PremiumShare Market Updates: The Indian stock market reached record highs at the start on Thursday but scaled back to end with marginal gains as investors were left guessing on the future rate hike trajectory across the globe.
Wholesale price inflation remained in the negative territory for the fifth straight month in August at -0.52%. In July, the WPI inflation was at -1.36%.
Europe's markets were treading water in early trading on Thursday, as investors waited on a knife-edge decision from the European Central Bank on whether to ratchet up euro zone interest rates for a 10th straight meeting.
Asian stocks rose on Thursday, as traders figured a small upside surprise for U.S. inflation was unlikely to push up interest rates, while the euro was firm leading in to a European Central Bank meeting where expectations lean toward a rate hike.
The stock market opened on a positive note but selling pressure ensured that most of the indices close with just marginal gains. Both the Sensex and Nifty indices soared to their all-time highs as Sensex touched 67,771 and Nifty 20,167 within the first few minutes of opening.
The Nifty 50 closed above 20,100 as it gained 33 pts, while the S&P BSE Sensex ended at 67,519, a climb of 52 points. Twelve of the 15 Nifty broad-based sectoral indices ended with gains in today's session.
Metal, PSU Bank, Realty and Energy scaled up by around a per cent and led the sectoral indices. FMCG, Media and Consumer Durable ended with marginal losses.
UPL and Hindalco jumped more than 3% each. ONGC, M&M and Tata Steel were among other top gainers. Asian Paints and ITC were the biggest laggards.
Asian stocks rose on Thursday, as traders figured a small upside surprise for U.S. inflation was unlikely to push up interest rates, while the euro was firm leading in to a European Central Bank meeting where expectations lean toward a rate hike.
Japan's Nikkei share average jumped to a one-week closing high as data showing underlying U.S. inflation remained on its slow, downward trajectory cemented expectation that the Federal Reserve would leave interest rates unchanged next week. The Nikkei index rose 1.41%. The broader Topix rose 1.13%.
China and Hong Kong stocks ended largely flat with auto stocks trimming losses after the European Union's anti-subsidy probe, while investors continued to look for policy measures and signs of economic recovery.
China's blue-chip CSI 300 Index and the Shanghai Composite Index closed roughly flat, while Hong Kong's benchmark Hang Seng Index edged up 0.2%.
European stocks were steady ahead of the European Central Bank’s rates decision and as mounting stagflation fears weighed on sentiment.
UK's FTSE 100 opened higher after U.S. inflation data bolstered bets that the Federal Reserve will keep interest rates steady next week, while Melrose and Unite Group fell in ex-dividend trading.
The subscription status of the Samhi Hotels IPO on its first day of opening (Thursday, September 14) reveals that it has been subscribed by 5% thus far. The subscription period for the Samhi Hotels IPO commenced today and is scheduled to conclude on Monday, September 18.
On the first day, the Samhi Hotels IPO experienced relatively subdued investor interest. The retail investors' portion of the IPO was subscribed at 25%, the Non-Institutional Investors (NII) portion saw a subscription rate of 1%, and the Qualified Institutional Buyers (QIB) portion has not received any subscriptions at this point. (Read More)
A special PMLA court here on Thursday remanded Jet Airways founder Naresh Goyal in 14-day judicial custody in a money laundering case linked to an alleged fraud of ₹538 crore at the Canara Bank.
The court accepted Goyal’s request to send him to the Arthur Road jail in South Mumbai.
The Enforcement Directorate (ED) arrested Goyal on September 1 under the Prevention of Money Laundering Act (PMLA) following a long session of questioning at the central agency's office here.
The 74-year-old businessman was produced before the special judge for cases under PMLA, MG Deshspande, at the end of his ED remand on Thursday. (PTI)
Leading credit card company Mastercard announced on Thursday, September 14, that it has appointed Rajnish Kumar, former Chairman of the State Bank of India (SBI), as the Chairman of Mastercard India.
