Strong data on US economy fuels bull-run in European and Asian markets


Shares were mostly higher Monday in Europe and Asia after strong data on the U.S. economy sent Wall Street to its best close in six weeks.

Germany’s DAX gained 0.4% to 15,644.08 and the CAC 40 in Paris was up 0.7% at 7,397.31. London’s FTSE 100 edged 0.1% lower to 7,941.38. The future for the S&P 500 gained 0.2% while that for the Dow Jones Industrial Average was up 0.2%.

On Friday, the S&P 500 rose 1.6% to cap its first winning week in the last four as easing yields in the bond market relieved pressure on Wall Street. It’s found some stability following a swift rise and fall to start the year. The Dow industrials climbed 1.2%, while the Nasdaq composite jumped 2%.

In Asian trading Monday, Hong Kong’s Hang Seng index rose 0.2% to 20,603.19 and the Shanghai Composite index lost 0.2% to 3,322.03.

At the annual session of China’s rubberstamp legislature, the government set this year’s economic growth target at around 5% as it tries to rebuild business activity following the end of anti-virus controls that kept millions of people at home.

Chinese leader Xi Jinping has said the priority is an economic revival based on consumer spending after growth sank to 3% last year, its second-lowest level since at least the 1970s. Officials who briefed media Monday about economic planning did not provide fresh or specific policy initiatives to attain that goal.

The slower-than-expected GDP growth target set by the government of around 5% matches our GDP forecast of 5% for this year, ING said in a commentary. The government realizes that a weakening external market would impose challenges to China’s export-related industries.

Tokyo’s Nikkei 225 gained 1.1% to 28,237.78 and the Kospi in Seoul added 1.3% to 2,462.62. The S&P/ASX 200 in Australia added 0.6% to 7,328.60. India’s Sensex climbed 0.9% to 60,324.58 and shares rose in Taiwan. Thailand’s were closed for a national holiday.

have been fluctuating amid uncertainty over where inflation is heading and what the Federal Reserve will do about it.

Wall Street rallied earlier in the year on hopes that cooling inflation would get the Fed to take it easier on its hikes to interest rates. Such increases can drive down inflation by slowing the economy, but they also raise the risk of a recession later on and hurt prices for investments.

Last month, stocks fell after reports on the economy came in hotter than expected. They included data on the jobs market, consumer spending and inflation itself at multiple levels.

The strong data raised concerns about continued upward pressure on inflation. That forced Wall Street to abandon hopes for rate cuts this year and raise its expectations for how high rates would go.

But data released Friday that showed the economy is in better shape than thought was taken as a good sign, calming worries about a possible recession even if it could add to pressure on inflation.

The next move by the Fed on interest rates is scheduled for later this month. Before then, reports on the strength of the job market and on inflation will likely have big impacts on the market and expectations for what the Fed will do.

Last month, it dialed down the size of its rate increases and highlighted progress being made in the battle to get inflation lower. It also earlier suggested just two more increases to rates may be on the way. But the strong reports since then have raised worries that the Fed could not only hike at least three more times but also could dial back up the size of the increases.

In other trading Monday, U.S. benchmark crude lost 39 cents to $79.29 per barrel in electronic trading on the New York Mercantile Exchange. It gained $1.52 to $79.68 per barrel on Friday.

Brent crude, the international pricing standard, lost 49 cents to $85.34 per barrel.

The dollar fell to 135.91 Japanese yen from 135.98 yen late Friday. The euro rose to $1.0646 from $1.0626.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)


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Indian shares extend rally for 2nd time after strong economic data from US


By Bharath Rajeswaran

BENGALURU (Reuters) -Indian shares extended gains for a second session in a row on Monday, after strong economic data from the United States and investment in the Adani group of companies boosted risk appetite.

The Nifty 50 index closed 0.67% higher to 17,711.45, while the S&P BSE Sensex gained 0.69% to 60,224.46.

Eleven of the 13 major sectoral indexes rose, with high weightage financials and information technology adding 0.58% and 1.22%, respectively.

Oil and gas stocks added nearly 2% after the government marginally raised windfall tax on crude oil and slashed tax on diesel in its fortnightly revision over the weekend.

Most of the Adani group stocks advanced, extending gains after U.S. boutique investment firm GQG Partners’ $1.87 billion investment in the conglomerate on Thursday.

The group’s flagship firm Adani Enterprises was the top Nifty 50 gainer, rising 5.45%.

“When you have a credible long-term investor putting in a significant chunk of money into Adani group stocks, it’s a confidence booster,” said Atul Suri, CEO of Marathon Trends – PMS.

Analysts added that Adani group stocks have a “collateral” effect on markets, especially financials, which were hammered earlier due to fear of exposure to the conglomerate.

Financial services stocks had a 37.40% weightage on the Nifty 50 as of Feb. 28.

The rise in domestic equities is also aided by positive U.S. economic data. Investors now await Federal Reserve Chair Jerome Powell’s testimony to the U.S. Congress on Tuesday and Wednesday for cues on the monetary policy trajectory. [MKTS/GLOB]

Among individual stocks, Mahanagar Gas jumped nearly 8.72% after an acquisition worth 5.31 billion rupees ($65 million) while Power Grid rose over 2.3% to a six-week high after two successful project bids.

Indian will be closed on Tuesday, March 7, for a public holiday, and will resume trading on Wednesday, March 8.

