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PremiumShare Market Updates: Sensex and Nifty closed around 0.9% higher as Metal, IT, Auto, and Bank indices rallied, while the Pharma index came under pressure on the back of encouraging GDP fitures.
India's gross domestic product (GDP) grew by 7.8 per cent in the April-June quarter of current fiscal (2023-2024), compared to a growth of 6.1 per cent in the previous January-March quarter of fiscal 2022-23, according to official data shared by the National Statistical Office.
Meanwhile, India's fiscal deficit crossed ₹6 trillion, or a third of the ₹17.9 trillion estimated in the union budget for FY24, data from the Comptroller General of Accounts (CGA) showed on Thursday.
Investors now await the U.S. jobs report due later in the day. A rise in unemployment could allow the Federal Reserve to pause rate hikes at its September meeting.
Indian shares on Friday saw broad-based gains after data showed the economy grew at its quickest pace in a year in the first quarter, which could boost foreign investor inflows. The market witnessed a broad-based buying with most sectors climbing in today's session.
The Nifty 50 index gained 181 pts to close the week at 19,435, while the S&P BSE Sensex increased 550 pts to 65,387. Today's rally ensured that the indices ended with gains in this week's trading.
Official data on Thursday showed that India's GDP expanded 7.8% on an annual basis in the June quarter, while concerns over dry weather conditions persisted.
Investors now await the U.S. jobs report due later in the day. A rise in unemployment could allow the Federal Reserve to pause rate hikes at its September meeting.
Almost all indices climbed in today's trading with Metal rising almost 3%, with Bank, IT, and Auto gaining more than a per cent each. The Pharma index shed 0.5% and was the index to have ended lower.
Jio Financial, NTPC and ONGC topped the stock charts and added more than 4% each. Tata Steel and JSW Steel climbed 3.5% each. Among laggards, Cipla and Dr Reddy's dropped more than 0.5% each.
Asian shares edged higher on Friday as China stepped up efforts to support its housing sector and stabilise the yuan, though investors remained cautious ahead of U.S. jobs data that could make or break the case for further rate hikes.
Japan's Topix index closed at a 33-year high in a broad rally as investors looked for bargains and scooped up undervalued stocks, with Sony Group and financials leading the gains.
The broader Topix climbed 0.76% to its highest close since July 1990. The index advanced 3.7% for the week, its sharpest gain since the week ended Oct. 7, 2022. The Nikkei rose 0.28% posted a weekly gain of 3.44%.
China shares rose led by property stocks, as Beijing rolled out more measures to support the sputtering housing sector and factory activity surprisingly expanded last month.
China's blue-chip CSI300 Index closed up 0.7%, while the Shanghai Composite Index gained 0.4%. The Hong Kong market was closed due to typhoon Saola. Dor the week, China's CSI300 Index rose 2.2%, while Hong Kong's benchmark Hang Seng Index added 2.4%.
European shares struggled for direction on Friday, as support from energy and mining stocks was offset by weak performances in German copper producer Aurubis following a profit warning and Volkswagen after a brokerage downgrade.
The blue-chip FTSE 100 index rose on Friday led by heavyweight oil and miner stocks, although a drop in insurer Direct Line's shares pressured midcaps, ahead of a highly anticipated U.S. jobs reading.
The International Monetary Fund warned that emerging markets must grapple with post-pandemic risks from tougher global financial conditions, the fragmentation of world trade into rival blocs and the impact of climate change.
Those forces are “transforming the economic landscape and making the world more volatile and uncertain," Gita Gopinath, the fund’s No. 2 official, said at a central banking conference in Cape Town, South Africa on Friday.
Addressing those interconnected challenges will require an array of tools, she said, including more efficiently raising revenue and spending, diversifying trade, accelerating reforms to attract more investment, and implementing fiscally and socially sustainable climate strategies. (Bloomberg)
he government on Friday launched a new scheme called ‘mera bill mera adhikaar’ to encourage consumers to insist on invoices at the time of purchase.
The scheme introduced in Haryana, Assam, Gujarat and the union territories of Dadra and Nagar Haveli, Daman and Diu and Puducherry offers consumers a chance to win ₹1 crore, ₹10 lakh and ₹10,000 as incentive.
