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PremiumIndia's benchmark indices ended trade on Wednesday over 0.9% down. The bourses opened on a tepid note on Wednesday, but crossed into positive territory as the day progressed. But they plummeted back into red and continued the slide to close the day in the negative. All sectors, led by IT, metal, pharmaceutical and financial stocks, slipped into the red after opening gains and pulled the market down.
"After making a high of 17,884 , Nifty closed negative at 17,646 down by 176 points. Such movements around the all time high is not a good sign for traders in long positions. If nifty is not able to close above 17,950 levels in the next few trading sessions , it may correct to its support range of 17,480-17,520. Traders in long positions need to keep strict stop loss and may consider booking profits. New long positions can be initiated once Nifty closes above 17,950 with high volumes for 18,040 and 18,080 as targets."
The rupee tumbled 54 paise to close at 74.98 (provisional) against the US dollar on Wednesday as a stronger greenback against key rivals and rising crude oil prices weighed on investor sentiment. At the interbank foreign exchange market, the local currency opened at 74.63 and witnessed an intra-day high of 74.54 and a low of 74.99 against the US dollar in day trade. The local unit finally settled at 74.98 a dollar, down 54 paise over its previous close. On Tuesday, the rupee had settled at 74.44 against the US dollar.
"The Index was unable to sustain at higher levels and nosedived thereafter. Strong support for this market lies between 17,400 and 17,500. This level was respected the last time too. If we are unable to repeat this, we could plummet further to 17,200. On the upside, unless we do not get past 17,950, the uptrend will not resume and if we conquer it, 18200 can be the next achievable target."
Sensex closed at 59,189.73, down 555.15 points, or 0.93%, on Wednesday; Nifty closed at 17,646.00, down 176.30 points, or 0.99%. HDFC twins and Bajaj Finance were the only gainers, while the rest of the stocks were in red. IndusInd Bank, Tata Steel and Bajaj Auto were the top losers.
Reserve Bank's rate-setting panel started its three-day deliberations on the next bi-monthly monetary policy on Wednesday amid rising global commodity prices and the need to contain inflation at home. (Read here)
Asian equities have seen heavy foreign outflows since the start of this month on concerns about China's property sector and on expectations that major central banks would raise interest rates soon amid concerns about rising inflationary pressures. Foreigners have sold a combined net total of $3.35 billion in Asian equities this month as of 5 October, data from stock exchanges in India, South Koreaw, Thailand, Indonesia, Taiwan, Philippines and Vietnam showed. Last month, cross-border investors purchased Asian equities worth a net $2.9 billion, the biggest inflow in 2020, the data showed. (Reuters)
Zee Entertainment Enterprises Ltd has approached the National Company Law Appellate tribunal against the National Company Law Tribunal's order in the Invesco case.
Technology, travel and retail shares fuelled declines in European stocks on Wednesday as soaring oil and gas prices intensified concerns about higher inflation denting economic growth. After a late-session rally on Tuesday, the pan-European STOXX 600 index fell 1.7%, with travel & leisure and tech stocks tumbling more than 2%. Banks slipped 0.6%, but were the smallest decliners on prospects of higher interest rates as U.S. and European government bond yields climbed and oil prices hit multi-year highs. Dutch and British wholesale gas prices surged to record highs on Tuesday amid wider energy market price hikes.
Emerging market currencies sank to six-week lows on Wednesday as a spike in oil prices spurred concerns over high inflation and drove investors out of risk-driven assets. MSCI's index of emerging market stocks fell 0.6%, while the currencies benchmark dipped 0.2%, as investors feared high commodity prices would further pressure economies already struggling with elevated inflation. South Africa's rand dropped more than 1% and was the worst performer among currencies in Europe, the Middle East, and Africa (EMEA). (Reuters)
French logistics firm Geodis has taken 300,000 sq. ft of warehousing space on lease in LOGOS Logistics Estate in Luhari, Haryana, for a 10-year lease period, to address the growing demand from its customers in the e-commerce and retail sector. (Read here)
Tata steel has reported 12% quarter-on-quarter growth in deliveries despite it being a seasonally weaker quarter.
