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PremiumShare Market Updates: Indices traded lower on Monday with Metal, Finance, and Bank leading the drag, while IT index trades flat. Investors remain concerned after strong US jobs data and a surge in oil prices due to a military conflict in the Middle East weighed on sentiment.
Oil prices surged after a shock attack on Israel by Hamas brought renewed instability to the Middle East.
Market experts suggest that investors should consider selectively picking stocks in sectors such as IT, Media, Oil and Gas, Petrochemicals, and Metals.
Benchmark equity indices tumbled on Monday as escalating tensions in the Middle East triggered a risk-off in the market. Market analysts predict that investors would remain on the sidelines and refrain from taking big risks as the Israel-Hamas conflict has introduced a huge uncertainty for the markets.
Benchmark equity indices tumbled on Monday as escalating tensions in the Middle East triggered a risk-off in the market. Market analysts said investors preferred to remain on the sidelines and refrained from taking big risks as the Israel-Hamas conflict has introduced a huge uncertainty for the markets
The 30-share BSE Sensex plunged almost 500 pts to close at 65,512, while the Nifty declined 150 pts to end around 19,500. All sectors ended lower.
State Bank of India, M&M, Tata Steel, and Bajaj Finance were among the major laggards. On the other hand, IT majors HCL Technologies and TCS defied the broader market trend and ended in the positive territory.
Bank, Finance, and Metal led the downward trend as they shed more than a per cent each with PSU Bank shedding 3%. IT and Pharma remained somewhat stable and ended marginally lower in today's trading.
Crude oil prices surged and world share prices were mostly lower on Monday after the Israeli government declared war following deadly attacks by Hamas from the Gaza Strip.
Japan's Nikkei and South Korea's Kospi remained closed for national holidays.
China stocks closed slightly lower as trading resumed following a long holiday and as mixed holiday tourism data failed to convince investors of a strong economic recovery, while overseas uncertainties also curbed sentiment.
Hong Kong shares, meanwhile, were lifted slightly by rising energy shares on the back of surging oil prices amid the military conflict in the Middle East.
The blue-chip CSI 300 Index slipped 0.1% and the Shanghai Composite Index declined 0.4% at close. Hong Kong's Hang Seng Index edged up 0.2% and the Hang Seng China Enterprises Index added 0.4% in a shortened trading day due to Typhoon Koinu.
Most major European stock markets opened lower as military clashes in the Middle East sparked a rush to safe-haven assets such as bonds and gold, while also boosting oil prices by over 3%.
The commodity-heavy FTSE 100 edged higher as oil prices jumped more than 2% due to the ongoing military conflict in the Middle East, while shares of embattled Metro Bank gained after it raised $396.5 million in fresh capital.
When India decided to make a concerted push to green the world’s biggest two-wheeler market, a slew of electric scooter startups emerged almost overnight. Now, many are falling out of favor for sourcing parts from China instead of locally.
Indeed, the government is demanding that six — including Hero Electric Vehicles Pvt, once India’s top e-scooter maker — return 5 billion rupees ($60 million) of subsidies for violating localization rules. It’s holding back unpaid subsidies from others, turning off a much needed source of capital in the process. (Bloomberg)
IFL Enterprises' share price has demonstrated an upward trend despite the prevailing weakness in stock market sentiment. This small-cap stock opened the day with an upward gap and swiftly reached an intraday high of ₹16 per share on the BSE, marking an impressive 11% increase within just a few hours of the stock market's opening.
During this climb to its intraday high of ₹16 per share on the BSE, the small-cap stock approached its all-time high of ₹18.99 per share. Notably, this isn't the first time that this BSE SME-listed stock has outperformed key benchmark indices. Since its listing on the BSE SME exchange in March 2017, it has consistently delivered strong returns to its shareholders. (Read More)
The Association of Healthcare Providers India (AHPI) has accused insurance companies of "unfairly" rejecting claims by patients and blatantly disregarding guidelines laid down by the Insurance Regulatory and Development Authority of India.
The AHPI, which is a collective of hospitals and other healthcare providers, contended that private insurance companies have formed an "alarming cartel".
These companies are collectively discontinuing cashless facilities provided to hospitals, depriving patients of their right to choose treatment and healthcare providers in an arbitrary manner, the AHPI charged in a statement.
