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PremiumIndian indices closed lower on Monday. World shares and U.S. futures were mostly higher Monday, bouncing back from losses last week on Wall Street.
Stocks rose in London, Paris, Tokyo and Shanghai but fell in Hong Kong, where a Financial Times report that Chinese regulators want to break up the mammoth e-commerce payments platform Alipay dragged shares in Alibaba Group Holding nearly 4.3% lower. The company said it had no comment on the report.
"Nifty bounced back from its support zone of 17,250-17,300 after making a low of 17,269. Nifty closed at 17,350 down by 18 points since last close. Nifty has been trading in a small range since the last 5 days and any breakout above 17,450 with above average volumes may take Nifty to 17,550 levels. Traders are advised to book profits if Nifty gives a daily close below 17,250 level."
The Sensex closed at 58,177.76, down 127.31 points or 0.22%, while Nifty was at 17,355.30, down 13.95 points or 0.08%. Banks, financials were top drags.
Companies need to seed the 12 digit Aadhaar number with each of their employee’s EPF account -- else they won’t be able to submit EPF deductions from this month, the Union labour ministry Monday communicated to it's over 120 regional offices. But has given seven north-eastern states, naxal infected areas and some specific sub-sectors like coffee, jute and rubber time till 31 December 2021 to comply with the requirements.
Hetero Biopharma is eyeing an SEC nod for Sputnik V, CNBCTV18 reported, citing people familair with the matter. SEC will soon consider the proposal.
India Inc. spent over ₹1,600 crore on combatting the second wave of covid-19 in the financial year 2020-21, according to a study by CSR knowledge and impact intelligence portal CSRBOX. The entities studied over 350 public listed companies to find out that over 750 corporate social responsibility initiatives were launched in response to the second wave, and that 35% of these interventions were implemented in Maharashtra, Gujarat, Karnataka, and Uttar Pradesh. (Read more)
India Resurgence Fund, promoted by Piramal Enterprises Limited and Bain Capital Credit, along with international co-investors, has announced an investment of $75 million ( ₹555 crore) in Thrissur Expressway Limited (TEL), a part of Hyderabad based KMC Constructions Limited (KMC), the company said today. The investment will be used towards restructuring of TEL’s existing debt and for last mile financing to enable project completion.
Kesoram Industries' stock was trading at ₹85.95 apiece, up 3.00% at 2:35 pm. The company's board has approved a rights issue of 7,99,99,665 shares for around ₹400 crore. The rights entitlement ratio stands at 133 shares for every 274 shares held.
The telecom department may approve proposals for telecom equipment PLI worth ₹3,245 crore this week, CNBCTV18 reported, citing people aware of the matter. Cabinet secretary had asked DoT about the reason for delay in approval last week.
Gold prices were steady on Monday as the dollar firmed, while investors were cautious ahead of U.S. consumer price readings that could be crucial to Federal Reserve's decision on when to start withdrawing its asset purchases. Spot gold was flat at $1,787.96 per ounce by 0711 GMT, while U.S. gold futures fell 0.2% to $1,789.00. "There's the belief that if inflation does run away, the Fed will have to stamp on it and that means faster tapering and interest rate hikes sooner than expected. That won't be good for gold," IG Market analyst Kyle Rodda said.
The dollar stengthened to a two-week high versus a basket of major currencies on Monday as market expectation builds that the Federal Reserve could taper its stimulus sooner rather than later despite a surge in COVID-19 cases. The dollar index rose 0.3% to 92.880 in early European trading hours, its highest level since August 27. It was last up 0.2%. A flurry of U.S. economic data is due out this week, starting with U.S. consumer price data on Tuesday, which will frame the economy's progress ahead of the Federal Reserve's meeting next week.
HDFC Mutual Fund is all set to launch a Fund of Funds (FoF) tracking the MSCI World Index. The MSCI World Index is a developed markets index covering 23 markets and more than 1,500 companies. The HDFC Developed World Indexes Fund of Funds (FoF) will feed into various Credit Suisse Index Funds and ETFs domiciled in Ireland and Luxembourg. These index funds will collectively track the MSCI World Index. The new fund offer (NFO) for the scheme will run from 17 September to 1 October. Being an open-ended fund, it will be available for purchase and redemption thereafter. (Read more)
Kotak Investment Advisors says Kotak Special Situations Fund will invest ₹10 billion in TVS Supply Chain Solutions. Under the deal, the fund has financed TS Rajam Rubbers with ₹8 billion in the form of non-convertible debentures. The fund has invested ₹2 billion in the form of equity in TVS Supply Chain Solutions. (Reuters)
- India’s Foreign Portfolio Investors have pumped in ₹7,605 crore so far during September. According to data from depositories, overseas investors invested ₹4,385 crore into equities and ₹3,220 crore in the debt segment.
