Asian share markets slipped today as traders reined in expectations of Federal Reserve interest rate cuts following fresh signs of US economic resilience.In US markets, Wall Street’s main indexes closed lower on Friday, with the S&P 500 and Nasdaq notching their biggest one-day losses in two weeks, on concerns about slower interest-rate cuts and as investors reacted to cabinet picks by US President-elect Donald Trump.Back home, Indian share markets are trading on a negative note.Benchmark indices Sensex and Nifty slipped as the session progressed as Reliance and IT stocks came under pressure.Selling was also driven by concerns over slowing earnings growth and foreign outflows.Additionally, comments from the Federal Reserve Chair suggesting a more gradual pace of interest rate cuts further dampened market sentiment.At present, the BSE Sensex is trading lower by 320 points, while the NSE Nifty is trading around 23,440 levels, down 92 points.HDFC Bank and Adani Ports are among the top gainers today.Infosys and TCS, on the other hand, are among the top losers today.Broader markets are trading on a negative note. The BSE Mid Cap index fell 0.2% while the BSE Small Cap index is down 0.5%.Sectoral indices are trading mixed with stocks in the IT sector, energy sector and oil & gas sector witnessing most of the selling.Metal and realty stocks on the other hand are trading in green.Shares of Garware Technical, Indo Tech Trans, and DCM Shriram hit their 52-week high today.The rupee is trading at Rs 84.39 against the US dollar.In commodity markets, gold prices are trading at Rs 74,650 per 10 grams today.Oil prices edged up today after fighting between Russia and Ukraine intensified over the weekend, although concerns about fuel demand in China, the world’s second-largest consumer, and forecasts of a global oil surplus weighed on markets.
Mamaearth Shares Plunge 20%!In news from the E-commerce space, shares of Mamaearth’s parent company, Honasa Consumer, were locked in the 20% lower circuit limit on Monday after the company announced its Q2FY25 earnings on Thursday last week after market hours.The company reported a consolidated net loss of Rs 190 million, compared to a profit after tax (PAT) of Rs 290 million in the year-ago period.
This was due to a one-time inventory correction amid a shift in its distribution model.The company’s revenue from operations stood at Rs 4.6 billion which was down by 7% over Rs 5 bn posted by the Mamaearth brand operator in the corresponding quarter of the previous financial year.The company’s revenue was also down sequentially. In the previous quarter, Honasa Consumer had reported a net profit of Rs 402.5 million while its topline stood at Rs 5.5 bn.Commenting on the performance, Varun Alagh, CEO and Chairman said –
“Over the past few months, we’ve been implementing Project Neev to optimise our distribution model.
In this quarter, we have taken strategic steps towards transitioning from super-stockists to direct distributors in top 50 cities. This transition has impacted our revenue and profits, leading to a slowdown for Mamaearth.”
Adani Green Plans Mega Fundraise
In news from the renewable energy space, Adani Green Energy, India’s largest private sector renewable power company, is looking to raise around US$2 billion in the next few months in multiple tranches through international bonds and loans.The Adani group company will hit the bond market in the next few days with a US$600 million issue. It had called off a US$1.2-billion bond issue last month as investors demanded a higher yield due to geo-political issues then.It had last time given a price guidance for a fixed coupon rate of 7% for the 20-year bond.The fundraising comes as the company will have to start looking at operationalising more capacity in the Khavda project where it is building a 30 GW solar project, claimed to be the world’s largest renewable energy park.About 2.2 GW of the facility has been operationalised till September 2024.Adani Green has an operational portfolio of 11.18 GW and plans to take it to 50GW by 2030. Its revenue in the second quarter grew 20% from a year earlier to Rs 23.1 bn while net profit rose 39% to Rs 4.2 bn.The company’s recent expansions added 2,868 MW, including 2,000 MW of solar and 450 MW of wind.In the last one year, shares of the company have gained over 70%.
While the company has made significant strides in reducing its debt-to-equity ratio through debt repayment, the current ratio of 6.9x remains high.The company’s revenue has grown at a CAGR of 35% in the last five years. It also turned profitable in the financial year 2021 after reporting consistent losses since inception.The company reported strong set of numbers during the last quarter. In September 2024 quarter, the revenue and net profit grew by 37.6% and 41.5% YoY driven by significant greenfield capacity additions and robust operational efficiency.Its vision is to have a portfolio of 50 giga watt of renewable energy by 2030.More By This Author:Sensex Today Ends Marginally Lower; Nifty Holds 23,500Sensex Today Trades Higher; Nifty Above 23,550; Mishra Dhatu Nigam Rallies 8%Sensex Today Tanks 984 Points; Nifty Ends Below 23,600
