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Mirroring positive moves in Asia, India’s stock markets regained some lost ground on Friday. This snapped a six-day losing run.
On Thursday, benchmark indices fell for a sixth day, their longest losing streak since February, as elevated US bond yields and persisting worries about the Israel-Hamas war led investors to flee risky assets.
U R Bhat, co-founder of Alphaniti Fintech, said high US bond yields meant the bond market was expecting further tightening. Then he turned ominous. “The current level of FPI selling can be managed with domestic flows, but if it doubles or triples, then we are in trouble. The real fall in Indian equities may occur when domestic investors also think on those lines and sell.”
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Markets will continue to try to ignore events in West Asia so long as no invasion is launched, wrote Christopher Wood, global head of equity strategy at Jefferies, in his latest weekly note to investors.
In other news…
India's most valuable company, Reliance Industries, reported a 27.4 per cent rise in second-quarter profit on Friday, boosted by strength in its mainstay oil-to-chemicals business. Earlier, Reliance Jio Infocomm, India's biggest telecom carrier by subscribers, reported its slowest profit growth in seven quarters, hurt by higher expenses and a lack of recent tariff hikes.
Maruti Suzuki posted its highest consolidated net profit during the second quarter, buoyed by its highest ever quarterly sales, a softening of commodity prices, cost reduction efforts, and favourable foreign exchange rates.
The combined net profit of “early bird” companies rose for a third consecutive quarter in July-September 2023. But the figures suggest a continued slowdown in revenue growth and stagnation in earnings over recent quarters.
Tata Group will start making Apple iPhones in India for domestic and global markets within two and a half years. The development highlights India's growing production prowess and a departure from Apple's previous strategy of selling largely Chinese-made new devices to customers around the world.
Ola Electric said it had secured Rs 3,200 crore in funding as part of its equity and debt round from Temasek-led marquee investors and project debt from State Bank of India. The funding round has raised the Bengaluru-based firm’s valuation to $5.5 billion, up from $5 billion.
Tech that: Word from the world of technology and startups
Campus hiring has turned feeble, as IT services companies battle macro uncertainties. The number hired in FY24 is at an all-time low, and IT majors are not hitting campuses to give job offers for FY25 either. Experts say many are giving the ongoing placement season at tech universities a miss and may look at them only after the January-March quarter.
India’s largest IT services company, TCS, received a notice from the Maharashtra government’s Ministry of Labour & Employment regarding the company's delay in onboarding lateral recruits.
Watch it: From The Morning Show
Our marquee two-day event, the BFSI Insight Summit, begins in Mumbai on Monday. As you find what to expect from it, you will also get to know why Chinese companies are under scrutiny in India and what is the Rohini Commission. Watch it all here.
This is Suveen signing off. Please send tips, comments, news, or views about anything from bears on the prowl to lateral recruits to suveen.sinha@bsmail.in.
(Suveen Sinha is Chief Content Editor at Business Standard)
