Share Market Updates: Sensex and Nifty had a sluggish day amidst volatility with most sectors ending lower. IT and Pharma sectors climbed, while Bank, Finance and Auto tanked. L&T and TCS led the charts, while NTPC and Powergrid turned laggards.
Small and Mid-cap indices contribute to the drag as Nifty small-cap and mid-cap indices plunged 3% to 4% in today's session.
Asian markets struggled Tuesday to extend a Wall Street and European rally as traders nervously await US inflation data, while lingering concerns about China's economy remain a millstone.
This upcoming week will offer a huge data point for the Federal Reserve with the U.S. government offering the latest monthly update on prices consumers are paying across the economy, and the forecast is they were 3.6% higher in August than a year earlier.
The markets ended flat on Tuesday with Nifty closing marginally lower, while Sensex gained 100 pts. The market benchmarks appeared to lose momentum as both traded with volatility with most sectors along with mid and small cap losing steam.
Lingering concerns regarding persistent inflation, elevated interest rates, and a slowdown in global economic growth contributed to this uncertainty.
Sensex commenced the day with a robust gain but it had failed to maintain this upward momentum and ended just 100 pts higher at 67,221. The Nifty50 had achieved a new record high of 20,110.35 during the initial trading hours but ended the day 3 points lower at 19,993.
Small and Mid-cap indices contribute to the drag as NSE Smallcap indices plunged 2% to 4% while the Midcap indices cracked around 3%. Among broad market indices, IT remained strong as it gained around a per cent and Pharma ended in the green. Most other sectoral indices lost ground in today's trading.
BPCL, Powergrid and Adani stocks remained the biggest laggards in the Nifty 50 index. TCS gained 3%, while L&T jumped 2.5% and topped the charts.
Asian markets struggled Tuesday to extend a Wall Street and European rally as traders nervously await US inflation data, while lingering concerns about China's economy remain a millstone.
Japanese shares ended nearly 1% higher with automakers leading the gains, as the yen's retreat from a one-week high lifted exporter stocks and risk appetite. The Nikkei index rose 0.95% and the broader Topix ended 0.82% higher.
Chinese and Hong Kong stocks closed lower on Tuesday, despite recent data showing signs of stabilisation in the world's second-largest economy, with traders awaiting more clues on recovery and policy measures.
China's blue-chip CSI 300 Index and the Shanghai Composite Index both ended the session down 0.2%. Hong Kong's Hang Seng Index dropped 0.4% and the Hang Seng China Enterprises Index declined 0.6%.
European shares were flat as losses in technology stocks offset gains by healthcare companies, while Germany's biggest software maker SAP fell after U.S. peer Oracle's disappointing revenue forecast.
UK's FTSE 100 index inched higher after labour data signalled that the Bank of England might be nearing the end of its interest rate hike cycle, although a slump in packaging producer Smurfit Kappa's shares capped gains.
Coal India Ltd has committed a capital investment of about ₹24,750 crore in the next few years on as many as 61 first-mile connectivity (FMC) projects in a bid to boost eco-friendly coal transportation.
In a statement, the world's largest coal producer said the projects, which will be set up in three phases, will have a combined capacity of 763.5 million tonnes per annum on completion.
FMC projects involve the transportation of coal in mechanized piped conveyors from production points to coal handling plants/silos with a rapid loading system where coal is loaded directly into rail wagons.
"It is essential that coal transportation is environment friendly to improve the quality of life of people living in the proximity of coalfield areas. (PTI)
In the second consecutive session on Tuesday, NIIT's stock price continued its upward trajectory. Market sources reported that Srikanth Velamakanni, a co-founder, group chief executive, and vice-chairman of Fractal Analytics, has been included in NIIT's core management team. Over the past two sessions, NIIT's stock price has surged by approximately 34%. On Tuesday's session, NIIT's stock price began at ₹104.44 per share on the BSE. During the day's trading, NIIT's stock price reached an intraday high of ₹118.49 and a low of ₹104.