The real victims in this situation, the AHPI said, are the insured patients. (PTI)
International crude oil prices surged on Monday amid the military clash between Israel and Hamas forces of Palestine. India, meanwhile, said it is watching the “situation carefully" and will handle it with maturity.
The December contract of Brent on the Intercontinental Exchange (ICE) was currently trading at $86.67 per barrel, 2.47% higher from its previous close. The November contract of West Texas Intermediate (WTI) rose by 2.79% to $85.10 a barrel. During the early trade on Monday, prices soared over 4%.
Speaking to reporters here on Monday, petroleum and natural gas minister Hardeep Singh Puri said “The place where the action is taking place is the in many respects the centre of the global energy, so we will watch very carefully. And I think as we go along, we will navigate through this." (Read More)
Chinese stocks ended lower in a choppy session following their return from the Golden Week break, as investors parsed holiday-spending data while navigating global market volatility spurred by Hamas’ surprise attack on Israel.
The CSI 300 Index closed down 0.1% on Monday, its first trading session since Sept. 28. Risk assets were hammered last week as renewed concern about higher-for-longer US interest rates spurred a Treasuries selloff that rippled through world markets.
The listless resumption came as tourism revenue from China’s Golden Week holiday fell short of government estimates despite a year-on-year jump to above pre-Covid levels. Traders had been pinning hopes on a consumption boost to lift the market, which has been hurt by persistent worries about the property crisis. (Bloomberg)
Gold price on Monday rose ₹581 to ₹57,452 per 10 grams in futures trade as speculators created fresh positions on firm spot demand.
On the Multi Commodity Exchange, gold contracts for December delivery traded higher by ₹581 or 1.02 per cent at ₹57,452 per 10 grams in a business turnover of 15,334 lots.
Fresh positions built up by participants led to the rise in gold prices, analysts said. (PTI)
The board of directors of Teamo Productions HQ Limited is set to deliberate on and approve a stock split during its upcoming board meeting scheduled for October 25, 2023. The small-cap company has officially notified the Indian stock market exchanges regarding this stock split proposal in its recent board meeting update. Additionally, in the same meeting, the company will also review and approve its Q2FY24 results and H1FY24 financials. (Read More)
Fundraising through the issuance of shares to qualified institutional investors has seen hectic activity in the first half of the current fiscal year (FY24), with 20 companies mobilising over ₹18,400 crore, more than four-fold from the year-ago period, on positive investors' sentiments.
Moreover, the robust trend of Qualified Institutional Placements (QIPs) in the first half of the fiscal year 2023-24 is expected to persist throughout the second half of the year too, Sanjay Moorjani, Research Analyst at SAMCO Securities, told PTI.
Prashant Rao, Director and Head of Equity Capital Markets, Anand Rathi Investment Banking, said that market and investor sentiments play an important role for these issuances. Till the time market sentiments are positive and investors are earning returns, listed companies would prefer to raise funds through QIP which allows them to have faster access to funds.
"We believe the second half of this year also to be positive for QIP issuances," he added. (PTI)
India’s inflation will continue to moderate but achieving the 4% goal will be challenging for the central bank amid weak monsoons and higher crude oil prices.
That’s the view of Upasna Bhardwaj, an economist at Kotak Mahindra Bank, who expects headline inflation figures for September — due to be released this week — to ease to 5.3% from 6.83% in August. Price gains will soften for the next few readings, though sustainably driving inflation to the midpoint of Reserve Bank of India’s 2%-6% target aim will be tough, she said in an interview with Bloomberg Television’s David Ingles and Rishaad Salamat Monday.
Rising international crude prices for the world’s third-largest consumer of oil, and deficient rains are key threats to inflation. Governor Shaktikanta Das last week highlighted inflation as a “major risk" to stability and growth in India. (BLoomberg)
Most major European stock markets opened lower on Monday as military clashes in the Middle East sparked a rush to safe-haven assets such as bonds and gold, while also boosting oil prices by over 3%.
The pan-European STOXX 600 index fell 0.2% by 0710 GMT, with chemical and travel & leisure sectors leading losses.
