RBI doubles bullet repayment gold loan limits for urban co-op banks to Rs 4 lakh

The Reserve Bank of India (RBI) made a significant announcement, doubling the lending limits for gold loans under the bullet repayment scheme for urban cooperative banks (UCBs) to Rs 4 lakh.

RBI Governor Shaktikanta Das stated, "It has been decided to increase the existing limit for gold loans under the bullet repayment scheme from Rs 2 lakh to Rs 4 lakh in respect of Urban Cooperative Banks (UCBs) who have met the overall target and sub-targets under the Priority Sector Lending (PSL) as of March 31, 2023." In a bullet repayment scheme, borrowers repay both interest and the principal amount at the end of the loan tenure without periodic repayments.

This decision aligns with the RBI's earlier commitment to provide "suitable incentives" to UCBs that have fulfilled the prescribed PSL targets, where lenders are required to allocate a specific portion of their lending to the marginalized sector.

Furthermore, the RBI, in a circular issued later, confirmed the increase in the monetary ceiling of gold loans granted under the bullet repayment scheme to Rs 4 lakh for UCBs that have met the overall Priority Sector Lending target and sub-targets as of March 31, 2023, and continue to meet those targets.

These revised limits are effective immediately.

Governor Das also announced that the RBI would be introducing a comprehensive regulatory framework for project finance. This initiative aims to strengthen the existing regulatory framework governing project finance and harmonize instructions across all regulated entities. Detailed draft guidelines will be released for public comments.

Additionally, non-bank lenders in the 'middle and base layers' will be permitted to utilize Credit Risk Mitigation instruments to reduce counterparty exposure under the credit concentration norms, similar to their peers classified in the 'upper layer.'

The RBI is also considering introducing Card-on-File Tokenisation (CoFT) creation facilities at the issuer bank-level, enhancing the convenience of e-commerce transactions.

These developments mark significant changes in the financial landscape and are aimed at promoting responsible lending and financial inclusion.

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SML Isuzu Reports 3% Decline in August Sales Following Strong July Performance

On September 1, SML Isuzu saw its shares decline by 3% as the company reported flat sales for August. In August, they sold 1,005 units, compared to 1,002 vehicles in the same period the previous year. While cargo vehicle sales experienced a 6% year-on-year (YoY) decrease, passenger vehicle sales showed a 3% increase.

This decline in sales comes after an impressive 23% year-on-year increase in vehicle sales in the preceding month. In the first quarter of FY24, SML Isuzu reported a substantial 26.4% YoY growth in revenue from operations, totaling Rs 632 crore. Their net profit also surged to Rs 32 crore from Rs 2 crore in the year-ago period.

Furthermore, the company achieved a 400 basis point expansion in operating profit margins, reaching 7% on a yearly basis. (Note: One basis point is equivalent to one-hundredth of a percentage point.)

SML Isuzu's stock closed at Rs 1,308.45 on the National Stock Exchange, marking a decrease of Rs 39.90 or 2.96% from the previous day's closing price.

SML Isuzu, a jointly owned entity of the Japanese Sumitomo Corporation-Isuzu Motors and the Indian entity Swaraj Vehicles, specializes in the manufacturing of commercial vehicles, including trucks and buses. The company operates a production facility in Punjab's Nawanshahr, with an annual production capacity of 24,000 units.

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NDTV Stock Rises 4% Following Approval to Launch 4 Regional Channels by Ministry

New Delhi Television (NDTV) shares surged by 4 percent on August 18 following the Ministry of Information and Broadcasting's approval for the Adani Group-owned broadcaster to launch four regional channels. At 1 pm, the NDTV stock was trading at Rs 226.05, marking a gain of Rs 5.05 or 2.29 percent on the NSE.

According to an exchange filing, NDTV has received official clearance to uplink and downlink four news and current affairs channels: NDTV Rajasthan, NDTV Madhya Pradesh/Chhattisgarh, NDTV Gujarati, and NDTV Marathi.

In an additional announcement, the Indian English news broadcaster revealed its plan to initiate the launch of NDTV Madhya Pradesh/Chhattisgarh on August 21. This strategic expansion follows the Adani Media Group's acquisition of NDTV from its previous promoters in December of the preceding year.

