Business Live: Shares ride high on ICICI Bank, Reliance surge; oil falls as India’s COVID-19 surge to weigh on fuel demand

The Sensex and the Nifty opened the day on a positive note riding on gains in Reliance and ICICI Bank.

Join us as we track the top business news through the day.

2:30 PM

Indian tech hub Bengaluru to enter lockdown as infections surge

Yet another city enters lockdown.

Reuters reports: “The southern Indian state of Karnataka, home to technology and outsourcing hub Bengaluru, will impose a lockdown for 14 days starting from April 27 evening in an effort to contain a surge in COVID-19 cases, the state’s chief minister said on Monday.

Karnataka is the latest region to enter a lockdown after similar curbs in many parts of India, which is battling a massive second wave of infections that has pressured its health system.

Bengaluru, a city of 12 million, reported more than 20,000 new infections on Sunday, its highest single-day tally so far and second only to the capital, Delhi.”

1:30 PM

Porsche India reports 52% increase in sales at 154 units in Jan-Mar qtr

A great quarter for the luxury carmaker.

PTI reports: “Luxury sports car maker Porsche on Monday reported a 52 per cent increase in its sales at 154 units in the January-March quarter this year as compared with the same period last year.

Early indications of a revitalised luxury market are seen with the company realising its best quarterly results in India in the last seven years, the automaker said in a statement.

This achievement makes Porsche one of the fastest growing luxury car brands in India this year, it added.

“Despite the ever changing pandemic-related measures, we have managed to outperform our quarterly sales results of the past seven years and secured the highest first quarter order intake in five years. This drives our motivation for the coming months,” Porsche India Brand Head Manolito Vujicic said.

The key to this performance has been a number of launches, including four variants of the new Panamera luxury performance saloon that resulted in an average of one new delivery every week to the end of March, the company said.

Porsche India also recorded the highest number of Macan SUVs sold in a quarter since 2015, it added.

The result was a 38 per cent increase in the delivery of SUVs in January-March quarter as compared with same period last year along with continuing demand for Porsche’s range of two-door sports cars that rose by 26 per cent for the 911, 718 Boxster and Cayman over the first three months of 2020, the company said.

Porsche said its presence in the market has been enhanced with the recent opening of two new facilities in Delhi and Mumbai.

“As part of a clear network expansion strategy, Porsche India plans to open five new facilities in major cities in the next twelve months, underlying the brand’s firm commitment to the Indian market,” it added.

Besides, Porsche India is also preparing for the expansion of its model offering, including the launch of the fully-electric Taycan in India, it added.

Porsche said it is also working on new attractive offers like the appreciation referral programme, a platform for existing customers to invite friends and relatives to join the Porsche family to avail exclusive benefits.”

1:00 PM

‘A majority of companies plan to cover vaccination cost fully or partly for staff’

Early this month, the Union Government allowed vaccination at the workplace, but in a survey, 80% of the employers expressed their preference for the vaccination being carried out at a third-party clinic or hospital.

One-hundred-and-fifty employers participated in the survey conducted by advisory, broking and solutions company Willis Towers Watson in April to gauge vaccination trends in India. Over 50% of the employers said they planned to facilitate vaccination for their employees as well as their dependents.

Almost all the surveyed employers (97%) had plans to cover or subsidise the vaccination cost for their employees, while 78% plan to do so for the spouse/partner; 74% for the children and 59% for the parents.

While 73% of the participating companies will cover the cost of vaccination, 22% would cover administration expense and only 10% of the cost of logistics such as travel expenses.

12:30 PM

India in talks with us for long-term crude supply: Guyanese Minister

India, the world’s third-largest crude consumer and importer, has approached Guyana’s government about a possible long-term deal to buy the South American country’s oil, a Guyanese official said.

India has expressed interest in buying one of the 1 million-barrel cargoes Guyana’s government is entitled to in order to test the crude in its refineries, according to Guyana’s Natural Resources Minister Vickram Bharrat. If the crude is compatible, the parties could begin talks on a long-term arrangement.

India’s oil demand has risen by 25% in the last seven years, more than any other country, and officials there have pledged to use the country’s position as a leading purchaser as a “weapon”in an effort to keep prices low.

New Delhi is already exercising its growing clout in the crude market. It viscerally opposed a decision by the Organization of the Petroleum Exporting Countries and itsallies, known as OPEC+, to extend production cuts that have lifted the price of oil, and is seeking to diversify its purchases away from top producer Saudi Arabia.