- India’s Industrial Production slowed down in July at 11.5% as the low base effect wears off while the U.S. PPI jumped 0.7% in August, above the market expectations of 0.6%.
- Philadelphia Fed President Patrick Harker joined the team of policymakers keen to begin scaling back asset purchases, bond traders seem to think a slowdown won't be enough to delay tapering much.
- Japan’s economy had shown signs of more momentum than market expectations ahead of a record surge in virus cases. The GDP grew by 1.9% in June above the market consensus of 1.3%.
- Gold prices were subdued as the dollar held firm, while cautious investors awaited readings on U.S. consumer prices due this week that could be crucial to the Federal Reserve's decision on when to exit its super-supportive policy.
ICICI Ventures is set to raise fresh capital of ₹1,000 crore for its new fund. It plans to diversify its investments into the start-ups space beyond real estate.
Ola co-founder Bhavish Aggarwal on Monday said its electric scooter factory will be run entirely by women and employ over 10,000 women at full scale.
Rolls-Royce Holdings Plc and Babcock International Group Plc sold their combined 39% stake in AirTanker Holdings Ltd. for 315 million pounds ($435 million) as the U.K. firms seek to shore up depleted balance sheets. Equitix Investment Management Ltd. will pay 189 million pounds for Rolls’s 23.1% stake in the air-to-air refueling company, which serves Britain’s Royal Air Force, and 126 million pounds for Babcock’s 15.4%, according to statements Monday. Both amounts include the repayment of shareholder loans.
Govt eyes taxation of cryptocurrency taxes, ecosystem based on the logic that any asset that generates income must be taxable, according to multiple media reports.
European car maker Skoda Auto on Monday announced its plans to set up 30 'compact workshops' pan-India by this year for providing periodic maintenance and servicing requirements to its customers in the domestic market. Skoda Auto India will also start operations in some new markets with this service-first concept of compact workshops, which will cater to existing and potential customers in new and emerging markets, the company said in a release. The company currently has over 170 customer touchpoints including sales and after-sales facilities across over 100 cities pan-India
J.P. Morgan on Monday launched its new campus in Hyderabad and said it was part of its continued commitment to invest in its people and infrastructure to provide world-class, high-performance, technology-focused work environments for its employees. JPMorgan Chase & Co. is a global financial services firm with assets of $2.6 trillion and operations worldwide. The 822,000 square feet campus located in Salarpuria Sattva Knowledge City, HITEC City, is one of JPMorgan Chase’s key campuses globally and its largest in Asia Pacific and will consolidate the global financial services firm’s presence in Hyderabad for employees across technology, risk, operations and support services, it said in a statement.
Pidilite Industries' stock was trading at ₹2,400.00 apiece, up 2.22% at 12:37 pm.
The company's stock was trading at at 12:12 pm. Goldiam’s board of directors have approved a proposal to buyback up to 3,80,000 shares an aggregate amount not exceeding ₹45.60 crore, equalling 1.71% of the total paidup equity share capital and 19.35% of the total paid-up share capital and free reserves of the company at a price of ₹1,200 per share/
TCS' stock was trading at ₹3,837.55 each, up 1.21% at 12:10 pm. NXP Semiconductors has selected TCS as a strategic partner to drive IT innovation.
Advanced EnzymeTech's stock was trading at ₹412.00 apiece, up 12.32% at 12:09 pm. The company has announced positive clinical breakthrough in the randomised controlled trials of systemic enzymes and probiotics to resolve 'long COVID’ fatigue symptoms.
Shares of Dr Lal PathLabs Ltd have risen more than 78% year-to-date and now trade near fresh highs. The company, like its peers, benefited from the pandemic and associated surge in testing, coupled with rising non-covid volumes. Market share gains by organised testing laboratories, geographical expansions being undertaken by the company, and digital initiatives, among others, have helped drive growth. (Read more)
DBS on Monday said it has launched a realtime online tracking for cross-border collections for businesses in India in partnership with SWIFT Global Payments Innovation (gpi). DBS said it is the first bank in India and Asia-Pacific to offer this service to clients, which is expected to benefit close to 4,000 corporate and small business clients in India, with numbers expected to grow further. Corporates, it said, can gain visibility over incoming payments now, helping with working capital management by planning back-to-back payments, thereby improving receivables forecasting and overall cash position. It also helps improve accuracy for intraday credit line needs and provides further benefits in supporting credit control, the bank said.