Fractal Analytics is a multinational American artificial intelligence (AI) company that specializes in assisting global Fortune 100 organizations in enhancing decision-making by seamlessly integrating analytics and AI into their operations. (Read More)
Britain’s red-hot labor market showed signs of cooling as unemployment hit the highest level since 2021, the number in work declined and private-sector wage growth eased.
The portion of people out of work and looking for a job rose to 4.3% in the three months through July, the highest since September 2021, the Office for National Statistics said Tuesday. The report also showed average earnings excluding bonuses rose 7.8% from a year earlier, maintaining the fastest pace since the series began in 2001.
The figures marked the biggest drop in employment outside a recession and suggests the BOE’s effort to cool the economy is working, according to the Resolution Foundation. It also eased a swingeing cost-of-living crisis, with total wage growth overtaking inflation for the first time since March 2022.Bloomberg (Bloomberg)
: Hindalco Industries Limited on Tuesday said it has signed a technology partnership with Italy-based Metra SpA, to bring latest aluminium extrusion technology to India for building rail coaches.
The company will set up an extrusion press in the country as part of the ₹2,000 crore investment that Kumar Mangalam Birla, chairman of the company, had announced during the company’s 64th annual general meeting (AGM) last month. (Read More)
For the first time, Apple is ready to sell Made-in-India iPhone on launch day. There are chances that the new iPhone model to be bought on the launch day could be made in India.
Updater Services Ltd. (UDS), a Chennai-based Integrated facilities management, has received approval from the Securities and Exchange Board of India (Sebi) for its initial public offering (IPO).
The IPO comprises a fresh issue of shares of up to ₹400 crore and an offer for sale (OFS) of up to 1.33 crore shares by a promoter and existing shareholders. (Read More)
After several media report suggested that Centre is likely to impose additional 10% GST on the sale of diesel vehicles, Road Transport Minister Nitin Gadkari clarified ‘there is no such proposal currently under active consideration’.
Apparently, the minister, while encouraging people to embrace green fuels, said that he might consider proposing an additional 10% tax on diesel-run vehicles and generators if there is excessive usage.
His exacts words were, “I am going to handover a letter to the Finance Minister this evening stating that an additional 10 per cent GST be put on diesel-powered vehicles" (Read More)
Aamir Makda, Commodity & Currency Analyst, Choice Broking:
Gold: Gold future has continued its bearish momentum on Tuesday, trading below 58900 till European session. Gold price is trading in Falling channel and remained below 50-DMA level placed at 59069, which will be immediate resistance on the chart. Also, we can observe Bearish crossover on MACD alongside emergence of negative zero-line which indicates further bearish biasness in Gold price. Here, crucial support would be at 58700 and if price break through this mark, we may expect further decline towards 58505 – 58425 in evening session.
Silver: On Tuesday, silver future resumed gaps higher around 72185, but has since remained down throughout the session. Prior to the European session, however, pricing has taken a support near the 71700 level. As the Dollar index recovered from its support low of 104.50, the price of silver dropped. Critical support on the daily chart would be at 71490; breaking through this level would cause the price of silver to continue falling toward 71000. 72350 should be viewed as an important hurdle by traders.
Crude Oil: Crude oil price remained range bound for past couple of sessions and trading in range of 7200 – 7300. Crude prices remained stable ahead of US CPI data to be release on Wednesday. Also, OPEC+ has announced further output cut which have fueled the price. Immediate support would be at 20-EMA level on Intraday chart placed at 7200 level and if price sustains through this level, we may expect further upward move in Crude towards 7375. Key resistance would be at previous week’s high at 7315.
Sri Lanka accepted almost all of the offers to exchange defaulted local debt for new bonds, putting the nation closer to its goal of completing its debt restructuring this year.
The island nation received 3.2 trillion rupees ($10 billion) of offers from superannuation funds, according to a statement on the finance ministry’s website on Tuesday. The Sri Lankan rupee and the 7.55% 2030 bond were little changed, according to indicative pricing compiled by Bloomberg.
