Sensex ends below 57,200, Nifty sheds 300 pts; Metal, Auto, Realty tumble

Benchmark indices slipped for the fifth day in trot as they lost around 1.7% in value on Monday. The rupee went below 81.50 against the dollar during Monday's trading.

Sensex shed 950 points to close at 57,145 while Nifty ended at 17,016, a drop of 311 points.

Nearly all indices except IT remained in trouble throughout the session with Metal, Auto, PSU Bank, Oil & Gas and Realty shedding the most. IT ended in the green territory.

Among stocks, HCL Tech, Infosys and Asian Paints gained more than a per cent in today's session. Adani Ports shed 6%, while Tata Motors, Hindalco and Maruti lost more than 5%.

Most Asian indices closed in the red on Monday as traders witnessed the collapse of the British pound and heightened recession fears.

Japanese stocks closed lower as investors returned after a long weekend to markets that were dented by Japanese authorities' currency intervention.

The Nikkei dropped 2.66%. The index has now fallen for three straight days and is down more than 5% since the beginning of last week.

European markets except for Italy were also trading lower with the continent-wide STOXX 600 index being down. Sterling slumped to a record low on Monday.

Italian shares jumped nearly 1% after the right-wing coalition led by Georgia Meloni looked set to win the country's general election.

Apple Inc. will make its latest iPhone 14 in India, the company said on Monday, as manufacturers shift production from China amid geopolitical tensions and pandemic restrictions that have disrupted supply chains for many industries.

“The new iPhone 14 lineup introduces groundbreaking new technologies and important safety capabilities. We’re excited to be manufacturing iPhone 14 in India,” Apple said in a statement.

Apple unveiled its latest line-up of iPhones earlier this month. They will have improved cameras, faster processors and longer lasting batteries at the same prices as last year’s models.

India is the world’s second-largest smartphone market after China but Apple iPhone sales have struggled to capture a large share of the market against cheaper smartphones from competitors. (AP)

Global economic growth is slowing more than was forecast a few months ago in the wake of Russia's invasion of Ukraine, as energy and inflation crises risk snowballing into recessions in major economies, the OECD said on Monday.

While global growth this year was still expected at 3.0%, it is now projected to slow to 2.2% in 2023, revised down from a forecast in June of 2.8%, the Organisation for Economic Cooperation and Development said.

The Paris-based policy forum was particularly pessimistic about the outlook in Europe - the most directly exposed economy to the fallout from Russia's war in Ukraine.

Global output next year is now projected to be $2.8 trillion lower than what the OECD forecast before Russia attacked Ukraine - a loss of income worldwide equivalent in size to the French economy. (Reuters)

The stock had shed 6% in the morning trade.

Gateway Partners is planning to invest over USD 1 billion in the next five to 10 years in the booming Indian economy, according to a top company official.

It has already invested over USD 250 million in several Indian assets over the past five years.

"Over a billion US dollars over the next five to 10 years," V Shankar, co-founder and CEO of Gateway Partners told PTI on Monday when asked about his investment plans for India at the sideline of the Forbes Global CEO Conference in Singapore.

"We are looking at tonnes of opportunities in India,” said Shankar, adding he was very optimistic about the consumer-driven Indian market.

He also noted that foreign investment flow into India was being encouraged by domestic investments, led by entrepreneurs in the infrastructure-industrial programmes and long-term economic development plans. (PTI)

Neeraj Chadawar, Head - Quantitative Equity Research, Axis Securities: The Indian market performance showed resilience in the last couple of months, outperforming the global market by a superior margin based on the robust economic outlook compared to other emerging markets. After a hawkish US Fed stance, we are observing weakness in the global market on an expectation of a continuation of rate hikes in the remaining two FOMC meetings of 2022. In that context, term performance was likely to be range bound due to a stronger dollar. The Indian currency has performed well, and it has been stable vis-a-vis other emerging market currencies, on account of higher foreign exchange reserve, robust growth outlook, and macroeconomic stability. However, the sharp upward movement in the dollar index has created a weakness in the domestic market. Now the market is eyeing the RBI monetary policy, scheduled this week. We recommend investors avoid riskier bets this week as volatility is likely to continue in the near term. Further, the market is eyeing the upcoming earning season & the festival demand, which will likely drive the market fundamentals. We recommend investors to use this volatility in the coming days in a phased manner to build a position with a view of 12-18 months in quality companies where earnings visibility is very high. In this context, domestic-oriented themes like Banks, FMCG, Hospitals, Domestic Industrials, and Discretionary consumption are well placed over export plus cyclical-oriented themes.

