PremiumUS consumer prices rose faster than expected last month suggesting Federal Reserve will continue to keep inflation as its priority. This led to Wall Street tanking on Tuesday and Asian markets tracking the loss and ending in the red. All indices lost ground on Wednesday.
Indian benchmark indices tracked Wall Street and other Asian indices in the morning and slipped more than a per cent, ut recovered to close 0.4% down.
Sensex closed at 60,347, a drop of 224 points. Nifty shed 66 points and closed just above 18,000 points.
IT index, which started in red along with other indices, could never recover and closed 3.5% down. Realty, Consumer Durable, Pharma and Oil & Gas also slipped in today's session.
Bank and Financial indices made impressive gains along with Media and Metal and helped to curtail the extent of the loss.
Among stocks, Infosys dropped more than 4%. Tech Mahindra, TCS and Wipro were also amongst the laggards. IndusInd Bank, NTPC, Powergrid, and SBI made decent gains on Wednesday.
Most Asian markets fell on Wednesday extending a global selloff as higher-than-expected US inflation data sparked fears of a prolonged period of Federal Reserve interest rate hikes.
Tokyo stocks sank on Wednesday as investors shunned risk on worries about high US inflation. The benchmark Nikkei 225 index closed down 2.78%.
China stocks also fell and blue-chip CSI 300 Index lost 1.1%, while the Shanghai Composite Index was down 0.8%. The Hang Seng Index dropped 2.5%.
European stock markets opened lower on Wednesday. Added to the picture, UK inflation slowed last month to 9.9% but remains close to a decades-high, official data showed Wednesday.
Over 300 players from various sectors, including solar, steel and cement, will gather in Coimbatore on Friday to discuss ways to reduce their energy costs amid government's push towards use of renewable energy.
The 'C&I Clean Energy Meet 2022' on September 16 will also see participation from players operating in foundry, automobile, manufacturing, chemical, engineering, automation, spinning mills and textiles sectors, organiser Mercom India said in a statement on Wednesday.
Commercial and Industrial (C&I) customers, particularly those with large power requirements, across India are plagued with mounting power bills. This event is designed to foster collaboration between C&I companies and leading renewable energy solution providers, it said. (PTI)
During January-June period, around 700 acres of land have been acquired for over $1.1 billion across eight cities to develop housing, office, retail, logistics and data centre projects, a report by CII-CBRE said on 14 September.
During January-June period, around 700 acres of land have been acquired for over $1.1 billion across eight cities to develop housing, office, retail, logistics and data centre projects, a report by CII-CBRE said on 14 September. (Full Story)
Government-owned Bharat Electronics' (BEL) record date for the bonus issue of its equity shares that it had recommended in the ratio of 2:1 is this week on Friday, September 16, 2022 and the stock will start trading ex-bonus on Thursday, a day ahead of the record date. (Full Story)
India is fast catching up with China in its thermal coal imports, as the world's two biggest overseas buyers of the power generation fuel adjust purchases to align them with the varying trajectories of their economic growth.
India, widely seen as one of the last remaining major growth markets for the fuel, has stepped up buying from Indonesia and Russia after the invasion of Ukraine, which Moscow calls a special operation. (Full Story)
Goldman Sachs downgraded top Indian information technology service providers Tata Consultancy Services and Infosys to "sell," from "buy," citing a potential slowdown in dollar revenue growth in the face of impending macroeconomic stress.
Goldman upgraded Wipro to ‘buy’, citing attractive valuations and a recent pickup in the company's order book. (Full Report)
The initial public offering of Harsha Engineers International opened for subscription on Wednesday. The issue will conclude on Friday.
Harsha Engineering International is a major manufacturer of precision bearing cages, in terms of revenue, in the organised sector in India, and is touted among the leading manufacturers of precision bearing cages globally.
It plans to raise ₹755 crore through the IPO that comprises a fresh issue of ₹455 crore and an offer for the sale of shares worth ₹300 crore by promoters.
