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PremiumMarkets had a mixed day on Thursday as investors wait for an update on ECB interest rate hike. The central bank is expected to increase its key interest rate to a 13-year high. Tokyo and Shanghai ended in the red while Hong Kong gained on Thursday. Europe was also trading lower in the morning session.
Indian benchmark indices made a late rally to end with decent gains on Thursday. The day started on a positive note but indices trimmed the profits and remained flat for most of the day before making a run towards the end.
Nifty settled at 17,736, a jump of 80 points, while Sensex climbed 212 points to end at 59,756.
Metal index had a stellar day and gained more than 2% with JSW Steel gaining more than 5% and pushing the index. Hindalco and Tata Steel also had a decent run today. Realty and Oil & Gas also jumped handsomely in today's session.
IT stocks dragged the market and ended in the red. Among stocks, Bajaj Twins shed the most followed by Asian Paints and Tech Mahindra.
Asian stock markets were mixed on Thursday as investors wait for an update on the US economy and some news on the ECB meeting where it is expected to increase its key interest rate to a 13-year high.
Japan's Nikkei share average snapped a three-session rally on Thursday as earnings season hits full swing. The Nikkei closed down 0.32%. It occasionally traded in positive territory in the morning session before paring all the gains in the afternoon.
China stocks closed lower on Thursday as bleak industrial profit figures and widening Covid-19 outbreaks weighed on sentiment. Meanwhile, Hong Kong shares ended higher.
China's blue-chip CSI300 index fell 0.7%, and the Shanghai Composite Index lost 0.6%. The Hang Seng index added 0.7% extending a rebound following Monday's tumble.
European shares opened lower on Thursday ahead of an interest rate hike from ECB, while Credit Suisse tumbled after the bank unveiled its restructuring plans. The pan-European STOXX 600 index slipped.
Real estate developers, investors and financial institutions are optimistic about growth in the sector over the next six months, however sentiment has moderated due to hike in mortgage rates and global recessionary fears, according to report by Knight Frank and Naredco.
Property consultant Knight Frank and realtors' body NAREDCO on Thursday released 'Real Estate Sentiment Index Q3 2022 (July-September 2022)' report. (Full Story)
Result summary
✳️Standalone revenue grew ~7.8% YoY to Rs~39.5bn (PLe and consensus estimate of ~Rs40.5bn and Rs37.2bn) led by healthy order book execution. H1FY23 revenue grew 33.3% YoY to Rs70.6bn.
✳️ Gross margin declined marginally by 20bps YoY to 43.3% in Q1FY23.
✳️EBITDA came in at Rs8.6bn (flat YoY) (PLe/consensus estimate ~Rs8.5bn/Rs8.3bn), while EBITDA margins declined 171bps YoY to 21.7% in Q2FY23, owing to higher employee cost (up 11.8% YoY) and other expenses (up 25.2% YoY). H1FY23 EBITDA grew ~48.9% YoY to Rs13.7bn, while EBITDA margin expanded 204bps YoY to 17.4%.
✳️PAT came in at Rs6.1bn, flat YoY (PLe and consensus estimate of ~Rs6.2bn). H1FY23 PAT grew 67.1% YoY to Rs10.4bn.
✳️Order book stands healthy at Rs527.95bn, 3.1x TTM revenue (down 3.4% YoY).
✳️At the CMP, the stock is trading at 26.8x/22.4/19.3x FY23/FY24/25E. We have Buy rating on the stock with TP of Rs125.
Steelmaker SAIL on Thursday said it has made procurement worth ₹10,000 crore through the Government-e-Marketplace (GeM) since the inception of the portal.
The portal was launched on August 9, 2016. Presently more than 7,400 products in about 150 product categories and hiring of transport service are available on it.
GeM is a completely paperless, cashless and system-driven e-marketplace that enables procurement of common-use goods and services with minimal human interface.
In a statement, SAIL said, "it has become the first Central Public Sector Enterprise (CPSE) to achieve the major milestone of procurement value of ₹10,000 through GeM since inception". (PTI)
Realty firm EON Group on Thursday said it will invest ₹250 crore to develop a mixed-use project in Mumbai.
The company, formerly known as Siddharth Group, has added a 5,000 square meter land parcel in Mumbai's prime Prabhadevi location, where it plans to develop a luxury mixed-use complex.
