<ul><li>India’s financial services giants <keyword id="6357149" type="General" weightage="20" keywordseo="hdfc-bank" source="Orion">HDFC Bank</keyword> and <keyword id="45123" type="General" weightage="20" keywordseo="hdfc" source="Orion">HDFC</keyword> witnessed a selloff on Friday, with their stocks falling by over 6% each.</li><li>This resulted in the combined market capitalisation of the two companies falling by almost ₹88,000 crore.</li><li>While the market participants were expecting MSCI to double the index weight of the merged entity, the index provider retained its weightage – analysts now expect outflows of up to $200 million as a result.</li></ul>India’s financial services giants HDFC Bank and HDFC witnessed a selloff on Friday, with each of their stocks falling by over 6% leading to a decline of ₹87,945 crore in their combined market capitalisation. This is after index provider MSCI announced a tweak that will result in the weightage of the merged entity remaining the same, likely leading to outflows of up to $200 million. This is contrary to the<a href="https://www.businessinsider.in/finance/banks/news/hdfc-hdfc-bank-merger-to-bring-inflows-of-up-to-3-billion-all-eyes-now-on-the-merger/articleshow/99557243.cms"> street expectations</a> of MSCI doubling the index weightage of the merged entity, which would have resulted in inflows of up to $3 billion. “Based on the estimated post-event foreign room of HDFC Bank and pursuant to the MSCI Corporate Events Methodology, to reduce the risk of reverse turnover, MSCI intends to add HDFC Bank to Large Cap Segment of MSCI Global Standard Indexes with a foreign inclusion factor (FIF) of 0.37 after applying an adjustment factor of 0.5,” MSCI said in a statement. While the market expectation was an adjustment factor of 1x, MSCI’s tweak has instead used an adjustment factor of 0.5x. According to the analysts at Nuvama Research, this could result in foreign portfolio investor (FPI) outflows of up to $200 million. “We had estimated the foreign room for the merged entity to be around 18% which is above 15% and above the MSCI threshold to maintain stock with full factor. However, as per the current methodology, the weighting of the merged entity would be again reduced in the next quarterly index reviews if the foreign room would have come below 15%,” said a note by Nuvama. This has resulted in the stocks of HDFC twins tanking by over 6% in morning trade on Friday. <table style="border-width: initial; border-style: none;" class="redcator-table-advance"><colgroup></colgroup><col /><col /><col /><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Company </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">CMP </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Mcap change </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">HDFC Bank </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,728 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-₹59,063 crore </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">HDFC </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2,862 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-₹28,882 crore </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Total </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-₹87,945 crore </td></tr></tbody><tbody></tbody><tbody></tbody></table> Source: NSE, as on May 5, 2023 / Market cap change as compared to May 4 <cmsannotation type="cmsannotation" annotationid="Merger to be completed by July, says HDFC Bank" comment="subhead" text="Merger to be completed by July, says HDFC Bank">Merger to be completed by July, says HDFC Bank</cmsannotation> In its March-quarter earnings, HDFC Bank’s management noted that the merger is likely to be completed by July 2023, post all the necessary regulatory approvals and shareholder confirmation. HDFC will merge into HDFC Bank. The merger has<a href="https://www.businessinsider.in/finance/banks/news/hdfc-hdfc-bank-merger-gets-nclt-clearance/articleshow/98735804.cms"> received</a> in-principle approvals from the Reserve Bank of India (RBI), the Securities and Exchange Board of India (SEBI), the Competition Commission of India (CCI) as well as the National Company Law Tribunal (NCLT), among others. “From a timing point of view, that June or July, possibly July, is where we think the time frame is,” said HDFC Bank’s chief financial officer Srinivasan Vaidyanathan in a post-earnings call with analysts. While HDFC Bank’s March-quarter earnings were in line with analyst expectations, the next catalyst for India’s largest private sector lender is the merger. The stock has witnessed see-saw movement in 2023 so far, gaining 0.4% till date compared to a 0.1% decline in the Nifty Bank Index. <div type="javascript" title="Custom" contenttype="Text"><cdata><![CDATA[<blockquote class="stocktwits-embedded-post" data-origin="https://stocktwits.com" data-id="526415022"> $HDFC.NSE Stock opened gap down in todays session which is expected to continue the downtrend and test the support area levels in coming days. &mdash; (@Stock_Phoenix) <a href="https://stocktwits.com/Stock_Phoenix/message/526415022"> May 05, 2023</a></blockquote><script async src="https://stocktwits.com/min/widgets.js" charset="utf-8"></script>]]></cdata></div> SEE ALSO: <a href="https://www.businessinsider.in/business/corporates/news/adani-enterprises-q4-net-profit-more-than-doubles-yoy-to-722-crore/articleshow/99990510.cms">Adani Enterprises Q4 net profit more than doubles YoY to ₹722 crore as airports and roads businesses pick up pace</a> <a href="https://www.businessinsider.in/business/auto/news/hero-motocorp-q4-net-profit-beats-estimates-rises-37-yoy-to-859-crore/articleshow/99989966.cms">Hero MotoCorp Q4 net profit beats estimates, rises 37% YoY to ₹859 crore</a> <a href="https://www.businessinsider.in/business/corporates/news/hiring-in-it-companies-like-tcs-wipro-infosys-hcl-tech-plunges-by-66-in-fy23/articleshow/99960690.cms">Hiring in the IT sector plunges by 66% in FY23</a>

HDFC Bank, HDFC market capitalisation falls nearly ₹88,000 crore after MSCI tweak

Adani group stocks tumble after MSCI tweak, market capitalisation falls by ₹23,000 crore

