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MARKET UPDATE

• NIFTY 50 : ₹18,329.15 (-0.11%)

• BSE SENSEX : ₹61,624.15 (-0.28%)

• NIFTY BANK : ₹42,076.75 (-0.14%)

• USD/INR : ₹80.97 (+0.61%)

• BRENTOIL : $94.03 (-2.04%)

• MCXGOLD : ₹52,693 (+0.69%)

• FII Net Cashflow : + ₹1089 crores

• DII Net Cashflow : + ₹47 crores

(Market data as of 11:00 PM on 14/11/2022) 

ECONOMY

India’s retail inflation hits 3-month low, still above 6% set by RBI

Key Facts

• Inflation eased from 7.41% in September to 6.77% in October

• India’s growth estimate cut by rating agencies assuming high inflation and price rise

• Inflation expected to decrease in the coming two quarters of FY23

The Story

The retail inflation in India decreased to 6.77% in October on a yearly basis from 7.41% in September 2022. The value is still above the permitted band of 2-6% set by RBI for the 10th consecutive month.

The headline inflation grew from 0.57% to 0.8%. The supply-chain disruptions due to geopolitical factors like the war and increasing commodity prices globally continue to increase inflationary pressure. The food inflation decreased to 7.01% from 8.6% from last month.

Analysts predict India’s inflation rate will be elevated due to a variety of factors. Rating agencies including Moody’s have recently cut India’s growth estimate predicting high inflation and high interest rates. RBI governor had expected the rate to be less than 7%.

High inflation is a concern for banks worldwide as supply chain disruptions have exponentially increased due to the Russia Ukraine war. According to the flexible inflation targeting framework introduced in 2016, the RBI is considered to have failed in managing price rises if the CPI-based inflation is outside the 2-6 per cent range for three consecutive quarters.

The inflation is expected to come down to 6.5% in Q3 and 5.8% in Q4. The WPI index based inflation hit an 18 month low of 8.39% in October.

AUTOMOTIVE

Cummins Inc, Tata Motors team up to develop hydrogen-powered engines

Key Facts : 

• In accordance with the agreement, the two parties will work together to design and develop low- and zero-emission propulsion technology solutions for commercial vehicles in India, such as fuel cells, internal combustion engines, and battery electric vehicle systems.

• Since 1993, Cummins and Tata Motors have been partners in a joint venture to produce Cummins B series mid-range diesel engines for Tata automobiles.

The Story :

Tata Motors and Cummins Inc. have teamed up to provide solutions for hydrogen-powered commercial vehicles.

Cummins Inc is a global power solution and hydrogen technology provider. Cummins' zero-emission product portfolio also includes its fourth-generation hydrogen fuel cell engine.

The next step toward low and zero-emissions technology is an exciting development for zero-emissions mobility. Cummins and Tata Motors have a long history of collaboration. According to Tom Linebarger, executive chairman of Cummins Inc., ‘’Our partnership with Tata in India is a significant turning point for Cummins and Tata as we try to accelerate the transition to a carbon-free economy and a zero-emissions world’’.

This agreement strengthens the partnership between the two parties and supports India's goal of achieving net-zero carbon emissions by 2070 and "Energy for Sustainable Growth."

FMCG

This small-cap stock is a contract manufacturer of top FMCG companies; do you hold it?

The Story

On November 10, shares of Hindustan Foods Ltd. rose 13% and finished at Rs. 558. The stock's intraday high and low were Rs 566 and Rs 498.65, respectively, and it opened at Rs 504.65. With 17 facilities spread out over India, Hindustan Foods Ltd primarily serves FMCG firms as a contract manufacturer. It is involved in the production of goods in a variety of sectors, including food and beverages, personal care, and home care. The business also sells detergents and pest control products, along with leather shoes and accessories. Hindustan Unilever Limited, Marico, Scholl, Arvind, Wipro, ITC Limited, Godrej, Reckitt, and other well-known companies are partners with Hindustan Food Limited.

For multinational clothing companies like Hush Puppies, Gabor, Steve Madden, Arrow, U.S. Polo, and Louis Philippe, it serves as a contract manufacturer. In 1988, Hindustan Food was established as a joint venture between the Dempo group and Glaxo India Limited. Regarding the ownership structure of the company, the promoters own 64.85% of the stock, followed by FIIs with 6.04 percent, DIIs with 6.55 percent, and non-institutional investors with the remaining 22.56%. The company is currently trading at a PE multiple of 96x and has a market capitalization of Rs 6300 crore. 52-week high and low prices for the stock are Rs. 569 and Rs. 325, respectively.

The business just released its September quarter results. Revenue for the company increased quarterly (Q2FY23) by 40.49% YoY to Rs 661.79 crore from Rs 471 crore recorded in Q2FY22. In contrast, the net profit increased by 62.5 percent YoY to Rs 18.93 crore.

TECH

Government lifts ban on VLC Media Player website

The Story

According to reports in the media, the central government lifted the restriction on the VLC Media Player website on Monday. Indian internet users can now access the website. Due to security concerns, the authorities had earlier this year shut the website. The parent business, VideoLan, stated at the beginning of the year that it became aware of the ban on its app and website in India in February 2022. The company said that no explanation for the suspension had been provided

The corporation issued a legal letter to the DoT and MeitY on September 30 asking for an explanation for the blockade. According to the notice, VideoLan would file a lawsuit against the Indian government to defend the rights that were promised by the Indian constitution. In a series of tweets, VideoLan requested Indian citizens' assistance in lifting the embargo. On its Twitter account, the media player asserts that it has been prohibited in India since February without being provided a justification. The president of VideoLan, Jean-Baptiste Kempf, had requested a chance to present his case "via a virtual hearing."

Want a BIT More?

Launch of Certificate Program in Management of Social Initiatives by TimesPro and IIM Kozhikode

Key Facts : 

• The Certificate Program in Management of Social Initiatives will be delivered in Direct-to-Device (D2D) mode using TimesPro's cutting-edge Interactive Learning (IL) platform.

• The Certificate Programme in Management of Social Initiatives will be of 11 months.

• TimesPro, founded in 2013, is a top Higher EdTech platform committed to empowering learners' career development by giving them the tools they need to succeed in a cutthroat environment.

The Story

The Certificate Program in Management of Social Initiatives was established by TimesPro and the Indian Institute of Management Kozhikode to help learners develop their design and management skills and become change-makers. Learners will obtain conceptual understanding and insights into the three social initiative pillars of corporate social responsibility, not-for-profit endeavors, and social entrepreneurship through the 11-month Certificate Programme in Management of Social Initiatives.

Prof. Debashis Chatterjee, Director of IIM Kozhikode, commented on the news by saying, "The social service industry demands management professionals with a full understanding of the social ecosystem to ensure efficiency, quality, and sustainability of service delivery to the public. Human resources, finances, fundraising, marketing, organizational management, strategic management, social policy and administration, research and evaluation, and the use of information technology in service delivery are examples of required management competencies with a social orientation. Participants in this program, created by IIM Kozhikode's top-notch faculty with the help of their cutting-edge thought leadership and market-leading insights, will be empowered to manage and lead complex managerial challenges with assurance and decision-making ability.