Market Update
Europe Movers: Atos, Commerzbank, Crest Nicholson, Dassault Aviation, Filtronic, Kontron, PageGRoup
Inga Muller
15 Jan, 2024
Frankfurt
European markets traded in a tight range with a downward bias after Germany's GDP shrank in 2023 and eurozone industrial activities declined for the third month in a row in December.
The DAX index increased 0.9% to 16,696.72, the CAC-40 index rose 1.1% to 7,469.05, and the FTSE 100 index inched higher by 0.7% to 7,629.48.
The yield on 10-year German bonds edged down to 2.16%; French bonds inched lower to 2.69%; the UK gilts edged down to 3.80%; and Italian bonds decreased to 3.76%.
Europe Stock Movers
Commerzbank AG advanced 1.7% to €11.54 on speculation that the company is in merger talks with Deutsche Bank.
Deutsche Bank declined 0.7% to €11.97.
Dassault Aviation dropped 5.7% to €178.80 after the French aircraft maker delivered fewer than expected aircrafts in 2023.
Rafael aircraft orders in 2023 declined to 60 compared to 92 in 2022 and 23 Falcon aircraft orders were received compared to 64 in the previous year.
Rafael aircraft deliveries decreased to 13 from 14 and Falcon aircraft deliveries eased to 26 from 32 in the previous year.
However, Rafael aircraft backlog at the end of 2023 increased to 211 from 164 and Falcon aircraft order rose to 84 from 87 a year ago.
Atos SE dropped 13.5% to €4.21 after the company said free cash flow is likely to be slightly lower than expected in the second half of the year.
Kontron AG rose 1.6% to €21.60 after the IoT company estimated net income in 2024 to exceed €87 million.
Filtronic Plc increased 3.8% to 21.81 pence after the maker of aerospace and defense infrastructure products won an order from QientiQ, a global defense company.
Crest Nicholson Holdings PLC dropped 5.4% to 206.80 pence after the homebuilder lowered its profit outlook.
PageGroup Plc decreased 2.2% to 446.45 pence after the UK-based recruiting company said current quarter earnings are likely to fall below its estimate on the weak demand.
German Economy Stalled In 2023, Eurozone Industrial Activities Shrank Third Consecutive Month
Bridgette Randall
15 Jan, 2024
Frankfurt
European markets were on the defensive in Monday's trading, and investors reviewed the economic data from Germany and the eurozone.
Benchmark indexes in Frankfurt, Paris, and London declined about 0.3% after Germany's economy contracted in 2023 and wholesale prices fell at a slower pace in December.
Market indexes in Europe are expected to trade in a tight range, and the financial markets are closed on Martin Luther King Day.
In Asia, the Nikkei extended gains by 0.9% to 35,901.79, and the benchmark indexes traded at a new 34-year high on the expectation that the Bank of Japan is not likely to end its ultra-loose monetary policy soon.
Market indexes in Hong Kong and the mainland China declined after the People's Bank of China held its one-year medium-term loan rate at 2.5%, dashing hopes of an unexpected rate cut.
Markets in India inched higher into record territory after investors reacted to positive earnings from domestic corporations, and retail inflation stayed within the range preferred by the Reserve Bank of India.
German Economy Stalled In 2023
The German economy adjusted for inflation and fell by 0.3% in 2023, following a revised 1.8% expansion in 2022, the Federal Statistics Office, or Destatis, reported Monday.
The largest economy in the region faced multiple headwinds as consumers and businesses battled high inflation and rising interest rates, and weak external demand kept export activity growth in check.
Industrial output declined 2%, largely because of weaker production in the energy supply sector; manufacturing output fell 0.4% due to the ongoing weakness in vehicle manufacturing; and construction activities rose 0.2% despite high building costs and elevated interest rates.
Germany's economy at the end of 2023 was larger by 0.7% from its level in 2019, the year before the onset of the pandemic, when the economy plunged 3.8%.
Most service sectors expanded their economic activities in 2023, but economic growth slowed from the previous year.
