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PremiumUS inflation data pulled the market down in the previous session but most indices recovered and registered a positive mood on Thursday. Nikkei and Hong Kong gained in today's session, but Shanghai dropped sharply. Europe also was trading green in the morning.
The positive sentiments from other Asian indices failed to infect Indian investors as they continued their selling streak from yesterday. The benchmark indices closed in red on Thursday where they shed 0.7%.
Sensex dropped 413 points to close below the 60,000 mark, at 59,334. Nifty slipped below 18,000 points to end at 17,877, a drop of 126 points.
Auto was the only index which remained stable throughout the session with Maruti leading the rally with a gain of 2.5%. Adani Ports and Eicher Motors also gained 2% each.
Hindalco shed almost 4% followed by Infosys and Tech Mahindra which tumbled by 3% each. Among indices, IT, Pharma, Healthcare and Media dragged the market.
Asian indices were mostly in green as investors switched into buying mood following a rout on Wednesday due to higher-than-expected US inflation data.
Japanese shares closed higher on Thursday with travel-related stocks leading the recovery on hopes of a rebound in tourism. The Nikkei share average edged higher 0.21%.
Hong Kong stocks closed higher with Hang Seng Index rising 0.4%. The Shanghai Composite Index though dropped 1.2%.
European shares inched higher on Thursday supported by banks as markets showed some signs of recovery from a sharp selloff on Wednesday.
Tata group-owned Air India on Thursday announced to increase its domestic market share by over 30% in the next 5 years. The airline plans improvements/changes in areas of customer service, technology, product, reliability and hospitality.
Air India has unveiled a comprehensive transformation plan titled ‘Vihaan.AI’, which in Sanskrit indicates the dawn of a new era. (Full Story)
Six months after China’s government set ambitious economic targets for the year, growth has slowed so sharply that several major banks don’t even think 3% is achievable anymore.
Growth projections have come down steadily since March, when the official target of around 5.5% was first disclosed. The consensus in a Bloomberg survey is for the economy to expand 3.5% this year, which would be the second-weakest annual reading in more than four decades. Forecasters at Morgan Stanley and Barclays Plc are among those predicting even slower growth as risks mount into year-end. (Read More)
Hong Kong stocks closed higher on Thursday, tracking gains in Asian and US trading following a rout earlier in the week due to higher-than-expected US inflation data.
The Hang Seng Index rose 0.4%, or 83.28 points, to 18,930.38.
The Shanghai Composite Index dropped 1.2%, or 37.62 points, to 3,199.92, while the Shenzhen Composite Index on China's second exchange also lost ground, dropping 2.34%, or 49.11 points, to 2,051.79. (AFP)
Yoga guru, Baba Ramdev will announce major initial public offering (IPO) plans for 5 of the Patanjali Group companies. Ramdev seeks 5 new IPO plans in the next 5 years. The move is to scale new heights of corporate performance. The announcement will be made at a press conference scheduled on September 16 (tomorrow). (More Details)
India has emerged as the top lender to Sri Lanka in 2022, disbursing USD 377 million in loans to the island nation as it grappled with an unprecedented political crisis and economic turmoil, according to the Verite Research think-tank.
The Asian Development Bank follows India with USD 360 million in loans. They account for 76 per cent of total disbursements from January to April 2022.
Out of a total disbursement of loans amounting to USD 968 million in the first four months this year, India with a contribution of USD 377 million has emerged as Sri Lanka’s largest bilateral lender, Verite Research, a Colombo-based independent interdisciplinary think-tank providing strategic analysis and advice for governments and the private sector in Asia, said. (PTI)
In the wake of Moscow's invasion of Ukraine in late February, India has replaced China as Russia's second-largest oil importer. Meanwhile, Saudi Arabia replaced Russia as India's second-largest oil exporter in August after a three-month hiatus while Iraq continued to hold the top spot.
Being the third-largest oil importer and consumer in the world, India imported 863,950 barrels per day (bpd) from Saudi Arabia, up 4.8% from the previous month, while purchases from Russia declined to 855,950 bpd, according to the statistics. (Full Story)
Engineering and construction behemoth Larsen & Toubro (L&T) on Thursday said that the international arm of the water & effluent treatment business of its subsidiary L&T Construction has been awarded ‘significant’ contracts.