Kumar will guide Mastercard’s South Asia executive leadership team led by Gautam Aggarwal, Division President for South Asia & Country Corporate Officer, India, in navigating the domestic payments landscape, Mastercard said in a statement. (Read More)
Packaged foods company General Mills India on Thursday said it is set to invest ₹100 crore to set up its second manufacturing facility for Pillsbury baking mixes in India.
On Thursday, the company performed a groundbreaking ceremony for the new plant which will serve as the epicentre for manufacturing Pillsbury baking mixes for the Indian market and is expected to be operational by August 2024. (Read More)
Ethnic apparel retailer Sai Silks (Kalamandir) Ltd on Thursday said it has fixed a price band of ₹210-222 per share for its ₹1,201 crore initial share sale, which will open for public subscription on September 20.
At the upper end of the price band, the IPO will fetch about ₹1,201 crore.
The bidding for the anchor investors will open on September 18. Investors can bid for a minimum of 67 equity shares and in multiples of 67 equity shares thereafter, the company said.
The offer of Sai Silks (Kalamandir) Ltd (SSKL) comprises a fresh issue of equity shares worth up to ₹600 crore and an Offer for Sale (OFS) component of up to 2.70 crore equity shares by promoters and promoter entities. (PTI)
Foreign investors pulled out funds from Japanese stocks last week amid rising U.S. yields and ongoing concerns over slowdown in top trading partner China.
Data from Japanese exchanges showed foreign investors sold local shares worth a net 719.58 billion yen during the week ended Sept. 8, after about 979.35 billion yen of purchases in the prior week.
They exited a net 762.55 billion yen of cash equities but purchased derivatives worth about 42.22 billion yen last week.
Foreign investors are still net buyers of about 7.87 trillion yen worth of Japanese shares so far this year, compared with about 1.96 trillion yen worth of net selling last year. (Bloomberg)
NMDC's share price surged by over 5 percent, reaching a new 52-week high of ₹150 during intraday trading on Thursday, driven by a significant increase in iron ore prices. The stock began the day at ₹142.90, surpassing its previous closing price of ₹142.25, and registered a substantial gain of 5.45 percent, reaching a one-year peak of ₹150.
In a filing with the Bombay Stock Exchange (BSE) on Thursday, September 14, the state-owned company, which also happens to be India's largest iron ore miner, announced the revision of iron ore prices. Effective from September 14, 2023, the company set the prices at ₹4,950 per tonne for lump ore and ₹4,210 per tonne for fines. (Read More)
In its most recent communication with the stock exchange, the small-cap company, AA Plus Tradelink, has announced that it has secured a new order valued at ₹51 crore. Additionally, the company has disclosed its agreement with CNX Corporation Limited to facilitate an export order worth ₹170 crore. (Read More)
The short answer is this: diesel is the most widely available, economically feasible and efficient fuel for trucks that carry heavy loads across long distances. The alternatives, such as hydrogen fuel cells and hydrogen combustion engines still face several hurdles. The price of hydrogen needs to drop by two-thirds for it to become viable for commercial use, industry experts told Mint. Even ethanol, which currently costs around ₹68 a litre, is an expensive fuel because it is far less efficient than petrol or diesel. (Read More)
Mohit Ralhan, CEO - TIW CAPITAL views on Wholesale Price Index figures: Wholesale prices remained in deflationary territory for the fifth straight month. However, the pace of deflation declined as a decline in fuel prices moderated to -6% YoY from -12.8% in July. Food inflation continued to remain in double digits although declining on a sequential basis. It was primarily due to a 8.3% fall in vegetable prices, which came as a relief. While it's important to control food and fuel inflation as a high food and fuel inflation dampens sentiment, the sequential increase in manufactured goods prices should be taken as a positive sign. It shows that demand is picking up and manufacturers are able to take on price hikes, although it still remains small."
Signature Global, a real estate developer, is set to open its initial public offering (IPO) for subscription on Wednesday, September 20. The company has established the price range for the issue at ₹366 to ₹385 per share.
Investors will have a three-day window to participate in the Signature Global IPO, with the subscription period concluding on Friday, September 22. Additionally, the anchor book for the IPO will open on Monday, September 18.
