Oil and gas prices have witnessed a huge surge overnight. The crude oil prices are back above USD 120 per barrel and in this week itself, the prices are up by nearly 13 percent.
Regina Mayor, Global Head of Energy at KPMG in an interview to CNBC-TV18 said that crude oil prices are being driven by a perfect storm of bullish fundamentals. She expects crude prices to stay above USD 100 per barrel until Russia-Ukraine ceasefire.
She said higher crude prices may lead to acceleration in renewables. According to Mayor alternative sources of energy would lead the way in next decade.
In a major boost for the country’s armed forces, the Defence Acquisition Council, which met under the chairmanship of Defence Minister Rajnath Singh on Tuesday, approved the procurement of Rs 8,357 crore worth of military platforms and hardware, including air defence fire control radar and GSAT-7B satellite. The procurement proposals were accorded “Acceptance of Necessity”, the ministry said in a statement.
The approved proposals included “procurement of night sight (image intensifier), light vehicles GS 4X4, air defence fire control radar (light) and GSAT-7B satellite,” it mentioned. Acquisition of these equipment and systems will enhance operational preparedness of armed forces by providing better visibility, enhanced mobility, improved communication and increased capability of detecting enemy aircraft, it stated.
To discuss the road ahead for the company and defence procurement industry, CNBC-TV18 spoke to Amit Mahajan, Director of Technical & R&D at Paras Defence.
CLSA continues to maintain a sell call on Tata Motors, so it has been bearish on Tata Motors for a while. CLSA had cut the target price marginally on the stock earlier; the target price was Rs 408 and now is Rs 392.
Their point is that JLR’s sales continue to be under a lot of pressure because of the semiconductor shortage that have hit production levels globally. So in the month of February alone, JLR’s retail sales were down to 28 percent, largely led by what is happening in the European market. So first, there was a semiconductor shortage which hit the European sales quite a bit — sales were down about 38 percent in Europe. Now, the Russia-Ukraine war has caused many production units to shut down. Hence, demand could get hit further.
CLSA also has cut earnings estimates, factoring in higher commodity costs; it could be challenging for the company to pass on the commodity cost to consumers given that demand has been hit. The production too also getting hit on account of the semiconductor shortage. The volumes could disappoint further if the chip shorted situation worsens.
So all in all, a bearish view on Tata Motors continues and they have cut their target price on the stock.
Source: CNBCTV18