“The Water & Effluent Treatment Business of L&T Construction has secured a repeat order from the Department of Water Resources, Government of Odisha, to execute a Pressurized Underground Pipeline Irrigation Network System for the Right Command of Lower Suktel Irrigation Project," the company said in a stock exchange filing. (Full Story)
Global crude oil prices ticked higher on Thursday amid persistent concerns of supply disruption, amid a looming rail stoppage in the US.
Crude oil has come off the lows but is struggling to build on the momentum amid mixed factors. Rise in US crude oil stocks and shaky risk sentiment may weigh on crude price. (Read More)
The board of directors of microcap company JMD Ventures Limited has fixed record date for bonus shares issue. As per the information available on the BSE website, the company board has fixed 23rd September 2022 as record date for bonus shares. The company has already approved and declared bonus shares in the ratio of 1:1. (Read More)
The Indian automobile industry aims to be among the top two producers globally in every segment of vehicles over next 25 years, SIAM President Kenichi Ayukawa said on Thursday.
Speaking at the 62nd annual session of Society of Indian Automobile Manufacturers (SIAM), Ayukawa said India also plans to be nearly 100 per cent self-reliant in the entire manufacturing value chain of automobiles during the period as per the Vision 2047.
"Industry has prepared a vision statement for India at 100. According to that, the Indian automobile industry will be one of the two largest producers in every segment of automobiles in the world," he said.
Besides, the industry aims to have a dominant share of clean energy vehicles on a life-cycle basis in the next 25 years, Ayukawa noted. (PTI)
Hit by high inflation, urban Indian households are looking at ways to save money on food and drink, with 42% of consumers surveyed by Mintel saying they stick to a budget as much as possible while shopping.
Concerns around the pandemic, high inflation and the war in Ukraine are weighing heavy on the average Indian household, market researcher Mintel said in a white-paper released on Thursday. (Full Story)
Ace investor Shankar Sharma has questioned the silence of investors on the edtech major Byju’s accounting practice. The market magnet raised his question from the venture capital (VC), Private Equities (PE) and other investors of the edtech giant over changing the nature of revenue recognition.
Shankar Sharma tried to attract attention of Byju's shift from accrual accounting to almost a cash accounting system. (Read More)
The Central Board of Indirect Taxes and Customs (CBIC) has further eased customs procedures to allow export of goods to Bangladesh through inland waterways.
Radio frequency identification (RFID) seals will be used to ensure that containers once cleared at a customs facility in India are not tampered with when they are shifted to a vessel for shipment through waterways, according to a circular from the CBIC. (Read More)
Japanese shares closed higher on Thursday as investors bought back equities after a sharp drop in the previous session, with travel-related stocks leading the recovery on hopes of a rebound in tourism.
The Nikkei share average edged higher 0.21% to 27,875.91, recovering from its worst session in three months. The broader Topix inched up 0.15% to 1,950.43.
"It is a rebound from previous session. The market fell too much yesterday," said Seiichi Suzuki, chief equity market analyst at Tokai Tokyo Research Institute. "But the rebound is small because overnight gains in U.S. equities were limited." (Reuters)
The initial public offering (IPO) of Annapurna Swadisht Ltd (ASL) has opened for public subscription on Thursday, September 15 and the issue will conclude on Monday, September 19, 2022. The price band of the share sale has been fixed in the range of ₹68-70. As of 11:30 am on day 1, the issue has been subscribed 0.73 times, as per NSE data. (Full Story)
Auto is the only index in green with IT, Media, Realty and Pharma dragging the most
It’s December in Europe, and the temperature is dropping. People have the heating on as they cook dinner, run the washing machine, watch television. But in France, the grid operator is running out of options to keep the lights on.
The utility has issued a “red" alert, meaning supplies are at their limit. It’s already cut off some big industrial users and reduced voltage, and even sent out a mass request to households to curb their electricity usage.
Many comply, but it’s crunch time. The operator needs to take the drastic step of shutting down power in some places to avoid a total collapse of the system.