<ul><li>Both the indices were down by 0.60% – <keyword id="6484188" type="General" weightage="20" keywordseo="sensex" source="Orion">Sensex</keyword> was hovering at 61,359 points, while <keyword id="2931774" type="General" weightage="20" keywordseo="nifty50" source="Orion">Nifty50</keyword> was at 18,145 points.</li><li>HDFC twins fell by over 5% after index provider MSCI tweaked the weight of the merged entity below street expectations.</li><li><keyword id="118623" type="General" weightage="20" keywordseo="adani-enterprises" source="Orion">Adani Enterprises</keyword>, <keyword id="6357120" type="General" weightage="20" keywordseo="paytm" source="Orion">Paytm</keyword>, <keyword id="62356" type="General" weightage="20" keywordseo="tvs" source="Orion">TVS</keyword>, Hero MotoCorp, <keyword id="6359432" type="General" weightage="20" keywordseo="britannia" source="Orion">Britannia</keyword> are amongst <keyword id="73648" type="General" weightage="20" keywordseo="stocks-to-watch" source="Orion">stocks to watch</keyword> today.</li></ul>India’s benchmark indices Sensex and Nifty50 were trading lower on Friday amid uncertainty in global markets. HDFC twins fell by over 5% after index provider MSCI tweaked the weight of the merged entity below street expectations. Both the indices were down by 0.60% – Sensex was hovering at 61,359 points, while Nifty50 was at 18,145 points. Top gainers and losers on Nifty50 <table style="border-width: initial; border-style: none;" class="redcator-table-advance"><colgroup></colgroup><col /><col /><col /><col /><tbody><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Top gainers </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Change </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Top losers </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 1pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Change </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Titan </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2.42% </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">HDFC Bank </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 1pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-5.23% </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Adani Enterprises </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.85% </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">HDFC </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-5.08% </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Adani Ports &amp; SEZ </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.55% </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tata Steel </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-2.03% </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">ITC </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.53% </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">UPL </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-1.62% </td></tr><tr><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">ICICI Bank </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1.49% </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Hindalco Industries </td><td style="border-left:solid #000000 0.5pt;border-right:solid #000000 0.5pt;border-bottom:solid #000000 0.5pt;border-top:solid #000000 0.5pt;vertical-align:top;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-1.49% </td></tr></tbody><tbody></tbody><tbody></tbody></table>Source: NSE, as on May 5, 2023 Earlier on Thursday, both the indices rose 0.9% to touch their respective 2023 peaks – Sensex closed at 61,749 points while Nifty50 rose to 18,256 points. Gold and silver prices continued to be on the boil – gold prices touched ₹61,500 per 10 grams while silver rose rapidly to cross the ₹78,000 per kilogram mark. Crude oil prices remained soft, with Brent crude hovering around $73 per barrel. US markets plummet on banking sector woes Markets in the US continued to fall on Thursday amid banking sector woes. Trades were halted in Western Alliance Bancorp, PacWest Bancorp and First Horizon Corporation, while Goldman Sachs Group’s role in the Silicon Valley Bank deal was also being looked into. As a result, Dow Jones closed 0.9% lower, while S&amp;P 500 fell 0.7%. The tech-heavy Nasdaq fell 0.5%. Markets in Asia were trading mixed on Friday morning – while Hang Seng and Nikkei 225 rose 0.30% and 0.12% respectively, Taiwan Weighted and KOSPI were flat. Shanghai Composite, however, fell 0.51%. <cmsannotation type="cmsannotation" annotationid="Stocks to watch" comment="subhead" text="Stocks to watch">Stocks to watch</cmsannotation> Adani Enterprises: The Gautam Adani company reported a net profit of ₹722 crore for the fourth quarter, more than doubling it from ₹304 crore a year ago. Driving the profitability were the company’s capital-intensive airports and roads businesses. For FY23, the net profit more than tripled to ₹2,473 crore from ₹777 crore a year ago. TVS Motor: The company’s standalone net profit jumped 49% to ₹410 crore in March quarter from ₹275 crore during the same period last year on the back of strong sales. Meanwhile, its revenue from operations in the quarter grew 19% at ₹6,605 crore as compared to ₹5,530 crore last year. Hero MotoCorp: India’s largest two-wheeler manufacturer beat analyst <a href="https://economictimes.indiatimes.com/markets/stocks/earnings/hero-motocorp-q4-results-pat-beats-estimates-jumps-37-yoy-to-rs-859-cr-revenue-up-12/videoshow/99989882.cms">estimates</a> to deliver a 37% YoY rise in standalone net profit to ₹859 crore in Q4, aided by price hikes, cost cutting and improved product mix. The company posted a 17% growth in its FY23 net profit, which rose to ₹2,911 crore. Dabur: The FMCG major’s profit during the March quarter grew marginally by 2.25% to ₹300 crore while its revenue went up 6.35% to ₹2,677 crore. It announced a final dividend of ₹2.70 per share for FY23. Raymond: The company’s board will meet on May 6 to consider a proposal for raising up to ₹2,200 crore through non-convertible debentures for paying external debt. United Breweries: The beer maker’s profit tanked sharply in the March quarter by 94% to ₹9.87 crore from ₹163 crore a year ago. However, revenue from operations were up 11% to ₹4,081 crore. Earnings today: Britannia Industries, Adani Power, Marico, One97 Communications (Paytm), Bharat Forge, Blue Dart, DCB Bank, Equitas Small Finance Bank, Federal Bank, Gujarat Fluorochemicals, Piramal Enterprises among companies to report their March quarter earnings. SEE ALSO: <a href="https://www.businessinsider.in/business/corporates/news/adani-enterprises-q4-net-profit-more-than-doubles-yoy-to-722-crore/articleshow/99990510.cms">Adani Enterprises Q4 net profit more than doubles YoY to ₹722 crore as airports and roads businesses pick up pace</a> <a href="https://www.businessinsider.in/business/auto/news/tvs-motors-q4-net-profit-jumps-49-on-year-to-410-crore/articleshow/99991586.cms">TVS Motor’s Q4 net profit jumps 49% on year to ₹410 crore</a> <a href="https://www.businessinsider.in/business/auto/news/hero-motocorp-q4-net-profit-beats-estimates-rises-37-yoy-to-859-crore/articleshow/99989966.cms">Hero MotoCorp Q4 net profit beats estimates, rises 37% YoY to ₹859 crore</a>

Sensex, Nifty50 slip amid weak global cues: HDFC twins tumble over 5%

Benchmark equity indices Sensex and Nifty declined more than 1 per cent at close on Friday dragged down by a heavy sell-off in index major <keyword id="45123" type="General" weightage="100" keywordseo="hdfc" source="Orion">HDFC</keyword> twins. The 30-share BSE Sensex tanked 694.96 points or 1.13 per cent to settle at 61,054.29. During the day, it plunged 747.08 points or 1.20 per cent to 61,002.17. The NSE Nifty fell 186.80 points or 1.02 per cent to end at 18,069. Among the Sensex firms, <keyword id="6357149" type="General" weightage="50" keywordseo="hdfc-bank" source="Orion">HDFC Bank</keyword> tumbled 5.80 per cent followed by HDFC which plummeted 5.57 per cent. Both the stocks fell sharply amid reports that the merged HDFC entity could see significant outflow. "The Indian market was dragged down by heavy selling in HDFC twins on fears of post-merger fund outflow. In addition, the cues from global peers were lacklustre as the ECB raised rates by 25 bps and signalled the need for further rate hikes. "Wall Street has witnessed prolonged selling pressure due to apprehensions in the banking sector about the strength of regional banks," said <keyword id="224336" type="General" weightage="50" keywordseo="vinod-nair" source="Orion">Vinod Nair</keyword>, Head of Research at Geojit Financial Services. IndusInd Bank, Tata Steel, Kotak Mahindra Bank, Mahindra &amp; Mahindra, <keyword id="85462" type="General" weightage="50" keywordseo="bajaj-finserv" source="Orion">Bajaj Finserv</keyword>, HCL Technologies, Infosys, <keyword id="10862" type="General" weightage="50" keywordseo="wipro" source="Orion">Wipro</keyword> and NTPC were the other major laggards. Titan, <keyword id="6355596" type="General" weightage="50" keywordseo="ultratech-cement" source="Orion">UltraTech Cement</keyword>, Maruti, Nestle, ITC and Larsen &amp; Toubro were among the gainers. In Asian markets, Shanghai ended lower, while Hong Kong settled in the green. European equity markets were trading higher. The US markets ended lower on Thursday. Foreign Institutional Investors (FIIs) were net buyers on Thursday also as they bought equities worth Rs 1,414.73 crore, according to exchange data. Meanwhile, global oil benchmark Brent crude climbed 1.59 per cent to USD 73.65 per barrel. The BSE benchmark had climbed 555.95 points or 0.91 per cent to settle at 61,749.25 on Thursday. The Nifty had advanced 165.95 points or 0.92 per cent to end at 18,255.80. SEE ALSO: <a href="https://www.businessinsider.in/finance/banks/news/hdfc-bank-hdfc-market-capitalisation-falls-after-msci-tweak/articleshow/100006092.cms">HDFC Bank, HDFC market capitalisation falls nearly ₹88,000 crore after MSCI tweak</a> <a href="https://www.businessinsider.in/business/corporates/news/adani-enterprises-q4-net-profit-more-than-doubles-yoy-to-722-crore/articleshow/99990510.cms">Adani Enterprises Q4 net profit more than doubles YoY to ₹722 crore as airports and roads businesses pick up pace</a> <a href="https://www.businessinsider.in/business/news/indigo-airlines-stock-to-surge-further-as-go-firsts-troubles-mount/articleshow/100009541.cms">The skies are clearer for IndiGo stock to surge further as Go First’s troubles mount</a>