The Signature Global IPO comprises a fresh issue of equity shares valued at ₹603 crore and an offer for sale (OFS) of shares worth ₹127 crore by its shareholder, International Finance Corporation, which is a member of the World Bank Group. (Read More)
Salesforce CEO Marc Benioff has said the company's growth in Indian market is "incredible" and exceeded all expectations, and India's approach to regulations also drew praises from the tech billionaire and philanthropist.
Benioff told PTI that Salesforce in India has "radically" expanded its engineering centre. The productivity of employees in India "has far surpassed our wildest imagination", said the top honcho of the enterprise software giant whose revenue in FY23 stood at over USD 31.4 billion dollars.
On India building a legislative framework for safeguarding tech and digital space, with the recent passage of the data protection bill in Parliament and preparations underway for Digital India Act that will include AI guardrails, Benioff said he has been very impressed with the approach of the Indian government on regulations.
"I have been extremely impressed with what the government is doing," he said, expressing hope that the approach will continue. (PTI)
The sale of a stake in Cipla Ltd. is in jeopardy as potential buyers have balked at the 1.09 trillion rupee ($13.1 billion) valuation members of the founding family are targeting for the Indian firm in a deal, according to people familiar with the matter.
Negotiations between the family members and prospective buyers, including companies in the industry and private equity firms, are no longer moving forward, as the founders are demanding about 1,350 rupees per share, the people said. The price represents a premium of about 10% over Wednesday’s close, according to Bloomberg calculations.
The family shareholder group, known in India as the promoter group, controls around 33% of Cipla’s shares, which are worth nearly $4 billion at Wednesday’s closing price. Cipla shares have climbed about 16% since CNBC-TV18 reported on July 27 the Hamied family was likely to sell part of their stake. (Bloomberg)
Wholesale price inflation remained in the negative territory for the fifth straight month in August at -0.52%. In July, the WPI inflation was at -1.36%. The negative rate of inflation in August this year is due to fall in prices of mineral oils, basic metals, chemical products, textiles and food products as compared to the corresponding month of previous year.
Grasim Industries Limited, a flagship company of the Aditya Birla Group, today unveiled the brand name of its paints business, ‘Birla Opus’. The market launch of Birla Opus is scheduled for Q4FY24. Grasim will offer a full suite of high-quality products in the decorative paints segment. (Read More)
GOLD Outlook: We expect gold to trade lower towards 58500 levels, a break of which could prompt the price to move lower to 58430 levels.
CRUDE Outlook: The outlook for crude oil remains cautiously optimistic, with potential supply deficits supported by extended output cuts from major producers and hopes of sustained strong demand amid expectations of continued low interest rates hikes.
BASE METALS Outlook: Copper prices are expected to remain influenced by central bank decisions and global demand dynamics, with continued attention on China's industrial sector.
Jupiter Hospital IPO GMP today or grey market premium is +230 similar to the previous trading session. This indicates Jupiter Lifeline Hospitals share price were trading at a premium of ₹230 in the grey market on Thursday, according to topsharebrokers.com
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Jupiter Lifeline Hospitals share price is ₹965 apiece, which is 31.29% higher than the IPO price of ₹735. (Read More)
Gaurav Bissa, VP, InCred Equities: Infosys has been a very stable name in the last few months. The stock managed to hold ground even when it came out with weak quarterly numbers suggesting the selling might have reduced. The stock was seen trading in a triangle pattern formation which led to a small consolidation on the daily and weekly charts. The stock has recently witnessed a bullish triangle breakout followed by a retest which ensured the trend remained strong. Infosys has seen a descending channel breakout in rsi on the weekly charts which is expected to give a push to the stock price towards 1630 levels. A weekly close above this will push it towards fresh life high levels.
Adani Global Pte Ltd., Singapore, a wholly-owned subsidiary of Adani Enterprises Ltd., on Thursday announced a 50:50 joint venture (JV) with Kowa Holdings Asia Pte Ltd., Singapore, for sales and marketing of green ammonia, green hydrogen and its derivatives, the company said here in a statement.