On the demand side, private consumption adjusted for price declined 0.8%, investment fell 0.3%, and government spending dropped 1.7%, the first decline in 20 years after the government withdrew medical care provided during the coronavirus pandemic era between 2000 and 2022.
German Wholesale Prices Decline Extended to Ninth Month
Germany's wholesale price declined 2.6% from a year ago in December, Destatis said in a separate report released Monday.
The wholesale price declined, slowed from 3.6% in the previous month, and fell for the ninth month in a row.
On a monthly basis, prices fell 0.3% in December after falling at a 0.2% monthly rate in November.
Eurozone Activities Contracted Third Consecutive Month in November
Elsewhere in the region, eurozone industrial activities declined by 0.3% in November, Eurostat reported Monday.
Industrial activities declined for the third month in a row after durable consumer goods output declined at a faster pace of 2.0% compared to 1.0% in October.
The production of non-durable consumer goods output rose 1.2%, matching the same pace in October.
The industrial activities shrank by 6.8% from a year ago and extended the contraction for the ninth month in a row.
Europe Indexes and Yields
The DAX index decreased 0.3% to 16,660.10, the CAC-40 index fell 0.3% to 7,445.31, and the FTSE 100 index inched lower by 0.3% to 7,602.75.
The yield on 10-year German bonds edged up to 2.18%; French bonds inched higher to 2.71%; the UK gilts held steady at 3.80%; and Italian bonds increased to 3.78%.
The euro edged lower to $1.093, the British pound inched lower to $1.271, and the U.S. dollar eased to 85.44 Swiss cents.
Brent crude advanced $0.53 to $77.75 a barrel, and the Dutch TTF natural gas increased by €1.45 to €30.55 per MWh.
Asian Markets Advance, Property Woes Drag China Indexes, DPP Wins Taiwan Presidential Election
Arjun Pandit
15 Jan, 2024
Mumbai
In Asia, Tokyo stock markets hovered near a 34-year high, and the Taiwan Weighted Index advanced 0.4% after the ruling Democratic Progressive Party won the presidential election for the third consecutive time.
William Lai Ching-te won the presidential election on Saturday by winning 40%, or 5.59 million votes, but neither of the three contesting parties won an outright majority in the Legislative Yuan or the governing parliament.
The DPP lost its majority in the 113-member legislative body to 51 seats from 61, and the rival KMT increased its tally by 14 to 52 seats.
Elsewhere in the region, the Hang Seng Index decreased 0.6% to 16,190.59 and the CSI 300 index dropped 0.2% to 3,278.51 after the People's Bank of China held its rates steady and dashed the hopes of a surprise rate cut.
The central bank held its one-year policy rate on medium-term lending facilities at 2.5%, and the central bank injected 216 billion yuan into the financial system via the facility.
Logan Group in Hong Kong traded up 5.5% to HK$0.63 after the struggling developer pledged to cut its total debt load by $3 billion and speed up its debt repayment plan.
Some key creditors agreed to the company's plan to repay offshore debt and a shareholder loan of $8 billion through cash and new securities over a nine-year period.
In Tokyo, the Nikkei index increased 1% to 35,930.42, and in Seoul trading, the KOSPI index declined 0.2% to 35,930.42.
Tech stocks led the gainers in Tokyo trading on the receding hopes of a rate cut by the U.S. Federal Reserve.
India Stocks Advanced On Earnings Optimism, Retail Inflation Accelerated
Stocks in Mumbai looked up after a week of volatile trading amid rising tensions in the Red Sea, and investors reviewed the latest update on inflation and industrial production data.
Consumer price inflation in December accelerated to 5.69%, following 5.55% in October, the statistical agency reported late Friday.
The rise in inflation was driven by elevated food prices following unseasonal rain in several parts of the nation, disrupting food supplies.
Despite the rise, inflation still stayed within the 2%–6% range preferred by the Reserve Bank.
Industrial production plunged to an increase of 2.4% in November from the revised 11.6% rise in October, the statistical agency announced in a separate report on Friday.
