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PremiumShare Market Updates: Auto and IT stocks lifted indices to new highs on Friday with the Nifty and Sensex ending at new all-time high closings. This was the 11th straight session of gains for the Sensex.
Bajaj Auto, Tata Motors, Eicher Motors pushed auto stocks higher, while HCL Tech and Wipro helped the IT pack stay stable.
Stocks in Asia advanced following better-than-expected Chinese economic data and after the central bank took further measures to support the struggling economy.
Meanwhile, the ECB raised its key interest rate to an all-time high of 4%, from minus 0.5%, and signalled this will likely be its final move in a more-than-a-year-long fight against stubbornly high inflation.
Equity benchmark indices Sensex and Nifty hit new record closing peaks on Friday, helped by a rally in global markets and fresh foreign inflows.
Rallying for the 11th day running, the 30-share BSE Sensex climbed 320 pts to close at 67,838. The Nifty went up by 90 to reach 20,192. Sensex reached an intraday high of 67,927 and Nifty's intraday high was 20,222. Sensex gained around 1.4% this week, while Nifty added 1.5%.
Among stocks, Bajaj Auto jumped more than 5%, with Grasim and M&M gaining more than 2.5% each. Hero MotoCorp and HCL Tech were other major gainers. BPCL, Asian Paints and HUL were the biggest laggards.
Asian Paints, Hindustan Unilever, Titan and Axis Bank were among the laggards.
Stocks in Asia advanced following better-than-expected Chinese economic data and after the central bank took further measures to support the struggling economy.
Japan's broader Topix share index ended at a more than 33-year high underpinned by overnight Wall Street gains, with technology stocks leading the gains after the strong market debut of SoftBank Group's Arm Holdings.
The broader Topix rose 0.95% to its highest close since June 1990 and rose 2.95% for the week. The benchmark Nikkei jumped 1.1% to its highest closing level since July 3 and rose 2.8% for the week.
China stocks closed lower after data showed a slump in the country's property sector worsened in August, even as other parts of the economy showed some tentative signs of stabilising. However, Hong Kong shares rose and the yuan climbed to its strongest in nearly two weeks against the dollar following the data.
European shares extended their rally on track to end their week higher, following a sharp jump in the previous session after the European Central Bank (ECB) signalled an end to its rate hike cycle.
UK's FTSE 100 extended gains driven by miners following better-than-expected economic data from China, while the prospects of global central banks nearing the end of their monetary tightening cycle further boosted risk sentiment.
Hemant Vishnoi, Co - Founder of EnKash: The RBI’s emphasis on the creation of a self-regulatory organisation (SRO) will ensure a standardised and streamlined structure, put together by the FinTech players. Formation of an SRO will assist to build industry best practices, set privacy and data protection norms, provide the customers with the commitment of transparency, accountability, and responsible decision-making. The entity will play a crucial role in protecting customers’ interests, ensuring that customers are offered appropriate products.
While the fintech industry is vastly diverse, to cater to the different verticals, the SRO should be formed with SMEs’ appropriate representation & should able to work with the regulators in formalising policies. This will help them cater to each of the segments and also help the fintech community to grow and keep pace with.
Pfizer Inc.’s $43 billion takeover of Seagen Inc. faces a European Union review after the companies formally notified the bloc’s merger watchdog.
The European Commission set Oct. 19 as a deadline to complete its initial probe, according to a filing on its website on Friday.
Seagen is a leader in developing a type of medicine called antibody-drug conjugates which help to deliver cancer-killing drugs so potent they might otherwise be too toxic to use. Seagen’s portfolio will double Pfizer’s pipeline of early-stage experimental cancer therapies, the company said when it announced the tie-up in March. (Bloomberg)
Home décor startup Livspace, backed by US private equity firms TPG and KKR, recorded a significant jump in its topline and improved its financial health in the year through March 2023, a top executive told VCCircle.
“We achieved a top-line growth of 85% across the business, with our revenue reaching nearly ₹1,100 crore," Livspace chief strategy officer Ankit Shah said in an interaction. (Read More)
The initial public offering (IPO) of Andhra Pradesh-based Manoj Vaibhav Gems N Jewellers will be opening for subscription on September 22. The company has set its price band at ₹204 - ₹215 per equity share at a face value of ₹10 each.
Ashok Leyland has signed a Memorandum of Understanding (MoU) with the Uttar Pradesh govt to set up an integrated commercial vehicle bus plant with an initial investment of ₹200 crore.