The minimum value for invoices to be considered for the draw has been kept at ₹200. All invoices issued by GST registered sellers will be eligible for the scheme and maximum 25 invoices will be considered from an individual in a month. (Read More)
Sovereign Gold Bonds (SGBs) are issued for a tenure of eight years but one can redeem these gold bonds prematurely after five years. The premature redemption window opens every six months.
The Reserve Bank of India (RBI) issued a calendar detailing SGB tranches premature redemption during the period October 01, 2023, to March 31, 2024. (Read More)
Gensol Engineering shares have emerged as one of the standout multibagger stocks in the recent history of the Indian stock market. Despite being a small-cap stock with a market capitalization of ₹2,346 crore, it has managed to double shareholders' investments in the last six months, yielding an impressive return of 110 percent.
In another noteworthy development for shareholders, Gensol Engineering has informed the Indian stock market exchanges that it intends to propose the issuance of bonus shares during its upcoming board meeting scheduled for September 5th, 2023. This announcement adds an interesting dimension to the company's growth story, further engaging the interest of investors. (Read More)
Genus Power shares were locked in 5% upper circuit on Friday's session after the company's arm bagged order worth ₹2,247.37 crore for the supply of smart meters. Genus Power share price opened at ₹271.60 apiece on BSE.
In its exchange filing, the company stated that its step-down arm has been issued a letter of award for ₹2,247.37 crore for the appointment of Advanced Metering Infrastructure Service Providers (AMISPs), which includes design of the Advance Metering Infrastructure (AMI) system with supply, installation, and commissioning with FMS of 24.18 Lakh Smart Prepaid Metres, system metres, including OT Metres, and corresponding energy accounting under the DBFOOT model. (Read More)
Jupiter Life Line Hospitals IPO: Jupiter Life Line Hospitals has announced the price band and other details of its forthcoming initial public offering (IPO).
Jupiter Life Line IPO price band has been fixed at ₹695 - 735 per share. The IPO will open for subscription on September 6 and close on September 8. The anchor book for the Jupiter Life Line IPO will open on September 5.
The company has reduced the fresh issue size in the IPO to ₹542 crore from ₹615 crore earlier. (Read More)
An Amazon shareholder has filed a lawsuit against founder Jeff Bezos and the Amazon board alleging directors failed to fully vet a decision to award launch contracts for the company's Project Kuiper satellite project to Blue Origin, Bezos's space company.
The lawsuit filed by Cleveland Bakers and Teamsters Pension Fund earlier this week claims that the Amazon board awarded contracts worth billions of dollars to Blue Origin and did not consider rival Elon Musk-owned SpaceX as an alternative launch provider despite its track record.
Amazon's Project Kuiper is a planned network of over 3,000 satellites designed to beam broadband internet to remote regions. That makes it a rival to Musk's Starlink. (Reuters)
Maruti Suzuki's share price displayed impressive performance by surging over 2 percent to reach a new all-time high of ₹10,216.65 during intraday trading on September 1st, as reported on the BSE. The stock initially opened at ₹10,000, slightly lower than the previous closing price of ₹10,007.10. However, it swiftly gathered momentum, hitting this historic peak.
Around 1 pm, Maruti Suzuki's stock was trading at ₹10,150.05 on the BSE, reflecting a 1.43 percent increase.
It's noteworthy that on a monthly basis, the stock has maintained its positive momentum since April of the current year. Over the last six months, this heavyweight stock has recorded a gain of nearly 16 percent, outperforming the equity benchmark Sensex, which experienced an approximately 10 percent gain during the same period. (Read More)
Stock market experts have noted that Exxaro Tiles is currently trading at appealing valuations when compared to its peers such as Kajaria Ceramics, Cera Sanitaryware, Somany Ceramics, and others. With expectations that the real estate sector will perform well in the coming quarters, the market sentiment has turned bullish on this relatively smaller tiles manufacturer.
These experts have suggested that the stock could maintain its upward trajectory, potentially reaching levels of ₹170 per share in the near term. This outlook reflects optimism about the company's growth prospects in the context of the broader real estate industry, which is expected to drive demand for its products.