Some proceeds from the IPO will be utilised for debt repayment, for funding capital expenditure, infrastructure repairs and renovation and general corporate purposes. (ANI)
The European Union's second-highest court on Wednesday overwhelmingly upheld the EU's record fine against Google over its Android operating system for mobile phones, slightly reducing the fee for technical reasons.
In a statement, the EU's General court said it "largely confirms the commission's decision that Google imposed unlawful restrictions on manufacturers of Android mobile devices" in order to benefit its search engine.
The court, however, said the fine should be slightly reduced to 4.125 billion euros ($4.1 billion), instead of the 4.3 billion euros decided by the commission in 2018 after reviewing the duration of the infringement.
The levy remains the EU's biggest ever despite Google's arguments that the commission's case was unfounded and falsely relied on accusations it imposed its search engine and Chrome browser on Android phones. (AFP)
The Securities and Exchange Board of India on Tuesday directed market intermediaries to put internal code of conduct and controls in place to deal with the rise in circulation of unauthenticated news by Sebi-registered market intermediaries through various modes of communication.
The regulator told the intermediaries that the access to blogs, chat forums, messenger via which the unauthenticated news related to stocks was being circulated should be restricted under supervision. (Full Report)
Vedanta Ltd will create a hub to manufacture Apple's iPhones and other television equipment in the state of Maharashtra, Reuters reported quoting CNBC TV18.
After Vedanta Limited signed MoUs with Gujarat on September 13, Shiv Sena leader Aditya Thackeray charged the Maharashtra government with abandoning the agreement.
Maharashtra Navnirman Sena chief Raj Thackeray has demanded a probe into how the Vedanta-Foxconn deal went from Maharashtra to Gujarat. The MNS chief said that the priority of the investors was Maharashtra than how the deal went into Gujarat's hands. Thackeray added that "it is serious and not a good sign. We should go beyond politics and look at this issue". (Full Report)
The national capital region (NCR) has the largest 3.35 million square feet of space occupied by ghost malls, as per the report. IT city Bengaluru has 1.38 million sq.ft of space occupied by ‘ghost malls’ and followed by Hyderabad and Mumbai at 1.14 million sq ft and 1.13 million sq ft space, respectively. The other Indian cities where ghost malls are located are Ahmedabad (0.37 million sq ft); Pune (0.37 million sq ft); Kolkata (0.32 million sq ft), and Chennai (0.33 million sq ft), respectively. (Full Report)
Contract logistics provider DHL Supply Chain will invest 500-million Euro (around ₹4,000 crore) in India over the next five years to expand its warehousing capacity, workforce and sustainability initiatives.
With this expansion, DHL Supply Chain will add 12 million sq ft of warehousing space in its existing portfolio to take its total capacity to about 22-million sq ft by 2026, the company said in a statement on Wednesday.
The company will add this 12-million square feet of capacity in wholly-owned DHL multi-client sites in key metro cities such as Bangalore, Chennai, Kolkata, Mumbai, NCR and Pune, to cater to growing sectors such as e-commerce, retail, consumer, manufacturing as well as automotive. (PTI)
Tata Power Solar Systems Ltd (TPSSL) has received a letter of award worth ₹596 crore from NHDC to set up a 125MWp floating solar project in Madhya Pradesh.
NHDC is a joint venture of state-owned hydro power giant NHPC and the Madhya Pradesh government, a statement by Tata Power Company Ltd said on Wednesday.
NHDC had invited bids early this year for this project to be set up at the Omkareshwar reservoir in Khandwa district of Madhya Pradesh.
The LoA was awarded through tariff-based competitive bidding. The project will be commissioned within 13 months from the date of issuance of the letter of award (LoA) and will provide sustainable power to MP Power Management Company. (PTI)
India's wholesale price-based inflation (WPI) eased to 12.41% year-on-year (YoY) in August 2022 from 13.93% in the previous month of July, the government data showed on Wednesday, and lower than 11.64% in August 2021.