Salaries in India are expected to increase by 10.4% in 2023 as compared to an annual rise of 10.6% to date in 2022, according to a survey conducted by Aon plc. This global professional services firm analyzed data across 1,300 companies from over 40 countries in India.

According to the survey, four out of the five sectors that are expected to have the highest projected salary increase are technology related and experience the highest volatility and impact of current global economic uncertainty. (Read More)

The Bombay High Court on Monday directed the Income Tax department not to take any coercive action against Reliance Group Chairman Anil Ambani till November 17 on a show cause notice issued to him seeking to prosecute him under the Black Money Act. The I-T department had issued the notice to Ambani on August 8, 2022 for allegedly evading ₹420 crore in taxes on undisclosed funds worth more than ₹814 crore held in two Swiss bank accounts. (PTI)

With a market capitalization of Rs. 5,117.85 crore, Greenpanel Industries Ltd. is a mid-cap company that operates in the consumer discretionary industry. The largest producer of wood panels in India is called Greenpanel. High-quality Medium Density Fibreboard (MDF), plywood, decorative veneers, flooring, and doors are manufactured by the company. The company is the largest manufacturer of MDF in Asia and India. In a period of five years, Greenpanel Industries has become one of the multibagger stocks that have made investors lakhpati. (Read More)

Japanese stocks closed lower on Monday as investors returned from a long weekend to markets that were dented by Japanese authorities' currency intervention, the collapse of the British pound, and heightened recession fears.

The Nikkei dropped 2.66% to end at 26,431.55 after slipping as far as 26,424.60, its lowest level since July 14. The index has now fallen for three straight days and is down more than 5% since the beginning of last week.

The broader Topix fell 2.71%. (Reuters)

Nearly 41,000 companies are facing removal from the government’s official records for defaulting on filing annual returns for the past two years, showed latest data from the ministry of corporate affairs.

As on 31 August, the total number of companies that are in the process of getting struck off from the register has touched 40,942, the ministry said in its latest monthly newsletter. This is in addition to 2,455 companies that have so far obtained ‘dormant’ status. (Full Story)

Film exhibition company PVR Cinemas will invest up to ₹350 crore to open 100 new screens in FY23, a top official said on Monday.

It also expects its mega-merger with Inox Leisure to close by February 2023, after which it will start to run as a combined business, PVR's chief executive Gautam Dutta told PTI over the phone.

Pointing to the company's performance in the April-June quarter, he said patrons are coming back to halls to enjoy the cinema experience and the food and beverage sales are also up, which makes it more optimistic about expansion.

"We will invest up to ₹350 crore to open 100 screens in FY23. I see the same trend continuing in the next 2-3 years as well," Dutta said, stressing that the expansion will be a balanced one across geographies. (PTI)

The Nationalist Congress Party (NCP) on Monday asked Union Finance Minister Nirmala Sitharaman to explain why the rupee has fallen to an all-time low against the US dollar. The rupee depreciated 43 paise to an all-time low of 81.52 against the US dollar in early trade on Monday as the strengthening of the American currency and risk-averse sentiment among investors weighed on the local unit. At the interbank foreign exchange, the rupee opened at 81.47 against the greenback, then fell to 81.52, registering a fall of 43 paise over its previous closing. (PTI)

Indian Hotels Co. Ltd may see increased check-ins as the robust demand momentum in leisure travel sustains and the business segment stages a strong recovery.

Indian Hotels’ H2FY23 is likely to be boosted on account of wedding season, corporate meetings and increase in foreign travel led by vacation during Christmas or New Year. (Read More)

Sensex had dropped more than 1000 points and Nifty had gone below 17,000 before making some recovery

Nestle SA plans to invest ₹5,000 crore in India in the next three-and-a-half years by 2025, its CEO Mark Schneider said on Friday.

Swastik Pipe Ltd has fixed the price brand of ₹97 to ₹00 per equity share for its forthcoming public issue on NSE Emerge through the book building route. The issue size comprises issuance of up to 62.52 lakhs equity shares of the face value of ₹10 each fully paid-up shares through the book-building process. The issue will open for bidding on September 29, 2002 (Thursday) and close on October 03, 2022 (Monday). (Full Report)

Public sector firm WAPCOS Ltd has filed preliminary papers with capital markets regulator Sebi to float an Initial Public Offering.

