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Market News Top 10 News

Adani Green & TotalEnergy to Form Rs 2,500Cr JV – Top Indian Market Updates

adani

Here are some of the major updates that could move the markets tomorrow:

Adani Green and TotalEnergy to form Rs 2,490Cr JV

Adani Green Energy’s board approved the execution of a binding term sheet between Adani Green Energy Twenty Three Ltd and TotalEnergies. Total will make a further investment of $300 million (~₹2,490 crore) to form a new 50:50 Joint Venture (JV) company. The new JV will house a 1,050 MWac portfolio, comprising a mix of already operational, under construction, and under development assets with a blend of both, solar and wind power.

Read more here.

ONGC willing to wait to regain oil from Russian project

According to ONGC Videsh’s Head of Investment, ONGC wants to eventually receive a share of crude from a Russian project it partly owns. However, the company is willing to wait because Russian oil is hard to ship now. ONGC has a 20% stake in Russia’s Sakhalin-1 oil & gas project. The company is also in talks with the Russian government and company shareholders to resume taking oil under a production-sharing arrangement.

Read more here.

Aurobindo Pharma’s Andhra plant receives observation from USFDA 

The US Food & Drug Administration (USFDA) has issued a Form 483 with one observation after inspecting a formulation production facility of Aurobindo Pharma’s unit in Andhra Pradesh. USFDA inspected the Unit IV of APL Healthcare Ltd in Tirupati district of Andhra Pradesh from September 13-19, 2023. APL Healthcare Ltd is a wholly-owned subsidiary of Aurobindo Pharma.

Read more here.

Verizon denies Vi acquisition rumours

Verizon Consumer Group has categorically denied claims of it considering the acquisition of Vodafone Idea (Vi). Vodafone Idea also refuted any discussions regarding a potential acquisition with Verizon, Amazon, or Elon Musk-owned Starlink. The company emphasised India’s significance in its global growth strategy, citing the country’s unique capabilities and access to talent pools.

Read more here.

Viacom18 to showcase ISL on 8 TV channels, Jio Cinema

Viacom18 will showcase the upcoming Indian Super League (ISL) 2023–24 season across eight linear channels in four different languages. The tournament will also be streamed live for free on Jio Cinema. The matches will be aired on Sports18 Khel (Hindi), Sports18 1 SD & HD (English), VH1 SD & HD (English), Surya Movies (Malayalam), DD Bangla, and Colors Bangla Cinema (Bengali).

Read more here.

Apollo Tyres halts tyre production in Gujarat plant

Apollo Tyres has temporarily ceased bias off-the-road (OTR) tyre production at its manufacturing facility located in Limda, Gujarat. The decision was prompted by concerns raised among shop floor employees regarding the renewal of a long-term settlement agreement. The company has started discussions and negotiations with labour union representatives to address the employees’ concerns.

Read more here.

Culver Max to replace Zee Entertainment in FTSE indices post-merger

FTSE has announced that Culver Max Entertainment (Sony) will replace Zee Entertainment in all FTSE indices post-merger. For every 100 shares of Zee Entertainment held, shareholders will receive 85 shares in Culver Max Entertainment (Sony). This transition is not only significant but also removes a major uncertainty that has been looming over the stock. The timelines and final date of the merger are yet to be announced.

Read more here.

PFC may fund 70% of SJVN’s ₹1.19 lakh crore RE projects

SJVN has signed a Memorandum of Understanding (MoU) with Power Finance Corporation Ltd. (PFC) for financial assistance for projects. The MoU pertains to various diversified project portfolios, including renewable energy (RE) and thermal generation projects. The overall cost of the projects is nearly ₹1.19 lakh crore. The term loan financial assistance is proposed tentatively at 70% of the project cost.

Read more here.

Central trade unions of Coal India to observe a 3-day strike

Coal India Ltd (CIL) has received a three-day strike notice from central trade unions. The notice prompts concerns about the potential impact on the nation’s coal supply and electricity generation. The joint strike notice was issued jointly by prominent labour organisations BMS, INTUC, HMS, AITUC, and CITU. The three-day strike will be from October 5 to October 7, 2023. 

Read more here.

Delhi HC upholds SBI’s eligibility criteria for ATM caretaker services

The Delhi High Court has upheld SBI’s eligibility criteria for selecting caretaker agencies for its automated teller machines (ATM) in Delhi. The High Court stated that SBI is best equipped to gauge the practicalities involved. Recently, a startup alleged that the eligibility criteria barred start-ups from participating in the tenders due to strict requirements. Only bidders with a minimum average annual turnover of ₹150 crore in the past three years and prior experience in providing similar services for at least five years were eligible.

Read more here.

India to mandate annual audit of pharma suppliers by drugmakers

According to a government document, India will make it mandatory for drugmakers to audit their raw material suppliers at least once a year. The govt is tightening rules after India-made cough syrups were linked to 141 children’s deaths worldwide. The new mandate, along with additional testing rules for cough syrup exports implemented in June, shows that India is seeking to reassure buyers about the safety of its $42 billion pharmaceuticals industry.

Read more here.

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Daily Market Feed Post Market Analysis

Bearishness to Continue? – Post-Market Analysis

Post-market analysis for Aug 11, 2023:

NIFTY started the day at 19,554 with a gap-up of 11 points. The index made a nearly 70-point red candle at opening (crossing yesterday’s low and the round level support of 19,500) and made lower lows to hit 19,440 levels. At 1 PM, the index made a sharp rebound of 40 points in a single candle but couldn’t sustain it as the selling pressure kicked in. Then, the index continued the fall to breach the day’s low. Nifty closed at 19,428, down by 114 points or 0.59% 

Nifty chart Aug 11 - post-market analysis

BANK NIFTY (BNF) started the day at 44,568 with a small gap-up of 26 points. Bank Nifty fell 250 points in the first 5min itself (breaching the important support zone of 44,500) and fell to 44,270 levels. The index then consolidated within a 150-point range with volatility and broke down from the consolidation at 3 PM. BNF closed at 44,199, down by 342 points or 0.77%. 

Bank Nifty chart Aug 11 - post-market analysis

All indices except Nifty PSU Bank (+1.25%) closed in red. Nifty Media (-1.8%) fell the most. 

Major Asian markets closed mixed (the Chinese market fell 2%). European markets are currently trading in the red.

Today’s Moves

HCL Tech (+3.2%) was NIFTY50’s top gainer. The IT major announced a global strategic partnership with Verizon for managed network services.

Indian Overseas Bank (+13.36%) rallied after CARE Ratings assigned a fresh rating of CARE A1+ to the bank’s proposed certificate of deposits of ₹10,000 crore.

