Business News at 05:30 pm on 16th October 2023

Let’s begin. India’s wholesale price index (WPI)-based inflation was (-) 0.26 per cent (Provisional) for the month of September, 2023, according to the data released by the Ministry of Commerce & Industry. The WPI inflation rate during August stood at (-)0.52 per cent and and 10.55 per cent in September 2022. The WPI-based inflation rate has been in the negative for the sixth consecutive month since April. At (-) 0.26 percent, the latest print is well below the consensus estimate, with economists having predicted it likely rose to 0.7 per cent last month. The ministry said, quote, “Deflation in September 2023 is primarily due to fall in prices of chemical & chemical products, mineral oils, textiles, basic metals and food products as compared to the corresponding month of previous year,” unquote.

In some more industry news, Federal Bank Limited on Monday posted a profit of Rs 1000.16 crore for the quarter ended September 2023, up 35.0 per cent in comparison to Rs 740.91 crore during the same quarter last year, surpassing estimates. It posted total interest earned during the second quarter of FY24 at Rs 5791.28 crore, up 36.0 per cent as against Rs 4258.93 crore during the second quarter of previous year. The private sector bank posted a total income of Rs 6548.20 crore during the quarter in review, up 34 per cent from Rs 4886.58 crore during the same period last year. Meanwhile, total expenditure during the quarter stood at Rs 5147.92 crore as against Rs 3605.43 crore a year earlier.

Meanwhile, Online travel agency Yatra.com on Monday posted second quarter profit at Rs 5.99 crore, up 2.7 per cent as against Rs 5.83 crore during the same period last year. It posted revenue from operations at Rs 110.18 crore, up 23.9 per cent in comparison to Rs 88.96 crore during the second quarter of FY23. The company EBITDA stood at Rs 15.9 crore, up 34.4 per cent on-year. Yatra.com posted total income during the quarter in review at Rs 112.64 crore, up 22.6 per cent from Rs 91.86 crore during Q2FY23. Meanwhile, total expenses during the second quarter of FY24 was at Rs 105.31 crore, up 23.8 per cent as against Rs 85.07 crore during the same period last year.

Over to economy. India’s high quality labour-intensive goods such as apparel, footwear, carpets and cars will benefit from the removal of import duties by the UK, under the proposed free trade agreement between the two countries, according to think tank GTRI. However, the overall gains for India will be limited because most of the goods from here are already entering the UK at low or zero tariffs (import or customs duties), the Global Trade Research Initiative said. In 2022-23, India’s merchandise exports to the UK were valued at USD 11.41 billion and out of this, USD 6 billion worth of goods such as petroleum products, medicines, diamonds, machine parts, airplanes, and wooden furniture entered Britain at zero levy, it said.

On to money matters. Ageas Federal Life Insurance has announced the launch of ‘Ageas Federal Life Insurance Super Cash Plan’ – a non-linked, participating savings plan for retail customers. This plan offers a combination of immediate liquidity and financial stability for the family, making it an efficient option for people seeking a stable income as well as financial protection, the insurer said in a statement. The plan offers immediate liquidity through regular income which could start as early as the first month of the policy, depending on when the policyholder has opted to receive returns. Additionally, the plan provides guaranteed boosters after every fifth policy year designed to enhance savings. The policyholder also receives a lumpsum maturity benefit at the end of the policy term.

Now, Let’s see what are the top stock bets from Jefferies. Jefferies sees 28% upside potential in HDFC Life Insurance Company and recommended ‘Buy’ with an upside target of Rs 800 in its report. Also, it recommended ‘Hold’ on the Avenue Supermarts with a revised target price of Rs 3,850. In the end, Jefferies sees 6% upside potential in Dalmia Bharat and recommended ‘Buy’ with an upside target price of Rs 2,440. It has cautioned that a delay in ramping up new capacities, a higher than expected fight for market share in key eastern regions resulting in sharper than expected price decline, and costs sustaining at higher than expected levels could act as potential risk factors.

Lastly, let’s see how the share market performed today. The benchmark equity indices ended Week’s first trading in negative territory. The NSE Nifty 50 slipped 0.10% to settle at 19,731.75, while the BSE Sensex shed 115.81 points to 66,166.93. Divis Laboratories, Nestle India, TCS, IndusInd Bank and Asian Paints were among the top Nifty losers, while gainers included Hero MotoCorp, JSW Steel, Tata Steel, Coal India and UPL.