As per a report by Emkay Wealth Management titled ‘Navigator’, the prices of yellow metal is expected to trade in the broad ranges already set with US$ 1880 and US$ 1830 acting as strong support levels in the near term. Gold is currently trading at US$ 1960, and has been fluctuating in the range of US$1880-US$1960 during the last one month.
The report added that during the previous two months gold ETFs witnessed outflows, however during the recent weeks some inflows started trickling in that have helped the yellow metal. The movement in gold is inextricably intertwined with two fundamental factors, the trajectory of US interest rates, and the direction of the US Dollar. The currency outlook has been positive owing to the north-bound interest rate outlook.
Court on October 13, as reported by Business Today. During this hearing, the Supreme Court is expected to review a fresh status report submitted by the market regulator SEBI (Securities and Exchange Board of India).
Recently, a Public Interest Litigation (PIL) in the ongoing Adani-Hindenburg dispute has alleged that SEBI has withheld crucial information from the Supreme Court. Specifically, the PIL claims that SEBI did not disclose a letter from the Directorate of Revenue Intelligence (DRI) regarding alleged stock manipulation by Adani companies. (Read More)
Shares of SpiceJet on Friday climbed more than 4 per cent after the company completed a payment of USD 1.5 million to global investment bank and financial services firm Credit Suisse.
The stock gained 4.22 per cent to ₹40 after a positive beginning on the BSE.
SpiceJet has complied with the directive of the Supreme Court by remitting USD 1.5 million to Credit Suisse, according to a company statement on Friday.
Tata Motors Ltd. is in the process of creating specialized dealerships in India, specifically designed to cater to electric vehicles, as part of its strategy to further strengthen its position in the fast-growing electric vehicle market, as per Bloomberg.
“We felt the need to create a different brand philosophy and personality for EVs. We will start going for exclusive EV dealerships in the coming quarters," said Shailesh Chandra, managing director of the company’s passenger vehicle and electric mobility business. (Read More)
The subscription status of the Zaggle Prepaid Ocean Services IPO stands at 31% on the second day of its subscription period. The IPO opened for subscription on Thursday, September 14, and is scheduled to close on Monday, September 18.
Here is a breakdown of the subscription levels for different investor categories:
Iron ore rose for a fifth day as Chinese authorities increased economic support aimed at stimulating the crucial construction and property industries.
Prices of the steelmaking material have rallied about 8% this week, reflecting optimism for infrastructure demand amid a seasonal pick up in construction that usually lasts until the end of October. Fresh positive signs include data showing new home prices in August rose in 17 cities, while China’s central bank injected cash into markets for the 10th consecutive month and cut lenders’ reserve requirements for the second time this year.
Iron ore stockpiles at ports have fallen to their lowest in more than three years, according to data from Steelhome. (Bloomberg)
Strides Pharma has made significant strides in the market, with its share price surging by more than 11.5% to reach a new 52-week high. This remarkable boost in share value comes in the wake of an announcement that the company's subsidiary has received tentative approval from the United States Food and Drug Administration (USFDA) for a generic HIV treatment drug.
The positive momentum for Strides Pharma's stock price has been sustained for the third consecutive day, resulting in a cumulative gain of over 11%. Today, shares of Strides Pharma Science Limited began trading at ₹488 apiece on the BSE and reached an intraday high of ₹522.20. This development underscores the market's favorable response to the company's recent achievements. (Read More)
Credit Wise Capital (CWC), a tech-driven NBFC which is involved in two-wheeler financing, has announced a co-lending partnership with HDFC Bank, to offer two-wheeler loans in tier 2, 3, and 4 towns of the country.
The statement said, the partnership combines the strengths of HDFC Bank's expertise to offer credit facility to the unserved or underserved sectors of the economy and Credit Wise Capital's strong and easy loan processing tech platform for assessing potential borrowers as well as their credit profile.
The statement added that the partnership aims to provide seamless financing solutions, conveniently and economically in a digital manner through Twin2, a proprietary product of Credit Wise Capital.
TotalEnergies, the French oil major, is currently engaged in discussions regarding potential investments in renewable energy projects developed by Adani Green Energy. This move aligns with TotalEnergies' strategic commitment to expanding its portfolio of clean energy projects, as reported by Bloomberg News, citing undisclosed sources.
The discussions suggest that TotalEnergies is contemplating an investment of approximately $700 million and is exploring the possibility of acquiring stakes in select projects developed by Adani Green, according to one of the sources mentioned in the report.
