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PremiumShare Market Updates: Indian shares inched up to their highest close in more than one month on Friday, led by gains in Finance, Energy and Consumer Durable stocks, to extend a five-session winning streak and largely ignoring the softness in global equities.
Sensex is around 2% away from its record high and Nifty is 1% away from its all-time high. Meanwhile, Nifty Bank also is scaling up and is 3% shy of its all-time high.
S Ranganathan, Head of Research at LKP securities expressed his views on today's trading and said, "Benchmark Indices ended the week today just a few percentage away from record highs ahead of the G20 Summit buoyed by good support from the Bank Nifty ( on positive newsflow from the RBI) as well as the PSU & Infrastructure stocks. Despite a deficient monsoon the mood in the market was optimistic as PSU stocks across sectors exhibited positive investor appetite."
Asia's stock markets dipped on Friday after an overnight drop in technology stocks in the United States over deepening Sino-U.S. tensions.
Indian shares inched up to their highest in more than one month on Friday, led by gains in Finance, Realty and Energy stocks, to extend a five-session winning streak and largely ignoring the softness in global equities.
The Nifty 50 index climbed 92 pts to end at 19,819, while the S&P BSE Sensex rose 333 pts to close at 66,598. Both indices gained around 1.5% this week. The indices have recovered nearly 3% from the near two-month lows hit late August and are around 1% to 2%, respectively, away from their all-time highs.
NPTC and Coal India topped the stock charts as they climbed around 3% each. Tata Motors and L&T were other prominent gainers. Apollo Hospitals, Eicher Motors, Wipro and UPL dragged in today's session.
Among sectoral indices. Finance, Energy and Realty were the major contributors to the rally. Bank and Auto also ended with decent gains. IT, Pharma and FMCG ended in the red with marginal losses.
Shares fell Friday in Europe and Asia after Japan reported its economy grew less than earlier estimated in the last quarter.
Japan's Nikkei share average fell more than 1% on Friday, sending it to a first weekly loss in three, as the benchmark tracked Wall Street losses amid worries about tighter U.S. Federal Reserve policy and a Chinese iPhone ban. The Nikkei slid 1.16% and for the week, the benchmark index slipped 0.32%.
China stocks closed down on Friday, as investor optimism toward the world's second-largest economy waned after the authorities' stimulus policy, while a weakening yuan pressured the stock market further. Meanwhile, Hong Kong Exchanges and Clearing Ltd said trading in both the securities and derivatives markets on Friday was cancelled due to a black rainstorm warning.
China's blue-chip CSI 300 Index closed down 0.5%, while the Shanghai Composite Index edged 0.2% lower. For the week, the CSI 300 Index lost 1.4% and the Hang Seng Index slipped 1%.
European equities edged higher on Friday, poised to end their longest losing streak since February 2018, as travel and consumer stocks led a modest recovery and the technology sector rebounded.
UK's main stock indexes rose on Friday as easing US bond yields and crude prices offered investors some relief at the end of a rough week for global markets.
U.S. chipmaker Nvidia and oil-to-telecoms conglomerate Reliance Industries on Friday said they are working together to create artificial intelligence-based applications for India. (Reuters)
Saish Sandeep Sawant Dessai, Research Associate: Base Metals, Angel One Ltd: Copper prices continue to extend weakness, as prices plunged to their lowest point in over two weeks as several factors converged to weigh on the market. A notable surge in copper inventories, soaring by 21% to 133,850 metric tons and reaching levels not seen since October, was a stark reminder of the supply-demand dynamics. Additionally, the robust U.S. dollar, bolstered by strong economic data and lower jobless claims, exerted downward pressure on copper and is expected to persist throughout the year.
China, the world's largest copper consumer, experienced a 5% drop in copper imports in August compared to the previous year, reflective of weak demand amid a challenging economic environment.
Rising domestic copper production also contributed to reduced reliance on imported copper. Despite the import decline, domestic copper output surged by 15.5% year-on-year in August, reaching a record 989,000 tons, driven by strong demand for raw materials like copper ore and concentrate, which hit a record high.
Overall, China's unwrought copper and copper products imports have decreased by 10% in the first eight months of 2023 compared to the previous year, underscoring the ongoing challenges in the copper market.
