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Geopolitical issues, Q2 results to set equity market course

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Sensex equity Nifty

Mumbai, Nov 4: With the impending US sanctions on Iran, as also the ongoing quarterly earnings season and the upcoming festival of Diwali, the Indian equity market is likely to witness a short but eventful trading week ahead.

Among the global factors, the US reimposing sanctions on Iran from Monday (November 5) is seen as a major depressant for global investor sentiment, which would eventually reflect on the Indian market.

“The coming week is truncated on account of festivities in India, but (dotted with an) important series of events within and outside the country. The week will begin with the global blockade against Iran followed by the US legislative elections, apart from ongoing corporate earnings in India,” said Rahul Sharma, Senior Research Analyst with Equity99.

“While the mood will be cheerful due to Diwali, these events will dictate market movement and investors should follow a cautious approach during the three-day trading week,” he added.

Trading at stock exchanges, however, won’t take place on November 7-8 on account of Diwali, other than the brief traditional Muhurat Trading on Diwali day.

Meanwhile, the US has temporarily allowed eight countries to continue buying oil from Iran, and India features in the list, according to media reports. This would most likely soothe Indian market sentiments.

Another geopolitical matter that the markets would follow is the US-China trade talks. Trump last week said his conversation with his Chinese counterpart Xi Jinping laid “heavy emphasis on trade” and also described it as “long and very good”.

Further, the ongoing quarterly earnings would also influence the stock market in the next few trading days, analysts believe. Corporate results were a major factor for the substantial gains made by both key equity indices during the week ended Friday (November 2).

For the week under review, the S&P Bombay Stock Exchange (BSE) Sensex gained 1,662.34 points, or 4.74 per cent, to close at 35,011.65.

The 50-share Nifty of the National Stock Exchange (NSE) advanced 523 points, or 5.21 per cent, to settle at 10,553.

Investor sentiments also improved with the downward movement in crude oil prices.

“The benchmark Brent crude fell six per cent this week and 16 per cent since the beginning of October to $72.91 a barrel as fears of oil shortage faded,” said Sharma.

Analysts are of the view that value-buying by investors after the fortnightly loss also supported the Indian equity market in the week gone by.

Provisional figures from the stock exchanges showed that foreign institutional investors sold shares worth Rs 5,706.24 crore during the week, whereas domestic institutional investors bought Rs 6,377.02 crore worth of stocks.

Figures from the NSDL showed that foreign portfolio investors divested Rs 4,232.05 crore in the equities segment during the week ending November 2.

On the technical outlook for the upcoming week, Deepak Jasani, Head of Retail Research at HDFC Securities, said the NSE Nifty50 would witness resistance at 10,710 points and is likely to receive support at 10,460 level.

IANS

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Hyundai bets on diesel models, launches Tucson SUV

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Chennai, July 14 : The second largest car maker in India Hyundai Motor India Ltd while continuing to bet on diesel powered vehicles is also looking at faster demand recovery from tier 2/3 cities, said a senior official on Tuesday.

Hyundai Motor also launched its new premium sports utility vehicle (SUV) Tucson for the Indian market.

Speaking to reporters, Tarun Garg, Director (Sales, Marketing and Service) said the timing of Tucson’s launch is right as there are over five lakh Creta buyers in the country who are looking for an upgrade to a premium SUV.

The new Tucson’s starting price is about Rs 22 lakh.

“With over 6.5 million customers worldwide, Tucson is one of the best-selling SUV’s across the world,” S.S. Kim, Managing Director and CEO told reporters.

He said the model was unveiled at the Auto Expo 2020.

Garg said the booking for diesel engine models are growing and the demand is across the country and more so from tier 2/3 cities.

He said when the fuel prices go up, buyers will look at fuel economy and diesel engines are fuel efficient.

According to Garg, Hyundai Motor has got over 45,000 bookings for its SUV Creta model and 56 per cent of that are for diesel engine variant.

Similarly, one third of the booking for Venue and Verna are for diesel models, Garg said.

“SUV lovers want much more than the fuel economy which diesel vehicles offer. It appears demand will stablilise at this level. There is also good demand for petrol models,” Garg added.

Queried about the pay cuts implemented by various companies and its impact on buyers scaling down their model preference Garg said he is not seeing any such trend.

According to him, buyers prefer to come to the showroom to take delivery of new cars even though Hyundai Motor offers to deliver the car at their door step.

Garg said it is not possible to predict the likely sales for 2020 as some states have Covid-19 lockdown restrictions.

He said the company is watching the market behaviour on a monthly basis.

Garg said during June 2020, the company has reached 75 per cent of June 2019 demand figures, In July 2020 the car maker plans to touch 90 per cent of July 2019 levels.

On the availability of components as the company is planning to start third shift in its plant Garg said the localisation levels are very high and the dependence on components from China is very low.

According to Garg the company’s supply chain is ready to meet the demand for increased components as third shift production is soon to start.

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No lay-offs by Wipro amid crorona crisis, no such plan

The Bengaluru-headquartered IT behemoth employs more than 1.75 lakh people in several countries across the globe.

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Azim Premji Wipro

Bengaluru, July 13 : Global software major Wipro has not laid off any employee during the Covid-19 pandemic nor has any such plan at the moment, a top company official said on Monday.

“I just want to give comfort and say this categorically that we have not laid off a single employee as the pandemic unfolded,” Wipro Chairman Rishad Premji said at the company”s 74th annual general meeting (AGM) held virtually.

“At the moment, we have no plans to lay off anybody at the company,” he said, replying to a female shareholder.

“We are trying to drive cost deductions through various other means operationally and otherwise,” said Premji.

The Bengaluru-headquartered IT behemoth employs more than 1.75 lakh people in several countries across the globe.

–IANS

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Google to invest Rs 75,000 crore to boost digitisation in India

The investment will focus on four areas important to India’s digitisation– first enabling affordable access to information to every Indian in their own language.

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Sundar Pichai

New Delhi, July 13 : Google CEO Sundar Pichai on Monday announced a Google for India digitisation fund through which, the company will invest Rs 75,000 crore or approximately $10 billion over the next five to seven years to help India go digital.

“We will do this through a mix of equity investment, partnerships and an operational infrastructure ecosystem in India. This is a reflection of our confidence in the future of India and its digital economy,” Pichai said during the Google for India virtual conference.

The investment will focus on four areas important to India’s digitisation– first enabling affordable access to information to every Indian in their own language.

“Second, building new products and services that are deeply relevant to India”s unique needs. Third, empowering businesses to continue or embark on digital transformation. And fourth, leveraging technology and Artificial Intelligence for social good in areas like health, agriculture and education,” the Google CEO said.

India’s Union IT Minister Ravi Shankar Prasad were also present during the conference.

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