Kalyan Jewellers (+11.5%) jumped after HSBC raised its target price for the jewellery stock after the company posted its Q1 earnings.

IndusInd Bank (-2.3%) was NIFTY50’s top loser.

Apollo Tyres (-8.2%) crashed after the company reported lower-than-expected revenue growth in Q1.

Alkem Labs (-7.7%) fell sharply after the company reduced its India business revenue growth forecast to “high single-digit” from low double digits for FY24. BofA sees a downside of 15% to ₹3,500 for the stock.

Markets Ahead


The Indian markets are still looking very weak.

Nifty: The index has closed near the support zone of 19,420. So if there’s a flat or gap down opening on Monday, the index can further fall to 19,360 and 19,300 eventually. The important resistance level to watch out for is 19,500.

Nifty has filled the gap created near 19,420 levels and has taken support. So the index might move back up from here or take a pause. If the fall continues, then the levels mentioned above could be achieved.

Bank Nifty: The immediate support for the index can be 44,200 levels, and the major resistance will be 44,500 levels. But Bank Nifty is in a volatile zone between 44,500 and 43,400. So as long as the index is in this zone, there can be movements happening on both sides.

Monday’s opening will be crucial. If there’s a flat opening and selling continues or if it’s a gap-down opening, both indices may continue to fall.

The inflation rate in the US climbed 3.2% YoY in July, as compared to analyst expectations of 3.3%. This data is the key metric the US Federal Reserve will consider in deciding whether to continue raising interest rates. On the other hand, India’s industrial production fell to 3.7% in June 2023, compared to 5.3% in May 2022 and 12.6% in June 2022.

How did this week go? Are you in net profit or loss? Let us know in the comments section of the marketfeed app.

Don’t forget to tune into The Stock Market Show at 7 PM on our YouTube channel!

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Daily Market Feed Pre Market Report

NIFTY to Open Flat. Trend Setting Day for Next Week! – Pre-Market Analysis Report

Here are some of the major updates that could move the markets today:

U.S. inflation data for July came out better than expected, with traders betting this would signal a pause in interest rate hikes. The U.S. markets rallied in the first half and then fell back.

Stocks

Hero MotoCorp recorded a standalone profit of Rs 824.72 crore, rising 32% YoY.

LIC reported huge profits of Rs 9,543.7 crore, due to a one-time event. Net premium remained flat.

Apollo Tyres reported consolidated profit at Rs 396.9 crore, up by 124% YoY as raw material costs fell.

Mazagon Dock Shipbuilders saw a 40% YoY growth in consolidated profit at Rs 314.3 crore.

SAIL reported a consolidated profit of Rs 212.5 crore, down 73.6% YoY as revenues stayed flat.

HCL Technologies has signed a mega deal with Global 100 Corp with an estimated new total contract value of $2.1 billion over the term.

Major results today: IRFC, Muthoot Fin, Spicejet, ONGC, Nykaa, Apollo Hospital, Cochin Shipyard, HAL, Voltas

What Happened Yesterday?

NIFTY started the day flat at 19,605, slightly up. Consolidation till 10 AM was followed by quick up moves then a fall. Eventually touching the day low once again, NIFTY closed at 19,543, down by 89 points or 0.46% 

BANK NIFTY started the day at 44,797 with a gap-down. It tried to move near the 45k levels but saw a 500-point fall in 20 mins. The index mostly consolidated, with a bearish bias. BANK NIFTY closed the day at 44,541, down by 338 points or 0.76%. 

US markets closed flat after another day of high volatility. The European markets closed in green.

What to Expect Today?

The Asian markets are trading mixed.

The U.S. Futures are trading slightly in the green.

GIFT NIFTY is trading flat at 19,554.

All the factors combined indicate a flat to small gap-up opening in the market.

NIFTY has support at 19,566, 19,530 and 19,438. We can expect resistances at 19,617, 19,658, and 19,720. 

BANK NIFTY has support at 44,400, 44,277 and 44,000. Resistances are at 44,600, 44,800, 44,900 and 45,100.

NIFTY has the highest call OI build-up at 19,600. The highest put OI build-up is at 19,500. PCR is at 0.83.

BANK NIFTY has the highest call OI build-up at 45,000. The highest put OI build-up is also at 44,500. PCR is at 0.79

Foreign Institutional Investors net-bought shares worth Rs 703 crores. Domestic Institutional Investors net-bought worth Rs 331 crores.

INDIA VIX is at 11.14.

U.S. markets closed much lower from the day-high, but still in the green. Inflation data came out better than expected but is still not under control.

NIFTY is consolidating between the ranges of 19,650 and 19,300 for the last week. Although there is huge intraday volatility, only these levels breaking will indicate a larger move.

Both NIFTY and BANK NIFTY option sellers have started making aggressive positions on the call side. If this is seen repeating today, it might set an overall bearish theme for next week’s trade.

On the other hand, FIIs have returned to the cash market buying multiple days in a row. Their involvement might take the market up.

For a larger picture of the week, do keep in mind 19,300 and 19,650.

So after a crazy week, let us hope for a calm and peaceful expiry on 17th August.

Follow along with Smart Money (NIFTY) and Piggy Bank (BANK NIFTY) trades. We will be entering new trades today!

Make sure that you tune in to The Stock Market Show at 7 PM on our YouTube channel. All the best for the day!

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Market News Top 10 News

Apollo Tyres Net Profit Jumps 277% YoY to Rs 427Cr in Q4 – Top Indian Market Updates

Here are some of the major updates that could move the markets tomorrow:

Apollo Tyres Q4 Results: Net profit jumps 277% YoY to Rs 427 crore

Apollo Tyres reported a 277% YoY jump in consolidated net profit to Rs 427 crore for Q4 FY23. Its operating revenue rose 12% YoY to Rs 6,247 crore during the same quarter. The company’s board has recommended a final dividend of Rs 4 and a special dividend of Rs 0.5 per equity share on the occasion of the company’s  50th annual general meeting.

Read more here.

Adani Ports to prepay $130 million debt

Adani Ports & Special Economic Zone (APSEZ) will prepay $130 million of debt to regain investor confidence. The company had floated a tender to buy back as much as USD 130 million of its July 2024 bonds and similar amounts in each of the next four. APSEZ has received an aggregate principal amount of $412.7 million.

Read more here.

Nazara Tech Q4 Results: Net profit rises 18% YoY to Rs 2.6 crore

Nazara Tech reported an 18% YoY rise in consolidated net profit to Rs 2.6 crore for Q4 FY23. Its operating revenue increased 65.2% YoY to Rs 289 crore during the quarter. The total expenses for the quarter rose to Rs 281 crore from Rs 174 crore a year ago. In FY23, gaming made for 37% of Nazara Tech’s total revenue, while 49% came from eSports, and the rest from AdTech.

