PremiumShare Market Updates: Sensex and Nifty ended edged higher by around 0.4% and 0.5%, respectively. PSU Bank, IT and Metal jumped, while FMCG and Consumer Durable stocks dragged.
Investors will eye a host of stock market triggers in the coming week including foreign fund inflow, S&P global services purchasing manager's index (PMI) data, crude oil prices, global cues, and more.
Stocks were higher in Asia on Monday after Wall Street was boosted by a report that signalled the US jobs market, while still healthy, is showing some signs of cooling.
The US job report showed job growth increased at a healthy, but more moderate pace last month. The report supports investors’ hopes that the Fed will hold off on raising interest rates again in its bid to lower inflation.
Indian shares advanced on Monday led by metals, IT and PSU Bank on further support for the property sector by China and on rising expectations of a U.S. Federal Reserve rate pause later this month.
The Nifty 50 index was up almost 100 pts to close at 19,528, while the S&P BSE Sensex rose 240 pts to end at 65,628. Thirteen of the 15 Nifty broad-based sectoral indices ended in the green in today's session.
Most indices ended in the green with Metal gaining more than 2%. PSU Bank, IT and Realty jumped more than a per cent each. Consumer Durable and FMCG ended lower in today's session.
Among stocks, Coal India, Wipro, and HCL Tech climbed more than 4% each. Tata Steel and Ultratech Cement gained more than 3% each. Axis Bank and M&M shed around a per cent with Cipla and Asian Paints also ending in the red.
Stocks were higher in Europe and Asia on Monday following a report that signaled the US jobs market, while still healthy, shows some signs of cooling, raising hopes for an easing of interest rate hikes.
Japanese stocks gained with the Topix renewing a 33-year high as a weaker yen lent broad support and economically sensitive stocks rallied amid a strengthening view that the U.S. economy will avoid recession. Market sentiment was also buoyed by gains in Chinese equities after Beijing unveiled a new set of stimulus measures.
The Topix finished the day up 1.02% and a fresh 33-year peak. The Nikkei 225 share average added 0.7%, also the session's peak and a new one-month high.
China stocks jumped logging their best day in more than a month, as authorities stepped up measures to boost the country's faltering economy after previous stimulus policies failed to drive a sustained market rally.
China's blue-chip CSI 300 Index closed up 1.5%, while the Shanghai Composite Index climbed 1.4%. Hong Kong's Hang Seng Index added 2.5% and the Hang Seng China Enterprises Index jumped 3.2%.
European shares rose on Monday, echoing an upbeat mood in Asia as investors were optimistic that a series of stimulus from China will support its slowing economy, while drugmaker Novo Nordisk's shares hit a fresh record high.
UK's FTSE 100 opened higher on Monday, led by mining stocks after China rolled out new measures to prop up its stuttering economy, while London Stock Exchange Group (LSEG) rose on the back of plans for a blockchain-based digital assets business.
Muthoot FinCorp Limited, the flagship company of Muthoot Pappachan Group (Muthoot Blue), has announced its 16th series of secured, redeemable, non-convertible debentures (“NCDs") to raise an amount aggregating up to ₹400 crores, which is within the shelf limit of ₹1,100 crore.
The first tranche issuance of â‚ą100 crore comes with a green shoe option of â‚ą300 crore aggregating up to â‚ą400 crore. The Tranche I Issue with a face value of â‚ą1000 has been open to the public till Thursday, 14th September 2023. (Read More)
Capital markets regulator Sebi has imposed a penalty of â‚ą7 lakh on Shapoorji Pallonji and Company for flouting disclosure norms.
In its order, Sebi found that Shapoorji Pallonji and Company did not take prior approval from the stock exchange for converting non-convertible debentures (NCDs) into a term loan way back in March 2021.
Also, it failed to submit auditor's certificate on utilization of funds, half yearly certificate on maintenance of asset cover and annual report to the debenture trustee, the Securities and Exchange Board of India (Sebi) said in its 64-page order passed on Thursday.
