PremiumShare Market Updates: Indian shares closed higher on Monday, led by gains in information technology and metal stocks. However, a slide in heavyweight Reliance Industries after demerged entity Jio Financial Services slumped 5%, following its debut on the stock exchanges, capped gains.
Meanwhile, Adani group stocks extended gains from Friday, adding between 1% and 6%. Adani Ports and Special Economic Zone was up 2.4%, the most on the Nifty, adding to its gains from Friday after GQG Partners raised its stake in the company.
China announced a smaller than expected cut in its key lending rates, disappointing investors. China's central bank trimmed its one-year lending rate by 10 basis points and left its five-year rate unchanged, less than the projected 15 basis points reduction in both.
Traders will now focus on the Federal Reserve's summer conference for signs of whether the US central bank thinks inflation is under control or more interest rate hikes are needed to cool inflation.
India's benchmark indices snapped a two-falling streak to close higher on Monday, largely led by gains in IT and metal stocks. Globally, too, stocks edged higher even as China delivered smaller than expected rate cuts.
At the end of the session today, the benchmark Sensex rose 267.43 points to settle at 65,216.09, while the broader Nifty added 83.45 points to close at 19,393.60.
IT stocks gained, rebounding from a 1.47% fall on Friday on worries about higher interest rates in the US.
Adani group stocks climbed between 0.1% and 7%. Adani Ports and Special Economic Zone was up 2.66%, adding to its gains from Friday after GQG Partners raised its stake in the company.
Adani Enterprises advanced 2.42% and powered a 1.30% rise in metal stocks despite concerns over the economic revival in China, the world's largest metals producer and consumer.
Jio Financial, on the other hand, tumbled 5% following its market debut and closed at 5% lower circuit. Parent Reliance Industries also fell.
On the Nifty, Bajaj Finance, Adani Ports, Power Grid Corp, Adani Enterprises and Hindalco Industries, were top gainers, while Jio Financial Services, Reliance Industries, M&M, Britannia Industries, and Bajaj Auto were the worst hit.
IT, metal index jumped over 1% each while PSU Bank index fell 0.64%.
The BSE mid-cap and small-cap indices added nearly a percent each.
Brijesh Singh’s appointment follows Wipro’s $1 billion investment in AI and the launch of Wipro ai360.
The Saipem & Clough JV (SCJV), Australia, has awarded a contract for fabrication and supply of process and piperack modules for a 2.3 MMTPA urea plant for Perdaman Chemicals and Fertilisers Pty Ltd to L&T Energy Hydrocarbon. The plant will be constructed on the Burrup Peninsula, approximately 20 km north of Karratha, Western Australia. On completion, this state-of-the-art facility will be the largest urea plant in Australia and one of the largest in the world.
L&T classifies orders worth ₹1,000 crore to ₹2,500 crore as “significant".
Oil rose for a third day as signs the physical market is tightening and a stall in the dollar’s rally offset growing demand risks in China and the US.
Global benchmark Brent traded above $85 a barrel, and is up more than 2% since last Wednesday’s close. Supply curbs from OPEC linchpins Russia and Saudi Arabia have driven a rally since late June, while US crude stockpiles have shrunk to the least since January.
The dollar was steady Monday following declines in the previous two sessions, making commodities that are priced in the currency cheaper for many buyers. That came after the greenback had been strengthening from mid-July.
European stocks edged higher, but remained near a six-week low, as investors weighed mixed policy signals from China ahead of a speech by Federal Reserve Chair Jerome Powell later in the week.
The Stoxx 600 rose 0.3% in early deals, following weakness in Asian equities after Chinese banks kept a key interest rate that guides mortgages on hold, a surprise move that sowed confusion over the country’s approach to stemming the nation’s property slump.
Real estate led declines in Europe, while the energy sector outperformed as oil rose for a third day.
London's benchmark FTSE 100 index was up 0.2% at 7.274.98 points in early trading.
In the eurozone, the Paris CAC 40 was 0.6% higher at 7,208.15 points, while the DAX in Frankfurt edged up 0.4% to 15,631.05 points.
HDFC Asset Management Co. Ltd (HDFC AMC), investment manager to HDFC Mutual Fund (HDFC MF), has announced the launch of HDFC NIFTY 1D Rate Liquid ETF. The scheme aims to invest in tri-party repos in government securities or treasury bills (TREPS). The scheme aims to provide investment returns that, before expenses, correspond to the returns of the NIFTY 1D Rate Index.
The NFO opened on 18 August and will close on 23 August.
India's jet fuel demand will likely rebound to pre-pandemic levels by the first quarter of 2024, according to S&P Global Commodity Insights, as robust flight data indicates a promising recovery in the aviation sector.
Despite domestic and international flights returning to pre-pandemic levels, jet fuel consumption has struggled to keep pace in 2023. This can be attributed to the slow resurgence of long-haul travel and persistent challenges faced by the beleaguered airline industry.
Data from India's Directorate General of Civil Aviation (DGCA) informed that the nation's domestic commercial flights, averaging around 88,400 per month during January-June 2023, have surpassed 2019 levels by 2.5%. International flights, too, have experienced a more significant surge, with an average of 14,000 flights per month during the same period, compared to 12,500 per month in 2019.