Global investors turned risk averse as military clashes between Israel and the Palestinian Islamist group Hamas deepened political uncertainty across the Middle East and raised concerns about oil supplies. (Reuters)
Oil and Natural Gas Commission (ONGC), a leading upstream oil and gas producer, saw gains of up to 1.79% in morning trading on Monday. This increase followed a rebound in crude oil prices in the aftermath of the Israel-Palestine conflict. The rising crude prices are providing a positive sentiment boost to ONGC's stock.
On Monday, when broader indices were experiencing declines as a knee-jerk reaction to the Israel-Palestine conflict, ONGC emerged as one of the top five gainers on the Nifty index. (Read More)
The Delhi Police has filed a First Information Report (FIR) against Hero MotoCorp's Executive Chairman, Pawan Munjal. Further details about the situation are currently pending.
As of 12:26 pm, Hero MotoCorp's stock has declined by 2.75%, equivalent to a decrease of 83.50 points, trading at 2954.35 from the day's opening price.
Titan Company's share price experienced a decline of nearly 2% in morning trading on BSE on Monday, October 9, following the release of the company's business updates for the September quarter (Q2FY24).
The share price of Titan Company opened at ₹3,308.95, slightly down from the previous day's closing price of ₹3,311.15, and it slipped 1.90% to reach ₹3,250 during morning trading on BSE.
It's worth noting that Titan Company's share price has seen a gain of approximately 22% over the past year, outperforming the equity benchmark Sensex, which has gained around 13% over the same period. (Read More)
Shares of billionaire Gautam Adani's Adani Ports And Economic Zone (APSEZ) fell as much as 3.6% on Monday, as investors grew wary over possible escalation of a conflict in Israel, where the company owns a major port.
Adani operates the Haifa Port in northern Israel along with a local company after it completed its purchase for 4 billion shekels ($1.03 billion) in January.
Haifa is one of the main seaports in Israel, where about 99% of all goods move in and out of the country by sea.
Investor worries come as Palestinian Islamist group Hamas on Saturday launched the largest military assault on Israel in decades, killing hundreds of Israelis. (Reuters)
Following the announcement of a proposal for a share buyback during the October 11, 2023 board meeting, Tata Consultancy Services (TCS) experienced strong buying activity during Monday morning trading. TCS's share price opened higher and reached an intraday high of ₹3,679 per share on the NSE, establishing a new 52-week high.
According to market experts, this surge in TCS shares can be attributed to the recent exchange filing by the Indian IT giant. In the filing last week, TCS informed the Dalal Street bourses of its board's intention to consider and approve a share buyback during the October 11 meeting. Experts believe that TCS's share price shows a bullish chart pattern and may potentially reach levels around ₹3,800 per share in the near term. (Read More)
Abhishek Kumar of JM Financial Institution Sector Updated on Media and Entertainment | 2QFY24 Preview: Buoyed by box office
The much awaited pick-up in ad-revenue growth for broadcasters might remain elusive even in 2QFY24, in our view. A still fledgling rural recovery, delayed start to festive season and some diversion of FMCG’s ad-budget towards sports (here) likely impacted TV (GEC) ad-spend during 2Q. Subscription revenue growth (YoY), on the other hand, should sustain as customer churn, if any, post recent price hikes would have stabilised now, in our view. Besides, a record box office performance of movies should benefit, apart from PVR-INOX, ZEEL and SUNTV as well. Zee Studios’ “Gadar 2" and Sun Pictures’ “Jailer" will help ZEEL/SUNTV report 11%/47% YoY revenue growth. A slew of blockbuster movies across languages mean PVR-INOX will likely report all time high revenues (INR 18.4bn; JMFe). Operating leverage in the business means its EBITDA (pre Ind-AS) could jump five-fold QoQ to INR 3.8bn. We expect Nazara to report a modest 14% growth YoY with some sequential moderation in EBITDA margins. Nazara’s capital allocation plans post recent fund raises and way-forward for RMG business will be key monitorables. In spite of a strong run-up (+50% in past six months), we continue to find value in SUNTV. We expect ZEEL to pause till newco listing (which we expect by year-end), but remain constructive over the medium term. We believe market’s apprehension on PVR-INOX’s sustained recovery offers a good entry point at current levels. We remain cautious on Nazara on rich valuations.