India’s splurge on cheap Russian crude may be over, as New Delhi’s traditional suppliers in the Middle East step back in with attractive conditions.
“Our dependence on Russian oil is going to decrease sharply," Oil Minister Hardeep Puri said in an interview. “The cost viability from the Gulf is much more attractive now."
India’s consumption of Russian crude has soared since President Vladimir Putin’s invasion of Ukraine in February last year, ousting Saudi Arabia and Iraq from the top spots. From negligible levels, it soared to account for nearly half of supplies in May.
However, rising prices have squeezed the discount on Russian crude and limited the attractiveness of those spot purchases, making other sources, some with term contracts, appealing once again. Moscow has also said this week it plans to extend export curbs. (Bloomberg)
Mahindra & Mahindra (M&M) on Friday said its total automotive wholesales increased by 19 per cent to 70,350 units in August.
The company's total dispatches to dealers stood at 59,049 units in August 2022.
The Mumbai-based auto major's passenger vehicle sales in the domestic market rose by 25 per cent to 37,270 units last month as against 29,852 units in April last year, the auto major said in a statement.
"We clocked our highest-ever SUV domestic sales of 37,270 (units) in a month with a growth of 26 per cent...While demand for our key SUV brands continue to be strong, we are keeping a close watch on the availability of semiconductors and select parts, for sustained and smooth scale up," M&M President, Automotive Division Veejay Nakra said. (PTI)
Years after managing two different verticals of the company, Ola founder and CEO Bhavish Aggarwal is mulling over to appoint a CEO for its cab business reported Economic Times.
The new CEO, possibly an ex-Unilever executive, is likely to join the company early next week, reported Economic Times citing sources. Till now, CEO Bhavish Aggarwal has remained the CEO of the company and managed its cab business along with e-scooters verticals. (Read More)
In the face of persistent concerns regarding inflation potentially impeding global economic growth, Moody's Investors Service has identified India as a "pocket of resilience" in this challenging scenario. Experts from Moody's have emphasized the favorable conditions marked by strong growth in countries such as India and Indonesia for the current year, as reported by CNBC.
Moody's anticipates a global slowdown in growth, as highlighted by Marie Diron, Managing Director for Global Sovereign and Sub-Sovereign Risk at Moody's Investors Services during discussions with CNBC. Diron also indicated that this global economic slowdown might have repercussions on Asia, impacting trade conditions and access to financing within the region. However, India's robust performance suggests it may weather these challenges more effectively than some other economies. (Read More)
The government has increased the price of natural gas to $8.60 per metric million British thermal unit (mmBtu) for September, from $7.85 in August.
However, the price of the gas from the nominated gas fields of ONGC and Oil India has been kept unchanged at the price cap of $6.5 per mmBtu.
"The price of domestic natural gas for the 1st September 2023 to 30th September 2023 is notified as $8.60/MMBTU on gross calorific value (GCV) basis," said the notification dated 31 August. (Read More)
BSE Ltd made an announcement on Friday that its board has given the green light to enhance the offer price for its planned share buyback program and has additionally established the record date for the initiative. The revised BSE share buyback price has been increased to ₹1,080 per share, up from the previous ₹816.
Furthermore, the BSE board has set the record date for the proposed share buyback on September 14, 2023.
The revised buyback price of ₹1,080 represents a 1.62% increase from the closing price on Thursday, which stood at ₹1,062.75 per share. It's worth noting that on Friday, the BSE share price exhibited notable growth, surging by over 4% to reach a 52-week high of ₹1,122.00 per share, surpassing the buyback price. (Read More)
Mohit Ralhan, Chief Executive Officer TIW Capital: The GDP growth came in at a solid 7.8% YoY in Q1 FY 2024. Both consumption and investment activity grew at a robust rate. This growth is quite significant since it has been achieved even though the government expenditure declined compared to Q1 FY 2023 and weak global demand weighed on exports. Services growth was led by financial and real estate services which grew at 12.2% YoY. Even other services like trade, hotel & transport grew at 9.2% YoY indicating the solid revival in contact intensive services post Covid. Construction also grew at 7.9% YoY. Manufacturing and mining also grew at 4.7% and at 5.8% respectively, making the up move quite broad based. Although there was a slowdown in agriculture and a sparse rainfall distribution in August may make its revival more challenging, the growth in major parts of economy has more than covered for this, confirming India's long term growth trajectory.
