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PremiumA tough talk from a Fed official hinting that they will maintain a hawkish stance against inflation put a drag on the market. Tokyo, Shanghai and Hong Kong ended in the red. However, Europe was trading her in the morning session.
Indian benchmark indices stayed in the red territory for most of the day but made a late run to regain most of the losses and end with minor losses. Global negative cues kept the investors demotivated in today's session.
Sensex shed 87 points and closed at 61,663. Meanwhile, Nifty ended the week at 16,307, dropping 36 points on Friday.
Most of the sectoral indices ended in the red with Auto, Pharma and Oil & Gas tanking the most. Only the PSU Bank index closed in green gaining 1%.
Among stocks, M&M tanked by 2.5% followed by Bajaj Auto and NTPC, each of them shedding more than 1.5%. HCL Tech, Asian Paints and HUL were among the stocks that gained in today's session.
Asian stocks bore the brunt of tough talk by the US Fed which confirmed the central bank's stance on future rate hikes. Most of the market fell on Friday.
Japan's Nikkei share average closed lower on Friday hurt by declines in growth shares amid higher long-term bond yields, sending the benchmark to its first weekly loss in four. The Nikkei ended 0.11% lower. For the week, the index lost about 1.29%.
China and Hong Kong stocks closed down on Friday tracking the cautious mood in regional markets amid concerns about domestic COVID-19 outbreaks.
The blue-chip CSI 300 Index fell 0.5% at the close, while the Shanghai Composite Index declined 0.6%. Hong Kong's Hang Seng Index and the Hang Seng China Enterprises Index both slipped 0.3%.
European shares opened higher on Friday after two straight days of declines as investors snapped up beaten-down miners, though gains were limited. The pan-European STOXX 600 index rose in the morning session.
Federal Bank on Friday said it has tied up with JCB India to finance the prospective buyers of heavy construction equipment and boost its loan portfolio.
The private sector lender said it has inked a memorandum of understanding (MOU) with JCB India, a leading manufacturer of earthmoving and construction equipment.
This arrangement will boost the financing options for JCB's customers in India, Federal Bank said in a release.
Under the arrangement, Federal Bank is the preferred finance partner of the construction equipment manufacturer, where JCB's customers can avail loans from the lender at competitive interest rates. (PTI)
Eicher Motors Ltd on Friday said it has appointed Vidhya Srinivasan as the company's Chief Financial Officer.
Prior to joining the company, she was with Bata India Ltd as Director-Finance and Chief Financial Officer, Eicher Motor said in a regulatory filing.
Her appointment is with effect from November 18, 2022, it added.
A qualified Chartered Accountant, she has over 24 years of experience in finance, strategy, business planning, and legal and commercial functions. (PTI)
Sun Pharmaceutical Industries on Friday said it has received approval from the US health regulator for SEZABY, a formulation used for the treatment of neonatal seizures.
SEZABY is a benzyl alcohol-free and propylene glycol-free formulation of phenobarbital sodium powder for injection.
It was granted orphan drug designation by the US Food and Drug Administration (USFDA) for the treatment of neonatal seizures, Sun Pharma said in a regulatory filing.
Orphan drug designation is granted by the USFDA to a medicine intended to treat a condition affecting fewer than 2 lakh persons in the US, or which will not be profitable within seven years following its approval. (PTI)
Rama Steel Tubes on Friday announced that its board in its meeting has approved the bonus issue of the equity shares of the company and will issue four shares for every 1 share held. Shares of Rama Steel Tubes slipped from higher and were trading 0.5% lower at ₹174 apiece on the BSE in afternoon deals.d (Read More)
Indian and European regulators are clashing over whether to broaden oversight of securities settlement, a dispute that risks disrupting operations of BNP Paribas SA to HSBC Holdings Plc, or at the least bump up their costs.
The potential damage stems from the European Securities and Markets Authority’s move to withdraw recognition -- effective May 2023 -- to six Indian central counterparties after the Reserve Bank of India resisted ESMA’s request to be allowed to join the RBI in overseeing Indian transactions.
