Business News

Chandra Shekhar Ghosh, who recently announced he would resign as Bandhan Bank's CEO & MD this July, told ET Now in in a interview that he felt the time was right for him to hang up his boots.He said he took the decision to move on after a look at the bank's performance parameters at the end of the fourth quarter showed very good business momentum. All these parameters were fantastic, Ghosh said explaining his decision to "hand over my bank to a new management team".Talking of his next move, Ghosh informed he would like to go to the holding company as a strategic supporter on the group. While he was running Bandhan, his team was being prepared to handle operations "at any time and anyone's absence", he added.Amid deepening speculations over who succeeds the prominent banker at Bandhan Bank's helm, Ghosh said a searching committee will look at options over the next three months.The searching committee that will be set up will appoint a headhunter, Ghosh said. The process of finding his successor is likely to take some time, he added.As for Bandhan Bank' current operational structure, the bank is one subsidiary under the holding company, Ghosh said. The other subsidiary comprises two different businesses.After he quits as Bandhan Bank's MD & CEO, he would like to provide strategic support to the whole of the group, likely "in a bigger role", Ghosh revealed.As stock markets try and make sense of Ghosh's sudden decision, the bank's shares were trading significantly down on April 8 forenoon (about 5.5% down at around 11 am).

Shares of Wipro on Monday fell around 1% to the day's low at Rs 479 on BSE after investors were left surprised by the sudden exit of the Bengaluru-based IT major's CEO and MD Thierry Delaporte. About half of the brokerages have a sell rating on the Nifty IT stock as they believe that transition could create uncertainty in the near term before boosting hopes of a potential turnaround.Among global brokerages, CITI has a sell rating on Wipro with a target price of Rs 440, CLSA Rs 445 with a sell rating, and Morgan Stanley Rs 450 with an underweight call. Jefferies has an underperform rating on Wipro with a target price of Rs 470 while Nomura has maintained a reduced rating with an unchanged target price of Rs 410."We believe the revenue growth recovery for Wipro is going to be slow and unlikely to change significantly due to the CEO change in the near term. We would keep a close eye on his strategy in the coming quarters. We expect Wipro to lag its peer set growth rate in FY25," said Nomura analyst Abhishek Bhandari.Investors will await clarity on any strategic or organisational changes and capital allocation from new CEO and MD Srini Pallia.Pallia has been with Wipro since 1992 and has held numerous leadership roles, including President of Wipro’s Consumer Business Unit and Global Head of Business Application Services. Most recently, he served as the CEO for Americas 1, Wipro’s largest and fastest-growing market, where he led a wide range of industry sectors. Srini will be based out of New Jersey, US and would be the first insider CEO for Wipro since 2016.While noting that the trend of a new CEO every 4-5 years continues, CLSA said Pallia’s candidature looks promising, but has a tough task ahead to turnaround. Jefferies analysts said Delaporte's exit before the end of his five-year tenure in June 2025, along with several other senior-level exits, reflects continued execution issues.Wipro has seen steady churn at the top level (8 CEOs) since the turn of the century, the highest among India-based IT services firms. These include Vivek Paul, Azim Premji, Girish Paranjpe and Suresh Vaswani (joint CEOs), TK Kurien, Abidali Neemuchwala, Thierry Delaporte, and now Srinivas Pallia."Wipro has underperformed its peers for a long time on account of poor execution, leadership churn, portfolio challenges, and mediocre M&A record. Wipro has done significant restructuring under Thierry’s leadership to simplify organizational structure, drive decision-making agility with empowered GAEs, strengthen relations with partner ecosystems, and augment capabilities with some bold M&As like Capco," said Dipeshkumar Mehta of Emkay Global.Wipro has been seeing an influx of talent from various countries and companies along with the departure of long-standing Wipro veterans, which may have led to some cultural differences and a sense of disconnect within the organization, he said.Pallia is likely to garner better acceptance internally and take swift actions to arrest churn at senior levels and re-energize employee morale.Analysts at Kotak Institutional Equities also expect Wipro to underperform peers on growth once again in FY2025. "Turning around the business in a difficult environment is all the more challenging. Wipro has to deal with the dual challenges—internal as well as external. The stock trades at ~20X FY2026E EPS, almost on par with Infosys and only at a marginal discount to HCLT. The valuations are expensive for the growth profile," Kotak's Kawaljeet Saluja said.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

