Morning Alert..
*West Asia war: 45K Indian containers stuck; export costs increase fivefold*
The West Asian war is taking a toll on Indian exporters. According to firms involved in the logistics sector, around 40,000-45,000 Indian containers are currently stranded, either in transit, or at international ports, and the future of export cargo worth around $1-1.5 billion is already under clouds, staring at either a diversion in routes, or a U-turn to India, leading to cost escalation. Adding to this, several contingency surcharges by shipping liners are causing an additional three- to five-fold increase in per container cost, say industry experts. All these together are leading to cascading cost, a possible container crisis, and for perishable goods exporters, there may even be hefty losses. According to sources, a good share of these stuck consignments are basmati rice, which is 4 lakh tonnes. "Around 40,000-45,000 containers with Indian exports are stuck and nearly 80 per cent of them are already in waters. Based on rough estimates, cargo worth around $1-1.5 billion is stranded, in both air and sea routes," said Jitendra Srivastava, chief executive officer, Triton Logistics & Maritime, an end-to-end logistics and supply chain services firm. For those exporting perishable goods, this means total loss. In addition, war-risk surcharges — including emergency cost recovery charges (ECRC), contingency charges and peak season charges, among others — are wiping out the margins of exporters, say sources. Srivastava said a lot of exporters are considering applying for back-to-town (BTT) options, a customs procedure allowing exporters to withdraw cargo from a port and bring it back into the domestic market, after it has already entered the export stream.
*Global market action*
Dow Jones – Down by 2.32% or 1098.34 points
FTSE – Down by 1.26% or 129.19 points
CAC – Down by 0.65% or 52.31 points
DAX – Down by 0.95% or 224.72 points
Gift Nifty – Down by 3.18% or 780.50 points
*FII/DII activities*
FII – Sold 6030.38Cr worth of shares
DII – Bought 6971.51Cr worth of shares.
*Major Indian Indices PE*
Nifty 50 – 21.4x
Nifty Bank – 15.5x
*Stocks with high delivery percentage*
Honeywell Automation India Ltd – 96.3%
Aavas Financiers Ltd – 92.3%
Aditya Birla Lifestyle Brands Ltd – 91.5%
Tube Investments of India Ltd – 85.6%
Chalet Hotels Ltd – 84.1%
*Primary market activities*
IPO opening today
Rajputana Stainless Ltd (Main board) – Issue size 254.98Cr
*Commodities updates*
Gold – Rs 161778/10gm, Silver – Rs 268896/kg, Brcude – Rs 8405/barrel, Copper – Rs 1197.40/kg.
