Market Highlights: Sensex closes sub-65k, Nifty down 120 pts; all sectors end in red, Bajaj Finserv, Jio Fin shine

Indian shares fell on Friday, dragged by financials and information technology (IT) stocks, after the Reserve Bank of India's (RBI) policy meeting minutes flagged near-term inflation risks.

The Nifty 50 index fell 120 pts to close at 19,265, while the S&P BSE Sensex closed below 65,000, at 64,886, a drop of 365 pts. Nifty shed 0.7% on a weekly basis, while Sensex shed around 0.4%.

All major sectoral indices declined with PSU Bank, Pharma, Realty, Metal and FMCG shaving more than a per cent.

Jio Finance and Bajaj Finserv jumped more than 2% each, while Asian Paints gained around a per cent and were among the major gainers. L&T, Dr Reddy's, JSW Steel and Adani Ports lost more than 2% each.

Asian stocks tracked a drop on Wall Street while Treasury yields stabilized after further upward pressure as traders await Jerome Powell’s speech for clues on the interest-rate outlook.

Japan's Nikkei stock average ended 2% lower as chip-related heavyweights Advantest and Tokyo Electron dropped after a rally in Nvidia's U.S.-listed shares fizzled out.

The Nikkei fell 2.05% in its biggest daily drop in more than three weeks, but posted a 0.55% weekly gain. The broader Topix fell 0.88% and lost 1.3% for the week.

China and Hong Kong stocks tracked Asian markets lower as investors braced for the risk of a hawkish tilt in the U.S. monetary policy, while worries about China's economic health linger.

China's bluechip CSI300 Index and the Shanghai Composite Index fell 0.4% and 0.6%, respectively. Hong Kong's Hang Seng Index lost 1.4%.

European shares edged higher and the dollar held firm near an 11-week peak against major peers on Friday as investors awaited remarks from the heads of the Federal Reserve and European Central Bank at a conference in Jackson Hole.

UK's FTSE 100 index advanced on track for its first weekly rise in four as investors awaited cues on the U.S. interest rate outlook, while a slump in the shares of CMC Markets and Watches of Switzerland weighed on the mid-cap index.

The NCD Tranche II Issue of CreditAccess Grameen Ltd. which opened on 24th August 2023, has received a healthy response with total subscriptions surpassing 2.0 times the base issue size of INR 400 crore, as of 2.00 pm on 25th August 2023. In a statement issued, the company said, considering the strong investor demand, the company is expected to exercise the green shoe option to retain oversubscription up to an additional INR 600 crore over and above the base issue size.

Prateek Singhal, Head Reinsurance - Howden Insurance Brokers India Pvt. Ltd: With a vision to foster the entire ecosystem around reinsurance, IRDA has brought about a few amendments that aim to boost the overall capacity in India. The minimum required capital for foreign reinsurance branches has been halved from Rs. 100 crore to Rs. 50 crore, enabling more reinsurers to enter the Indian market. The previously six-level preference hierarchy has been simplified to four levels. The amended Order of Preference for IIOs (International Financial Services Centre Insurance Offices) and FRBs will increase competitiveness, benefiting the sector. All these developments demonstrate the regulator's intention to create India as the new Asian reinsurance centre.

Indian government is considering slashing import tax on electric vehicle for automobile manufacturers if they tie up with a local manufacturing unit. The move comes after Elon Musk's Tesla made an investment proposal to set up a car factory in India, a way to enter the domestic market.

According to an exclusive report by Reuters, the import tax could be reduced to as low as 15% as opposed to the current 100% for cars that cost above ₹33 Lakhs and 70% for the rest. (Read More)

International investment firms, namely Nexpact Limited and AG Dynamic Fund Limited, have recently invested in Nexpact Limited and AG Dynamic Fund Limited, respectively. This small-cap stock has demonstrated a significant growth trajectory, offering substantial returns to its long-term positional shareholders within the year-to-date period.

These foreign institutional investors (FIIs) based in Mauritius have acquired their stakes in the company through a preferential issue facilitated by the small-cap enterprise Sprayking Agro Equipment Ltd. (Read More)

Vishnu Prakash IPO: The initial public offering (IPO) of Vishnu Prakash R Punglia Limited has received strong response from investors so far. The bidding process of Vishnu Prakash IPO opened on August 24 and will end of August 28. (Read More)

Syrma SGS Technology's share price experienced a notable upswing of more than 9%, reaching a 52-week high during Friday's trading session. This surge was in response to the appointment of Satendra Singh as the Chief Executive Officer (CEO) of the company. Commencing at ₹496.95 per share on the Bombay Stock Exchange (BSE), Syrma SGS's share price surged to an intraday peak of ₹540, with a low of ₹494.05.

