Morning Alert..
* Windfall for govt as RBI transfers record Rs 2.1 trillion for FY24*
The Reserve Bank of India’s (RBI’s) central board met on Wednesday and decided to transfer a record surplus of Rs 2.11 trillion to the government for 2023-24 (FY24) even after increasing the contingent buffer at the peak level of 6.5 per cent. This amount is more than double the Centre’s budgeted figure for dividends from the central bank and other public-sector undertakings (PSUs). The RBI had transferred a surplus of Rs 87,416 crore in FY23. In FY19, after the new economic capital framework (ECF) was adopted as per the Bimal Jalan Committee suggestion, the RBI had transferred a surplus of Rs 1.76 trillion. The ECF devised a method to determine how much surplus the central bank should transfer to the government. Between FY19 and FY22, the RBI maintained the contingent risk buffer (CRB) of 5.5 per cent of its balance sheet due to macroeconomic challenges amid a once-in-a-century pandemic and “to support growth and overall economic activity”, and 6 per cent in FY23.
* Bluechips drive India past $5 trillion market capitalisation milestone*
Bluechips have propelled the domestic market from $4 trillion to $5 trillion.On an absolute basis, the top 100 companies have accounted for 63 per cent of the gains (Rs 51 trillion out of Rs 81 trillion), while firms beyond the top 100 have contributed 37 per cent (Rs 30 trillion). This contrasts with what happened during the market’s journey from $3 trillion to $4 trillion, when the market capitalisation (mcap) pooled in by the top 100 and those beyond 100 was almost equal in absolute terms. Interestingly, in percentage terms, the growth in both top 100 and beyond 100 universes and also the overall mcap from $4 trillion to $5 trillion (in rupee terms) is similar at 25 per cent each. During the 55 per cent jump in mcap (in rupee terms) from $3 trillion to $5 trillion, the market value of the beyond 100 pack had almost doubled, while the top 100 had underperformed with just 41 per cent growth. In the past six months, the outperformance of small- and medium-sized companies vis-à-vis largecaps has narrowed compared to the preceding 18 months. Market experts said this was on the back of the valuation safety provided by larger companies.
* Global market action*
Dow Jones – Down by 0.04% or 15.99 points
FTSE – Down by 0.55% or 46.12 points
CAC – Down by 0.61% or 49.35 points
DAX – Down by 0.25% or 46.56 points
Gift Nifty – Down by 0.17% or 39.00 points
*FII/DII activities*
FII – Sold 686.04Cr worth of shares
DII – Bought 961.91Cr worth of shares.
*Stocks with high delivery Percentage*
Jindal Worldwide Ltd – 88.4%
Craftsman Automation Ltd – 85%
Bayer Cropscience Ltd – 84.8%
Devyani International Ltd – 81.4%
JB Chemicals & Pharma Ltd – 80.9%
*Primary market activities*
Listing today
Go Digit General Insurance Ltd (Main board) – Subscribed 9.6x
*Commodities updates*
Gold – Rs 76215/10gm, Silver – Rs 92950/kg, Brcrude – Rs 6484/barrel, Copper – Rs 894/kg.
*Corporate News*
Sun Pharma Q4 result: Profit up 33% over strong US, specialty sales.
Paytm Q4 results: Loss widens to Rs 549.60 cr, revenue falls 2.6%.
Sundram Fasteners Q4 results: Net profit up 5%, total revenue rises 2%.
* Windfall for govt as RBI transfers record Rs 2.1 trillion for FY24*
The Reserve Bank of India’s (RBI’s) central board met on Wednesday and decided to transfer a record surplus of Rs 2.11 trillion to the government for 2023-24 (FY24) even after increasing the contingent buffer at the peak level of 6.5 per cent. This amount is more than double the Centre’s budgeted figure for dividends from the central bank and other public-sector undertakings (PSUs). The RBI had transferred a surplus of Rs 87,416 crore in FY23. In FY19, after the new economic capital framework (ECF) was adopted as per the Bimal Jalan Committee suggestion, the RBI had transferred a surplus of Rs 1.76 trillion. The ECF devised a method to determine how much surplus the central bank should transfer to the government. Between FY19 and FY22, the RBI maintained the contingent risk buffer (CRB) of 5.5 per cent of its balance sheet due to macroeconomic challenges amid a once-in-a-century pandemic and “to support growth and overall economic activity”, and 6 per cent in FY23.
* Bluechips drive India past $5 trillion market capitalisation milestone*
Bluechips have propelled the domestic market from $4 trillion to $5 trillion.On an absolute basis, the top 100 companies have accounted for 63 per cent of the gains (Rs 51 trillion out of Rs 81 trillion), while firms beyond the top 100 have contributed 37 per cent (Rs 30 trillion). This contrasts with what happened during the market’s journey from $3 trillion to $4 trillion, when the market capitalisation (mcap) pooled in by the top 100 and those beyond 100 was almost equal in absolute terms. Interestingly, in percentage terms, the growth in both top 100 and beyond 100 universes and also the overall mcap from $4 trillion to $5 trillion (in rupee terms) is similar at 25 per cent each. During the 55 per cent jump in mcap (in rupee terms) from $3 trillion to $5 trillion, the market value of the beyond 100 pack had almost doubled, while the top 100 had underperformed with just 41 per cent growth. In the past six months, the outperformance of small- and medium-sized companies vis-à-vis largecaps has narrowed compared to the preceding 18 months. Market experts said this was on the back of the valuation safety provided by larger companies.
* Global market action*
Dow Jones – Down by 0.04% or 15.99 points
FTSE – Down by 0.55% or 46.12 points
CAC – Down by 0.61% or 49.35 points
DAX – Down by 0.25% or 46.56 points
Gift Nifty – Down by 0.17% or 39.00 points
*FII/DII activities*
FII – Sold 686.04Cr worth of shares
DII – Bought 961.91Cr worth of shares.
*Stocks with high delivery Percentage*
Jindal Worldwide Ltd – 88.4%
Craftsman Automation Ltd – 85%
Bayer Cropscience Ltd – 84.8%
Devyani International Ltd – 81.4%
JB Chemicals & Pharma Ltd – 80.9%
*Primary market activities*
Listing today
Go Digit General Insurance Ltd (Main board) – Subscribed 9.6x
*Commodities updates*
Gold – Rs 76215/10gm, Silver – Rs 92950/kg, Brcrude – Rs 6484/barrel, Copper – Rs 894/kg.
*Corporate News*
Sun Pharma Q4 result: Profit up 33% over strong US, specialty sales.
Paytm Q4 results: Loss widens to Rs 549.60 cr, revenue falls 2.6%.
Sundram Fasteners Q4 results: Net profit up 5%, total revenue rises 2%.