It’s a dramatic scenario, but one that governments across Europe are preparing for as the energy squeeze that’s gripped the continent gets worse with each passing week. On Wednesday, France’s Reseau de Transport d’Electricite said that it will probably have to ask the country to cut consumption several times this winter to avoid rolling blackouts. Finland also ramped up its warnings about outages. (Bloomberg)
Bajaj Auto Ltd has two main concerns. One, chip shortage, and the second, weakening outlook in its export markets. While the issue of chip shortage is expected to ease in the coming months, export concerns seem here to stay. True, this headwind also weighs on Bajaj’s two-wheeler (2W) peers, Hero MotoCorp Ltd. and TVS Motor Co. Ltd. But Bajaj Auto is at a relatively greater risk, as exports account for a much larger part of its total sales volumes. For perspective, in FY22, Bajaj’s export volume share stood at 58% versus about 38% for TVS Motor. (Full Story)
ICICI Bank shares are one of the Saurabh Mukherjea stocks that has given stellar return to its shareholders in recent sessions. In fact, ICICI Bank share price today ascended to fresh life-time high of ₹936.65 apiece on NSE. After hitting this record high today, ICICI Bank has hit new high on third successive session in a row. The Saurabh Mukherjea portfolio stock has hit new highs on Tuesday and Wednesday session as well. The banking stock had hit record high on Friday and Thursday sessions last week as well. That means, in last five sessions, this Saurabh Mukherjea stock has hit new life-time on sessions. (Full Story)
The fallout from climate change will be felt across industries, eroding asset values and forcing investors to make new risk assessments, according to a fresh data analysis tool launched by a unit of S&P Global.
Over 90% of the world’s largest companies will have at least one asset financially-exposed to climate risks such as wildfires or floods by the 2050s, data provided by S&P Global Sustainable1 show. And more than a third of those companies will see at least one asset lose 20% or more of its value as the planet heats up.
“More than ever, investors and companies are seeking advanced analytics to respond to the financial impact of climate change," said James McMahon, chief executive of The Climate Service, which was acquired by S&P earlier this year. The new S&P dataset offers clients a way to predict the “future financial costs of changing hazard exposure for 20,000 companies, down to the rooftop level," he said.
It’s the latest in a string of product launches designed to help businesses and investors measure the financial risks they face as a result of global warming. JPMorgan Chase & Co., Fitch Ratings and Morningstar Inc. all unveiled similar products this month in response to growing client demand. (Bloomberg)
Tirthankar Das, Technical & Derivative Analyst, Retail, Ashika Stock Broking Ltd: On the technical front, Nifty long bull candle was formed on the daily chart with a minor upper shadow. Technically, this pattern indicates the emergence of sharp buying interest from the lower support. Now 18088-18092 could be the resistance for the near term while 17765 could be the support. Present price structure indicates of continuance of positive bias and our domestic Index is likely to head towards 18,300 in near term as it is the swing high of January 2022. Nifty also registered a bullish golden crossover in August (50-DEMA crossing above 200-DEMA) implying major shift of momentum from a medium-term perspective. Nifty also has given a conclusive breakout from eight month’s falling channel signalling end of corrective phase and breakout is well supported by sequential improvement in market breadth. However brutal sell-off in the US market after US inflation data for August, it is highly likely that the Fed will go for another rate hike of 75bps in its next FOMC meeting on 21st September and that would have its repercussion in our market as well. During the day Nifty is likely to open on a slight positive note and is likely to maintain a positive bias, a sustainable move above the 18,100 hurdle could push the index towards next overhead resistance at 18,350 in the short term.
Shares of Tamilnad Mercantile Bank made a dull stock market debut on Tuesday with the stock listing at ₹495 apiece on the NSE, a discount of more than 3% as compared to its IPO issue price of ₹510 per share. On the BSE, the stock started trading at ₹500 per share. (Full Report)
Rising inflation has sent companies back to the drawing board to try and work on wage costs and recalibrate hikes set to be offered during job changes.
The push for work-from-office will hit hurdles as employees want to factor in rising costs and demand more benefits, while companies are likely to hold back because of cost pressures.