“The green hydrogen and its derivatives are to be manufactured in India under Adani New Industries Limited (ANIL). The JV will concentrate on marketing of products in Japan, Taiwan and Hawaii," the company added. (Read More)
Highlights:
Himanshu Singh - Research Analyst, Prabhudas Lilladher Pvt Ltd on Sansera Engineering (SANSERA IN): Rating: Not Rated | CMP: Rs922 | TP: NA
Visit Update - Non-ICE businesses should gain prominence
Quick Pointers:
§ Diversification towards non-auto, xEVs to help grow at a faster rate.
§ Auto expertise helping with diversification in related non-auto business.
We visited Sansera Engineering’s (SANSERA) plants including the new aerospace plant at Bengaluru. The company is witnessing increase in capacity utilization after a low utilization phase over the last few years, due to downturn in the end-user industries and is now increasing focus on diversification. SANSERA has built long-term relationships with its customer by offering high product quality controls, shorter development and delivery time and end to end product offering. The company is ramping up its aluminum business, with three new lines expected to commission over the next 12 months. The aluminum business is seeing faster growth, led by industry tailwinds helping SANSERA with its diversification objective. The new Aerospace plant will ramp-up the revenue by +50% over next two years with peak revenue potential of Rs. 3.5bn. Also, the company remains confident of growing 2x faster than the industry in its ICE segments.
While we like SANSERA’s efforts in mitigating its risk, however, significant portion of its revenue is exposed to electrification. Strong orderbook with high exposure to non-ICE segment and global trend of Europe+1 and China+1 should help cushion the risk in domestic market (as it ramps-up exports). The company has set an objective of 20-20-20; which is 20% revenue growth, 20% EBITDA margin and 20% ROCE for the medium term. The stock trades at 26.2x FY23. Not Rated.
Ashish Shah of JM Financial Institutional Securities views on Infrastructure Sector: NH awarding and construction has been weak during Apr-July’23 with only 1125km awarded and 2670km constructed. However, MoRTH targets to award/construct 13500km/13800km in FY24. We expect the awarding to gain momentum in coming months aided by strong bid pipeline of INR 688bn (as of 1st Sept-23). Given concerns over elevated debt levels of NHAI (INR 3.42tn in June-23), GOI has not been budgeting incremental borrowings for NHAI since FY23. The gap thus created has been made good by increased budgetary support leading to NHAI’s debt/total capital reducing from 1x in Mar-22 to 0.6x in June-23. Total allocation for Highways grew by 15% CAGR over FY22-24E. Monetization of national highways remains the top priority for NHAI. So far, NHAI has monetized 1614km of NH for INR 264bn via the TOT mode and 636km of NH for INR 102bn via two rounds ofInVIT. Further, NHAI has shortlisted 46 NH stretches of length 2612km with estimated valueof INR 600bn to be monetized in FY24. PNC Infratech remains our top pick.
SoftBank Group CEO Masayoshi Son was in San Francisco on Wednesday when he joined a call with his bankers in New York to make a final decision about his company's most valuable asset: chip designer Arm Holdings.
Arm's blockbuster initial public offering (IPO) was oversubscribed by 12 times, and could have been priced at $52 per share, above the indicated range of $47 to $51, people familiar with the matter said. (Read More)
Titan Company Ltd's shares have been on an upward trajectory since mid-March 2023. This Tata Group company reached its low point at approximately ₹2,355 per share in mid-March, and since then, the share price of Titan has consistently attracted positional investors as an attractive 'buy on dips' stock. In Rekha Jhunjhunwala's portfolio, this stock has consistently been achieving all-time highs, with the latest two sessions witnessing record-breaking share prices. Moreover, during this week, Titan shares have achieved record highs on three out of four trading sessions, notably on Monday, Wednesday, and Thursday. (Read More)
The initial public offering (IPO) of Samhi Hotels Limited has commenced its subscription phase today and will remain open for bidding until September 18, 2023. The company has set the price band for the Samhi Hotels IPO at ₹119 to ₹126 per equity share, with one lot of the public offering consisting of 119 shares. Samhi Hotels aims to generate ₹1,370.10 crore from its public issue, with ₹1,200 crore expected to come from the issuance of fresh shares.
