Stock market live updates: Anand Rathi, Yes Securities give BUY rating to Federal Bank

Stock market live updates: Yes Securities gives ADD recommendation to ICICI Lombard

Sluggishness in the Motor segment was driven by ICICIGI focusing on the profitable sub-segments within the space: Motor segment grew 4.7% YoY within which, Motor TP has grown 10.1% YoY whereas, Motor OD has de-grown -0.9% YoY. The Motor segment growth is sluggish since ICICIGI continues to focus on profitable segments within the space. The market remains competitive in the private car space whereas, 2W and CV are relatively more profitable. The overall combined ratio of the motor industry is 124% and,while the company did not anticipate this competitive intensity, it did not make sense for it to pursue such business at this point in time.

Govt can give hard push to Sukanya Samriddhi Yojana: SBI report

GoI can give a hard push to SSY (Sukanya Samriddhi Yojana), through encouraging fresh registrations in a mission drive mode, allowing one time registrations for all leftover cases up to 12 years. A smooth borrowing program would require the RBI to issue papers by matching the profile of redemption of Government paper. A demand for the mid segment has to be created to keep the pressure off the 10-year segment by doing OMO in the mid-segment. Historically, during the rate easing cycle (2015-mid 2018), the spread between the repo and G-sec averaged to 70 bps, thus with terminal repo rate expected at 6.5%, 10 year G-sec yield could decline to 7.1%-7.20%, said SBI report.        

Fiscal deficit for FY24 likely to be set close to 6.0% of GDP: SBI report

With higher tax devolution from the Centre, the states are likely to borrow around Rs. 8 lakh crore in FY23, lower than earlier anticipated. In FY24, the overall gross borrowing by Centre and States is likely to be Rs. 24.3 lakh crore (Rs. 22.2lakh crore in FY23) and net borrowings Rs. 17.0 lakh crore (Rs. 16.7 lakh crore in FY23). We further believe that the Government will continue to rely on small saving schemes (Rs. 5 lakh crore likely in FY24, said SBI report.        

Fiscal deficit for FY24 likely to be set close to 6.0% of GDP: SBI report

Thus, fiscal deficit for FY24 is estimated at around Rs. 17.95 lakh crore or 6.0% of GDP in FY24, thereby resulting in fiscal consolidation of 40 bps from the current fiscal. As far as borrowing is concerned, we believe net market borrowing of the Centre in FY24 will be around Rs. 11.7 lakh crore and with repayments of Rs. 4.4 lakh crore, gross borrowing are expected at Rs. 16.1 lakh crore. We believe switch of ~Rs 50,000 crore is also likely to be announced, said SBI report.        

Fiscal deficit for FY24 likely to be set close to 6.0% of GDP: SBI report

In FY24, we assume the Government expenditure is likely to increase by around ~8.2% over FY23 estimates to Rs. 46.0 lakh crore. Subsidy bill which increased significantly in FY23 is estimated to be reduced in FY24 to around Rs. 3.8-4.0 lakh crore and capital expenditure is expected to grow by 12%. Meanwhile, receipts (minus borrowing and other liabilities) are expected to grow by ~12.1% with tax revenue receipts growth likely at 11.0%. With nominal GDP growth at 10%, tax buoyancy is thus expected at close to 1.1 compared to expected tax buoyancy of 1.5 in FY, said SBI report.        

Fiscal deficit for FY24 likely to be set close to 6.0% of GDP: SBI report

For FY23, total receipts of the Government would be higher than BE by around Rs. 2.3 lakh crore, on account of higher direct tax receipts (~Rs. 2.2 lakh crore), higher GST receipts (Rs. 95,000 crore) but lower dividends (~Rs. 40,000 crore), lower fuel tax net of cess (Rs. 30,000 crore) and lower disinvestment receipts (~Rs. 15000-20,000 crore). Meanwhile, expenditure is likely to be on the higher side of the BE by around Rs. 3 lakh crore on account of higher subsidy bill and additional spending announced by the Government. Taking this into account, fiscal deficit of the Government in FY23 is expected to come at Rs. 17.5 lakh crore. However, higher nominal GDP growth (15.4%) estimates will help in keeping the fiscal deficit at 6.4% of the GDP, said SBI report.        

Fiscal deficit for FY24 likely to be set close to 6.0% of GDP: SBI report

The budget FY24 presents a challenge before the Government to stick to the road map for fiscal consolidation, amidst a global environment of declining inflation. For India, this could make things difficult to set a nominal GDP number significantly higher than 10%, with a deflator ~3.5%. But this could also mean a higher GDP growth than anticipated at ~6.2, said SBI report.        

Stock market live updates: Yes Securities gives BUY rating to Federal Bank

We maintain ‘Buy’ rating on FED with a revised price target of Rs 185: We had flagged FED as one of our top 3 bank picks in our Sector Initiation Report dated June 2021. We value the standalone bank at 1.5x FY24 P/BV for an FY23E/24E/25E RoE profile of 14.4/15.2%/15.7%. We assign a value of Rs 8.7 per share to the subsidiaries, on SOTP, says Yes Securities 

Stock market live updates: Yes Securities gives BUY rating to Federal Bank

Reco : BUY
CMP : Rs 140
Target Price : Rs 185
Potential Return : 32%

Stock market live updates: Anand Rathi gives BUY rating to Federal Bank

Key financials of Federal Bank

Stock market live updates: Anand Rathi gives BUY rating to Federal Bank

Our Jan’24 sum-of-parts target price (1.3x FY25e book value, Rs 10 a share for Fedfina and IDBI-Federal Life) works out to Rs180 a share. Risk: Lumpy slippages from the corporate book, says brokerage Anand Rathi

Stock market live updates: Anand Rathi gives BUY rating to Federal Bank

Higher margins and fee income led to a ~12% sequential increase in core operating profits for Federal Bank. The strong operating performance and benign credit cost (38bps) led to the better RoA. Asset quality was stable. Given the bank’s strong liability franchise and capitalisation, it is set to gain market share in the near term. We maintain our positive view on it, with a Rs180 target price, valuing it at 1.3x P/ABV on its FY25e book, says brokerage Anand Rathi

Stock market live updates: Anand Rathi gives BUY rating to Federal Bank

Rating: Buy
Target Price: Rs.180
Share Price: Rs.140

Stock market live updates: FIIs net sellers 

Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Monday as they offloaded shares worth Rs 750.59 crore, according to exchange data.

Stock market live updates: Sensex trades higher

In the domestic equity market, the 30-share BSE Sensex was trading 280.06 points or 0.47 per cent higher at 60,373.03. The broader NSE Nifty advanced 44.90 points or 0.25 per cent to 17,939.75.

Stock market live updates: Brent crude futures advances

Brent crude futures, the global oil benchmark, advanced 0.19 per cent to USD 84.62 per barrel.

Stock market live updates: Rupee falls 31 paise to 81.89 against US dollar

At the interbank foreign exchange, the domestic unit opened weak at 81.79 against the dollar, then fell to 81.89, registering a decline of 31 paise over its last close. In the previous session on Monday, the rupee settled at 81.58 against the US dollar.

Stock market live updates: Rupee falls 31 paise to 81.89 against US dollar

Rupee depreciated 31 paise to 81.89 against the US dollar in early trade on Tuesday weighed down by a rebound in American currency and firm crude oil prices.