Tech Mahindra stock price soars 10%, TCS sulks
The week started with Oscars and ended with Rajesh Gopinathan’s surprise resignation. Oscar win was anticipated, TCS CEO hanging up his boots four years before schedule was not. TCS stock price was down 2% by the end of the day. The underperformance of TCS compared to Infosys post Covid-19 pandemic might be the trigger factor for Gopinathan pursuing other interests.
While the market sentiment was subdued for TCS, close peer Tech Mahindra’s stock gave its best performance over the past three years on March 13, 2023. Tech Mahindra stock price soared 10% with Infosys veteran Mohit Joshi’s appointment as the managing director and CEO succeeding CP Gurnani. While Infy’s loss is Tech Mahindra gain, it’s hard to guess who is gaining at the cost of TCS. Definitely won’t be Twitter.
Coca Cola and Pepsi ready for the Jio effect
Iconic Campa Cola, owned by Reliance Retail Ventures was launched this week in Andhra Pradesh with its 200 ml bottle costing just Rs 10. Consumers are ready for a joyful ride as Coke and Pepsi bear the brunt of the Jio effect. Coke and Pepsi which together own 80-85% of Indian carbonated soft drinks (CSD) market charge Rs 15 for a 200 ml bottle. Reliance Retail Ventures Ltd has also launched Campa Cola’s 600 ml bottle for Rs 30, 1 litre for Rs 40 and Rs 80 for 2 litre. What is sab badhiya for Indian consumers is bad for the stock market investors. Varun Beverages lost 4% since March 15, in response to Campa Cola’s entry in the Indian CSD market and Reliance ambitions.
SVB Bank, Credit Suisse, Hamari Inflation aur Gold
Even though SVB Bank and Credit Suisse have limited impact on the Indian economy, global rumblings seep down to every nook and corner of the world’s economic system. As uncertainty rises, investors seek refuge in safe-haven gold, leading to rising prices. Gold prices have soared beyond Rs 58,000 in India, but calmed down as Credit Suisse received a lifeline of $ 54 billion from Swiss Central Bank.
With the backdrop of SVB Bank collapse tormented by rising interest rates making its bond investment worthless, the US Fed might pause its interest rate hikes. Reserve Bank of India is also expected to pause repo rate rise after the softening of retail inflation to 6.44% in February 2023 from 6.52% in January 2023 in the upcoming April MPC. By the same time next week, we will have clarity as US Fed and Bank of England releases its monetary policy.