Read more here.

Dalmia Cement signs MoU to invest Rs 4,600 crore in Assam

Dalmia Cement Bharat has signed a Memorandum of Understanding (MoU) with the Assam government to invest about Rs 4,600 crore and create 2500 jobs in the state. The company aims to promote industrial activity and support the overall development of the region, with the government’s assistance. 

Read more here.

India Bulls Real Estate merger with Nam Estates and Embassy One withheld by NCLT

The merger of Nam Estates Private Limited and Embassy One into India Bulls Real Estate has been withheld by the Chandigarh Bench of the National Company Law Tribunal (NCLT) despite already being sanctioned by the NCLT Bengaluru Bench. The Chandigarh Bench raised concerns based on objections cited by the Income Tax department to the merger.

Read more here.

Raymond Q4 Results: Net profit falls 26% YoY to Rs 196.5 crore

Raymond Ltd reported a 26% YoY fall in consolidated net profit to Rs 196.5 crore for Q4 FY23. Its operating revenue rose 9.8% YoY to Rs 2,150 crore during the same quarter. The total income during the quarter was up 7.89% to Rs 2,192 crore. Total expenses of the company stood at Rs 1,939.27 crore, up 17.34% YoY.

Read more here.

Venus Remedies gets marketing approval for cancer drugs in Philippines, Iraq

Venus Remedies has obtained marketing authorization for two additional cancer drugs, Bleomycin and Gemcitabine, from the Philippines and Iraq, respectively. Bleomycin is used to treat various types of cancer, while Gemcitabine is used to treat a type of lung cancer. The company has secured marketing approval for 37 products in the Philippines.

Read more here.

Anupam Rasayan renews long-term contract worth Rs 436 crore

Anupam Rasayan India Ltd has renewed a long-term contract with a German multinational firm worth around Rs 436 crore for the supply of patented life science specialty chemicals exclusively for the next three years. The renewal is in accordance with the automatic clause agreed upon by the parties in the long-term agreement signed three years ago.

Read more here.

Castrol Q4 Results: Net profit falls 11.3% YoY to Rs 202 crore

Castrol reported an 11.3% YoY decline in net profit to Rs 202.5 crore for Q4 FY23. Its operating revenue rose 4.7% YoY to Rs 1,293 crore during the quarter. EBITDA stood at Rs 295 crore, down 7% from Q4 FY22.  According to the company, the fall in profit is due to a rise in input costs.

Read more here.

Kansai Nerolac declares 1:2 bonus issue

Kansai Nerolac Paints Ltd. announced a bonus share issue of 1:2. This means that two shares will be issued for every equity share held by eligible shareholders as of the record date. The record date has not yet been determined. The board of Kansai Nerolac also recommended a dividend of Rs 2.70 per share for the financial year 2023. 

Read more here.

Three Adani firms lose endorsement of UN-backed climate group

Adani Green, Adani Transmission Ltd. and Adani Ports & Special Economic Zone Ltd. were removed from the list of “companies taking action” published by the Science Based Targets initiative (SBTi) in late April 2023. The UN-backed group helps companies establish concrete plans to reduce emissions consistent with the Paris Agreement’s target of limiting global warming. The SBTi found that the companies are not in conformity with the initiative’s standards and policy requirements.

Read more here.

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Market News Top 10 News

Titan’s Net Profit Falls 4% in Q3 – Top Indian Market Updates

Here are some of the major updates that could move the markets tomorrow:

Titan Q3 Results: Net profit falls 4% YoY to ₹951 crore

Titan Ltd reported a 4% YoY decline in net profit to ₹951 crore for the quarter ended December (Q3 FY23). Its revenue from operations rose 11% YoY to ₹10,444 crore during the same period. ​​The company’s jewellery business registered a total income of ₹9,518 crore in Q3, up 11% YoY. Titan’s eye care segment registered a 12% YoY growth in total income to ₹174 crore in Q3.

Read more here.

Mahindra Electric Mobility merges with parent Mahindra & Mahindra

Mahindra Electric Mobility Ltd (MEML) has officially merged into the parent company, Mahindra and Mahindra Ltd (M&M). The merger received final approval from the National Company Law Tribunal (NCLT) on January 13. With this merger, M&M aims to synergise electric vehicle (EV) development, manufacturing, and sales operations.

Read more here.

HDFC Q3 Results: Net profit rises 13% YoY to ₹3,691 crore

HDFC Ltd reported a 13% YoY increase in net profit to ₹3,691 crore for the quarter ended December (Q3 FY23). The mortgage lender’s revenue from operations grew 29% YoY to ₹15,230 crore during the same period. Income from interest stood at ₹14,457 crore in Q3, up 30% YoY. Dividend income more than doubled to ₹482 crore in Q3.

Read more here.

Reliance Retail begins accepting govt’s digital rupee for sales

Reliance Retail has started accepting retail payments via the Indian government’s Digital Rupee across its stores in the country. The company launched the first in-store acceptance of the RBI-created and blockchain-based Central Bank Digital Currency (CBDC) at its gourmet food store Freshpik. The CBDC is the digital version of fiat money that will co-exist will hard cash.

Read more here.

Dabur India Q3 Results: Net profit falls 5% YoY to ₹476 crore

Dabur India Ltd reported a 5.4% YoY decline in consolidated net profit to ₹476 crore for the quarter ended December (Q3 FY23). Its revenue from operations rose 3.4% YoY to ₹3,043.2 crore during the same period. Dabur’s homecare business registered a strong 18% YoY growth in Q3. The company said it is facing many adverse conditions in the rural markets due to inflationary pressures.   

Read more here.

Bharti Airtel completes merger of Nettle Infrastructure, Telesonic Networks

Bharti Airtel Ltd has completed the merger of its wholly-owned subsidiaries Nettle Infrastructure Investments Ltd and Telesonic Networks Ltd. Around 30,000 non-convertible debentures (NCDs) of the face value of ₹10,00,000 each (aggregating to ₹3,000 crore) and 17,500 listed commercial papers of 5,00,000 each (aggregating to ₹875 crore) issued by Telesonic will also be transferred to Bharti Airtel.

Read more here.