"This is a tenanted property that is targeted to be executed as a redevelopment scheme with the potential for a combination of residential and commercial towers exceeding 2 lakh square feet of free sale area. The property currently has approximately 250 tenants," the statement said.
The value of the asset as per prevailing market rates is in excess of ₹100 crore. (PTI)
The government’s fertiliser subsidy bill could go up further because of continued surge in the prices of pooled natural gas, the key raw material for manufacturing urea, Crisil Ratings Ltd said in a report.
The report said the increase could be as much as ₹40,000 crore over the original budget allocation of ₹1.05 trillion and ₹1.1 trillion subsidy announced later. (Full Story)
Samsung Electronics has officially appointed third-generation heir Lee Jae-yong as executive chairman, two months after he secured a pardon of his conviction for bribing a former president in a corruption scandal that toppled a previous South Korean government.
Lee's promotion is partially symbolic as he has helmed the Samsung group in his capacity as the electronics company's vice chairman since 2014, when his late father, former chairman Lee Kun-hee, suffered a heart attack. Lee's legal troubles had been widely seen as a factor that prevented Samsung Electronics from quickly promoting him as chairman after the death of his father in 2020.
The 54-year-old is now navigating one of his toughest stretches as the leader of one of the world's largest makers of computer memory chips and smartphones. The economic havoc unleashed by Russia's war on Ukraine and rising interest rates imposed by central banks to counter surging prices have slowed consumer spending on technology devices and deflated chip shipments, cutting into the company's profit. (AP)
PC Jeweller Ltd reported a quarterly profit on Thursday compared to a year-ago loss, as bullion demand surged ahead of key festivals and the wedding season.
Profit stood at 859.2 million rupees ($10.44 million) for the three months ended Sept. 30, compared to a loss of 788.9 million rupees a year earlier.
This was the jewellery retailer's second straight quarterly profit after nine consecutive quarters of losses.
Revenue from operations jumped 60.4% to 8.98 billion rupees.
"Momentum in footfalls and spending experienced in Q2 is expected to continue in Q3 as well," the New Delhi-based company said, adding that the commencement of marriage season would augur well for sales. (Reuters)
Shares of India's biggest bank State Bank of India (SBI) have been hovering around its record high level of ₹586 apiece on the BSE that it had hit earlier this week. Domestic brokerage and research firm ICICI Direct sees the stock's upward momentum to continue based on the technical factors.
"Nifty PSU bank index logged a resolute breakout from four year’s downward sloping trend line, indicating a structural turnaround. Within the PSU banking space, we remain constructive on State Bank of India (SBI) shares as it witnessed a faster pace of retracement after retesting 12 month’s range breakout area of ₹546 thereby confirming a structural turnaround. This augurs well for the next leg of the up move," the note stated. (Read More)
Kaveri Seed Company Ltd on Thursday announced that its board of directors at the meeting held on October 27, 2022 have approved share buyback of up to ₹125.6 crore at maximum buyback price not exceeding ₹700 per share. Shares of Kaveri Seed surged more than 6% to ₹484 apiece on the BSE in afternoon deals.
Kaveri Seed said that the maximum buyback Size represents 9.85% and 9.68% of the aggregate of the total paid-up capital and free reserves of the company based on the audited standalone and consolidated financial statements of the company as at March 31, 2022, respectively. (Full Story)
Realty firm M3M India on Thursday said it will invest ₹700 crore to develop a new retail property in Gurugram, Haryana.
The company said in a statement that it has launched a retail project - 'M3M Capitalwalk’ in sector 113, Gurugram, on the 150-metre-wide Dwarka Expressway.
The project will have 1,047 units of different sizes, ranging from 100 to 3,000 square feet.
M3M is looking for a topline of ₹2,000 crore from this project.
Pankaj Bansal, Director–M3M India, said the company is making investments to build a portfolio of 6 million square feet of retail space.
The new project will have 1 million square feet of saleable space, he added. (PTI)
India has granted environmental clearance for indigenously developed genetically modified (GM) mustard seeds, experts said on Thursday, paving the way for commercial use of its first GM food crop.
The world's biggest importer of edible oils, on which it spends tens of billions of dollars a year, India fills more than 70% of its demand from Argentina, Brazil, Indonesia, Malaysia, Russia and Ukraine.