Additionally, the company had not updated certain information on its website as required under the Listing Obligations and Disclosure Requirements (LODR) Regulations. (PTI)
Honda Cars India plans to introduce five sports utility vehicle in the country by 2030 as it looks to have a strong presence in the robustly growing segment, according to a top company executive.
The company, a wholly-owned subsidiary of Japanese auto major Honda Motor Company, on Monday made a foray into the mid-sized SUV segment with an all-new product -- Elevate -- priced between â‚ą10.99-15.99 lakh (ex-showroom Delhi).
The model will compete with the likes of Hyundai Creta, Maruti Suzuki Grand Vitara, Kia Seltos and Toyota's Urban Cruiser Hyryder, among others.
"Our focus is now on the SUV segment. Starting from Elevate we are going to introduce five SUVs by 2030," Honda Cars India President & CEO Takuya Tsumura told PTI in an interaction. (PTI)
India’s manufacturing purchasing managers index (PMI) rose to a three-month high of 58.6 in August following an increase in orders and output, a survey by S&P Global showed. Mint explains the reasons. (Read More)
The IPO of Sahana System Limited was launched in May 2023, with a price range of â‚ą132 to â‚ą135 per equity share. The book build issue was intended for listing on the NSE SME exchange, and it commenced trading on June 12, 2023, at â‚ą163 per share, providing a substantial premium of nearly 21% to the fortunate allottees.
Investors with a short-term investment horizon who participated in the SME IPO likely secured profits and exited their positions. However, those who held onto their allotments have reaped significant gains, as Sahana System's current share price stands at around â‚ą282. This represents more than double the upper price band of the NSE SME IPO, showcasing the strong performance and growth of the company's shares. (Read More)
Shares of China's largest property developer Country Garden surged 19 per cent on Monday after its creditors agreed to restructure the repayment of a renminbi-denominated bond that was due on Saturday.
“Country Garden has won approval from its creditors to extend payments for an onshore private bond, according to sources and a document seen by Reuters, in a major relief for the embattled Chinese developer as well as the crisis-hit property sector," reported Reuters. (Read More)
GG Engineering Ltd (GGEL) on Monday said its board has approved fundraising of up to â‚ą99 crore through the allotment of convertible warrants on a preferential basis.
The board of the company approved the fundraising plan at its meeting on April 2, GGEL said in a statement.
The board approved "raising of funds by way of creating, issuing and allotting up to 75 crore fully-convertible warrants carrying a right exercisable by the warrant holder to subscribe to one equity share having face value of Re 1 per warrant, to persons belonging to promoter and non-promoter, public category on preferential basis at an issue price of â‚ą1.32 per warrant," it said.
However, the proposal aggregating up to â‚ą99 crores for cash is subject to shareholders' approval and other statutory approvals, the company said. (PTI)
The brokerage recommends investors maintain good liquidity (10%) to use any dips in a phased manner and build a position in high-quality companies (where the earnings visibility is quite high) with an investment horizon of 12-18 months.
With this, Axis Securities has included 5 large-cap stocks in its top picks for September. These stocks include ICICI Bank, Maruti Suzuki India, State Bank of India, Varun Beverages and ITC. (Read More)
Gross domestic product (GDP) estimates for the first quarter (April to June) that the National Statistical Office (NSO) released last week have puzzled many commentators. The estimate for year-on-year (yoy) growth in Q1 was 7.8%, lower than Reserve Bank of India’s (RBI) projection of 8%. Several economists were also expecting higher growth. Meanwhile, a few economists pointed out that statistical peculiarities may have inflated NSO’s growth estimates.
Quarterly estimates are given low weightage in serious analyses. SnapView has explained previously that these estimates are preliminary, and prepared using sparse, rudimentary data. As the year progresses and better-quality information becomes available, the NSO revises them on a schedule. (Read More)
Global crude oil prices were steady on Monday after hitting the highest level since November on expectations that supply cuts by OPEC will tighten supplies.
At 11:48 am, the November contract of Brent on the Intercontinental Exchange (ICE) was at $88.57 per barrel, up 0.02% from its previous close. The October contract of West Texas Intermediate (WTI) on NYMEX was at $85.61 a barrel, an increase of 0.07% from previous close.      