Brokerage firm Macquarie has an outperform rating on Marico, Morgan Stanley recommended an Equal Weight rating on Godrej Consumer, JPMorgan has an overweight rating on Titan and Jefferies initiated a buy on IDFC First Bank.We have collated a list of recommendations from top brokerage firms from ETNow and other sources:Macquarie on Marico: Outperform| Target Rs 600Macquarie maintained an outperform rating on Marico with a target price of Rs 600. There is pick-up seen in the volume growth momentum.The business update numbers were broadly in line with the commentary. India volume growth has seen a slight uptick.The global investment bank expects a 4% sales decline and 15% EBITDA growth in Q4.Morgan Stanley on Godrej Consumer: Equal Weight| Target Rs 1089Morgan Stanley maintained an Equal Weight rating on Godrej Consumer with a target price of Rs 1089. Q4 performance was ahead of the estimate on the top line.The company reported a better performance in the Indian and Indonesian businesses. GoodKnight Agarbatti launch has been well received by consumers, which is a key positive.Devaluation in Nigeria continues to affect overall growth.JPMorgan on Titan Company: Overweight| Target Rs 3950JPMorgan maintained an overweight rating on Titan Company with a target price of Rs 3950. The jewellery business was in line with expectations; a steep rise in gold price could add to demand volatility.Watches & Wearables and eyewear 500 growth was relatively subdued.Jefferies on IDFC First Bank: Buy| Target Rs 100Jefferies initiated coverage on IDFC First Bank with a buy rating and a target price of Rs 100. Full Suite banking aids high-growthOperational efficiencies will play out from H2FY25. Over FY24-27 strong deposit growth will aid loan growth that should aid 28% EPS CAGR.Improvement in Return on Assets ROA (to 1.5%) and Return on Equity ROE (to 14%) will aid rerating.A fall in rates should help it more than peers, and the ability to raise capital will be the key. The valuations remain reasonable, which is a positive sign.(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)

Indian market is likely to edge higher on Monday tracking positive global cues.The Nifty future closed negative with a marginal loss of 0.01% at 22611 levels on Friday. India VIX was up by 1.07% from 11.22 to 11.34 levels. Volatility has risen marginally after the cool-off seen in the last 4 sessions.On the weekly options front, the maximum Call OI is placed at 23,000 and then towards 22,800 strikes while the maximum Put OI is placed at 22,500 and then towards 22,400 strikes.Minor Call writing is seen at 22,800 and then towards 23000 strikes while some Put writing is seen at 22400 and then towards 22200 strikes.“Options data suggests a broader trading range in between 22000 to 23000 zones while an immediate trading range in between 22300 to 22700 zones,” Chandan Taparia, Analyst-Derivatives at Motilal Oswal Financial Services Limited, said.“Nifty formed a small-bodied Bullish candle on the daily and weekly frame on Friday and gave the highest ever close on weekly frame,” he said.“Now the index has to continue to hold above 22500 zones to witness an up move towards 22650 and 22750 zones while on the downside support exists at 22400 and 22300 zones,” recommended Taparia.We have collated a list of stocks from the F&O basket along with cash market from various experts for traders who have a short-term trading horizon:Expert: Sagar Doshi, Technical Analyst, Research, Nuvama Wealth told ETBureauBank of India: Buy| Target Rs 158.50| Stop Loss Rs 143Godrej Properties: Buy| Target Rs 2700| Stop Loss Rs 2425Supreme Industries: Buy| Target Rs 4655| Stop Loss Rs 4200Expert: Kunal Bothra, Market Expert told ETNowKotak Mahindra Bank: Buy| Target Rs 1880| Stop Loss Rs 1730ITC: Buy| Target Rs 440| Stop Loss Rs 424Aditya Birla Fashion: Buy| Target Rs 250| Stop Loss Rs 228Expert: Nooresh Merani, an independent technical analyst told ETNowUPL: Buy| Target Rs 530| Stop Loss Rs 480Kotak Mahindra Bank: Buy| Target Rs 1880| Stop Loss Rs 1750Delhivery: Buy| Target Rs 550| Stop Loss Rs 440(Disclaimer: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)