“Rising inflation will impact next year’s hike because companies cannot afford to give the 9-10% increment that they gave this year, after two years of covid. Across sectors, joining bonuses, hikes during job shifts and quarterly bonuses will see a drop,“ said Anandorup Ghose, partner, Deloitte India. (Read More)
Prathamesh Mallya, AVP- research, non-agri commodities, and currencies, Angel One Ltd's outlook on:
Gold: We expect gold to trade lower towards 49580 levels, a break of which could prompt the price to move lower to 49160 levels.
Crude: We expect crude to trade higher towards 7240 levels, a break of which could prompt the price to move higher to 7350 levels.
Base Metal: We expect copper to trade lower towards 641 levels, a break of which could prompt the price to move lower to 631 levels.
The rupee witnessed a range-bound trading in early trade on Thursday as a firm American currency and concerns about hawkish US Fed offset the support from positive domestic equities.
At the interbank foreign exchange, the domestic unit opened at 79.53 against the dollar, then touched 79.47 in initial deals, registering a gain of 5 paise over its previous close.
On Wednesday, the rupee declined by 35 paise to close at 79.52 against the US currency.
The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.06 per cent to 109.72. (PTI)
The board of directors of IFL Enterprises Limited has fixed 21st September 2022 as record date for the issuance of bonus shares. IFL Enterprises shares will trade ex-bonus on 20th September 2022. The company's board has already approved and declared bonus shares in 1:1 ratio. After announcement of bonus shares record date, the small-cap stock has climbed to its life-time high of ₹158 apiece on BSE in early morning deals on Thursday. (Full Story)
3M India (Rs22,789): Capacity expansion may reduce procurement dependence from parent - BUY
KEC International (Rs435): Robust orderbook, NWC to improve by Q4FY23 - BUY
Shares of Bharat Electronics Ltd (BEL) started trading ex-bonus, a day ahead of the record date of its bonus issue of equity shares in the ratio of 2:1. The PSU defence stock was trading flat at ₹111 per share on the BSE in Thursday's early session. Bharat Electronics (BEL) fixed Friday, September 16 as the record date for its bonus shares issue. (Full Story)
Following correction in US markets and SGX Nifty opening with significant gap down, Indian stock market opened on a negative note on Wednesday but it witnessed buying interest at lower levels and recovered all the losses in second half of the session. The Nifty ended above 18,000 with only a loss of about four-tenths of a percent, while the Bank Nifty outperformed by a wide margin to end above 41400 with gains of over 500 points.
Buy or sell stocks for today: Vaishali Parekh of Prabhudas Lilladher has recommended Kotak Bank and Asian Paints shares to buy today. (Full Story)
Cryptocurrency prices traded in tight ranges as the clock ticked down to a major software upgrade of Ethereum, the most commercially important blockchain in the digital-asset sector. The decline in Bitcoin's price continued as the world's largest and most popular cryptocurrency was trading more than a per cent lower at $20,016. The global crypto market cap today was above the $1 trillion mark, even as it was almost flat in the last 24 hours at $1.03 trillion, as per CoinGecko. (Full Report)
Japanese shares rose on Thursday as investors bought back equities after a sharp drop in the previous session, with airline and railway stocks leading the recovery.
The Nikkei share average had gained 0.46% to 27,946.20 by the midday break, recovering from its worst session in three months. The broader Topix rose 0.36% to 1,954.38.
"It is a rebound from previous session. The market fell too much yesterday," said Seiichi Suzuki, chief equity market analyst at Tokai Tokyo Research Institute. "But the rebound is small because overnight gains in U.S. equities were limited." (Reuters)
Fitch expects the Indian economy to slow down and said in a statement released late on Wednesday that it would cut the country's gross domestic product growth forecast for the current fiscal year through March 2023 to 7% from 7.8%.
It also projected a further slowdown in growth to 6.7% in FY24 from its earlier estimate of 7.4%.
"We expect the economy to slow given the global economic backdrop, elevated inflation and tighter monetary policy," the rating agency said.
"Inflation moderated in August as crude oil prices eased, but the risk to food inflation persists given negative seasonality towards the end of this year," they added. (Reuters)
STOCK IN FOCUS
Finolex (CMP Rs.147)
Considering the leading position in the Agri-pipe segment and backward integration for the PVC Resin business, sustained cash flow and high dividend pay-out of 35% (average over FY16-FY22), we have BUY rating on the stock, with a Target Price of Rs165.