BharatPe on Wednesday entered the buy now pay later (BNPL) category with the launch of its product postpe. The fintech company said postpe provides credit to customers to buy now and pay later, for anything, and from anywhere. Customers can download the postpe app and avail interest-free credit limit of up to ₹10 lakh. It said that postpe is not limited to big-ticket purchases but can also be used for micro-purchases. BharatPe aims to facilitate a loan book of $ 300 million on postpe in the first 12 months, for its lending partners. (Livemint)
CoinSwitch Kuber has become India's second crypto unicorn, having raised over $260 million in Series C funding round, led by American venture capital firm a16z (Andreesen Horowitz) and Coinbase Ventures, at a valuation of $1.9 billion. (Read here)
Equitas Small Finance Bank has announced the launch of its Applications Supported by Blocked Amount (ASBA) facility on its interfaces. It allows users to apply for IPO and FPOs
Foodtech major Swiggy has announced its two-year employee stock ownership plan (ESOP) liquidity programme for employees worth $30 million to $40 million, based on its current valuation of $5.5 billion, as it looks to help its staff create wealth. It has set the timeline for the liquidity events as July 2022 and July 2023 respectively, with all employees holding options eligible for participation. This will mark the third and fourth ESOP liquidity event for Swiggy, which had previously announced employee share buybacks in June 2018 and November 2020 respectively.
Tata Power, India’s largest integrated power utility, has signed a three-year commercial agreement with BluWave-ai, the world’s first renewable energy artificial intelligence (AI) company. This agreement comes at the conclusion of a successful trial project during which Tata Power evaluated the performance of the BluWave-ai cloud platform to generate intra-day and day-ahead dispatches for use in its power scheduling operations.
A market-based measure of expected inflation in the U.K. over the next decade rose to 4%, twice the Bank of England’s annual target. The so-called 10-year breakeven rate climbed 5 basis points to 4.03%, the highest since 2008. The move was spurred by a spike in energy costs that threatens to fuel higher consumer prices. Inflation in the U.K. accelerated to the strongest pace in more than nine years at 3.2% in August, with the BOE raising the prospect of hiking interest rates as soon as November to contain the surge in its latest meeting. (Bloomberg)
Nippon Life trustee has sold 1.2 million shares, or 1% stake in Garden Reach Shipbuilders and Engineers Ltd on 4 October, according to a report.
The report said revenue for YES Securities' coverage universe is to grow 24% y-o-y helped by strong traction in platform companies, IT, oil and gas (ex-OMC), cement and building material sectors. It added that earnings for the coverage universe will likely grow 19% largely on the back of robust topline. Revenue growth (ex-financials & OMCs) is largely driving earnings, though the expansion in operational margins seems to be tapering on account of a surge in input costs. An exponential rise in input costs will negate the benefits of better economies of scale, the report said and added that the coverage universe is likely to witness an erosion of 100bps y-o-y basis in OPM. Though the OPM reading of 20.5% y-o-y is still deemed to be very healthy when compared with pre-covid profitability and the prevalent inflationary backdrop.
Markets regulator the Securities and Exchange Board of India (Sebi) is considering to allow options on commodities index, according to MCX.
The Rourkela Steel Plant, a unit of SAIL, has said it registered the “best-ever" production performance for the April-September period in the three key segments of hot metal, crude steel and saleable steel. During the reporting period, the plant produced 2,101,278 tonnes of hot metal, 1,953,438 tonnes of crude steel and 1,772,875 tonnes of saleable steel, it said in a release. The figures “are not only the highest for any half year (H1), but also a significant improvement of 42.9%, 38% and 37.8%, respectively, over H1 of last fiscal," the company said. (PTI)
Pharma, metal and IT were in red.
12 stocks were in green and 18 in red.
Several users were reporting issues with Jio mobile network in India, according to a report from India Today. The report said Downdetector was also showing a spike in user complaints related to the network. There was no word whether the network issue has impacted users in one region or is a bigger issue for Jio subscribers across India.
India’s coal fuelled power projects had around four days worth of stock as on 3 October, according to union power ministry. (Read here)
Global IT services, consulting and business solutions organization Tata Consultancy Services, has announced that its long-standing partnership with State Bank of India (SBI), India’s largest bank, has been extended for another five years as the bank embarks on its next leg of growth based on the three pillars of technology, resilience and people. As part of the new contract, TCS will continue to maintain and enhance SBI’s application estate around core banking, trade finance, financial reporting, and financial inclusion with new features and functionality. This will support the bank’s ability to launch newer offerings and respond to business and regulatory changes, TCS said in a filing.
Japan's benchmark 10-year government bond yields rose to a four-month high on Wednesday, tracking gains in U.S. Treasury yields, amid the absence of a domestic market-moving catalyst. The 10-year JGB yield rose two basis points to 0.080%, its highest since June 8, while 10-year JGB futures fell 0.19 points to 151.32, with a trading volume of 24,213 lots. U.S. Treasury yields rose overnight, as worries about the debt ceiling prompted investors to move away from the shortest end of the curve, while inflation concerns weighed on longer-dated debt.
The government is likely to set up a task force to tackle the shortage of semiconductors affecting different industries such as automobile, CNBC Awaaz has reported. The task force will also suggest incentives to be given for companies to set up semiconductor plants in India, the report added.