The company's Q1FY24 results displayed a 35.03 percent YoY decline in revenue from operations, amounting to Rs 69.99 crore. Furthermore, NDTV reported a loss of Rs 8.08 crore, contrasting with a net profit of Rs 25.81 crore recorded in the corresponding quarter of the previous year. The operating loss for the quarter stood at Rs 9.68 crore.

NDTV operates in the television and digital broadcasting sector, providing news coverage, analysis, and multimedia content through its television channels and digital platforms. The company generates revenue through advertising and partnerships.

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Over 80 smallcaps gain up to 40% even as market ends flat for the week

The Indian equity benchmarks remained almost unchanged for the week ended June 2 even after hitting a five-month high on buying in broader indices, the outperformance of realty stocks, and better macro and auto sales data. During the week, the 30-pack Sensex gained 45.42 points to close at 62,547.11 and the broad-based Nifty rose 34.75 points to end at 18,534.1.

The broader market, however, did better. For the week, the BSE midcap index rose nearly 2 percent and the small-cap index added 2.4 percent. The large-cap index ended flat. "Global markets were mixed as concerns about a weak global growth outlook persisted. India's Q4FY23 GDP growth improved to 6.1 percent and surprised on the upside," Shrikant Chouhan, Head of Equities Research (Retail), Kotak Securities, said.

India's GDP numbers beat expectations to rise 6.1 percent in the January-March quarter. Manufacturing PMI, too, expanded to a 31-month high of 58.7 in May from 57.2 in the previous month. BSE realty, healthcare and auto indices gained around 1.5-3 percent during the week, he said. BSE oil & gas and energy index corrected around 3 percent.

The auto index got a boost from May sales. Bajaj Auto reported a 29 percent jump in sales in the month at 3,55,148 units and Escorts Kubota reported highest-ever figures for May by selling 9,167 tractors, while Mahindra & Mahindra's sales were up 14 percent YoY. The Nifty realty index gained nearly 4 percent, media 3 percent and healthcare added 2.5 percent. The oil & gas index was down.7 percent and the energy index was nearly 2 percent.

Where is Nifty50 headed?

Rupak De, senior technical analyst, LKP Securities

The Relative Strength Index (RSI) has shown a bearish crossover, indicating a potential downturn in prices. The overall sentiment in the market is expected to remain sideways, indicating a lack of clear direction in the near term. The Nifty is likely to find support at 18,450-18,500, while resistance levels are anticipated at 18,650 and 18,800.

Jatin Gedia, Technical Research Analyst, Sharekhan by BNP Paribas

The Nifty consolidated during the week but will likely resume the uptrend in the coming week. From a short-term perspective, we maintain our positive outlook on the index for a target of 18,800. The level of 18,460- 18,420 will act as the crucial support zone, while the hurdle is at 18,600–18,660.

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Top 10 Factors that affect the Stock Market on Monday

Bulls kept charging the markets throughout the truncated week that ended April 7, pushing the benchmark indices to sustain their rally. A host of reasons such as higher-than-expected PMI manufacturing data, monthly auto sales numbers, provisional Q4FY23 numbers from banks and NBFCs, FII inflow, and the RBI's surprise pause in interest rate hike with upward revision in growth forecast to 6.5 percent from 6.4 percent aided the surge.

The BSE Sensex climbed 841 points or 1.4 percent to 59,833, and the Nifty50 rose 239 points or 1.4 percent to 17,599, supported by banking and financial services, auto, pharma, and infrastructure stocks.

The broader markets also traded higher with the Nifty Midcap 100 and Smallcap 100 indices gaining 1 percent and 2 percent.

After yet another encouraging week, the momentum is expected to continue along with some volatility in the holiday-shortened week beginning April 10 with focus on corporate earnings, inflation data, global news flows, and FOMC minutes, experts said. 

1) Corporate Earnings

The corporate earnings season for the March FY23 quarter will be kicked off by index heavyweights Infosys on April 13, Tata Consultancy Services on April 12, and HDFC Bank on April 15.