The public issue will be a complete Offer For Sale (OFS) of up to 32,500,000 equity shares by the promoter, Government of India, according to the Draft Red Herring Prospectus (DRHP).

WAPCOS provides consultancy, and engineering, procurement and construction services in the field of water, power and infrastructure sectors. It comes under the Ministry of Jal Shakti.

The company also provides its services abroad, particularly in South Asia and across Africa in the fields of dam and reservoir engineering, irrigation and flood control. (PTI)

IT bellwether TCS hit a 52-week low of ₹2926.10 today breaking the previous low of ₹2953 on July 15. The fall came on strong volumes , with 66% shares (6.8 lakh) of traded quantity resulting in delivery .

India reported around 4,129 new covid cases and 20 deaths in the last 24 hours, the health ministry data stated on Monday.

While Assam has reported 2742 active caseload, Gujarat has contributed 1012 active cases. Karnataka has reported 3182 active cases while Kerala has 13469 active cases. Maharashtra has 3702 active cases, Odisha 1329 cases, Rajasthan with 682 cases, Tamil Nadu has 5395 active cases; Uttarakhand 1077 cases, West Bengal has 3123 active cases so far. (Read More)

China's yuan touched a 28-month low against the dollar on Monday, only steps away from its downside trading limit, despite the central bank taking steps to rein in the currency's weakness. The People's Bank of China (PBOC) said it would raise the foreign exchange risk reserves for financial institutions when purchasing FX through currency forwards to 20% from the current zero, starting on Sept. 28. (Reuters)

Fintech unicorn Razorpay ventured into the offline market with its acquisition of Ezetap last month for $200 million, its biggest so far. In December last year, the company became the most valuable fintech startup in India, with a valuation of $7.5 billion.

We’ll continue to be a B2B operator, and we do not plan to compete with any of the consumer-end fintech operators, Razorpay CEO Harshil Mathur said in an interview. (Full Interview)

The rupee depreciated 43 paise to an all-time low of 81.52 against the US dollar in early trade on Monday as the strengthening of the American currency and risk-averse sentiment among investors weighed on the local unit.

Moreover, escalation of geopolitical risks due to conflict in Ukraine, a negative trend in domestic equities and significant foreign fund outflows sapped the investor appetite, forex traders said.

At the interbank foreign exchange, the rupee opened at 81.47 against the greenback, then fell to 81.52, registering a fall of 43 paise over its previous closing.

On Friday, the rupee slumped 30 paise to close at a fresh lifetime low of 81.09 against the US dollar. (PTI)

Shares of Harsha Engineers International Ltd made a strong debut on Dalal Street today. The stock listed on BSE at ₹444 per equity share, delivering around 36% premium to its allottees. India's largest manufacturer of precision bearing cages company has delivered a stellar return to its investors despite weakness on Dalal Street in the last four straight sessions. (Read More)

Tirthankar Das, technical & derivative analyst, retail, Ashika Stock Broking Ltd.: On the technical front, Nifty ended the week on a negative note extended losses for the second consecutive week in a row, on the daily time frame it ended with a long bearish candle which sums up to a possible reversal in the market. However, on an overall basis the market continues to remain consolidative amidst the broader range of 16900-18000 and one need to recall that secondary corrections are a part of the bull market. Presently a trader needs to show patience and need to avoid trading aggressively in the market as the risk of a bare minimum correction of 38.2% of the entire rally from 15,183 to 18,096 comes around 16990 followed by 50% correction at 16650 remains. During the day index is likely to open with a gap down, tracking weak global cues. Formation of lower high- lower low signifies corrective bias. Hence, use intraday pullback towards 17400-17500 for creating short position for the target of 16900.

Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One Ltd: Technically speaking, the last session of correction has dampened the overall sentiments as the significant support of the unfilled gap got breached decisively, implying strong momentum in the sell-off. The weakness in the global markets and the upcoming key domestic data have put a sense of tentativeness among the market participants. As we have witnessed a decisive breach below the major support zone in Nifty, one should not rule out the possibility of it testing the immediate swing low of 17150 odd zone, while the sacrosanct support lies at the psychological mark of 17000. On the flip side, a series of resistances could be seen starting from 17500 to 17800 in the comparable period.