"I can call it a landmark development," said Deepak Pental, a geneticist and former vice-chancellor of Delhi University, who developed the seeds along with his team, in an effort stretching more than a decade. (Reuters)
Japan's Nikkei share average snapped a three-session rally on Thursday, as cautious investors focused on the outlook of individual stocks as earnings season hits full swing.
The Nikkei closed down 0.32% at 27,345.24. It occasionally traded in positive territory in the morning session before paring all the gains in the afternoon.
The broader Topix index fell 0.66%.
"In my opinion, the Nikkei was unusually strong yesterday," Nomura Securities strategist Kazuo Kamitani told reporters in a briefing, referring to the index hitting a nearly seven-week high on Wednesday.
Canon Inc was the session's biggest loser in the Nikkei, falling 6.22% after revising its net profit forecast downwards. (Reuters)
After giving final dividend of ₹0.75 per equity share to its shareholders in September 2022, the board of directors of the small-cap company Confidence Futuristic Energetech Ltd has fixed record date for stock split. The petroleum engineering company has already declared stock split in 2:1 ratio as one share with paid up value of ₹10 will be divided into two equity shares with paid up value of ₹5 each. (Read more)
Retail investors have been less active in directly buying shares on the National Stock Exchange’s secondary market in the first half of the current fiscal year (FY23) as aggressive monetary tightening by the US Fed to tame decadal high inflation drove foreign investors to pull out ₹587.71 billion from Indian equities, raising market volatility.
Direct net buying by retail investors -- individual domestic investors, NRIs, sole proprietorship firms and Hindu Undivided Families (HUFs) – consequently fell to ₹528 billion in the first half of FY23, down 12.4% from ₹603 billion in the corresponding period of FY22, according to NSE’s Economic Policy & Research data. (Read More)
Twitter Inc shares will be suspended from trading on Friday, the New York Stock Exchange's website showed, as billionaire Elon Musk faces a court-ordered Oct. 28 deadline to close his $44 billion deal for the social media platform.
Musk, the world's richest person, visited Twitter's headquarters in San Francisco on Wednesday and hinted he was the company's top boss after updating his profile bio to "Chief Twit".
Reuters reported on Tuesday that equity investors, including Sequoia Capital, Binance, Qatar Investment Authority and others, had received the requisite paperwork for the financing commitment from Musk's lawyers.
The deal's completion would mark an end to a lawsuit by Twitter, which, along with investors, now expects the deal to be completed on its original terms of $54.20 per share. (Reuters)
Investments in clean energy pushed by new policies globally will rise to more than USD 2 trillion annualy by 2030, a rise of more than 50 per cent from today, said the International Energy Agency (IEA) in its World Energy Outlook 2022 report on Thursday.
This flagship publication of the IEA has appeared every year since 1998. Its objective data and dispassionate analysis provide critical insights into global energy supply and demand in different scenarios and the implications for energy security, climate targets and economic development.
Clean energy, it said, becomes a huge opportunity for growth and jobs, and a major arena for international economic competition.
Notably, the report stated that global emissions will peak in 2025. Supply chains for some key technologies - including batteries, solar PV and electrolysers - are expanding at rates that support higher global ambition. (ANI)
Metal shines in today's session with JSW Steel, Hindalco and Tat Steel leading the rally.
Shares of Venus Pipes & Tubes are one of the multibagger stocks in 2022. However, the stock was listed on BSE and NSE in May 2022 which means it is one of the multibagger IPOs (Initial Public Offers) as well. The multibagger stock has been in an uptrend since mid-July and it has hit a fresh high today in early morning deals. Within a few minutes of the stock market's opening bell today, Venus Pipes & Tubes share price hit a new lifetime high of ₹774.85 on NSE and ₹774.75 on BSE, logging an intraday high of around 2.50 per cent on Thursday morning session. (Read More)
Shares of NMDC Ltd rallied more than 15% to ₹107.9 apiece on the BSE in Thursday's early trading session, a day ahead of the record date for the company's demerger of the steel business. Earlier this month, the Ministry of Corporate Affairs (MCA) approved the demerger of NMDC Steel, a three-million tone steel plant in Chhattisgarh, from NMDC Ltd.