The Federation of Automobile Dealers Associations (FADA) today has released vehicle retail data for September 2023. FADA is an apex national body representing Automobile Retail in India.
The data released on October 9 showed year-on-year (YoY) growth was strong. "Automotive retail in September 2023 showcased a robust 20 percent double-digit YoY growth," the body said. (Read More)
Shares of the Multi Commodity Exchange of India (MCX) saw a strong start to the week, rallying nearly 5% in early Monday trading. This surge came after the company received approval from the capital markets regulator to launch its commodity derivative platform (CDP). MCX shares surged as much as 4.90% to reach a high of ₹2,139.00 per share on the BSE.
It's worth noting that MCX's stock price is currently just below its 52-week high of ₹2,139.95, which was achieved on September 29, 2023. (Read More)
Swarnendu Bhushan – Co-Head Of Research, Prabhudas Lilladher Pvt Ltd views on Oil & Gas sector: Jul-Sep’23 Earnings Preview – Operationally weak results likely
Indian Oil & Gas sector’s operating profit is expected to decline by 5.5% QoQ to Rs1,085bn given OMC’s weak marketing margins and flat CGD performance. Upstream companies like ONGC and OIL India are expected to maintain production volumes and net crude realization of ~US$75/bbl post windfall tax. Similarly, gas realization to remain unchanged QoQ at US$6.5/mmBtu. IGL/MGL/GUJGA earnings to remain flat with muted volumes and no significant price hikes/cuts except Gujarat Gas. We expect RIL’s O2C segment to report higher operating profits with higher refining margins, partly offsetted by weak petchem spreads. We build in steady telecom performance (+3.4%QoQ revenue growth) as we build in 1.9%QoQ ARPU growth while retail revenue growth will be steady. ONGC, GAIL, GSPL and Gujarat Gas remain our top picks.
The E Factor Experiences Limited IPO made its debut today on the NSE SME Emerge platform, delivering a remarkable listing gain of over 53% to its investors. The company's shares opened on NSE at ₹115, a substantial ₹40 per share higher than its price band of ₹71 to ₹75 per equity share, representing a gain of more than 53%.
The momentum didn't stop there, as the newly listed NSE SME stock continued to climb, reaching an intraday high of ₹120.75 per share within a short period after its listing. This extended the IPO's listing gain for E Factor Experiences Limited to over 60%. (Read More)
Arabian Petroleum's IPO had a promising stock market debut on Monday, even in the midst of a generally subdued market. The company's shares were listed at ₹77.40 each on NSE SME, marking a premium of 10.57% over the issue price of ₹70 per share.
The IPO of Arabian Petroleum garnered substantial interest from investors, with an overall subscription rate of 19.91 times during the subscription period. Notably, it received strong support from retail investors, who subscribed 23.19 times, and also from the Other category, which subscribed 15.72 times. (Read More)
China's average daily home sales during the Golden Week holiday were down 17%, based on floor area, compared with last year, despite a series of piecemeal support measures to restore confidence in an ailing property market, according to a survey.
China Index Academy said on Saturday that average daily home sales in smaller cities, known as tier three and four cities, fell 50% during the holiday from Sept. 29 to Oct. 6, compared with last year, when the holiday fell between Oct 1-7.
However, the research firm said new home sales rose 62% in tier-one cities, suggesting that the support measures, including lower mortgage rates and down payments, could be unlocking pockets of demand in the most sought-after areas. (Reuters)
Today, gold prices surged due to heightened uncertainty stemming from the Israel-Palestine conflict. On the Multi Commodity Exchange (MCX), the December 2023 expiry contract for gold opened strong at ₹57,000 per 10 gm and quickly reached an intraday high of ₹57,400 shortly after the market's opening. In the spot market, gold is trading around $1,850 per ounce.
Similarly, silver prices also opened higher on MCX, starting at ₹68,740 per KG and swiftly rising to an intraday high of ₹68,980 per kg right after the market opened. In the international market, silver is hovering around $21.80 per ounce in Monday's trading. (Read More)
Som Distilleries and Breweries has canceled its planned QIP (qualified institutional placement) issue due to limited interest from potential investors. The company will reassess its fundraising options at a later, more appropriate time.
