PremiumFed Chair Jerome Powell will give a speech at an annual economic conference in Jackson Hole, Wyoming on Thursday. Investors are hoping Powell will offer clarity on further rate hikes. Asian markets ended with impressive gains on Thursday and the European market started on a positive note.
Benchmark indices nosedived towards the end to shed around 0.5% after remaining comfortably green throughout the day. Sensex pared 310 points and closed at 58,774. Nifty tumbled by 82 points to close at 17,522.
Most of the indices ended in red but IT, Pharma, and Metal stocks contributed the most toward the decline. PSU Bank, Realty and Consumer Durables were the only indices to remain in the green at the end of the session.
Among stocks, Adani Ports, Bajaj Finance and Cipla shed the most, whereas Shree Cement and Divi's Laboratories made decent gains.
Asian market otherwise had a healthy day as investors awaited the US Federal Reserve's Jackson Hole conference for clues on the pace of rate hikes.
Japan's Nikkei snapped a five-session slide on Thursday led by gains in drug makers and technology stocks. The Nikkei share average rose 0.58%.
Hong Kong's benchmark Hang Seng index posted its biggest rise in nearly four months on Thursday. The Hang Seng index rose 3.6%.
China shares also rose, accelerated by Beijing's new economic stimulus measures and a pause in the yuan's slide. The Shanghai Composite Index gained about 1%.
European shares also gained on Thursday morning after GDP data from the continent's largest economy, Germany, beat expectations. However, nervousness was palpable among investors ahead of minutes from the ECB's last policy meeting.
Around 15.47 lakh new members joined the ESIC-run social security scheme in June 2022, according to official data released on Thursday.
The latest data is part of a report -- Payroll Reporting in India: An Employment Perspective - June 2022 -- released by the National Statistical Office (NSO).
It showed that the gross new enrolments with Employees' State Insurance Corporation (ESIC) rose to 1.49 crore in 2021-22, from 1.15 crore in 2020-21. It was 1.51 crore in 2019-20 and 1.49 crore in 2018-19. (PTI)
India has built up buffers against cyclical difficulties and has ample foreign exchange reserves to withstand pressure on credit worthiness, S&P Global Ratings said on Thursday.
S&P Director Andrew Wood said the country has a strong external balance sheet and limited external debt, making debt servicing not so expensive. (Full Report)
State-owned Power Grid Corporation has acquired a special purpose vehicle Neemuch Transmission which has been set up to establish an inter-state transmission link to evacuate power from Neemuch special economic zone.
Power Grid Corporation has been selected as the successful bidder under tariff-based competitive bidding for the transmission project.
The corporation on August 24 acquired Neemuch Transmission Ltd from the bid process coordinator, REC Power Development and Consultancy Ltd, a BSE filing stated. (PTI)
Czar of small-cap stocks in India, Porinju Veliyath has added Rubfila International shares in his stock portfolio. The ace Indian investor has bought stake in this stock through a bulk deal on 24th August 2022. In this deal, the marquee investor has invested in this small-cap stock that has more than doubled shareholders' money in rebound after Covid-19 sell-off. After Covid-19 sell-off this stock has shot up from around ₹25 to ₹87 apiece levels, delivering around 250 per cent return to its shareholders in this little over two years time. So, Rubfila International shares are one of the multibagger stocks that Indian stock market has delivered in last two years. (Full Story)
A rise in companies fleeing the UK stock market is another blow to London’s status as Europe’s top financial center, adding to the gloom around a lack of initial public offerings.
US-based tech investor Allied Minds Plc said Wednesday it wants to delist from the London Stock Exchange, blaming its exit on the “prohibitively high" cost of maintaining a premium listing. Mining giant BHP Group earlier this year scrapped its top-tier quotation in the UK in favor of a primary listing in Australia, giving up its place in Britain’s blue-chip FTSE 100 index.
The exits are hampering efforts to boost London’s cachet as a global financial nexus and a premier listing venue. The government has been working especially hard to court startups and tech companies, doling out tax breaks and easing the path to public markets. But since the Brexit vote in 2016, the UK has been plagued by slowing IPO activity, high-profile flops and political turmoil. (Bloomberg)
The Indian life insurance industry grew at a compounded annual growth rate (CAGR) of 11%, in terms of total premium and 17% in terms of new business premium, during 2017-22, according to a report by Benori Knowledge. (Full report)
The euro rebounded back above parity with the dollar on Thursday as the U.S. currency's recent rally ran out of steam and investors waited to see whether Federal Reserve Chair Jerome Powell would sound a more hawkish tone at a meeting this week.