Sensex, FTSE rejig is taking place on 15th September and this is expected to fuel some inflows in Nifty index shares like HDFC Bank, Axis Bank, State Bank of India (SBI) and Tata Motors. This may help Nifty to climb a new peak as Nifty heavy weight HDFC Bank shares are expected to witness inflows to the tune of $600 million after this Sensex, FTSE rejig taking place on 15th September next week. (Read More)
Crude oil futures on Friday declined 0.24 per cent to ₹7,210 per barrel as participants trimmed their positions on low demand.
On the Multi Commodity Exchange, crude oil for September delivery fell ₹17 or 0.24 per cent to ₹7,210 per barrel with a business volume of 7,855 lots. (PTI)
The Reserve Bank of India will discontinued maintenance of additional cash reserves for banks in a phased manner by Oct. 7, it said on Friday. (Reuters)
Packaged goods company Tata Consumer Products Ltd. (TCPL) has taken its Soulfull brand of millet-based cereals overseas through a tie-up with British retail chain Tesco. Soulfull will sell cereals under the Joyfull muesli brand in the UK, where TCPL already has a significant presence through its brands - Tetley tea, Good Earth UK, and Teapigs.
In 2021, TCPL, the consumer products arm of the Tata Group, announced a 100% acquisition of Kottaram Agro Foods, owner of Soulfull, in line with strategy to enter new, adjacent categories in the packaged foods segment.(Read More)
GRM Overseas shares have experienced a notable uptrend over the past four trading sessions. Starting the week at ₹179.05 per share on Monday, the small-cap stock has seen a remarkable surge, reaching ₹231.35 per share on the BSE. This represents a substantial increase of approximately 30% over the course of these four days.
During today's early morning trading, GRM Overseas share price opened on a positive note and quickly reached an intraday high of ₹231.35 per share. This sharp increase amounted to an intraday gain of around 4% within just a few minutes of the stock market's opening bell. (Read More)
After every major dip, domestic silver prices have been seeing a range shift on the higher side. Domestic brokerage firm Motilal Oswal Financial Services expects this trend and the momentum in silver to continue, which could add another 15% over the next few quarters. (Read More)
Colin Shah, MD, Kama Jewelry expectations from the upcoming Sovereign Gold Bond Tranche 2: We anticipate immense potential benefits from the upcoming Sovereign Gold Bond Tranche in FY24, offering a secure avenue for investors seeking exposure to gold. The first series was issued on June 19 at ₹5,926 per gram. We expect the second issue, 2023-24 Series II, which will be issued between September 11 and 15, 2023 to be issued at a slightly lower rate. Gold is expected to outperform most asset classes due to the anticipated slowdown in China, and other major economies including the US. This will drive high alpha-seeking investors to alternative investments and safer avenues like gold. According to various analyst estimates Gold is expected to rise by more than 10% GAGR up to the year 2026. Considering these factors, we expect the 2023-24 Series II gold bonds to deliver substantially above-average returns of more than 20% in the long term."
To bolster transparency in the drug regulatory system, the union health ministry has directed all state drug controllers to profile pharmaceutical companies within their jurisdiction.
Around 10,500 entities are currently producing varied dosage forms and active pharmaceutical ingredients (APIs) in the country.
The objective is to ascertain the types of drug formulations being manufactured, imported, and exported, giving the central government a clear picture of the industry's landscape. (Read More)
YES SECURITIES on ICRA:
Recommendations:BUY
CMP: ₹5,709
Target Price: ₹6,700
Potential Return: +17.5%
Ratings on firm wicket, Analytics may see choppiness
Based on our management interaction, we believe that ICRA’s soft performance of Q1 FY24 is not reflective of its likely full-year performance. Over next two years, we see sustained strong growth in ratings, healthy albeit moderated growth in Analytics and reasonable margin expansion. At consolidated level, we estimate 14%/17%/18% CAGR in Revenue/EBITDA/PAT over FY23-25 and RoE expansion of 2 ppt despite significant accretion of BS liquidity. Our estimates do not factor revenues from ESG offerings and any acquisitions which co. has been evaluating in non-ratings segment. Stock trades at 32x 1-yr roll. fwd. P/E and it has traded at higher multiples in preceding rating cycle. We continue to prefer ICRA over CRISIL. Retain BUY with upgraded TP of Rs6,700.