12:00 PM

ICICI Bank shares gain over 6% after Q4 earnings

Today’s big mover.

PTI reports: “Shares of ICICI Bank on Monday gained over 6 per cent after the company reported a nearly four-fold jump in its March quarter consolidated profit.

The stock jumped 6.11 per cent to Rs 604.90 on BSE.

On NSE, shares of the company gained 6.23 per cent to Rs 605.50.

ICICI Bank on Saturday reported a nearly four-fold jump in its March quarter consolidated profit to Rs 4,886 crore as against Rs 1,251 crore in the year ago period, and spoke of calibrating growth in the near term given the second wave of COVID-19 infections.

The second largest private sector lender, which reported more than three-fold jump in its standalone net at Rs 4,402 crore, said that things will be better in the next two months and exuded confidence of having a strong balance-sheet to deliver consistent returns.

We will calibrate our growth in the near term based on the operating environment and conditions resulting from the second wave of the COVID-19 pandemic, its executive director Sandeep Batra told reporters on a conference call after the announcement of the results.

Income, on a consolidated basis, rose to Rs 43,621 crore in January-March 2021 from Rs 40,121 crore in the year-ago quarter.

The bank’s core net interest income increased 17 per cent to Rs 10,431 crore on an 18 per cent growth in domestic advances and a marginal decline in net interest margin to 3.84 per cent from the year ago’s 3.87 per cent.”

11:30 AM

Oil falls as India’s COVID-19 surge to weigh on fuel demand

Oil falls on lockdowns threaten to dent demand.

Reuters reports: “Oil prices fell on Monday on fears that surging COVID-19 cases in India will drive down fuel demand in the world’s third biggest oil importer and as investors adjusted positions ahead of a planned increase in OPEC+ oil output from May.

Brent crude futures dropped 38 cents, or 0.6%, to $65.73 a barrel by 0507 GMT, following a 1.1% rise on Friday. U.S. West Texas Intermediate (WTI) crude futures were down 31 cents, or 0.5%, at $61.83 a barrel, after rising 1.2% on Friday.

Both benchmark crudes fell about 1% last week.

“Market sentiment was dented on worries that surging number of COVID-19 cases in some countries, especially in India, will slash fuel demand,” Kazuhiko Saito, chief analyst at commodities broker Fujitomi Co.

Prime Minister Narendra Modi urged all citizens to be vaccinated and exercise caution, saying on Sunday the “storm” of infections had shaken India, as the country set a new global record for the most COVID-19 infections in a day.

In Japan, the world’s fourth-largest oil buyer, a third state of emergency in Tokyo, Osaka and two other prefectures began on Sunday, affecting nearly a quarter of the population as the country attempts to combat a surge in cases.

“Investors, including speculators, have been shifting funds from oil markets to grain markets recently as volatility has been much higher in prices of corn and other grains,” Fujitomi’s Saito said.

Chicago corn, wheat and soybeans hit multi-year highs last week as concerns over cold weather damage to crops across the U.S. grain belt underpinned prices, along with expectations for more use of agricultural products for biofuels.

“There were technical adjustments as the oil markets’ rally has been overdone and as the OPEC+ is set to add supply from May,” said Naohiro Niimura, a partner at Market Risk Advisory.

“Brent could head down to around $60 a barrel going forward as a recovery in demand will likely be limited without active travel restrictions worldwide,” he said.

The Organization of the Petroleum Exporting Countries and allies led by Russia, known as OPEC+, surprised the market at its April 1 meeting by agreeing to ease production curbs by 350,000 barrels per day (bpd) in May, another 350,000 bpd in June and a further 400,000 bpd or so in July.

The producer group will hold a largely technical meeting this week, with major changes to policy unlikely, Russian Deputy Prime Minister and OPEC+ sources said last week.

A technical committee meeting is set for Monday, where market fundamentals and compliance with production cuts will be discussed.

U.S. energy firms, meanwhile, cut the number of oil rigs operating for the first time since March, as rigs fell by one to 438 last week, according to energy services firm Baker Hughes Co.”

11:00 AM

Google announces $18 million to aid India in COVID-19 crisis

Google and Alphabet CEO Sundar Pichai has announced ₹135 crore or $18 million funding support for India’s current pandemic battle, stressing that he was ‘devastated to see the worsening COVID crisis’ in the country.