In the previous session, Brent touched $88.9 per barrel, the highest in nine months. (Read More)
Bharat Forge's share price demonstrated strong performance, surging nearly 2% to reach a new 52-week high of â‚ą1,096 during intraday trading on the BSE. The stock opened at â‚ą1,086, surpassing its previous closing price of â‚ą1,078.15, and continued to rise, ultimately hitting a fresh one-year peak of â‚ą1,096.
This remarkable performance over the past year is notable for a diversified company like Bharat Forge, which has interests across various sectors including automotive, railways, defense, construction, mining, aerospace, marine, and oil and gas. (Read More)
Dipen VAKIL of InCred Equities views on Hindustan Aeronautics Ltd: FY23 annual report highlights: HNAL IN / HIAE.NS | ADD - Maintained | INR3,942 tp:INR5,000
â– HAL produced 22 aircraft/helicopters in FY23 and incurred a capex of ~Rs21bn for modernizing its facilities and expanding production capabilities.
â– The annual report gives more insights into the higher capex and R&D expenses, which bode well for the growth of the manufacturing segment.
â– We raise EPS estimates by 10% for FY25F as we feel the stock will sustain superior P/E multiple. Retain ADD rating with a higher target price of Rs5,000.
ROX Hi-Tech Ltd, the IT solutions provider, has taken a significant step in its fundraising efforts by submitting its Draft Red Herring Prospectus (DRHP) to NSE Emerge for an initial public offering (IPO).
The ROX Hi-Tech IPO is slated to be an SME IPO, encompassing a total of 60,64,000 equity shares. This includes a fresh issue of up to 55,14,000 shares to infuse new capital into the company and an Offer for Sale (OFS) of up to 5,50,000 shares, providing an opportunity for existing stakeholders to divest a portion of their holdings. (Read More)
Experts and brokerage firms believe the stock can move higher from the current levels as indicated by the fundamental and technical factors of the stocks.
Brokerage firm ICICI Securities maintains a buy call on the Coal India stock, pegging the target price of â‚ą285, implying a 20 per cent upside potential.
The brokerage firm pointed out that Coal India’s August 2023 operating numbers were robust. (Read More)
On Monday, Nazara Technologies experienced a significant surge in its share price, reaching a 52-week high, following the approval by its board to issue shares worth â‚ą100 crore to Zerodha's founders, Nikhil Kamath and Nithin Kamath. Nazara Technologies shares surged by as much as 12.46%, reaching â‚ą853.80 per share on the BSE.
Nazara Technologies, a gaming and sports media platform, announced that its board has given the green light for a preferential allotment of equity shares, with the aim of raising up to â‚ą100 crore. This move is contingent upon receiving approval from the company's shareholders and securing the necessary regulatory approvals. The market's positive response underscores the investor confidence in the company's strategic decisions. (Read More)
Prathamesh Mallya, DVP Research, Non-Agro Commodities & Currency, Angel One Ltd:
GOLD Outlook: We expect gold to trade higher towards 59530 levels, a break of which could prompt the price to move higher to 59580 levels.
CRUDE Outlook: We expect crude to trade higher towards 7140 levels, a break of which could prompt the price to move higher to 7200 levels.
BASE METALS Outlook: We expect copper to trade higher towards 743 levels, a break of which could prompt the price to move lower to 745 levels.
On Monday, Jio Financial Services witnessed its fifth consecutive session of share price growth, surpassing its listing price. Jio Financial Services shares surged by up to 8.84%, reaching â‚ą267.00 per share on the BSE.
The company made its stock market debut on August 21, with an initial listing price of â‚ą265 per share on the BSE and â‚ą262 per share on the NSE, in contrast to its discovered price of â‚ą261.85 per share.
The stock exchanges had previously increased the price band for Jio Financial shares from 5% to 20%. This continued positive performance reflects investor confidence in the company. (Read More)
Indian government bond yields opened the week higher, with the benchmark bond yield nearing the crucial 7.20% mark after U.S. peers rose last week.