The government has sought an expression of interest for selling its full equity holding in Indian Medicines Pharmaceutical Corporation Limited (IMPCL) under the Ministry of Ayush, through strategic disinvestment where the government will give up its ownership and transfer management control to a private company.
The Department of Investment and Public Asset Management (DIPAM) issued an information memorandum where the government intends to sell its holding of 98.11% and the Kumaon Mandal Vikas Nigam Limited, an Uttarakhand government unit, holding the rest, at the price found through bidding. (Read More)
According to analysts at Nuvama Research, the estimated value of the project is Rs10,000 crore to ₹12,000 crore, taking its year-to FY24 order inflows to Rs30,000 to ₹34,000 crore versus ₹23,500 crore in FY23. Also, with the likely increase in demand for thermal power, there is a case for higher thermal capex and this bodes well for BHEL’s future earnings.
“Accordingly, we reckon fresh thermal ordering over the next four–five years at ~30GW, of which BHEL could bag 50% in our view. This implies ~3GW/year of thermal order inflow for BHEL, in addition to the base order inflow of Rs15,000–20000 crore, potentially driving an EPS CAGR of 83% over FY23–26E," added the Nuvama report. EPS is earnings per share. (Read More)
Satish KUMAR and Abbas PUNJANI from Incred Equities recommendations on Vinati Organics: Solid products; growth to resume in FY25F
ADD - Upgrade | INR1,847 tp:INR2,111
■ Vinati Organics (VOL) has one of the best earnings growth outlooks, aided by a likely rise in ATBS margin and capacity expansion-driven volume growth.
■ IBB poses some risk, but it’s not as important as ATBS for Vinati Organics. IBB’s margin may fall as toluene prices are likely to rise.
■ We value Vinati Organics at 41x its one-year forward FY25F EPS to arrive at a higher target price of Rs2,111. Upgrade our rating on the stock to ADD.
ITD Cementation India's stock price surged impressively by over 14% on Friday, reaching a new 52-week high. This surge was attributed to the company's successful acquisition of a substantial order valued at ₹3,290 crore. The shares of ITD Cementation experienced a remarkable increase, peaking at ₹249.40 per share on the BSE. (Read More)
India's factory growth accelerated at the fastest pace in three months in August, driven by strong growth in new orders and output, according to a private survey that however also showed job creation was at a four-month low.
That is good news for Asia's third-largest economy, which grew 7.8% in April-June, slightly above a Reuters forecast of 7.7%, led by robust demand, and was expected to remain a bright spot in the global economy.
The Manufacturing Purchasing Managers' Index, compiled by S&P Global, jumped to 58.6 last month from 57.7 in July, the highest since May and confounding a Reuters poll expectation for a drop to 57.5.
This marked a sustained expansion, with 26 months above the 50-mark separating growth from contraction, the longest stretch since March 2020 when pandemic-induced lockdowns were imposed. (Reuters)
Brightcom Group's share price faced a lower circuit limit, remaining stagnant as the stock commenced trading at its designated 5 percent lower price band of ₹16.08 on the BSE on Friday. This development marks the continuation of a trend, as Shankar Sharma's portfolio holding, Brightcom Group, has seen its shares consistently hitting the lower circuit for the past eight consecutive trading sessions. Over the course of the preceding months, the stock witnessed a decline of 20 percent in July and a further 33 percent drop in August. (Read More)
Bajaj Auto Ltd, the renowned manufacturer of two and three-wheelers, has reported a decline of 15% in its total sales for the month of August 2023 compared to the same period in the previous year. The company's cumulative vehicle sales for August 2023 reached 3,41,648 units, indicating a decrease from the 4,01,595 units sold in the corresponding month of the prior year.