“Right now, India is going through our most difficult moment in the pandemic thus far. Daily COVID-19 cases continue to set record highs, with hospitals filled to capacity and in need of urgent supplies to cope with the increasing number of patients,” Google’s India head India Sanjay Gupta said in a statement.

The ₹135 crore package includes a ₹20 crore grant to the non-government organisation (NGO) GiveIndia to provide cash assistance to families hit hardest by the crisis to help with their everyday expenses, and to UNICEF to help get urgent medical supplies, including oxygen and testing equipment, to where it’s needed most.

10:30 AM

Rupee rises 24 paise to 74.77 against US dollar in early trade

The positive sentiment in stocks has brushed off on the rupee as well.

PTI reports: “The Indian rupee advanced by 24 paise to 74.77 against the US dollar in opening trade on Monday, tracking weaker dollar against key rival currencies and a positive trend in the domestic equity market.

At the interbank forex market, the local unit opened at 74.81 against the US dollar, then gained some strength to quote at 74.77, a rise of 24 paise over its last close.

In the previous session, the rupee had settled at 75.01 against the American currency.

The rupee started on a stronger note against the greenback tracking the decline in the dollar and positive equity markets, Reliance Securities said in a research note.

Moreover, Asian currencies were mostly stronger this morning and could lift sentiments back home, the note added.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.18 per cent to 90.69, ahead of the meeting of the US Federal Reserve this week.

“The Fed’s next meeting ends on Wednesday, and while no major policy changes are expected, investors will pay close attention to US Federal Reserve Chairman Jerome Powell’s comments after the meeting,” the note said.

Meanwhile, global oil benchmark, Brent crude futures, fell 0.38 per cent to USD 65.86 per barrel.

On the domestic equity market front, the BSE Sensex was trading 763.25 points or 1.59 per cent higher at 48,641.70 in early deals, while the broader NSE Nifty rose 210.55 points or 1.47 per cent to 14,551.90.

Foreign institutional investors were net sellers in the capital market on Friday as they sold shares worth Rs 1,360.76 crore, as per exchange data.”

10:00 AM

Indian shares ride high on ICICI Bank, Reliance surge

Stocks stage a recovery.

Reuters reports: “Indian shares jumped on Monday, with private-sector lender ICICI Bank Ltd climbing after strong quarterly results, as investors hoped that surging coronavirus cases could peak soon and mitigate the pandemic’s economic impact.

The NSE Nifty 50 index rose 1.36% to 14,539.15 by 0426 GMT, while the benchmark S&P BSE Sensex was up 1.49% at 48,587.7. Up to Friday’s close, the indexes had shed around 7% and 9%, respectively, from peaks hit in February.

Total COVID-19 cases in India surged by a 352,991 on Monday, a fifth straight day of record jump in new infections, as the increase overwhelmed its healthcare system and prompted nations like the United States to offer aid.

However, analysts say the current virus wave will not have an impact on the stock market similar to that of the first.

“This time, while we may not have a cure for the pandemic, we understand it better and the market believes it will worse-case push growth out by three to six months, which is partially already reflected in the correction we have had,” said Amit Shah, head of India equity research at BNP Paribas in Mumbai.

Shah also said markets may see a 10% correction from the peak.

ICICI Bank topped gains with a 6.2% jump to a near six-week high, after reporting a more than three-fold surge in March-quarter profit, while HCL Technologies slid 3.3% on downbeat earnings.

Mphasis Ltd climbed 6.5% to a two-week high after Blackstone made an offer to buy an additional 26% stake in the IT outsourcing services provider for 82.62 billion rupees ($1.10 billion).

Reliance Industries advanced 3% after the company and BP Plc announced the start of production from a gas field off the east coast of India.

Nifty 50 components HDFC Life Insurance Company and Tech Mahindra are set to report their quarterly results on Monday.”

9:30 AM

Be an early bird to save on taxes

You would be thinking, we just got over one tax ‘season’ viz. March 2021. Why talk of the next season right now? Well, the earlier the better. You get more time to plan, execute and revise your plan.

It is a mindset that when we have a deadline for, say, submission of a form or filing a tax return, we take the last date as ‘the’ date for doing it. The fact is, time is up to the last date and delay is not desirable unless there is a reason.

For example, if we have to pay a fine or penalty by a certain date, there is a reason to delay it to the deadline as we can earn interest up to that date. However, for tax-saving investments, it is the reverse: earlier the better.