It's important to note that these deliberations are ongoing, and as of now, there is no certainty regarding whether a transaction will materialize. (Read More)
A recent research study suggests that electric vehicles (EVs) are poised to reach price parity with fossil-fuel-powered models in Europe as early as 2024, and in the U.S. market by 2026. This promising outlook is based on the declining costs of batteries, a critical component of EVs. The report, released by the Rocky Mountain Institute (RMI) on Thursday, anticipates a substantial reduction in battery costs over the course of this decade. Specifically, it predicts a remarkable decrease from $151 per kilowatt hour (kWh) in 2022 to a range of $60 to $90 per kWh.
This significant cost reduction in battery technology is expected to enable electric vehicles to compete favorably with traditional gasoline-powered cars not only in terms of purchase price but also in terms of running costs. As a result, it is projected that by 2030, EVs could account for up to two-thirds of global car sales, marking a major transformation in the automotive industry.
Total could invest about $700 million in Adani Green's projects, the report said, citing one source.
SpiceJet Ltd said it has paid $1.5 million to Credit Suisse in compliance with the Supreme Court of India order.
“SpiceJet Ltd. has complied with the directive of the Supreme Court by remitting $1.5 million to Credit Suisse," the beleaguered airline said in an exchange filing.
The payment was executed on Thursday, September 14th, it added. (Read More)
Sameer Bhise of JM Financial Institutional Securities recommendations on Satin Creditcare Network Ltd: Strengthening the core - BUY INR 320
Satin Creditcare Network Ltd (SCNL or Satin), at its Analyst Day, exuded confidence w.r.t delivering continued growth across asset segments while maintaining strong asset quality. Mgmt indicated that microfinance portfolio originated post Jul’21 continues to exhibit asset quality far better than industry levels (PAR1/ PAR90 at 0.9% /0.5% for Satin vs. 4.4%/ 2.6% for other NBFC MFIs). Mgmt believes its reinvigorated focus on collections, revamped customer selection model (which includes score cards) and diversification have helped them achieve strong qualitative results. As indicated earlier (Satin_IC), Satin’s write-offs have been meaningfully lower than industry through Covid19-impacted period. Magmt has guided for RoAs of c.4.5% over the next 2-3 years (RoE of 18-20% by FY25E) with benefits coming through low credit costs and operating leverage and expects to deliver c.25% growth in AUMs over the medium term. The MSME and Affordable housing subsidiaries are scaling up well and are expected to reach 25% of portfolio (vs. 12% currently) over the medium term. Satin has also recently strengthened its mgmt team with leadership positions across MSME lending, finance by hiring professionals with rich experience across reputed organizations. Satin’s profitability is increasingly becoming consistent, which, in turn should drive rerating of its valuation multiples in our view. We maintain our BUY rating with an unchanged target price of INR 320
Shakti Pumps experienced a significant surge in its share price during Friday's early trading session, climbing by more than 14% following the announcement of a substantial ₹293 crore order. The value of Shakti Pumps shares surged to ₹902.65 each on the BSE, marking a remarkable 14.65% increase.
This surge was propelled by the company's recent announcement regarding the acquisition of a substantial order from the Uttar Pradesh government, which involves the supply of 10,000 pumps.
“Shakti Pumps (India) Limited has received Letter of Award under PM- KUSUM III scheme under component-B from Department of Agriculture, Uttar Pradesh for 10,000 pumps," Shakti Pumps India said in a regulatory filing. (Read More)
The Indian rupee opened 2 paise lower against the US dollar on Friday weighed down by a stronger American currency overseas and rising crude oil prices. The local currency opened at 83.05 a dollar as against previous close of 83.03.
The dollar held steady, edging off slightly from overnight gains against peers, as the yuan strengthened in the wake of some market-beating economic data out of China, Reuters reported.
The US dollar index last stood somewhat lower at 105.32, but still near Thursday’s six-month peak of 105.43. (Read More)
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: The participation of bluechips like Infosys, RIL, L&T, HDFC Bank and ICICI Bank has imparted resilience to the ongoing rally. Even though the undercurrent of the market is bullish the high valuations and new risks like surging crude and rising dollar index can impact the market negatively. Brent crude at $94 is a major macro worry which the market cannot ignore for long. The rising dollar index which has breached 105 and the attractive US bond yields (10-year at 4.28%) will force the FIIs to sell aggressively soon.
