Market (Page 100)


While production of continues to be in full swing due to its being an essential commodity, manufaturers are finding it hard to reach consumers at the retail level.


Lack of workers to pick up stock from distributors, transport problems and shortage of packing material are among several factors that have led to branded edible oils struggling to reach retail stores, forcing consumers to opt for unbranded ones.


“Only 20-25 per cent retailers are being reached. This is because While supply chain issues from factory to distributor level have largely been sorted, the wholesalers are not getting labourers to take the stock to retail stores. Moreover, several retailers are also not opening shops and the ones who do, shut early in the day,” said Anghsu Mallick, deputy chief executive officer at Adani Wilmar, which manufactures and ‘Fortune’ brand of in


At a time when there is extreme cautiousness around banking stocks and analysts are downgrading their rating on the sector, not sparing even the frontline names, stands out as an exception. For one, it hasn’t received any downgrade thus far and all analysts have a positive rating (a few have ‘hold’) on the stock, according to Bloomberg polls.


Also, seen in the larger context of one-year price correction, ICICI Bank’s 17 per cent decline fares better than or Axis Bank’s 24 per cent and 45 per cent fall, respectively. That was the last to join 2019’s re-rating party also positions it favourably in the current wave of correction.



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What seems to be blessing in hindsight is that ICICI Bank’s growth rate of around 12


The extension on Tuesday till May 3 will prove to be a bad hangover for liquor companies, even as their stocks bounced back recently amid expectations of some relaxation in rules governing store reopenings/distribution and a sharp fall in valuations.


After falling 26-35 per cent over a month until March, the share price of major liquor players — United Breweries (UBL), United Spirits (USL), and Radico Khaitan — has gained up to 18 per cent in April, outperforming the 4-per cent rise on the Nifty FMCG index. However, there are downside risks, which could play spoilsport for liquor



Besides discretionary consumption, liquor is exposed to the risk of excise duty increases, as many states stare at a large fiscal deficit, following the outbreak.


UBS Securities believes that despite the sharp correction in UBL and USL

The equity market sell-off has taken a heavy toll on the performance of or PMS strategies that cater to high net worth investors (HNIs), with 147 such offerings showing 3-41 per cent a decline in returns in March.

“Equity as an asset class has been battered in March. Strategies where returns have dipped 35-40 per cent can be attributed to concentrated bets in portfolios and exposure to lower-quality companies,” said Kamal Manocha, chief executive officer at PMS AIF World.

According to data sourced from PMS AIF World, several PMS offerings in multi-cap space have fallen more than their respective benchmarks. An analysis of 147 PMS strategies that have reported March returns so far, shows that 89 multi-cap PMS portfolios have fallen more than the benchmark Nifty 500.



This translates into 44.9 per cent of multi-cap investment strategies giving negative returns of more than 24.25 per


In a world where growth is scarce, and top-notch experts are predicting a global recession and sharply cutting India’s GDP growth to multi-year lows, any company offering some stability in earnings is bound to attract investors and command premium valuation. Among the very few to do so is Hindustan Unilever (HUL), India’s largest fast-moving consumer goods (FMCG) company, which has surged 12 per cent in one month, even as the Nifty fell 13 per cent.


HUL is now trading at over 75 times its earnings for trailing 12 months ended December 2019, a 55 per cent premium to its five-year mean and five times higher than the price-to-earnings (PE) valuation of the Nifty50. At these levels, experts say there is a risk to pay such a top-dollar valuation.


Even compared to its parent Unilever, HUL looks richly valued. Ajay Bodke, CEO (PMS), Prabhudas Lilladher,


The has cautioned market intermediaries against malicious cyber attacks amid increased usage of mobile phones and tabs in the wake of the to contain the Covid-19 pandemic.


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Many organisations have switched to work-from-home, due to outbreak of the pandemic, with employees using mobile phones, tabs and personal laptops in order to maintain business continuity.


This has resulted in unprecedented increase in dependency on digital means by many folds and resulting in many operations that may possibly be under remote monitoring mode.