Recent changes in European Market Infrastructure Regulation demanded that ESMA must establish cooperation arrangements with countries that has their own central counterparties. A key clause was exchange of information, “including access to all information requested by ESMA." The authorities also wanted countries to “develop and submit to the commission for endorsement draft regulatory technical standards" related to the class of derivatives. (PTI)
Leading construction machinery major Tata Hitachi was aiming at 15-20 per cent rise in revenue in the current fiscal, a top company official said.
The company had clocked a revenue of close to ₹4,000 crore during FY'22.
"The growth in volume terms will be around 10-12 per cent, while value growth is likely to be close to 15-20 per cent as the demand growth was more from the high-value mining equipment," Tata Hitachi managing director Sandeep Singh said on the sidelines of CII organised IMME 2022 here on Thursday.
Demand from the infrastructure sector was growing at around 12-15 per cent, while the growth from the mining sector was close to 20-25 per cent. (PTI)
Digital currencies need more regulation to stamp out funding for terror operations, India's Prime Minister Narendra Modi said Friday at a major international forum to combat financing of extremist groups.
India has laboured to rein in cryptocurrency transactions after years of phenomenal growth, backed by burgeoning local trading platforms and glitzy celebrity endorsements.
Modi last year said that bitcoin presented a risk to younger generations and could "spoil our youth" if it ended up "in the wrong hands".
On Friday, he went further and told delegates at the Conference on Countering Financing of Terrorism that "private currencies" posed a grave security risk. (AFP)
The board of directors of Windlas Biotech Ltd has approved and declared a buyback of shares after around one year of its listing on the BSE and NSE exchanges. The company board approved the buyback of shares for an amount not exceeding ₹25 crore. The pharma company board announced a buyback price not exceeding ₹325 per share. Buyback of shares will be done from the open market. (Read More)
Indian farmers have planted wheat on 10.1 million hectares since Oct. 1, when the current sowing season began, up nearly 15% from a year ago, the latest data from the farm ministry showed on Friday.
Farmers have also increased area under rapeseed, the key winter-sown oilseed, to 6.3 million hectares as of Nov. 18, up from last year's 5.5 million hectares, the Ministry of Agriculture & Farmers' Welfare said in a statement. (Reuters)
Despite mutual funds raising their shareholding in Sun Pharmaceutical Industries during July to September 2022 quarter, Life Insurance Corporation (LIC) of India has cut down its stake in the large-cap pharma stock during the second quarter of the current financial year. As per the shareholding pattern of Sun Pharmaceutical Industries Ltd for July to September 2022 quarter, LIC has trimmed its stake in the company from 5.49 per cent to 4.38 per cent. Mutual funds raised their stake in Sun Pharmaceutical Industries from 11.84 per cent to 12.22 per cent during Q2FY23. (Read More)
The maximum tenure of CEO and MD of public sector banks has been increased to 10 years, a move that will help the government retain the best talent in the banking sector.
As per a government notification dated November 17, 2022, the term for the appointment has been extended to 10 years, from the earlier 5 years, subject to superannuation age of 60 years.
Earlier, the MD or executive director of a public sector undertaking (PSU) bank was eligible for a maximum tenure of 5 years or 60 years whichever was earlier. This is also applicable for whole-time directors of all Central Public Sector Enterprises (CPSEs).
"A whole-time director, including the managing director, shall devote his whole time to the affairs of the nationalised bank and shall hold office for such initial term not exceeding five years and extendable up to a total period, including the initial term, not exceeding 10 years, as the central government may, after consultation with the Reserve Bank, specify and shall be eligible for re-appointment," it said. (PTI)
India launched its first privately developed rocket, the Vikram-S, on Friday, a milestone in the country's effort to create a commercial space industry.
The 545-kg rocket developed by space startup Skyroot took off from the Indian space agency's launch site near Chennai.
