ADANI VS HINDENBURG
Hindenburg reply To Adani:
Fraud Cannot Be Obfuscated by Nationalism Or A Bloated Response That Ignores Every Key Allegation We Raised.

On January 24th, we released a report outlining numerous issues of suspected fraud at the Adani Group, the 2nd largest conglomerate in India run by the world’s then-third richest man.

Hours ago, Adani released a ‘413-page response’. It opened with the sensationalistic claim that we are the “Madoffs of Manhattan”. [1]

Adani also claimed we have committed a “flagrant breach of applicable securities and foreign exchange laws.” Despite Adani’s failure to identify any such laws, this is another serious accusation that we categorically deny. Click to Read complete reply of Hindenburg

>>Adani Enterprises FPO To Be Fully Subscribed On Institutional Demand: Group CFO Singh says there could be some impact to the retail participation as the current market price is below the FPO price band.
The Adani Group is confident of its flagship firm’s follow-on public offering getting fully subscribed even as the conglomerate responded in detail to Hindenburg Research’s accusations, alleging that the report of the U.S.-based firm is unsubstantiated and misleading. The FPO will be fully subscribed backed by institutional investors, Jugeshinder Singh, chief financial officer at Adani Group.

#SGX Nifty, as on 30 Jan 2023, 8.00 AM (IST)
Last Trade: 17714 Change (+) 24.50
>>Stocks in the Asia-Pacific traded mixed on Monday as mainland Chinese markets jumped on resuming trade after a week-long New Year break.
Chinese onshore equities are headed for a bull market — the CSI 300, which tracks the largest mainland-listed stocks, have gained more than 20% from its recent lows seen at the end of October last year.

>>European markets closed marginally higher Friday after U.S. economic data came in stronger than expected and with a slew of rate hike decisions due next week. The pan-European Stoxx 600 index closed 0.3% higher. Autos gained 1.1% as mining and food and beverage stocks fell 0.6%.

# MSCI is closely monitoring the factors that may impact the eligibility of Adani securities.

“MSCI is closely monitoring publicly available information regarding the situation and the factors that may impact the eligibility of those relevant securities for the MSCI Global Investable Market Indexes,” it said in a statement.

Adani Group did not immediately respond to Reuters request for comment. It has dismissed the Hindenburg report as baseless and said it was considering whether to take legal action against the New York-based firm.

India’s capital markets regulator is studying the Hindenburg report as it may help its own probe into offshore fund holdings of Adani Group, Reuters reported on Friday.

Billionaire US investor Bill Ackman on Thursday described the Hindenburg report “highly credible and extremely well researched”.

# Adani FPO on Track. No change in price or other terms
Adani Enterprises on Saturday said its follow-on public offer (FPO) will continue as per schedule without any changes in the price band, quelling speculation about changes being made after a tepid investor reception on the first day.

# Not much risk to Indian banking system from Adani Group: CLSA

Global broking and research firm CLSA in its research report dated January 26, said it sees no significant downside risk to Indian banks from Adani group debt, in which the overall exposure for domestic public and private sector lenders remains well within the mangeable limits with adequate ring fencing.

Citing lower share of banks in the Adani group’s total debt of around Rs 2 trillion, CLSA said that while Adani’s debt levels have doubled from Rs 1 trillion or Rs 1 lakh crore to Rs 2 trillion or Rs 2 lakh crore in the past three years, bank debt has increased by more than 25%. Most of the incremental funding to the group for new businesses and acquisitions has come via overseas sources,” the report added. Large acquisitions, such as ACC NSE -17.33 % and Ambuja cements NSE -17.33 %, have been fully funded by foreign banks, it said.

“Indian banking exposure is less than 40% of total group debt,” CLSA said in its report. Within this, private banks’ exposure is below 10% of total group debt and most banks have indicated that they have largely financed assets with strong cash flows, such as airports/ports,” it said.

“PSU banks do have material exposure (30% of group debt) but this debt has not increased in the past three years. The share of bank debt in overall group debt has reduced materially and CLSA estimates that incrementally banks have only lent Rs 150 billion, or Rs 15,000 crore or 15% of the Rs 1 trillion the group companies have borrowed over the past three years.

# Adani Group’s Presentation submitted to BSE & NSE, in response to Hindenburg Report,
In a letter to BSE & NSE ltd, Adani Enterprises ltd has submitted a Presentation covering Adani Group’s response to Hindenburg Report, which states as under:
Further to our media statements, please find enclosed herewith Presentation covering Adani Group’s response to Hindenburg Report with respect to Adani Group listed entities.
The same is uploaded on the weblink.. click https://www.adani.com/-/media/Project/Adani/Invetsors/Adani%20Portfolio%20January%202023%20Gl
obal%20Call%20Short%20Seller%20Response

# SEBI to increase monitoring of Adani Group following Hindenburg report.

According to the sources, India’s market regulator: SEBI has decided to keep a closer eye on Adani Group, after the group was accused of market manipulation and accounting fraud by research firm Hindenburg.

The move comes at a time when Adani’s stocks have crashed more than 20 per cent on Friday 27 th January 2023, since the report was made public.