The benchmark 7.26% 2033 bond yield was at 7.1877% as of 10:00 a.m. IST on Monday after ending the previous session at 7.1671%.
"Locally, there is no immediate trigger. Hence, bond yields will closely track U.S. peers through the week," a trader with a private bank said.
U.S. yields were up on Friday after the August non-farm payrolls report showed that the world's largest economy added more jobs than expected last month, but the unemployment rate rose with a slight decline in wage inflation. (Reuters)
We witnessed a stronger August for PVs, especially the SUV segment. 2Ws were slightly weak domestically, but exports improved sequentially and yoy. Going forward, the impact of currently prevailing El Nino needs to be seen on the rural centric segments like 2Ws and tractors. CVs again have posted a subdued performance post improvement in previous months. The impact of BS VI phase-2 implementation, OBD-2 norms and high base are resulting into this weakness.
We remain positive on the sector. However, our choice is in the following order –PVs, 2Ws and CVs. Stocks specifically, within the 2Ws, we like Bajaj Auto as we expect the exports growth seen in August to continue hereon as things are easing out in Africa. Also the EV strength gaining from Chetak and upcoming launch of e-3W can be additional positives. Domestically on the motorcycles side we expect new launches to assist posting decent numbers. TVS too looks promising with its dominance in EV scooters and solid performance by its star performers like NTorq, Jupiter, Apache, Raider and the recently launched premium bike Ronnin. While on the PV side, we like M&M because of its strength in the proliferating SUV segment, prudent capital allocation and a robust growth strategy in UVs, EVs and CVs. We also like MSIL on the PV side because of its wide portfolio of vehicles and inroads into the SUV industry. We like Ashok Leyland within CVs as it has a diversified revenue base deriving from LCVs, Defense, MHCVs, exports and spares. Every dip in the stocks mentioned above, shall provide good opportunities for investors to enter into them from medium to long term perspective.
The London Stock Exchange Group has drawn up plans for a new digital markets business to offer extensive trading of traditional financial assets on the blockchain technology known for powering cryptocurrency, the Financial Times reported.
The company had been examining the potential for a blockchain-powered trading venue for around a year and reached an "inflection point" where it decided to take plans forward, Murray Roos, head of capital markets at the LSE Group, told FT in an interview.
Blockchain is a digital ledger which records and verifies transactions.
LSE is not building anything around cryptoassets but it is looking to use the technology that underpins tokens like bitcoin to improve the efficiency of buying, selling and holding traditional assets, Roos told FT. (Reuters)
On why Yes Bank shares are skyrocketing for the last two straight sessions, Avinash Gorakshkar, Head of Research at Profitmart Securities said, “Yes Bank shares have been in uptrend for the last two sessions after some media reports on Friday about Subhash Chanda and JC Flower ARC ending near two year tussle of debt repayment. These reports say that Yes Bank's asset restructuring arm has taken a cut to the tune of 75 per cent and now Subhash Chandra would pay ₹1500 crore instead of ₹6500 crore. But, this ₹1500 crore would be paid in one time." (Read More)
The Indian rupee opened 4 paise higher against the US dollar on Monday amid a steady American currency. The local currency opened at 82.68 a dollar as compared to previous close of 82.72.
The US dollar remained steady even after a soft US jobs report reinforced expectations that the US Federal Reserve will not hike interest rates anymore.
The initial public offering (IPO) for Ratnaveer Precision Engineering Limited commenced today and will continue accepting bids until September 6, 2023. The engineering firm has set the IPO price for Ratnaveer at â‚ą93 to â‚ą98 per equity share, with the goal of generating â‚ą165.03 crore through this public offering. The book build issue is intended for listing on both the BSE and NSE stock exchanges. In the interim, the company's shares are actively traded in the unlisted stock market. Market experts note that Ratnaveer Precision Engineering Limited shares are presently commanding a â‚ą50 premium in the grey market. (Read More)
China's biggest banks are extending billions of dollars to Russia as sanctions pressure Western lenders to exit the country since Moscow's invasion of Ukraine in February 2022, according to a report published by the Financial Times.