The growth in activities in manufacturing, mining, and electricity generation dropped sharply in the month.
The growth in manufacturing activities plunged to 1.2% from 6.7%, mining slowed to 6.8% from 9.7%, and electricity declined to 5.8% from 12.7% in the month a year ago.
India Indexes and Yields
The Sensex index increased 532.73 points to 73,100.68, and the Nifty index rose 140.25 points to 22,034.90.
On the Mumbai stock exchange, 459 stocks traded at their 52-week highs and 12 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds edged up 7.17%, and the Indian rupee edged lower to ₹82.83 against the U.S. dollar.
The gold price increased by 0.4% to ₹62,591 per ten grams, and silver rose by 0.4% to ₹72,770 per kilo.
Crude oil increased by 0.2% to ₹6,204 per barrel, and natural gas fell by 0.7% to ₹263.60 per thermal unit.
India Movers: Avalon Technology, Avenue Supermarts, Goodluck India, Man Industries, HCL Tech, Wipro
Arun Goswami
15 Jan, 2024
Mumbai
Stocks in Mumbai advanced and investors reacted to quarterly results from Wipro, HCL Technology, Infosys, TCS, and Avenue Supermarts.
The Sensex index increased 532.73 points to 73,100.68, and the Nifty index rose 140.25 points to 22,034.90.
On the Mumbai stock exchange, 459 stocks traded at their 52-week highs and 12 stocks traded at their 52-week lows.
Tech services stocks extended gains for the second day in a row after Wipro and HCL reported mixed results but exceeded market expectations.
Infosys jumped 2% to a record intra-day high of ₹1,646.0, and TCS advanced 0.8% to ₹3,914.35.
HCL Technology advanced 2.5% to a record intra-day high of ₹1,579.60 after the company reported quarterly results.
Revenue in the December quarter rose 6.5% from a year ago to ₹28,446 crore, and net profit jumped 6.2% to ₹4,350 crore.
On a sequential basis, revenue increased 6.7% and net profit advanced 13.5%.
Wipro soared 5.9% to ₹492.85 after the company reported quarterly results that were ahead of market expectations.
Net profit in the December quarter declined 12% from a year ago and fell 1.2% from the previous quarter to ₹2,700 crore.
The company also estimated revenue in the March quarter to be between a decline of 1.5% and a rise of 0.5% based on the expectations of new client wins in 2024.
Bharat Heavy Electricals increased 1.8% to ₹200.0 after the company won an order worth ₹15,000 crore to build the Talabira Thermal Power Project from NLC India.
Avenue Supermarts gained 0.5% to ₹3,860.05 after the company reported strong quarterly results on Saturday.
Revenue in the December quarter increased 17.3% to ₹13,572.5 crore, and net profit advanced 17% to ₹690.4 crore.
Goodluck India jumped 2% to ₹1,121.40 after the company's board approved an institutional offering of up to ₹200 crore at an offering price of ₹989.40 per share, a discount of 10% from the Friday's closing price of ₹1,100.50.
Avalon Technology advanced 3.5% to ₹560.95 after the company was awarded a strategic manufacturing partner by the Centre for Development for Advanced Computing, an R&D arm of the Ministry of Electronics and Information Technology.
Man Industries increased 8% to ₹364.70 after the company won new orders worth ₹400 crore, increasing its total orders to be completed in the next six months to ₹1,300 crore.
U.S. Market Averages Power Ahead After Weaker Wholesale Inflation and Bank Earnings
Barry Adams
12 Jan, 2024
New York City
Major averages on Wall Street advanced in early trading on the final trading day of this week, and investors digested the latest earnings results from banks and airlines.
JPMorgan Chase, Citigroup, and Bank of America reported sharply lower earnings from a year ago after banks took hefty charges linked to the regional bank crisis in 2023.
Wells Fargo reported higher earnings, helped by cost-cutting initiatives and higher interest rates compared to the previous year.
Delta Air Lines reported sharply higher earnings on strong travel demand and a record number of passengers paying higher ticket prices for premium services.