In the meantime, shares of Samhi Hotels Ltd are being traded in the unlisted stock market. Market observers have noted that Samhi Hotels shares are currently commanding a premium of ₹35 in the grey market today. (Read More)
According to a statement issued to the bourses by Bombay Dyeing, Sumitomo's subsidiary Goisu Realty Private Ltd would pay for the acquisition in two parts, with ₹4,675 crore initially and ₹525 crore subsequently after the fulfilment of certain requirements.
The company in an exchange filing said that the sale was approved by the Bombay Dyeing board on Wednesday. Shareholders will still need to approve the transaction.
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: India has become the best performing large market in September with 4.2% gains. This move to record highs breaching the psychological 20000 mark on the Nifty has been achieved with an impressive 4.3% rise in Bank Nifty. Since financials account for 32 percent weightage in the Nifty, strength in financials, particularly the banks, can keep the Nifty resilient. More importantly, the valuations of banking stocks are even now fair. Strength in banking stocks can impart resilience to the market even though the overall market valuations are slowly rising beyond comfort levels.
Inflation data from the US present a mixed picture. While the CPI inflation data for August has come at 3.7% against expectations of 3.6%, core inflation was on expected lines coming at 4.3%. So the market thinking is that the Fed is likely to pause in September."
Berkshire Hathaway, led by Warren Buffett, has recently divested approximately 5.5 million shares of HP, a prominent manufacturer of personal computers and printers. This move has resulted in a reduction of Berkshire's ownership stake in the company, bringing it down from 12.2% to 11.7%.
In the course of this week, Berkshire executed the sale of HP shares, fetching approximately $158 million from the transaction. This action has effectively lowered Berkshire's total holdings in HP to approximately $3.27 billion. Despite the disclosure of this sale through a filing with the US Securities and Exchange Commission on Wednesday, the filing does not provide specific reasons for Berkshire's decision to sell these shares. (Read More)
The Biden administration has warned of more sanctions on Russia and North Korea in light of Kim Jong Un's meeting with President Vladimir Putin in Moscow. This meeting has raised fears about a potential arms agreement between the two nations, which has been the topic of much discussion for some time. The North Korean leader arrived in Russia on Tuesday for a closely watched summit with Russian President Vladimir Putin. This visit marks his first foreign trip since the COVID-19 pandemic as during the pandemic, North Korea's borders were sealed. (Read More)
JSW Infrastructure Ltd. has received approval from the Securities and Exchange Board of India (Sebi) for its ₹2,800 crore initial public offering (IPO) likely by the end of this month, a person familiar with the matter told Mint.
In May, the ports business of the $23 billion JSW Group had filed draft papers for its IPO, aimed at retiring debt and fund its capacity expansion plans.
The company’s debt as of 31 December 2022 stood at ₹2,875 crore. (Read More)
IT major Wipro on Wednesday announced the launch of its Cyber Defense Center (CDC) in Dusseldorf, Germany.
The centre will offer clients round-the-clock cybersecurity monitoring, incident response, as well as remediation support, the company said.
As part of Wipro and Microsoft’s global partnership, this centre will leverage Microsoft’s portfolio of cybersecurity products, specifically Microsoft Sentinel, Microsoft Defender for Endpoint, and Defender for IoT solutions. (PTI)
Due to festive season purchases in India, gold imports, in the world's second-largest consumer of this precious metal, have surged by 40% in August 2023. This uptick raises concerns about India's trade deficit, which is already under pressure due to soaring crude oil prices.
According to provisional data on India's gold imports in August 2023, provided by an anonymous source, imports reached $4.9 billion, compared to $3.5 billion in the same month of the previous year. (Read More)
Reliance Retail in talks for $1.5bn investments, Adani Group to refinance debt, IndiGo gets approval to lease 11 aircraft, Icra revises steel industry growth estimate, Bank of India raises Tier II bonds, Paytm appoints new auditor, FDI approved for Suven Pharmaceuticals, Bombay Dyeing sells land for ₹5,200 crore, PFC to issue bonus shares, Spencer's Retail to close 10 stores in Tamil Nadu. (Read More)
The Indian rupee is seen largely unchanged at open on Thursday after the higher-than-expected U.S. inflation number did not have a lasting impact on the dollar.