The move boosts the chances Sri Lanka will pass the International Monetary Fund’s first review of its $3 billion bailout starting this week, paving the way for a disbursement of about $330 million by November. The focus now turns to the nation’s debt negotiations with holders of its foreign debt, including creditors such as China and India. (Bloomberg)
Ajmera Realty & Infra India Limited will undertake the redevelopment at Yogi Nagar in Borivali West, Mumbai as four societies of this township are set to undergo redevelopment, according to a statement released by the company. This project is estimated to generate sales of ₹330 crores and will primarily consist of residential apartments of 2 & 3 BHK flats, with an estimated carpet area of 1,07,000 Sq.ft, added the statement. The group said that it aims to create a modern and sustainable living space that will redefine the landscape of the location.
European shares inched higher on Tuesday, tracking overnight gains on Wall Street, while Britain's export-focussed FTSE 100 was supported by a weakening pound following UK's mixed labour market report.
The FTSE 100 gained 0.3%, while Europe's STOXX 600 added 0.2%.
Britain's pound inched lower after data showed labour market weakened even as wage growth stayed strong in July, painting an unclear picture ahead of the Bank of England's decision on rates next week.
In Germany, wholesale prices in August fell for a fifth consecutive month due to lower prices for mineral oil products, data from the federal statistics office showed. (Reuters)
The Securities and Exchange Board of India (SEBI) has concealed a January 2014 DRI alert about Adani having siphoned off the money and invested it in Adani-listed companies through entities based in Dubai and Mauritius, one of the petitioners in the Hindenburg matter told the Supreme Court of India.
In 2014, DRI investigated a case of overvaluation of the import of equipment and machinery by various entities of the Adani Group from a UAE-based subsidiary, according to a report published by the news agency ANI. (Read More)
In its analysis, CareEdge Ratings forecasted that Indian refiners' gross refinery margins (GRMs) would continue to be in the $9 to $10 per barrel range for the remainder of FY24, despite rising crude prices and potential restrictions on the supply of Russian crude.
Varying the complexity of each refinery, Indian refiners produced healthy GRMs in Q1FY24 that ranged from $7 to $12 per barrel. (Read More)
- We will increase tax on diesel to the extent it will be difficult to sell it
- Want to see a high speed of transformation away from diesel
- Urge the industry to cut down diesel usage and replace it with the use of biomass
- Diesel is a highly hazardous fuel and makes the country dependent on imports
Power Grid shares will be under close scrutiny today as the PSU (Public Sector Undertaking) stock is set to trade ex-bonus. The board of directors of Power Grid Corporation of India Limited has made the decision to issue bonus shares in a ratio of 1:3. This translates to one bonus share for every three shares held by a shareholder of the company as of the Power Grid bonus share record date. The board of directors has officially set the record date as September 12, 2023, for the purpose of identifying eligible shareholders who will receive the bonus shares. (Read More)
The dream run of mid and small-caps may be at its end as the BSE Smallcap index plunged almost 4 per cent while the BSE Midcap index cracked nearly 3 per cent in morning trade on Tuesday.
The BSE Midcap index fell to an intraday low of 32,177.91, down 2.68 per cent against the previous close of 33,064.96 while the Smallcap index plunged to its intraday low of 37,005.17, down 3.97 per cent against its previous close of 38,533.40 in Tuesday's trade so far.
Early morning today, both the mid and smallcap indices hit their fresh record highs of 33,245.85 and 38,769.33 respectively. (Read More)
Jignesh SHIAL and Mayank AGARWAL from InCred Equities express their views on Finance Companies: Spurt in equity inflow but sporadicity remains
Overweight - Maintained
■ After the sluggishness in the past few months, Indian AMCs reported a spurt in inflow in Aug 2023, backed by the rising momentum in capital markets.
