46.353 billion.

In October 2021, the country's foreign exchange reserves touched an all-time high of about USD 645 billion.

Much of the decline since then can be attributed to a rise in the cost of imported goods in 2022.

Also, the forex reserves had fallen largely because of the RBI's intervention in the market to defend the depreciating rupee against a surging US dollar.

Typically, the RBI, from time to time, intervenes in the market through liquidity management, including through the selling of dollars, with a view to preventing a steep depreciation in the rupee.

The RBI closely monitors the foreign exchange markets and intervenes only to maintain orderly market conditions by containing excessive volatility in the exchange rate, without reference to any pre-determined target level or band.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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India's Forex Reserves Hit One-Year High, Rise To Nearly $600 Billion

India's foreign exchange reserves continue to rise and are edging towards USD 600 billion, hitting a nearly one-year high. In the week that ended on May 12 for which data is available, the reserves rose by USD 3.553 billion to USD 599.529 billion.

Prior to the May 12 week, they rose by USD 7.196 billion to USD 595.976 billion, RBI data showed.

Coming back to RBI's latest data, India's foreign currency assets, the biggest component of the forex reserves, rose by USD 3.577 billion to USD 529.598 billion.

Gold reserves during the latest week rose by USD 38 million to USD 46.353 billion.

In October 2021, the country's foreign exchange reserves touched an all-time high of about USD 645 billion.

Much of the decline since then can be attributed to a rise in the cost of imported goods in 2022.

Also, the forex reserves had fallen largely because of the RBI's intervention in the market to defend the depreciating rupee against a surging US dollar.

Typically, the RBI, from time to time, intervenes in the market through liquidity management, including through the selling of dollars, with a view to preventing a steep depreciation in the rupee.

The RBI closely monitors the foreign exchange markets and intervenes only to maintain orderly market conditions by containing excessive volatility in the exchange rate, without reference to any pre-determined target level or band.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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Airports Authority Of India Reports Profit For First Time Since Pandemic

Airports Authority of India (AAI) is back in the black, raking in a profit of Rs 3,400 crore in the fiscal ended March as surging domestic air traffic boosted its financial performance, according to a source.

AAI has reported a profit for the first time after the coronavirus pandemic that had significantly impacted air traffic and the aviation sector as a whole.

In the financial years -- 2021-22 and 2020-21 -- AAI had reported a loss.

While the loss was Rs 803.72 crore in the fiscal ended March 2022, the same stood at Rs 3,176.12 crore in the financial year ended March 2021.

These figures excluded exceptional and extraordinary items and tax.

The source in the know told PTI that AAI has recorded a profit of Rs 3,400 crore for the 2022-23 financial year.

This is a provisional figure and the final figure will be known after the audit of the financial results.

The source also said the good performance was mainly due to the high growth in domestic air traffic.

In 2022, domestic air passenger traffic surged 47.05 per cent to 12.32 crore compared to 8.38 crore in the year-ago period.

Further, the passenger numbers soared 51.70 per cent to 3.75 crore in the first three months of this year as against 2.47 crore in the same period a year ago, as per official data.

In 2021-22, AAI had a meagre profit of Rs 8.76 crore, including exceptional items and tax.

Meanwhile, in the fiscal ended March 2022, the government had waived compulsory dividend payment requirement. AAI had requested the waiver in lieu of waiving Air India's that was done prior to the sale of the loss-making carrier by the government to the Tata Group in January 2022.

AAI manages 137 airports, including 24 international and 80 domestic airports. It also provides Air Traffic Management Services (ATMS) over entire Indian airspace and adjoining oceanic areas.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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