Sensex ends above 60k; Nifty adds 100 pts; Bajaj twins shine

Indian benchmark indices jumped to reach a 4-month high on Wednesday with Sensex breaching the 60,000 mark. Sensex added 418 points to finish at 60,260. Nifty breached the 17,900 mark to close at 17,926, a gain of 100 points.

Twin Bajaj financial stocks (Bajaj Finserv and Bajaj Finance) led the rally and surged by 6% and 3%, respectively. Bharti Airtel, Tech Mahindra and NTPC also made decent gains. M&M and Apollo Hospitals dragged throughout the day and closed 1% down.

Among indices, the PSU Bank index shined with a gain of 2%. IT and Media also surged more than a per cent each. Auto was the only index to close in the red.

Asian market had a reasonably good day tracking Tuesday's Wall Street gains. Tokyo stocks closed higher on Wednesday with investors emboldened by a cheaper yen. The benchmark Nikkei 225 index gained 1.23% to close at a 7-month high of 29,222.

China and Hong Kong stocks ended in positive territories on rising hopes that the Chinese government would prop up the ailing property sector. Shanghai Composite Index and Hang Seng Index climbed around 0.5%.

European shares remained flat amid persisting recession fears, with investors eyeing growth and inflation data due this week. The UK market remained subdued as inflation hit double digits for the first time in 40 years.

GIC Housing Finance Ltd plans to raise funds selling commercial papers maturing in three months, three merchant bankers said on Wednesday.

The housing finance company will offer a yield of 6.28% on this issue, and it has received commitments worth around 1.50 billion rupees ($18.88 million), the bankers said.

The notes are rated A1+ by ICRA and will mature on Nov. 18. (Reuters)

Narendra Solanki - head fundamental research- investment services, Anand Rathi Shares & Stock Brokers on markets: Indian markets opened on positive note following positive overall Asian markets following better-than-expected export figures in Japan. During the afternoon session, the sentiments continued to remain optimistic and markets further added to the strength with buying seen in Banks, Financials, IT and consumer Durables.

Crude oil prices continued to trade on a subdued note on Wednesday with Brent futures touching fresh lows amid concerns over a global economic slowdown.

Demand concerns, China’s virus spread and prospect of higher supply from Iran amid progress in US-Iran talks weighed on the crude price, analysts said. (Full Report)

India's wheat production is projected to have declined nearly 3 per cent to 106.84 million tonnes while the overall foodgrain production is estimated to have touched record 315.72 million tonnes in the 2021-22 crop year. The wheat production is estimated to have declined due to heatwave that resulted in shrivelled grains in the northern states of Punjab and Haryana.

Releasing the fourth advance estimate for the 2021-22 crop year, the Union agriculture ministry on Wednesday said a record output is also estimated for rice, maize, gram, pulses, rapeseed and mustard, oilseeds and sugarcane. The crop year 2021-22 was from July 2021 to June 2022.

The country's overall foodgrain production is estimated to be record 315.72 million tonnes in the crop year that ended in June 2022, according to the ministry. (PTI)

The euro-area economy grew slightly less than initially estimated in the second quarter as signs continue to emerge that momentum is unraveling.

Output rose 0.6% from the previous three months between April and June, compared with a preliminary reading of 0.7%, Eurostat said Wednesday. Employment, meanwhile, climbed 0.3% during that period.

While the data still suggest Europe’s economy was on a relatively firm footing coming into the summer, analysts worry that energy shortages will drive record inflation higher still, tipping the continent into a recession. A downturn lasting two quarters is now more likely than not, according to a Bloomberg survey, which puts the probability at 60%. (Bloomberg)

Akasa Air said on Wednesday it will keep adding one new aircraft every two weeks after India's newest budget carrier received its third aircraft which will be put into operation on the Mumbai-Bengaluru route shortly. (Reuters)

The Central Consumer Protection Authority (CCPA) on Wednesday said it has imposed a penalty of ₹1,00,000 on e-commerce player Flipkart for allowing the sale of substandard domestic pressure cookers on its platform. Speaking to PTI, CCPA Chief Commissioner Nidhi Khare said a penalty of ₹1,00,000 has been imposed on Flipkart for allowing the sale of substandard pressure cookers on its e-commerce platform and violating the rights of consumers.