#SGX Nifty, as on 27 Jan 2023, 8.30 AM (IST)
Last Trade: 18012 Change (+) 59
>>Stocks in the Asia-Pacific traded higher on Friday as Wall Street’s major indexes gained after the U.S. economy grew more than expected. Government data showed the economy expanded at an annualized rate of 2.9% during the fourth quarter, higher than expectations.
>>European markets advanced on Thursday, building on positive momentum seen in the previous trading session.

The pan-European Stoxx 600 closed up by 0.4%, with retail stocks adding 2.2% to lead gains as most sectors and major bourses finished in positive territory. Food and beverage stocks bucked the trend to slide 1.8%.

Markets have been buoyed by data this week showing improved business sentiment in Germany and an uptick in euro zone services and manufacturing activity, prompting optimism that a recession in the region might be avoided.

>>Nasdaq rises after strong GDP report, Tesla jumps 8%. Read More

 

Maruti Suzuki Q3 Profit zooms 130% & revenue up 25%

Maruti Suzuki has declared 129.55 per cent jump in its consolidated net profit for quarter ended December 2022 at Rs 2,391.5 crore as compared to Rs 1,041.8 crore in the same quarter previous year.

The total revenue from operations moved up to Rs 29,057.5 crore, up by 24.96 percent from Rs 23,253.3 crore in the corresponding quarter a year ago.

The company sold a total of 4,65,911 vehicles during the quarter, up 8.2 percent YoY with Sales in the domestic market at 4,03,929 units and exports at 61,982 units. Pending customer book of about 3,63,000 vehicles at the end of the quarter out of which about 1,19,000 orders were for newly launched models.

Profit growth was driven by higher sales and fall in raw material cost. EBIT margin of the company also improved 350 basis points year on year (YoY) to 7.6 percent. Profit margin improved 380 basis points YoY to 8.4 percent.

The share price of Maruri Suzuki is up by 1 percent at Rs 8528.65 following the announcement of Q3 results.

HDFC AMC announced profit at Rs 369.4 crore for the October-December FY23,quarter registering 2.7 percent y-o-y growth.The standalone profit for quarter ended December FY22 was at Rs 359.75 crore.

Revenue from operations on a standalone basis in Q3FY23 stood at Rs 559.56 crore for the quarter , upby 1.8 percent compared to similar period last fiscal

Operating profit was steady year-on-year at Rs 397.4 crore. Other income for the quarter at Rs 103.37 crore increased by 20 percent over corresponding period in previous financial year.

HDFC AMC’s market share has been stable during the past one year on a total asset under management basis. The AMC reported a mere 3 percent growth in its AUM. The biggest upset created on its AUM growth is due to debt funds where AUM shrank 23 percent for the fund house.

24 Jan 2023 @ 2.44 pm
Real Estate Future Sentiment Score notches up in optimistic zone: Knight Frank

The 35th edition of the Knight Frank-NAREDCO Real Estate Sentiment Index Q4 2022 (October – December 2022) report cited that the Current Sentiment Score has moderated from 61 in Q3 2022 to 59 in Q4 2022, mainly on account of a bleak global economic scenario and geopolitical risks due to the prolonged Russia-Ukraine war. However, the continued resilience of the Indian economy and of the real estate industry has influenced an upward movement in the Future Sentiment Score. The Future Sentiment Score has increased from 57 in Q3 2022 to 58 in Q4 2022.

JSPL interested in buying strategic stake in Steel Exchange India?

Jindal Steel & Power (JSPL) is in talks to pick up a strategic stake in Steel Exchange India (SEIL), which is looking for strategic investors in an additional equity deal. Jindal Steel and Power Limited is an Indian steel company based in New Delhi. JSPL is a part of OP Jindal Group. In terms of tonnage, it is the third largest private steel producer in India and only private player in India to produce rails.
JSP domestic steel business produces economical and efficient steel through backward and forward integration. The Company owns and operates state-of-the-art facilities in Chhattisgarh, Odisha and Jharkhand.
JSPL is currently quoted at Rs. 600 at NSE whereas the Steel Exchange India is available at Rs. 15.25 and is available at PE multiple of 9.93. The promoters hold 49.78% holding as on December 31, 2022, and 91.81 of the holding is under pledge. The negotiations if successful, it will prove beneficial for both the companies.

Dow rises 300 points; Nasdaq jumps 1% as investors weigh next Fed rate move. Stocks rose Monday as investors contemplated a potential slowdown in rate hikes from the Federal Reserve and braced for a busy week of earnings.

Investors have begun weighing the possibility that the Fed is preparing to slow the pace of its inflation-fighting rate hikes after months of aggressive tightening. Economic data released last week showed a decline in wholesale prices and retail sales.

Markets have priced in a 99.7% chance of a 25-basis point hike, according to CME Group data, which would bring the interest rate to a targeted range of 4.5%-4.75%.

>Axis Bank Q3 results..standalone profit after tax up 62 percent year-on-year to Rs 5,853 crore for the quarter ending December.      Study the results in depth

>IDBI Bank Q3 results.. reported a 60 percent jump in net profit for the quarter ended December 31, 2022, to Rs 927 crore.        Study the results in depth