Inflation in August, 2022 is primarily contributed by rise in prices of mineral oils, food articles, crude petroleum & natural gas, basic metals, chemicals & chemical products, electricity, food products etc. as compared to the corresponding month of the previous year, as per data released by the ministry of commerce and industry. (Full Story)
Tata Power Solar Systems, a solar EPC company and a wholly owned subsidiary of Tata Power Renewable Energy, has received a letter of award (LoA) of ₹596 crore from NHDC Limited for setting up a 125MW floating solar project.
The project will be commissioned within 13 months from the date of letter of award and will provide sustainable power to M.P. Power Management Company. (Full Story)
US's trade with its top 15 partners increased over the past one year, but the single biggest jump was with India, the country's Consul General in Kolkata Melinda Pavek said.
Pavek, while addressing a session here at the East India Summit 2022 organised by the Confederation of Indian Industry (CII), said India-US trade stood at USD 67 billion during the first six months of 2022.
"Exports to India were USD 23 billion, while Indian exports to the US stood at USD 44 billion during January-June.
"US trade with its top 15 partners has increased over the past year, but I am proud to say that the single biggest jump was with India... US companies are consistently India's biggest source of foreign direct investment (FDI)," she said. (PTI)
Britain’s inflation rate eased from its highest rate in four decades after petrol declined, but still leaving the pace of price increases uncomfortably high for the Bank of England.
The Consumer Prices Index rose 9.9% from a year ago last month from 10.1% in July, the Office for National Statistics said Wednesday. Economists had expecting a reading of 10%.
The reading may fan speculation that inflation has already peaked, relieving some of the pressure on the central bank to act. Prime Minister Liz Truss announced plans to freeze an increase in energy bills due to hit households in consumers, a move economists say will prevent a further spike in prices this winter but keep inflation strong well into next year. (Bloomberg)
Most indices have turned green with Media and Bank being the most stable. IT, Consumer Durables and Realty are still in the red.
Shares of Tata Investment Corporation Ltd continued to rally by hitting record high for the second straight session Tuesday's trading session. The stock surged over 12% intraday to ₹2,463 apiece on the BSE. The stock has been in an uptrend since the past few sessions as it has risen more than 36% in the last five trading sessions. (Full story)
Maharashtra Navnirman Sena chief Raj Thackeray has demanded a probe into how the Vedanta-Foxconn deal went from Maharashtra to Gujarat. The MNS chief said that the priority of the investors was Maharashtra than how the deal went into Gujarat's hands. Thackeray added that "it is serious and not a good sign. We should go beyond politics and look at this issue".
Yesterday, India's mining conglomerate Vedanta and Taiwanese electronic giant Foxconn signed a Memorandum of Understanding with the Gujarat government to set up a ₹1.54 lakh crore semiconductor and display manufacturing unit in Gujarat. (Full Story)
The State Bank of India (SBI) share price today climbed to life-time high despite selling pressure on Dalal Street. SBI shares today opened downside but soon attracted bulls attention and hit intraday high of ₹564.90 apiece on NSE, which is now its new record high.
According to stock market experts, SBI shares are in ‘uptrend’ and the stock has strong support base at ₹530 per share levels. They said that those who have this PSU bank stock in portfolio should continue to hold the stock for immediate target of ₹600 apiece levels. They said that the stock has given ‘flag pattern’ breakout at ₹530 levels and any dip in the stock should be seen as buying opportunity in the stock. They advised shareholders to hold the stock with trailing stop loss at ₹530 whereas fresh buyers can buy at current levels maintaining ‘buy on dips’ strategy till the stock is trading above ₹540. They advised fresh investors to maintain stop loss at ₹497 apiece levels. (Full Story)
Oil retreated on concern that a further round of severe US monetary tightening to combat inflation will hurt demand, and an industry report pointed to a hefty increase in American commercial stockpiles.
