PremiumShare Market Updates: Sensex and Nifty remained cautious for most of the session but a late rally in FMCG and Pharma stock ensured the tides turned green towards the end.
Bank, Finance, IT and Metal dragged, while the Energy sector also gained.
Global markets mostly fell Wednesday as a jump in oil prices to 10-month highs rekindled worries of another US Federal Reserve interest rate hike.
Oil prices reversed course on Wednesday after rising over 1% in the previous session, as investors shrugged off jitters arising from supply cuts from Saudi Arabia and Russia and a firm dollar capped the upside.
Indian stock indices traded in the flat to negative zone for most of the session but a late rally ensured they ended in the green. The late rally was helped by FMCG and Pharma indices along with HDFC Bank and Airtel stocks gaining, but IT, Metal and Bank indices continued to shed.
Sensex gained 100 points to close at 65,880, while Nifty 50 added 36 points to end the day at 19,611.
HDFC Bank, Tata Consumer, Bharti Airtel and Divi's Lab were among the biggest gainers, while Tata Steel, Axis Bank and Hindalco shed.
FMCG and Pharma rallied and ensured that the benchmark indices ended in the green. IT and Bank indices struggled along with Metal in today's session amidst negative global cues.
Japanese equities closed at new highs with the weakest yen rate since November boosting automakers, while energy shares outperformed amid a surge in crude oil prices. The Nikkei 225 share average finished the day up 0.62% to its highest close in a month. The broader Topix added 0.62% to a fresh 33-year peak.
China and Hong Kong shares clawed back some early losses to close largely flat on Wednesday as investors awaited trade data for clues about the health of the world's second-largest economy, while property stocks surged on talk of further easing.
China's blue-chip CSI 300 Index ended 0.22% lower, while the Shanghai Composite Index rose 0.12%. Hong Kong's Hang Seng Index was flat, and the Hang Seng China Enterprises Index climbed 0.11%.
European equities opened lower on Wednesday, marking their sixth straight day of declines, as recent rise in oil prices and weak economic data increased uncertainty about the European Central Bank’s next move.
UK's FTSE 100 slipped on Wednesday as recent soft economic data from China and Europe continued to weigh on global sentiment, while shares of Barratt Developments fell after the homebuilder warned of a tough housing market environment.
European equities opened lower on Wednesday, marking their sixth straight day of declines, as recent rise in oil prices and weak economic data increased uncertainty about the European Central Bank’s next move. (Reuters)
The Indian rupee depreciated 14 paise to hit a 10-month low level against the US dollar on Wednesday tracking losses in Asian peers and a sharp surge in crude oil prices.
The Indian currency fell to 83.18 to the US dollar as against its previous close of 83.04. Rupee opened at 82.02 a dollar.
The US dollar held close to a six-month peak on safe haven buying as jitters over China and global growth weighed on risk appetite. Against a basket of currencies, the dollar was at 104.77, not far off the six-month high of 104.90 touched on Tuesday, Reuters reported.
Tata Group's consumer unit is in talks to buy at least 51% of popular Indian snack food maker Haldiram's but is not comfortable with the $10 billion valuation sought, two people briefed on the matter said.
If successfully concluded, a deal would see the Indian conglomerate directly compete with Pepsi and billionaire Mukesh Ambani's Reliance Retail.
Haldiram's, a household name in India, is also talking with private equity firms including Bain Capital about the sale of a 10% stake, they said. (Read More)
SpiceJet's share price continued its upward momentum, registering a remarkable surge of up to 19% during intraday trading on the BSE on Wednesday. This surge came on the heels of the company's announcement that the National Company Law Tribunal (NCLT) had instructed it to address its concerns with lessors.
Furthermore, the court verbally directed the airline to offer shares to the lessors and postponed the matter for resolution to September 15. This news appeared to buoy investor confidence, leading to the notable increase in SpiceJet's share price. (Read More)
Jupiter Life Line Hospitals IPO Subscription Status: The initial public offering (IPO) of Jupiter Life Line Hospitals Ltd, the multi-specialty tertiary and quaternary healthcare provider, opened for public subscription today. The IPO, which will close on September 8, has so far received decent response from investors.
Jupiter Life Line IPO has been subscribed 0.47 times so far on September 6, the first day of the bidding process. The public issue received bids for 39.29 lakh equity shares as compared to 84.97 lakh shares on the offer, till 2:00 pm. (Read More)
Food and beverage company PepsiCo India on Wednesday said it will invest ₹778 crore to set up its first food-focussed manufacturing plant in Assam, easing access to markets in the north-east region.
