Most Asian stocks fell Wednesday as the dollar held around a one-year high, bolstered by robust U.S. economic data that highlighted the case for tighter monetary policy and pushed up Treasury yields.
SBI, U Gro Capital partner for co-lending scheme
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Nifty Pharma worst hit among sectoral indices
Asian Paints’ price hike spree cheers investors
It is no news that Asian Paints Ltd has been battling severe cost inflation and its strategy of taking slow price hikes became a sour point for its investors. But there is some relief for investors on this front. According to analysts at Edelweiss Securities Ltd, the market leader in decorative paints is taking another round of price hike effective 5 December.
“Our sense is that the latest hike is 4–5%. This would bring the total hike to around 19% year-on-year (y-o-y),” said the Edelweiss report dated 16 November.
Investors would reckon that Asian Paints saw robust volumes growth of 34% in the September quarter. However, gross margins contracted a sharp 970 basis points y-o-y as prices of key input material titanium dioxide and other crude-based monomers remained high . One basis point is one hundredeth of a percentage point.
Asian Paints took a 4% price increase in 2QFY22 on a 6% sequential raw material cost increase during the September quarter. Dealers channel checks by various brokerages showed that the company had raised prices in October by 5-6% across various products.
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U.K. inflation surges to highest in a decade on energy costs: Bloomberg
U.K. inflation climbed faster than expected to the highest in a decade, heaping pressure on the Bank of England to raise interest rates and tightening a squeeze on living standards for households.
Consumer prices rose 4.2% from a year ago in October, the fastest pace since November 2011, the Office for National Statistics said Wednesday. The figure was up sharply from 3.1% in September and the reading of 3.9% expected by economists. The Bank of England says price growth could touch 5% early next year.
The pound surged against the dollar after the decision, reaching $1.3473 after the report.
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Read More: Sensex, Nifty flat; Asian Paints top gainer, pharma stocks hit