As per data analyzed for the FT by the Kyiv School of Economics, the four biggest banks in China have quadrupled their exposure to Russia's banking sector since the war in the Ukraine region, Bloomberg reported. (Read More)
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: The economic data from the US confirms the soft landing narrative that has been driving equity markets globally. August unemployment in the US has risen to 3.8% and there is a softening trend in average hourly wages. This data suggests that the Fed is likely to hold rates in the September meeting. This is a favourable indication for global equity markets.
In India, a large number of small caps, particularly the micro caps, are rising, mainly driven by market momentum. Many newbie investors are chasing such stocks for quick gains. Many of these stocks don’t have strong fundamentals and investment in these stocks can be very risky. At this juncture, long-term investors should prefer the safety of high-quality large-caps."
Independent franchise bottler SLMG Beverages on Friday said it plans to invest approximately â‚ą100 crore to increase its electric vehicle fleet to 5,000 by 2024 from 2,000 at present for its distribution network.
With this investment the company will be converting its distribution entirely to EVs, SLMG Beverages said in a statement.
Mahindra & Mahindra and Tata Motors will be the OEM partners for the 3-wheelers for distribution of bottles across four states, it said.
“SLMG Beverages will invest approximately ₹100 crore to increase its fleet from 2000 EVs to 5000 EVs for its distribution network," the company said in the statement.
SLMG Beverages claims to be India's largest independent bottler of Coca-Cola in India and South West Asia. (PTI)
With an aim to stop outages caused by lower hydroelectricity output, India has stepped up the use of coal to generate electricity as an increase in renewables is struggling to keep pace with record power demand, according to Reuters reports.
India's electricity demand typically peaks in May when people crank up air-conditioners to beat the heat. It is unusual for India's electricity use to spike in August when temperatures are lower due to the annual monsoon.
Hence, the driest August has resulted in power generation surging to a record 162.7 billion kilowatt hours (units), a Reuters analysis of data from the federal grid operator Grid India showed. (Read More)
Owners of three Indian Premier League (IPL) teams have approached the Board of Control for Cricket in India (BCCI) regarding their capital raising plans, three people aware of the matter said.
While KPH Dreams Cricket Pvt. Ltd (Kings Xi Punjab) and JSW GMR Cricket Pvt. Ltd (Delhi Capitals) are weighing a public listing, Rajasthan Royals is looking to raise private equity funds, said a BCCI official, one of the three people who spoke on condition of anonymity.
A second BCCI official also confirmed that two firms approached the board for clarity on listing on bourses.
Currently, the talks are at an exploratory stage. (Read More)
Kotak Mahindra Bank: Uday Kotak steps down as Managing Director and CEO, with Dipak Gupta taking over temporarily until year-end, pending regulatory approval.
Reliance Industries: Reliance Retail Ventures aims to raise $2.5 billion from global investors ahead of a potential stock market listing.
Bajaj Auto: Bajaj Auto Consumer Finance gains regulatory approval from the RBI to operate as a non-banking finance company.
Infosys: Infosys completes its acquisition of Danske Bank's IT center in India, supporting digital transformation initiatives.
ONGC: Government adjusts taxes on crude oil production and fuel exports.
IDFC First: GQG Partners acquires a 2.6% stake in IDFC First Bank for â‚ą1,527.26 crore.
Jio Financial Services: BSE increases circuit filter to 20% for Jio Financial Services, removed from S&P BSE indices.
Tata Motors: Tata Motors reports a 3.5% decline in PV sales for August 2023.
Biocon: Biocon's unit acquires Eywa Pharma's US manufacturing facility for $7.7 million.
Coal India: Coal India achieves a 13.2% increase in coal production in August 2023 compared to the previous year. (Read More)
On Saturday, September 2, the BSE (Bombay Stock Exchange) adjusted the circuit filter for Jio Financial Services, increasing it from 5 per cent to 20 per cent. This change will become effective starting Monday, as reported by the stock exchange in an official notification. Circuit filters represent a specified price range for each index.