Gold’s scorching run to an all-time high may seem easy to explain from a distance, given the fractious geopolitical climate and murky outlook for the global economy. The precious metal is famously seen as a “safe haven,” and the general view is that bullion prices should rise when interest rates fall — which many investors expect will happen later this year.And yet. Take a closer look, and it’s far from clear: why is gold suddenly rising right now?After trading in a fairly steady range for months, bullion started spiking in early March. It’s risen 14% since then and left a string of daily records in its wake. But geopolitical tensions have been high for months, even years, and if anything the outlook for the timing on rate cuts by the Federal Reserve has become muddier in recent weeks. So what’s changed?Seasoned executives and analysts offer very different answers to who or what has driven gold to its unprecedented heights: Is it a central bank worried about the dollar’s role as an economic weapon? Funds betting that the Federal Reserve’s pivot to lower interest rates is imminent? An army of algorithmic traders drawn to gold simply because it’s going up? Stubborn inflation and worries about a hard landing? Weakening currencies? Upcoming elections? All of the above?The mystery has sent industry insiders poking through the plumbing of a massive global trade that stretches across futures and exchange-traded funds from New York to Shanghai to a huge over-the-counter hub in London and world-spanning web of dealers selling bars, coins and jewelry to everyone, everywhere.It’s an opaque and complex world that’s historically been hard to crack open. Still, the market and regulators have been on a years-long drive to boost transparency, increasing access to data that helps shine a little more light on the gravity-defying rally in one of the world’s oldest stores of wealth.Who’s buying?First, the easy answer: central banks, in particular, as well as big institutions and traders preparing for a shift to looser rates. Chinese consumers are worried about wilting returns in other assets and a depreciating currency. On Reddit Inc.’s platform, self-proclaimed “stackers” boast of hoarding bars and coins.But those groups have been a consistent bullish force for months — or years in the case of central banks — and it’s not clear why any one of them might be buying with a much greater sense of fear, greed, or exuberance. Analysts are armed with better market data than they’ve ever had before, and yet the cumulative answer is frustratingly vague: It’s everyone all at once, and no one in particular.109118818What are they buying?One thing that’s clear is also a head-scratcher: Investors haven’t been buying exchange-traded funds, one of the easiest ways to acquire gold. A steady stream of outflows from gold-backed ETFs suggests that a major cohort is missing out — or cashing out.“This is one of the more bizarre phenomena that I’ve ever seen in the ETF space,” said Nate Geraci, president of the ETF Store. “What’s particularly interesting is that gold demand has been very strong in other channels such as central bank purchases and direct purchases by individual and private investors.”Profit-taking by long-term investors who bought in years ago is how Citigroup Inc. explains why net ETF inflows have been notably weak. The fact that the steady and sizable outflows haven’t had a greater impact on prices also hints at strong demand for the bars they’ve been selling — and central banks would be a natural buyer, according to Joe Cavatoni, who oversees the World Gold Council’s ETF platform.“There are other investors who are buying the physical gold, so it is not having an impact in any way,” he said in an interview. “Guess where it goes: into the OTC market, picked up by central banks.”109118827Where are they buying?In the larger futures and over-the-counter markets, trading activity is rising sharply, signaling that the usual institutional buyers — central banks, investment banks, pension funds, sovereign wealth funds — are involved. Options activity is picking up, too, and there are expectations bullion prices may vault higher still as options dealers rush to cover their exposure.The number of outstanding contracts in New York futures has been rising, a sign that longer-term bets by money managers are on the upswing. But overall trading volume has outpaced the number of open contracts — hinting at a surge in the kind of frenetic day trading algorithmic funds excel at.109118838When are they buying?Mainly on Mondays, Wednesdays, and Fridays. The gold market is famously sensitive to shifts in US economic data, and that’s become even more true since prices took off at the start of March. Key economic releases on those days offer readings on the strength of manufacturing, jobs, GDP and inflation, and a concentrated spurt of buying seen after the data provides a strong clue to the identities of the most influential actors.109118856But that in itself has been confounding analysts, because recent data has been coming in hot, and investors in currency and bond markets have been responding with bets that the Fed’s pivot will come later and be shallower than expected a few months ago.In theory, that would be negative for gold because high interest rates dent bullion’s appeal relative to yield-bearing assets such as bonds. Investors also are pushing up the dollar, which has made gold much more expensive for buyers in the top consumer markets: China and India.Why are they buying now?That’s the big question. The glaring hole in the narrative of the past five weeks is that while the Fed is still expected to start cutting rates this year – which should benefit gold — many investors have actually become less convinced about the timing than they were a few months ago.One possibility is that some gold investors are instead zeroing in on the prospect of a hard landing in the US economy based on the recent data, and rushing to buy bullion for its role as a haven.That idea could also provide an explanation for another curious movement in the gold market in recent weeks – the relationship between a closely watched gold price spread and US Fed interest rates.109118869The percentage yield between London spot and three-month forwards – which tends to track interest rates because of the cost of storing, financing and insuring gold – has made a rare dip below Fed rates in recent weeks, as spot prices soared. Historically, that only happens on a sustained basis when rates are either low or about to move sharply lower.The inversion of the spread may signal that nervous investors are clamoring to get hold of spot gold now, as protection against potential turmoil.“The rally is defying a lot of normal thinking, especially when it comes to still-elevated rates,” said Ole Hansen, head of commodity strategy at Saxo Bank AS. “I think the narrative is changing towards sticky inflation and perhaps a hard landing, spiced with a lot of geopolitical uncertainty and de-globalization driving central bank demand.”