A more bullish mood across markets also helped the euro, as well as currencies linked to broad investor sentiment such as the Australian dollar, which rallied nearly 1%. (Reuters)
Italian automaker Automobili Lamborghini is intensifying efforts to bring its newly launched global models to India, seeking to strengthen its position in the country's super luxury car segment, a senior company official said.
The company which on Thursday launched the Huracán Tecnica model in India with a starting price of ₹4.04 crore (ex-showroom) is also working on how soon it can bring to India the Urus Performante SUV that was globally unveiled last week.
"We are always trying hard on how we bring the new models as fast as possible to the (Indian) market. We are always working in that direction," Lamborghini India Head Sharad Agarwal told PTI. (PTI)
The union government has advised the edible oil manufacturers, packers, and importers to declare net quantity on packages in volume without temperature in addition to declaring the same in weight, as per an official statement released on Thursday.
They have also been advised by the department of Consumer Affairs to correct their labeling of declaring net quantity in the units of volume without mentioning temperature with weight of the product, within six months from the date of the direction issued i.e. upto January 15, 2023, Ministry of Consumer Affairs, Food & Public Distribution said in a statement. (ANI)
All eyes are on the Jackson Hole conference that starts today in Wyoming, US, where biggest names of the economic and financial world come together every year to discuss most important issues of the day. "One thing that you can say about the Jackson Hole symposium," Alan Greenspan, chairman of the US Federal reserve for five terms, once said, "is that we all put the symposium on our calendar each year and then adjust everything else." The most-awaited event at the conference is Fed Chairman Jerome Powell's speech on Friday in which he is expected to shine some light on future policy moves. (Full Story)
Anlaysts at brokerage ICICI Securities attended Tata Power Company’s analyst meet during which the company highlighted the growth strategy for its several businesses over FY23-FY27. Tata Power has a clear focus toward clean and green growth as evident from the fact that 80% of the estimated ₹1 trn capex over FY23-FY27 will be on green businesses, it said in a note. (Full Report)
Overseas investors are turning into net buyers of key emerging markets bonds in Asia for the first time in months, hinting at more significant inflows if the Federal Reserve goes for a more calibrated rate tightening.
The inflows suggest foreign funds were betting that the Fed will pivot and become less hawkish amid signs of an economic slowdown. (Full Story)
India's strong growth offers room for the Reserve Bank of India to raise rates by another 60 basis points as the central bank seeks to stamp out high inflation, DBS Group Research said in a note on Thursday.
India's gross domestic product (GDP) in the first quarter of current fiscal year likely surged 16% year-on-year based on most leading indicators, the research house estimated.
Favourable base effect after the onset of Delta coronavirus variant last year will additionally lift the year-on-year GDP numbers, Radhika Rao, senior economist at DBS Group Research, wrote in the note. (Reuters)
UPL and SBI Life were among the top gainers on Thursday, while Adani Ports and Cipla lagged.
Tokyo stocks closed higher Thursday, tracking overnight US gains ahead of a meeting of global central bankers that may offer clues about the future pace of interest rate hikes.
The benchmark Nikkei 225 index snapped a five-day losing streak and gained 0.58%, or 165.54 points, to end at 28,479.01, while the broader Topix index rose 0.48%, or 9.42 points, to 1,976.60. (AFP)
Japanese Internet services and e-commerce group, Rakuten’s India unit, is opening a new office in Bengaluru on Thursday, in a bid to expand globally. The new facility houses product, engineering, and advanced research and is Rakuten Group’s “largest outside Japan," according to the company. (Full Story)
Indian Oil Corp, the country's top refiner, has set a 2046 net zero carbon emissions goal, its chairman S. M. Vaidya said at annual shareholders meet on Thursday. India, one of the world's biggest greenhouse gas emitters, is aiming to reach net zero emissions by 2070.
