Tech Mahindra, Adani Transmission, M&M Financial, Adani Ports, Nykaa, Grasim Industries, KSB stocks in focus Indian share market is likely to open on a muted note on Wednesday, hinted SGX Nifty. On the Singapore Exchange, Nifty futures were trading 29 pts or 0.16% down at 18226, signalling a flat start for domestic equities. In the previous session, The BSE Sensex climbed 375 points to 61,121, while the Nifty 50 rose 133 points to 18,145. “Going ahead, Indian markets are likely to continue with its positive momentum with bouts of volatility. Investors would now await the Federal Reserve meeting outcome and commentary that is due on Wednesday,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.Stocks in focus on 2 November, Wednesday Tech Mahindra: Tech Mahindra on Tuesday reported a 13.6% sequential rise in its net profit at Rs 1,285 crore in the September quarter. On a year-on-year basis, however, the company’s net profit declined 4% from Rs 1,339 crore in the same period last year due to cost inflation and supply side pressures in the last 12 months. The IT major may form a “moonlighting with boundaries” policy in the future, keeping in mind factors like labour laws of the various countries it operates in, client confidentiality, and impact on productivity, CEO and MD CP Gurnani said. Nykaa: Beauty products retailer Nykaa’s parent FSN E-Commerce on Tuesday posted a 344% on-year jump in its net profit for the quarter ended September to Rs 5.2 crore on the back of improved sales and profitability. The company’s revenue from operations grew 39% on year to Rs 1,230.8 crore on improved demand across the beauty and fashion categories on a low base. Nykaa’s profitability grew 171 basis points to 5% during the quarter on the back of improved gross margins, driven by own brands mix, reduced fulfilment costs and marketing efficiency. Adani Ports and Special Economic Zone: The company’s consolidated profit increased by 65.5% on-year to Rs 1,738 crore for the quarter ended September FY23, supported by top line, operating income and lower tax cost. Revenue surged 33% on-year to Rs 5,211 crore for the quarter. Cargo for the quarter stood at 86.6 MMT, a 15% on-year growth. Kansai Nerolac Paints: The company has recorded a 27% on-year increase in consolidated profit at Rs 111.2 crore for the quarter ended September FY23, supported by higher operating income. Revenue from operations grew by 19% on-year to Rs 1,931 crore for the quarter. The quarter witnessed good demand in automotive with the easing of the supply chain challenges, but demand in decorative was subdued due to extended rains. Tejas Networks: The company has received approval for manufacturing of telecom and networking products under design-led PLI (production linked incentive) scheme. The company has committed to make a minimum cumulative capital investment of Rs 750 crore over the scheme period. Grasim Industries: The company said its Finance Committee of the Board of Directors has approved issue of non-convertible debentures (NCDs) on private placement basis, for up to Rs 1,000 crore, in one or more tranches. Also Read: Global gold demand rises 28% to 1,181.5 tonnes in September quarter Q2 Results Today: M&M Financial Services, Adani Transmission, Dalmia Bharat, EIH, GATI, Gravita India, JK Paper, Kajaria Ceramics, KSB, Mahindra Holidays & Resorts India, MTAR Technologies, Procter & Gamble Hygiene & Health Care, Redington, SIS, and Triveni Turbine are scheduled to declare their quarterly earnings on 2 November.
If the current trend continues for a longer period of time, not only oil mills but oilseeds growers will also not be able to get good rates of their produce, says Samir Shah, president of Gujarat State Edible Oils and Oil Seeds Association (GEOA). Shah who is also past president of SOMA says that due to various international factors rates of edible oils had gone up considerably, especially imported oils earlier this year.
“With a view to curb rising prices of edible oil, the Government of India reduced import duty on edible oils. Considering the fact that India is producing hardly 30 percent of its edible oil requirement, the decision was right at that point of time. Now when international prices of edible oils have gone down by 15 percent to 25 percent and high production period has started in edible oil exporting countries, the government should gradually increase import duty to protect local oil mills and oilseeds growers,” said Shah. GEOA has also made representation before Union Minister for Commerce & Consumer Affairs, Piyush Goyal to increase import duty.
In June import duty on edible oils was ranging from 35 to 55 percent, since then the government gradually reduced import duty and at present it is ranging from zero percent to 15 percent on different edible oils, he said.
Just a month back prices of edible oils were through the roof and the government took appropriate measures by reducing import duty in order to protect consumers, says Atul Chaturvedi, president of Solvent Extractors Association of India (SEA). “Prices of edible oils are coming down globally. Kharif sowing has already started across the country. In the interest of local farmers, it is high time to enhance import duty in a phased manner to encourage local edible oil value chain,” opined Chaturvedi.
On Thursday imported Palm oil prices were at around Rs 2100 per 15 kg as against local Rs 2700 and Rs 2550 of groundnut and cottonseed oils. Prices of other local oils including ricebran, coconut, soyabean and mustard remained as high as Rs 2350, Rs 2520, Rs 2500 and Rs 2580 respectively.
India imports around 13-13.5 million tonnes of edible oils, of which around 8-8.5 million tonnes (around 63 per cent) are palm oil. Though the price of other imported Sunflower oil remained at around Rs 2700 per 15 kg, but import quantity of the oil is much lower than that of palm oil.