2) CPI Inflation

The consumer price inflation, which measures the change in prices of a basket of goods and services, is likely to drop below the 6 percent mark in March on April 12, with moderation in food inflation, against 6.4 percent in the previous month, while core inflation is likely to be sticky around 5.9-6 percent.

3) US Inflation and FOMC Minutes

On the global front, investors will look for cues from US inflation numbers and FOMC minutes scheduled to be released on April 12. Overall, the inflation is expected to moderate further to around 5.3 percent in March against 6 percent in the previous month, while the core inflation is likely to be steady at around 5.5 percent, as per the forecast available on Trading Economics.

4) Global Economic Data Points

5) FII Flow

The consistent FII inflow due to the falling US dollar index and bond yields also aided the markets and experts believe the flow is expected to continue given the hope that Federal Reserve may consider a pause in interest rate hike cycle sooner than later.

6) Oil Prices

Crude oil prices reached to a month's high, with international benchmark Brent crude futures rising to over $85 a barrel, from $79.77 on a week-on-week basis and WTI crude climbing from $75.67 to $80.46 a barrel in the same period, after a surprise OPEC+ output cuts and more-than-expected draw in US oil stocks. But the gains were capped towards the end of week after the weak US economic data raised fears over demand outlook.

7) Technical View

The Nifty has formed bullish candlestick pattern on the weekly scale, with making higher top higher bottom for second consecutive week, and the momentum indicator RSI (relative strength index) giving a nice positive crossover. Also the index climbed back above the 50-week EMA (exponential moving average - 17,426), which is another positive sign.

8) F&O Cues

The weekly Option data indicated that the 17,600 is expected to be a crucial level for the next direction of Nifty50, where we have seen maximum Call as well as Put open interest. Further, the index may find strong resistance around 17,600-17,800 area, whereas 17,500 is expected to be near-term support followed by crucial support at 17,000 levels.

9) India VIX

The volatility cooled down considerably in the last couple of weeks, with the India VIX fell by 8.8 percent for the passing week to 11.79, the lowest weekly closing level since July 2021, from 12.93 levels last week.

10) Corporate Action

Schaeffler India, Britannia Industries, Varun Beverages, Visaka Industries, Edelweiss Financial Services, and Goodluck India will trade ex-dividend, while Emami will turn ex-buyback in the coming week.

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Top 5 stocks that moved the most on December 9

Benchmark indices saw a lot of pain on December 9. At one point, Sensex was down over 600 points and finally closed 0.62 percent lower at 62,181, down 389 points. Nifty shed 112.70 points to end at 18,496. About 1199 shares advanced, 2220 shares declined, and 113 shares were unchanged. Here are the top 10 stocks that moved the most

One 97 Communications | CMP: Rs 544.75 | The parent company of Paytm surged over 7 percent after the company said its board will consider a share buyback on December 13. "The management believes that given the company's prevailing liquidity and financial position, a buyback may be beneficial for our shareholders," Paytm added.

HCL Tech | CMP: Rs 1029.80 | At its investor day held on December 8 in New York, the company said revenue growth in constant currency terms is seen at lower end of 13.5-14.5 percent YoY band. The stock was the biggest index loser, tumbling over 6 percent.

Vadilal Enterprises | CMP: Rs 2674.50 | The stock gained 3.46 percent after the board approved sale and disposal of shares of Vadilal Forex & Consultancy Services Limited and Majestic Farm House Limited. It also approved sale and disposal of certain movable properties and immovable properties of the company.

Marico | CMP: Rs 524 | The stock gained 2.6 percent after Marico South East Asia Corporation, a wholly owned subsidiary of the company, entered into a definitive agreement to acquire 100% shares of Beauty X Joint Stock Company ("Beauty X"), an entity incorporated in Vietnam which owns the personal care brands "Purité de Prôvence" and "Ôliv".

Sun Pharma | CMP: Rs 993 | The stock gained 1.24 percent after brokerages said that impact of 'import alert' on Halol plant will have insignificant impact on revenue and profit. "US generics story stopped being material for company since 2019-20," noted Bernstein. It has an Outperform call on the stock with target at Rs 1099 per share.

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