Within the domestic market, total sales experienced a 20% reduction, with the figure dropping to 2,05,100 units from the previous count of 2,56,755 units in August 2022. Simultaneously, exports also faced a 6% decline, showing a decrease from 1,44,840 units in August last year to 1,36,548 units in August 2023, as measured on a year-on-year basis. (Read More)
Sensex Today Live | Share Market Updates: Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: Headwinds stronger than tailwinds have pushed the Nifty down by 406 points in August. Some headwinds like weakening monsoon and sluggish global growth are likely to weigh on markets. And now there is another headwind coming from the Brent crude rising to $87. FPI flows in the cash market turned negative in August after strong positive flows in the previous three months. These headwinds will constrain a sustained recovery in markets.
Long-term investors can utilise weakness in the market to buy high quality stocks in banking, capital goods and automobiles. The rally in the mid-and small-cap segment is turning unhealthy with the participation of many low-grade stocks. This trend is unlikely to last long."
The ATF prices have surged to the highest level since December 2022. Oil marketing companies on Friday increased jet fuel prices (ATF) by 14% to ₹1.12 lk/kl in Delhi. Consequently, the air travel may become expensive during the festive season. There has been a rise of roughly 24% in the past two months.
Following Dell Technologies' upward revision of its full-year revenue and profit projections, the company's shares experienced a notable 8% surge during after-hours trading on Thursday.
Dell has projected third-quarter revenue to fall within the range of $22.5 billion to $23.5 billion, surpassing analysts' predictions of $21.67 billion, as indicated by data from Refinitiv. Additionally, the company anticipates earnings per share (EPS) to be in the vicinity of $1.45, with a potential fluctuation of 10 cents in either direction. This outlook compares favorably against Reuters' reported estimates of $1.38 for EPS. (Read More)
The spotlight will be on Kama Holdings' shares today as its board of directors convenes to deliberate and authorize the issuance of bonus shares. The stock, listed on the BSE with a market capitalization of ₹9,436 crore, has formally communicated its intention to offer bonus shares to the Indian exchange. This proposal is set to be discussed during the company's scheduled board meeting on Friday, September 1st, 2023, which is today. (Read More)
According to sources cited by CNBC-TV18 on August 31, there are indications that Torrent Pharma, headquartered in Ahmedabad, has submitted a preliminary bid with a non-binding nature to acquire a stake from the promoters of the prominent pharmaceutical company, Cipla.
In the upcoming weeks, Torrent Pharma is expected to make a decision regarding a formal binding offer. Alongside this, the company is reportedly engaged in discussions with three to four private equity firms and foreign institutions. These conversations are centered around exploring various funding alternatives for the potential offer.
At present, both Torrent Pharma and Cipla have been approached for their comments on the matter. However, as of now, their responses are awaited.
JSW Cement is planning an initial public offering (IPO) in 2024 to raise as much as ₹4,000 crore, Parth Jindal, managing director of JSW Cement Ltd, said in an interview.
“In 2024, we are planning to take this company public, for which we will be filing the DRHP (draft red herring prospectus) in the next six months. We will be timing the market listing after the national elections," Jindal added.
“We plan to raise ₹3,500-4,000 crore through the IPO route. We are looking at diluting 10-15% in round one, and then over the next two years, dilute the entire 25% that we are obligated to do under the Sebi (Securities Exchange Board of India) guidelines. It will give us enough ammunition to fulfil our organic ambitions." (Read More)
Reliance Industries secures media rights for cricket matches, Torrent Pharma eyes stake in Cipla, Fitch affirms ratings for SBI and Bank of Baroda, Jio Financial removed from S&P BSE indices, potential block deals for Five Star Business Finance, Fitch gives stamp of approval to ONGC, IDBI Bank seeks insolvency proceedings against Zee Entertainment, Central Bank of India raises ₹1,500 crore, Aditya Birla Fashion plans to raise ₹750 crore, Jalan Kalrock Consortium invests ₹100 crore in Jet Airways. (Read More)
The Indian Express, drawing from information obtained through its Pandora Papers investigation, has confirmed the association between the offshore shell companies mentioned in the Financial Times report and the Indian conglomerate.
According to the initial Financial Times report, two offshore shell companies registered in the British Virgin Islands (BVI) were identified as key tools employed for investing in Adani stocks. The Indian Express report corroborates this by establishing a direct link between these two shell firms and the Adani group. This connection highlights the complex financial arrangements and mechanisms that some conglomerates employ, raising questions about transparency and regulatory compliance. (Read More)
The Indian government's fiscal deficit or the gap between spending and receipts met through borrowings crossed ₹6 trillion, or a third of the ₹17.9 trillion estimated in the union budget for FY24, data from the Comptroller General of Accounts (CGA) showed on Thursday.