The S&P 500 index and the Nasdaq Composite advanced more than 0.4% after lower-than-expected wholesale inflation data.
Producer price index decreased 0.1% from the previous month in December, matching the rate in the previous month, the U.S. Bureau of Labor Statistics reported Friday.
The measure of wholesale inflation rose 1% from a year ago after rising at a 0.8% rate in the previous month.
Core inflation decelerated to 1.8% from 2.0% on an annual basis.
U.S. Indexes and Yields
The S&P 500 index increased 0.4% to 4,798.95, and the Nasdaq Composite rose 0.5% to 15,044.61.
The yield on 2-year Treasury notes decreased to 4.27%. 10-year Treasury notes edged down to 3.99%, and 30-year Treasury bonds eased to 4.21%.
WTI crude oil increased $2.52 to $74.44 a barrel, and natural gas prices increased 8 cents to $3.17 a thermal unit.
Gold increased by $21.79 to $2,048.90 an ounce, and investors debated the future interest rate path.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 102.52.
U.S. Stock Movers
JP Morgan Chase rose 2.1% to $173.75 after the bank reported quarterly results and a rise in adjusted earnings, excluding fees paid to the government tied to the seizures of regional banks.
Revenue in the fourth quarter increased 12% to $39.94 billion, and net income declined 15% to $9.31 billion, or $3.04 per share.
Wells Fargo declined 1.1% to $48.46 despite the bank reporting higher earnings in the fourth quarter, but the bank warned that net interest income in 2024 is likely to be lower than the previous year.
Revenue in the fourth quarter increased 2% to $20.48 billion, and net income rose to $3.45 billion, or 86 cents, from $3.16 billion, or 75 cents, a year ago.
Net interest income in the quarter declined 5% from a year ago to $12.78 billion, and the bank warned that level could decline between 7% and 9% on an annual basis from $52.4 billion in 2023.
Citigroup rose 2.2% to $53.21 after the bank reported a quarterly loss as the company booked charges linked to restructuring, overseas risks, and last year's regional banking crisis.
Revenue in the fourth quarter decreased 3% to $17.4 billion, net income swung to a loss of $1.8 billion from a profit of $3.5 billion, and diluted earnings per share declined to ($1.16) from $1.16 a year ago.
Bank of America decreased 2.7% to $32.25 after the bank reported lower quarterly earnings because of one-time charges assessed by the FDIC and transitioning away from the London Interbank Offered Rate.
Revenue in the quarter increased to $22 billion, net income declined 50% to $3.1 billion from $7.1 billion, and diluted earnings per share dropped to 35 cents from 85 cents a year ago.
The charges in the quarter include a $1.6 billion pre-tax charge to transition away from LIBOR and a special fee of $2.1 billion charged by the Federal Deposit Insurance Corp. to rescue Silicon Valley Bank and Signature Bank.
Delta Air Lines declined 5.5% to $39.92 after the international carrier reported a sharply higher profit but lowered its 2024 outlook.
Operating income in the fourth quarter increased by 6% to $14.2 billion from $13.4 billion, net income soared to $2.03 billion from $828 million, and diluted earnings per share rose to $3.16 from $1.29.
The company guided full-year 2024 earnings to range between $6.0 and $7.0 per share, lower than the previous estimate of at least $7 per share released last year.
Revenue in the first quarter of 2024 is expected to increase between 3% and 6%, and earnings per share between 25 cents and 50 cents.
U.S. Movers: Bank of America, Citigroup, Delta Air Lines, JP Morgan, Wells Fargo
Scott Peters
12 Jan, 2024
New York City
JP Morgan Chase rose 2.1% to $173.75 after the bank reported quarterly results and a rise in adjusted earnings, excluding fees paid to the government tied to the seizures of regional banks.
Revenue in the fourth quarter increased 12% to $39.94 billion, and net income declined 15% to $9.31 billion, or $3.04 per share.
Wells Fargo declined 1.1% to $48.46 despite the bank reporting higher earnings in the fourth quarter, but the bank warned that net interest income in 2024 is likely to be lower than the previous year.
