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PremiumShare Market Updates: Sensex and Nifty remained positive and gained around 0.5% on Friday with all sectors ending higher including Finance, IT and Realty.
The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) kept the repo rate unchanged at 6.50% and stance of ‘withdrawal of accommodation’. RBI kept GDP growth forecast for FY24 unchanged at 6.5%.
Indian bonds fell the most in a year after the central bank upped the ante against inflation by saying it may consider selling bonds to soak up excess funds from the banking system.
Asian shares mostly rose in cautious trading Friday after Wall Street drifted to a quiet close on worries about a too-hot U.S. job market.
Indian shares advanced on Friday, led by gains in rate-sensitive sectors like auto and realty, after the central bank stood pat on key interest rates as expected and kept its inflation and growth expectations unchanged.
The NSE Nifty 50 index gained 100 pts to close at 19,653, while the S&P BSE Sensex rose 365 pts to end at just below 65,600, at 65,995. The Indian rupee was mostly unchanged, while bond yields rose after the RBI said it would consider open market operations to manage liquidity.
The RBI's rate-setting committee kept the key lending rate steady at 6.50%. The central bank also maintained its policy stance of "withdrawal of accommodation" to bring inflation within its target band, while keeping inflation and the growth forecast unchanged.
Bajaj twins (Bajaj Finserv and Bajaj Finance) led the rally with Titan and IndusInd Bank following them to top the stock charts. HUL and Bharti Airtel ended in the red with marginal losses.
Among sectoral indices, almost all indices ended higher in today's trading with IT, Realty and Finance topping the charts. The energy sector came under pressure and ended flat.
Asian shares mostly rose in cautious trading Friday after Wall Street drifted to a quiet close on worries about a too-hot U.S. job market.
Japan's Nikkei share average ended lower, dragged down by the declines in heavyweight technology stocks, as investors awaited the U.S. jobs report later in the day for clues on the Federal Reserve's interest rate path. The Nikkei index edged down 0.26%. The index was volatile this week and lost 2.7%.
Hong Kong stocks rose for a second session tracking firmer overseas markets. raders were also adjusting their positions and preparing for the reopening of China's markets next week after the Golden Week holiday, while awaiting a catalyst for economic growth.
Hong Kong's benchmark Hang Seng Index ended 1.6% higher, but was down 1.8% for the first week of the fourth quarter.
European stocks crept higher, following gains in Asian markets as traders prepared for a US payrolls report forecast to show employers slowed hiring last month, potentially easing pressure on the Federal Reserve to raise interest rates again.
Affordable Robotic rights issue: The board of directors of the Affordable Robotic & Automation Ltd has approved fund raise through rights issue. The company board fave its approval in its board meeting today.
After this stock market newsbreak, Affordable Robotic shares witnessed sharp upside movement and went on to hit 5 per cent upper circuit by Friday noon. The small-cap stock is currently locked in with upper circuit and quoting ₹684.45 apiece on BSE.
Emerging economies are facing headwinds from all sides, with a recent selloff in U.S. Treasuries and China's slowing economy adding layers of uncertainty while the Federal Reserve might not have reached the end of its rate hike cycle.
Restructuring efforts for defaulted countries could reach a breakthrough before year-end as talks continue, while the finances of nations like Pakistan and Egypt will also be under scrutiny when policy makers and asset managers gather for the World Bank and International Monetary Fund's annual meetings in Marrakech next week.
"The external backdrop does remain challenging for emerging and frontier markets across the board and that's out of their control," said Joseph Cuthbertson, senior sovereign analyst at PineBridge Investments. "It very much depends on the pace and timing of a Fed pivot." (Reuters)
Barclays Plc is hiring dealmakers in India while its global business slashes 300 jobs across the corporate and investment banking roles, Bloomberg reported on October 6.
Srikanth Chakka and Sameer Sood of Credit Suisse have been tapped for the MNC's advisory business in India by year-end, sources told Bloomberg. Sood who was with Credit Suisse since 2010 will join as MD; while Chakka, who joined the Swiss bank in 2021, will head Barclays industrials in the investment banking division in Mumbai. (Read More)
SoftBank is reportedly planning to divest a 2.54 per cent stake in PB Fintech, valued at nearly ₹874 crore, through a block deal, as per sources cited by CNBC-TV18. The investment holding company led by Masayoshi Son is considering executing the share sale with a potential discount of 0-2 percent to the current market price of ₹767 per share. The indicative price range for the block deal in PB Fintech is expected to be around ₹752-767 per share.
