PremiumIndian indices were mixed at close on Friday. Asian markets were mostly flat at close as investors tried to make sense of the Fed's now-hawkish stance.
Indian indices were mixed at close. The Sensex closed at 52,344.45, up 21.12 points, or 0.04%, while the Nifty was at 15,683.35, down 8.05, or 0.05%. Financials, FMCG closed in green. Among broader indices, BSE midcap and smallcap indices closed 0.89% and 0.70% lower, respectively, on Friday. The Nifty midcap100 and smallcap100 closed 1.05% and 0.88% lower, respectively. On the 30-share Sensex, HUL, Bajaj Auto, Bharti Airtel, and 10 other stocks closed in green, while ONGHC, NTPC, PowerGrid, and 14 other stocks closed in red on Friday.
Yoga guru Ramdev’s younger brother and confidant Acharya Balkrishna, together with some Patanjali group companies, gave personal guarantees worth ₹3,375.25 crore to lenders of to Ruchi Soya, Moneycontrol.com reported citing, the draft red herring prospectus (DRHP) filed by the company for a follow-on public offer (FPO). The loans went towards the acquisition of the edible oil firm in 2019, according to the DRHP.
As part of India’ strategy of building a robust power transmission network, state run PFC Consulting Ltd (PFCCL) has incorporated Mohanlalganj Transmission Ltd. as its wholly owned subsidiary.
PFCCL is a subsidiary of state-run Power Finance Corporation, India’ largest power sector lender. “The amalgamation will work towards the development of transmission scheme for the “Construction of 400/220/132kV GIS Sub-station at Mohanlalganj in Lucknow with associated 400kV Transmission lines," the PSU said in a statement on Friday. India has an inter-regional electricity transmission capacity of 105 gigawatts (GW), with transmission projects planned across the country to help meet the growing electricity demand. (Read here)
Suryoday Small Finance Bank is the latest to lower deposit rates. From 21 June, the bank will reduce FD rates by 25-100 basis points on different maturities. One basis point is one-hundredth of a percentage point. The steepest reduction is on five-year FD, which it will offer at 6.25% compared to 7.25% earlier. The lowest cut (25 bps) is on FDs between one and two years, at 6.5% compared to 6.75% earlier. In the first week of June, Capital Small Finance Bank and Equitas Small Finance Bank, too, had reduced their interest rates. Capital Small Finance Bank offers the highest interest rate on a 900-day FD at 6.25%, and Equitas Small Finance Bank offer its highest rate, 6.5%, on an FD of 888 days. Equitas Small Finance Bank, Fincare Small Finance Bank and Jana Small Finance Bank had lowered interest rates last month. The only banks that offer a 7% interest rate on FD are Utkarsh Small Finance Bank (for 700 days) and North East Small Finance Bank (for 777 days), according to their websites.
The stock was trading at ₹1,000.85 apiece, down 0.39% at 2:58 pm. The company’s promoter, Max Ventures Investment Holdings Pvt Ltd, sold shares worth ₹783 crore through an open market transaction. As per block deal data on NSE, the promoter sold over 7.83 million shares of Max Financial Services Ltd at an average price of ₹1000.8 aggregating to ₹782.88 crore.
Co-working major WeWork India on Friday said it has signed one-year deal with Tata Sky Broadband to provide desks on demand for 250 employees of internet service provider. Last year, WeWork launched its On-Demand Enterprise service where booking a space for a day was made possible across all its 35 centres in India at ₹500 per day.
WeWork India said in a statement that Tata Sky Broadband has signed a one-year deal for its On-Demand Enterprise service. Tata Sky will be paying as per the usage, it added. Tata Sky Broadband has availed this service for its 250 employees who can choose to work from any of WeWork’s 35 locations across six cities, it added.
The general insurance industry is expected to clock 7-9% growth in gross direct premium income during FY22, investment information firm Icra has said. This will be supported by growth in health segment and uptick in motor segment. "Despite underwriting losses, the sector is expected to report marginal return on equity (3-4.5%) largely supported by investment income which is highly regulated by the Insurance Regulatory and Development Authority of India (Irdai)," said Icra. In FY21, the industry witnessed a 4% year-on-year growth to ₹1.85 lakh crore. Public sector undertaking (PSU) entities were slower to adjust to an online mode of growth and the reliance on physical meetings was higher.