The fiscal deficit stood at 33.9% of the full-year target, aided by strong tax and non-tax revenue receipts. Overall revenue receipts in the first four months of this fiscal stood at ₹7.6 trillion or 29% of the full-year target. (Read More)
Sunil Rongala, Senior Vice President, Head – Strategy, Innovation & Analytics, Worldline India on UPI transactions for August crossing 10 billion mark: At 10 billion, there is still a lot of room for UPI transactions to grow. The data shows that UPI P2M transactions are growing at a pace of over 100% on a YoY basis and have a higher share than P2P transactions. Over time, P2M transactions will drive UPI transactions growth and it will be no surprise if UPI transactions hit 20 billion a month in 18-24 months.
India's gross domestic product (GDP) grew by 7.8 per cent in the April-June quarter of current fiscal (2023-2024), compared to a growth of 6.1 per cent in the previous January-March quarter of fiscal 2022-23, according to official data shared by the National Statistical Office.
On a year-on-year basis, the GDP print recorded in the correpsonding period last year was 13.1 per cent. The Q1FY24 economic growth is the highest in four quarters, largely driven by a robust services sector, and strong capital expenditure. (Read More)
The Organised Crime and Corruption Reporting Project (OCCRP) has revealed that Vedanta engaged in a discreet lobbying effort aimed at undermining critical environmental regulations during the COVID-19 pandemic. In an article published on Thursday, the OCCRP detailed how Vedanta Group pursued this strategy.
According to the OCCRP's report, Anil Agarwal, the Chairman of Vedanta Group, communicated with former environment minister Prakash Javadekar in January 2021. During this exchange, Agarwal suggested that the Indian government could enhance the momentum of the country's swift economic recovery by permitting mining companies to escalate their production by up to 50%. This proposal came with a stipulation that these companies wouldn't be obligated to secure fresh environmental clearances.
Additionally, the OCCRP article revealed that Vedanta's subsidiary, Cairn India, successfully orchestrated efforts to eliminate public hearings for exploratory drilling in oil blocks that it had secured through government auctions. This discreet lobbying campaign, as outlined in the report, had the aim of bypassing these hearings in relation to the oil business's operations. (Read More)
Viacom 18 has secured the television and digital broadcasting rights for the Indian cricket team's home matches over a span of five years. The media rights for all matches conducted by the Board of Control for Cricket in India (BCCI) have been acquired by Viacom18 at a total cost of ₹5963 crore. The breakdown of this amount includes ₹3101 crore for digital rights, translating to ₹35.23 per match, and ₹2862 crore or 32.52 crore per match for television rights.
In a tweet, Jay Shah, the Secretary of BCCI, conveyed his congratulations to Viacom18 for emerging as the victor in obtaining the media rights for both traditional television broadcasting and digital platforms. He expressed optimism about the continued growth of Indian cricket in these spheres, highlighting the extension of the partnership beyond events like the Indian Premier League (IPL) and the World Test Championship. Shah emphasized the collective effort to captivate the passion and interest of cricket enthusiasts. (Read More)
A late-afternoon fade left stocks modestly lower Thursday as Wall Street closed out its first losing month since February.
The S&P 500 gave up an early gain to close 0.2% lower. The benchmark index ended August down 1.8%, though a four-day winning streak going back to last week helped chip away at the severity of the monthly decline.
The Dow Jones Industrial Average fell 0.5%, while the Nasdaq composite eked out a 0.1% gain.
Market jitters over the possibility that the Federal Reserve might have to keep interest rates higher for longer following reports showing the U.S. economy remains remarkably resilient led to the market's pullback in August after what had been a banner year. This week, reports on job openings, consumer confidence and inflation stoked hopes on Wall Street that the Fed may hold rates steady at its next policy meeting in September.
That helped limit the market's losses for August. The S&P 500, which soared 19.5% through July, remains 17.4% higher for the year, while the tech-heavy Nasdaq is up 34.1%. The Dow is up 4.8%. (AP)
