Markets inch upwards

Nifty50: 18,633 ▲35 (+0.19%)
Sensex: 62,969 ▲122 (+0.20%)

Howdy, folks!

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Speaking of good fortunes, the markets rose today for the fourth consecutive session. Let's take a look.

• Opening strong, markets extended gains amid volatility to close above 18,600
• In all, 22 of the Nifty50 stocks closed in the green
• India’s quarterly GDP numbers to be announced tomorrow

Among the Nifty sectoral indices, Media (+0.6%) and FMCG (+0.5%) were the top gainers, while Metal (-0.9%) and Auto (-0.2%) were the top losers.

What’s trending

⭐ Adani Transmission’s Q4 profit up

Adani Transmission (-2.6%) reported a net profit of ₹440 crore in Q4FY23, up 85% YoY, from ₹237 crore in the comparable quarter. The profit was supported by a one-time income of ₹148 crore (net off tax ₹122 crore) based on a regulatory order in the Transmission business. The company’s consolidated revenue increased by 17% YoY to ₹3,031 crore, which the company attributes to new transmission lines becoming operational and an uptick in energy consumption.

⭐ NBCC (India) Q4 profit surges

Public sector project management company, NBCC (+0.8%), reported a consolidated net profit of ₹108.4 crore in Q4FY23, up 207% compared to ₹35.3 crore in the corresponding period last year. Its revenue from operations in Q4FY23 stood at ₹2,789.9 crore, up 14.3% YoY from ₹2,441 crore last year. The company’s board has recommended a final dividend of ₹0.54 per share.

⭐ Inox Wind secures 150 MW order

Shares of energy solutions provider, Inox Wind were up 6.3% intraday following the company’s announcement of winning a 150 MW wind power project order from NTPC Renewable Energy. The project is to be executed in Gujarat. With the addition of this order, Inox Wind’s total orders from NTPC stand at 550 MW till date.

⭐ Oil up on U.S. debt deal

Oil prices saw a slight increase in the morning as a response to expectations of a U.S. debt deal, stimulating greater demand. However, concerns about potential interest rate hikes and the likelihood of OPEC+ maintaining output quotas limited the gains. Brent crude futures rose by 0.5% to reach $77.42 per barrel, while US West Texas Intermediate crude rose 0.7%, reaching $73.20 per barrel.

In Focus

How the recession in Germany will impact the Indian economy

Germany, which is the Eurozone's largest economy, entered into a recession as its economic activities contracted by 0.3% during the first quarter of 2023. This is the second consecutive quarter when the country's GDP declined, effectively pushing it into a recession. How will it impact India? Let’s find out. 

Impact on exports 

Economic slowdown in Germany is likely to hit Indian exports to the country. In 2022, India’s exports to Germany amounted to $10.2 billion, concentrated mainly in sectors such as chemicals, machinery, electronics, apparel, footwear and leather goods.

Experts believe that a German recession could reduce India’s exports by at least $2 billion. Moreover, this slowdown could create ripples across the Eurozone, further impacting Indian exports. Around 14% of India's total exports are to European countries.

Impact on investments 

On the flip side, experts believe German investments in India may not be significantly affected. During the recessionary scenario, German companies could seek cheaper alternatives for investments which can lead to minimal effects on FDI inflow. For those who are unaware, Germany is the ninth largest investor in India and has cumulatively invested over $13.6 billion across different sectors.

All in all, the economic slowdown in Germany and the Eurozone is worrisome. To its credit, the German government is taking steps such as financial assistance to businesses to mitigate the recessionary pressure. However, a long-term recession could adversely impact India’s exports.

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