■ Equity fund inflow in Aug 2023 was at Rs202bn, but the trend was sporadic as small-mid cap funds saw an inflow whereas large cap funds saw redemption.
■ The consolidation among AMCs continued as a few AMCs continued gaining market share. HDFC AMC (+20.6% yoy), Nippon (+21.6% yoy) are the outliers.
Bangkok-headquartered and Indian majority-owned Indorama Ventures Public Co Ltd is investing USD 150 million in three PET recycling plants in India, aiming to start commercial production in 2026.
“We have obtained basic regulatory approvals and land acquisition is going on nearer to our three existing PET-producing plants at Haldia, Nagpur and Panipat," Indorama Ventures Group CEO Aloke Lohia told PTI of the investment plans on the sidelines of the 21st Forbes Global CEO Conference on Tuesday.
Recycled PET from the three plants will supplement Indorama Ventures’ current 800,000 tonne/year PET production for the Indian and export markets. (PTI)
Fintech platform Razorpay on Tuesday said it has acquired Mumbai-based digital invoicing and customer engagement startup BillMe.
The partnership aims at empowering businesses with a hybrid model to engage better with end consumers, according to a release.
The company did not disclose the deal value.
"...now with Razorpay's merchant relations and strong understanding of the market, we will together enable a large base of offline retail brands to enjoy the best of both worlds, grow faster, and get seamless access to omnichannel payment solutions," Razorpay Managing Director and Co-founder Shashank Kumar said. (PTI)
The rupee appreciated by 10 paise to 82.93 against the US dollar in early trade on Tuesday tracking a positive trend in domestic equities and foreign fund inflows.
Forex traders said the rupee is trading in a narrow range as the soft US dollar and positive domestic markets provided support, while concerns over global economic slowdown and rising expectations of a rate hike by FOMC amid strong economic data from the US may cap sharp gains for the local unit.
At the interbank foreign exchange, the domestic unit opened at 82.93, registering a rise of 10 paise over its last close. (PTI)
Indian companies may soon have the opportunity to list on the London Stock Exchange, according to a joint statement following discussions during the India-UK Economic and Financial Dialogue in the national capital on September 11.
This move comes alongside the launch of the UK-India Infrastructure Financing Bridge, aimed at leveraging expertise to develop major infrastructure projects. Chancellor of the exchequer of the United Kingdom, Jeremy Hunt said, "We are particularly pleased to have made a big step forward with the first confirmation by India that it will explore the London exchange as an international destination for the direct listing of Indian companies." (Read More)
Krishan Parwani of JM Financial Institutional Securities views on Deepak Nitrite: Commissioning of polycarbonate capacities lifts phenol demand outlook
BUY INR 2,535 -
We believe that investor concerns around a phenol supply glut (on account of large phenol capacity additions in China) are unwarranted. We believe that these new additional phenol capacities will get almost fully absorbed by the polycarbonate capacity additions in China. The recent commercialisation of SABIC’s polycarbonate plant (~3.6% of global polycarbonate capacity) will alone be able to capture 10% of China’s phenol capacity additions. In our view, due to the commercialisation of these capacities and China’s recent push in the construction sector, prices of polycarbonate have rebounded (polycarbonate pricing acts as a lead indicator for phenol pricing). This, in turn, is likely to have improved the demand outlook for phenol. Owing to better demand outlook and a possible ~30% EPS CAGR over FY24E-26E (19% over FY23-26E), we raise our target multiple to 26x Sep’25E EPS (from 25x Sep’25E EPS) and maintain BUY with a Sep’24 TP of INR 2,535/share (from INR 2,420/share earlier).
Arm Ltd. Chief Executive Officer Rene Haas, gearing up for the biggest initial public offering of the year, is pitching investors on a pivot.
His message to potential shareholders is that Arm is poised to become a bigger and more profitable business — not just because of the industrywide boom in cloud computing and artificial intelligence, but also due to a major change in how it operates.