Sensex, Nifty50 tumble over 1% on sell-off in HDFC twins

<ul><li><keyword id="6361485" type="General" weightage="20" keywordseo="marico" source="Orion">Marico</keyword>’s revenue rose 4% on year to ₹2,240 crore for the March quarter.</li><li>The FMCG player reported a 5% volume growth in the India business. Operating margins expanded by 153 basis points to 17.5%.</li><li>Further, Marico said it expects revenue in the domestic business to grow going ahead aided by distribution expansion, aggressive cost controls and adequate investment in market development and brand building.</li></ul>Parachute and Saffola oil maker Marico on Friday reported a 20% year-on-year net profit growth at ₹302 crore for the March quarter while revenue rose 4% to ₹2,240 crore. Profit for the quarter includes a one-time gain of ₹28 crore on sale of land in one of the overseas locations. The fast-moving consumer goods (FMCG) company reported a 5% volume growth in its India business for the quarter. Operating margins expanded by 153 basis points to 17.5%. “Urban consumption has remained steady in the past few quarters; however, signs of visible buoyancy are awaited. The rural sector has most likely bottomed-out as the declining trend reversed in this quarter,” said the company in a statement. Besides, it said that the domestic sales lagged volume growth due to price cuts effected in Parachute Coconut Oil and Saffola Edible Oils during the year in response to falling input prices. Further, Marico said it expects revenue in the domestic business to grow going ahead aided by distribution expansion, aggressive cost controls and adequate investment in market development and brand building. “We expect a gradual uptick in revenue growth as pricing interventions come into the base in the first half of FY24,” it said. The company’s international business delivered constant currency revenue growth of 16% for the quarter amid global macroeconomic uncertainty and currency devaluation headwinds in some of the geographies. “Each of the regions posted a strong performance reflecting the underlying strength of the businesses,” said Marico. Bangladesh clocked 9% constant currency growth, Vietnam grew by 16%, MENA (Middle East and North Africa) grew by 37% and South Africa grew by 21%, it said. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"><colgroup></colgroup><col /><col /><col /><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Particulars </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Q4 FY23 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">YOY % change </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Revenue from operations </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2,240 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">4% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Net profit </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹302 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">20% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">EBITDA margin </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">17.5% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">153 basis points </td></tr></tbody></table>Source: Company statement From a portfolio perspective, Parachute Rigids posted a 9% volume growth for the quarter, value-added hair oils registered a 13% growth while the foods segment rose 18% to end the year close to the ₹600-crore revenue mark. The Saffola franchise, comprising refined edible oils and foods, declined 9% in value terms, given the low-teen revenue decline in edible oils, it said. Ahead of the earnings, shares of the company ended 0.53% lower at ₹494 on Friday. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/indigo-airlines-stock-to-surge-further-as-go-firsts-troubles-mount/articleshow/100009541.cms">The skies are clearer for IndiGo stock to surge further as Go First’s troubles mount</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/banks/news/hdfc-bank-hdfc-market-capitalisation-falls-after-msci-tweak/articleshow/100006092.cms">HDFC Bank, HDFC market capitalisation falls nearly ₹88,000 crore after MSCI tweak</a>

Parachute oil maker Marico’s net profit rises 20% in Q4 to ₹302 crore

<ul><li>Biscuit maker <keyword id="6359432" type="General" weightage="20" keywordseo="Britannia" source="Orion">Britannia</keyword> on Friday reported a net profit of ₹559 crore in Q4, rising by 47% YoY. </li><li>Driving the profitability during the quarter were softer prices of inputs like palm oil and packaging materials. </li><li>Britannia’s net margins also rose on both quarterly as well as annual basis by 320 bps and 340 bps, respectively. </li></ul>Biscuit maker Britannia on Friday reported a net profit of ₹559 crore in Q4, rising by 47% YoY as softer prices of inputs like palm oil and packaging materials aided the company’s bottom line. Britannia’s topline registered a growth of 13% YoY in Q4 to ₹4,023 crore, while for the full FY23, its revenue increased by 15% to ₹16,301 crore. “We delivered a robust growth of 11% in this quarter on the back of significant distribution gains, which reflects our execution strength across businesses and channels,” said Varun Berry, vice president and managing director, Britannia Industries. For the full FY23, its net profit rose 52% to ₹2,322 crore. However, the full year FY23 net profit includes an exceptional gain of ₹359 crore on the sale of a 49% stake in subsidiary Britannia Dairy to French dairy company Bel SA. Adjusted for this, the company’s FY23 net profit stands at ₹1,963 crore, with an increase of 22.7% from FY22. Britannia also announced that its distributor network in rural areas has touched the 28,000 mark. During Q4, the company commercialised two new greenfield biscuit manufacturing units, one each in Tamil Nadu and Uttar Pradesh, alongside a brownfield expansion in Orissa. It also announced the launch of three new lines of rusk during the quarter. Britannia’s shares closed 0.9% higher on Friday at ₹4,628 ahead of the earnings. Britannia’s Q4 and FY23 in numbers: <table style="border-width: initial; border-style: none;"><colgroup></colgroup><col /><col /><col /><col /><col /><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Particulars </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY23 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">FY22 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Q4 FY23 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Q4 FY22 </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Revenue </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹16,301 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹14,136 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹4,023 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹3,550 crore </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Net profit </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹2,322 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,525 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹559 crore </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹380 crore </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Net margin </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">14.2% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.8% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">13.9% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.7% </td></tr></tbody></table> Source: Company reports <cmsannotation type="cmsannotation" annotationid="Softer input costs, higher net margins" comment="subhead" text="Softer input costs, higher net margins">Softer input costs, higher net margins</cmsannotation> Britannia’s net margins improved on both quarterly as well as full year basis – net margins in Q4 increased 320 basis points YoY to 13.9%, while FY23’s net margins came in higher at 14.2%, registered an increase of 340 basis points over FY22. “Input prices softened on the back of a correction in palm oil and packaging materials, while flour continued to trend higher. Our intensified cost efficiency program coupled with moderation in commodity inflation led to a healthy operating margin in this quarter,” Berry said. Thanks to cooling inflation in input materials’ prices, Berry said that Britannia will “deploy appropriate pricing actions” to increase its market share. If inflation remains cool going forward, the company could essentially cut prices of its products if necessary. SEE ALSO: <a href="https://www.businessinsider.in/business/news/indigo-airlines-stock-to-surge-further-as-go-firsts-troubles-mount/articleshow/100009541.cms">The skies are clearer for IndiGo stock to surge further as Go First’s troubles mount</a> <a href="https://www.businessinsider.in/finance/banks/news/hdfc-bank-hdfc-market-capitalisation-falls-after-msci-tweak/articleshow/100006092.cms">HDFC Bank, HDFC market capitalisation falls nearly ₹88,000 crore after MSCI tweak</a> <a href="https://www.businessinsider.in/business/corporates/news/adani-enterprises-q4-net-profit-more-than-doubles-yoy-to-722-crore/articleshow/99990510.cms">Adani Enterprises Q4 net profit more than doubles YoY to ₹722 crore as airports and roads businesses pick up pace</a>