Mining major Vedanta Resources Ltd (VRL) has reduced its net debt* (including Inter Company Loan and loan at Volcan) by $300 million in first half of this fiscal and expects to further reduce its debt by $500 million in second half, the company said today. "With entire debt repayment at Volcan, the pledge on all the equity shares of VRL has been released. We believe that strong operational performance from our world class asset base will strengthen our balance sheet and lead to investment grade credit metrics," the company said in a press statement.
· Gold prices opened slightly lower on Friday and fell further during most of the session till a low of | 46751
· Prices remained subdued in the last few sessions amid growing uncertainty over the US Federal Reserve’s timeline to start tapering stimulus, with the precious metal heading to record a weekly decline
· Therefore, we expect gold prices to correct further towards | 46600 level for the day
Energy Outlook
· Crude oil prices started Friday’s trade on a positive note opening strongly higher with a gap and rose further during most of the session till a high of | 5138
· Prices remained supported in the last session as US oil output dropped by most on record after Hurricane Ida. Even the deadly Texas freeze did not do as much damage to oil production as Hurricane Ida
· Hence, we expect crude prices to remain positive towards | 5160 level for the day
One-stop supermarket chain DMart has forayed into Haryana with opening a modern store at BPTP Parklands, Faridabad, the company said today. Built on a plot size of 1.57 acre, the store in Sector 75 comprises three floors — basement, ground, and first floor — with a total built up area of approximately 94,000 sq. ft. This is the second DMart store in NCR, the first one is in Ghaziabad.
ViacomCBS Inc. plans to split the management of its movie and television businesses at Paramount Pictures as it reorganizes the operations at the unit, Dow Jones reported, citing people familiar with the matter who weren’t identified. Nickelodeon head Brian Robbins will oversee films, while David Nevins will have oversight of Paramount’s television unit, adding to his roles at Showtime and original content for Paramount streaming platform, it reported. Robbins will be taking over from Jim Gianopulos, who has been chairman and chief executive officer of Paramount since 2017. Both will report to ViacomCBS Chief Executive Officer Robert Bakish, Dow Jones said, adding that the changes will be announced Monday. (Bloomberg)
Toyota Motor Corp. shares posted their biggest drop in three weeks after the company slashed its fiscal year production outlook by about 300,000 cars as the spread of coronavirus in Southeast Asia impacts its ability to procure chips and other essential parts. The world’s No.1 automaker said Friday it would be adjusting output in September and October and expects to produce 9 million vehicles in the fiscal year through March, down from the 9.3 million it previously anticipated. The company didn’t change its 2.5 trillion yen ($22.8 billion) operating profit forecast for the year. (Bloomberg)
The Kalrock-Jalan Consortium said Jet Airways will start domestic operations in Q1 of 2022. The airline's revival is on track with the existing air operator certificate, according to the consortium. They are also working closely with authorities on slot allocation, required airport infrastructure and night parking.
Online beauty products retailer Purplle is eyeing a $50-75 million fndraise at a valuation of $500 million, Moneycontrol reported citing people familiar with the matter.
Vedant Fashions which owns brands like Manyavar, Mohey, Mebaz, Tatva and Manthan has filed the DRHP for its IPO.
State oil giant Abu Dhabi National Oil Co (ADNOC) has set a price for the initial public offering of its drilling unit, giving ADNOC Drilling an equity valuation of $10 billion, it said on Monday. ADNOC will sell a minimum 7.5% stake in the IPO of ADNOC Drilling at 2.3 dirhams ($0.6262) per share, raising at least $750 million in the deal. The sale is the second public flotation of a company owned by the Abu Dhabi oil major after the 2017 listing of ADNOC Distribution, the largest operator of petrol stations and convenience stores in the United Arab Emirates.
API Holdings Ltd, the parent company of digital healthcare brand PharmEasy, on Monday said that it has made fresh appointments of five independent directors to its board, the company said in a statement. “The fresh appointments bring a great amount of cognitive diversity to the Board, with luminaries from the world of public service, technology, pharma, medical fraternity, and the consumer sector," the statement said. With the new appointments, API Holdings’ board strength stands increased to 12 directors.
Shanghai aluminium prices climbed to their highest level in more than 13 years on Monday, fuelled by supply concerns in China, the world's biggest consumer of the metal. The most-traded October aluminium contract on the Shanghai Futures Exchange rose as much as 4.6% to 23,650 yuan ($3,665.87) a tonne. Three-month aluminium on the London Metal Exchange hit its highest since July 2008 at $2,980 a tonne. Output curbs in China, the world's biggest aluminium producer, and political turmoil in Guinea - China's top source of bauxite - have boosted aluminium prices by around 50% so far this year.