As outlined in the company's exchange filing, this appointment is a significant addition to Syrma SGS's management team and aligns with the company's strategic objectives.

"We wish to inform you that the Board of Directors of the Company have considered and approved today i.e., August 24, 2023, appointment of Satendra Singh as CEO of the company with immediate effect," said Syrma SGS Technology in its release. (Read More)

Telecom companies need tariff hikes to boost growth, but the stiff competition in the industry is likely delaying the move. Analysts expect the price increases to come through after FY24.

Until then, the consolidation in the industry in terms of market share gains is expected to continue. Here, Bharti Airtel Ltd and Reliance Jio are the key beneficiaries. Vodafone Idea Ltd’s struggles to raise capital to fund its growth augurs well for other companies, especially in terms of subscriber addition. In this backdrop, Bharti and Jio would reap the benefits. (Read More)

Zepto, an online grocery delivery startup, has successfully secured $200 million in a Series-E funding round, propelling its valuation to $1.4 billion. This achievement has positioned Zepto as the first unicorn of the year 2023.

The funding round was spearheaded by StepStone Group, a private markets investment firm based in the United States. Zepto, established in the wake of the pandemic, announced this significant development on Friday.

Notably, this investment holds significance as it marks StepStone Group's inaugural direct investment in an Indian company.

The co-branded credit-card aims to become one of the most rewarding travel cards in India. Users can avail the benefits offered by both the brands with this credit card. They will also get benefits such as priority late checkout, exclusive member rates, Marriott Bonvoy bonus points and much more.

“We are excited to launch our first Marriott Bonvoy co-branded credit card in India, following successful launches in Japan and South Korea," highlighted Ms. Ranju Alex, Area Vice-President, South Asia, Marriott International. (Read More

On Friday, the share price of Astra Microwave Products surged by over 7%, reaching a new 52-week high. This impressive gain followed the company's success in securing orders worth ₹158 crore for satellite and radar systems. Astra Microwave's share price witnessed a substantial increase of 7.72%, reaching a peak of ₹398.60 per share on the Bombay Stock Exchange (BSE).

The company announced that it had secured orders for the supply of satellite sub-systems, airborne radar, and sub-systems for radar and electronic warfare projects. These orders were obtained from significant entities including the Defence Research and Development Organisation (DRDO), the Indian Space Research Organisation (ISRO), and Defence Public Sector Undertakings (DPSUs), as reported in the company's exchange filing. (Read MOre)

Mining magnate Anil Agarwal has said his group's flagship firm Vedanta Ltd is considering demerger and separately listing all or some businesses like aluminum, iron and steel, and oil and gas to unlock shareholder value.

While the London-based parent Vedanta Resources will continue to be the holding company of diversified mining group Vedanta Ltd, some or all businesses will operate parallelly as independent, listed companies.

In a video message to shareholders, Vedanta Chairman Anil Agarwal said the company has a diversified presence in oil and gas, metals and mining, and a separate listing of different businesses will help them grow many folds.

"This means if you have one share of Vedanta Ltd, you will have many shares of other (demerged) companies," he said. (PTI)

India's top fuel retailer Indian Oil Corporation will invest over ₹4 lakh crore in this decade to expand oil refining and petrochemical business as well as in energy transition projects as part of a plan to become a '360-degree energy company', its chairman Shrikant Madhav Vaidya said on Friday.

IndianOil will invest ₹1 lakh crore in expanding capacity to refine and turn crude oil into fuel and a staggering ₹2.4 lakh crore in projects that will help it achieve net-zero carbon emissions from its operations. Another ₹60,000 crore is planned to be invested in setting up a giant petrochemical complex at Paradip in Odisha.

These investments will help the company continue to meet the rising energy needs of a fast-expanding economy while also treading on the path of the energy transition, he told company shareholders at the annual general meeting. (PTI)

Countries globally would need about USD 4.5 trillion over the next 7-10 years to finance their development goals, B20 India Task Force on Financing for Global Economic Recovery, Chair, Uday Kotak said on Friday.

The task force in its recommendation also suggested ways for businesses to finance it. It suggested setting up of a 'global acceleration fund' where every business globally contributes 0.2 per cent of profit to social development goals.