Britannia’s Q4 net profit rises 47% YoY to ₹559 crore on softer input costs

Czech car maker <keyword id="101122" type="General" weightage="80" keywordseo="skoda-auto" source="Orion">Skoda Auto</keyword> has said <keyword id="3658" type="General" weightage="60" keywordseo="india" source="Orion">India</keyword> will become an export hub for the company as it is set to commence exports of vehicle kits for assembly in Vietnam from next year. The company, which posted a whopping 125 percent year-on-year surge in its vehicle sales at 53,721 units in 2022, also sounded hopeful of growing into double-digit this year as well. Similarly, <keyword id="166267" type="General" weightage="60" keywordseo="volkswagen-group" source="Orion">Volkswagen Group</keyword> sales grew 85.48 per cent year-on-year at 1,01,270 units in the previous calendar year. The Group is present through <keyword id="6361542" type="General" weightage="60" keywordseo="skoda" source="Orion">Skoda</keyword> Auto, <keyword id="6361865" type="General" weightage="80" keywordseo="volkswagen" source="Orion">Volkswagen</keyword>, Audi, Porsche and Lamborghini brands under Skoda Auto Volkswagen India Pvt Ltd (SAVWPIL). "India is an absolutely important market as part of our regional strategy of Skoda Auto, and India will become an export hub for Skoda," <keyword id="14798920" type="General" weightage="80" keywordseo="petr-solc" source="Orion">Petr Solc</keyword>, Brand Director at Skoda Auto India told PTI in an interaction. Volkswagen is already exporting vehicles from India to Mexico and South Africa while Skoda Auto is exporting to the Middle East and North Africa. "From next year we will start exporting vehicle kits for assembly in Vietnam," Solc stated. Export is already an important part and will continue to be an important part of the strategy for Skoda and Volkswagen, he stated. Noting that Skoda Auto India for the first time delivered more than 50,000 cars in the domestic market last year, he said "we would like to grow with the market or even faster and our ambition is to grow into double digits." He said that 2022 was specific for the company on account of the Slavia launch and added that "So, there was this kind of a one-time effect of any new model introduction." "Now, we have both models (all-new Slavia sedan and <keyword id="10576650" type="General" weightage="60" keywordseo="kushaq-suv" source="Orion">Kushaq SUV</keyword>) in the market and can now enjoy having both models for the full year in the market," he said. Solc said that the 7-seater updated SUV Kodiaq will also play a role in terms of the company's growth strategy, particularly when there is a much greater supply now. To a question on Audi, which at a point of time was the undisputed leader in the domestic premium luxury car market, Christian Cahn Von Seelen, Member of the Board for sales, marketing and digital at SAVWPIL said that its growth has been "impressive" in terms of volume in 2022 compared to the year earlier and that was still hampered significantly by the chip supply situations even in Europe. "So the growth of Audi is impressive, and we are definitely planning to continue...So as much (as) I think, I can say we will see loads of new product introductions here on the other side." On the company's EV foray in the Indian market, Solc said it depends on the development of the segment in the country. Late last month, the European car maker Skoda announced its EV roadmap, which includes six electric cars in a phased manner by 2026. "We as a manufacturer and Skoda, we will be ready. And if we see good traction, we are talking about the prognosis that the car market or the EV can go within 5-10 years, up to 20, maybe 30 per cent. We don't know necessarily," he said. "So this could be part, we would like to be also within that range, but depends again, on the response. If we see more manufacturers going, there is an infrastructure built here and there's an acceptance from the customers to buy electric cars, and we will be ready," he said. He said that the company is discussing which models it should bring in the future also to India as an EV. "And if we see the potential in the market, we will bring them as well. So I cannot say necessarily what the percentage will be. But if the market is going towards more than 20 per cent of the electric vehicles of the total market, we would like to penetrate within the EV segment," Solc added. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/science/health/news/india-adds-1839-covid-infections-active-cases-down-to-25178/articleshow/100063997.cms">India adds 1,839 Covid infections, active cases down to 25,178</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/adani-group-stocks-tumble-after-msci-tweak-market-capitalisation-falls-by-23000-crore/articleshow/100066101.cms">Adani group stocks tumble after MSCI tweak, market capitalisation falls by ₹23,000 crore</a>

India to become export hub for Skoda Auto from next year, says co-official

<keyword id="6354427" type="General" weightage="20" keywordseo="Apple" source="Orion">Apple</keyword> CEO Tim Cook has said India is an "incredibly exciting market" and a "major focus" for the company, as the Cupertino-based <keyword id="6354606" type="General" weightage="20" keywordseo="iPhone" source="Orion">iPhone</keyword> maker highlighted that business in India "set a quarterly record, grew very strong, double-digits year-over-year". India is at a "tipping point", the top honcho said during the Q2 earnings call of the company. Apple charted an ambitious retail expansion in India last month, when it launched two retail outlets here, in Mumbai and Delhi, during Cook's first trip to the country in seven years. The two stores are "off to a great start", Cook said during the quarterly earnings call. "Looking at the business in India, we did set a quarterly record, grew very strong, double-digits year-over-year. So it was quite a good quarter for us, taking a step back, India is an incredibly exciting market," Cook said. The Apple CEO praised the "dynamism in the market" and asserted that its "vibrancy is unbelievable". "It's a major focus for us. I was just there, and the dynamism in the market, the vibrancy is unbelievable. Over time, we've been expanding our operations there to serve more customers, and three years ago, we launched the Apple Store online, and then, as you just mentioned, we launched two stores just a few weeks ago, and they're off to a great start, one in Mumbai and one in Delhi," he said. Apple has a number of channel partners in the country and is "very happy with how that's going overall". "Overall, I couldn't be more delighted and excited by the enthusiasm I'm seeing for the brand there. There are a lot of people coming into the middle class, and I really feel that India is at a tipping point, and it's great to be there," Cook said. Cook, during his recent India trip, had met Prime Minister Narendra Modi, as well as Minister for Electronics and IT Ashwini Vaishnaw, and Minister of State for IT Rajeev Chandrasekhar, as he pledged the company's investment commitment to India. Looking to replicate what China did to Apple's business in the last 15 years, the tech giant is eyeing India's massive market with an expanding middle class to power sales growth, and potentially make it a home base for the production of millions of Apple devices. The new stores in Mumbai and Delhi come at a time when Apple is trying to deepen its retail push in India, the world's second-largest smartphone market. As such, India is also home to factories that produce 5 per cent of total iPhones as Apple diversifies its supply chains away from China. "And as I noted earlier, in a milestone for Apple, we just opened our first two Apple stores in India, in Mumbai and Delhi. I was there to see it for myself, and I couldn't have been more delighted by the excitement and enthusiasm of the customers, developers, creators and team members I got to spend time with," Cook said during the earnings' call. Apple has announced financial results for its fiscal 2023 second quarter ended April 1, 2023. The company posted quarterly revenue of USD 94.8 billion, down 3 per cent year over year. "Today, we're reporting revenue of USD 94.8 billion for the March quarter, which was better than our expectations. We set an all-time record for services and a March quarter record for iPhone," Cook said. He went on to add: "We were particularly pleased with the performance we saw in emerging markets and achieved all-time records in Mexico, Indonesia, the Philippines, Saudi Arabia, Turkey and the UAE, as well as a number of March quarter records, including in Brazil, Malaysia and India." SEE ALSO: <a href="https://www.businessinsider.in/finance/banks/news/hdfc-bank-hdfc-market-capitalisation-falls-after-msci-tweak/articleshow/100006092.cms">HDFC Bank, HDFC market capitalisation falls nearly ₹88,000 crore after MSCI tweak</a> <a href="https://www.businessinsider.in/business/corporates/news/adani-enterprises-q4-net-profit-more-than-doubles-yoy-to-722-crore/articleshow/99990510.cms">Adani Enterprises Q4 net profit more than doubles YoY to ₹722 crore as airports and roads businesses pick up pace</a> <a href="https://www.businessinsider.in/business/auto/news/hero-motocorp-q4-net-profit-beats-estimates-rises-37-yoy-to-859-crore/articleshow/99989966.cms">Hero MotoCorp Q4 net profit beats estimates, rises 37% YoY to ₹859 crore</a>

Apple hits record quarterly growth in India: Country at a tipping point, says Tim Cook