Revenue in the fourth quarter increased 2% to $20.48 billion, and net income rose to $3.45 billion, or 86 cents, from $3.16 billion, or 75 cents, a year ago.
Net interest income in the quarter declined 5% from a year ago to $12.78 billion, and the bank warned that level could decline between 7% and 9% on an annual basis from $52.4 billion in 2023.
Citigroup rose 2.2% to $53.21 after the bank reported a quarterly loss as the company booked charges linked to restructuring, overseas risks, and last year's regional banking crisis.
Revenue in the fourth quarter decreased 3% to $17.4 billion, net income swung to a loss of $1.8 billion from a profit of $3.5 billion, and diluted earnings per share declined to $1.16 from $1.16 a year ago.
Bank of America decreased 2.7% to $32.25 after the bank reported lower quarterly earnings because of one-time charges assessed by the FDIC and transitioning away from the London Interbank Offered Rate.
Revenue in the quarter increased to $22 billion, net income declined 50% to $3.1 billion from $7.1 billion, and diluted earnings per share dropped to 35 cents from 85 cents a year ago.
The charges in the quarter include a $1.6 billion pre-tax charge to transition away from LIBOR and a special fee of $2.1 billion charged by the Federal Deposit Insurance Corp. to rescue Silicon Valley Bank and Signature Bank.
Delta Air Lines declined 5.5% to $39.92 after the international carrier reported a sharply higher profit but lowered its 2024 outlook.
Operating income in the fourth quarter increased by 6% to $14.2 billion from $13.4 billion, net income soared to $2.03 billion from $828 million, and diluted earnings per share rose to $3.16 from $1.29.
The company guided full-year 2024 earnings to range between $6.0 and $7.0 per share, lower than the previous estimate of at least $7 per share released last year.
Revenue in the first quarter of 2024 is expected to increase between 3% and 6%, and earnings per share between 25 cents and 50 cents.
Europe Movers: Airbus, Burberry Group, Energy Stocks, Santhera Pharma, Vistry Group
Inga Muller
12 Jan, 2024
Frankfurt
European markets advanced on the final trading day of the week and extended weekly gains after choppy trading in the previous session.
The DAX index increased 0.9% to 16,696.72, the CAC-40 index rose 1.1% to 7,469.05, and the FTSE 100 index inched higher by 0.7% to 7,629.48.
For the week, the DAX index added 0.8%, the CAC 40 index advanced 0.5%, and the FTSE 100 index edged down 0.8%.
The yield on 10-year German bonds edged down to 2.16%; French bonds inched lower to 2.69%; the UK gilts edged down to 3.80%; and Italian bonds decreased to 3.76%.
Energy companies traded higher after crude oil prices rebounded following the U.S. and U.K. military strikes targeting Houthi rebels in Yemen.
BP plc increased 1.2% to 459.75 pence, and Shell PLC advanced 1.3% to €29.12.
Burberry Group declined 9.2% to 1,235.50 pence after the luxury fashion group issued a profit warning, citing slowing demand.
Vistry Group PLC rose 0.7% to 974.50 pence after the homebuilder said adjusted pre-tax income is likely to surpass its previous estimate and match previous-year results.
The company estimated annual adjusted pre-tax income to be higher than the previous estimate of £410 million and closer to last year's £418.4 million.
The company also guided forward-looking sales of £4.5 billion, higher than £4.0 billion in the previous year.
Airbus SE increased 2.5% to €147.42 after the aviation company reported record aviation airplane orders, driven by large orders from Air India and Indigo and additional orders by Turkish Airlines.
Airbus in 2023 delivered 735 commercial planes to 87 customers around the world, increase of 11% from 661 deliveries in 2022.
Santhera Pharmaceuticals jumped 7.4% to CHF 9.62 after the Swiss biotech company said its product was approved by the UK's health regulator for the treatment of Duchenne muscular dystrophy patients.