Even while remaining invested in this rally investors can consider some profit booking, particularly in the over-heated mid-and small-cap space. In the micro-cap segment, hope and momentum, not fundamentals are driving the rally."
Deven Mehata, Equity Research Analyst, Choice Broking: On September 15, the benchmark Sensex and Nifty indices are expected to open with a slight upward bias, as indicated by the GIFT Nifty futures, which suggest a marginal gain of 18 points. GIFT Nifty futures reached 20,232 points after reaching a peak of 20,241 points.
The daily candlestick pattern formed on the Nifty charts resembled a Spinning Top, with minor upper and lower wicks. This pattern suggests indecision among market participants, with both bulls and bears uncertain about the future direction of the market.
Currently, it's advisable to buy when there are price declines, as long as the Nifty index remains above the 19,900 level. On the upper side, there is expected to be a level of resistance at 20,200, if the Nifty manages to consistently trade above 20,200, it has the potential to initiate a substantial upward rally in the short term.
In terms of institutional activity, foreign institutional investors (FIIs) were net buyers, purchasing shares worth ₹294.69 crore, while domestic institutional investors (DIIs) sold stocks worth ₹50.80 crore on September 14, according to provisional data from the National Stock Exchange (NSE).
Support levels for the Nifty are anticipated at 20,000, followed by 19,900. On the higher side, immediate resistance levels are at 20,200, followed by 20,250.
JPMorgan Chase & Co. has expressed its intention to provide financial support to the burgeoning community of startups in India, as revealed by one of its senior executives in a conversation with Bloomberg.
The bank's strategy involves collaborating with businesses that are trailblazers within their respective industries, actively engaged in creating innovative products or services. Kaustubh Kulkarni, JPMorgan's senior country officer for India, explained that their focus extends to enterprises with a substantial consumer-oriented presence in both the Indian market and international markets. (Read More)
As online travel agency Yatra Online Ltd’s IPO will open for subscriptions this Friday, its co-founder and CEO, Dhruv Shringi, in an exclusive conversation with Mint, said there are strong tailwinds behind the business, and this is the right time to list. The company plans to use ₹150 crore from the IPO proceeds for strategic investments, acquisitions, and inorganic growth, while ₹392 crore could be used for investments in customer acquisition and retention, technology, and organic growth initiatives.
The company’s IPO will be priced at ₹135-142 per share. Mint earlier reported that this is a big reduction from the shares it issued to a promoter THCL Travel Holding Cyprus Ltd. last year. (Read More)
Reliance Industries faces gas dispute challenge, Cipla stake sale in jeopardy, Tata Motors plans separate EV sales network, L&T brings AATV to India, Axis Finance appeals Zee Entertainment merger, LIC sells 2% of Sun Pharma, Vedanta appoints new CEO, exemption sought for sugar packaging, paper manufacturers' revenue to decline, Strides Pharma receives USFDA approval for generic HIV treatment. (Read More)
Heena Naik, Research Analyst, Currency, Angel One Ltd: Euro falls post the ECB policy, committee hints at fewer rate hikes
The ECB has hiked interest rates by 25 basis points after the Governing Council’s assessment of the inflation outlook in light of the incoming economic and financial data.
According to the policy statement, the inflation has continued to decline but is still expected to remain high for too long.The Governing Council is determined to ensure that inflation returns to its 2 percent medium-term target in a timely manner.
The September ECB staff macroeconomic projections for the Euro Area see average inflation at 5.6% in 2023, 3.2% in 2024 and 2.1% in 2025.This is an upward revision for 2023 and 2024 and a downward revision for 2025.The upward revision for 2023 and 2024 mainly reflects a higher path for energy prices.
Based on its current assessment, the Governing Council considers that the key ECB interest rates have reached levels that, maintained for a sufficiently long duration, will make a substantial contribution to the timely return of inflation to the target.
The Governing Council’s future decisions will ensure that the key ECB interest rates will be set at sufficiently restrictive levels for as long as necessary.
Post the policy release, the Euro currency took a hit and dived south as markets now speculate that the committee is likely done with tightening policy. There could be a long pause in ECB rate hikes for the coming months with plausible rate cuts in the second half of 2024.
Please find attached the media kit from Angel One Ltd. (Formerly known as Angel Broking) for your reference.
The Securities Appellate Tribunal has raised concerns about the credibility of Securities and Exchange Board of India (Sebi) regarding the time taken to complete investigations, particularly in relation to Zee promoter Punit Goenka’s case.