($1 = 81.7775 Indian rupees)

(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Eileen Soreng and Janane Venkatraman)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)


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YES Bank share price flat as SBI’s three-year lock-in period ends today


The shares of opened lower on Monday as the three-year lock-in period of the State Bank of India (SBI) ends today. The stock, however, recovered soon and, as of 02:15 PM, was trading 0.06 per cent in the green at Rs 16.87. The lock-in period was set in place by the (RBI) as a part of the bank’s restructuring process.

On Monday, opened at Rs 16.82 per share against the closing price of Rs 16.86 on Friday. In the opening trade, the share price fell 3 per cent to Rs 16.35.

YES Bank’s stock is surrounded by a lot of speculations that the may book at least partial profit, and it may lead to more pressure on the stock. Reuters had reported on March 2 that is looking to trim its stake in the YES Bank.

Moreover, in January, the Bombay High Court quashed YES Bank’s March 2020 decision to write off Rs 8,415 crore of additional tier 1 (AT1) bonds as part of the bailout plan. It said that the Administrator did not have the authority to take such a decision.

SBI, along with other lenders such as ICICI Bank, Axis Bank, IDFC FIRST Bank, Kotak Mahindra Bank, and Housing Development Finance Corp (HDFC) had stepped in to rescue YES Bank in March 2020, after the RBI superseded its board.

SBI, which initially acquired 49 per cent of YES Bank, now holds 26.14 per cent, as reported by Reuters. is still the largest single shareholder in the rescued lender.

However, as per the reconstruction plan, SBI cannot reduce its holding below 26 per cent before the completion of three years from the date of the infusion of the capital.

At the time of the restructuring scheme put in place, the above-mentioned lenders were mandated to hold at least 75 per cent of the shares acquired for three years. A similar restriction was placed on other existing shareholders.

ICICI Bank, Axis Bank, and IDFC FIRST Bank held 2.61 per cent, 1.57 per cent and 1 per cent stakes, respectively, as of end-December. Life Insurance Corporation (LIC) holds 4.34 per cent, while HDFC holds 3.48 per cent.

Moreover, Reuters also said that the board of SBI is likely to meet soon to decide on the future of its stake in Yes Bank, following which a proposal will be sent to the RBI.


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Wonderla scales record high; Imagicaaworld at 52-wk peak, up 44% in 3 days


Shares of recreational service companies like Imagicaaworld Entertainment and were in demand on Monday as they rallied up to 11 per cent on the BSE in the intra-day trade amid heavy volumes and expectations of strong earnings.

Imagicaaworld, which operates Imagicaa – theme park, water park, snow park and a family hotel Novotel Imagicaa Khopoli, hit a fresh 52-week high of Rs 54.90 on zooming 11 per cent on the BSE in intra-day trade. The trading volumes on the counter more-than-doubled with a combined 10.9 million shares having changed hands on the NSE and BSE, till 11:29 am.

In the past three days, the stock has zoomed 44 per cent after the company announced the launch of its Waterpark, Aquamagicaa, in the city of Surat, Gujarat.

Aquamagicaa – Surat is open to guests from March 1, 2023. The park is spread over 4 acres of land in the heart of the Surat city and includes 16 water based rides/ attractions imported from international manufacturers. The company said it intends to extend the high quality service experience that has been enjoyed by more than 11 million guests in the flagship project at Khopoli.

Meanwhile, in the October-December (Q3FY23) quarter, the company reported its best-ever Q3 quarterly earnings before interest, depreciation, tax and amortization (EBITDA) of Rs 32.4 crore against Rs 10.2 crore in Q3FY20 on strong business performance and prudent cost control measures. EBITDA margin improved by a massive 2,460 bps to 43.2 per cent over Q3FY20.

The company first time reported positive profit before tax (PBT) of Rs 7.05 crore in Q3FY23. Total revenue grew 37 per cent to Rs 75.1 crore against Rs 54.9 crore in Q3FY20.

It said the business continues to show an excellent rebound after two years of adverse Covid-19 impact as well as overall improvement in the health of operations.

Meanwhile, shares of hit a new high of Rs 464.35 on rising 3 per cent on the BSE. In the past one week, the stock of the country’s largest amusement park chain has rallied 13 per cent as compared to 1.8 per cent rise in the S&P BSE Sensex.

In Q3FY23, the company had reported a strong 85 per cent year-on-year (YoY) jump in its profit after tax to Rs 38.90 crore given a healthy operational performance.

reported double digit revenue growth across units, driven by robust footfall numbers. In Q3FY23, footfalls for the quarter were 0.92 million as against 0.72 million during Q3FY20.

Revenue from operations increased 71 per cent quarter-on-quarter (QoQ) and 134 per cent YoY to Rs 113.2 crore. The EBITDA came at Rs 56.45 crore, up 190 per cent QoQ and 295 per cent YoY, with EBITDA margin of 33.07 per cent (up 2,045 bps QoQ, and 2,035 bps on a yearly basis).

The management said the significant boost in the number of visitors was due to the increase in domestic tourism, walk-in customers, and the revival of student excursion trips.

“We are happy with the overall business performance during the quarter and growth is expected to continue in the coming quarters. The construction of our new park in Bhubaneswar, Odisha has begun and we aim to open it by 2025,” the management said.


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