Toshiba Corp Board chairman Osamu Nagayama on Friday pledged to be "an agent of positive change, not a protector of the status quo," in a letter to shareholders ahead of the conglomerate's annual general meeting next week. "As the chairperson my priority is to provide Toshiba with the governance and leadership that you deserve," he said. Shareholders have called on Nagayama to resign since an explosive independent investigation found that Toshiba colluded with the Japanese government to block foreign shareholders from having influence on the board. In the statement, Nagayama reiterated plans to begin a thorough search for additional independent directors, accelerate the selection process for new CEO as well as launch a strategic review committee immediately after the AGM on 25 June.
Grofers co-founder Saurabh Kumar has quit the grocery startup, the company announced.
Federal Bank is one of India’s largest old generation private sector banks with total assets of ₹1.9 lakh cr. with deposits of ₹1.56 lakh crore. and a loan book of ₹1.2 lakh cr in F21. NPA’s have remained steady for the bank over the past few years with GNPA for Q3FY21 at 3.38% while NNPA ratio stood at 1.14%. PCR at the end of Q3FY21 stood at ~67% which we believe is adequate. Restructuring book is expected to be at ₹1,500-1,600 crore out of which ₹1,067 crore has already been restructured. This is against earlier expectations of total restructuring of ₹3,000-3,500 crore.
EKI Energy, had reported a net profit of ₹4.51 crore during 2019-20, a company statement said. Amid the ever increasing global awareness of the impact of carbon emissions coupled with initiatives to reduce all greenhouse gas emissions, the company reported robust performance across all business verticals, the company said adding that its total revenue for fiscal 2020-21 stood at ₹191.01 crore, as against ₹65.98 crore in the year-ago period.
Paytm calls an extraordinary general meeting on July 12. The IPO bound payments processor told shareholders it is eyeing ₹12,000 crore fundraise via fresh share issue, CNBC TV18 reported.
Escorts is a prominent tractor player domestically with market share of 11.3% as on FY21. Considering record food-grain procurement by government agencies as well expectations of good Kharif crop in 2021, we expect the tractor industry will continue to outperform the larger automobile space in FY22 with Escorts being a key beneficiary.
Tata Motors and Tata Power on Friday announced the inauguration of India’s largest Solar Carport in Pune, that is estimated to reduce 7,000 tons of carbon emissions annually. The 6.2 MWp solar carport deployed by Tata Power will generate 86.4 lakh kWh of electricity per year and is estimated to reduce 7,000 tons of carbon emissions annually and 1.6 lakh tons over its lifecycle, a regulatory filing said. "In line with Tata Group’s philosophy to promote green manufacturing, Tata Motors and Tata Power jointly inaugurated India’s largest grid-synchronized, behind-the-meter solar carport at the Tata Motors car plant in Chikhali, Pune," it added.
As consumer price index (CPI) inflation crossed the upper end of the target of 6% in May for the first time in the last five months, RBI’s inflation outlook of 5.1% for the current fiscal looks an underestimate, going by the prevailing price conditions, Brickwork Ratings said in a note. “There is a likelihood of the Q1FY22 inflation breaching the RBI’s projections of 5.2% at a substantial gap if the June inflation stays beyond 6%. Moreover, it remains to be seen for how long the MPC will continue with the accommodative monetary policy stance," it said. (Read here)
For all the talk of a commodities boom, some markets have now wiped out gains for the year and several more are close to doing so.
Soybean futures in Chicago bounced more than 2% on Friday, but are still heading for a weekly loss of more than 11%, the worst performance in seven years. Corn and wheat also recovered a small part of Thursday’s declines.
Base metals were mixed following losses on Thursday. Copper fell 0.6% on the London Metal Exchange and headed for its biggest weekly loss since March 2020. Nickel rose 1%. Iron ore slid 0.3% in Singapore.
Precious metals rebounded, after substantial declines. Gold added 0.6%, though is still headed for its worst week in more than a year. Palladium rose 1.2% after Thursday’s 11% slump.
