20th January 2024 – 27th January 2024 | Another week in the markets
| S&P 500 | Nasdaq | VIX | DJIA | Russell 1000 | NYSE |
| 4,890.97 | 15,455.36 | 13.26 | 38,109.43 | 3,172.06 | 16,949.11 |
| 1.06% | 0.94% | -0.30% | 0.65% | 0.88% | 1.31% |
| Nifty 50 | Gold | Silver | Brent crude | USD-INR | EUR-INR |
| 21,352.60 | $2,018.20 | $22.90 | $83.02 | 83.12 | 90.23 |
| -0.51% | -0.67% | 0.68% | 5.58% | -0.03% | -0.42% |
Source: MarketWatch
Hello Saturday,
This week, the Indian Navy shows its true grit in the Red Sea conflict, Alaska Airlines estimates that the company will suffer a $150 million hit in the aftermath of Boeing grounding and Apple’s smartphone exports hit a wall in the latest quarter in China.
- India is charting a fine line between diplomacy and defence as it has deployed over 10 warships to rebuff attacks on commercial ships plying through the Red Sea. At the same time, it has kept its distance from the official U.S.-led force in the Red Sea.
- Alaska Airlines has cautioned that its earnings will take a setback of $150 million in light of the Federal Aviation Administration’s action grounding 171 Boeing 737 MAX ( planes.
- Apple’s smartphone exports to China fell 2.1% in the latest quarter as the consumer sentiment takes a beating.
- Adani Power sheds the Hindenburg hangover by reporting an impressive consolidated net profit of ₹2,738 crore.
- IPO-bound Ola Electric’s consolidated net loss narrows to ₹772.25 crore in FY23 vis-a-vis ₹1,522.33 crore reported in FY22.
Taking stock | India intervention | Alaska Airlines in a quick descent | China is upsetting the Apple cart | Adani Powers Through | Ola narrows losses | Invest wisely | Another week in the markets
Taking stock
The S&P500 broke a 5-day streak of ner records and slipped marginally because of selling in technology shares. All three major indices ended the week higher. On the last day of the week, the S&P500 fell by 0.1%, the Dow inched up by 0.2% and the Nasdaq declined by 0.4%
India intervention
Ten warships of the Indian Navy have been deployed in the Red Sea to accompany commercial ships plying through the conflict-ridden zone. The Indian government will be charting a fine line between defence and diplomacy with the naval deployment as it attempts to protect Indian commercial vessels without endangering friendly relations with Iran.
The warships won’t be joining the U.S.-led forces that have opened an offensive against the Iran-backed Houthis. Earlier, the militant group had launched an attack on Israeli ships as a retaliation to the bombardment of Gaza. Increasingly, the Houthi attacks have become indiscriminate, and commercial ships hailing from other countries have also been targeted.
In December, two Indian commercial ships were also attacked dramatically escalating the conflict pitch, and forcing India to step up its engagement in the region.
The ten naval warships deployed by India are responsible for tracking India-flagged ships, however, they have also rushed to rescue in a few recent incidents. For instance, last week, India’s guided missile destroyer INS Visakhapatnam rushed to the rescue of folks aboard the US-owned vessel Genco Picardy. The carrier was attacked in the Red Sea by drones.
Overall, India is keeping its distance from the U.S.-led offensive considering its friendly ties with Iran. Reportedly, Indian naval ships will only be participating in United Nations missions.
Alaska Airlines in a quick descent
Alaska Airlines flight is spiralling into a quick descent.
This week, the aviation company cautioned investors over its earnings suffering a $150 million dent, a follow-on impact of the grounding of 171 Boeing 737 MAX 9 jets.
Earlier, in a chilling incident, on January 7 one of the Alaska Airlines planes was forced to make an emergency landing after a portion of the plane was ripped off midair. Passengers and flight attendants later recounted the harrowing experience to media personnel, describing in detail how a cavity opened up in the plane at 16,000 feet in the sky.
The U.S. aviation regulator jumped into action after the incident and ordered the grounding of Boeing 737 MAX jets. The regulator also directed the company to carry out an immediate inspection of the Boeing 737 jets for any manufacturing lapses.
Alaska Airlines has said that the company is busy in preparations for the final inspection of all the Boeing 737 jets, which will return to service once the inspection is completed and adverse findings, if any, are resolved.
The aviation company also indicated that the grounding of its jets will also hit its flight-growth projections. Alaska Airlines CEO Ben Minicucci has been openly critical of Boeing following the incident and has emphasised that the company will ramp up its oversight of the Boeing factory floor.
Alaska Airlines stock in a free fall
Source: Google Finance
China is upsetting the Apple cart
Apple was in for a shock in the last quarter of FY23 as its smartphone shipments to China took a beating of 2.1% sequentially, accounting for a sharp drop in Apple’s market share from 20.6% to 20%.
Benefitting from the fall of Apple’s declining market share is domestic telecom specialist Huawei, which saw a robust 36% rise in quarterly shipments, and a near 400 basis points increase in market share to 13.9%.
However, it is the US tech giant which will have the last laugh as it managed to outshine local smartphone manufacturer Vivo to become the topmost-selling vendor in China. For the full year, Apple accounted for a total of 17.3% of the total market sales compared to 16.8%, a year earlier.
Adani Powers Through
Overcoming the damage seen in the aftermath of the Hindenburg report, Adani Power reported a multi-fold growth in its consolidated net profit to ₹2,738 crore for the December quarter. In the corresponding quarter last year, the company reported a dismal net profit of ₹9 crore.
Revenue for the company rose to ₹13,355 crore from ₹8,290 crore in the same quarter in the previous year.
Adani Power CEO S B Khyalia credited the rise in profitability to strategically located power plants and optimal capacity allocation between PPAs (power purchase agreements) and merchant capacities. He added that the company’s strength in fuel management & logistics and top-notch management of power plant operations also contributed to a strong bottom line.
Ola narrows losses
IPO-bound Ola stepped up its game and narrowed losses for FY23. ANI Technologies, the parent company of the Ola brand, reported a dramatic reduction in annual net loss from ₹1,522.23 crore to ₹772.25 crore in FY23.
There was good news on the revenue front as the company’s top line grew by a whopping 48% to ₹2,481 crore in FY23.
The ride-hailing business also reported a reduction in net loss from ₹3,082.42 crore in FY22 to ₹1,082.56 crore in FY23.
At the enterprise level, operational loss of the company shrunk as well from ₹291 crore in FY22 to ₹29 crore in FY23.
The company also received a funding of ₹31,441 crore in the year.
Invest wisely
Geo-political tensions, market volatility and reckless decision-making can hurt the earning potential of any portfolio, no matter how strategically designed or customised it may be. During spells of market disturbances, an investor needs a steady, reliable and prudent partner by their side, who can re-align their focus on stock fundamentals and investment principles. The Appreciate app is one such app that can help you navigate the ups and downs of the US markets with ease, and secure your wealth from erosion.
Warm regards,
Another week
in the markets
