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Listen In: Why you should consider investing in infra mutual funds


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.

– Gita Gopinath to leave IMF job
– Centre mulls amending law on drugs to make it stronger
– Top Ola execs exit ahead of potential IPO
– Petrol and diesel prices jump after surge in global crude rates

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

Dalal Street is likely to have a positive start this morning. Nifty futures on the Singapore Exchange traded 22 points higher at 8:20 hours (IST). Mostly Asian shares were trading mixed on Wednesday, even as US stocks rallied overnight buoyant by corporate earnings. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.52 per cent.

Elsewhere, the yield on 10-year Treasuries advanced three basis points to 1.67%. US bonds drove currencies down on Wednesday, with a rise in long-term rates pushing the dollar to an almost four-year high on the yen, but a decline in shorter-dated yields putting it on the back foot against most other major peers. Bitcoin is close to scaling the peak it reached in April. Oil prices turned down after the Chinese government flagged it was looking for ways to tame record high coal prices and that it would ensure coal mines operate at full capacity as Beijing moved to ease a power shortage. Brent crude futures dropped 43 cents, or 0.5%, to $84.65 a barrel, paring a 75-cent rise in the previous session.

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That said, here’s what is making news.

Most brokerages have maintained a bullish view on UltraTech Cement after the company reported a 7.6% year-on-year rise in its net profit for the quarter ended September to Rs 1,300.1 crore, which was below analysts’ expectations. HSBC said significant price increases are required to offset the rising input costs which is a key concern for sustaining the growth momentum.

A revival in the investment cycle is making a case for more allocation to infra MFs. Fund managers believe over the last decade, many companies have deleveraged and repaired balance sheets. Added to this, interest rates are at a two-decade low and will act as a catalyst for infrastructure spending. The government’s initiative on National Infrastructure pipeline provides long-term visibility on spending in key sectors.

Hindustan Unilever’s September-quarter earnings got a curious reaction from the Street. Strong headline numbers of 11% growth in net sales, 9% growth in net profit and a marginal contraction in operating profit margin caused the stock to initially surge nearly 3%. However, volume growth of 4% – against expectations of 5-7% – eventually disappointed the Street since it indicated that the strong performance was led more by pricing than robust consumer demand.

LASLTY,

The cost benefits that accrued to software services providers till now due to Covid-19 related travel restrictions may be coming to an end. Executives at top IT companies signalled a return to pre-Covid-19 margins and revenue while announcing results for the September quarter. According to estimates, resumption of travel is expected to add to costs, impacting margins by 1-3%.

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

Shriram Transport Finance and Hero FinCorp (HFCL) are planning to raise up to $600 million through a syndicated offshore loan on increasing demand in the logistics space.

Engineering services firm L&T Technology Services (LTTS) reported a net profit of Rs 230 crore, up 39 per cent and revenues of Rs 1,608 crore, up 22 per cent for the quarter ended September 30, 2021.

ICICI Prudential Life Insurance Co reported a 48 per cent rise in net profit in the second quarter ended September 2021 led by growth in premium as well as investment income.

FMCG major Nestle India Ltd on Tuesday reported a 5.15 per cent rise in net profit to Rs 617.37 crore for the third quarter ended September, driven largely by a high single-digit volume growth in the domestic market.

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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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