Private sector lender Yes Bank has received a redemption amounting to ₹230 crore from a single trust in the security receipts portfolio, it said in a stock exchange filing. The bank had sold NPA portfolio to JC Flowers ARC on 17 December 2022.
Bank Nifty remained under pressure for the fourth consecutive week with losses of near 1% as heavyweights like Kotak Bank and HDFC bank observed continued selling pressure. Going ahead, we expect Bank Nifty to find support near 43500 levels and consolidate above these levels. A move above 44200 should trigger fresh positive bias in the banking space.
On the global front, US markets ended mixed on Friday and US Treasury yields stabilized after a recent surge as investors awaited further interest rate insight from the Federal Reserve next week. European markets retreated on Friday, tracking cautious global sentiment as traders assess the future for monetary policy and fresh concerns about China’s real estate sector. On the commodity front, oil prices rose more than 1% on Friday on signs of slowing US output.
Asia-Pacific markets are mixed on Monday as China has cut one of its main benchmark lending rates for the second time this year, in a bid to revive economic growth in the world’s second-largest economy. Considering the overall sentiment displayed by global markets and taking cues from GIFT Nifty, domestic markets are expected to open marginally positive today. Looking ahead today, our focus would be on listing Jio Financial Services, the demerged financial services unit of Reliance Industries.
In the previous truncated week, Nifty closed on an indecision note while consolidating in 229 points trading range for the week on relatively lower volume. The zone of 19300-19245 holds a crucial support zone following the conjecture of multiple supports like the previous gap area, key moving averages on the daily and higher timeframes, and the build-up of put open interest at the strikes of 19300. The index is anticipated to attract bullish strength provided the zone remains intact on a closing basis.
Supp: 19300-19245-19190
Res: 19370-19465-19520
Tata Sons is in discussions with multiple startups as the conglomerate seeks technical know-how for its £4 billion ($5.1 billion) UK battery plant, where it aims to start mass production in 2026, Bloomberg has reported.
“If you look at the startups that are working in this space, they are at the forefront of technology," Tata Motors Group Chief Financial Officer P.B. Balaji said in an interview in Mumbai. “It’s a melange of opportunities. We are speaking to a host of them," he said.
The collaborations for the battery plant, capable of supplying cells for at least 500,000 vehicles a year, could range from a joint venture and sharing of knowledge to experimentation and licensing agreements, Balaji said.
The NIFTY-50 has formed a doji candle near the support levels with loss of around 55 points with lower highs from last two sessions.
On the higher side the immediate resistance is placed at 19,505, followed by 19,600 which would act breakout levels for the sustained positive trend.
On the downside if we breach 19,200 there could be sharp selloff in midcaps and smallcaps which are outperforming in the corrective action.
Highest call OI at 19,500 strike while on the downside the highest put OI is at 19,300 for the weekly expiry.
The demerged subsidiary of Reliance Industries Ltd (RIL), Jio Financial Services (JFSL), will list on Indian stock exchanges on 21 August. After a special pre-open call auction session on 20 July, Jio Financial Services' share price was set at ₹261.85 apiece on the NSE. According to market observers, Jio Financial Services GMP or grey market premium today is currently between ₹50 and ₹54, translating to a market cap of over ₹2 lakh crore. They predict that the stock will open at between ₹315 and ₹325.
A clutch of companies that eroded billions in shareholder wealth since their public listing has seen an exodus of retail shareholders, a Mint analysis of exchange data showed.
At least 2.2 million retail shareholders, 73 large foreign institutional investors (FIIs), and 22 mutual funds sold shares of 12 large companies, including Nykaa (FSN E-Commerce Ventures Ltd), Life Insurance Corporation (LIC) of India and Paytm (One 97 Communications Ltd), since their initial public offerings. The companies have seen combined investor losses of $80 billion during the period. (Read full story here)
IDBI Bank, Jio Financial Services, Axis Bank, Adani Ports are among stocks to be in focus in today's trade.
Manappuram Finance, Chambal Fertilisers & Chemicals, Delta Corp, Gujarat Narmada Valley Fertilizers and Chemicals, Granules India, Hindustan Copper, Indiabulls Housing Finance, India Cements, Punjab National Bank, SAIL, and Zee Entertainment Enterprises are in the F&O ban list for 21 August.
Asian equity markets were subdued as investors were disappointed after China announced a smaller than expected cut in its key lending rates.
China's central bank trimmed its one-year lending rate by 10 basis points and left its five-year rate unchanged, less than the projected 15 basis points reduction in both. Many analysts were expecting a big reduction to the mortgage reference rate to revive credit demand and shore up the ailing property sector.
MSCI's broadest index of Asia-Pacific shares outside Japan slipped 0.3% to a fresh low for the year, adding to a 3.9% dive last week. US equity futures were marginally higher.
On Friday, the S&P 500 had ended nearly flat as investors looked to next week's speech by Federal Reserve Chair Jerome Powell. Mega-cap technology-related growth stocks dipped, with Alphabet down 1.9% and Tesla falling 1.7%, as investors fretted that interest rates could stay higher for longer. The tech-heavy Nasdaq posted the biggest weekly decline of the three major indices, losing 2.6%. The Dow Jones Industrial Average had added 25.83 points, or 0.1%.
Download the App to get 14 days of unlimited access to Mint Premium absolutely free!