Chinese futures caught up with the overnight rout. Rapeseed and soybean oil slid, and copper and zinc dropped. (Read here)
Ashok Leyland Ltd (ALL) is one of the leading player in India CV industry with a 32% market share in the MHCV segment. The company also has a strong presence in the fast growing LCV segment. Demand for MHCV was adversely impacted post peaking out due to multiple factors including changes in axel norms, increase in prices due to implementation of BS 6 norms followed by sharp drop in demand due the ongoing Covid-19 crisis. While demand for the LCV segment has been growing smartly post the pandemic, demand for the MHCV segment has also started to recover over the past few months before the 2nd lockdown. We believe that the company is ideally placed to capture the growth revival in the CV segment and will be the biggest beneficiary of the Government’s voluntary scrappage policy and hence rate the stock a BUY.
Reliance Jio continues to maintain leadership in 4G segment with 20.7 megabit per second average download speed, while Vodafone Idea topped the chart in upload segment with 6.7 mbps data speed in May, according to the latest data published by the telecom regulator Trai. Reliance Jio 4G network speed marginally increased but it was more than three times higher than that of the nearest competitor Vodafone Idea, which showed an average download speed of 6.3 mbps.
Krafton Inc., the company behind hit mobile game PlayerUnknown’s Battlegrounds, filed to raise as much as 5.6 trillion won ($5 billion) in a South Korean initial public offering that’s likely to be the country’s largest ever.
The gaming company will sell more than 10 million shares at 458,000 won to 557,000 won apiece, Pangyo-based Krafton said in a filing Wednesday. The top of the range exceeded general market expectations and would grant Krafton a market capitalization of 28 trillion won, based on the number of common shares. Krafton plans to finalize the price July 9 and list on July 22
Vodafone Idea is eyeing a ₹5,000-7,000 crore fundraise via QIPs, Redbox India said in a tweet. The telco may received the Department of Telecom’s nod for the fundraise in 1-2 days.
“The way NIFTY MIDCAP 50 index is struggling around the crucial juncture, it does not bode well for the bulls. Moreover, the BANKNIFTY is now standing at the cusp of a breakdown from the ‘Rising Wedge’ pattern on the daily chart. Further aberration in this space would lead to extended correction in our markets and in this process, we will not be surprised to see Nifty sliding below the sacrosanct support of 15,600.
As far as Nifty is concerned, 15,720 – 15,800 is to be seen as strong resistance zone; whereas on the lower side, a move below 15,600 opens up the downside towards the next important support zone of 15,450 – 15,350. Traders are advised to stay light and even if one wants to take stock specific longs, better not to carry leveraged positions overnight."
Tata Digital Ltd, the company that houses the Tata group’s digital assets, is eyeing a stake in neobanking as part of its superapp designs, accordiong to media reports. Last week, Tata Digital said it is set to acquire a majority stake in online pharmacy 1mg Technologies Pvt. Ltd.
SBI was trading at 992.60 apiece, down 5.54% at 10:48 am. US private equity fund CA Rover Holdings, an affiliate of Carlyle Asia Partners, is reportedly looking to sell 5.1% stake in SBI Cards and Payment Services worth $682 million ( ₹5,000 crore) through a block deal on Friday.
"The markets tried keeping above the 15,700 level but failed to do so which goes to prove that this zone which was a good support is now a resistance for the Nifty. The current trend needs to be re-evaluated next week to come to a conclusion on whether the short term positive trend has ebbed or is this just a breather."
The rupee opened at 74.10 per dollar on Friday against previous close of 74.08. This is the lowest oopening for the rupee in two months.
Gold and silver prices edged higher in Indian markets after a steep fall in the previous session. Gold futures on MCX were up 0.33% to ₹47,112 per 10 gram, following a ₹1,500 plunge in the previous session. Silver futures were up 1% to ₹68,330 per kg after a ₹3,800 fall on Thursday. Prices of precious metals, including gold and silver, took a big knock after the US Federal Reserve's earlier-than-expected signal on rate hikes lifted US dollar. MCX gold faces resistance at ₹48,150 while support is seen at ₹47,050, say analysts.
The Sensex opened at 52,568.07, up 244.74 points, or 0.47%, while the Nifty was at 15,756.50, up 65.10 points or 0.41%. IT, realty top gainers. On the 30-share Sensex, PowerGrid, HDFC, SBI, and 22 other stocks opened in green, while Titian, Bajaj Auto, ONGC, M&M, and Nestlé India opened in red on Friday.