Kotak Mahindra Capital is reportedly the banker in charge of managing this share sale, according to reports. (Read More)
India's benchmark 10-year bond yield posted its biggest one-day jump in 17 months on Friday, with overall bond yields expected to rise further, on the Reserve Bank of India's plan of open market sales of bonds via auctions.
The 10-year yield rose to 7.3645%, with the 15 basis points increase its biggest single-session rise since May 4, 2022.
The surge came after RBI Governor Shaktikanta Das said, while announcing monetary policy, the central bank plans to auction bonds via open market operations (OMO) to manage liquidity. (Reuters)
Indian Steel Association (ISA) on Friday said it has signed an agreement with the Government e-Marketplace (GeM) to help MSMEs in supplying their products and make procurement through the online marketplace.
"ISA proudly announced the signing of a Memorandum of Understanding (MoU) with GeM. This partnership aims to facilitate the integration of all ISA members onto the GeM platform, both as sellers and buyers," ISA said in a statement.
The main objective of this collaboration is to support Micro, Small, and Medium Enterprises (MSMEs) in supplying their products as well as make procurement through the online platform, ISA Secretary General Alok Sahay said. (PTI)
Carmakers Renault and Volvo and shipping group CMA CGM said on Friday they will jointly develop a new generation of electric vans, aiming to begin production in 2026.
Renault and Volvo signed binding agreements to launch a new company where they will initially each hold a 50% equity stake and invest 300 million euros over the next three years, they said in a statement.
CMA CGM signed a non-binding letter of intent with Renault and Volvo to join the new company and invest 120 million euros through PULSE, its Energy Fund dedicated to accelerating the decarbonization of transport and logistics sectors. There was no further detail on when this might happen or what stake it may take in the venture. (Reuters)
Reserve Bank Governor Shaktikanta Das on Friday said 87 per cent of the ₹2,000 denomination notes being withdrawn have returned as deposits into banks while the rest has been exchanged across counters.
Addressing a press conference after the announcement of the bi-monthly monetary policy review, Das said ₹12,000 crore of the ₹3.56 lakh crore worth of ₹2,000 notes in circulation as on May 19, 2023 are yet to come back.
Last on Saturday, the RBI had said that ₹3.42 lakh crore of notes had been received back as of September 29, and ₹14,000 crore was yet to come back. The central bank had also extended the deadline for return of the notes by a week.
Das said the RBI wants to "emphatically" focus on the 4 per cent headline inflation target, and till the price rise number does not get down, the monetary policy will be "actively disinflationary". (PTI)
Organic Recycling Systems IPO listing date: Organic Recycling Systems shares made a somewhat a decent debut on BSE SME today. On BSE SME, Organic Recycling Systems share price today was listed at ₹215 per share, 7.5% higher than the issue price of ₹200.
Organic Recycling Systems IPO listing date: Organic Recycling Systems shares made a somewhat a decent debut on BSE SME today. On BSE SME, Organic Recycling Systems share price today was listed at ₹215 per share, 7.5% higher than the issue price of ₹200. (Read More)
Sun Pharmaceutical Industries Ltd on Friday said the US health regulator has accepted the new drug application for deuruxolitinib, an investigational oral drug for the treatment of adults with moderate to severe alopecia areata.
In the new drug application, Sun Pharma has submitted the 8mg twice daily regimen of deuruxolitinib for US Food and Drug Administration (USFDA) review, the company said in a statement.
"We believe that deuruxolitinib has the potential to be an important new treatment option for people who continue to struggle every day with the chronic nature of alopecia areata," Sun Pharma CEO, North America Business, Abhay Gandhi, said. (PTI)
Oil prices were on track for their steepest weekly decline since March despite rising on Friday, driven by concerns that higher-for-longer interest rates will slow global growth and hammer fuel demand.
Both benchmarks had surged to 2023 highs last week, but Brent has dropped 11.6% and WTI by about 9% this week.