The company fixed Friday, October 28, 2022 as the record date for the purpose of identification of shareholders of the demerged company to whom the shares of the resulting company would be required to be issued and allotted by the resulting company pursuant to the scheme.
India reported the lowest number of 1112 covid cases in the last 24 hours. The country’s active caseload now stands at 20,821 against 21,607 at the previous count, according to the health ministry data.
While Assam has reported 2639 active caseload, Gujarat has contributed 517 active cases. Karnataka has reported 1953 active cases while Kerala has 3626 active cases. Maharashtra has 2496 active cases, Odisha 346 cases, Rajasthan with 320 cases, Tamil Nadu has 2533 active cases; Uttar Pradesh 406 and West Bengal has 1149 active cases so far. (Read More)
Credit Suisse Group AG reported its fourth straight loss as its investment bank continued to struggle, wealthy clients fled and the lender booked a charge related to a critical overhaul that’s been in the making for months.
The net loss of 4.03 billion Swiss francs ($4.08 billion) in the three months through September included a 3.7 billion-franc impairment of deferred tax assets that is related to the revamp, Credit Suisse said Thursday.
The investment bank will be radically restructured over the next three years, Credit Suisse said, after the unit posted a pretax loss of 666 million francs. The key wealth management unit saw net outflows of 12.9 billion francs amid uncertainty linked to the bank’s revamp. (Bloomberg)
Gold: We expect gold to trade higher towards 50970 levels, a break of which could prompt the price to move higher to 51200 levels.
Crude: We expect crude to trade higher towards 7370 levels, a break of which could prompt the price to move higher to 7480 levels.
Base Metals: We expect copper to trade higher towards 672 levels, a break of which could prompt the price to move higher to 683 levels.
The European Central Bank is set to look past intensifying recession fears by lifting its main interest rate to the highest in more than a decade to tackle record euro-zone inflation.
Despite displeasure at rising borrowing costs from politicians including new Italian Prime Minister Giorgia Meloni, almost all economists surveyed by Bloomberg predict a second straight 75 basis-point hike on Thursday.
Money-market investors concur, suggesting the deposit rate will double to 1.5%.
The motivation is inflation that, at almost 10%, is five times the ECB’s medium-term target. Wresting it back toward that level is so far taking precedence over shielding the economy from an energy-driven downturn this winter. After a retreat in the euro, the ECB is also under pressure to match the Federal Reserve’s aggressive ramping-up of rates. (Bloomberg)
Shares of Gland Pharma tumbled more than 12% to hit an all-time low of ₹1,942 apiece on the BSE in Thursday's opening deals after the company reported a 20% decline in consolidated net profit at ₹241 crore for the second quarter ended September (Q2 FY23), on lower sales and higher expenses. Meanwhile, its revenue and margin also reported a dip from the year-ago quarter.
Jeffries has downgraded its rating to Hold on Gland Pharma shares with a target price of ₹2,241 apiece. “Given the near-term top-line growth and margin headwinds, we downgrade the stock to Hold from Buy rating." (Read More)
JSW Steel said on Thursday its unit JSW Steel USA has tied up $182 million of long term financing with Italian banking firms Intesa Sanpaolo and Banco BPM for its plate mill modernization project in Baytown, Texas. (Reuters)
India's multinational IT company Tech Mahindra Ltd has announced record date for interim dividend payment. The board of directors of the company has fixed 10th November 2022 as record date for dividend payment. The IT major also informed Indian exchanges that the company board will consider interim dividend payment in its meeting scheduled on 1st November 2022. So, Tech Mahindra shareholders are advised to keep an eye on the outcome of scheduled board meeting outcome on 1st November 2022. (Read More)
Tirthankar Das, technical & derivative analyst, retail, Ashika Stock Broking Ltd: "On the technical front, Nifty formed a bearish candle on the daily chart resembling closer to a Bearish Belt Hold formation, generally formed in an upward trend however further confirmation in the form of volume and time is required before earmarking it as a reversal pattern. A brief breather in price action can be seen as Nifty is presently near strong resistances which coincide with a downward-sloping trend line that has held down the highs of 2021 and 2022. Hence Index need to decisively close above it for the uptrend to continue, breach of which would lead the Index further higher towards the Sept’22 high of 18096. Immediate support for the market is seen at 17100 as slower pace of retracement over the past few sessions indicates of inherent strength in Nifty to add further on numerous occasions index witnessed buying demand in the vicinity of 200 days EMA. The momentum indicator RSI (relative strength index) is sustaining above 50 levels and has started to form Higher High, Higher Low which is in sync with the trend. This reflects the rising momentum in the prices. Eventually, one can expect the index to accelerate upward momentum. However, such a move would be in a non-linear fashion amid global volatility. During the day index is likely to open on a positive note tracking positive global cues. Hence, as long as Index trades above 17350, momentum is likely to remain positive and buy on dip strategy would be the ideal approach going forward."