The valuations of the Indian stock market are currently higher than they usually are in the long run. This means there might be a correction soon. If you're thinking about investing in stocks in the short term, it's a good idea to lower your expectations. However, if you're planning to invest for the long term, sticking with your regular investments (SIPs) is still a good choice, said Ajay Tyagi, the head of equity and fund manager at UTI AMC. In an interview with Mint, Tyagi talked about which sectors can perform better going ahead and what is the road ahead for mid and small-caps. (Read More)
The Centre on Friday said the third phase of the mandatory hallmarking vide Hallmarking of Gold Jewellery and Gold Artefacts (Amendment) Order, 2022 will come into force from today.
As per the official statement from the Ministry of Consumer Affairs, the third phase of the mandatory hallmarking will cover an additional 55 new districts under the mandatory hallmarking system, wherein a hallmarking centre has been set post post-implementation of the second phase of the mandatory hallmarking order thereby making the total number of districts covered under mandatory hallmarking as 343.
The state-wise list of newly added 55 districts under the mandatory hallmarking is available on the website of the Bureau of Indian Standards (BIS) under the hallmarking section. (ANI)
Jupiter Life Line Hospitals IPO Subscription Status: Jupiter Lifeline Hospitals IPO has received strong response from all categories of investors so far. The IPO, which opened on September 6, closes today, September 8.
Given that today is the last day for Jupiter Lifeline Hospitals IPO Subscription, the basis of allotment is expected to be fixed on September 13 and initiation of refunds may take place on September 14, while credit of shares will be done on September 15.
Jupiter Lifeline Hospitals shares are likely to be listed on September 18, on BSE and NSE. (Read More)
Satish KUMAR and Abbas PUNJANI on Steel sector: Use all rallies to sell; retain Underweight
■ Coking coal prices have tailwinds of lower production growth. After remaining range-bound so far in FY24, they are likely to rise again in FY25F.
■ Europe’s EAF steel production growth is benefiting HEG. Scrap prices are unlikely to rise as Europe’s production will increase & Chinese imports will fall.
■ Steel companies’ margin to fall because of cheap Chinese steel imports. In Europe, rise in EAF steel output & carbon tax will make blast furnaces unviable.
Larsen & Toubro (L&T) witnessed a significant surge in its share price, climbing by nearly 3% to reach a new 52-week high of ₹2,927.95 during the morning trading session on the BSE on Friday. The stock began the trading day at ₹2,885.05, surpassing its previous closing price of ₹2,847.05, and saw a 2.8% increase, reaching this one-year high.
As a result of this upswing, the market capitalization of the company's stock exceeded the ₹4 lakh crore mark on the BSE.
This increase in the stock's value can be attributed to news reports indicating that India's largest capital goods company had secured a multi-billion-dollar contract from Saudi Aramco, which generated substantial investor interest and confidence in the company's prospects. (Read More)
Cellecor Gadgets Limited is gearing up for its initial public offering (IPO), which is scheduled to launch in the primary markets next week. The SME company has disclosed a price range of ₹87 to ₹92 per equity share for its book build issue. According to the Red Herring Prospectus (RHP) associated with the public offering, Cellecor Gadgets Limited intends to list on the NSE SME exchange and aims to raise ₹50.77 crore through its initial offer.
In the run-up to the announcement of the Cellecor IPO's price range, the company's shares have made their debut in the grey market. Market observers report that Cellecor Gadgets Limited's shares are trading at a premium of ₹20 in the grey market today. This suggests strong early interest and demand for the company's shares ahead of its official IPO launch. (Read More)
Himanshu Singh - Research Analyst, Prabhudas Lilladher Pvt Ltd on Exide Industries (EXID IN) - Rating: ACCUMULATE | CMP: Rs274 | TP: Rs295
Company Update - On path to strong revenue and margin growth
Quick Pointers:
§ Strong demand across divisions to continue in medium term
§ Lithium ion investment to come on-board by FY25-end
EXIDE industries’ (EXID) core segment has seen strong growth over the last two years due to pent up demand, and we expect it to grow at c9% CAGR over FY23-26E (ex li-ion battery revenue) with growth to pick-up from 2HFY24. Battery space is undergoing huge technological shift and EXID is investing Rs. 60bn in phased manner in 12GWh lithium ion cell plant to leverage future demand from electric vehicles (EV) segment. However, rapid shift in technology & increased competition will require agility with high investments.