<ul><li>Foreign portfolio investors (<keyword id="2005494" type="General" weightage="100" keywordseo="fpis" source="Orion">FPIs</keyword>) started FY24 on a positive note as they invested ₹9,677 crore in financial services and <keyword id="82906" type="General" weightage="20" keywordseo="Auto-stocks" source="Orion">auto stocks</keyword> in April. </li><li>Overall, FPIs pumped in ₹11,629 crore in Indian equities during the month, with 16 out of the 24 sectors witnessing inflows. </li><li>The trend of positive FPI flows has gained even more momentum in May, with net equity investments standing at ₹14,703 crore this month so far. </li></ul>Foreign portfolio investors (FPI) have started FY24 on a positive note, with strong inflows observed in financial services and auto stocks in April. Together, these two sectors witnessed inflows of ₹9,677 crore during the month. Overall, FPIs were net buyers in Indian equities in April, extending their purchases from the previous month. Their net investments in Indian equities stood at ₹11,629 crore. All in all, 16 out of 24 sectors witnessed inflows during the month, while five sectors witnessed outflows and one sector remained flat. The trend of positive FPI flows has gained even more momentum in May, with net equity investments standing at ₹14,703 crore this month so far. “India outperformed most markets in April. The principal reason for the outperformance is the sustained buying by FPIs,” said VK Vijayakumar, chief investment strategist at Geojit Financial Services. <div type="image" title="FPI flows sector-wise April 2023." msid="100100457" hostid="261" sizebytes="19250" caption="&amp;lt;p&amp;gt;FPI flows sector-wise in April&amp;lt;/p&amp;gt;"></div> Indian equity markets roared in April after experiencing high volatility in March. During the month, the <keyword id="6354813" type="General" weightage="20" keywordseo="Nifty" source="Orion">Nifty</keyword>50 index surged 4.1% while Sensex gained 3.6%. The financial services index outperformed Nifty50 with gains of 4.4%, while Nifty Bank rose 6.5% and Nifty Auto index gained 7.7% in April. Apart from the strong FPI inflows, robust economic data like GST collections and manufacturing purchasing manager’s index (PMI) also helped. GST collections during April stood at ₹1.87 lakh crore, the highest-ever since the rollout of the indirect tax regime. Manufacturing PMI came in at 57.2, hitting a four-month high. “FPIs are likely to continue buying in India. The appreciation in rupee and good Q4 results will aid increasing capital flows to India,” Vijayakumar added. <cmsannotation type="cmsannotation" annotationid="FPIs remain wary about the IT sector" comment="subhead" text="FPIs remain wary about the IT sector">FPIs remain wary about the IT sector</cmsannotation> The Indian IT sector continues to make FPIs wary, resulting in the second consecutive month of outflows at ₹4,908 crore. Interestingly, the first half of April saw FPIs pour in ₹1,002 crore in the IT sector, but they turned bearish once the <a href="https://www.businessinsider.in/business/corporates/news/infosys-sees-4-7-revenue-growth-in-fy24-after-it-misses-its-own-fy23-revenue-guidance/articleshow/99467637.cms">Q4 earnings started pouring in</a>, resulting in an outflow of ₹5,910 crore in the second half of the month. In 2023 so far, FPIs have pulled out ₹12,886 crore from the IT sector. Mixed performance in Q4 and weaker outlook for the year ahead, has contributed to the sell-off. The Nifty IT pack fell 3.5% during April while the broader Nifty50 index gained 4.1%. Amongst the top losers in the Nifty IT pack are Infosys, LTI Mindtree and Tech Mahindra, while industry leader TCS managed to remain positive by a small margin. <table style="border-width: initial; border-style: none;"><colgroup></colgroup><col /><col /><col /><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Company </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">CMP </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Change in April </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Infosys </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,270 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-12.30% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">LTI Mindtree </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹4,624 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-7.20% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tech Mahindra </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,048 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-7.10% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">HCL Tech </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,079 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-2% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">TCS </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹3,270 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0.42% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Mphasis </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,863 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Persistent Systems </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹4,694 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">2.80% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Wipro </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹382 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">5.41% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Coforge </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹4,121 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">9.70% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">L&amp;T Tech </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹3,770 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">11.70% </td></tr></tbody></table> Source: NSE, CMP as on May 9, 2023 Despite <a href="https://www.businessinsider.in/business/corporates/news/hiring-in-it-companies-like-tcs-wipro-infosys-hcl-tech-plunges-by-66-in-fy23/articleshow/99960690.cms">weakness in the IT sector</a>, analysts remain broadly optimistic about Indian equity markets. Global brokerage Goldman Sachs expects the Nifty50 to touch 20,000 in the next 12 months, thanks to double-digit earnings growth, while Morgan Stanley has upgraded Indian equity markets to ‘equal-weight’ thanks to the resilient economy and reasonable valuations. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/sensex-scales-62000-these-stocks-were-the-top-gainers-and-losers-in-the-last-one-month/slidelist/100095421.cms">These stocks have helped Sensex cross 62,000 for the first time since December</a> <a href="https://www.businessinsider.in/stock-market/news/paytm-brokerages-looking-up-to-59-growth-in-one97-communications/articleshow/100070477.cms">Paytm shares surge 5% on sustained Q4 growth, brokerages see up to 59% upside</a> <a href="https://www.businessinsider.in/stock-market/news/adani-group-stocks-tumble-after-msci-tweak-market-capitalisation-falls-by-23000-crore/articleshow/100066101.cms">Adani group stocks tumble after MSCI tweak, market capitalisation falls by ₹23,000 crore</a>

FPIs pump ₹9,677 crore into financial services and auto stocks in April

Global <keyword id="18712" type="General" weightage="20" keywordseo="gold" source="Orion">gold</keyword> demand declined by 13 per cent year-on-year to 1,080.8 tonnes during the January-March quarter of this year, mainly due to outflows from European-listed <keyword id="982068" type="General" weightage="20" keywordseo="exchange-traded-fund" source="Orion">exchange-traded fund</keyword> (<keyword id="6357062" type="General" weightage="20" keywordseo="etf" source="Orion">ETF</keyword>) products, according to the World Gold Council (<keyword id="142987" type="General" weightage="20" keywordseo="wgc" source="Orion">WGC</keyword>). The total gold demand stood at 1,238.5 tonnes during the first quarter of 2022, WGC's Gold Demand Trends Q1 2023 stated. Holdings of global gold ETFs fell during Q1, with 29 tonnes of outflows in January and February equivalent to a USD 1.5 billion in outflow, the report said, adding that the majority of outflows came from the European-listed products. However, North American-listed ETFs, as well as those listed in other regions, witnessed a recovery in inflows during the first quarter of 2023, it added. "The mixed picture for quarter one highlights how gold's diverse sources of demand underpin its role and performance as a global asset," WGC Senior Markets Analyst Louise Street said. "Growth in some regions offset weakness in others as different economic forces and demand drivers played out in the global gold market. One commonality was that different types of investors looked to gold as a store of value in uncertain times," Street added. She, however, noted that against the backdrop of turmoil in the banking sector, ongoing geopolitical tensions and a challenging economic environment, gold's role as a safe haven asset has come to the fore. Moreover, it is likely that investment demand will grow this year, especially with waning headwinds from the strong US dollar and interest rate hikes, she said. She further noted that positive demand for gold ETFs has continued in the second quarter so far, and the looming threat of developed market recession may be the trigger for inflows to accelerate later in the year. "Central bank buying is likely to remain strong and will be a cornerstone of demand throughout 2023, even if at lower levels than the record highs seen last year," she added. Central banks have helped boost demand adding 228 tonnes to global reserves, a quarter-one record high in this data series, compared to 83 tonnes in the same period last year, said the report. "<keyword id="17331412" type="General" weightage="20" keywordseo="central-banks-of-singapore" source="Orion">Central banks of Singapore</keyword>, China and Turkey were the top buyers, while the Reserve Bank of India also added 7 tonnes to its reserves during the January-March quarter," WGC Regional CEO, India, Somasundaram PR told PTI. On the supply side, there was a slight increase in the first quarter to 1,174 tonnes, with marginal 2 per cent growth in mine production and a 5 per cent uptick in recycling driven by the higher gold price. The report further noted that bar and coin investment strengthened 5 per cent year-on-year to 302.4 tonnes compared to 287.7 tonnes in the same period of 2022, although there were notable shifts in key markets. The US bar and coin demand hit 32 tonnes in the first quarter, the highest quarterly level since 2010, and was driven primarily by recession fears and a flight to safety amid the banking turmoil, it said. This increase helped offset weakness in Europe and particularly Germany where there was a 73 per cent drop in demand, they stated. Meanwhile, jewellery performance was relatively flat in the first quarter at 477.9 tonnes compared to 475.3 tonnes in the corresponding period of 2022, the WGC report said. The report stated that Chinese demand regained ground, reaching 198 tonnes in its first quarter of unfettered consumer activity since lockdown restrictions were lifted. "Demand in China went up by 16 per cent due to the lifting of restrictions from the lockdown imposed to control the spread of Covid-19 and Chinese New Year," Somasundaram said. Meanwhile, demand in India declined as consumption fell by 17 per cent year-on-year to 78 tonnes during January-March 2023, mainly on account of a sharp increase in domestic gold prices to over Rs 60,000 per 10 grams and continued volatility in price. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/adani-enterprises-paytm-tvs-hero-motocorp-britannia-among-stocks-to-watch/articleshow/100001235.cms">Sensex, Nifty50 slip amid weak global cues: HDFC twins tumble over 5%</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/banks/news/hdfc-bank-hdfc-market-capitalisation-falls-after-msci-tweak/articleshow/100006092.cms">HDFC Bank, HDFC market capitalisation falls nearly ₹88,000 crore after MSCI tweak</a>