LIC has increased its stake in Cadila Health to 5.68% in September quarter from 3.63% in June quarter, according to a report.
DFDS A/S, Northern Europe’s largest shipping and logistics company, is buying 100 electric heavy trucks from Volvo Group as pollution and noise restrictions overhaul the transport sector. The second-biggest truckmaker will start deliveries of the vehicles, capable of driving 300 kilometers (186 miles) on a single charge, during the fourth quarter of next year, Volvo said Wednesday. The deal is the largest commercial order of electric trucks for the company so far. (Bloomberg)
The BSE has sought clarification from Bella Casa Fashion & Retail Ltd on 6 October with reference to significant movement in price, according to a corporate notification on the site. The move, it said was made in order to ensure that investors have latest relevant information about the company and to inform the market so that the interest of the investors is safeguarded. “The reply is awaited," the notification added.
7-Eleven Inc., the world’s largest convenience store chain, remains confident about the prospects of the Indian market and hopes to make a market entry in the “near future", it said in a statement after calling off its agreement with home-grown Future Retail. (Read here)
Gold prices today fell for second day in India with analysts attributing the correction to profit-taking in global markets. On MCX, gold rates were down 0.35% to ₹46,600 per 10 gram while silver futures declined 0.6% to ₹60,623 per kg. (Read here)
Nine stocks in green, 21 in red
Freight rates to ship liquefied natural gas (LNG) rose to multi-month highs this week as a surge in demand for the super-chlled fuel has increased the need for vessels to move supplies, multiple trade and shipping sources said. The daily charter rate for a tri-fuel diesel-electric (TFDE) vessel that can carry 160,000 cubic metres of LNG to Pacific basin ports rose to $76,000 a day on Tuesday, the highest since February, according to data from Spark Commodities. For the same type of ship moving in the Atlantic Basin, the rate rose to $67,750 a day, the highest since August, Spark data showed. (Reuters)
India is considering a proposal for foreign investors to own as much as 20% in Life Insurance Corporation, according to a person with knowledge of the matter, which would enable them to participate in the nation’s biggest initial public offering. Under discussion is a plan to amend FDI rules so that investors can pick up the stake without the government’s approval under the so-called automatic route, the person said, asking not to be identified as the deliberations are private. Government officials are due to meet and discuss the proposal as early as Wednesday afternoon in New Delhi, the person said. (Bloomberg)
Pharma, metal, IT in red.
"The Nifty is trading well above the resistance zone of 17700 and hence we should be heading to 18050. Since the support for this market is at 17500-17600 which makes an unfavorable risk-reward, traders should look at picking up long positions on dips or during intraday corrections. With a smaller stop, they can project higher targets."
IT companies are expected to continue their revenue growth momentum in Q2, which is a reflection of strong deal signing momentum. We expect BFSI, retail, manufacturing, hi tech and life-science to drive revenues in the quarter. On the currency side, we expect some headwinds from unfavourable cross currency movements. Since demand continued to be strong in IT companies, the supply side crunch is expected to have an impact on margins. Since companies accelerate fresher hirings to cater to increasing demand, utilisation of companies is expected to take some hit while subcontracting costs are expected to accelerate, which will have an impact on margins.
Malaysia's AirAsia Group Bhd has reaffirmed its commitment for fleet migration to Airbus A321neo with the conversion of the remaining A320 orders, it said on Wednesday. With the conversion, the airline now has a total order of 362 A321neo aircraft with deliveries up until 2035, it said in a statement. (Reuters)
India is pushing state-run Coal India Ltd., the world’s top miner of the fuel, to boost production to help power plants navigate a supply squeeze and to meet longer-term ambitions to curb imports. The nation, which relies on the fuel for about 70% of electricity generation, has already seen signs of power shortages, and needs to lift deliveries to avert the risk of blackouts. It’s also seeking to minimize short-term impacts on energy-hungry industrial users including producers of aluminum, cement, bricks and paper. (Bloomberg)
The prices of Liquefied Petroleum Gas (LPG) cooking gas cylinders across all categories including subsidised gas on Wednesday were hiked by ₹15 per cylinder -- the fourth straight increase in rates in less than two months. (Read here)
The Reserve Bank of New Zealand (RBNZ) increased its cash rate by a quarter of a percentage point to 0.5%. Economists had expected the hike last month but the bank held off due to an outbreak of the covid-19 delta variant. New Zealand is one of the first developed economies to reverse rate cuts put in place during the pandemic, BBC has reported.
At market pre-opening, the Sensex was at 59,744.88, up 445.56 pts, or 0.75%, while Nifty was at 17,822.30, up 131.05 pts, or 0.74% as of 09:00 am.
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