Indian rupee jumped sharply against while sovereign bonds also rose after the US currency plunged on speculation that the Federal Reserve may slow the pace of its interest rate hikes. The rupee rose to 82.20 against the US dollar compared to its close on Tuesday of 82.7250 while 10-year bond yields fell to 7.376. Bond prices are inversely related to yields. The yield fell seven basis points to end at 7.4424% on Tuesday. (Read More)
Japan's Nikkei share average edged lower on Thursday, with investors focused on the outlook for individual stocks as earnings season hits full swing.
The Nikkei was down 0.19% at 27,379.40 by the midday break. It occasionally traded in positive territory but may now snap a three-day winning streak.
The broader Topix index fell 0.52%.
"In my opinion, the Nikkei was unusually strong yesterday," Nomura Securities strategist Kazuo Kamitani told reporters in a briefing. "The fact that it closed above 27,400 gave me the impression Japanese stocks are strong." (Reuters)
Dr V K Vijayakumar, chief investment strategist at Geojit Financial Services: "There is a near-term undercurrent of ‘risk-on’ in equity markets globally triggered by expectations that the central banks will start moderating their rate hikes. The cue has come from Canada where their central bank raised rates only by 50 bp against expectations of 75 bp. Markets expect the Fed to moderate rate hikes starting December. Consequently, the dollar index has fallen below 110 and the 10-year US bond yield has dipped to 4.03%. This might nudge FPIs to turn buyers imparting strength to the market. Nifty’s recent range of 17500-17800 looks set to be decisively broken on the upper end today. Financials, select autos and capital goods are well set to continue their recent rally. The spike in Brent crude above $95 is a concern."
Finance Minister Nirmala Sitharaman on Wednesday said that despite exogenous threats, India's well-targeted policy mix, accompanied by major structural reforms and a sound external balance sheet, have aided its growth to remain resilient.
The minister of finance and corporate affairs was speaking during the seventh Annual Meeting of the Board of Governors of Asian Infrastructure Investment Bank (AIIB) via video conference, in New Delhi on Wednesday, an official statement said. (Read More)
Going by the momentum in housing sales this festive season and that of the first three quarters of 2022, it is very likely the total numbers across the top 7 cities will breach the previous peak of 2014.
Real estate services provider Anarock projects total sales in the top 7 cities to exceed 3.6 lakh units in 2022.
In the previous peak year of 2014, the top 7 cities saw 3.43 lakh units sold.
The January-September period of 2022 saw housing sales and new launches surpass the full-year readings of 2019 by approximately 2.73 lakh units sold and new launches at 2.65 lakh units. Notably, 2019 saw over 2.61 lakh units sold in the entire year, while new supply stood at 2.34 lakh units, Anarock said in a statement on Wednesday. (ANI)
Tata Steel has inked an agreement with American carmaker Ford to supply "zeremis green steel" from its Netherlands-based IJmuiden plant after the unit shifts to hydrogen-based steel making.
In Europe, Tata Steel is working to switch to low-carbon technologies to manufacture steel in the UK and the Netherlands.
The company's both businesses Tata Steel UK and Tata Steel Nederland have been developing detailed plans for transition to low CO2 technologies in line with the company's goal to produce CO2-neutral steel by 2050 in Europe, company's CEO & MD T V Narendran and Executive Director and CFO Koushik Chatterjee earlier said. (PTI)
The three-day initial public offering (IPO) of DCX Systems, manufacturer of cables and wire harness assemblies, will open for public subscription next week on Monday, October 31, 2022 and and conclude on Wednesday, November 2, 2022. The company has fixed a price band of ₹197 to ₹207 per share for its initial share sale. Investors can bid for a minimum of 72 equity shares and in multiples of 72 equity shares thereafter.