“We made a significant shift in our strategy," Haas said in a video presentation for prospective inventors seen by Bloomberg. (Bloomberg)
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: Optimism regarding India’s growth prospects in a low-growth world and a fast decelerating China has triggered this rally enabling the Nifty to cross the psychological 20000 mark. FIIs, too, have joined the party with a buy figure of ₹1473 crores after five days of continuous selling in the cash market. The fact that FIIs have made this purchase when the US 10-year yield is at 4.29 percent indicates that the FOMO (Fear Of Missing Out) factor is driving their decision.
The participation of the fairly valued large banking stocks and RIL make this rally healthy even when the overall market valuation is turning expensive. Investors should avoid the frothy segments of the mid-and small-caps. In the near-term the market is likely to consolidate around the present levels."
JPMorgan Chase CEO Jamie Dimon warned against over-optimism over the economy. As reported by CNBC, Dimon said while the current situation of the US economy is good, it would be a “huge mistake" to believe that it will last for years.
"Healthy consumer balance sheets and rising wages are supporting the economy for now, but there are risks ahead. To say the consumer is strong today, meaning you are going to have a booming environment for years, is a huge mistake," CNBC reported Dimon saying so. (Read More)
NTPC Green Energy Limited (NGEL) has entered into an agreement with Nayara Energy to explore opportunities in the green hydrogen space.
The memorandum of understanding (MoU) was signed between NGEL CEO Mohit Bhargava and Nayara Energy Head-Technical Amar Kumar on Monday in the presence of other senior officials of both sides, NTPC said in a statement.
"NGEL and Nayara Energy have entered into an MoU today to explore opportunities in the green hydrogen and green energy space," it said.
NTPC Green Energy Limited is a subsidiary of energy major NTPC. (PTI)
TVS Supply Chain Solutions on Monday posted a consolidated net loss of ₹65.3 crore for the June quarter.
The company, which got listed recently, had reported a loss of ₹1.8 crore in the same period a year ago.
The revenue from operations during the first quarter of the current fiscal declined 12.4 per cent to ₹2,342.4 crore as against ₹2,675.5 crore in the year-ago period, the company said in a statement.
The company's revenue from the Integrated Supply Chain Solutions Segment (ISCS) vertical was ₹1,318.9 crore during the quarter, up 20.1 per cent year-on-year from ₹1,097.7 crore. (PTI)
Following the conclusion of a three-day bidding process, both investors and market spectators are anxiously awaiting the allotment date for the Jupiter Hospital IPO, which is most likely scheduled for September 13, 2023, falling on a Wednesday. Subsequently, once the share allocation details are officially disclosed, bidders will have the opportunity to check their Jupiter Hospital IPO allotment status online. This can be done by logging in either on the BSE website or on the website of the official registrar responsible for managing the book-building issue.
Furthermore, in the run-up to the Jupiter Hospital IPO allotment date, the grey market has exhibited a significant bullish sentiment. Market observers have noted that shares of Jupiter Life Line Hospitals Limited are currently trading at a premium of ₹250 in the grey market. (Read More)
Reliance Industries receives investment from KKR, L&T increases offer price for share buyback, ICICI Bank reappoints Sandeep Bakshi as MD & CEO, TCS collaborates with Dassault Systems, Tata Steel reappoints TV Narendran as CEO, SpiceJet pays dues to Kalanithi Maran, Marico announces top-level changes, NTPC and Nayara Energy to explore green hydrogen opportunities, TVS Supply Chain Solutions reports net loss, Tata Power receives financial aid for solar project. (Read More)
Tata Steel Limited shareholders on Monday approved the re-appointment of TV Narendran as the global Managing Director and Chief Executive Officer (CEO) for the next five years, the company said in an exchange filing.