Vaidya said IOC has prepared a roadmap to achieve net zero Scope 1 and 2 emissions by 2046. Scope 1 and 2 emissions relate to emissions from crude refining and energy consumption. (Reuters)
The initial public offer (IPO) of DreamFolks Services Ltd opened for subscription on 24th August 2022 and the public issue will remain open for bidding till 26th August 2022. The public offer worth ₹562.10 crore got fully subscribed on day one of bidding. On day two of bidding, the retail portion of the public issue has been subscribed 9.99 times by 10:34 AM. This strong response by retail investors has influenced grey market as well. As per the market observers, shares of DreamFolks Services Ltd are available at a premium of ₹83 in grey market today. (Read More)
China Tourism Group Duty Free Corp. slipped early in its Hong Kong trading debut, after raising HK$16.2 billion ($2.1 billion) in the Asian financial hub’s biggest listing this year.
Shares of the world’s largest travel retailer dropped to HK$157.90 as of 1:08 p.m. local time. They were sold at HK$158 each, above the mid-point of a marketed range. The debut was delayed to the afternoon as Hong Kong Exchanges & Clearing Ltd. scrapped its morning trading session due to tropical storm Ma-on.
Proceeds from the retailer’s offering boosted this year’s tally for new-share sales in Hong Kong to $7.2 billion, according to data compiled by Bloomberg. Still, that amount is about 80% lower than the same period last year, with large-size offerings becoming scarce globally as rising interest rates and high inflation keep big issuers on the sidelines. (Bloomberg)
Shares of Rama Steel Tubes Ltd surged to hit the upper circuit level of 5% to ₹115 apiece on the BSE in Thursday's early trading session, as the metal stock started ex-split, a day ahead of its record date for the sub-division of equity shares in the ratio of 5:1. (Full Story)
The rupee appreciated 6 paise to 79.80 against the US dollar in opening trade on Thursday, tracking its Asian peers and a positive trend in domestic equities.
At the interbank foreign exchange, the domestic unit opened at 79.80 against the dollar, registering a gain of 6 paise over its previous close.
On Wednesday, the rupee depreciated 3 paise to close at 79.86 against the US dollar. (PTI)
Shares of NDTV Ltd continued to climb for the second consecutive day on Thursday and touched the upper circuit limit of ₹407.60 on the National Stock Exchange amid the Adani group making an offer to take over the media firm.
On NSE as well as BSE, the scrip jumped 5% in opening trade and touched the respective upper circuit limits.
The company's shares rose 5% to ₹407.60 apiece on NSE, also its 52-week high, after closing at ₹388.20 on Wednesday. (PTI)
After hitting upper circuit on Wednesday session, RBL Bank shares have opened upside in early morning deals on Thursday. RBL Bank share price today opened with an upside gap and went on to hit intraday high of ₹128.25 apiece levels, logging near 5.35 per cent intraday gain in early morning session. However, the stock had hit upper circuit on Wednesday that means the banking stock has surged from around ₹104 to ₹128.25 levels in 2 sessions, logging around 23 per cent rise in this period. (Full Story)
Sameet Chavan, chief analyst-technical and derivatives, Angel One Ltd: Our markets started the session on a soft note by shrugging off unfavorable cues from the global bourses. During the remaining part of the session, both counterparties made several attempts to show their dominance; but eventually, the bulls turned out victorious as we witnessed good traction in the last hour to reclaim the 17600 mark on a closing basis.
Amid a mild tug of war yesterday, our markets managed to close in the green by a small margin. If we observe meticulously, the Nifty kept oscillating at merely 70-80 points throughout the session, which is a sign of consolidation. The real action was seen outside the index as a lot of individual stocks gave excellent moves in the latter half. For the coming session, we expect this consolidation to continue for key indices. As far as levels are concerned, 17650 – 17710 is to be seen as an immediate resistance zone and momentum traders should ideally look to lighten up longs around it from an expiry perspective. On the flip side, 17525 – 17450 remains to be an intraday support.
Globally, things have once again become slightly turbulent and hence, it’s advisable not to get complacent here. Rather, following one step at a time is the appropriate strategy
Europe’s politicians have already earmarked about 280 billion euros ($279 billion) to ease the pain of surging energy prices for businesses and consumers, but the aid risks being dwarfed by the scale of the crisis.