The company has cut the size of its fresh issue of equity shares to ₹400 crore from ₹500 crore planned earlier, reported news agency PTI. Apart from the fresh issue, the IPO comprises an offer for sale (OFS) of equity shares to the tune of up to ₹100 crore by promoters, NCBG Holdings Inc and VNG Technology. (Read More)
The three-day initial public offering (IPO) of Global Health Limited, which operates and manages hospitals under the Medanta brand, will open for public subscription next week on Thursday, November 3, 2022 and the issue will conclude on Monday, November 7, 2022.
The initial share sale consists of a fresh issue of equity shares aggregating to ₹500 crore and an offer for sale (OFS) of up to 5.08 crore equity shares by the company's shareholders and promoters. (Read More)
Indus Towers, PNB Housing Finance, Tata Chemicals, SBI Cards, Balaji Amines will be in focus as they declare their September quarter earnings today. (Read More)
Bitcoin gained for a second day, spurring optimism among the almost always bullish advocates of the bellwether cryptocurrency for an end to the months-long decline known as crypto winter. The world's largest and most popular digital token Bitcoin was trading more than 2% higher at $20,780.
Bitcoin broke above $20,000 for the first time in more than two weeks on Tuesday, ending its longest run below that price level since the token first breached the threshold in late 2020. (Read More)
One of the world's largest motorcycle manufacturers, Hero MotoCorp, on Wednesday said it is set to commence its operations in the Philippines. The company said it was partnering with Terrafirma Motors Corporation (TMC), a part of the Columbian Group of Companies, to bring motorcycles to the country.
As part of the partnership, TMC will be the exclusive assembler and distributor of Hero MotoCorp motorcycles in the Philippines. The company will set up an assembly facility of 29,000 sq m in its existing latest principal manufacturing facility situated in Laguna City and start its operations in the second half of fiscal year 2024.
Sanjay Bhan, Head of Global Business, Hero MotoCorp, said "In keeping with our R4 (recalibrate, revitalise, revolutionise and revive) strategy, we are always keenly exploring new opportunities in global markets. Our partnership with Terrafirma Motors Corporation (TMC) to enter the Southeast Asian region is an integral part of this expansion strategy." (ANI)
India and China bilateral trade continued to boom, crossing USD 100 billion for the second year in the first nine months of 2022 while India's trade deficit climbed to over USD 75 billion, according to trade data released by Chinese customs.
The total bilateral trade, amidst the military standoff in eastern Ladakh, went up to USD 103.63 billion, registering a 14.6 per cent increase compared to last year during the same period.
China's exports to India climbed to USD 89.66 billion, registering an increase of 31 per cent, data released by China’s General Administration of Customs (GAC) said.
However, India’s exports in the past nine months stood at USD 13.97 billion, registering a decline of 36.4 per cent. (PTI)
Indian IT major Infosys Ltd is going to trade ex-dividend today. The board of directors of the company has fixed 28th October 2022 as record date for interim dividend payment for the financial year 2022-23. The company board of the dividend paying stock has already announced ₹16.50 per equity share interim dividend for its shareholders. As the interim dividend will be paid on ex-date basis, the stock is going to trade ex-dividend on 27th October 2022 i.e. today.
Informing Indian stock market indices about interim dividend record date, Infosys Ltd said, "We wish to inform you that the Board of Directors (“Board") of Infosys Limited ( “Company") at its meeting declared an interim dividend of ₹16.50/- per equity share. Fixed October 28, 2022 as record date for interim dividend and November 10, 2022 as payout date." (Read More)
FMCG major Hindustan Unilever Ltd (HUL) has issued a statement as Unilever United States decided to recall some of the dry shampoos due to the presence of benzene in the products. Benzene is classified as a human carcinogen. It can result in cancers including leukemia and blood cancer of the bone marrow and blood disorders which can be life-threatening.
HUL has mentioned it doesn't manufacture or sell dry shampoos in India. "HUL doesn't manufacture or sell dry shampoos in India".
Unilever US and Canada voluntarily recalled select lot codes of dry shampoos produced prior to October 2021 out of abundant caution, after an internal investigation identified elevated levels of benzene. (Read More)
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