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PremiumSensex Today | Share Market Live Updates: India's benchmark indexes ended lower on Thursday, dragged by financials in a consolidation of sorts after rising for seven consecutive sessions and hitting fresh record highs.
Shares fell across Asia following declines on Wall Street, pressured by weak oil prices and concerns about China’s fiscal health. Treasuries slid after rallying on fresh signs of US labor market softness.
10-year Treasury yields drifted higher after Wednesday’s decline that had pushed them to 4.1%, the lowest since August. The policy-sensitive two-year yield also edged up slightly. Australian bond yields were a touch lower.
Softening economic data and recent comments from Federal Reserve officials, including Chair Jerome Powell, have heightened expectations that the U.S. rates have peaked and a total of more than 125 basis points in cuts could commerce as early as in March.
Fed policymakers meet next week for the last time in 2023. While no change is expected in their target for the federal funds rate, they are scheduled to release quarterly forecasts that could alter market-implied expectations.
India's benchmark indexes ended lower on Thursday, dragged by financials in a consolidation of sorts after rising for seven consecutive sessions and hitting fresh record highs.
Weakness in global markets also weighed on domestic indices.
At close, Nifty was down 37 points at 20,901.15, the Sensex fell 132 points to 69,521.69.
Shares in most emerging markets dropped on Thursday led by Chinese stocks, after trade data failed to instil confidence about recovery in the world's second-largest economy, while a Moody's downgrade on Hong Kong added to the gloom.
MSCI's index tracking developing markets equities lost 0.5%, while a basket of currencies dipped 0.1% against the dollar.
European shares took a breather on Thursday after strong gains recently.
Back home, Power Grid Corp, Adani Ports, UltraTech Cement, Cipla and Grasim Industries were the top gainers on Nifty, while Bharti Airtel, HUL, ONGC, Apollo Hospitals and Tata Steel fell the most.
Broader markets extended gains though, with the BSE midcap index up 0.7% and smallcap index rising 0.3%.
European shares dropped on Thursday, led by travel and leisure stocks, as investors grew wary of an economic downturn following a slew of recent weak data out of Germany and keenly awaited a GDP print from the euro zone.
The pan-European STOXX 600 index fell 0.3%, after touching a more than four-month high on Wednesday.
The board of directors of low-cost airline SpiceJet will meet on 11 December to consider options for raising fresh capital through issue of equity shares and/or convertible securities on preferential basis.
In its Asia Macro Outlook 2024, Nomura said that it expects GDP growth to slow to 5.7% y-o-y in 2024 and 5.6% in FY25, below consensus (6.2%) and the RBI’s outlook of 6.5%, with the risk of a more material slowdown in H2 2024.
“We marginally raise our CPI inflation forecast to 5.7% y-o-y for 2023, from 5.3% previously; and FY24 to 5.6% from 5.3% (RBI: 5.4%), due to higher near-term food prices. For FY25, our forecast remains unchanged at 4.5%, similar to the RBI’s outlook."
Nazara Technologies (Nazara) has a cash balance of over ₹8bn (standalone) post the preferential allotment of around ₹5.1bn. We believe this puts Nazara in a strong position to capitalise on the funding freeze in RMG space. Most platforms are not fully passing on the 28% GST rate to end user due to the fear of losing share to competition, which is intensifying their cash crunch. Our channel checks suggest most funding opportunities in the space are (>60-70%) down rounds.
Given the steep correction in valuation and the belief that regulators could revise taxation in H1CY24, consolidation is getting delayed. However, we note there has been some correction in salaries and some conversations have begun regarding the potential buy-outs. This could benefit Nazara as it tries to buy/build a play in RMG space.
Gold prices were flat on Thursday as investors held back from making big bets ahead of a crucial US payrolls data later this week that could offer more clues on the Federal Reserve's interest rate trajectory.
Spot gold held its ground at $2,025.69 per ounce. U.S. gold futures fell 0.3% to $2,042.50.
Yields on government bond fell marginally on Thursday, ahead of the Reserve Bank of India's (RBI) monetary policy decision.
The 10-year benchmark bond yield was at 7.2462%, cpmpared with previous close of 7.2528%.
We had started with a SELL rating for One 97 Communications (Paytm) at the time of its IPO. We have a still less-than-bullish ADD rating on the stock and have never put a BUY rating on it.
In today’s call, Paytm has stated that (1) For personal loans, the growth would 15-20%, which is materially lower than the earlier guidance in the 2Q call (2) For merchant loans, the growth would be 30-45%, which is also materially lower than the earlier guidance in the 2Q call (3) For postpaid loans, disbursement run rate is expected to halve, which is a significantly material downward revision.
We note that Paytm has flagged that the impact on profitability would be lower given that postpaid is a business of lower profitability. However, today’s commentary, in a sense, calls into question the broad thesis that Paytm was fast transforming from a Payments-focused company to a Loan distribution-focused company. The key question to ask is what proportion of its overall customer base would Paytm be ultimately be able to convert into loan customers in the long-run.