Considering the recent price action, traders are advised not to carry aggressive overnight bets for a while and should adapt the strategy to follow one step at a time and respect levels on either side. The unfavorable global scenario was one of the major catalysts for the fall last week; hence, one should stay abreast with global developments and the upcoming key domestic macro data.

The Karnataka High Court has stayed the recovery of Goods and Services Tax (GST) demand amounting to nearly ₹21,000 crore and applicable interest and penalty on gaming company Gameskraft Technologies Pvt. Ltd. till the case is decided on merit.

The tax demand comes at a time a ministerial committee set up by the federal indirect tax body, the GST Council, is deliberating over what should be the tax rate for the online gaming sector and what should be the base on which the tax rate should be levied. (Full Story)

Metals and oil conglomerate Vedanta Ltd's proposal to reorganise capital and transfer ₹12,587 crore from general reserves to retained earnings has won the backing of US-based proxy advisory firm Glass Lewis.

Vedanta has convened a meeting of shareholders of the company on October 11 for approval of a scheme of arrangement.

In a notice to shareholders, Vedanta reasoned that the firm had over the years "built up significant reserves through transfer of profits".

"The company is of the view that the funds represented by the general reserves are in excess of the company's anticipated operational and business needs in the foreseeable future, thus, these excess funds can be utilised to create further shareholders' value," it said. (PTI)

Suzlon Energy shares will be under scanner when the stock market opens today as the company board has given its approval to raise ₹1200 crore funds through right issues of company shares. As per the latest exchange filing by the company, the board of directors of the company has given its approval to issue 240 crore equity shares at ₹5 per share price. Suzlon Energy share price had closed at ₹9.15 on NSE on Friday's session, which means the right issue of shares are offered at around a 45 per cent discount. (Read More)

Sterling slumped to a record low on Monday, prompting speculation of an emergency response from the Bank of England, as confidence evaporated in Britain's plan to borrow its way out of trouble, with spooked investors piling in to U.S. dollars.

Broadening worry that high interest rates will hurt growth hit Asia's currencies and equities too, with exporters from Japanese carmakers to Australian miners hit hard.

The pound plunged nearly 5% at one point to $1.0327, breaking below 1985 lows. Moves were exacerbated by thinner liquidity in the Asia session, but even after stumbling back to $1.05 the currency is still down some 7% in just two sessions.

"You've got to buy the dollar as a risk off-trade. There is nowhere else to go," said Rabobank strategist Michael Every in Singapore. (Reuters)

Almost all stocks are in red with IndusInd and Powergrid dropping around 3% each

The department of heavy industries has found that certain electric vehicle (EV) original equipment manufacturers (OEMs) have violated the government’s phased manufacturing plan (PMP), a critical eligibility criteria against which it disburses incentives under the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME-II) scheme, said the secretary of the department Arun Goel.

The department is now implementing a system to introduce traceability in the way manufacturers share records of the domestic value addition (DVA) in their products with the government, Goel said. (Full Story)

STOCK IN FOCUS

Voltas (CMP Rs.901)

Considering the decent earnings growth, higher volume, and improved business visibility over the medium-term, we have our BUY rating on the stock, with a Target Price of Rs1,110.

Intraday Picks

CUMMINSIND (PREVIOUS CLOSE: 1219) SELL

For today’s trade, short position can be initiated in the range of ₹1225-1235 for the target of Rs.1190 with a strict stop loss of ₹1252.

ESCORTS (PREVIOUS CLOSE: 2077) SELL

For today’s trade, short position can be initiated in the range of ₹2085-2100 for the target of Rs. 2060 with a strict stop loss of ₹2120.

GLENMARK (PREVIOUS CLOSE: 385) BUY

For today’s trade, long position can be initiated in the range of ₹380- 382 for the target of Rs.394 with a strict stop loss of ₹377.

Harsha Engineers International will make its debut on the bourses today.

Oil fell again as the dollar’s surge to a fresh peak and mounting recessionary concerns threatened global demand, deepening a rout.

West Texas Intermediate sank toward $78 a barrel as a Bloomberg gauge of the US currency rallied to an all-time high. The US benchmark crude collapsed more than 7% last week to end at the lowest close since mid-January. The decline was its fourth straight weekly drop, the longest losing run this year.