Prior to the market opening on Friday, September 1, Jio Financial Services Ltd's shares were delisted from all S&P BSE indices, including the Sensex. This exclusion was originally scheduled to take place after August 23, following Jio's listing on August 21, subsequent to its spin-off from its parent company, Reliance Industries Ltd. (Read More)
Vaishali Parekh, Vice President — Technical Research at Prabhudas Lilladher has recommended these stocks for day trading:
1] REC: Buy at â‚ą238.80, target â‚ą252, stop loss 234;
2] BEL: Buy at â‚ą137.85, target â‚ą145, stop loss 136; and
3] City Union Bank or CUB: Buy at â‚ą125.60, target â‚ą132, stop loss â‚ą124. (Read More)
Rajiv Jain-led US-based boutique investment manager GQG Partners Llc, on Friday, acquired a 2.6% stake in private lender IDFC First Bank Ltd for ₹1,527.26 crore, raising the former’s total fresh investment in Indian firms to over ₹41,000 crore in a span of just six months.
Through a bulk deal on the exchanges, Cloverdell Investment Ltd, an institutional shareholder in IDFC First, has sold 278.7 million shares or 4.2% stake in IDFC First Bank for â‚ą2,480.3 crore to several entities including GQG Partners. (Read More)
Bajaj Auto's subsidiary, Bajaj Auto Consumer Finance, has obtained the Certificate of Registration from the Reserve Bank of India (RBI) to commence its operations as a non-banking finance company (NBFC). This development was reported in the company's filing on September 1, as per information from MoneyControl.
In the exchange filing, Bajaj Auto said, “We would like to inform you that Bajaj Auto Consumer Finance Limited, the wholly-owned subsidiary of Bajaj Auto Limited, has received on 31 August 2023 from RBI a Certificate of Registration, bearing No. N-13.02465 dated 29 August 2023 under section 45-IA of the Reserve Bank of India Act, 1934 to commence/carry on the business of nonbanking financial institution without accepting public deposits, subject to the conditions given in the said certificate." (Read More)
Indian billionaire Mukesh Ambani's Reliance Retail Ventures is in advanced talks with global investors to raise around $2.5 billion by the end of September, ahead of a potential stock market listing, people familiar with the matter told Reuters.
Three sources said the target fund raise of $2.5 billion is part of a combined $3.5 billion target the firm has set for itself, a part of which - $1 billion - came from Qatar Investment Authority (QIA) and was announced last month.
In an emailed statement, Reliance said "As a policy, we do not comment on media speculation and rumours.", but added "Our company evaluates various opportunities on an ongoing basis." (Read More)
In a regulatory disclosure, Kotak Mahindra Bank has announced that Uday Kotak has officially stepped down from his position as Managing Director & CEO of the bank, effective from September 1, 2023, due to his voluntary resignation, which was duly deliberated by the Bank's Board.
Furthermore, the bank has outlined an interim plan where Dipak Gupta, the Joint Managing Director, will assume the responsibilities of the Managing Director & CEO until December 31, 2023, pending approval from both the Reserve Bank of India and the bank's members. (Read More)
A choppy day of trading on Wall Street ended Friday with slight gains for stocks, as the market notched its second straight winning week.
The market got a boost early on from a closely watched government report that showed U.S. job growth increased at a healthy, but more moderate pace last month. The report supports investors’ hopes that the Federal Reserve will hold off on raising interest rates again in its bid to lower inflation.
After initially rising as much as 0.8% following the release of the jobs report, the major indexes shed most of their gains and spent the day wavering between small gains and losses.
The S&P 500 finished 0.2% higher. The benchmark index was coming off its first monthly loss since February. The Dow Jones Industrial Average rose 0.3% and the Nasdaq composite closed less than 0.1% lower. Still, that slight dip broke its five-day winning streak.
The Labor Department reported Friday that employers added a solid 187,000 jobs in August. The job growth marked an increase from July’s revised gain of 157,000, but still pointed to a moderating pace of hiring compared with earlier this year. From June through August, the economy added 449,000 jobs, the lowest three-month total in three years.
The report also showed that the unemployment rate rose from 3.5% to 3.8%, the highest level since February 2022, though still low by historical standards. (AP)
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