The manufacturing facility, spread over 44.2 acres in Nalbari, is proposed to be operational in 2025. It will provide direct and indirect employment opportunities to 500 people. (Read More)
SoftBank Group Corp.’s Arm Holdings Ltd. is planning to raise as much as $4.87 billion in the chip designer’s long-anticipated initial public offering, marking lowered ambitions for an IPO that was once expected to generate roughly twice that amount.
Arm will offer 95.5 million American depositary shares for $47 to $51 each, the company said in a filing Tuesday with the US Securities and Exchange Commission. The deal will value Arm at as much as $54.5 billion at the top end of the range, according to Bloomberg News calculations. Underwriters have the option of buying as many as 7 million additional shares. (Bloomberg)
The Reserve Bank of India likely conducted very short-maturity USD/INR swaps via public sector banks, which traders said could be to manage rupee liquidity.
The central bank has, in recent days, carried out USD/INR sell-buy swaps for value date Sept. 6 and maturing on Sept. 8. This would mean that the RBI is effectively taking out rupee liquidity on Sept. 6, which will flow back on Sept. 8.
"This is obviously a purely rupee liquidity management exercise," a swap trader at a foreign bank said.
India's banking liquidity surplus remained above 1.5 trillion rupees ($18.05 billion) on Sept. 5. RBI Deputy Governor Michael Patra had said a risk to the inflation outlook stems from the liquidity overhang in the banking system. (Reuters)
Jinesh Joshi – Research Analyst, Prabhudas Lilladher Pvt Ltd:
Multiplex Update: Jawan might take BO by a TSUNAMI!
✳️SRK starrer Jawan is set to release tomorrow and advance booking trends are encouraging. As of Sep 5, the gross advance collection has surpassed Rs25crs with ~910K tickets already being sold.
✳️A cursory look at BMS app reveals ~16K tickets have been booked in the last 1 hour.
✳️As per media reports, the opening day collection may well be in the band of Rs60-80crs. If this fructifies, opening weekend collection can well be in the band of Rs200-250crs (total of 4 days as the movie is releasing on Thursday).
✳️Pertinent to note that SRK’s last movie Pathaan had netted ~Rs543crs and Jawan has a better pan-India appeal given it has stars from South like Vijay Sethupati and Nayanthara and thus it would be interesting to see where the life-time collections actually settle.
✳️After Jawan, SRK will be seen next in Dunki (a Raj Kumar Hirani Film) which is expected to release in Christmas 2023. Retain positive bias on multiplexes with a BUY on PVR (TP Rs1,797 – most likely to be revised upwards).
Oil prices reversed course on Wednesday after rising over 1% in the previous session, as investors shrugged off jitters arising from supply cuts from Saudi Arabia and Russia and a firm dollar capped the upside.
Brent crude futures were down by 9 cents to $89.95 a barrel at 0657 GMT. U.S. West Texas Intermediate crude (WTI) futures traded at $86.60 a barrel, also down 9 cents. (Reuters)
Drugmaker Abbott India has voluntarily recalled several batches of antacid Digene Gel after the Drug Controller General of India (DCGI) issued an advisory against using the product. The regulator said that the impugned product, manufactured at the company’s Goa unit, may be unsafe, and could result in adverse effects when consumed.
DCGI had received a complaint on 9 August, alleging bitter taste and pungent odour of the antacid. (Read More)
The global trade finance gap grew to a record USD 2.5 trillion in 2022 from USD 1.7 trillion two years earlier, as rising interest rates, poor economic prospects, inflation, and geopolitical issues reduced the banks' financing capacity, according to a report by the Asian Development Bank (ADB).
Simply put, the trade finance gap is the difference between requests and approvals for financing to support imports and exports.
The regional development bank in its ‘2023 Trade Finance Gaps, Growth and Jobs Survey’ released on Tuesday stated heightened economic risks made finance more difficult to secure than before.
The ADB survey includes data from 137 banks and 185 companies from around 50 countries. (ANI)
Krishan Parwani of JM Financial views on SRF Ltd. | Early signs of uptick in chemicals business
BUY INR 3,245 -
Commentary from SRF’s key customers seems to be suggesting that i) channel destocking has been easing, and ii) patented agrochemicals demand will see an uptick in 2HFY23. In our view, this scenario is positive for SRF’s fluorospecialty business. Besides, commentaries from HVAC equipment producers indicate short supply for HFC blends. Our checks indicate that over the last couple of weeks SRF has started seeing good demand traction for HFC blends. In our last sector update (click here), we had highlighted that refrigerant price normalisation offers a good entry point. We reiterate our BUY stance on the name as we have started seeing signs of normalisation on the ref gas side even as we await green-shoots on the agrochem side. SRF remains one of our top picks with a Sep’24 TP of INR 3,245.