Gold demand dips 13% globally in Jan-Mar quarter says World Gold Council

<ul><li>India’s largest airline InterGlobe Aviation (IndiGo) has much to gain if its peer Go First fails to land safely.</li><li>Cooler crude, more passengers taking to the skies, and the grounding of Go First have set the airline’s growth on a higher altitude.</li><li>IndiGo also expects a 15% growth in its revenue per available seat kilometre (RASK), a key metric for airlines, in FY24.</li></ul>India’s largest airline InterGlobe Aviation (IndiGo) has a lot to cheer if its peer Go First fails to land safely – with domestic and international market share up for grabs. If the troubles of the budget airline which has <a href="https://www.businessinsider.in/business/news/go-first-suspends-sale-of-tickets-till-may-15-dgca-asks-airline-to-process-refunds-for-passengers/articleshow/99982706.cms">filed</a> for insolvency compound, competition will ease in the low-cost segment giving IndiGo more control over air fares. IndiGo’s shares have surged by over 7% since May 2 when Go First announced that it had filed a voluntary insolvency petition with the National Company Law Tribunal (NCLT). Despite the recent surge, IndiGo is flying light – literally and figuratively – with its valuations being attractive, according to brokerages. On the back of robust fleet utilization rates and the Indian aviation sector being on an upswing, IndiGo expects its revenue per available seat kilometre (RASK), a key metric for airlines, to grow at 15% in FY24. Now, new tailwinds like the grounding of Go First and the softening of crude oil prices are expected to give it a further boost. “The bias is positive towards airline stocks, predominantly IndiGo, for the next 9-12 months,” said a report by Motilal Oswal, adding that the airline is well positioned to improve its realisations and margins too. An average of brokerage estimates suggests that there is an upside of 17% over the next 12 months, with a target price of ₹2,536 per share, as compared to the current market price of ₹2,164. <div type="image" title="InterGlobe Aviation share price 01_01_23 to 05_05_23." msid="100009463" hostid="261" caption="&amp;lt;p&amp;gt;IndiGo share price in 2023&amp;lt;/p&amp;gt;"></div> <cmsannotation type="cmsannotation" annotationid="Dominance will play to its advantage" comment="subhead" text="Dominance will play to its advantage">Dominance will play to its advantage</cmsannotation> There is daylight between the market share of IndiGo and its rivals – the company has a market share of 55% domestically. Air India and Vistara, owned by the Tata group come in next, with a share of 8.9% and 8.7% respectively. IndiGo’s dominance will play to its advantage, according to analysts, not only helping it boost its margins, but also increase its market share. “Go First accounted for 8% of domestic traffic and 5% of international traffic (among Indian carriers). If this capacity goes out of the system, industry-level load factor and pricing environment can improve substantially,” said a report by IIFL Securities. Analysts at Credit Suisse explain that bringing an airline back from the brink of a collapse is difficult, as evidenced by Jet Airways’ troubles. “Go First filing for bankruptcy can benefit IndiGo in many ways,” the brokerage said. <cmsannotation type="cmsannotation" annotationid="IndiGo’s flight gets bigger wings" comment="subhead" text="IndiGo’s flight gets bigger wings">IndiGo’s flight gets bigger wings</cmsannotation> While <a href="https://www.businessinsider.in/business/corporates/engines-omicron-more-the-timeline-of-troubles-at-go-first/slidelist/99987425.cms">Go First</a> was India’s third largest airline, the Covid-19 pandemic hit the company hard when Pratt &amp; Whitney engines started failing, leading to the airline grounding half of its fleet. The company <a href="https://www.businessinsider.in/business/news/go-first-suspends-sale-of-tickets-till-may-15-dgca-asks-airline-to-process-refunds-for-passengers/articleshow/99982706.cms">voluntarily filed</a> for insolvency seeking interim relief from NCLT to stop lessors from possessing its fleet. IndiGo too was a customer of Pratt &amp; Whitney once. But, when its engine troubles surfaced in 2016, it signed on a competitor – another US-based engine manufacturer CFM, and escaped this fate. With a diverse and young fleet, the airline now boasts over 1,800 daily departures with more than 300 aircraft. Further, to cater to the growing demand, IndiGo is also looking to expand its fleet by 500 more aircraft, from Boeing and Airbus. This was right after its rival Air India run by the Tata group <a href="https://www.businessinsider.in/india/news/of-total-840-aircraft-order-470-is-for-planes-while-the-rest-370-are-options-says-air-india-executive/articleshow/97978085.cms">placed</a> a mega order of 470 aircraft. <cmsannotation type="cmsannotation" annotationid="Flying high" comment="subhead" text="Flying high">Flying high</cmsannotation> Overall, brokerages are bullish about IndiGo’s prospects, stating that the softening crude oil prices will further help the airline improve its margins. A surge in domestic passenger traffic also bodes well for the Indian aviation sector, with April witnessing 15% higher traffic of 4.3 lakh passengers per day, than the FY23 average of 3.73 lakh. All in all, IndiGo’s numero uno position in India, cooler crude, more passengers taking to the skies, and the fall of Go First all set the airline’s growth on a higher altitude. SEE ALSO: <a href="https://www.businessinsider.in/finance/banks/news/hdfc-bank-hdfc-market-capitalisation-falls-after-msci-tweak/articleshow/100006092.cms">HDFC Bank, HDFC market capitalisation falls nearly ₹88,000 crore after MSCI tweak</a> <a href="https://www.businessinsider.in/business/corporates/news/adani-enterprises-q4-net-profit-more-than-doubles-yoy-to-722-crore/articleshow/99990510.cms">Adani Enterprises Q4 net profit more than doubles YoY to ₹722 crore as airports and roads businesses pick up pace</a> <a href="https://www.businessinsider.in/business/auto/news/hero-motocorp-q4-net-profit-beats-estimates-rises-37-yoy-to-859-crore/articleshow/99989966.cms">Hero MotoCorp Q4 net profit beats estimates, rises 37% YoY to ₹859 crore</a>

The skies are clearer for IndiGo stock to surge further as Go First’s troubles mount