The rocket has the capability of reaching Mach 5 - five times the speed of sound - and carrying a payload of 83 kg to 100 kilometers.
Video footage showed the rocket taking off from the space centre, leaving a plume of smoke and fire in its trail. (Reuters)
Shares of TCPL Packaging Ltd rose more than 17% to hit a record high of ₹1,696 apiece on the BSE in Friday's early trading session. The stock has been in an upward momentum since the last few sessions as it has rallied more than 32% in a month.
Commenting on the performance for Q2 & H1 FY2023 Saket Kanoria, Managing Director, TCPL Packaging Limited said “TCPL has shown solid resilience and achieved yet another quarter of strong performance amidst a challenging operating environment. Our consolidated revenues grew by 43% Y-o-Y on the back of higher volumes and better realizations. In addition, we witnessed stability in our key raw materials, which enabled us to register robust profitability during the quarter. EBITDA improved by 60% Y-o-Y to Rs. 57.5 crore in Q2, translating into healthy margins of 16%." (Read More)
Most indices are trading in the red with only PSU Bank trading in the green
The finalisation of the basis of share allotment of Five Star Business Finance's initial public offering (IPO) has been done this week and now all eyes are on the listing of the company's shares which is expected to happen next week.
As per market observers, Five Star Business Finance shares are commanding a premium (GMP) of minus 2 in the grey market today. The shares of the company are expected to list on the leading stock exchanges BSE and NSE next week on Monday, November 21, 2022. (Read More)
Axis Securities recommendation on Star Cement after quarterly results: BUY with Target Price at ₹115
Encouraging Volume Growth; Outlook Remains Positive
Cement demand is expected to be robust both in North-East and East regions driving the volume growth for the company. It is setting up a 2 Mn tonne grinding unit each in Assam, its largest market in terms of cement consumption, which will enable the company to capture incremental demand coming out of various infra and housing projects from this region. Its Siliguri grinding unit is ramping up well and higher capacity utilization of the unit will help the company in improving its fixed cost absorption and will also aid in its volume growth moving ahead. With better cement demand, higher pricing and stabilization of the Siliguri Grinding unit, and cost optimization measures(12mw WHRS plant) undertaken by the company, we foresee Star Cement reporting decent performance moving forward. The stock is currently trading at 9x FY23E and 8x FY24E EV/EBITDA. We retain our BUY rating on the stock and value the company at 9x FY24E EV/EBITDA to arrive at a TP of ₹115/share, implying an upside of 13% from the CMP (taking into consideration the impact of higher tax)
The Indian rupee was little changed on Friday as the benefit from a plunge in oil prices was countered by continued corporate demand for the dollar.
The rupee was at 81.6650 per dollar, against its previous close of 81.65. The currency has declined 1% in volatile trade so far this week, giving back half its gains from last week in the wake of slightly soft U.S. inflation data.
There is persistent demand for dollars from oil importers and other corporates, said foreign exchange traders.
"Any dips in USD/INR are being bought out this week," said Ritesh Agarwal, head of treasury at CTBC Bank. (Reuters)
Paytm shares are oscillating around its life-time lows that has attracted bottom-finishing interest by some foreign institutional investors. Bank of America (BofA) Securities and Morgan Stanley Asia Singapore and Societe Generale are one of them. As per the NSE bulk deals, Morgan Stanley Asia Singapore has bought 60,03,468 Paytm shares whereas BofA Securities and Societe Generale bought 50,26,428 and 70,85,227 Paytm shares respectively. However, SVF India Holdings (Cayman) sold out its 2,93,50,000 Paytm shares. All these buying and selling of Paytm shares were executed through bulk deal on 17th November 2022. (Read More)
Securities and Exchange Board of India (SEBI) on Thursday notified new rules for asset management companies (AMCs) pertaining to transfer of dividend and redemption proceeds to mutual fund unitholders, in which, every mutual fund and asset management company would be required to transfer to the unitholders the dividend payments and the redemption or repurchase proceeds within a period specified by the regulator.