Narendran got 99.47% of the total shareholders' votes in his favour during the meeting to approve the decision to re-appoint him for the next five years, the company added. (Read More)
According to an official government notice, India has recently implemented a five-year anti-dumping duty aimed at specific categories of Chinese steel. This measure, reported by Reuters, has been introduced in response to a notable surge in steel imports from China to India, which saw a 62% increase between April and July compared to the corresponding period the previous year. China managed to outpace South Korea, becoming the leading steel exporter to India, with sales reaching 0.6 million metric tons.
During this period, India's steel imports reached an all-time high in 2020, experiencing a 23% growth to reach 2 million metric tons. In this context, China emerged as the second-largest steel exporter to India, trailing behind only South Korea. (Read More)
On Monday, Tata Consultancy Services (TCS) unveiled a strategic partnership with Dassault Systems as part of the Living Heart Project. This collaboration aims to spearhead the Digital Transformation of Cardiovascular Science by leveraging Bio-Physical Simulation. The initiative brings together a diverse community of cardiovascular researchers, educators, medical device innovators, regulatory bodies like the US FDA, and practising cardiologists. Their collective goal is to create and authenticate highly realistic digital simulations of the human heart. (Read More)
Vaishali Parekh, Vice President — Technical Research at Prabhudas Lilladher has recommended these stocks for day trading today:
1] Manappauramm Finance: Buy at ₹148.50, target ₹157, stop loss ₹146.
2] RailTel: Buy at ₹248, target ₹270, stop loss ₹244.
The Reserve Bank of India has approved the re-appointment of Sandeep Bakshi as ICICI Bank MD & CEO for a period of three more years and he will remain at the post till 3 October 2026.
Sandeep Bakhshi has been with the ICICI Group for 36 years and has handled various assignments across the group in ICICI Limited, ICICI Lombard General Insurance, ICICI Bank and ICICI Prudential Life Insurance. (Read More)
Engineering and construction giant Larsen and Toubro Ltd (L&T) on Monday evening increased its offer price to ₹3,200 apiece from ₹3,000 per share, for its proposed upcoming ₹10,000 crore share buyback, as the stock rallied and the premium to market price narrowed since the original announcement in July.
On 26 July, L&T had announced the buyback—the first such offer in its eight-decade-long history.
L&T had said it may offer to buy back a 2.4% stake, or 33.33 million of shares, held by public shareholders through a book-building process on the stock exchange. (Read More)
Reliance Retail Ventures Limited announced today that global investment firm KKR, through an affiliate, will invest ₹ 2,069.50 crore into RRVL, a subsidiary of Reliance Industries Limited. This investment values RRVL at a pre-money equity value of ₹ 8.361 lakh crore, which makes it among the top four companies by equity value in the country.
KKR’s follow-on investment will translate into an additional equity stake of 0.25% in RRVL on a fully diluted basis. This, combined with its stake from its investment of ₹ 5,550 crore in RRVL in 2020, will take its total equity stake in RRVL to 1.42% on a fully diluted basis. (Read More)
A rally for Big Tech stocks on Monday helped Wall Street claw back about half its loss from last week.
The S&P 500 rose 29.97, or 0.7%, to 4,487.46, coming off its first losing week in the last three. The Dow Jones Industrial Average gained 87.13 points, or 0.3%, to 34,663.72, and the Nasdaq composite climbed 156.37, or 1.1%, to 13,917.89.
Like last week, some big technology-oriented stocks led the way. Tesla jumped 10.1%, Amazon climbed 3.5% and Meta Platforms rose 3.2%.
Tech stocks were at the head of the line leading the market lower last week as yields climbed. Higher yields hurt all kinds of stocks, but high-growth stocks tend to be among the hardest hit. Yields rose last week after reports showed the U.S. economy remains stronger than expected, which could be adding more fuel to pressures keeping inflation high.
This upcoming week will offer a huge data point for the Federal Reserve, which is weighing whether to keep raising interest rates in its effort to get inflation back to 2%. On Wednesday, the U.S. government will offer the latest monthly update on prices consumers are paying across the economy, and the forecast is they were 3.6% higher in August than a year earlier. (AP)
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