Moneycontrol Pro Panorama | China's stocks regain footing after Evergrande blow

#Evergrande, #Evergrande debt, #markets, #MC Pro Panorama, #Moneycontrol Pro Panorama, #Newsletter, #opinion, private sector capex recovery story, Read our take, Tech Mahindra, ICICI General Insurance, Infosys

Source: AFP

Dear Reader,

The Panorama newsletter is sent to Moneycontrol Pro subscribers on market days. It offers easy access to stories published on Moneycontrol Pro and gives a little extra by setting out a context or an event or trend that investors should keep track of.

China’s stock markets opened for trading after being shut on Monday and Tuesday for a local holiday. Investors in other markets, meanwhile, had reacted to fears of a contagion effect if China’s largest property developer Evergrande defaulted on bond payments due this week. The spillover effect on other property developers, China’s economy, and commodity and capital markets are feared to be severe if that happens.

But China’s markets were relatively calm today. The country’s central bank injected liquidity support worth $18.6 billion which may have soothed frayed nerves. Evergrande also announced it would meet a September 23 deadline to pay a $35.9 million coupon payment on a yuan-denominated bond, according to Reuters. If it is also able to pay a bigger $83.5 million payment on a dollar-denominated bond due on September 24, then that could calm markets further.

Evergrande’s problems are part of a larger problem that China’s property sector is facing, of uncontrolled growth, read about why this growth template has run its course in today’s FT selection (free for Pro subscribers). While the focus may be on near-term events at present, the longer term is likely to see turmoil in China’s property sector continue.

Meanwhile, the Federal Open Market Committee (FOMC) will wrap up its deliberations today. Investors will want to see if tapering will begin in November or earlier, and whether the chances of an earlier than interest rate hike have risen. They will also get a sense of how the Fed is looking at the delta variant as a threat to growth and if their position on the growth versus inflation question has changed.

Between what’s happening in China and the Fed’s position, it promises to be an action-packed week for market watchers.

In today’s edition, we write about why the private sector capex recovery story is not as bright as some think. While the revival in consumption demand is expected to spur companies to invest, the data suggests there is some way to go before companies become confident enough to kick-start investments. Do read.

A crunch in the availability of shipping containers is putting strain on exports, not just by lengthening shipment times but also in higher freight costs. While institutional steps to tweak the supply chain and ease availability can be taken, is there another way out? Read our take.

Investment insights from our research team:

What else are we reading today?

Technical Picks: Tech MahindraICICI General Insurance and Infosys (These are published every trading day before markets open)

Ravi Ananthanarayanan

Moneycontrol Pro

Internet Explorer Channel Network
News Related

OTHER NEWS

Navin Fluorine Consolidated September 2021 Net Sales at Rs 338.96 crore, up 6.28% Y-o-Y

Reported Consolidated quarterly numbers for Navin Fluorine International are: Net Sales at Rs 338.96 crore in September 2021 up 6.28% from Rs. 318.92 crore in September 2020. Quarterly Net Profit ... Read more »

L&T Technology Consolidated September 2021 Net Sales at Rs 1,607.70 crore, up 22.37% Y-o-Y

Reported Consolidated quarterly numbers for L&T Technology Services are: Net Sales at Rs 1,607.70 crore in September 2021 up 22.37% from Rs. 1,313.80 crore in September 2020. Quarterly Net Profit ... Read more »

NELCO Consolidated September 2021 Net Sales at Rs 61.22 crore, up 15.03% Y-o-Y

Reported Consolidated quarterly numbers for NELCO are: Net Sales at Rs 61.22 crore in September 2021 up 15.03% from Rs. 53.22 crore in September 2020. Quarterly Net Profit at Rs. ... Read more »

Relic Life Scie Consolidated September 2021 Net Sales at Rs 0.48 crore, up 30.17% Y-o-Y

Reported Consolidated quarterly numbers for Relic Life Science are: Net Sales at Rs 0.48 crore in September 2021 up 30.17% from Rs. 0.37 crore in September 2020. Quarterly Net Profit ... Read more »

ICICI Prudentia Consolidated September 2021 Net Sales at Rs 769.11 crore, up 23.5% Y-o-Y

Reported Consolidated quarterly numbers for ICICI Prudential Life Insurance Company are: Net Sales at Rs 769.11 crore in September 2021 up 23.5% from Rs. 622.75 crore in September 2020. Quarterly ... Read more »

Sonata Consolidated September 2021 Net Sales at Rs 963.18 crore, up 19.83% Y-o-Y

Reported Consolidated quarterly numbers for Sonata Software are: Net Sales at Rs 963.18 crore in September 2021 up 19.83% from Rs. 803.77 crore in September 2020. Quarterly Net Profit at ... Read more »

Shakti Pumps Consolidated September 2021 Net Sales at Rs 369.02 crore, up 83.51% Y-o-Y