The oil slump has coincided with a steep drop in U.S. Treasury prices to 17-year lows, on concerns the U.S. Federal Reserve will keep rates higher for longer and growing worries about government spending and a ballooning budget deficit in the United States, the world's top oil consumer. (Reuters)
Colin Shah, MD, Kama Jewelry on the RBI monetary policy: RBI keeping policy rates intact is at par with the industry expectations. This pause amidst the onset of festive season will give a much-needed boost to consumer buying sentiment, thereby propelling demand. The expansion recorded in urban consumption will further foster velocity in jewellery sales in Indian markets. Additionally, increasing limit for gold loans from ₹2 Lakh to ₹4 Lakh in respect of urban cooperative banks will prove to be beneficial for buyers during the upcoming wedding season. The core inflation trajectory is projected to ease further during the year, resonating a gradual but steady rise in purchasing power of the masses. This sentiment towards the yellow metal will further will be guided by the inflation trajectory, system liquidity and movement in the economic activities in the West. Overall, we expect to witness a sustainable growth in exports as the journey to the targeted 4% inflation rate unfolds.
Air India on Friday said it has commissioned a mega warehouse facility in Delhi for storing over 1,000,000 engineering spares for aircraft maintenance.
Spread across 54,000 sq ft and located near Terminal 3, at Delhi Airport's cargo complex, the centralised warehousing facility will improve the turnaround time of flights operating out of Delhi, the company said.
The facility will offer a one-stop solution for storing aircraft spares, tools and ground support equipment ranging from hardware to sophisticated and complex avionics, hydraulics, structural, pneumatic, and mechanical components, it said. (PTI)
Nitin Bavisi, CFO, Ajmera Realty and Infra Ltd: Unchanged repo rate acts as a testament to the RBI's commitment to maintaining stability amidst economic growth. This continuity in monetary policy provides a steady backdrop for our industry. With core inflation in check and the cautious approach taken by the apex bank, we anticipate a promising festive season for the real estate market.
This favorable environment will stimulate demand, benefiting both homebuyers and developers across all segments. With rising per-capita income and the aspiration for upgraded living spaces, we are optimistic about a robust sales momentum in the coming months.
Shishir Baijal, Chairman & Managing Director, Knight Frank India: The decision will continue to maintain the existing momentum of residential real estate demand in India. Since the interest rate upcycle, the repo rate has been hiked by 250bps, resulting in 160bps rise in home loan rates. Since then, although the overall housing demand has remained upbeat, the lower housing segment or the affordable housing demand has witnessed a deceleration due to a substantial rise in the borrowing costs and other challenges. The stance today should be considered as a big relief for the housing sector of the country which has shown tremendous strength in the face of headwinds over the last year
India's Bharat Petroleum Corp has offered its first spot gasoil cargo, via a sales tender, in more than a year, three industry sources familiar with the matter said on Monday.
BPCL is seeking to sell at least 40,000 metric tons of 10ppm sulphur gasoil loading Oct. 26-27 from Kochi, according to a document seen by Reuters.
The tender closes on Oct. 3, with same-day validity.
The refiner had previously offered contractual 10ppm sulphur gasoil cargoes in April 2022, for delivery between July 2022 and January this year, Reuters records showed. (Reuters)
Vinod Nair, Head of Research at Geojit Financial Services: On a positive note, interest rates haven't increased as anticipated, however they are expected to remain elevated for an extended period. This will have an implication on rate-sensitive sectors like banking, auto, core industries, and heavy-weighted balance sheet companies. The elevated global bond yields and appreciation of the US dollar will affect the domestic economy and capital flows. However, it should not have a deep overhang effect on the economy but rather a mixed bias in the short term. The inclusion of government securities in the global bond index and moderation in inflation, like food & international commodity prices, will support INR and domestic corporate profit even in a volatile global currency market.
Himanshu Panchmatiya - Cofounder Switch My Loan: With no changes in Repo rate & CRR, we expect the lending portfolios to go this quarter as festive season is round the corner. Segments like Consumer Durable Loans, Car Loans, Personal Loans & fresh Home Loans is expected to do well in this quarter. We foresee the rates to remain unchanged for next quarter too seeing the Global economy market & elections in India. RBI may try to squeeze liquidity in other form and wouldn’t touch the CRR.