“The money required in the next 7-10 years is about USD 4.5 trillion (to meet the priorities of development goals),” Kotak said at the B20 Summit India 2023.

“What we are proposing is every business contributes 0.2 per cent of profit to social development goals which are priority for the world," Kotak said. (PTI)

Due to the US dollar's strengthening and the US dollar index reaching an 11-week high of 104.25 levels, gold prices remain relatively stable both in the international and domestic markets. The gold futures contract on the Multi Commodity Exchange (MCX) with an October 2023 expiry commenced trading at a lower value of ₹58,743 per 10 grams and subsequently reached an intraday low of ₹58,696.

In the global spot market, the current gold price has experienced a decline of around 0.15 percent, hovering around the level of $1,915 per ounce. (Read More)

In morning trade on Friday, the share price of Shoppers Stop experienced a sharp decline of over 11 percent on the Bombay Stock Exchange (BSE). This drop followed the announcement of the resignation of the company's Managing Director and Chief Executive Officer, Venu Nair. The company's shares commenced trading at ₹799.85 in contrast to the previous closing price of ₹811.45, and subsequently plummeted by 11.34 percent to reach ₹719.45. As of around 11:45 am, the stock was trading at ₹724.65, reflecting a decrease of 10.70 percent on the BSE. (Read More)

Jio Financial Services shares exclusion from Sensex and other BSE indices has been extended by another three days to August 31. The move comes after JFSL shares hit 5% lower circuit limits for two more consecutive days.

Jio Financial Services stock will now be removed from the BSE indices before opening of trading on September 1.

Sharma Sharma's portfolio stock, Brightcom Group, has been consistently triggering the lower circuit for the past three consecutive sessions. Retail shareholders of Brightcom Group have been divesting their holdings in the company since Wednesday. This trend follows an interim order issued by SEBI on Tuesday, after the market closed, which raised concerns regarding identified irregularities in the preferential issue of the company's shares. In this interim order, the capital market regulator prohibited the esteemed investor Shankar Sharma and 21 other individuals from divesting their shares in the company. (Read Nire)

During the early trading hours on Friday, the share price of Bajaj Finance witnessed a rise of 2%. This gain was attributed to the initiation of coverage on the stock by the global brokerage firm Nomura, which assigned a 'Buy' rating. Nomura has established a target of ₹8,700 for Bajaj Finance shares, indicating a potential increase of around 22% from the closing price on Thursday.

According to Nomura, Bajaj Finance remains consistent in generating impressive figures across various metrics, with a Compounded Annual Growth Rate (CAGR) of 31% in Asset Under Management (AUM) spanning from fiscal year 2013 to the first quarter of fiscal year 2024. (Read More)

Satish KUMAR and Abbas PUNJANI views on Atul Ltd: 

FY24F PAT to fall; B/S leverage to rise

ATLP IN / ATLP.NS | REDUCE - Maintained | INR6,892 tp:INR5,955

Mkt.Cap:US$2,801m | Avg.Daily Vol:US$5.1m | Free Float:54.9%

■ The slowdown in India’s textile exports and the global agrochemicals market is hitting Atul very hard.

■ The company’s expansion project may result in its balance sheet getting leveraged up for the first time in many years.

■ Consensus EPS estimates are still too high. We expect a cut in consensus EPS estimates. Retain REDUCE rating on Atul with a lower TP of Rs5,955.

In an effort to enhance its returns, the Employees Provident Fund Organisation (EPFO) is engaged in discussions with the Finance Ministry to explore the feasibility of reinvesting its funds in the stock market through exchange-traded funds (ETFs), as reported by the Economic Times.

The article further states that the EPFO is considering the adoption of a strategy to maximize returns from equities while simultaneously safeguarding gains against market fluctuations.

This initiative follows the endorsement of EPFO's highest decision-making body, the Central Board of Trustees (CBT), during its meeting in March. The CBT approved the retirement fund organization's ability to reinvest the proceeds obtained from the redemption of ETF investments. (Read More)

Sudhanshu Bansal of JM Financial Institutional Securities views on Suzlon Energy: Initiating Coverage BUY INR 30 - 

Suzlon Energy Ltd. (Suzlon) with leading market share (33%), higher depth of manufacturing (4.5GW), most credible O&M services (35%+ EBITDA) and technology superiority (3MW sets under testing) is best placed to grow its order book (1.5GW/2GW as of Jun’23/Mar’26) and enhance project execution (800MW/1500MW in FY24/FY26) gaining from the industry tailwinds. With a visible bidding trajectory from MNRE, emergence of RTC - C&I segment, upcoming Repowering policy and multiple policy initiatives, the wind energy sector is poised for a decadal growth. As the company is on its way to become net-debt free, we expect the Suzlon to deliver revenue and EBITDA CAGR of 31% and 38% respectively over FY23-26E. We expect Suzlon’s EPS to reach INR 1.4 in FY26. We initiate coverage on the stock with a BUY rating and a Sep’24 TP of INR 30/sh (based on a 25x Sept’25E EPS).