Vedanta Resources is in talks with Standard Chartered Bank for borrowing $1.2 billion to $1.3 billion of loan against brand fee receivables without any restructuring pre-conditions, reported ET.
Voltas share price rose over 4 per cent in morning trade on BSE on Wednesday as domestic brokerage firm Motilal Oswal Financial Services reinitiated coverage on the stock with a buy rating, pegging the target price of ₹1,000, implying a 15 per cent upside potential in the stock.
"We reinitiate our coverage on Voltas with a buy rating and a target price of ₹1,000 premised on 40 times FY25E earnings per share (EPS), (similar to last 10 years’ one-year forward average price-to-earnings ratio (P/E) multiple, before losses of Voltbek), and ₹38 for Voltbek," said Motilal Oswal. (Read More)
LIC share price rallied more than 4% in the early trade on Wednesday, extending gains for the fourth straight session. LIC shares jumped as much as 4.52% to ₹690.00 apiece on the BSE.
The state-run insurance behemoth Life Insurance Corporation Of India (LIC) has cut its stake in Welspun Corp by 2.05% through market sale in a period of almost 10 months.
In an exchange filing on Tuesday, the largest life insurer in the country LIC said it’s shareholding in Welspun Corp has diluted from 1,89,68,840 to 1,36,06,752 equity shares, decreasing its shareholding from 7.252% to 5.202% of the paid-up capital of the company.
Morgan Stanley is returning to a bearish view on emerging-market currencies, citing concerns over China’s growth risks that not only weigh on the yuan but also further pressure a weak global economy.
The shift from a neutral stance partly resulted from a view change on the offshore yuan, where the Wall Street giant has added a short position given expectations for growth risks to remain a focus, strategists led by James Lord wrote in a note. “CNH weakness and China macro weakness should spill over to the rest of EM."
Morgan Stanley is among a group of prominent peers that have recently cut forecasts for China’s 2023 economic growth, following a run of disappointing data and a lack of potent fiscal or monetary stimulus. The yuan has slumped nearly 6% against the dollar this year, nearing its weakest level since 2007 despite Beijing’s ramped-up efforts to support the currency. (Bloomberg)
Sahaj Fashions Ltd, a fabric manufacturer, made a lukewarm debut on NSE Emerge on Wednesday. The shares of Sahaj Fashions were listed at ₹31 each, reflecting a modest premium of 3.33% compared to the issue price of ₹30 per share.
Despite its unremarkable debut, Sahaj Fashions' initial public offering (IPO) had garnered a decent response from investors. During its subscription period from August 25 to August 29, the IPO was oversubscribed 7.75 times in total. (Read More)
Cars are getting an “F" in data privacy. Most major manufacturers admit they may be selling your personal information, a new study finds, with half also saying they would share it with the government or law enforcement without a court order.
The proliferation of sensors in automobiles — from telematics to fully digitized control consoles — has made them prodigious data-collection hubs.
But drivers are given little or no control over the personal data their vehicles collect, researchers for the nonprofit Mozilla Foundation researchers said Wednesday in their latest “Privacy Not Included" survey Security standards are also vague, a big concern given automakers’ track record of susceptibility to hacking. (AP)
Jio Financial Services faced a sharp decline of over 3% in early trading on Wednesday following the announcement of its impending exclusion from NSE indices on September 7. The shares of Jio Financial Services dipped by as much as 3.23%, settling at ₹246.85 per share on the BSE.
Jio Financial Services Ltd (JFSL), the demerged non-banking financial services unit under the leadership of Mukesh Ambani's Reliance Industries, is set to be removed from Nifty 50 and other NSE indices on September 7, as officially confirmed by the National Stock Exchange (NSE) on Tuesday. (Read More)
The Indian rupee opened flat against the US dollar on Wednesday amid broader strength in the greenback and a sharp surge in crude oil prices. The local currency opened at 83.02 a dollar as compared to previous close of 83.04.
The dollar traded near a six-month peak on safe-haven demand as jitters over China and global growth dragged on risk sentiment. The dollar index rose 0.067% to 104.80 against a basket of currencies, not far off the six-month high of 104.90 it touched overnight.