Indian supermarket chain Vishal Mega Mart Pvt. has picked banks as it presses ahead with a planned initial public offering in Mumbai this year, according to people familiar with the matter.Vishal Mega Mart chose Kotak Mahindra Bank Ltd. and ICICI Bank Ltd to help arrange a share sale as early as in the fourth quarter of this year, the people said, asking not to be identified because the deliberations are private. It is owned by private equity firms Partners Group Holding AG and Kedaara Capital, and the IPO would allow them to pare their stakes, the people said.Other banks are likely to be added to work on the IPO, the people said. The Gurugram-based company could raise between $850 million to $1 billion in the offering, they said.A representative for Kedaara declined to comment, while Partners Group, Kotak, ICICI and Vishal Mega Mart did not immediately respond to requests for comment outside of business hours.Partners Group, based in Switzerland, and India-focused private equity firm Kedaara bought Vishal Mega Mart from investment firm TPG Capital in 2018 for an undisclosed amount. Vishal Mega Mart offers a private label, fashion and general merchandise, and food and groceries.India has turned into a booming market for deals including IPOs as global investors seek to tap its growth potential. Automakers, electric-scooter makers and information technology companies are among those considering IPOs this year.

An engine cover on a Southwest Airlines Boeing 737-800 fell off on Sunday during takeoff in Denver and struck the wing flap, prompting the U.S. FAA to open an investigation. No one was injured and Southwest Flight 3695 returned safely to Denver International Airport around 8:15 a.m. local time on Sunday and was towed to the gate after losing the engine cowling. The Boeing aircraft bound for Houston Hobby airport with 135 passengers and six crew members aboard rose to an elevation of about 10,300 feet (3,140 m) before returning 25 minutes after takeoff. Passengers arrived in Houston on another Southwest plane about four hours behind schedule. Southwest said maintenance teams are reviewing the aircraft. The plane entered service in June 2015, according to FAA records. Boeing referred questions to Southwest. The airline declined to say when the plane's engine had last had maintenance. ABC News aired a video posted on social media platform X of the ripped engine cover flapping in the wind with a torn Southwest logo. Boeing has come under intense criticism since a door plug panel tore off a new Alaska Airlines 737 MAX 9 jet at 16,000 feet on Jan. 5. In the aftermath of that incident, the FAA grounded the MAX 9 for several weeks, barred Boeing from increasing the MAX production rate and ordered it to develop a comprehensive plan to address "systemic quality-control issues" within 90 days. Boeing production has fallen below the maximum 38 MAX planes per month the FAA is allowing. The Justice Department has opened a criminal investigation into the MAX 9 incident. The 737-800 is in the prior generation of the best-selling 737 known as the 737 NG, which in turn was replaced by the 737 MAX. The FAA is investigating several other recent Southwest Boeing engine issues. A Southwest 737 flight on Thursday aborted takeoff and taxied back to the gate at Lubbock airport in Texas after the crew reported engine issues. The FAA is also investigating a March 25 Southwest 737 flight that returned to the Austin airport in Texas after the crew reported a possible engine issue. A March 22 Southwest 737-800 flight returned to Fort Lauderdale airport after the crew reported an engine issue. It is also being reviewed by the FAA.