"Notwithstanding payment of such interest to the unit-holders...the asset management company may be liable for action for failure to transfer the redemption or repurchase proceeds or dividend payments within the stipulated time," Sebi said in the circular notified on Thursday. (Read More)
Medanta shares have attracted a good response from FIIs and DIIs after a decent listing on 16th November 2022. After listing at around 19 per cent premium, global investment agency Nomura India Investment Fund and domestic institutional investor Motilal Oswal Mutual Fund have bought a stake in Global Health shares. As per the NSE bulk deals, Nomura India Investment Fund bought 15 lakh Medanta shares on 16th November through a bulk deal paying ₹414.57 apiece. This means the global investment agency invested ₹62,18,55,000 or over ₹62 crore in this recently listed stock.
After the strong response from FIIs and DIIs, stock market experts have upgraded Medanta's share price target to ₹550 in the next two years. (Read More)
Tirthankar Das, technical & derivative analyst, retail, Ashika Stock Broking Ltd: On the technical front, Nifty formed yet another indecisive candle resembling closer to a Doji kind of pattern on the daily charts. Two back-to-back Doji candle implies of an upcoming consolidation/weakness in the market which seems rational considering the sharp rally of almost 1700 points in last one month. Nifty since the past few days of trading session has led the Index to breach past the falling trend line which confirms that the primary trend is up and is well placed to accelerate the upward momentum hereon. Now the elevated support level for the market now stands at 17950 followed by 17500 as it happens to be the 50 days EMA and the breakout point from the 12 months falling trend line. The momentum indicator RSI (relative strength index) is presently at 68 slightly closer to overbought situation which further reinstates of an upcoming consolidation in the market, however present setup signifies that Nifty is on the path to challenge the all-time high of 18600 in coming sessions followed by 18900 in near term. During the day, Nifty is likely to open on a negative note amid negative global cues though the positive momentum in the Index is likely to withstand thus lower levels of 18300-18340 need to be utilized for initiating long position for an upside target of 18600.
Asia’s richest person, Gautam Adani, is considering setting up a family office overseas to manage his ballooning wealth, according to people familiar with the discussions.
The chairman of the ports-to-power Adani Group conglomerate is looking at Dubai or New York as the base for the office, which will invest the Adani family’s personal funds, the people said, asking not to be identified because the matter is private. The group’s founders are in the process of hiring a full suite of specialized family office managers, one of the people said.
The move comes amid a $58 billion surge in Adani’s personal wealth this year -- the most among the world’s richest people, according to the Bloomberg Billionaires Index. It also reflects the tycoon and his family’s increasingly global ambitions, as the Adani Group makes significant overseas acquisitions beyond its traditional stronghold in India. (Bloomberg)
Dr V K Vijayakumar, chief investment strategist at Geojit Financial Services: "There are no major global or domestic triggers that can move the markets decisively as of now. Therefore, the market is likely to meander around the current levels. 18400 Nifty is acting as a resistance level. For the Nifty to move up to and beyond record highs some strong triggers are necessary and that is not happening. Also, there is no trigger to push the market decisively into sharp correction territory. The texture of the market continues to be Buy on Dips.
A significant trend in the market now is the bloodbath in the new-age digital companies triggered by the end of the lock-in period for initial institutional investors. Some of these stocks may turn out to be big wealth creators in the long run. Long-term investors with high risk appetite may consider nibbling at some of these stocks now available at huge discounts to their IPO price."
India's overall oilmeal exports so far during the current financial year - April to October - were 38% higher year-on-year at around 1.97 million tonnes, data compiled by vegetable oil industry body The Solvent Extractors' Association of India (SEA) showed.
During the same period last fiscal, the export of oil meals was at 1.43 million tonnes.
Oilmeals are basically the residue left over after the extraction of oil from oilseeds, and they are widely used as livestock feed.