<ul><li><keyword id="6357120" type="General" weightage="100" keywordseo="paytm" source="Orion">Paytm</keyword> operator One97 Communications’ shares surged by over 5% on Monday after the company reported sustained business growth in Q4. </li><li>The payments platform reported a sharp contraction in its losses to ₹168 crore in Q4 from ₹761 crore a year ago. </li><li>Paytm’s Q4 performance has brokerages bullish on the company’s outlook, who now expect an upside of up to 59% in the company’s stock over the next 12 months. </li></ul>Paytm operator One97 Communications’ shares surged by over 5% on Monday after the company reported sustained business growth for the second consecutive quarter and a sharp reduction in losses to ₹168 crore from ₹761 crore a year ago. The company’s revenue surged 52% year-on-year (YoY) to ₹2,335 crore in the March quarter, while its gross merchandise value rose 40% to ₹3.62 lakh crore during this period. Other key business metrics like merchant base and loan disbursements also witnessed strong growth during the fourth quarter – loan disbursements rose 253% YoY to ₹12,554 crore, while the merchant base grew 25% to 33.5 million in Q4. Paytm managed to beat analyst expectations in terms of the bottom line, largely thanks to the full recognition of UPI incentives of ₹182 crore that it received in Q4. For FY23, Paytm’s revenue grew 61% to ₹7,990 crore, primarily driven by monetisation of its payment services and improving scale of its lending business. Its net loss narrowed to ₹1,776 crore in FY23 from ₹2,393 crore in FY22. <cmsannotation type="cmsannotation" annotationid="Strong Q4 has brokerages bullish on the company’s outlook" comment="subhead" text="Strong Q4 has brokerages bullish on the company’s outlook">Strong Q4 has brokerages bullish on the company’s outlook</cmsannotation> The payments platform’s Q4 performance has brokerages bullish on the company’s outlook. Markets lapped up the company’s Q4 results, with the stock rising over 5% in mid-market trade on Monday. So far in 2023, Paytm’s shares are up by over 36%. Brokerage estimates suggest that there is further upside of up to 59% over the next 12 months – with a target price of ₹1,150 per share – as compared to the current market price of ₹722. “Paytm’s revenue growth profile is in line with its India internet peers, with profitability higher, and valuations that are at the lower end against its peers,” global brokerage Goldman Sachs said. The brokerage added that it expects Paytm to become the most profitable company in its new-age internet startups universe in FY25. Citi Research outlined that Paytm’s business model has other tailwinds as well, which will continue to boost its revenue and bottom line going forward. “Paytm has several growth and profitability tailwinds in our view – digital payments continue to see robust growth and [there is] significant headroom for increase in penetration of lending products to existing consumers,” Citi Research said in a note. Overall, brokerage recommendations are largely bullish, with only Yes Securities giving the stock a ‘neutral’ rating. <table style="border-width: initial; border-style: none;"><colgroup></colgroup><col /><col /><col /><col /><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Brokerage </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Recommendation </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Target price </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Upside </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Goldman Sachs </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Buy </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,150 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">59% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Citi Research </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Buy </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹1,144 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">58% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">JP Morgan </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Overweight </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹950 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">32% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Motilal Oswal </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Buy </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹900 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">25% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Macquarie Research </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Outperform </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹800 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;background-color:#d9d9d9;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">11% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Yes Securities </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Neutral </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">₹750 </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:bottom;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">4% </td></tr></tbody></table> Note: Upside as compared to current market price <cmsannotation type="cmsannotation" annotationid="BNPL portfolio gets healthier" comment="subhead" text="BNPL portfolio gets healthier">BNPL portfolio gets healthier</cmsannotation> Paytm’s buy-now-pay-later (BNPL) portfolio has been a concern for investors. After remaining unchanged for five consecutive quarters, Paytm reported an improvement in its expected credit loss (ECL) in its BNPL portfolio to 0.75-1% in Q4 from 1.1-1.3% in Q3. Another metric that has seen an improvement in Q4 is the bounce rate in Paytm’s BNPL portfolio, which came down to 10.5-12% in Q4 from 11-13% in Q3 in the postpaid segment. “Sustainability of Paytm’s credit metrics has been a key investor concern, and these results should help build confidence around the scalability of the company’s lending book,” Goldman Sachs said. <cmsannotation type="cmsannotation" annotationid="Future catalysts for the Paytm stock" comment="subhead" text="Future catalysts for the Paytm stock">Future catalysts for the <keyword id="12401019" type="General" weightage="20" keywordseo="paytm-stock" source="Orion">Paytm stock</keyword></cmsannotation> Looking beyond the buzzwords, the next set of catalysts for the Paytm stock will be its continued progress towards profitability and clearing regulatory hurdles. “We see resolution of outstanding regulatory issues (ban on Paytm Payments Bank and online merchant onboarding) as the next set of catalysts for the stock,” Goldman Sachs added. The recent push for enabling access to credit via UPI (unified payments interface) using RuPay credit cards is also another aspect to watch out for, according to the analysts at Citi Research. Overall, the broad consensus among brokerages is that Paytm will achieve operating profitability by FY25. While lending partner concentration is one of the key aspects to monitor, the company is working on diluting it with plans to onboard up to 4 more partners in FY24. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/adani-group-stocks-tumble-after-msci-tweak-market-capitalisation-falls-by-23000-crore/articleshow/100066101.cms">Adani group stocks tumble after MSCI tweak, market capitalisation falls by ₹23,000 crore</a> <a href="https://www.businessinsider.in/business/corporates/news/britannias-q4-net-profit-rises-47-yoy-to-559-crore-on-softer-input-costs/articleshow/100017366.cms">Britannia’s Q4 net profit rises 47% YoY to ₹559 crore on softer input costs</a> <a href="https://www.businessinsider.in/business/news/indigo-airlines-stock-to-surge-further-as-go-firsts-troubles-mount/articleshow/100009541.cms">The skies are clearer for IndiGo stock to surge further as Go First’s troubles mount</a>

Paytm shares surge 5% on sustained Q4 growth, brokerages see up to 59% upside

<div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5b3135b61ae6624f008b527c-2400/gettyimages-629849300.jpg" border="0" alt="Jeff Bezos" data-mce-source="Photo by Drew Angerer/Getty Images" />Photo by Drew Angerer/Getty ImagesAmazon CEO Jeff Bezos</div></div></div><ul class="summary-list"><li><a href="https://markets.businessinsider.com/stocks/amzn-stock">Amazon</a> makes up 35% of the consumer-discretionary sector, one of the stock market's strongest performers of the past decade. </li><li>However, the company's growth is masking a more "perilous" future through the end of this cycle for other stocks in the sector, according to Mike Wilson, Morgan Stanley's chief US equity strategist. </li><li>He reiterated his "underweight" rating on the sector in light of the recent reshuffling of S&amp;P 500 sectors. </li></ul>It's not unusual for <a href="https://www.businessinsider.com/stock-market-record-high-masks-extreme-ignored-trend-morgan-stanley-says-2018-8">a handful of stocks</a> to bear much of the burden of keeping the market afloat. But on a smaller scale, specifically in the consumer-discretionary sector, Amazon's success may be distracting from the danger lurking among its peers, according to equity strategists at Morgan Stanley.The sector has been a juggernaut of investor returns this year, rallying 20% and second only to information technology. It also ranks second-best to tech over the past decade. However, Mike Wilson, Morgan Stanley's chief US equity strategist, has slapped an "underweight" rating on the sector that has little to do with Amazon, which constitutes 35% of the entire index. That's because Amazon's performance can only do so much to impact the sector's, Wilson said. "While the secular growth story for Amazon is well understood, we reiterate our point that the consumer wallet is likely to see decelerating growth heading into 2019, meaning competition intensifies, leading to more narrowness within the sector, a dynamic we view as ultimately unhealthy and likely to create more volatility," Wilson said in a client note on Monday.Amazon, which recently became the second US company to hit a <a href="https://markets.businessinsider.com/news/stocks/amazon-stock-price-2nd-us-company-1-trillion-club-2018-8-1027506812">$1 trillion market cap</a>, has helped move the needle on its sector's "extreme valuation," Wilson added. He said the sector's aggregate price-to-earnings ratio now trades near a 35% premium to the rest of the market, more than two standard deviations above the post-financial-crisis average. The sector's performance is outpacing earnings, and this trend is unsustainable in Wilson's view. <div class="KonaFilter image-container display-table click-to-enlarge"><div><div class="image on-image"><a title_source="Morgan Stanley" title_caption="" class="zoomin" href="https://static-ssl.businessinsider.com/image/5bb248f69a4ab801ee4470e9-960/screen shot 2018-10-01 at 121838 pm.png"><img src="https://static-ssl.businessinsider.com/image/5bb248f69a4ab801ee4470e9-854/screen shot 2018-10-01 at 121838 pm.png" border="0" alt="Screen Shot 2018 10 01 at 12.18.38 PM" data-mce-source="Morgan Stanley" /></a>Morgan Stanley</div></div></div>Wilson reupped his sector call to clients in light of a major reshuffling of the stock market that went into effect last week Friday. MSCI and S&amp;P tweaked the <a href="https://www.businessinsider.com/sp-500-gics-sector-reclassification-to-create-communication-services-2018-8">Global Industry Classification Standard</a> by creating a new communication-services sector. In addition, they moved some media companies, including <a href="http://markets.businessinsider.com/stock/nflx-Quote">Netflix</a>, out of consumer discretionary and into the new sector, to better reflect their business models.These changes left the consumer discretionary sector as having the most growth-oriented stocks on the market, meaning those that tend to rise and fall in tandem with the economy, according to Wilson. By his count, 74% of the stocks in consumer discretionary are growth, and just 9% are value. And it's another reason why he's wary of the group. Strategists at Morgan Stanley recently flagged <a href="https://www.businessinsider.com/us-economy-consumer-spending-could-be-headed-for-slowdown-morgan-stanley-2018-8">several reasons why they think the economic boom may slow</a> soon, including fading benefits from personal tax cuts and rising interest rates. "Amazon may keep the sector supported for a time, and we admit will likely be the last stock in the group to crack this cycle, but the path from now to cycle end for the median discretionary stock is likely perilous," Wilson said. <div class="margin-top"> <h3>NOW WATCH: <a href="https://www.businessinsider.com/what-caffeine-does-body-brain-2017-3">Here's what caffeine does to your body and brain</a></h3> <div> <iframe class="bijwplayerclass" data-player="jwplayer" src="https://content.jwplatform.com/players/qXmM39NV-CEZHWCBG.html" width="100%" height="100%" frameborder="0" scrolling="auto" style="margin:0px;" allowfullscreen=""></iframe><script>function receiveMessage(event){ console.log(event.data.fullscreen); Android.fullscreen(event.data.fullscreen); }window.addEventListener("message", receiveMessage, false);</script> </div> </div>