Reported Consolidated quarterly numbers for Shakti Pumps (India) are: Net Sales at Rs 369.02 crore in September 2021 up 83.51% from Rs. 201.09 crore in September 2020. Quarterly Net Profit ... Read more »

ING is third big bank to compensate customers over interest rates

Photo: Wikimedia Commons ING has become the third of the big Dutch banks to say it will compensate customers who paid too high interest rates on some variable loans. The ... Read more »

Xiaomi reportedly preparing to mass-produce its electric cars in 2024

Photo by: Christian Salas/Unsplash Xiaomi Corp. is gearing up to sell its own electric cars, and the company revealed the schedule for mass production was earlier than expected. The Chinese ... Read more »

Concord Drugs Standalone September 2021 Net Sales at Rs 9.86 crore, down 40.49% Y-o-Y

Reported Standalone quarterly numbers for Concord Drugs are: Net Sales at Rs 9.86 crore in September 2021 down 40.49% from Rs. 16.57 crore in September 2020. Quarterly Net Profit at ... Read more »

Kreon Fin Serv Standalone September 2021 Net Sales at Rs 0.79 crore, up 125.11% Y-o-Y

Reported Standalone quarterly numbers for Kreon Finnancial Services are: Net Sales at Rs 0.79 crore in September 2021 up 125.11% from Rs. 0.35 crore in September 2020. Quarterly Net Profit ... Read more »

Relic Life Scie Standalone September 2021 Net Sales at Rs 0.48 crore, up 30.17% Y-o-Y

Reported Standalone quarterly numbers for Relic Life Science are: Net Sales at Rs 0.48 crore in September 2021 up 30.17% from Rs. 0.37 crore in September 2020. Quarterly Net Profit ... Read more »

Navin Fluorine Standalone September 2021 Net Sales at Rs 324.44 crore, up 5.44% Y-o-Y

Reported Standalone quarterly numbers for Navin Fluorine International are: Net Sales at Rs 324.44 crore in September 2021 up 5.44% from Rs. 307.70 crore in September 2020. Quarterly Net Profit ... Read more »

NELCO Standalone September 2021 Net Sales at Rs 33.28 crore, up 260.95% Y-o-Y

Reported Standalone quarterly numbers for NELCO are: Net Sales at Rs 33.28 crore in September 2021 up 260.95% from Rs. 9.22 crore in September 2020. Quarterly Net Profit at Rs. ... Read more »

ICICI Prudentia Standalone September 2021 Net Sales at Rs 768.55 crore, up 23.52% Y-o-Y

Reported Standalone quarterly numbers for ICICI Prudential Life Insurance Company are: Net Sales at Rs 768.55 crore in September 2021 up 23.52% from Rs. 622.20 crore in September 2020. Quarterly ... Read more »

ICICI Securitie Standalone September 2021 Net Sales at Rs 856.19 crore, up 25.83% Y-o-Y

Reported Standalone quarterly numbers for ICICI Securities Ltd. are: Net Sales at Rs 856.19 crore in September 2021 up 25.83% from Rs. 680.45 crore in September 2020. Quarterly Net Profit ... Read more »

Arfin India Standalone September 2021 Net Sales at Rs 132.33 crore, up 73.11% Y-o-Y

Reported Standalone quarterly numbers for Arfin India are: Net Sales at Rs 132.33 crore in September 2021 up 73.11% from Rs. 76.44 crore in September 2020. Quarterly Net Profit at ... Read more »

L&T Technology Standalone September 2021 Net Sales at Rs 1,447.30 crore, up 19.82% Y-o-Y

Reported Standalone quarterly numbers for L&T Technology Services are: Net Sales at Rs 1,447.30 crore in September 2021 up 19.82% from Rs. 1,207.90 crore in September 2020. Quarterly Net Profit ... Read more »

Sonata Standalone September 2021 Net Sales at Rs 189.04 crore, down 9.61% Y-o-Y

Reported Standalone quarterly numbers for Sonata Software are: Net Sales at Rs 189.04 crore in September 2021 down 9.61% from Rs. 209.14 crore in September 2020. Quarterly Net Profit at ... Read more »

ACC Standalone September 2021 Net Sales at Rs 3,748.90 crore, up 5.98% Y-o-Y

Reported Standalone quarterly numbers for ACC are: Net Sales at Rs 3,748.90 crore in September 2021 up 5.98% from Rs. 3,537.31 crore in September 2020. Quarterly Net Profit at Rs. ... Read more »

Tata Steel BSL Standalone September 2021 Net Sales at Rs 8,308.72 crore, up 50.54% Y-o-Y

Reported Standalone quarterly numbers for Tata Steel BSL Limited are: Net Sales at Rs 8,308.72 crore in September 2021 up 50.54% from Rs. 5,519.40 crore in September 2020. Quarterly Net ... Read more »

ICICI Securitie Consolidated September 2021 Net Sales at Rs 856.37 crore, up 25.81% Y-o-Y

Reported Consolidated quarterly numbers for ICICI Securities Ltd. are: Net Sales at Rs 856.37 crore in September 2021 up 25.81% from Rs. 680.68 crore in September 2020. Quarterly Net Profit ... Read more »

Shakti Pumps Standalone September 2021 Net Sales at Rs 356.55 crore, up 85.63% Y-o-Y

Reported Standalone quarterly numbers for Shakti Pumps (India) are: Net Sales at Rs 356.55 crore in September 2021 up 85.63% from Rs. 192.08 crore in September 2020. Quarterly Net Profit ... Read more »

ITC corrects 6% after 26% rally. What should investors do now?