In the month of October, exports of the commodity were provisionally reported to be at 213,154 tonnes compared to 157,590 tonnes the same month last year, up by 35%. (ANI)
The finalisation of the basis of share allotment for Archean Chemical's initial public offering (IPO) has been done this week and all eyes are now on the company's shares listing which is expected to be next week. The public issue was subscribed 32.23 times by the close of the subscription period last week on Friday, November 11, 2022. (Read More)
The domestic jewellery industry, which recorded healthy sales during the festival period, is expected to witness 12 per cent growth during this financial year compared to the previous fiscal, according to a report.
The domestic jewellery industry is estimated to have registered a healthy growth of 60 per cent in the second quarter of FY23 as against pre-Covid levels (Q2 FY20), which exceeded Icra's expectations of an 8 per cent YoY contraction and was driven by urban demand recovery following range-bound prices.
However, on a Year-on-Year (YoY) basis, the demand recorded a contraction of 2 per cent in the quarter owing to a high base in the second quarter of FY22, which had grown by 70 per cent YoY, due to pent-up demand after the lifting of the pandemic-induced restrictions last year, the Icra report said. (PTI)
A clause allowing patent evergreening in the India-UK free trade agreement will harm India’s generics industry and the UK’s healthcare service that is dependent on Indian drugs, The Lancet warned, prompting the UK to declare the future of its health service is “not on the table".
Controversy ballooned after a leaked draft intellectual property chapter of the FTA was said to include a clause that would allow British pharma companies to ‘evergreen’ their drug patents. Evergreening is the practice of companies filing for patent extensions by making minor changes to their drugs just before the patent expires at 20 years. (Read More)
Cryptocurrency prices today rose as the world's largest and most popular digital token Bitcoin's was trading nearly 2% higher at $16,947. The global crypto market cap today remained below the $1 trillion mark, even as it was almost flat in the last 24 hours to $873 billion, as per CoinGecko.
On the other hand, Ether, the coin linked to the ethereum blockchain and the second largest cryptocurrency, also plunged by more than a per cent to $1,227. (Read More)
STOCK IN FOCUS
ABB India (CMP 3,122)
In view of strong capex uptick, high earnings growth and backing by ABB global, we have our BUY rating with a Target Price of Rs3,500
Intraday Picks
INDHOTEL (PREVIOUS CLOSE: 316) BUY
For today’s trade, long position can be initiated in the range of Rs314-311 for the target of Rs327 with a strict stop loss of Rs303.
DABUR (PREVIOUS CLOSE: 552) BUY
For today’s trade, long position can be initiated in the range of Rs548- 545 for the target of Rs562 with a strict stop loss of Rs541.
TRENT (PREVIOUS CLOSE: 1,397) BUY
For today’s trade, long position can be initiated in the range of Rs1,387- 1,377 for the target of Rs1,435 with a strict stop loss of Rs1,349.
NSE will continue to keep Balrampur Chini, Bhel, Delta Corp, Gujarat Narmada Valley Fertilizers and Chemicals, Indiabulls Housing Finance, and Sun TV stocks on the list of banned securities under the F&O segment for Friday trading as they have crossed 95% of the market-wide position limit. (Read More)
Shares of Agarwal Industrial Corporation Ltd are one of those stocks that has given strong return to its investors who believed in bottom finishing during Covid-fueled market sell off. This Ashish Kacholia-backed stock has surged from around ₹49 to ₹620 apiece levels in post-Covid market rebound, delivering more than 1150 per cent return to its shareholders in this near three years.
This Ashish Kacholia portfolio stock has remained under base building mode for last six months. However, in year-to-date (YTD) time, this Ashish Kacholia-owned stock has risen from around ₹400 to ₹620 apiece levels, delivering more than 50 per cent return to its investors. (Read More)
In a relief to exporters, the commerce ministry has directed the field formations to reduce average export obligations for sectors that have registered more than 5 per cent decline in shipments during 2021-22.
A total of 192 product groups registered a decline of more than 5 per cent in exports in 2021-22 compared to 2020-21 and that includes certain ores, gold, yarn, ground nut oil and cheese and curd.