We believe that EXID is well placed to benefit for medium term given its aggressive product and network expansion strategy along with investment in new technologies and strong traction in the industrial segment. Automotive segment is expected to continue with its recovery led by 1) leadership position in growing OEM & after market segment, 2) launch of new & advanced products for new applications and 3) expansion of network in Indian after-market and export markets. Industrial segment is expected to benefit from 1) pick-up in demand led by government and private capex, 2) increased investment in renewable power, 3) good traction in projects vertical like railways, telecom, infrastructure, etc. and grow faster than the automotive segment. We resume coverage with an “Accumulate" rating and SoTP of Rs.295 at 15x Sep-2025 EPS (currently trading at c21x PE on FY24E EPS).
Multiplex chain PVR Inox has launched its second standalone IMAX theatre in Delhi’s Paras Cinema at Nehru Place. This launch marks the opening of the fifth IMAX in Delhi and the second standalone IMAX theatre in India.
With this opening, the new cinema will take PVR INOX’s foothold in New Delhi to a total of 27 cinemas across 108 screens and its presence in North India to a total of 457 screens in 103 properties. (Read More)
Defense stocks have garnered significant attention over the past few years, particularly in the wake of the Russia-Ukraine conflict. Both domestic institutional investors (DIIs) and foreign institutional investors (FIIs) have demonstrated an increased interest in acquiring stakes in defense-related companies. However, during the first quarter of the current financial year (April to June 2023), FIIs substantially increased their investments in a number of defense stocks.
Here are the top five defense stocks in which FIIs raised their stakes during the April to June 2023 quarter: (Read More)
Cochin Shipyard's share price witnessed a remarkable surge of nearly 10% during morning trading on Friday, reaching a new all-time high of ₹1,258 on the BSE. The stock commenced the trading session at ₹1,195, surpassing its previous closing price of ₹1,146.15, and surged by 9.8% to attain this fresh peak.
Over the past year, the stock has delivered a stunning performance, recording a remarkable 212% increase, while the benchmark equity index, Sensex, managed a comparatively modest gain of only 11% during the same period. In the current calendar year, Cochin Shipyard's stock has witnessed a substantial rise of 135%.
It is worth noting that despite these impressive gains, brokerage firm Kotak Institutional Equities has downgraded the stock from a 'buy' to a 'sell,' albeit with a revised target price of ₹990, up from the previous target of ₹740. The downgrade reflects the belief that the current market price of the stock already incorporates most of the significant positive factors. (Read More)
Cheap internet, competitive telecom market, helped India to grow its mobile subscription by 7 million in the June quarter. With this, it emerged as the highest contributor of mobile subscribers in the world, says Ericsson report.
India was followed by China and the US, said report. According to the report, the number of mobile subscription added on to a total of 8.3 billion. The net addition during the quarter stoodd at 40 million subscription.
"India accounted for the most net additions during the quarter ( 7 million), followed by China ( 5 million) and the US ( 3 million)," the report said. (Read More)
Landmark Cars saw a substantial surge in its share price, surging by nearly 8% during early trade on Friday, following the company's announcement of a dealership agreement with Mahindra and Mahindra (M&M). Shares of Landmark Cars soared by as much as 7.94%, reaching ₹782.75 per share on the BSE.
In a filing made to the exchange on Thursday, Landmark Cars disclosed that it had executed a Letter of Intent with M&M for the establishment of a dealership in Howrah, located in the state of West Bengal. This dealership will be established within one of the wholly-owned subsidiaries of Landmark Cars, namely Landmark Mobility Private Limited. (Read More)
In August, inflation in India appears to have moderated somewhat, but it continued to surpass the upper limit of the Reserve Bank of India's (RBI) targeted range of 2% to 6% for the second consecutive month, according to a Reuters survey conducted between September 4th and 7th, involving 45 economists.