“Your credibility to complete investigations within a stipulated period is not there," said the SAT bench led by Justice Tarun Agarwala. “There is no certainty that these eight months won’t be extended…Past record of Sebi is that they have always extended it. This has happened in several cases. The recent one being the Adani-Hindenburg case." (Read More)
Maruti Suzuki India Ltd, which dominates India’s small car segment, is urging dealers to stock up on hatchbacks, as the country’s largest carmaker anticipates a positive impact from its expanding sport utility vehicles (SUVs) portfolio.
The move comes amid muted demand for hatchbacks, which has led to ballooning inventory and tied-up working capital at small car dealerships, two people aware of the matter said on condition of anonymity. Simultaneously, it has also started streamlining production of small cars, as supply chain challenges, which had hindered production of its feature-rich SUVs, are gradually easing, they added. (Read More)
Vaishali Parekh, Vice President — Technical Research at Prabhudas Lilladher recommends these stocks for day trading:
1] BHEL: Buy at ₹129.90, target ₹140, stop loss ₹127;
2] Bank of Maharashtra: Buy at ₹43.95, target ₹50, stop loss ₹42; and
3] VIP Industries: Buy at ₹693.40, target ₹730, stop loss ₹682. (Read More)
EbixCash Ltd, payment services company that plans to go public, is yet to disclose in its draft share sale documents an adverse arbitration order passed by a Singapore court in June that could cost it ₹100-200 crore.
The firm, a unit of Nasdaq-listed Ebix Inc., received the markets regulator’s approval for a ₹6,000 crore IPO in April.
EbixCash purchased gift card provider ITZCash in 2017 and rebranded it to Ebix Payment Services (EPS), which now forms a big chunk of its business. Vyoman Tradelink Ltd—the original promoter of ITZCash—continues to hold a 20% stake in the business and took Ebix to an arbitration court in 2019 over its failure to make some earn-out payments. (Read More)
Tata Motors Ltd. is designing new dealerships tailored to electric vehicles in India as part of efforts to expand its lead in the rapidly growing segment.
“We felt the need to create a different brand philosophy and personality for EVs," said Shailesh Chandra, managing director of the company’s passenger vehicle and electric mobility business. “We will start going for exclusive EV dealerships in the coming quarters."
Tata will initially set up a handful of retail stores for electric models under the Tata.ev brand, launched in August, Chandra said at a roundtable with journalists in New Delhi. It is also finalizing an international strategy, which may include exporting battery-powered cars, he said, without naming specific markets. (BLoomberg)
The Centre on Thursday filed a petition challenging a Delhi high court order in favour of Reliance Industries Ltd (RIL) regarding a gas dispute in the Krishna Godavari Basin.
The court has asked RIL to file a response, a counsel aware of the matter said. A division bench of the Delhi High Court has agreed to hear the matter on 12 February.
The dispute began in 2013, when state-owned Oil and Natural Gas Corp. (ONGC) Ltd wrote to the director general of hydrocarbons, alleging there was evidence of ‘lateral continuity’ of gas pools between the Reliance block and the adjacent blocks allocated to ONGC. This meant that the gas pools of the Reliance block and the ONGC blocks appeared to be connected with possible migration of gas between the two blocks. (Read More)
SoftBank’s Arm Holdings made a decent debut on the Nasdaq Thursday. Chip designer Arm's American Depositary Shares opened at $56.10 apiece compared with the initial public offering price of $51.
After the stellar listing, Arm share price surged 24.68% to close at $63.59 on the first day of the trading, giving the British chip designer a valuation of $65 billion in its return to public markets following a seven-year absence, Reuters reported. (Reuters)
Wall Street rose Thursday after a blizzard of reports suggested the U.S. economy is still humming, though inflation may be too.
The S&P 500 climbed 0.8% for its best day in two weeks. The Dow Jones Industrial Average rallied 331 points, or 1%, and the Nasdaq composite added 0.8%.
Some of the strongest action was in the bond market, where Treasury yields swung up and down several times. While the reports bolstered hopes the U.S. economy will avoid a deep recession, the strength underlying them could also add upward pressure on inflation.
One report said U.S. shoppers spent more at retailers last month than economists expected. Such spending has been a linchpin for the economy, but it could also encourage retailers to keep trying to raise prices further.
The strong spending is a result of a remarkably resilient job market, which has withstood a steep jump in interest rates. A separate report Thursday morning said fewer workers applied for unemployment benefits last week than expected, which implies the number of layoffs remains low. (AP)