Flipkart has also been directed to notify consumers of all 598 pressure cookers sold on its platform, recall the pressure cookers and reimburse money to the consumers, she said. (PTI)

Following fast approaching festive season and ease in commodity prices, Nifty FMCG index has climbed to life-time high of 43,326.65 levels. Nifty FMCG index today opened upside and went on to climb to its life-time high of 43,326.65 mark, logging more than half per cent rise on Wednesday trade session.

Nifty FMCG index has been rising due to ease in commodity prices and fast approaching festival season, believe experts. (Full Report)

The value of the foreign portfolio investors (FPI) holdings in the domestic equities dropped 14 per cent to USD 523 billion in the three months ended June 2022 from the preceding quarter, according to a Morningstar report.

This was the third consecutive quarterly decline in the value of FPIs' investments in Indian equities.

Foreign investors were cautious since the start of the year and it intensified as the year progressed, following the influence of worrying trends in both global and domestic markets. (PTI)

Shares of Singer India Ltd. have jumped about 40% in two days after the investment firm founded by late billionaire Rakesh Jhunjhunwala purchased a stake in the tiny appliance maker.

Jhunjhunwala’s Rare Investments acquired 8% of Singer India as Retail Holdings NV pared its holding, exchange data showed Tuesday. With the stock surge, the New Delhi-based manufacturer of sewing machines, washers and other products is now valued at more than $50 million.

Aarti Drugs shares had ended lower on Tuesday session but after the news of Directorate General of Trade Remedies (DGTR) completing its enquiry after accepting the application of the drug maker company to impose anti-dumping duty on Chinese export of Ofloxacin — popularly known as fluoroquinolone antibiotic. aarti Drugs share price today opened with big upside gap and went on to hit intraday high of ₹489.95 apiece levels on NSE, logging more than 12 per cent jump from its Tuesday close of ₹423.15 apiece levels. (Full Report)

Retail businesses across India continued to post healthy growth over pre-pandemic levels, registering an 18 per cent rise in July sales compared to the same month in 2019, Retailers Association of India said on Wednesday.

As per the latest business survey by Retailers Association of India (RAI), the East India region saw the highest year-on-year growth of 25 per cent last month, followed by the south at 21 per cent, north at 16 per cent and west at 10 per cent.

In terms of categories, sports goods clocked the highest growth rate with a 32 per cent increase over July 2019, followed by footwear and furniture & furnishing at 23 per cent each.

Apparel and clothing registered a 22 per cent rise, while quick service restaurants, consumer durables and electronics footwear posted a growth of 17 per cent, according to the survey.

The jewellery category grew by 15 per cent in July this year compared to the same month in 2019, while food and grocery rose 11 per cent. Beauty, wellness and personal care saw the least growth with just a 3 per cent rise. (PTI)

Jaideep Hansraj, MD & CEO of Kotak Securities: Today’s rescaling of the 60000 peaks is a sign of the strength of retail investors in India. It shows the belief of the investors in the India growth story and is another reminder to all of us to be optimistic about India inc.

Private telecom operator Bharati Airtel on 17 August informed that it has paid ₹8,312.4 crore to the Department of Telecom towards dues for spectrum acquired in the recently concluded 5G auctions. With the payment, the telco has paid four years of 2022 spectrum dues upfront. (Full Report)

Tokyo stocks closed higher on Wednesday with investors emboldened by a cheaper yen and the five-day winning streak notched by the US Dow.

The benchmark Nikkei 225 index gained 1.23%, or 353.86 points, to end at 29,222.77, while the broader Topix index advanced 1.26%, or 25.03 points, to 2,006.99.

The dollar fetched 134.48 yen, against 134.21 yen in New York and around 133 yen in Tokyo on Tuesday. (AFP)

UK inflation accelerated more than expected last month to the highest in 40 years, intensifying a squeeze on consumers and adding to pressure for action from the government and Bank of England.