The poll's findings indicate that the consumer price index likely increased by 7.00% in August when compared to the same period last year, representing a slight decrease from the 7.44% recorded in July. Projections varied between 6.50% and 7.65%, with nearly two-thirds of respondents anticipating that inflation would remain at 7.00% or higher. (Read More)
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: Sustained DII investment supported by strong retail buying is driving the market higher in spite of FII selling. In September, so far, FIIs have sold in the cash market for ₹8608 crores and DIIs have bought for ₹5715 crores. In spite of this net institutional selling Nifty is up by 434 points for the month so far. This, and the hyperactivity in the mid-and small-cap segments, point to the active participation of retail investors in the rally. Also, the ‘buy on dips’ strategy is working well for traders. This market construct has the potential to take the rally to near the Nifty record high of 19991. Frontline banking and IT stocks assisted by L&T and RIL have the potential to sustain the rally in the near-term. Bubble building up in segments of small-caps is an area of concern."
Deven Mehata, Equity Research Analyst, Choice Broking: On September 8th, the anticipated market scenario suggests a slightly upbeat opening for both the benchmark Sensex and Nifty indices. The GIFT Nifty's indications point to a positive start for the broader index, with an expected gain of 24 points. On the previous trading day, the BSE Sensex made an impressive leap of 385 points, reaching a level of 66,266. Similarly, the Nifty50 showed strength by rising 116 points to settle at 19,727. Notably, the daily charts depict the formation of a robust, long bullish candlestick pattern, and this achievement is underscored by the index's ability to firmly maintain its position above the previously declining resistance trend line.
This development carries significant weight as it signifies a pivotal milestone. For the first time in three weeks, the Nifty has successfully reclaimed this crucial level. Additionally, the Relative Strength Index (RSI) has shown a positive crossover, currently registering at 63, which emphasizes a moderately bullish sentiment prevailing in the market.
The Indian rupee opened 7 paise higher against the US dollar on Friday led by a softer dollar amid a pullback in US treasury yields. The local currency opened at 83.14 a dollar as compared to previous close of 83.21.
The dollar index retreated in the Asia session to 104.86, having reached a six-month high of 105.15 in the New York session. The 10-year U.S. yield was down about eight basis points from Thursday's high of near 4.30%, Reuters reported.
Amid the ongoing tussle between the auto industry workers' union and General Motors on wage revision for past four years, GM's wage hike proposal drew flak from United Auto Workers President Shawn Fain who called the offer ‘insulting’.
In a bid to avoid a costly strike a which is inching closer to is deadline, GM offered workers a 10% wage hike and two additional 3% annual lump sum payments over four years in its offer to the union ahead of the Sept. 14 contract expiration. GM shares closed down 0.8% to $32.57. (Read More)
State-owned Oil and Natural Gas Corporation (ONGC) is set to make a substantial investment of ₹15,000 crore in ONGC Petro-additions Ltd (OPaL) as part of a comprehensive financial restructuring effort. This move is expected to result in gas utility GAIL losing its stake in the petrochemical firm, as reported by the news agency PTI.
Presently, ONGC holds a 49.36 percent stake in OPaL, which is responsible for operating a major petrochemical plant located in Dahej, Gujarat. GAIL (India) Ltd currently possesses a 49.21 percent interest in OPaL, while Gujarat State Petrochemical Corp (GSPC) holds the remaining 1.43 percent, according to the report. (Read More)
Goldman Sachs Group Inc. is planning to perform another round of job cuts to dismiss its underperformers as soon as next month as part of its annual evaluation of staff, reported Financial Times.
The fresh round of job cuts will be made as part of the Wall Street firm's annual evaluation of staff, according to FT report. This year's reduction will be performed at the lower end of the bank's usual range of 1% to 5% of its workforce, reported the newspaper citing sources. (Read More)
Viacom18, controlled by Reliance Industries Ltd, has picked up the exclusive media rights for televising and live-streaming Indian Super League (ISL) football matches for the next two seasons.
The 10th season of the ISL is set to start on 21 September with a match between Kerala Blasters FC and Bengaluru FC in Kochi.