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: For the near term, there are mixed cues for the market. The negative factors are the surprising strength of the dollar index at 104.86, the resilient bond yields in the US (the 10-year at 4.26), and now, the Brent crude at $90. The spike in crude is a major macro concern. In this scenario, the FIIs are likely to continue selling in the cash market. On the positive side, the sustained DII buying is imparting strength to the market. DIIs have bought stocks worth ₹5934 crores in the cash market during the last three trading days of September. Retail also is buying, and this ‘ buy on dips’ strategy has worked. The rally in IT stocks has contributed to the resilience of the market. IT and the fairly valued banking stocks, particularly the leading private banks, have the potential to support the market. But investors have to be cautious about the headwinds, particularly the rising crude."
Jupiter Life Line Hospitals Ltd, a multi-speciality healthcare provider, has launched its initial public offering (IPO) for public subscription today, September 6. The IPO offers shares at a price range of ₹695-735 per share and will remain open for investors until Friday, September 8.
The total issue size of the Jupiter Life Line IPO is ₹869.08 crore, consisting of a fresh issue of equity shares valued at ₹542 crore and an Offer For Sale (OFS) comprising 44.5 lakh equity shares by promoter group entities and other shareholders. (Read More)
Basilic Fly Studio Limited's recent initial public offering (IPO) witnessed robust demand, garnering a subscription rate of 286.6 times. Investors submitted bids for a staggering 146 crore equity shares, far surpassing the issue size of 50.96 lakh shares. The IPO, open from September 1 to September 5, 2023, aimed to raise ₹66.35 crore.
Data from NSE reveals that retail individual investors showed substantial interest by subscribing to 84.5 crore shares. Meanwhile, qualified institutional buyers (QIBs) acquired 13.53 crore shares, with foreign institutional investors (FIIs) purchasing 4.99 crore shares and domestic financial institutions acquiring 1.66 crore shares. The remaining 6.88 crore shares in the QIB segment were snapped up by 'others'. (Read More)
High networth investor (HNI) and retail inflows into midcap and small cap stocks have helped these constituents steal the thunder from large-caps in the latest market rally from March to date.
The Nifty Smallcap 100 index has surged 40.53% while the Nifty Midcap 100 has risen 35% from 20 March through 5 September. In the same per-iod, the Nifty has delivered a relatively modest 15%, prom-pting market veterans like Deven Choksey and Shankar Sharma to sound a note of caution to retail investors amid the stellar rally in smallcaps. (Read More)
Indian technology major Tata Consultancy Services on Tuesday said it has entered a multi-year partnership with agriculture and bio-energy company Lantmännen Ekonomisk Förening (Lantmännen) to transform their IT infrastructure.
TCS on Tuesday said they will harmonise Lantmännen's digital workplace to support hybrid working for all users, and transform Lantmännen's global service desk to deliver 24x7 multi-lingual support.
The IT company will also leverage its strong local presence in Sweden and across the Nordics, to deliver the services.
TCS Nordics Regional Head Avinash Limaye said: "This strategic partnership with Lantmännen... will leverage the power of digital innovation and collaboration to build more resilience and agility in their infrastructure landscape. (PTI)
Jio Financial Services faces removal from Nifty50 and other indices on September 7, post its demerger from the Reliance Group. TCS partners with Lantmännen for IT infrastructure overhaul. Vedanta reopens copper operations in Zambia after a government decision in its favor. SpiceJet progresses with equity share issuance to settle dues, with an NCLT hearing deferred. IDBI Bank appeals against Zee Entertainment's merger approval. Jupiter Wagons gains approval to raise ₹700 crore through QIP. Paytm sees a 20% YoY growth in transacting users and disburses loans worth ₹5,517 crore. Tata Power Renewable Energy to set up 12 MW solar project for Tata Motors. Lighthouse Advisors divests stake in Bikaji Foods, and Patel Engineering secures a ₹1,275.30 crore contract in Madhya Pradesh. (Read More)
The Securities and Exchange Board of India (Sebi) is working on accelerating the settlement of shares to one hour from the existing (T+1) settlement window, chairperson Madhabi Puri Buch said on Tuesday.
“India is the first jurisdiction in the world that has moved to T+1 (trade plus one day) settlement period. Now, we are talking about one-hour settlement which will be a stepping stone to instantaneous settlement.
“It will be within a reasonably short period of time, something that is traditional, morphed into something which is very modern and contemporary," the Sebi chief said during her address at the Global Fintech Summit in Mumbai. The implementation of the new settlement window, however, is likely by March 2024, said a person in the know seeking anonymity. (Read More)
Anil Agarwal's Vedanta Resources Ltd. and Zambian government-owned ZCCM Investments Holdings Plc (ZCCM-IH) have resolved their disputes over a Zambian copper mining complex, Bloomberg reported.