Niraj Kumar, Chief Investment Officer, Future Generali India Life Insurance Company Ltd: MPC has delivered an In-line and balanced policy, with the overarching focus being maintaining the stability in policy stance, despite being clouded by the chaos in global rates market and commodities. While the MPC’s mention of the need for OMO sales has slightly spooked the markets in the interim, it’s imperative from liquidity standpoint, especially with Global bond index inclusion on the horizon. Overall, the MPC has stuck to theme of continuity in the policy exercising caution and being data-dependent amid the looming uncertainty around global markets.
Shantanu Bhargava, Managing Director, Head of Discretionary Investment Services, Waterfield Advisors: The RBI had overlooked data in the early aftermath of COVID since the aim was to stimulate the economy & engineer a turn-around. Since changing its stance last year, the RBI has been data driven. According to the RBI's inflation prediction for Q3 & this FY, today's policy outcome is not surprising. We expect the RBI to retain the status quo unless we see a durable drop in inflation and if steady economic activity continues.
Piyush Baranwal, Sr. Fund Manager (Fixed Income), WhiteOak Capital Asset Management Ltd: Status quo in today’s policy indicates MPC’s comfort with moderating trajectory for CPI and RBI is now using tighter liquidity including through OMO sales to accelerate transmission of past policy measures to drive inflation towards its 4% target. As a side benefit, this should also help ward off pressure on the external front as global markets adjust to the ‘higher for longer’ rates and tighter financial conditions.
Ramesh Narasimhan, CEO, Worldline India: The announcement by the Reserve Bank of India to extend the Payments Infrastructure Development Fund (PIDF) scheme tenure by another two years is a welcome move. It shows the commitment and focus of the regulator to increase the reach and penetration of digital payments further. We look forward to working extensively on our part as a leading payments player to accelerate the deployment of digital payment acceptance modes in the targeted geographies.
Gold prices continued their upward trend for a second consecutive session in early morning trading on Friday. The futures contract for gold on the Multi Commodity Exchange (MCX), set to expire in December 2023, started the day on a positive note, opening at ₹56,735 per 10 grams. Within a few minutes of the opening bell, it reached an intraday high of ₹56,739 per 10 grams.
In the international market, the spot gold price exhibited a similar pattern, hovering around $1,823 per ounce. It briefly peaked at an intraday high of $1,824.58 per ounce. (Read More)
Valiant Laboratories IPO listing date: Valiant Laboratories share price listed on the bourses at a premium on Friday. On the NSE, Valiant Laboratories share price today was listed at ₹162.15 per share, 15.8% higher than the issue price of ₹140, and on the BSE, Valiant Laboratories share price was listed at ₹161 per share. (Read More)
GDP growth forecast for FY24 unchanged at 6.5%
RBI kept GDP growth forecast for FY24 unchanged at 6.5%.
- Q2FY24 GDP growth forecast unchanged at 6.5%
- Q3FY24 unchanged at 6.0%
- Q4FY24 GDP growth forecast unchanged at 5.7%
- CPI inflation forecast for April-June 2024, or Q1FY25 unchanged at 6.6%
RBI maintains status quo on the policy stance. It is retained at ‘Withdrawal Of Accommodation’ with 5 of 6 MPC members voting in favour of this, announced RBI Governor Shaktikanta Das.
Monetary policy focus remains to align inflation at 4% target, said RBI Governor Shaktikanta Das
The Reserve Bank of India (RBI) on October 6 maitained status quo on policy rates and stance of its monetary policy. The RBI kept the repo rate unchanged at 6.5%.
The Department of Telecommunications (DoT) has disposed Vodafone Idea’s representation with respect to licence fee demand totalling ₹3,273 crore, the company informed the exchanges.
Vodafone Idea said DoT has in a communication on October 4 disposed-off the company's representation and objections in respect of license fee demand of ₹1,749 crore and ₹1,524 crore, respectively (including interest till 31.03.2023) for FY2015-16 and FY2016-17. (Read More)
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: The important event of today, the MPC’s monetary policy, is unlikely to impact the markets since no changes are expected in policy rates or stance. From the market perspective, the more important thing will be the US jobs data expected tonight. If the jobs data comes strong the market will react negatively discounting a rate hike by the Fed in the coming policy meeting. On the other hand, if the jobs data is weak, the market will rally discounting a pause by the Fed.