Intraday Picks
POWERGRID (PREVIOUS CLOSE: 233) BUY
For today’s trade, long position can be initiated in the range of Rs231- 229 for the target of Rs239 with a strict stop loss of Rs226.
TATASTEEL (PREVIOUS CLOSE: 109) BUY
For today’s trade, long position can be initiated in the range of Rs108- 107 for the target of Rs113 with a strict stop loss of Rs105.
BIOCON (PREVIOUS CLOSE: 305) BUY
For today’s trade, long position can be initiated in the range of Rs303- 301 for the target of Rs311 with a strict stop loss of Rs298.
The initial public offer (IPO) of Harsha Engineers got fully subscribed on the first day of subscription on Wednesday. The public offer received bids for 3,24,61,830 shares as against 1,68,63,795 shares on offer, translating into 1.92 times subscription.
Harsha Engineers International, a manufacturer of precision bearing cages, has fixed the price band at ₹314-330 per share for its ₹755-crore initial share sale. The public issue will conclude on Friday, September 16, 2022. (Read More)
Delta Corp, RBL Bank and Indiabulls Housing Finance Ltd to remain under the F&O ban list on Wednesday. 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 Report)
Gold price in the national capital declined ₹265 to ₹50,616 per 10 grams on Wednesday despite rupee depreciation, according to HDFC Securities.
The price of the yellow metal had touched ₹50,881 per 10 grams on Tuesday.
However, the COMEX spot price of gold was marginally higher at USD 1,705 per ounce compared to USD 1,701 per ounce on Tuesday.
Silver price in the national capital fell ₹786 to ₹57,244 per kilogram. On Tuesday, the level was ₹58,030 per kg. (PTI)
Staffing solutions provider CIEL Human Resources Services is well on its way towards hitting the capital market and expects to file a draft red herring prospectus by the first quarter of next financial year, a top official said on Wednesday.
The city-based company has aimed to generate top-line revenue of over ₹1,000 crore and another ₹400 crore through means of acquisitions, CIEL Group Executive Chairperson K Pandia Rajan said.
"Very much (it is on track). First component is, we wanted to raise ₹20 crore but we actually raised ₹23 crore of which ₹17 crore was through equity and ₹6 crore by means of CCD (compulsory convertible debenture). Second, we are into private equity raise which is on track right now. After that, we will file the draft red herring prospectus," he told reporters. (PTI)
Wholesale inflation eased to an 11-month low in August, as non-food and fuel inflation showed signs of letting up, official data showed. While overall inflation cooled for the third straight month in August, food inflation saw an uptick during the month. With global commodities and fuel prices starting to decrease, economists expect domestic prices to cool further in the coming months. (Full Story)
India's exports rose marginally by 1.62% to USD 33.92 billion, while trade deficit more than doubled to USD 27.98 billion in August due to increased crude oil imports, commerce ministry data showed on Wednesday.
The revised data showed that imports rose by 37.28% to USD 61.9 billion in August this year.
The preliminary data released by the ministry on September 3 had shown a 1.15 per cent decline in exports to USD 33 billion in August.
During April-August 2022-23, exports registered a growth of 17.68% to USD 193.51 billion. Imports during the five-month period of this fiscal grew by 45.74% to USD 318 billion. (PTI)
Road Transport Minister Nitin Gadkari on Wednesday said majority of automobile manufacturers in India are already exporting cars with six airbags, and there is a need to adopt similar safety norms for cars in the country, stressing that they should also think about safety of people using small economy cars.
Addressing the annual session of Automotive Component Manufacturers Association of India (ACMA), Gadkari pointed out that every year, some 5 lakh road accidents kill 1.5 lakh people and injure over 3 lakh.
"Majority of automobile manufacturers in India are exporting cars with 6 airbags. But in India, because of the economic model and cost, they are hesitating," he said. (PTI)
IT services firm Tata Consultancy Services became India’s most valuable brand in 2022, according to a report by market data and analytics firm Kantar, displacing long-time topper HDFC Bank.
TCS, with a brand value of $45.5 billion in 2022, is followed by HDFC Bank at $32.7 billion, Kantar’s BrandZ report said. HDFC Bank has held the No.1 position since the ranking was unveiled in 2014. (Full Story)