Following reports of a substantial block deal, the share price of Paytm surged by over 3%, achieving a new 52-week high. Paytm's shares experienced a notable increase of 3.84%, reaching a peak of ₹939.00 per share on the Bombay Stock Exchange (BSE).

Reports indicate that approximately 2.3 crore Paytm shares, equivalent to a 3.6% stake in the company, were traded in a series of transactions.

Earlier reports had suggested that Antfin, Paytm's parent company, was poised to sell an additional 3.6% of shares, amounting to around 2.3 crore shares, in the fintech giant through a block deal scheduled for Friday. (Read More)

Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: The market is delicately poised waiting for triggers. The transient role of sentiments was evident yesterday when the market couldn’t sustain the enthusiasm triggered by the successful Chandrayaan-3 mission and its positive impact on stocks related to the mission.

The message from the Fed chief Jerome Powell tonight will be keenly watched for any clues on the future trajectory of interest rates in the US. The Fed chief is unlikely to indicate that the rate hiking cycle is coming to an end.

An unhealthy trend in the market is the sustained rise in the prices of many small micro-cap stocks. This is partly aided by the sustained flow of funds into the small-cap segment. Valuations in the segment are approaching risky levels. Safety is now in large caps."

The Indian rupee opened marginally lower against the US dollar on Friday, snapping three-day gaining streak, as the dollar index reached near two-month high amid cautiousness ahead of Federal Reserve Chair Jerome Powell's speech. The local currency opened at 82.58 as compared to previous close of 82.57 a dollar.

The US dollar index, which measures the currency against a basket of six developed-market peers, pushed as high as 104.20 in Asia, a level last seen in early June. The yield on the 10-year US treasury rose at 4.25%. (Read More)

A highly mutated COVID variant named BA.2.86 has been identified in Switzerland and South Africa, along with Israel, Denmark, the US, and the UK, according to a leading official from the World Health Organization (WHO), Reuters reported.

“We are in a very different phase (of the pandemic) than if this popped up in the first year," said Dutch virologist and WHO adviser, Marion Koopmans. (Read More)

Before the anticipated initial public offering (IPO) of Reliance Retail Ventures Ltd (RRVL), Mukesh Ambani's Reliance Industries Limited (RIIL) is contemplating the sale of an additional 8-10% stake in RRVL, as stated by industry experts, as reported by the Economic Times.

The article noted that this stake sale is expected to be concluded within a span of 12-15 months. This strategic move is aimed at facilitating a successful future public listing of RRVL. The current valuation of $100 billion is deemed to be too substantial for the market to easily absorb, according to the report by ET. In an effort to make the size of the IPO more manageable, the company is considering the sale of stake. (Read More)

On Thursday, the share price of Walt Disney saw a decrease of 3.9%, settling at $82.47, a value that marked its lowest point in almost nine years. This drop hasn't been witnessed since October 16, 2014. In light of this decline, investors are projecting further fragility in Disney's shares over the upcoming months.

The downward trend in Disney's shares coincides with investors scrutinizing the company's strategy to revive its fortunes. Earlier this month, CEO Bob Iger outlined a turnaround plan that includes a combination of price increases for its streaming services, an increased presence of advertisements, and cost reduction measures aimed at bolstering the company's performance. This information was reported by Reuters. (Read More)

Top stocks in focus:

- State Bank of India (SBI) Chairman likely to stay for another 10 months.

- Adani Group confident in covering debt maturing in the next decade.

- Promoter of One97 Communications plans to sell stake in Paytm.

- Zee Entertainment dealing with multiple legal disputes.

- Max Financial Services sees stake sale by promoter.

- Reliance Industries to jointly manage properties with Oberoi Hotels.

- Coforge sold by BPEA EQT, becomes entirely owned by public investors.

- Telecom subscriber base grows with Reliance Jio and Bharti Airtel adding customers.

- Vedanta receives arbitration award in Rajasthan block case.