West Texas Intermediate fell below $87 a barrel after a volatile session on Tuesday, when prices were buffeted by data showing elevated US inflation, and a possible Biden administration plan to refill strategic reserves. Crude’s latest drop came with losses in equities and other commodities including copper.
Oil hit the lowest since January earlier this month as traders attempted to price in a possible global slowdown, tighter monetary policy, and lower energy demand. The hotter-than-expected US inflation figures have set the scene for another round of aggressive hikes from the Federal Reserve, as well as further gains in the dollar, which is already near a record. There’s growing concern that the US central bank may tip the world’s largest economy into recession. (Bloomberg)
Indian government bond yields rose on Wednesday following an overnight selloff in U.S. Treasuries, stirred by fears that the Federal Reserve will deliver more super-sized rate hikes.
The benchmark 10-year government bond yield was at 7.1504% by 0504 GMT, up from 7.1077% in the previous session.
There is a "a bit of correction" on the back of U.S. bond reaction to the inflation data, but index inclusion bets will keep the yield differentials between U.S. and India low, said a trader at a private sector bank.
The difference between the 10-year U.S. and India is hovering near its lowest level since 2009. Large Fed rate hikes alongside expectations of Indian bonds being included into global indexes have led to the yield difference falling to around 370 basis points. (Reuters)
Shares of ICICI Bank continued to rally and has been trading near its record high level of ₹913 apiece, that it had it in the previous session on the BSE. The banking stock has been in upward trend in the last few sessions and is up about 30% in the last six months as compared to over 6% rise in benchmark Sensex.
Well-known money manager Saurabh Mukherjea is the Founder and Chief Investment Officer (CIO) of Marcellus Investment Managers. In his recent TV interactions, he said that Marcellus' wealth management team has built positions in ICICI Bank over the last few months. (Full Story)
The Competition Commission of India (CCI) on 13 September rejected a complaint against the proposed merger of multiplex chains PVR and INOX Leisure. The regulator in its seven-page order said that it was of the view that the apprehension of likelihood of AAEC (Appreciable Adverse Effect on Competition) by an entity which is yet to take form cannot be a subject matter of inquiry/investigation under Section 3 or 4 of the Competition Act.
The rupee depreciated by 43 paise to 79.60 against the US dollar in opening trade on Wednesday, as higher-than-expected US CPI print resulted in massive risk-off sentiments.
At the interbank foreign exchange market, the rupee opened at 79.58 against the greenback, then fell to 79.60, registering a decline of 43 paise over its last close. In initial deals, the local unit also touched 79.54 against the dollar.
On Tuesday, the rupee appreciated by 36 paise to close at an over one-month high of 79.17 against the dollar.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.03 per cent to 109.77. (PTI)
Data released on Tuesday showed that in the US, the annual retail inflation rate eased to 8.3% from 8.5% in July. Even so, it remains elevated and higher than Wall Street's consensus estimate of 8.1%. The decline in gasoline prices was offset by higher costs of food, shelter and medical care services. (Read More)
Global brokerage Jefferies in a note said that it interacted with Adani Ports' management to discuss business operations. Adani Ports aims to leverage its strong B/S to benefit from gradual volume recovery, as global container rates are easing and as it grows in logistics/warehousing to offer customers end-to-end solutions, the brokerage highlighted. (Full Story)
Sameet Chavan, chief analyst-technical and derivatives, Angel One Ltd: Nifty surpassing 18000 this time wasn’t a surprise, because the way our market behaved in the last week or so, things were pretty evident. Additionally, the global markets have been supportive for the last 4 – 5 days, which provided the much-needed push. Now, heavyweight constituents seem to have slipped into a consolidation mode, and hence, we are not seeing the following momentum in key indices. However, the market is not at all short of any action if we take a glance at the broader market. We reiterate that one can continue to remain bullish and focus more on stock-specific movements, which are likely to provide better trading opportunities.
The SGX Nifty is indicating a big gap down opening and we are likely to start around the strong support levels at 17800 - 17700 levels. In the recent past, it has been observed of such openings getting bought into, and hence it would be crucial to see how our markets react post the opening. On the flip side, 18000 - 18100 will be seen as immediate resistance.