The Consumer Prices Index rose 10.1% in July from a year earlier after a 9.4% gain the month before, the Office for National Statistics said Wednesday. The reading was higher than expected by both the BOE and private-sector economists.

Rising food prices made the biggest contribution to the month’s increase, indicating inflationary pressures are spreading beyond energy. The pound briefly spiked to the day’s high of $1.2143 following the release, before paring gains. (Bloomberg)

Edelweiss Alternative & Quantitative Research has carried out a pre-emptive analysis of the Semi-Annual Index (SAIR) September 2022 Rejig for Nifty indices. The Index provider will officially announce the list in the second half of August 2022.

As per the brokerage and research firm, probable inclusions in Nifty Next 50 index may include Adani Wilmer (AWLTD), Indian Railway Catering and Tourism Corporation (IRCTC Ltd), Motherson, Bharat Electronics Ltd (BEL), and Hindustan Aeronautics Ltd (HAL). (Full Report)

India-focused offshore funds and exchange-traded funds (ETFs), put together, recorded net outflows of $1.59 billion in the three months through June. This was higher than net outflows worth $1.28 billion during the quarter ended 31 March, Morningstar India said in a report. (Full Report)

Bajaj twin shares (Bajaj Finserv and Bajaj Finance) surged in today's first half along with NTPC. Among indices, Media and Financial Service indices led the race.

India Covid cases stay below 10,000 mark for 2nd consecutive day with 9,062 fresh infections reported on 17 August. With this, the total tally is now at 4,42,86,256.

The number of active cases came down to 1,05,058 which comprises of 0.24% of the total infections, according to Union health ministry data.

The death toll climbed to 5,27,134 with 36 new fatalities, including six reconciled by Kerala, the data updated at 8 am stated. (Full Report)

Elon Musk, the world's richest person, said early on Wednesday that he was joking when he tweeted hours previously that he was going to buy currently struggling English football club Manchester United Plc.

"No, this is a long-running joke on Twitter. I'm not buying any sports teams," Musk posted when asked by a user if he was serious about buying the club. "Although, if it were any team, it would be Man U," he added, "they were my fav (sic) team as a kid."

Musk originally tweeted: "I'm buying Manchester United ur (sic) welcome," without offering any details. Some Manchester United fans, disgruntled by their club's declining fortunes of late, had previously urged Musk on Twitter to consider buying the club. (Reuters)

The US and other nations in the world may not appreciate India buying Russian oil, but they have accepted it as New Delhi has not been defensive about its stand but made them realise the obligation the government has to its people amidst "unreasonably high" oil and gas prices, External Affairs Minister S Jaishankar has said.

Jaishankar, who arrived here on Tuesday to attend the 9th India-Thailand Joint Commission Meeting, took part in an event where he met members of the Indian community.

In an interaction with the diaspora, Jaishankar defended India's decision to buy discounted Russian oil amid Moscow's ongoing war with Ukraine, saying many suppliers of India have diverted their supplies to Europe, which is buying less oil from Russia. (PTI)

Aarti Industries Limited (AIL) is a leading Indian manufacturer of speciality chemicals and pharmaceuticals with a global footprint. It manufactures chemicals used in the downstream manufacturing of pharmaceuticals, agrochemicals, polymers, additives, surfactants, pigments and dyes. The specialty chemical stock is currently trading down about 30% from its highs. (Full Report)

The Rajasthan Small Industries Corporation (RSIC) is planning to set up an air cargo complex at the Dabok airport in Udaipur to facilitate import and export of goods in the next few months.

At present, businessmen based in the lake city of Udaipur and nearby places are required to travel to Ahmedabad or Jaipur for import and export purposes.

RSIC, a government of Rajasthan undertaking, had forwarded a proposal to the ministry of civil aviation which has been given in-principle approval and the land for the project has also been identified. (PTI)

Indian government bonds may be added to a global index next year, triggering passive inflows of about $30 billion that will help the country to finance its current account and fiscal deficits, according to Goldman Sachs Group Inc.