The Zambian Konkola Copper Mines (KCM) were placed under provisional liquidation in 2019 by the former Zambian President Edgar Lungu's administration, who accused Vedanta of dishonesty about expansion plans and tax payments, initiating a series of legal battles. President Hakainde Hichilema, Lungu's successor, ended a four-year legal battle over its ownership. (Read More)
Tata Power Renewable Energy Ltd (TPREL) will set up a 12 megawatt (MW) on-site solar project at Tata Motors' commercial vehicle manufacturing facility in Maharashtra.
In a statement, TPREL said it has already signed a power purchase agreement (PPA) with Tata Motors in this regard.
"Tata Motors and Tata Power Renewable Energy Limited (TPREL) have entered into a PPA to develop a new 12MWp on-site solar project at Tata Motors' commercial vehicle manufacturing facility in Pune," the statement said.
The project will generate 17.5 million units of electricity per annum mitigating over 12,400 tonnes of Co2 per annum. (PTI)
On Tuesday, Arm Holdings Ltd, a subsidiary of SoftBank Group, commenced its highly anticipated initial public offering (IPO) roadshow. The chip designer is determined to persuade investors of its valuation potential, targeting a staggering $52 billion, marking this year's largest share sale.
The roadshow embarked on its journey in Baltimore, a strategic choice that highlights the importance of influential asset manager T Rowe Price, given their headquarters in the city. This move underscores the pivotal role played by T Rowe Price in major IPOs. (Read More)
Mobility solutions provider Jupiter Wagons Limited (JWL) on Tuesday said it has received the board's approval to raise ₹700 crore through the Qualified Institutional Placement (QIP) route.
The funds will be raised through the issuance of equity shares, with a total value of ₹700 crore.
The move is aimed at bolstering JWL's resources for expansion, subsidiary investments, joint ventures, capital adequacy enhancement, and various manufacturing plans, it said in a statement.
"The objective (of raising funds) is to further strengthen the company's financial position and solidify our market presence and leadership position," said JWL Managing Director Vivek Lohia. (PTI)
Six of the eight Bermuda and Mauritius-based public funds alleged to have been used by people with ties to the Adani Group for buying shares of the conglomerate’s listed companies, have been shut, according to regulatory filings in these countries accessed by Mint, posing a challenge for the Securities and Exchange Board of India (Sebi) in determining the ultimate beneficiaries of these investment vehicles.
The Organized Crime and Corruption Reporting Project (OCCRP), a global network of investigative journalists, recently reported that people with ties to the Adani family secretly held significant stakes in group entities in possible violation of the country’s law on maximum ownership by promoters in listed entities, through some of these funds. (Read More)
Jio Financial Services Ltd, the spun-off non-banking financial services division of the Mukesh Ambani-led Reliance Group, is set to be removed from the Nifty50 and other indices as announced by the National Stock Exchange (NSE) on Tuesday, with the effective date being September 7.
This move comes after NSE Indices Limited, in a press release issued on July 17, 2023, had previously declared the inclusion of Jio Financial Services Limited (JIOFIN or the demerged entity) into various indices, starting from July 20, 2023 (at the close of trading on July 19, 2023). Following the successful demerger of the financial services business from Reliance Industries Limited (RELIANCE), JIOFIN was subsequently listed on August 21, 2023, on the National Stock Exchange Ltd. (NSE). (Read More)
Major stock indexes on Wall Street closed lower Tuesday, giving back some of their recent gains as traders returned from a long holiday weekend.
The S&P 500 fell 0.4%, while the Nasdaq composite slipped 0.1%. Both indexes were coming off their second weekly gain. The Dow Jones Industrial Average lost 0.6%.
The selling was widespread, with decliners outnumbering advancers by more than 3 to 1 on the New York Stock Exchange.
Losses in industrial, health care and financial stocks were the biggest drag on the benchmark S&P 500. Cintas fell 1.7%, Merck & Co. dropped 2.1% and JPMorgan Chase closed 1.1% lower.
Technology stocks were the biggest bright spot. Microsoft rose 1.5%.
Energy stocks rose along with crude oil prices after Saudi Arabia and Russia said they will extend their voluntary production cut of 1 million barrels of oil a day through the end of the year. U.S. crude oil prices rose 1.3% and Chevron rose 1.3%. (AP)
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