European Markets Extend Weekly Gains, France Confirms Inflation Estimate
Bridgette Randall
12 Jan, 2024
Frankfurt
Benchmark indexes in Europe advanced in Friday's trading, and investors overlooked accelerating inflation in the U.S. and rising tensions in the Middle East.
Investors bid up stocks after dovish comments expressed in the European Central Bank's latest economic bulletin, prepared in advance for the December 14 meeting for policymakers and released Friday.
The report noted that the most difficult phase of combating inflation may be behind and added that the central bank is prepared to lower interest rates once inflation is on a sustainable path to 2%.
The euro area GDP growth is expected to slow down to 0.6% in 2023 from 3.4% in 2022, but the growth is expected to rebound to 0.8% in 2024 and stabilize at 1.5% in 2025, the central bank noted in its economic bulletin released Friday.
Overall inflation is expected to average 5.4% in 2023 and continue to decelerate to 2.7% in 2024, 2.1% in 2025, and 1.9% in 2026, the Economic Bulletin from the ECB noted in its latest update.
France Confirms December Inflation Rate
In a separate report, France confirmed its inflation accelerated for the first time in four months in December, as initially estimated in the preliminary data released by the statistical agency INSEE.
Consumer price inflation increased 3.7% from a year ago in December, driven by higher costs of energy and services, and faster than 3.5% in November.
UK GDP Rebounded In November
The UK economy recovered in November after services and manufacturing activities edged higher, the Office for National Statistics reported on Friday.
Real gross domestic product increased by 0.3% from the previous month in November, offsetting the 0.3% decrease in October.
GDP expanded at the fastest pace in five months, powered by a 0.4% increase in service output.
However, over the three months to November, GDP shrank by 0.2%, keeping the worries of a technical recession alive.
Europe Indexes and Yields
The DAX index increased 0.9% to 16,696.72, the CAC-40 index rose 1.1% to 7,469.05, and the FTSE 100 index inched higher by 0.7% to 7,629.48.
The yield on 10-year German bonds edged down to 2.16%; French bonds inched lower to 2.69%; the UK gilts edged down to 3.80%; and Italian bonds decreased to 3.76%.
The euro edged higher to $1.096, the British pound inched higher to $1.275, and the U.S. dollar eased to 85.35 Swiss cents.
Brent crude advanced $1.97 to $79.38 a barrel, and the Dutch TTF natural gas increased by €0.54 to €31.36 per MWh.
Europe Stock Movers
Energy companies traded higher after crude oil prices rebounded following the U.S. and U.K. military strikes targeting Houthi rebels in Yemen.
BP plc increased 1.2% to 459.75 pence, and Shell PLC advanced 1.3% to €29.12.
Burberry Group declined 9.2% to 1,235.50 pence after the luxury fashion group issued a profit warning, citing slowing demand.
Vistry Group PLC rose 0.7% to 974.50 pence after the homebuilder said adjusted pre-tax income is likely to surpass its previous estimate and match previous-year results.
The company estimated annual adjusted pre-tax income to be higher than the previous estimate of £410 million and closer to last year's £418.4 million.
The company also guided forward-looking sales of £4.5 billion, higher than £4.0 billion in the previous year.
Airbus SE increased 2.5% to €147.42 after the aviation company reported record aviation airplane orders, driven by large orders from Air India and Indigo and additional orders by Turkish Airlines.
Santhera Pharmaceuticals jumped 7.4% to CHF 9.62 after the Swiss biotech company said its product was approved by the UK's health regulator for the treatment of Duchenne muscular dystrophy patients.
India Movers: HDFC AMC, Infosys, Mahindra & Mahindra, TCS, Tata Consumer Products, Tata Power
Arun Goswami
12 Jan, 2024
Mumbai
Stocks in Mumbai advanced after TCS and Infosys reported quarterly results that met or surpassed market expectations.
The Sensex index increased 570.02 points to 71,925.24, and the Nifty index rose 176.65 points to 21,688.75.
On the Mumbai stock exchange, 437 stocks traded at their 52-week highs and 6 stocks traded at their 52-week lows.