The nation’s sovereign bonds may be added to JPMorgan’s GBI-EM Global Diversified bond index with an initial 10% weightage, analysts Danny Suwanapruti and Santanu Sengupta wrote in a note to clients. India’s $1 trillion sovereign bond market is one of the biggest among emerging markets not to be part of any global index. (Bloomberg)

Global brokerage house Jefferies continues to believe that against a favorable Industry backdrop, Indian Hotels Company Ltd (IHCL), with its leadership position, improving asset mix, margin profile, and healthy balance sheet, is a strong investment story. Jefferies believes Indian Hotels can continue to trade at a premium given it is a strong proxy play to travel recovery. (Full Story)

The Ontario Teachers’ Pension Plan Board said it has agreed to acquire a significant majority stake in Sahyadri Hospitals chain from the Everstone Group in the Canada-based investor’s first control private equity buyout in India. Everstone and Sahyadri Hospitals’ key management and founders will continue to retain minority stakes in the healthcare firm. (Full Report)

Sameet Chavan, chief analyst-technical and derivatives, Angel One Ltd: The truncated week has started on an optimistic note, taking cues from the positive global bourses. The benchmark index Nifty50 has seen a decent gap up with the opening bell and carried its positive stature throughout the session. Though in midsession, the index witnessed a bout of correction that firmly got bought into by the sturdy bulls of the D-Street. The secular up-trend extended for another day, wherein the index gained nearly 0.72 percent and settled firmly above the 17800 level.

Technically, the market is in a secular uprun with no sign of any breather. At present, the index is hovering near the weekly sloping trendline, which might be seen as a sign of concern for the bulls. Even the consolidation post a head start could be seen as a sign of tentativeness at the higher grounds. Also, on the oscillator front, the index is ramping over the overbought zone; hence a bout of profit booking should not be ruled out. As far as levels are concerned, 17800-18000 is likely to provide some hurdle for the bulls in the near future. On the contrary, 17550-17600 is expected to cushion any downside correction, followed by the strong base setup near the 17400 odd zone.

Considering the recent price movement, it is inevitable that the undertone for the market is highly bullish, and any intraday dip could be seen as an opportunity to add long positions in the index. Meanwhile, avoiding aggressive bets in the index is advisable, and looking for opportunities in the broader market for a better trading perspective. 

The rupee appreciated 44 paise to 79.30 against the US dollar in the opening trade on Wednesday, mainly on account of foreign fund inflows.

Besides, a positive opening in the domestic equities amid moderating inflationary pressures boosted investor sentiments, according to forex dealers.

At the interbank foreign exchange, the rupee opened sharply up at 79.32 against the dollar, then gained further ground to 79.30, registering a rise of 44 paise over the last close.

In the previous session on Friday, the rupee depreciated 12 paise to close at 79.74 against the US dollar. (PTI)

Global fund managers are no longer apocalyptically bearish, showed the latest survey by BofA Securities. Expectations that inflation and interest rate shocks are beginning to end, seem to be gradually replacing the gloom and doom sentiment with hope. As a result, economic outlook and equity allocation saw some improvement in August from the dire low levels seen in July. 

Most respondents noted that the current sentiment is still too bearish for an immediate reversal in the equity markets and that they remain patient bears. (Full Report)

Shares of REC Ltd rose to ₹103 apiece on the BSE in Wednesday's opening deals as the stock started trading ex-bonus, a day ahead of its record date for the bonus shares issue which it had recommended in 1:3 ratio. (Full Report)

STOCK IN FOCUS

ABB India (CMP Rs.2,898)

In the view of a strong capex uptick, execution pick-up, strong earnings growth and parent support from ABB Global, we have a BUY rating with a Target Price of Rs3,325.

Intraday Picks

ASHOKLEY (PREVIOUS CLOSE: 149.50) BUY

For today’s trade, long position can be initiated in the range of Rs148.50-147.50 for the target of Rs153 with a strict stop loss of Rs146.