The Sensex was at 52,546.15, up 222.82 points, or 0.43%, while the Nifty was at 15,691.40, down 76.15 points, or 0.48% during pre-market opening.
Religare Enterprises is eyeing an IPO to raise ₹2,000 crore for its health insurance unit Care Health Insurance, according to media reports.
Bank of America Corp. expects all of its vaccinated employees to return to the office after Labor Day in early September, and will then focus on developing plans for returning unvaccinated workers to its sites. More than 70,000 of the firm’s employees have voluntarily disclosed their vaccine status to the bank, Chief Executive Officer Brian Moynihan said in a Bloomberg Television interview Thursday. The firm, which has more than 210,000 employees globally, has already invited those who have received their shots to begin returning.
US private equity fund CA Rover Holdings, an affiliate of Carlyle Asia Partners, is looking to sell 5.1% stake in SBI Cards and Payment Services worth $682 million ( ₹5,000 crore) through a block deal on Friday.
Markets are likely to be volatile on Friday while trends in SGX Nifty suggest a mildly positive opening of Indian benchmark indices. On Thursday, the BSE Sensex ended at 52,323.33, down 178.65 points or 0.34% and the Nifty was at 15,691.40 down 76.15 points or 0.48%. (Read here)
DHFL, HDFC Bank, Jet Airways, Kotak Mahindra Bank, among other stocks could be in the news today. (Read here)
The Ghaziabad Police on Thursday sent a legal notice to the Managing Director of Twitter India over a viral video of an elderly man in Loni being assaulted with the intent of "provoking communal unrest". The MD has been asked to come to the Police Station Loni Border and record the statement within 7 days, according to news agency ANI. (Read here)
After remaining steady for a day, fuel prices were hiked for the tenth time this month on Friday, breaching all records.
In the national capital, petrol got costlier by 27 paise, while diesel rose by 28 paise, according to price notification by the oil retailers.
The latest revision took the cost of petrol in Delhi to ₹96.93 per litre while diesel is currently retailing at 87.69. In Mumbai, petrol is being sold at ₹103.08 per litre, whereas diesel has reached ₹95.14 per litre.
In addition to this, Bengaluru joined the list of state capitals where auto fuel has crossed the ₹100-mark. A litre of petrol is now costing Bengalureans ₹100.17 and diesel ₹92.97. (Read here)
The price band for India Pesticides Ltd’s initial public offering (IPO) has been fixed at ₹290-296 a share. The issue will open on 23 June and close on 25 June.
The IPO aims to raise ₹800 crore which comprises a fresh issue of ₹100 crore and an offer for sale (OFS) of ₹281.40 crore by Anand Swarup Agrawal and ₹418.60 crore by other shareholders and promoters. (Read here)
Asian stocks drifted Friday after a rally in US technology shares and Treasuries, as investors unwound some of this year’s dominant reflation trades. The dollar pared gains and commodities steadied after overnight losses.
Equities climbed in Hong Kong and Australia, and were little changed in Japan and South Korea. In China, shares fluctuated after US regulators proposed a ban on products from Huawei Technologies Co. and four other Chinese electronics companies.
S&P 500 futures rose 0.2% as of 10:50 a.m. in Tokyo. The S&P 500 ended the session roughly flat
Nasdaq 100 futures gained 0.3%. The Nasdaq 100 rose 1.3%
Japan’s Topix index slipped 0.2%
South Korea’s Kospi index was flat
Australia’s S&P/ASX 200 Index gained 0.5%
Hang Seng Index rose 0.8%
Shanghai Composite Index was little changedAsian stocksa drift
Wall Street was broadly under pressure on hawkish signals from the US Federal Reserve, even as US technology stocks notched gains.
The US dollar hit a two-month high and long-dated Treasury yields whipsawed, tumbling after initially spiking on Wednesday's surprise move from the Fed to raise interest rates at a much faster pace than expected. The Dow Jones Industrial Average closed lower for a fourth straight session, down 0.62%, as the S&P 500 slipped 0.04%.
The tech-heavy Nasdaq Composite neared its lifetime peak hit on 29 April, before closing up 0.87% as investors bet the economic recovery would boost demand.
Shares of Apple Inc, Microsoft Corp, Amazon.com Inc and Facebook Inc all shrugged off pre-market losses.
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