"The sector/product group that witnessed such decline in 2021-22 as compared to 2020-21 would be entitled for such relief," the Directorate General of Foreign Trade (DGFT) said in a public notice. (PTI)
Gold prices fell by ₹161 to ₹53,235 per 10 grams in the national capital on Thursday amid weak global trends, according to HDFC Securities.
In the previous trade, the precious metal had settled at ₹53,396 per 10 grams.
Silver also tumbled by ₹1,111 to ₹61,958 per kg.
"Gold inched lower, as safe-haven demand from latest geopolitical concerns faded, while hopes that the US Federal Reserve would be less aggressive on rate hikes over coming months underpinned the market," said Navneet Damani, Senior VP – Commodity Research at Motilal Oswal Financial Services.
E-commerce platforms sold goods worth ₹76,000 crore during the festive season sale in October, registering about 25 per cent year-on-year growth, market research firm Redseer Strategy Consultants said on Thursday.
While Redseer did not disclose the performance of various platforms, the firm's Partner Ujjawal Chaudhry said that the overall performance of the e-commerce companies was in line with the findings of the company for the first week of the festive sale which was led by Flipkart in terms of total sales.
"We predicted about ₹83,000 crore but at the end it reached to ₹76,000 crore GMV (gross merchandise value) which is 8-9 per cent lower than our initial prediction. However, the number of ₹76,000 crore itself is reasonably high. The growth perspective we have seen is 25 per cent year-on-year growth which is pretty healthy," Chaudhry said. (PTI)
Debt-ridden Future Enterprises Ltd (FEL) on Thursday said it has defaulted on payment of interest on non-convertible debentures of ₹1.07 crore.
"The company is unable to service its obligations in respect of the interest on Non-Convertible Debentures was due on November 16, 2022," it said in a regulatory filing.
The debentures have a coupon rate of 9.28 per cent and FEL has defaulted on interest payments for the period from May 17, 2022, to November 15, 2022.
The total amount of securities issued was ₹23 crore and a default has occurred on this gross principal amount. (PTI)
Amazon.com Inc. Chief Executive Officer Andy Jassy has made his first comments about the job cuts which began this week. There were reports that the company plans to wipe out about 10,000 jobs.
CEO Jassy said the e-commerce giant will be cutting jobs into 2023 as it adjusts to business conditions.
“This year’s review is more difficult due to the fact that the economy remains in a challenging spot and we’ve hired rapidly the last several years." (Read More)
Oil was poised for a weekly loss of almost 8% as concerns over a worsening demand outlook filtered through the crude market.
Demand for winter-delivery crude cargoes has slipped from Singapore to Houston, while the forward curve for both major benchmarks has weakened in a sign that supplies are more ample. West Texas Intermediate edged higher above $82 a barrel on Friday, but futures are down for a second week.
Oil is trading near the lowest level since September as concerns over China’s swelling Covid cases and aggressive monetary tightening from major central banks weigh on the demand outlook. Federal Reserve officials reiterated their resolve to continue raising interest rates to tame rampant inflation. (Bloomberg)
Vaishali Parekh has recommended two Tata group stocks to buy today. Here we list out full details in regard to those day trading stocks:
1] Tata Consumer Products: Buy at ₹786, target ₹808, stop loss ₹773; and
2] Indian Hotels Company: Buy at ₹315, target ₹327, stop loss ₹311. (Read More)
The finalisation of share allocation can be announced any time today for the initial public offering (IPO) worth ₹740 crore. As per the tentative Inox Green Energy IPO schedule, most likely Inox Green Energy IPO allotment date is 18th November 2022 i.e. today. So, bidders are advised to check Inox Green Energy IPO allotment status online by logging in at the BSE website or at the website of official registrar. Link Intime India Private Ltd has been appointed as official registrar of the public issue, which is proposed for listing on BSE and NSE. Meanwhile, after trading in discount for last two days, shares of Inox Green Energy Ltd are available at a premium of ₹2 in grey market today. (Read More)