Expected Q2 results will influence stock prices in the coming days. Financials, particularly banking, automobiles, hotels, real estate, cement and capital goods will do well. A possible surprise may come from IT in the form of higher order bookings. Even if the results are expectedly poor, the stocks may rebound on the back of better orders and commentary.
Budget carrier IndiGo on Thursday said it will introduce a fuel charge on domestic and international routes, starting October 6.
The charges will depend on the distance in respective sectors, the company said, adding that the move comes amid significant increase in jet fuel prices.
Aviation Turbine Fuel (ATF) prices have surged in the last three months with consecutive price hikes every month, the airline said.
ATF accounts for a substantial portion of an airline's operating expenses, necessitating fare adjustment to address such cost surge, IndiGo said. (PTI)
Exchange-traded funds that buy emerging-market equities are undergoing a churn — and the biggest loser is the BlackRock Inc. fund that helped usher in passive investing to the asset class two decades ago.
Investors have withdrawn $4.6 billion from the iShares MSCI Emerging Markets ETF since July — of which $1 billion, or 6% of its assets, fled in the past five days alone. Combined with an equity selloff during this period, the fund’s assets have shrunk to the least since March 2020. It’s now $17.7 billion fund compared with $53 billion a decade ago. (Read More)
The 5G network rollout in India has been remarkable and the country is among the top three nations with the largest 5G installed base in the world, a top Nokia official said on Thursday.
Nokia President and CEO Pekka Lundmark was addressing an event during the inauguration of the company's 6G research lab in Bengaluru.
"5G rollout in India is truly remarkable. This has been one of the fastest telecom network roll-outs ever and means India is now among the top three countries in the world that have the largest 5G installed base, with 5G download speeds beating those found in many advanced markets," Lundmark said. (PTI)
ExxonMobil Corporation, a prominent US natural gas company, is on the verge of finalizing a significant $60 billion agreement to acquire Pioneer Natural Resources Co, primarily focused on shale resources, according to a report from the Wall Street Journal. Upon the successful completion of this transaction, Exxon is poised to emerge as a leading producer in the United States' most prolific oil basin. As of the latest data, Pioneer was valued at approximately $50 billion in the market. This deal represents Exxon's most substantial acquisition since its merger with Mobil Corp. back in 1999. (Read More)
IndiGo, India's largest airline, is implementing a fuel surcharge ranging from ₹300 to ₹1,000 on airfares due to the substantial surge in jet fuel prices.
SoftBank plans to divest an additional 2.54% stake in PB Fintech, the parent company of Policybazaar, through a block deal, with an offer price range of ₹752 to ₹767 per share.
Valiant Laboratories is set to debut on the stock market, with analysts predicting a premium of 15-18% over the IPO price, attributing this optimism to strong subscription rates.
The petroleum ministry has increased LPG distributors' commission to ₹73.08 per cylinder, despite no revision in retail LPG prices.
Godrej Consumer Products reports mid-single-digit volume growth in the domestic market for Q3, including improved performance from acquired brands.
Asirvad Micro Finance, a subsidiary of Manappuram Finance, seeks to raise ₹1,500 crore through an IPO, with a fresh issue of equity shares.
Tata Steel's subsidiary, Tinplate Company of India, faces a tax penalty of about ₹40 lakhs, pending appeal.
Securities Appellate Tribunal overturns a Sebi penalty on Cairn India, a subsidiary of Vedanta, related to a buyback offer announcement.
Crisil upgrades Thomas Cook India's rating to AA-/Stable for the long-term and CRISIL A1 for the short-term, citing a post-pandemic revival and increased revenue.
The footwear industry is expected to grow moderately at 7-8% in the current fiscal year, down from 28% in FY23, due to factors like sluggish volume growth and stable average selling prices. (Read More)
Tata Technologies, a subsidiary of Tata Motors, has generated significant anticipation for its upcoming IPO and recently submitted an addendum to its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (SEBI). According to the addendum filed with SEBI, Tata Technologies intends to offer 9.57 crore shares in its planned IPO, each with a face value of ₹2 per share.