The Union finance ministry has set up a high-level committee to address regulatory and other issues to enable scaling up investments by venture capital and private equity investments in the country.
Union Finance Minister Nirmala Sitharaman in her Budget 2022-23 speech had announced the setting up of an expert committee to examine and suggest appropriate measures related to venture capital and private equity.
"Venture Capital and Private Equity invested more than ₹5.5 lakh crore last year facilitating one of the largest start-up and growth ecosystems. Scaling up this investment requires a holistic examination of regulatory and other frictions. An expert committee will be set up to examine and suggest appropriate measures," Sitharaman had said in her speech. (ANI)
The board of directors of Alphalogic Techsys Ltd has fixed record date for bonus shares. The company board has fixed record date for bonus shares on 21st September 2022. Earlier, the board of directors of the company had approved and declared bonus shares in 1:2 ratio that means one bonus shares will be issued for every two shared held by the shareholders. (Read More)
Tirthankar Das, technical & derivative analyst, retail, Ashika Stock Broking: On the technical front, Nifty formed yet another bullish candle on the daily chart and surpassed the much-awaited hurdle of 18000 mark to continue with its winning streak. However, momentum oscillators has now reached an overbought region and some amount of cool-off seems eminent. However present price structure indicates of continuance of positive bias and our domestic Index is likely to head towards 18,300 in near term as it is the swing high of January 2022. Nifty also registered a bullish golden crossover in August (50-DEMA crossing above 200-DEMA) implying major shift of momentum from a medium-term perspective. Nifty also has given a conclusive breakout from eight month’s falling channel signalling end of corrective phase and breakout is well supported by sequential improvement in market breadth. However brutal sell-off in the US market after US inflation data for August, it is highly likely that the Fed will go for another rate hike of 75bps in its next FOMC meeting on 21st September and that would have its repercussion in our market as well. During the day global cues indicating of a huge gap down and lower level of 17700 and 17500 would be the immediate support points where one can accumulate quality stocks for medium term view.
Bitcoin price today plunged in the wake broad based sell-off after higher-than-expected US inflation data. The world's largest and most popular cryptocurrency was trading more than 8% lower at $20,373. The global crypto market cap today was above the $1 trillion mark, even as it was down over 5% in the last 24 hours at $1.04 trillion, as per CoinGecko. (Full Story)
Chairperson of capital markets regulator SEBI Madhabi Puri Buch said every single policy it brings out is totally backed by proper data.
"We will rely on and be led by data. Every single policy that SEBI brings out today is backed by data," Buch said on Tuesday while speaking at the 19th Annual Capital Markets Conference 'CAPAM 2022', organized by industry body FICCI.
In her address, the SEBI chief highlighted its role which is to facilitate capital formation and added that nation-building is done by corporates and businesses.
Buch also said that the regulatory body was fully appreciative of opportunities in India, and it is through technology that the country can achieve its goal. (ANI)
STOCK IN FOCUS
GPIL (CMP Rs.301)
We have BUY rating on GPIL, with a 12-month SOTP-based Target Price of Rs440.
Intraday Picks
COLPAL (PREVIOUS CLOSE: 1,644) BUY
For today’s trade, long position can be initiated in the range of Rs1,641- 1,630 for the target of Rs1,674 with a strict stop loss of Rs1,610.
SUNTV (PREVIOUS CLOSE: 533) BUY
For today’s trade, long position can be initiated in the range of Rs522- 518 for the target of Rs537 with a strict stop loss of Rs512.
DALBHARAT (PREVIOUS CLOSE: 1,660) SELL
For today’s trade, short position can be initiated in the range of Rs1,689- 1,697 for the target of Rs1,626 with a strict stop loss of Rs1,727.
Harsha Engineers International Ltd's (HEIL) initial public offering (IPO) will open for public subscription today and the issue will conclude on September 17, 2022. The price band has been fixed at ₹314-330 per share for its initial share sale.