For the first time, India’s premier football league will be aired by Viacom18, replacing Disney Star, which had been the official broadcaster for the last nine seasons. (Read More)
SAIL, PNB, Manappuram Finance, BHEL, India Cements, Delta Corp, Hindustan Copper, Balrampur Chini Mills, and Indiabulls Housing Finance are the nine stocks that are a part of the F&O ban list by the stock exchange for Friday. (Read More)
Exide Industries Ltd announced on Thursday that it has injected a sum exceeding ₹100 crore into its wholly-owned subsidiary, Exide Energy Solutions Ltd. This subsidiary is engaged in the production of advanced chemistry battery cells.
According to the regulatory filing, Exide Industries made this investment by subscribing to equity shares in Exide Energy Solutions Ltd (EESL) through rights allocation. Importantly, this investment has not resulted in any alteration in the ownership percentage of Exide Industries in EESL. (Read More)
Both Norway's government pension fund manager and an Indian portfolio management service (PMS) are poised to oppose the proposal for the delisting of ICICI Securities, amidst a growing chorus of discontent among investors who perceive the stock as ripe for a potential revaluation, reports MoneyControl.
This news triggered a notable surge in ICICI Securities' shares, propelling them upward by over 5 percent. The stock reached an intraday peak of ₹652 before moderating its gains and ultimately closing at ₹635, representing a 2.4 percent increase from the previous day's closing price.
Notably, Norway's Norges Bank Investment Management's Government Pension Fund Global holds a 3.13 percent stake in ICICI Securities. Similarly, a portfolio management service based in southern India, which also maintains approximately a 3 percent ownership stake in the company, aligns itself against the proposed delisting.
Sebi on Thursday disposed of adjudication proceedings against state-owned LIC with respect to alleged violations of mutual fund norms.
The case pertained to the insurer's shareholding in IDBI Mutual Fund.
In a 12-page order, Sebi said the alleged violation on part of LIC is to be viewed in the context of the efforts taken by it to complete the merger of IDBI Mutual Fund with LIC Mutual Fund, and disposed of the adjudication proceedings.
The regulator had conducted an examination in the matter of alleged non-compliance of MF (Mutual Fund) regulations by LIC with a focus to ascertain if there was any violation of the rules. (PTI)
On Thursday, SBI Funds Management Ltd, the country's largest asset management company, acquired approximately 8% of the stake in Nazara Technologies Ltd, an online gaming firm, for a total of ₹410 crore. This development comes on the heels of a surprise investment of ₹100 crore made by Nikhil and Nithin Kamath, the founders of India's largest brokerage, Zerodha Broking Ltd, on September 4th.
Nazara Technologies Ltd, which has experienced an impressive surge in its stock performance this year, witnessing a gain of over 39% in the last three months alone, has announced its intention to issue 5.74 million new shares on a preferential basis to three mutual fund schemes operated by SBI Mutual Fund. These new shares will be issued at a price of ₹714 apiece. (Read More)
Wall Street slipped in mixed trading Thursday as the threat of high interest rates continues to dog Big Tech stocks.
The S&P 500 fell 14.34, or 0.3%, to 4,451.14 for its third straight loss. The Nasdaq composite was hit particularly hard by the drop for tech stocks, and it sank 123.64, or 0.9%, to 13,748.83.
The Dow Jones Industrial Average held up better than the rest of the market because it has less of an emphasis on tech, and it rose 57.54 points, or 0.2%, to 34,500.73.
Stocks felt pressure from the bond market, where yields rose earlier in the week after a report showed stronger growth for U.S. services industries last month than economists expected. Yields remained high after a report on Thursday said fewer U.S. workers applied for unemployment benefits last week than expected.
While such reports are encouraging for the economy, indicating a long-predicted recession is not near, they could also keep conditions humming strongly enough to push upward on inflation.
The Federal Reserve has already hiked its main interest rate to the highest level in more than two decades in hopes of slowing the economy enough to drive inflation back down to its 2% target. It’s come close, and inflation has cooled from its peak above 9% last summer. But the worry is that the last percentage point of improvement may be the toughest for the Fed. (AP)