SBI gave loans worth ₹21,000 crore to Adani Group firms: Report

According to a Bloomberg report, India’s largest public lender State Bank of India (SBI_ has given loans of as much as ₹21,000 crore to Adani Group firms. SBI’s exposure includes $200 million from Adani’s overseas units. Reuters reported that the Reserve Bank of India had asked public sector banks for details of their exposure to the Adani Group of companies. Adani Group firms’ stocks lost a combined market capitalisation of over ₹8.2 lakh crore in the past week due to a scathing report by US-based short seller firm Hindenburg Research. 

Read more here.

Apollo Tyres Q3 Results: Net profit rises 30% YoY to ₹292 crore

Apollo Tyres Ltd reported a 30% YoY increase in consolidated net profit to ₹292 crore for the quarter ended December (Q3 FY23). Its revenue from operations rose 13% YoY to ₹6,423 crore during the same period. Input costs eased to some extent in the past quarter, which helped the tyre manufacturer improve margins.

Read more here.

Tata Consumer Q3 Results: Net profit rises 26% YoY to ₹364 crore

Tata Consumer Products reported a 26% YoY increase in consolidated net profit to ₹364.43 crore for the quarter ended December (Q3 FY23). Its revenue from operations rose 8.3% YoY to ₹3,474.5 crore during the same period. The FMCG company’s EBITDA stood at ₹458 crore, down 2% YoY. The coffee business recorded revenue growth of 34% YoY, while its India foods business registered a 29% revenue growth in Q3.

Read more here.

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Market News Top 10 News

CPI Inflation Falls to 6.71% in July – Top Indian Market Updates

Here are some of the major updates that could move the markets on Monday:

CPI inflation falls to 5-month low of 6.71% in July

India’s retail inflation (measured by the Consumer Price Index) fell to a five-month low of 6.71% in July. CPI stood at 7.01% in June. Inflation in the food basket also showed a month-on-month fall from 7.75% in June to 6.75% in July. Meanwhile, inflation in the fuel and light segment rose 11.76%.

India’s factory output, measured in terms of the Index of Industrial Production (IIP) witnessed a growth of 12.3% YoY to 137.9 during June.

Read more here.

LIC Q1 Results: Net profit jumps multifold to Rs 683 crore

Life Insurance Corporation of India (LIC) reported a multifold increase in net profit to Rs 682.89 crore for the quarter ended June (Q1 FY23). The life insurer had reported a net profit of Rs 2.94 crore in the corresponding quarter last year (Q1 FY22). Its total premium income rose 20.35% YoY to Rs 98,351.76 crore in Q1 FY23. LIC sold 36.81 lakh policies in the individual segment, registering a growth of 59.56%.

Read more here.

Kolte-Patil Developers eyes Rs 1,400 crore sales from housing project in Pune

Kolte-Patil Developers Ltd (KPDL) has acquired 25 acres of land in Pune to develop a housing project with an estimated sales revenue of Rs 1,400 crore. The realty firm has acquired Sampada Realities Pvt Ltd, which owns this land parcel. This acquisition is in line with KPDL’s business development target of Rs 7,000 crore for this year.

Read more here.

Hero MotoCorp Q1 Results: Net profit rises 71% YoY to Rs 625 crore

Hero MotoCorp Ltd reported a 71% YoY increase in consolidated net profit to Rs 625 crore for the quarter ended June (Q1 FY23). Its revenue from operations rose 53% YoY to Rs 8,393 crore during the same period. EBITDA stood at Rs 941 crore in Q1, up 82.7% YoY. The two-wheeler manufacturer registered a 36% YoY increase in sales to 13.9 lakh units. 

Read more here.

Passenger vehicle dispatches rise 11% in July: SIAM

Passenger vehicle dispatches to dealers rose 11% to 2.64 lakh units in July 2022. An improvement in semiconductor supplies helped automakers ramp up production ahead of the festive season. Dispatches of passenger cars increased by 10% YoY to 1,43,522 units in July. Wholesales of motorcycles grew 4% YoY to Rs 8,70,028 units last month. The data was released by the Society of Indian Automobile Manufactures (SIAM).

Read more here.

Divi’s Labs Q1 Results: Net profit rises 26% YoY to Rs 702 crore

Divi’s Laboratories Ltd reported a 26% YoY increase in consolidated net profit to Rs 702 crore for the quarter ended June (Q4 FY22). Its revenue from operations rose 15% YoY to Rs 2,254 crore during the same period. However, EBITDA fell 0.6% YoY to Rs 846.7 crore. Total expenses stood at Rs 1,491.61 crore in Q1, up 26.18% YoY.

Read more here.

Tata Elxsi brings new age solutions for driverless cars, connected vehicles: CMO

Tech service provider Tata Elxsi is helping customers reimagine products and services in the three key verticals of transportation, media & telecom, and healthcare, said Nitin Pai, Chief Marketing Officer. It has delivered platforms like AUTONOMAI for driverless cars, TETHER for connected cars, and TE Play for OTT services. Tata Motors has adopted TETHER Auto to power connectivity and data-led services for nearly 500,000 on-road vehicles.

Read more here.

ONGC Q1 Results: Net profit jumps 3.5x to Rs 15,206 crore

ONGC Ltd reported a 251% YoY jump in net profit to Rs 15,205.85 crore for the quarter ended June (Q4 FY22). Its revenue from operations rose 84% YoY to Rs 42,320.72 crore during the same period. The company’s operating margin improved to 49.7% in Q1 FY23, compared to 32.01% in Q1 FY22.

Read more here.

NCLT approves demerger of pharma business from Piramal Enterprises

The National Company Law Tribunal (NCLT) has approved the demerger of Piramal Enterprises Ltd’s (PEL) pharma business and the simplification of the company’s corporate structure. The order paves the way for the creation of two separate listed entities— PEL and Piramal Pharma Ltd (PPL). PEL said the demerged entities will have greater focus and ability to pursue accelerated growth.

Read more here.

Apollo Tyres Q1 Results: Net profit rises 49% YoY to Rs 191 crore

Apollo Tyres Ltd reported a 49.21% YoY jump in net profit to Rs 190.68 crore for the quarter ended June (Q4 FY22). Its revenue from operations rose 29.6% YoY to Rs 5,942 crore during the same period. Both Indian and European operations performed well, with their revenues from operations increasing 38% and 14%, respectively.

Read more here.

Grasim Q1 Results: Net profit rises 13% YoY to Rs 2,759 crore

Grasim Industries Ltd reported a 12.7% YoY increase in consolidated net profit to Rs 2,758.75 crore for the quarter ended June (Q4 FY22). Its revenue from operations rose 40.7% YoY to Rs 28,041.54 crore during the same period. Grasim’s viscose (fibre and yarn) business generated a revenue of Rs 4,299.88 crore in Q1 FY23, compared to Rs 2,102.76 crore in Q1 FY22.