"The company is not going ahead with the proposed QIP issue due to a lesser amount of bids received towards its proposed QIP Issue. The company shall evaluate the viability of a fundraiser at a suitable time," Som Distilleries said on Monday. (Read More)
Balu Forge Industries shares have emerged as a small-cap gem on Dalal Street, delivering remarkable returns to its investors in recent times. This stock, listed on the BSE, has witnessed a remarkable surge, soaring from approximately ₹66.50 to ₹220 per share, thereby generating a substantial 250% return for its shareholders. In 2023, this small-cap stock stands out as one of the standout performers in the Indian stock market. Interestingly, some Foreign Institutional Investors (FIIs) appear to believe that this multibagger stock still has further potential for growth, indicating ongoing optimism about its prospects. (Read More)
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: The Israel-Hamas conflict has introduced a huge uncertainty for the markets. Nobody knows how this war is going to evolve. From the market perspective, it is important to understand that even though the death and destruction are tragic, presently it is unlikely to cause major disruption in oil supplies thereby impacting major oil importers like India. But the situation will change if Iran, a major Hamas supporter, is drawn into the war. That can disrupt oil supplies causing a spike in crude, which can trigger a risk-off in the market.
This is a time to be cautious. Investors may refrain from taking big risks. Wait for the developments to unfold. Long-term investors can slowly accumulate high-quality stocks on declines.
Traders fear an escalation of the violence could prompt a proxy war embroiling the US and Tehran. Iranian security officials helped to plan Hamas’ assault, the Wall Street Journal reported, citing senior members of the militant group and Hezbollah. The US, meanwhile, said it’s moving a carrier strike group to the eastern Mediterranean and augmenting its fighter squadrons in the region.
With global benchmark Brent trading about 4% higher near $88 a barrel on Monday, here’s what market watchers are saying about the fallout so far, and what may happen to the global oil market in the days and weeks to come:
Iran remains a “very big wild card" and there will a focus on how strongly Israel Prime Minister Benjamin Netanyahu blames Tehran for facilitating the attacks, analysts including Helima Croft said in a note. If Israel comes out and directly implicates Iran, it will likely be difficult for the Biden administration to continue to adopt such a permissive sanctions regime against Tehran. (Bloomberg)
Veer Mishra, Co-Founder of Plus: How Consumer Buying Patterns Are Changing with Price
Consumer buying patterns for gold and silver are changing with price. At higher prices, consumers tend to buy less gold and silver. This is because they are less affordable. Consumers may also switch to lower-purity gold or silver, such as 22-karat gold instead of 24-karat gold.
In addition, consumers are becoming more price-sensitive and are shopping around for the best deals on gold and silver. They are also more likely to buy gold and silver online, where they can often find lower prices than in traditional jewelry stores.
Overall, the gold and silver market in India is complex and is affected by a variety of factors. It is important for consumers to be aware of these factors before making a purchase.
Reliance Retail Ventures Ltd (RRVL) has announced that the Abu Dhabi Investment Authority (ADIA) will invest an additional ₹4,966.80 crore in the company, valuing RRVL at a pre-money equity value of ₹8.38 trillion, making it one of India's top four most valuable companies. Tata Consultancy Services (TCS) plans to consider a share repurchase proposal on October 11, following its second-quarter earnings declaration. Multi Commodity Exchange of India (MCX) received approval to launch its commodity derivative platform (CDP) from the SEBI technical advisory committee. Tata Motors reported a 7% YoY rise in global wholesales, while Titan saw a 20% growth in standalone revenue for Q2. Bharti Airtel will challenge a customs penalty order, and BMW Motorrad will continue its collaboration with TVS Motor Company. Ambuja Cements and ACC reduced distributors in a pilot project, Vedanta is open to revising its bond payment proposal, and Biocon received a complete response letter from the US FDA for its Insulin Aspart biosimilar application. (Read More)
The share sale plan, which involved China Evergrande New Energy Vehicle Group and the United States-listed NWTN, has been halted. This development was reported in a filing made by China Evergrande with the Hong Kong stock exchange on October 9.