Crude is on track for its first quarterly slump in more than two years as central banks including the Federal Reserve raise interest rates aggressively, hurting the outlook for energy demand and sapping investors’ appetite for risk. The Fed’s tightening has helped to drive the US dollar to a record, making commodities priced in the currency more expensive for overseas buyers. (Bloomberg)

Positional investors who follow FII DII data and scan their latest buying and selling patterns, there is a piece of stock market news for them. Mauritius-based foreign portfolio investor (FPI) Vikasa India Eif 1 Fund has bought a stake in a small-cap company listed on BSE. As per the BSE bulk deal data available on the BSE website, Vikasa India Eif 1 Fund — Incube Global Opportunities has bought 51,000 shares of BSE-listed small-cap company SM Gold. They bought these shares in a bulk deal executed on 23rd September paying ₹40.15 per share. This means the foreign institutional investor (FII) has invested ₹20,47,650 in the small-cap company that ended with a market cap of ₹40 crore on Friday. (Read More)

Ambuja Cements, Delta Corp, Vodafone Idea, Zee Entertainment, Can Fin Homes, and Punjab National Bank will be under the F&O ban list for Monday. 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)

Dr V K Vijayakumar, chief investment strategist at Geojit Financial Services: "The global macro construct is not favourable for equity markets in the short run. The dollar index above 113 and the US 10-year yield at 3.73 % is likely to aggravate FPI outflows which have been gathering momentum during the last 3 days. The probability of a global recession is also increasing since the Fed continues to be ultra hawkish. The 5% cut in MSCI World Index last week indicates the bearish undertone of global equity markets. In this scenario, the buy-on-dips strategy which worked since the June lows need not work now. Investors have to be cautious and remain vigilant.

However, India will outperform both in economic growth and market performance. Therefore, selective buying can be done in domestic economy-facing segments like financials, autos, capital goods and select FMCG on sharp market declines."

The Nifty could test its support of 17,166 at the opening, derivatives trade on SGX Nifty indicates Monday morning.

The SGX Nifty, which derives its value from the Nifty, traded down 17,179 points Monday morning, while the Nifty closed at 17,327 on Friday. The price data signals a gap down of around a per cent from the weekend close. (Read More)

Indian government bond yields are expected to rise in early trading on Monday, tracking an unabating spike in U.S. yields, as investors fear that central banks globally will keep tightening monetary policy to tackle soaring inflation.

The benchmark Indian 10-year government bond yield is seen in a 7.40%-7.45% band, a trader with a private bank said. The yield ended at 7.3926% on Friday, a two-month high, to log a 12-basis points gain for the week.

"Till the time U.S. yields do not stabilise, (the) selloff in local bonds will continue," the trader said. "As the week progresses, market will await the local central bank policy decision, with a 50 basis points hike on the cards." (Reuters)

Piramal Group and Zurich Insurance plan to form a joint venture for taking over Reliance General Insurance, a subsidiary of debt-ridden Reliance Capital undergoing a resolution process.

Both Piramal and Zurich, which had submitted separate non-binding bids for the general insurance business of Reliance Capital in August, may hold 50 per cent each in the proposed special purpose vehicle (SPV), sources said.

Zurich confirmed that it has made a separate offer to acquire a stake in Reliance General Insurance Company as part of the resolution process under Insolvency and Bankruptcy Code (IBC).

"The terms of any transaction are subject to negotiations and there can be no assurance that a transaction will take place," the company said in an email reply. (PTI)

Following weak global sentiments post-US Fed interest rate hike, the Indian stock market ended in the negative zone on the third straight session on Friday. Nifty 50 index dipped 302 points and closed at 17,327, Sensex crashed 1020 points and ended at 58,098 whereas Bank Nifty finished at 39,546 levels, 1084 points below its previous close. Vaishali Parekh, Vice President - Technical Research at Prabhudas Lilladher believes that major support for Nifty 50 index lies at 17,000 levels and more weakness can be expected if this crucial 200 DMA support is broken.

Here we list out full details in regard to stocks recommended by Vaishali Parekh of Prabhudas Lilladher:

1] Voltas: Buy at ₹900, target ₹945, stop loss ₹880; and

2] NIIT: Buy at ₹320, target ₹338, stop loss ₹312.

Within five years India's defence exports have grown by 334 per cent, and the country is now exporting to over 75 countries its defence products, according to the government.

India has registered a growth of 334 per cent in its defence exports and has begun to export defence products over 75 countries, informed government. (Read More)