Non-deliverable forwards indicate the rupee will open around the same level as its previous close of 82.9850.
The dollar index was at 104.78, roughly at the same level it was prior to the U.S. inflation data. (Reuters)
Rating agency Icra on Wednesday revised upwards its growth estimate for the domestic steel industry to 9-10 per cent this fiscal, on account of the robust government capital expenditure.
It had estimated the steel industry to grow in the range of 7-8 per cent at the start of the current 2023-24 fiscal, the rating agency said in a statement.
"Icra has revised the FY2024 domestic steel demand growth forecast upwards to 9-10 per cent now, from 7-8 per cent made at the start of the current fiscal, on the back of strong government capital expenditure," the statement said. (PTI)
Vaishali Parekh, Vice President — Technical Research at Prabhudas Lilladherr recommends:
1] SBI: Buy at ₹596.45, target ₹630, stop loss ₹588;
2] Tourism Finance Corporation of India: Buy at ₹104.65, target ₹115, stop loss ₹102; and
3] Nocil: Buy at ₹248.95, target ₹262, stop loss ₹244. (Read More)
The Bombay Dyeing and Manufacturing Company Limited (BDMC), owned by the Wadia Group, announced on Wednesday that it has reached an agreement to sell a 22-acre parcel of land in Worli. The buyer is Goisu Realty Pvt, a subsidiary of Sumitomo Realty & Development Company Limited. This transaction, valued at ₹5,200 crore, marks one of the largest land deals in Mumbai. The proceeds from this sale will be utilized to retire debt and support upcoming projects.
In a filing with the stock exchange, the company reported that its board of directors has granted approval for the sale of this 22-acre land parcel in Worli, along with the associated Floor Space Index (FSI), in two phases. The total consideration for this sale amounts to approximately ₹5,200 crores, contingent upon approval from the company's shareholders. (Read More)
India is concerned about Russia’s successive crude production cuts to comply with the Opec+ agreement by curtailing production even from assets where Indian state-run firms are stakeholders, two people close to the matter said.
“The Russians have reduced production as part of Opec+. However, India is not a part of it, yet production is being reduced wherein foreign entities are partners. With Russian production coming down, the volume of oil available in the global market has also come down. With Iranian and Venezuelan oil off the table, the world is being starved of oil. We have raised the issue at several levels," one of the two people said on condition of anonymity. (Read More)
Adani Group is in talks with banks to refinance debt taken on to fund its purchase of Ambuja Cements Ltd, with lenders divided into three categories in what could be one of Asia’s largest syndicated loan deals of the year.
Banks are likely to refinance a total of $3.5 billion, according to people familiar with the matter, who asked not to be named because the matter is private. Adani would repay at least $300 million on the original Ambuja facility, they said.
The Indian conglomerate backed by billionaire Gautam Adani has been in talks with lenders for several months as it seeks to refinance as much as $3.8 billion worth of debt taken for its Ambuja acquisition. (Bloomberg)
Wall Street churned to a mixed finish on Wednesday after a highly anticipated report showed inflation accelerated across the country last month, but not by much more than expected.
The S&P 500 edged up by 5.54 points, or 0.1%, to 4,467.44 after flipping between small gains and losses a few times through the day. The Dow Jones Industrial Average dropped 70.46 points, or 0.2%, to 34,575.53, and the Nasdaq composite rose 39.97, or 0.3%, to 13,813.59.
The modest moves followed a shaky immediate reaction to the inflation report across financial markets, where bond yields and stock prices swung back and forth several times. The report said U.S. consumers paid prices last month that were 3.7% higher than a year earlier, up from July’s inflation rate of 3.2%.
That’s discouraging for shoppers paying higher prices, but much of the acceleration was because of higher fuel costs, which can swing very sharply and quickly. Ignoring those, underlying inflation trends still look to be pointing toward continued moderation, economists said. Inflation has been generally cooling since peaking above 9% last year. (AP)
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