MORGAN STANLEY: Amazon's explosive growth is masking a fault line in one of the market's hottest sectors

<div class="KonaFilter image-container display-table"><div><div class="image on-image"><img src="https://static-ssl.businessinsider.com/image/5b9905298905f2151d8b53a1-2400/2008-10-10t120000z1152229447gm1e4aa1q8501rtrmadp3markets-brazil-halt.jpg" border="0" alt="traders" data-mce-source="Paulo Whitaker/Reuters" data-mce-caption="Traders work on the main floor of the BM&amp;F Bovespa stock exchange market in Sao Paulo October 10, 2008." />Paulo Whitaker/ReutersTraders work on the main floor of the BM&amp;F Bovespa stock exchange market in Sao Paulo.</div></div></div><ul class="summary-list"><li>After an impressive post-recession run, US stocks have the lowest expected return over the next five years, according to Northern Trust Wealth Management.</li><li>The investment firm, which oversees $1.2 trillion in assets overall, is advising US clients that having a home-country bias could prove more costly than it has up until now. </li><li>Katie Nixon, its wealth-management chief investment officer, told Business Insider of some pitfalls investors can avoid when investing outside the US. </li></ul>Since Lehman Brothers collapsed in 2008, investors who kept most of their assets in US stocks have silenced the naysayers.That's because the US has led the global recovery in equities and is now in its <a href="https://www.businessinsider.com/stock-bull-market-longest-on-record-4-main-reasons-for-longevity-2018-8">longest bull-market run</a> ever.But this overweight to the US is poised to become costly in the years to come, according to <a href="http://markets.businessinsider.com/stocks/ntrs-stock">Northern Trust</a>, which oversees $1.2 trillion in assets. "Ultimately, valuation matters, and capital is going to flow where they [investors] see the best risk-adjusted return," Katie Nixon, the wealth-management chief investment officer, told Business Insider. Her division has about $287 billion in assets under management. "Low valuation means a higher expected return, and that's certainly where we find ourselves related to a longer-term view on <a href="https://www.businessinsider.com/jeremy-grantham-investment-recommendations-predictor-of-every-modern-financial-bubble-2018-8">emerging markets</a>." The EM recommendation is one that's being made far and wide on Wall Street, from firms like <a href="https://www.businessinsider.com/stock-market-recommendations-emerging-us-2018-9">Merrill Lynch</a> to investing gurus like <a href="https://www.businessinsider.com/jeremy-grantham-investment-recommendations-predictor-of-every-modern-financial-bubble-2018-8">Jeremy Grantham</a>. One often-cited measure of just how expensive valuations in US markets have become is the price-to-earnings ratio of the S&amp;P 500, which, according to JPMorgan, is at the second-highest level on record for this stage of the business cycle.With valuations so high in the US, returns are likely to be muted on a five-year basis relative to history and what could be <a href="https://www.businessinsider.com/stock-market-recommendations-emerging-us-2018-9">earned in emerging markets</a>, Nixon said. Of course, it's not the most comfortable time for any investor to be an emerging-market bull, given the sell-offs that have ravaged countries and currencies from <a href="https://markets.businessinsider.com/currencies/news/turkish-lira-plunges-report-central-bank-deputy-governor-will-resign-2018-8-1027497291">Turkey</a> to <a href="https://markets.businessinsider.com/news/stocks/argentine-peso-slides-despite-worlds-highest-interest-rates-imf-bailout-2018-9-1027525443">Argentina</a> in 2018. Last month, MSCI's index of 24 emerging markets dived into a bear market - defined as a 20%+ drop from its late-January high - and it was down 13% year-to-date on Wednesday. Even Nixon and her team at Northern Trust have reduced their exposure to EM stocks on a 12-month basis, in favor of US investment grade and high-yield bonds. They agreed last week to tweak their global tactical asset allocation model. But they expect performance to be different on a longer timeline, potentially making it unwise for US investors to have a home-country bias. "US equities have the lowest expected return on our five-year forecast, and I do think that you'll start to see capital and interest certainly flow back into other areas of the world once those areas start performing a little bit better," Nixon said. Finding where exactly to invest in the EM universe is trickier than it seems. For one, many stock markets don't always move in sync with the goings on of their economies, so it's not as straightforward as identifying countries with the most robust growth.Brazil, for instance, had the best-performing major stock market in 2016 even with the economy in its worst recession on record.That's why Nixon recommends broad-based exposure. While declining to specify any names, she counseled using exchange-traded funds as a way to do this, noting that stock pickers in emerging markets sometimes have substantially higher fees than their developed-market counterparts.The stocks of multinational, US-based companies do not provide the same broad exposure to emerging markets the way ETFs do, Nixon said. Even companies like <a href="https://markets.businessinsider.com/stocks/ko-stock">Coca-Cola</a>, which earn revenues in several countries, do not offer enough diversification."We kind of fool ourselves into thinking 'I own <a href="http://markets.businessinsider.com/stock/aapl-Quote">Apple</a>, or I own Coke, so I own a global portfolio,'" she said. Additionally, Nixon does not recommend hedging the currency risk in EM equity markets. Given the 51% crash in the <a href="https://markets.businessinsider.com/news/stocks/argentine-peso-slides-despite-worlds-highest-interest-rates-imf-bailout-2018-9-1027525443">Argentinian peso</a>, or the 41% slump in the <a href="https://markets.businessinsider.com/currencies/news/turkish-lira-plunges-report-central-bank-deputy-governor-will-resign-2018-8-1027497291">Turkish lira</a>, it's a move that nervous investors would want to make."We don't agree with that at all," Nixon said of hedging out currency risk. "It's a small risk relative to the return over a long-term perspective, and it's very unrelated to the persistence of the equity risk premium that you get in EM." <div class="margin-top"> <h3>NOW WATCH: <a href="https://www.businessinsider.com/medical-breakthroughs-future-medicine-stem-cell-2018-8">Medical breakthroughs we will see in the next 50 years</a></h3> <div> <iframe class="bijwplayerclass" data-player="jwplayer" src="https://content.jwplatform.com/players/Oqgi3cD9-CEZHWCBG.html" width="100%" height="100%" frameborder="0" scrolling="auto" style="margin:0px;" allowfullscreen=""></iframe><script>function receiveMessage(event){ console.log(event.data.fullscreen); Android.fullscreen(event.data.fullscreen); }window.addEventListener("message", receiveMessage, false);</script> </div> </div>

An investment chief at a trillion-dollar firm breaks down some of the costliest mistakes American investors make when buying into other countries and how to avoid them

You Searched For "msci tweak" and got 14 results

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Parachute oil maker Marico’s net profit rises 20% in Q4 to ₹302 crore

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Britannia’s Q4 net profit rises 47% YoY to ₹559 crore on softer input costs

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India to become export hub for Skoda Auto from next year, says co-official

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Apple hits record quarterly growth in India: Country at a tipping point, says Tim Cook

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FPIs pump ₹9,677 crore into financial services and auto stocks in April

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Gold demand dips 13% globally in Jan-Mar quarter says World Gold Council

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The skies are clearer for IndiGo stock to surge further as Go First’s troubles mount

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Paytm shares surge 5% on sustained Q4 growth, brokerages see up to 59% upside

Rounak Jain

MORGAN STANLEY: Amazon's explosive growth is masking a fault line in one of the market's hottest sectors

Akin Oyedele

An investment chief at a trillion-dollar firm breaks down some of the costliest mistakes American investors make when buying into other countries and how to avoid them

Akin Oyedele