Read more here.

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Market News Top 10 News

Retail Inflation Spikes to 7.79% in April – Top Indian Market News

Retail inflation spikes to 7.79% in April

India’s retail inflation, measured by the Consumer Price Index (CPI), surged to an eight-year high of 7.79% in April. Retail inflation stood at 6.95% in March. This is the fourth consecutive month that CPI data has breached the Reserve Bank of India’s (RBI) upper margin of 6%. Inflation in the food basket spiked in April to 8.38%.

India’s factory output, measured in terms of the Index of Industrial Production (IIP), witnessed a growth of 1.9% in March. IIP had surged 24.2% in March 2021 (due to a low base).

Read more here.

Tata Motors Q4 Results: Net loss at Rs 1,033 crore

Tata Motors Ltd reported a consolidated net loss of Rs 1,032.84 crore for the quarter ended March (Q4 FY22). The automaker has posted a net loss of Rs 1,516.14 crore in Q3 FY22 and a loss of Rs 7,605.4 crore in Q4 FY21. Its revenue from operations fell 11.5% YoY to Rs 78,439 crore in Q4 FY22. Jaguar Land Rover (JLR) posted revenue of £4.8 billion in the March quarter, up 1% QoQ.

Read more here.

IndiGo, Air France-KLM implement codeshare agreement

Air France-KLM and IndiGo have implemented a codeshare agreement, allowing each airline to sell seats on other’s flights. Under this pact, Air France and KLM will offer their passengers access to 30 new Indian cities. IndiGo will be able to sell seats on the European airline group’s flights on more than 300 routes. From their hubs in Paris and Amsterdam, Air France-KLM will operate flights to Delhi, Mumbai, Chennai, and Bengaluru.

Read more here.

L&T Q4 Results: Net profit rises 10% YoY to Rs 3,620 crore

Larsen & Toubro Ltd reported a 10% YoY increase in net profit to Rs 3,621 crore for the quarter ended March (Q4 FY22). Its revenue from operations grew 10% YoY to Rs 52,851 crore during the same period. The company bagged orders worth Rs 73,941 crore in Q4, registering a growth of 46% YoY. L&T’s board has declared a final dividend of Rs 1.75 per share.

Read more here.

BIAL partners with Kotak Mahindra Bank, Phi Commerce to facilitate one-stop payment solution

Bangalore International Airport Ltd (BIAL) has partnered with Kotak Mahindra Bank and Phi Commerce to facilitate a one-stop omnichannel payment solution at Kempegowda International Airport. The solution will enable a secure, scalable, and unified payment experience. It will power business-to-business (B2B) and business-to-consumer (B2C) payments across online and offline channels.

Read more here.

RBL Q4 Results: Net profit jumps 162% YoY to Rs 197 crore

RBL Bank Ltd reported a 162.7% YoY jump in net profit to Rs 197.83 crore for the quarter ended March (Q4 FY22). Net interest income (NII) rose 24.9% YoY to Rs 1,131.4 crore during the same period. The gross non-performing assets (GNPA) ratio stood at 4.4% in Q4 FY22, compared to 4.84% in Q3 FY22. Provisions fell 36% YoY to Rs 400.67 crore in Q4 FY22.

Read more here.

Dalmia Cement to invest Rs 2,600 crore in Tamil Nadu

Dalmia Cement (Bharat) Ltd has drawn up a Rs 2,600-crore investment plan spread over the next four years to take up expansion of its existing facilities and also set up new manufacturing units in Tamil Nadu. The company will set up two greenfield grinding units with a capacity of producing two million tonnes per annum each.

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Ujjivan SFB Q4 Results: Net profit falls 7% YoY to Rs 126.5 crore

Ujjivan Small Finance Bank reported a 7% YoY decline in net profit to Rs 126.5 crore for the quarter ended March (Q4 FY22). Its total income rose 25% YoY to Rs 920 crore during the same period. The gross non-performing assets (GNPA) ratio stood at 7.34% in Q4 FY22, compared to 7.1% in Q4 FY21.

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Reliance Jio adds 12.6 lakh subscribers in March; Bharti Airtel adds 22.5 lakh: TRAI

Reliance Jio added 12.6 lakh subscribers in March 2022. Bharti Airtel gained 22.5 lakh subscribers in March, while Vodafone Idea (Vi) lost 28.1 lakh subscribers. Jio continued to have the largest market share at 35.37%. Bharti Airtel and Vodafone Idea’s market shares stood at 31.55% and 22.83%, respectively, in March. The data was released by the Telecom Regulatory Authority of India (TRAI).

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Apollo Tyres Q4 Results: Net profit falls 61% YoY to Rs 113 crore

Apollo Tyres Ltd reported a 61% YoY decline in consolidated net profit to Rs 113 crore for the quarter ended March (Q4 FY22). Its revenue from operations rose 11% YoY to Rs 5,578 crore during the same period. EBITDA stood at Rs 626 crore in Q4, down 23% YoY. The tyre manufacturer’s board has declared a dividend of Rs 3.25 per share.

Kalpataru Power Transmission, subsidiaries secure orders worth Rs 4,474 crore

Kalpataru Power Transmission Ltd (KPTL) and its subsidiaries have bagged new orders worth Rs 4,474 crore. KPTL received orders from India and international markets in the power transmission business of Rs 1,957 crore. The company secured oil and gas pipeline projects in India and the Middle East worth Rs 169 crore. Its subsidiary, JMC Projects (India) Ltd, bagged water supply projects of Rs 2,193 crore in India.

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Market News Top 10 News

Axis Bank Acquires Citi India’s Retail Assets for $1.6B – Top Indian Market News

Axis Bank acquires Citi India’s retail assets for $1.6 billion

Axis Bank has acquired Citi India’s retail assets, valuing the business at nearly $2 billion (~Rs 15,164 crore). The private sector bank will pay a cash consideration of $1.6 billion to Citi for the acquisition of the consumer business. The transaction comprises the sale of the consumer banking businesses of Citibank India, including credit cards, retail banking, wealth management, and consumer loans. It also includes the sale of the consumer business of Citi’s non-banking financial company (NBFC), Citicorp Finance (India) Ltd.

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Reliance Jio lost 93 lakh subscribers in Jan 2022; Airtel gains 7.14 lakh subscribers

As per the latest subscriber data released by the Telecom Regulatory Authority of India (TRAI), Reliance Jio lost 93.32 lakh subscribers in January 2022. Vodafone Idea lost 3.7 lakh subscribers during the same month. Meanwhile, Bharti Airtel gained 7.14 lakh subscribers in Jan. Reliance Jio held the largest market share at 35.49%, followed by Bharti Airtel (31.13%) and Vodafone Idea (23.15%).