PVR Inox suffered in the first half of Q3FY24 due to the Cricket World Cup as big budget theatrical releases (Hindi) were moved to the second half. In addition, Hollywood content pipeline was weak (impacted by screenwriters strike).
‘Leo’ collected INR3.4bn and ‘Tiger3’ collected INR2.8bn (Nett. India). However, ‘Animal’ released on 1st Dec’23 appears to be progressing towards becoming one of the top 10 blockbusters of all time. In 6 days, it has collected approximately ₹3.2bn(Nett. India), which is significantly higher than expectations. Over the same period, ‘Sam Bahadur’ collected ₹4bn (Nett. India) with strong word of mouth promotion. Our channel checks indicate occupancy in PVR Inox in Dec’23 has been in the range of 55-60%. Given ‘Dunki’, ‘Salaar’ and ‘Aquaman’ are in the pipeline in Q3FY24, we re-iterate BUY.
The Securities and Exchange Board of India (Sebi) has issued show-cause notices to about a dozen foreign investors that owned big chunks of Adani group companies as it seeks to lift the veil on their true ownership. The notices charge the investors with failing to maintain and disclose information about their ultimate beneficiaries.
Media reports have said that Adani Ports and Special Economic Zone is in early talks to acquire conglomerate Shapoorji Pallonji Group's Gopalpur port in Odisha for ₹11 billion to ₹12 billion.
Shares of One97 Communications Ltd., the parent company of payments platform Paytm, slumped on Thursday on reports of multiple brokerages downgrading or cutting price targets on the stock.
Goldman Sachs and Jefferies are among the brokerages that have cut their price target for the Paytm stock.
The company's plan to scale back its small-ticket loan portfolio also weighed on the stock.
India's benchmark indexes opened lower on Thursday after hitting fresh record highs in a previous three sessions, while global stocks extended fall as the market rally faded.
The Nifty50 shed 0.28% to 20,878.35, while the Sensex was down 195.75 points at 69,457.98 in opening deals.
Nifty50 has completed his strong one month up move post the breakout and trending near the higher range with multiple gaps on daily charts.
The immediate support levels will be 20,500 followed by the previous tops of 20,250 levels being the previous all time high.
RSI has moved to 84 levels and being trading at one of the highest over the last 2 years and can expect a minor pullback and retracement from the current range.
Highest call OI has moved to 21,000 strike while on the downside the highest put OI has moved higher to 20,800 for the weekly expiry.
The Securities and Exchange Board of India (Sebi) has issued show-cause notices to about a dozen foreign investors that owned big chunks of Adani group companies as it seeks to lift the veil on their true ownership. The notices charge the investors with failing to maintain and disclose information about their ultimate beneficiaries.
Bank of Baroda (BoB) has asked branches to produce customer consent and registration forms for signing up on the bob World app and changing mobile numbers. The lender is trying to trace the paper trail behind a recent scandal where some employees allegedly created false app sign-ups using random mobile phone numbers.
Oil prices recovered some of their losses in early deals in Asian trading but remained at the lowest levels since June, after falling in the previous session on high US crude output and gasoline inventories.
Brent crude futures rose 32 cents, or 0.43%, to $74.62 a barrel. US West Texas Intermediate crude futures rose 33 cents, or 0.48%, to $69.71 a barrel.
Bank of Baroda, Mahindra, Network18, Adani Ports, Ircon, Paytm, among others, will be in focus today.
SAIL, Delta Corp, Indiabulls Housing Finance, India Cements and Zee Entertainment Enterprises are in the F&O ban list for 7 December.
GIFT Nifty futures were down 48 points in early deals on Thursday at 21,049, indicating a soft start for Indian markets.
India's equity benchmark notched another day of record gains on Wednesday, with Sensex and Nifty closing at fresh highs. Investors remained bullish following better than expected GDP data and the ruling party winning key state elections, providing for political stability.
At close on Wednesday, Sensex was up 358 points at 69,653.73, while the Nifty rose 83 points to end the day at 20,937.70.
Asian shares slipped Thursday, in line with the decline on Wall Street overnight.
MSCI's broadest index of Asia-Pacific shares outside Japan dipped 0.5%, having been down 1.6% so far this month after a 7.3% rally in November. Japan's Nikkei fell 1.3%, led by declines in energy and tech stocks.
There was also a soft reading on the U.S. labour market overnight. Analysts note the ADP private payrolls report is historically not a very reliable predictor of the official non-farm payroll report due on Friday, making the weekly jobless claims later in the day more important.
Investors are awaiting Chinese trade figures later in the day to get a gauge of the strength of the world's second largest economy.
Overnight, Wall Street was dragged lower by energy stocks as oil prices slid. The Dow Jones slipped 0.2%, the S&P 500 lost 0.4%, and the Nasdaq Composite fell 0.6%.
Oil prices steadied after falling nearly 4% overnight to their lowest settlements since June. Worries about global fuel demand drove prices lower, despite pledges from OPEC producers that they would keep a tight lid on supply.