Harsha Engineers IPO consists of a fresh issue of equity shares aggregating to ₹455 crore, and an offer-for-sale (OFS) of up to ₹300 crore by existing shareholders. (Read More)
Delta Corp, Ambuja Cement and Indiabulls Housing Finance Ltd to remain under the F&O ban list on Wednesday. These stocks will be under the ban for the F&O segment as they have crossed 95% of the market-wide position limit (MWPL), as per the NSE. (Full Story)
Indian stocks could open sharply lower following the overnight carnage in US markets with the Dow and Nasdaq tanking by 4-5% after data showed retail prices rose higher than anticipated.
SGX Nifty traded down 289 points at 17,781 in morning trades on SGX. SGX Nifty offers cues into initial price movements on the Nifty. (Full Story)
The public issue is all set to make its debut on BSE and NSE as most likely Tamilnad Mercantile Bank IPO listing date is 15th September 2022 i.e. tomorrow. As per the information available on BSE, the equity shares of Tamilnad Mercantile Bank Limited shall be listed and admitted to dealings on the BSE and NSE in due course. So, all eyes are now set on Tamilnad Mercantile Bank IPO listing date.
Meanwhile, grey market is also signaling about the kind of debut Tamilnad Mercantile Bank shares may have. According to market observers, Tamilnad Bank IPO GMP (grey market premium) today is ₹15. That means shares of Tamilnad Mercantile Bank are available at a premium of ₹15 in grey market today. (Read More)
Vedanta Resources Ltd chairman Anil Agarwal on Tuesday said his company is considering a second chip and display manufacturing facility in India, even as it announced a $20-billion ( ₹1.54 trillion) investment plan for its first such venture in Gujarat. Agarwal said India would need at least two such factories to become a hub of chip manufacturing and meet the needs of the country and the world.
There are some interesting proposals from Andhra Pradesh and Maharashtra, and we will look for our second plant after starting operations from the first unit in Gujarat," Agarwal said over the phone. (Full Story)
Mid-caps and small caps continued to outperform benchmark indices despite the recent volatility in the markets. The gains of 5.64% and 5.89%, respectively, for BSE mid-cap and small-cap indices are higher than the Sensex’s 3.42% rise in August. The trend continued in September. The Sensex has gained just 1.74% so far in September, while mid- and small-cap indices gained 3.32-4.34%.
The rebounding equity markets have improved sentiments, as well as the risk appetite of investors. (Full Report)
On account of strong global cues on Tuesday, bulls on Dalal Street continued to beat bears on fourth straight session. However, after the US August inflation data coming higher than the market expectations, some market experts are suggesting day traders to maintain 'stock specific trade strategy' on Wednesday session. Vaishali Parekh, Vice President — Technical Research at Prabhudas Lilladher believes that Nifty 50 index has breached the psychological hurdle and upside sentiment is expected to rise further.
Vaishali Parekh of Prabhudas Lilladher has recommended day traders to look at shares of Tata Elxsi and Tata Motors. (Full Report)
The Ministry of Coal on Tuesday conducted e-auction of eight mines spread in five states under the commercial coal mining auction process.
"The Nominated Authority, Ministry of Coal conducted e-auction of eight coal mines here today," the Ministry of Coal said in a statement.
Out of the eight coal mines that have been auctioned, five coal mines are fully explored and three mines are partially explored.
The total geological reserves for these eight coal mines are 2157.48 Million Tonnes (MT). The Cumulative Peak Rate Capacity (PRC) for these coal mines is 19.31 million ton per annum.
Out of the eight coal mines that have been auctioned two are in Jharkhand - Basantpur and Jitpur; two in Maharashtra - Dahegaon/Makardhokra-IV and Marki Mangli-IV; and two in Odisha - Rampia & Dip Side of Rampia.
Sursa mines from Chhattisgarh and Bandha North from Madhya Pradesh were also auctioned. (ANI)
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