A seven-session rally, the market faced a drag from ITC off its record peak on Tuesday. It was perhaps the news of health ministry reviewing the taxation structure for tobacco products ... Read more »

Metal stocks turn volatile as China pledges to contain coal prices

The Indian stock market after trading flat in the morning session has slipped into the red amid volatility. Sensex is down 348.23 points, or 0.56%, to 61,367.82 and the Nifty ... Read more »

Buy Nestle India Ltd; target of Rs 22,395: Sharekhan

In Q3CY2021, Nestle India (Nestle) registered mixed performance with revenues growing by ~10% to Rs. 3,865 crore while PAT grew by 5% to Rs. 617.4 crore (due to a 52 ... Read more »

Buy Hindustan Unilever Ltd; target of Rs 3185: Sharekhan

buy_98315393 Hindustan Unilever Limited’s (HUL) Q2FY2022 operating performance was in-line with expectation with domestic revenue, growing by 11% to Rs. 12,724 crore, while PAT growth was moderate at 6% to ... Read more »

ING will compensate customers who have paid too much interest

ING will compensate customers who have paid too much interest on certain loans. The bank reported this on Wednesday. This concerns so-called consumer loans with a variable interest rate, such ... Read more »

Burberry goes shopping for British Versace boss Akeroyd to succeed Gobbetti

Investors give a positive reaction to the appointment which will not take effect until April next year under the terms of Mr Akeroyd's contract at Versace. Read more »

Buy L&T Technology Services; target of Rs 5900: Sharekhan

L&T Technology Services (LTTS) delivered yet another strong quarter beating estimates on all fronts, with healthy improvement in EBIT margins, client additions, offshoring revenue mix and free cash flows (FCF). ... Read more »

Buy ICICI Prudential Life Insurance; target of Rs 780: Motilal Oswal

IPRU posted ~35% YoY growth in new business APE, led by healthy trends in the Annuity segment (~67% YoY), while ULIP growth bounced back strongly (~44% YoY). Protection growth was ... Read more »

ING also compensates customers who paid too much variable interest

ING will compensate customers who have paid too much variable interest on their revolving credit. Rabobank (for more than 200,000 customers) and ABN Amro (for 150,000 customers) previously announced a ... Read more »

17 fundas impermeables y resistentes para proteger los muebles del jardín

© EL PAÍS Seleccionamos una variedad de fundas protectoras para proteger el mobiliario del jardín. Con la llegada del otoño y la bajada de temperaturas es indispensable poner a buen ... Read more »

Shimao's unit taps a jittery capital market in a surprise plea for funds, sending nervous investors heading for the exit

Shimao Services Holdings, the management unit of one of China’s largest property developers, is tapping the capital market for funds, a plan that surprised investors who are already jittery over ... Read more »

China's billionaire Jack Ma on first trip abroad after crackdown on Alibaba

Jack Ma Jack Ma, China’s billionaire and founder of e-commerce giant Alibaba, has travelled to Europe for an agriculture study tour, his first trip abroad since he ran into trouble ... Read more »

Co-working 3.0: Hybrid office model becomes the new normal

The future workplace will not be binary. It will be a mixture of several workplace formats, with co-working riding growth in the new normal. In the pre-pandemic era, if a ... Read more »

S. Korea's 'Anti-Google' law reportedly not effective

Photo by: Photo Mix/Pixabay South Korea was the first country to pass a law to stop Google and Apple from forcing developers and users of their app stores to use ... Read more »

CredAble raises $30 million in funding from Plutus Wealth, Oaks Asset Management

Representative image Fintech firm CredAble on Wednesday said it has raised USD 30 million (about Rs 225.4 crore) in a Series B funding round, co-led by Plutus Wealth Management LLP ... Read more »

Fragmented terminal model poses a challenge to airlines; may impair India's emergence as a hub

On Wednesday, October 20, Mumbai’s Chhatrapati Shivaji Maharaj International Airport was to restart operations at its Terminal 1 (T1). In July, Delhi’s Indira Gandhi International Airport restarted operations at T2 ... Read more »

High raw material costs colors result Akzo: paint price up

In addition to higher raw material prices, AkzoNobel also faces problems in the supply of products. The cost increase of raw materials and the problems in the supply chain will ... Read more »