As part of the Tata Tech IPO, Tata Motors is planning to sell up to 8.11 crore shares through an offer for sale. Additionally, Alpha TC aims to sell up to 9.71 crore shares, while Tata Capital Growth Fund I will offer up to 48.58 lakh shares in this offering. This development marks a significant step in the lead-up to one of the highly-anticipated IPOs in the financial market. (Read More)
Godrej Consumer Products Ltd has recorded mid-single-digit volume growth for the July-September quarter in the domestic market despite weak macros and adverse weather conditions.
"Overall, Home Care volumes grew in mid-single digit while Personal Care grew in low-single digit," said Godrej Consumer Products Ltd in a quarterly update on Thursday.
The performance of Park Avenue and KamaSutra brands, which the Godrej Group FMCG arm acquired earlier this year from Raymond Group, has "improved sequentially and are on track to achieve full-year guidance", it added.
"In India, we witnessed weak macros and adverse weather conditions during the quarter. Despite the tough operating environment, our organic business delivered steady performance with mid-single digit volume growth," Godrej Consumer Products Ltd (GCPL) said. (PTI)
The Ministry of Petroleum has raised the commission for LPG distributors from ₹64.84 per cylinder, which was set in May last year, to ₹73.08 per cylinder. This change was communicated through a letter dated October 3, addressed to the oil marketing companies (OMC).
It's worth noting that this revision in the distribution commission will not lead to a corresponding adjustment in the retail prices of LPG.
It said the government approved the “revision of distributor’ commission to ₹73.08 per 14.2 kg cylinder (establishment charges: ₹39.65 and delivery charges: ₹33.43) and ₹36.54 per 5.0 kg cylinder (establishment charges: ₹19.82 and delivery charges: ₹16.72)". (Read More)
Vaishali Parekh, Vice President — Technical Research at Prabhudas Lilladher recommends:
1] McDowell-N or United Spirits: Buy at ₹1011, target ₹1060, stop loss ₹995;
2] IndiGo: Buy at ₹2473, target ₹2570, stop loss ₹2440; and
3] Bombay Dyeing: Buy at ₹143.75, target ₹152, stop loss ₹141. (Read More)
The initial public offering (IPO) of Valiant Laboratories Limited is scheduled to be listed on October 6, 2023, which is today. According to the BSE notice, starting from this date, the equity shares of Valiant Laboratories Limited will be listed and allowed for trading on the Exchange under the category of 'T' Group of Securities.
The listing of Valiant Laboratories shares will take place on both the BSE and NSE, and it will commence with a special pre-open session at approximately 9:45 AM. Investors will be able to begin trading Valiant Laboratories shares from 10:00 AM during today's trading session. It's important to note that the scrip will be in the Trade-for-Trade segment for the next 10 trading days. (Read More)
The Reserve Bank of India (RBI) is set to announce its fourth bi-monthly monetary policy today, October 6. The three-day meeting of RBI Governor Shaktikanta Das-led Monetary Policy Committee (MPC) began on Wednesday, October 4, and its outcome is due on Friday. The central bank is widely expected to keep the repo rate unchanged at 6.50% and maintain a hawkish pause. Economists also expect no change in stance, as RBI will keep liquidity tight. (Live Updates)
Wall Street drifted to a quiet close Thursday as pressure from the bond market remained high due to worries about a too-hot U.S. job market.
The S&P 500 slipped 5.56, or 0.1%, to 4,258.19, a day before a highly anticipated report on the job market that could sway the Federal Reserve’s view on interest rates. The Dow Jones Industrial Average edged down by 9.98 points, or less than 0.1%, to 33,119.57. The Nasdaq composite dipped 16.18, or 0.1%, to 13,219.83.
Stocks have struggled since the summer under the weight of soaring Treasury yields in the bond market, which undercut stock prices and crimp corporate profits. Yields have leaped as traders acquiesce to a new normal where the Federal Reserve is likely to keep its main interest rate at a high level for a long time, as it tries to extinguish high inflation.
Treasury yields wavered up and down Thursday after a report showed fewer U.S. workers applied for unemployment benefits last week than economists expected. That’s a sign fewer workers are getting laid off than expected, which is normally a good sign.
But the worry now is that too strong of a job market could put upward pressure on inflation. That’s why the Fed has raised its main interest rate to the highest level since 2001, to intentionally slow the job market. (AP)