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Sundaram Fasteners wins incentive approval under PLI scheme

Sundaram Fasteners Ltd (SFL) has qualified for incentives from the Ministry of Heavy Industries for its proposed investments in making powertrain sub-assemblies for electric vehicles (EVs) and internal combustion engine (ICE) vehicles. Companies selected for incentives under this scheme will get 8-11% of the determined sales value. SFL will set aside Rs 350 crore to make advanced automotive tech components for EVs and ICE vehicles.

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Sun Pharma signs licensing pact with Lundbeck to launch anti-depressant pill

Sun Pharmaceutical Industries Ltd has entered into an exclusive patent licensing agreement with Danish drugmaker Lundbeck to market and distribute its version of antidepressant medication Vortioxetine in India. The drug will be marketed under the brand name Vortidiftm. The product is approved in over 80 countries, including the US, EU, Canada, and Australia.

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CCI raids offices of CEAT, Apollo Tyres: Report

As per a Reuters report, the Competition Commission of India (CCI) raided offices of tyre companies, including Germany’s Continental AG and India’s Apollo Tyres and CEAT, in a case of suspected competition law violations. The report said the case was related to an antitrust investigation into the use of unfair trade practices and rigging of bids while supplying tyres for public transport vehicles in Haryana.

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BHEL secures order for compressor package from Iraq

Bharat Heavy Electricals Ltd (BHEL) has won an order for a compressor package from Iraq. The order was placed by Northern Refineries Company (NRC), a company owned by the Ministry of Oil, Iraq. It includes the design, engineering, manufacturing, and supply of an electric motor-driven recycle gas centrifugal compressor.

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Godrej Properties to develop a 9-acre project in Pune

Godrej Properties Ltd (GPL) has acquired a 9-acre land parcel in the residential micro-market of Pimpri-​Chinchwad in Pune. The development will primarily be for a group housing project. The project will have a developable potential of around 1.7 million sq. ft. of saleable area. Based on current business assumptions, it has an estimated revenue potential of ~Rs 1,400 crore.

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Tata Consumer Products to merge Tata Coffee business with itself

Tata Consumer Products Ltd (TCPL) has announced the merger of all businesses of Tata Coffee Ltd (TCL) with itself. This is part of a reorganization plan in line with TCPL’s strategic priority of unlocking synergies and efficiencies. Initially, the plantation business of TCL will be demerged into TCPL’s wholly-owned arm TCPL Beverages & Foods Ltd (TBFL). Then, the remaining business of TCL (extraction and branded coffee business) will be merged with TCPL.

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Dilip Buildcon emerges lowest bidder for road project worth Rs 1,589 crore

The National Highways Authority of India (NHAI) has declared Dilip Buildcon Ltd as the lowest (L-1) bidder for a road project in Karnataka. The scope of the project includes the development of a six-lane access controlled greenfield highway from Maradgi S Andola to Baswantpur section of NH-150C. The bid project cost for the 65.50 km long project is Rs 1,589 crore. 

In other news, G R Infroprojects Ltd has received a Letter of Award (LoA) from NHAI for five new road projects worth ~Rs 5770 crore.

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HDFC Bank, Shoppers Stop launch co-branded credit cards

HDFC Bank and Shoppers Stop have announced the launch of a new range of co-branded credit cards. The credit cards will be available for over 80 lakh ‘First Citizen’ customers of Shoppers Stop along with HDFC Bank customers. HDFC Bank expects co-branded credit cards to account for 25-30% of total spends in the next 2-3 years. 

Read more here.

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Market News Top 10 News

IDFC First Bank Reports 50% YoY Rise in Net Profit in Q2 – Top Indian Market News

IDFC First Bank Q2 Results: Net profit rises 50% YoY to Rs 151 crore

IDFC First Bank reported a 49.6% YoY increase in net profit to Rs 151.7 crore for the quarter ended September (Q2 FY22). Its net interest income (NII) rose 27.4% YoY to Rs 2,722 crore during the same period. [NII is the difference between the interest income a bank receives on loans and the interest it pays to depositors]. The gross non-performing assets ratio (GNPA) stood at 4.27% in Q2, compared to 4.61% in the previous quarter. IDFC First Bank’s total deposits grew 20.8% YoY to Rs 83,793 crore in Q2 FY22.

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Maruti Suzuki expects adverse impact on production in November

Maruti Suzuki India said it expects an adverse impact on production at two of its plants in Haryana and at Suzuki’s Gujarat plant in November on account of supply constraints of electronic components due to the global semiconductor shortage. As per current estimates, the total vehicle production volume across both locations in Haryana next month could be around 85% of the normal roll-out.

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IOC Q2 Results: Net profit rises 2% YoY to Rs 6,360 crore

Indian Oil Corporation (IOC) reported a 2.1% YoY increase in net profit to Rs 6360.05 crore for the quarter ended September (Q2 FY22). Net profit increased 7% compared to the previous quarter. Its revenue from operations rose 46% YoY to Rs1.69 lakh crore during the same period. The company sold nearly 19 million tonnes (MT) of fuel in Q2, compared to 17.7 MT in the corresponding period last year. IOC’s board has declared an interim dividend of Rs 5 per share.

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SEBI warns Vedanta over non-compliance with disclosure norms

The Securities and Exchange Board of India (SEBI) has warned Vedanta Ltd and Hindustan Zinc Ltd (HZL) over non-compliance with certain disclosure norms, saying it will take action if such actions were repeated in the future. The market regulator flagged Vedanta executing Rs 1,407 crore of related party transactions with associate company HZL without prior approval of the audit committee. Moreover, HZL failed to inform shareholders of the deferment of a meeting relating to a price-sensitive dividend payment.

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Oberoi Realty Q2 Results: Net profit rises 94% YoY to Rs 267 crore

Oberoi Realty Ltd reported a 93.5% YoY increase in consolidated net profit to Rs 266.59 crore for the quarter ended September (Q2 FY22). Net profit increased 95% compared to the previous quarter. Its revenue from operations jumped 138.64% YoY to Rs 754.25 crore during the same period. The developer recorded bookings for 4.43 lakh sq. ft. space, taking its total bookings for the half-year ended September 2021 to 5.35 lakh sq. ft.

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Rossari Biotech Q2 Results: Net profit rises 27% YoY to Rs 26 crore

Rossari Biotech Ltd reported a 26.7% YoY increase in consolidated net profit to Rs 26.23 crore for the quarter ended September (Q2 FY22). Net profit increased 7% compared to the previous quarter. Its revenue from operations jumped 124% YoY to Rs 384.52 crore during the same period. EBITDA stood at Rs 44.4 crore, a growth of 22% YoY. Rossari Biotech is a leading chemical manufacturer based in Mumbai.