Infosys gained 7.1% to ₹1,600.80 after the company reported better-than-expected quarterly results.
Revenue in the quarter increased 1.2% to ₹38,821 crore from ₹38,318 crore and net income fell 7.3% to ₹6,106 crore from 6,506 crore, and diluted earnings per share decreased to ₹14.74 from ₹15.70 a year ago.
Tata Consultancy Services advanced 3.8% to ₹3,883.0 after the company reported stronger-than-expected quarterly results.
Revenue in the quarter increased to ₹61,445 core from ₹58,749 crore, profit after-tax rose 2% to ₹11,097 crore from ₹10,883 crore, and diluted earnings per share advanced to ₹30.29 from ₹29.74 a year ago.
Tata Power Company increased 0.8% to ₹360.30 after the company signed a preliminary contract with Gujarat State to develop 10 GW of renewable energy power projects with an investment of up to ₹70,000 crore.
Mahindra & Mahindra decreased 1.4% to ₹1,606.20, and the company said it plans to invest ₹630 crore in Mahindra Electric Automotive Ltd. through the subscription of the upcoming rights issue.
HG Infra Engineering rose 3.5% to ₹916.10 after the company won a 716 crore project from Central Railways.
Tata Consumer Products added 2% to ₹1,141.75 after the company is in advanced talks to acquire Organic India, backed by Fabindia and Capital Foods.
HDFC Asset Management Company decreased 2.2% to ₹3,423.40 after the company reported December quarter profit soared 32% to ₹489.7 crore.
Revenue in the quarter increased to 813.8 crore from 662.9 crore, profit after tax advanced to ₹489.7 crore from ₹369.4 crore, and diluted earnings per share rose to ₹22.91 from ₹17.31 a year ago.
Arvind Ltd increased 2.4% to ₹290.65 after the company said it signed a preliminary agreement to supply advanced uniform fabric to the Indian Navy.
Nikkei Trades at a New 34-year High; China Inflation Declines in the Third Consecutive Month
Arjun Pandit
12 Jan, 2024
Mumbai
Asian markets traded mostly higher on Friday, with Japan's indexes leading the gainers in the region.
The Nikkei index advanced 1.1% to 35,435.04, reaching a new 34-year high on hopes that the Bank of Japan will keep its ultra-loose monetary policy intact, and the yen weakened to 145 against the U.S. dollar.
China's market indexes lacked direction after the release of consumer and producer price inflation and international trade data.
The Hang Seng index inched up 0.03% to 16,307.10, and the CSI 300 index fell 0.2% to 3,290.17.
Consumer and producer prices continued to decline in December, on the back of weak consumer demand and foreign orders.
The consumer price index decreased for the third month in a row and fell 0.3%, while the producer price index declined 2.7% from a year ago, respectively.
China's exports unexpectedly rose 2.3% to $303.6 billion, and imports edged up 0.2% to $228.2 billion, resulting in a trade surplus increase of $75.34 billion.
Weak domestic demand kept overall import growth low.
In 2023, China's exports decreased 4.6% to $3.38 trillion and imports fell 5.5% to $2.56 trillion, resulting in a trade surplus decline of 6% to $820 billion.
Elsewhere in the region, the KOSPI index fell 0.8% to 2,520.49 and the ASX 200 index fell 0.3% to 7,489.20.
India Indexes Advanced After TCS and Infosys Beat Estimates
Stocks in Mumbai opened on a higher note after investors digested a flood of international economic updates and quarterly results from tech services exporters.
The Nifty and Sensex indexes gained 0.3% in early trading after U.S. inflation accelerated in December, but China's consumer prices declined in the month.
Moreover, China's exports and imports rose in December on the back of rising demands for solar cells, electric vehicles, and lithium batteries.
On the domestic earnings front, TCS reported quarterly profit increased 2%, while Infosys net income decreased by 7%.
Investors are looking forward to the release of quarterly results from HCL and Wipro later in the day.
India's inflation and industrial output data are also scheduled to be released later in the day.
Volatile food prices are likely to keep overall inflation high.