TATACONSUM (PREVIOUS CLOSE: 780) BUY

For today’s trade, long position can be initiated in the range of Rs776- 772 for the target of Rs804 with a strict stop loss of Rs759.

ZEEL (PREVIOUS CLOSE: 238) SELL

For today’s trade, short position can be initiated in the range of Rs240- 242 for the target of Rs231 with a strict stop loss of Rs246.

The Indian rupee is expected to open higher versus the dollar on Wednesday tracking a fall in oil prices that dropped to their lowest level since mid-February amid concerns over global growth outlook.

The rupee, which is set to resume trade after a four-day weekend, is seen opening at 79.25-79.30 per dollar, up from 79.6550 on Friday.

Brent crude futures on Tuesday declined about 3% to slip to near $92 a barrel, on concerns over a potential global economic slowdown while traders awaited clarity on talks to revive a deal that could allow more Iranian oil exports. (Reuters)

Voltamp Transformers Ltd: NEUTRAL with TP at ₹3046

Ahluwalia Contracts (India) Ltd: NEUTRAL with TP at ₹466

After newsbreak of Rakesh Jhunjhunwala's firm RARE Investment buying stake in Singer India, the sewing stock gave strong upside moves and hit upper circuit on Tuesday session. Singer India share price opened upside on Tuesday and hit intraday high of ₹69.15 apiece levels — logging 20% rally in single session. As per the information available on BSE website, Rakesh Jhunjhunwala's investment firm RARE Investments has bought stake in Singer India that probably triggered fresh buying in the counter on Tuesday. (Full Report)

Japan's Nikkei on Wednesday crossed the 29,000-level for the first time in more than seven months as Wall Street's major indexes rallied overnight after U.S. retailers' robust earnings.

The Nikkei share average rose 0.81% to 29,101.33 by the midday break, after rising to 29,153.05, its highest level since Jan. 6.

The broader Topix advanced 0.78% to 1,997.35.

Balrampur Chini Mills, Delta Corp, and Tata Chemicals securities will remain in the ban period for the F&O segment as they have crossed 95% of the market-wide position limit. (Full Report)

Five investment bankers including, ICICI Securities, Axis Capital and Citigroup Global Markets, are among the selected to assist the government in offloading its 29.53% residual stake in Hindustan Zinc Ltd (HZL) in tranches. An official on Tuesday said that HDFC Bank and IIFL Securities will act as investment bankers and work with the government and handle the share sale offers. (Full Report)

Indian government bond yields are likely to trend lower in early deals on Wednesday after a four-day holiday weekend, tracking a fall in oil prices and on easing domestic inflation.

The benchmark 10-year government bond yield is likely to trade in a 7.24%-7.30% band, a trader with a private bank said. The bond yield closed at 7.2894% on Friday. Indian fixed income markets were shut on Monday and Tuesday for holidays.

"Though inflation eased in July, it's largely along the expected lines. The downward move in oil prices bodes well for inflation outlook, which may lead to some rally in bond prices," the trader said. (Reuters)

Cryptocurrency prices continued to plunge with Bitcoin hovering below the $24,000 level. The world's largest and most popular cryptocurrency was trading over a per cent lower at $23,988. The global crypto market cap today was above the $1 trillion mark, even as it was almost flat in the last 24 hours at $1.2 trillion, as per CoinGecko. (Full Report)

The government on Tuesday said it has received 38 technical bids for setting up silos under the 'hub and spoke model' at 14 locations in six states.

The bids have been received from 15 prospective parties. Technical evaluation is expected to be completed in three-four weeks, the union food ministry said in a statement.

The ministry has proposed to develop a capacity of 111.125 lakh tonne of Hub and Spoke Model Silos at 249 locations across the country.

These silos will be constructed in two modes through implementing agency Food Corporation of India (FCI). One is constructing under the DBFOT (Design, Build, Fund, Own & Transfer) in state-run FCI's land and the other DBFOO (Design, Build, Fund, Own & Operate) in land of concessionaire/other agency. (PTI)