LT Foods Q2 Results: Net profit rises 4% YoY to Rs 80 crore

LT Foods reported a 4.35% YoY increase in consolidated net profit to Rs 80.83 crore for the quarter ended September (Q2 FY22). Its total income rose 6.9% YoY to Rs 1,322.53 crore during the same period. Total expenses stood at Rs 1,212 crore in Q2, up 7.5% YoY. LT Foods manufacturers and markets rice under the Daawat, Royal, Heritage, and Devaaya brands in India.

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CDSL Q2 Results: Net profit rises 76% YoY to Rs 85.9 crore

Central Depository Services (India) Ltd reported a 76% YoY increase in consolidated net profit to Rs 85.92 crore for the quarter ended September (Q2 FY22). Net profit increased 35% compared to the previous quarter. Its revenue from operations rose 64% YoY to Rs 145.97 crore during the same period. EBITDA stood at Rs 99 crore in Q2, a growth of 82% YoY

CHOLAFIN Q2 Results: Net profit rises 40% YoY to Rs 606 crore

Cholamandalam Investment & Finance Company reported a 40.4% YoY increase in net profit to Rs 606.54 crore for the quarter ended Sept (Q2 FY22). Its total income rose 1.2% YoY to Rs 2,470.69 crore during the same period. The company’s assets under management (AUM) stood at Rs 75,063 crore in Q2, registering a growth of 0.8% YoY.

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Apollo Tyres Q2 Results: Net profit at Rs 174 crore

Apollo Tyres Ltd reported a consolidated net profit of Rs 174 crore for the quarter ended September (Q2 FY22). The company had posted a net loss of Rs 246 crore in the corresponding quarter last year. Its revenue from operations rose 18% YoY to Rs 5,077 crore in Q2 FY22. Apollo Tyres stated that some of the recent additions to its product offering are helping them extend its leadership in the commercial vehicle and passenger vehicle space in India.

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Market News Top 10 News

Retail Inflation Eases to 4.29% in April – Top Indian Market News

Retail inflation eases to 4.29% in April; IIP grows 22.4% in March 

Retail inflation in India, measured by the Consumer Price Index (CPI), eased to 4.29% in April 2021. CPI stood at 5.52% in March. This is the fifth consecutive month that retail inflation has come within the Reserve Bank of India’s (RBI) upper margin of 6%. The Consumer Food Price Index (CFPI) eased to 2.02% in April, compared with 4.87% in March. Vegetable prices fell 14.18% in April, while prices of cereals declined by 2.96%.

India’s factory output, measured by the Index of Industrial Production (IIP), witnessed a growth of 22.4% YoY to 143.4 in March 2021. The growth in IIP is mainly on account of the growth in the manufacturing, electricity, and mining sectors. The manufacturing sector posted a growth of 25.8% YoY to 140.4 in March. The electricity and mining sectors grew 22.5% and 6.1%, respectively, during the same month. The index had fallen by 3.4% in February 2021.

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Tata Power Q4 Results: Net profit falls to Rs 481 crore

Tata Power Company Ltd reported a marginal decline in net profit to Rs 481.21 crore for the quarter ended March (Q4 FY21). It had posted a net profit of Rs 474.70 crore in the corresponding period last year (Q4 FY20). Its total income rose to Rs 10,222.48 crore in Q4 FY21, compared with Rs 6,793.95 crore in Q4 FY20. Tata Power’s board has recommended a dividend of Rs 1.55 per share.

The company’s board has also approved fund-raising up to Rs 5,500 crore through the issuance of non-convertible debentures (NCDs) on a private placement basis. The funds raised from this issue will be utilised for refinancing of existing loans.

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Cabinet approves PLI scheme worth Rs 18,100 crore for battery storage manufacturing

The Union Cabinet has approved a Production Linked Incentive (PLI) scheme for promoting battery storage at an estimated outlay of Rs 18,100 crore. With the objective to promote the ‘Make in India’ initiative, the National Programme on Advanced Chemistry Cell (ACC) Battery Storage is expected to attract investments of up to Rs 45,000 crore. The proposal aims to achieve a manufacturing capacity of 50 gigawatt-hour (GWh) of ACC and 5 GWh of niche ACC. Information and Broadcasting Minister Prakash Javadekar said this PLI scheme will promote green growth and use local products like copper and bauxite to a large extent.

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UPL Q4 Results: Net profit rises 34% QoQ to Rs 1,063 crore

UPL Limited reported a 34% quarter-on-quarter (QoQ) increase in net profit to Rs 1,063 crore for the quarter ended March (Q4). Net profit has jumped 72% when compared to Q4 FY20. The company’s revenue from operations rose 40% QoQ (or 15% YoY) to Rs 12,796 crore during the same period. Its agrochemical and other agricultural-related businesses saw top-line growth of 15.7% YoY to Rs 12,331 core. UPL’s board has recommended a dividend of Rs 10 per share.

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Cadila to sell India focused animal health business for Rs 2,921 crore

Zydus Animal Health and Investments Ltd (ZAHL), a wholly-owned subsidiary of Cadila Healthcare, has entered into an agreement with a consortium of financial investors to sell its animal healthcare business Zydus AH for Rs 2,921 crore. The consortium includes Rakesh Jhunjunwala’s RARE Enterprises, Multiples Alternate Asset Management, and Canada Pension Plan Investment Board. Zydus AH is one of the fastest-growing animal health businesses in India. It claims a leadership position across a spectrum of therapeutic and nutritional products for livestock and poultry animal segments.

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JSPL Q4 Results: Net profit jumps multi-fold to Rs 1,900 crore

Jindal Steel and Power Ltd (JSPL) reported a consolidated net profit of Rs 1,900.51 crore for the quarter ended March (Q4 FY21). This includes an exceptional item of Rs 969 crore. It had posted a net profit of Rs 82.13 crore in the corresponding period last year (Q4 FY20). JSPL’s total income rose to Rs 11,903.59 crore in Q4, compared with Rs 6,819.73 crore a year ago. Total expenses rose to Rs 8,082.92 crore in the March 2021 quarter, compared to Rs 6,603.65 crore in Q4 FY20.

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Passenger vehicle wholesales fall 10% in April: SIAM

According to data released by the Society of Indian Automobile Manufacturers (SIAM), total passenger vehicle wholesales in India declined by 10% to 2.61 lakh units in April 2021. This is compared with passenger vehicle sales of 2.90 lakh units in March 2021. Motorcycle sales declined by 33% to 6.67 lakh units in April, compared to 9.93 lakh units in March. Three-wheeler sales fell by 57% to 12.70 lakh units during the same month.