According to the filing, China Evergrande attributed the suspension of the share subscription agreement to "significant uncertainties" associated with the broader Evergrande group, as reported by Reuters. It's worth noting that the troubled property developer holds a majority stake in the electric vehicle (EV) company, China Evergrande New Energy Vehicle Group. (Read More)
Vaishali Parekh, Vice President — Technical Research at Prabhudas Lilladher recommends:
1] City Union Bank or CUB: Buy at ₹128.90, target ₹137, stop loss ₹126;
2] Trident: Buy at ₹38.50, target ₹43, stop loss ₹37; and
3] TAJ GVK Hotels and Resorts: Buy at ₹242.45, target ₹260, stop loss ₹238. (Read More)
The week ahead, spanning from October 11 to 15, is set to witness earnings releases from a lineup of significant players in the market. Notable among them are IT giants Infosys, Tata Consultancy Services (TCS), and HCL Technologies. Additionally, investors will be keeping a close watch on D-Mart's parent company, Avenue Supermarts, gaming firm Delta Corporation, Plastiblends, Kesoram Industries, and HDFC Life Insurance.
Analysts are projecting a relatively muted performance in the upcoming quarter, with several industries expected to deliver modest results. While some sectors may display respectable year-on-year growth, any substantial surges are not currently anticipated. (Read More)
The Adani Group’s cement businesses are looking to cut their reliance on distributors or wholesalers as the country’s second-largest cement maker looks to boost its profitability.
As part of a pilot project, Ambuja Cements Ltd and ACC Ltd have reduced the number of distributors from 12 to three in the south Gujarat region, which is home to half of the state’s small and medium industries and a fifth of the state’s population. Both cement firms are expected to reduce the number of distributors across the country in the coming months, according to an executive briefed on the development. (Read More)
The company, Tata Consultancy Services (TCS), has revealed that its board of directors will review a proposal for an equity share buyback during its upcoming meeting on October 11, according to the company's statement filed with the Bombay Stock Exchange (BSE) on Friday.
TCS has not disclosed the specific amount of the buyback being contemplated in this announcement. The most recent buyback undertaken by this major IT firm occurred in 2020 and was valued at 160 billion rupees ($1.92 billion). (Read More)
Major Wall Street bank analysts will begin weighing in on one of the most-watched initial public offerings in the US so far this year.
Arm Holdings Plc raised $4.87 billion last month in the largest IPO on a US exchange since Rivian Automotive’s $13.7 billion offering in November 2021. Starting next week, analysts at the more than 25 firms, including Barclays Plc, Goldman Sachs Group Inc., JPMorgan Chase & Co. and Mizuho Financial Group Inc., that participated in the IPO can initiate coverage of the chip designer. (Read More)
Indian stocks may open lower on Monday, in line with other global stock indices, in response to the Israel-Hamas war that erupted early Saturday, fund managers said.
While they expect no immediate cause for panic, they are closely monitoring the evolving situation as any widening of the war could profoundly impact Indian stocks because of a surge in oil prices, and heightened volatility in rupee and bond yields .
Israel’s benchmark TA-35 Index, tracking 35 top companies on the Tel Aviv Stock Exchange, which runs from Sunday through Thursday, plunged 6.47% on Sunday. Indian benchmarks Nifty and Sensex on Friday traded around 3% below their mid-September record highs, while small- and mid-cap benchmarks ruled 2-3.5% below their highs amid selling by foreign institutional investors. (Read More)
Wall Street rallied in a whipsaw Friday and erased its morning losses after looking deeper into the nuances of a surprisingly strong report on the U.S. job market.
The S&P 500 climbed 1.2% after charging back from an earlier drop of 0.9%. The Dow Jones Industrial Average rose 288 points, or 0.9%, and the Nasdaq composite flipped to a gain of 1.6%.
Stocks initially tumbled after a report showed U.S. employers added nearly twice as many jobs last month as economists expected. The strength raised worries that a too-hot job market could keep upward pressure on inflation, which in turn could push the Federal Reserve to keep interest rates higher than investors want.
Treasury yields leaped following the release of the report, and the yield on the 10-year Treasury again soared to its highest level since 2007. It was at 4.78%, up from 4.72% late Thursday.
Among the potentially encouraging signals for the Fed: Workers’ average wages rose at a slower rate in September than economists expected. While that’s discouraging for workers trying to keep up with inflation, it could remove some inclination by companies to keep raising prices for their products. (AP)