- Infosys announces partnership with tennis star Rafael Nadal. (Read More)

India is likely to skip selling sovereign green bonds this fiscal year as investors demand higher yields despite their eco-friendly label, said a senior government official.

The earlier plans to issue ₹15,000-16,000 crore in green bonds during the second half of FY24 have been put on hold.

“Green bonds haven’t provided any benefits yet. What is the point of issuing green bonds with so many conditions if it costs the same as other bonds," the person said. “The companies, which have claimed to want to invest in green bonds, are not willing to make sacrifices on the yield front. We should see some yield benefits for the issue of green bonds. But, this is not the case." (Read More)

As of the end of June, the telecom subscriber count in the nation experienced a slight increase, reaching 1,173.89 million. This growth can be attributed to the influx of new customers primarily brought in by Reliance Jio, as stated by the Telecom Regulatory Authority of India (TRAI) on Thursday, August 22. The expansion of the subscriber base was predominantly observed in the realm of mobile telephony, where Reliance Jio introduced more than 2.27 million new customers, while Bharti Airtel contributed an additional 1.4 million customers, as indicated by the provided data.

"The number of telephone subscribers in India increased from 1,172.57 million at the end of May-23 to 1,173.89 million at the end of June-23, thereby showing a monthly growth rate of 0.11 per cent," the TRAI said in its monthly subscriber report. (Read More)

BPEA EQT on Thursday sold its entire 26.63% stake in Coforge Ltd (formerly NIIT Technologies) for ₹7,684 crore to multiple investors through bulk deals, leaving the software services firm without a promoter and the first of its kind to be entirely owned by public investors.

The block deals in the software services firm boosted its stock by around 10% to ₹5,391 on Thursday, with the transactions drawing marquee investors such as SBI Mutual Fund, Aditya Birla Mutual Fund, Capital Group and Kotak Mahindra Group. (Read More)

It is anticipated that Dinesh Khara, the Chairman of SBI, will continue to hold his position for an additional span of 10 months. Although he was appointed in October 2020 and his initial three-year term might conclude, SBI's regulations allow for an extension of his tenure. The bank's guidelines dictate that the chairman must retire at the age of 63, a milestone that Khara will reach in August of the coming year.

As per information from sources cited in a CNBC TV18 report, there are indications that SBI Managing Director Ashwini Kumar Tewari might also see an extension of his role. Although his present term is scheduled to conclude in January 2024, the report suggests the potential for a two-year extension.

Vaishali Parekh, Vice President - Technical Research at Prabhudas Lilladher has recommended three intraday stocks for today, here we list out full details in regard to those day trading stocks:

1] Asian Paints: Buy at ₹3225, target ₹3340, stop loss ₹3180;

2] Borosil Renewables: Buy at ₹447, target ₹468, stop loss ₹440; and

3] Britannia: Buy at ₹4542, target ₹4750, stop loss ₹4475. (Read More)

Adani Group said cash and profit generated from its sprawling infrastructure business can cover all the debt maturing each year in the coming decade, as billionaire Gautam Adani tries to restore investor confidence days before India’s markets regulator is due to submit findings from a probe into the group’s alleged wrongdoings.

In a credit report released Thursday, the power-to-port conglomerate said its cash flow generated from business operation and balances stood at ₹77,890 crore ($9.4 billion) by the end of March. That provides enough liquidity for the company to cover debts that will mature within a year. (Read More)

Wall Street slumped Thursday, despite a blowout profit report from Nvidia, following some mixed reports on the U.S. economy.

The S&P 500 dropped 1.3% for its worst loss in three weeks. It nearly wiped out its gain for the week, which had been a bright spot in what's been a rough August.

The Dow Jones Industrial Average dropped 373 points, or 1.1%, and the Nasdaq composite tumbled 1.9%.

Stocks sank as Treasury yields stabilized following their tumble a day earlier. High yields in the bond market have been upping the pressure because they make investors less willing to pay high prices for stocks and other risky investments. They may be set to go even higher, depending on what the head of the Federal Reserve says in a speech scheduled for Friday.

Hope had built that the Fed’s latest rate hike in July may prove to be the last of this cycle, after inflation cooled considerably since peaking above 9% last summer. Traders also have made bets for the Fed to begin cutting rates early next year.

But a series of stronger-than-expected reports on the economy has diminished those hopes. That’s why Fed Chair Jerome Powell's speech on Friday morning is so highly anticipated. He’ll be speaking at an event in Jackson Hole, Wyoming, that has ben the site of major policy announcements in the past by the Fed. (AP)