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Voltas Q4 Results: Net profit rises 49% YoY to Rs 239 crore

Voltas Limited reported a 49% YoY increase in consolidated net profit to Rs 239 crore for the quarter ended March (Q4). Its total sales revenue rose 25% YoY to Rs 2,683.24 crore during the same period. The company’s revenue from unitary products grew 20% YoY to Rs 1,437 crore. Its colling products business posted overall volume growth of 18% YoY in Q4. The board of Voltas Ltd has recommended a dividend of Rs 5 per share.

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Asian Paints Q4 Results: Net profit rises 84.5% YoY to Rs 852 crore

Asian Paints Limited reported an 84.5% YoY increase in consolidated net profit to Rs 852.13 crore for the quarter ended March (Q4). On a quarterly basis, net profit has fallen by 31%. Its revenue from operations rose 43.5% YoY to Rs 6,651.4 crore during the same period. The company’s domestic decorative business posted volume growth of 48% YoY, led by strong growth in the premium and luxury product range. The board of Asian Paints has recommended a final dividend of Rs 14.5 per share.

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Apollo Tyres Q4 Results: Net profit falls 35% QoQ to Rs 287 crore

Apollo Tyres Limited reported a 35.27% QoQ fall in net profit to Rs 287.26 crore for the quarter ended March (Q4 FY21). Net profit has jumped 269% when compared to the corresponding period last year. Its total sales revenues fell 3.25% QoQ (up 40% YoY) to Rs 5,025.7 crore during the same period. Apollo Tyres’ sales in the Middle East and African regions rose 49% YoY to Rs 3,688 crore. The company’s board has recommended a final dividend of Rs 3.5 per share.

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Editorial

Why are Tyre Stocks Rallying?

Over the past few days, we have been witnessing a significant rally in the shares of major tyre companies in India. The share price of JK Tyre & Industries rose more than 23% in a week, while that of MRF touched an all-time high of Rs 96,400! CEAT shares jumped to the highest level in more than two years to Rs 1,535. Let us take a closer look at certain factors that have led to a surge in these stocks.

Anticipation of Robust Q3 Results

With the removal of Covid-19 related lockdowns in our country, the demand for automobiles increased rapidly. People preferred to own a two-wheeler or car for commuting, rather than using public transport. Automobile manufacturers started ramping up production during the festive season as well. There had been an impressive rise in the number of vehicle bookings during the October-December period. Thus, major tyre manufacturers started to receive an influx of orders from these automakers. 

It has been reported that tyres required for two-wheelers and farming equipment saw a strong demand recovery in Q3. Major players in this segment had increased their manufacturing capacity to meet the growing demand. These companies had also expanded their distribution networks across the country. The replacement and after-market segments showed a positive revival and growth. With these factors in mind, it was estimated that tyre manufacturers would post a healthy increase in their profits and revenues in Q3. 

Financial Performance in Q3

CEAT Ltd reported a 150% (year-on-year) YoY increase in consolidated net profit to Rs 132 crore for the quarter ended December (Q3). The tyre manufacturer’s revenue surged 26% YoY to Rs 2,221 crore during the same period. The company’s strong performance in Q3 was backed by an increase in overall vehicle production. Sales in the after-market segment had also made a strong comeback.

JK Tyre & Industries Ltd reported a multi-fold jump in consolidated net profit to Rs 230.46 crore. The company had posted a consolidated net profit of Rs 10.27 crore in the third quarter of FY20. Consolidated revenue from operations grew 21.7% YoY to Rs 2,769 crore in Q3 FY21. All nine plants of the company in India operated at close to 96% capacity utilisation. JK Tyre’s strong performance in Q3 was primarily driven by the increased demand for passenger, commercial vehicle, and farm tyres. 

The Q3 results of Apollo Tyres, MRF, and Balkrishna Industries are yet to be released. It has been reported that these particular companies are very likely to show impressive sales growth as well.

Government’s Ban on Import of Tyres

One of the major hurdles of the Indian tyre industry was the indiscriminate imports of tyres. China accounted for over 40% of Truck and Bus Radial (TBR) tyres and Passenger Car Radial (PCR) tyres shipments to India from overseas. In case of tractor tyres, Chinese import was three-fourths of the total imports.

In June 2020, the Indian Government imposed curbs on imports of new pneumatic tyres used in motor cars, busses, lorries, and motorcycles. These types of tyres were placed under the ‘restricted category’, which meant that an importer would now require a licence or permission from the Directorate General of Foreign Trade (DGFT) for imports. It has prevented countries such as China from dumping their excess output in our market. 

“The move has come as a sentiment booster for the industry that has been bearing the brunt of the slowdown in the auto sector and disruption caused by Covid-19 pandemic. Emboldened by the development, the tyre industry in India is looking at better than expected domestic production and increased exports from the country,” – K.M. Mammen, Chairman of the Automotive Tyre Manufacturers Association (ATMA).

These restrictions have proven to work in favour of domestic tyre manufacturers. Over the past few months, companies such as CEAT, MRF, and Apollo Tyres are receiving more orders from Indian automakers. For example, Royal Enfield has switched Italy-based Pirelli tyres with CEAT tyres for their Interceptor 650 range. Recently, French tyre major Michelin issued a circular to its Indian dealer partners confirming that it will not import and distribute passenger vehicle tyres in India. These international tyre companies are waiting for a further update on the import restrictions from the Indian Government.

The Way Ahead

Thus, the positive sentiments surrounding the tyre industry in India has led to a surge in stock prices of companies such as CEAT, Goodyear India, and MRF. Interestingly, Sachin Bansal (co-founder and former CEO of Flipkart) bought a 1.34% stake in JK Tyre, which reportedly led to a further rally in its stock over and above.

We could see a further uptrend in these shares, as certain tyre manufacturers are yet to report their Q3 results and because these stocks have broken multiyear highs just like what we saw with Tata Motors. In the coming weeks, let us look forward to seeing positive results from these companies.

The government supposedly brought in these restrictions to benefit domestic tyre manufacturers as they will get increased sales. But what did we see? As imported tyres started vanishing from the market, the domestic players immediately went out and increased their prices. So right now they are benefitting from increased margins (even though prices of rubber has gone up), along with the increasing sales from less competition. So in the long run who loses? Us, the customers. This is why restrictive trade policies never benefit consumers. At least stock market participants can make a bit of that money back.

Let us know in the comments down below if you were able to jump in on the rally!