With Russia squeezing gas deliveries and power-plant outages further sapping supply, wholesale energy prices have soared to more than 10 times their seasonal average over the past five years. Tensions have intensified as Moscow prepares to shut the key Nord Stream pipeline on Wednesday for maintenance, reviving concerns about a long-term halt that would threaten efforts to secure sufficient reserves for the winter. (Bloomberg)
The recent hike in domestic gas allocation for CNG has created room for Indraprastha Gas (IGL)/ Mahanagar Gas (MGL) to defend their respective Ebitda per scm till US$ 70/60 per mmbtu Spot price (assuming APM price is capped at current level), as per global brokerage Jefferies. (Read More)
New Delhi Television Ltd (NDTV) on Thursday said Adani Group needs regulatory approval to buy its biggest shareholder, as its founders - who own the target firm - are barred from trading in securities markets.
Indian billionaire Gautam Adani's conglomerate on Tuesday said it was seeking a controlling stake in the news channel. NDTV said the action "was executed without any input from, conversation with, or consent of the NDTV founders".
NDTV founders Radhika and Prannoy Roy took a 4 billion rupee ($50 million) loan from little-known firm VCPL over 10 years ago, and in exchange issued warrants allowing VCPL to buy 29.18% of the news group.
The Adani Group said on Tuesday it had acquired VCPL and is exercising those rights. (Reuters)
STOCK IN FOCUS
Kalpataru Power (CMP Rs.371)
We have a BUY rating on KPP, with a SOTP-based Target Price of Rs535.
Intraday Picks
HDFC (PREVIOUS CLOSE: 2,439) BUY
For today’s trade, long position can be initiated in the range of Rs2,432- 2,420 for the target of Rs2,495 with a strict stop loss of Rs2,394.
GRANULES (PREVIOUS CLOSE: 309) BUY
For today’s trade, long position can be initiated in the range of Rs309- 307 for the target of Rs319 with a strict stop loss of Rs302. NESTLEIND (PREVIOUS CLOSE: 19,671) BUY For today’s trade, long position can be initiated in the range of Rs19,490- 19,400 for the target of Rs19,940 with a strict stop loss of Rs19,340.
RBL Bank has been put on the list of banned securities under the F&O segment for Thursday trading as it has crossed 95% of the market-wide position limit. Websol Energy System and Consolidated Construction Consortium will be declaring their June quarter results and thus will be in focus. (Full Story)
Life Insurance Corporation (LIC) of India or LIC stock will be in focus today as shares of insurance behemoth are going to trade ex-dividend on Thursday. In its previous exchange filing, LIC of India has informed Indian exchanges that the board of directors of the insurance company has approved dividend payment of ₹1.50 per equity share to its shareholders for the financial year 2021-22. The company board also fixed 26th August 2022 as record date for finalising eligible shareholders for dividend payment. (Full Details)
Bharti Airtel promoter Bharti Telecom will buy a 3.33% stake from Singtel for 2.25 billion Singapore dollars or about ₹12,895 crore in 90 days, the telecom operator said on Thursday.
Bharti Group chairman Sunil Bharti Mittal's family and Singtel own Bharti Telecom (BTL).
"Singtel and its affiliates have entered into an agreement to transfer approximately 3.33 per cent shares to BTL for an aggregate amount of approximately 2.25 billion Singapore dollars, leaving direct shareholding of Singtel and Bharti in Airtel at around 10 per cent and 6 per cent respectively," Bharti Airtel said in a regulatory filing on Thursday.
The acquisition is to be completed over a period of 90 days. (PTI)
Indian government bond yields are expected to rise marginally in early trades on Thursday, tracking higher U.S. yields and global oil prices.
The benchmark 10-year government bond yield is likely to trade in 7.27%-7.32% band, a trader with a private bank said. The yield has risen 11 basis points in the last five sessions. It had ended at 7.2858% on Wednesday.
"All factors have turned bearish for bonds, and we do not expect any major buying today or even tomorrow," the trader said. (Reuters)
Shares of PSU mining firm BEML plunged nearly 2% on the BSE in Wednesday's early deals as the board will meet on August 24, 2022 to decide on the record date to determine eligible shareholders for issuing shares by BEML Land Assets as part of the demerger scheme. BEML to fix a record date to determine eligible shareholders for issuing shares by BEML Land Assets as part of the demerger scheme. (Full Story)
India can add another 23.7GW of wind energy capacity in the next five years, according to a study.
Global Wind Energy Council and MEC Intelligence (MEC) on Wednesday released the report titled "Renewing wind growth to power the energy transition: India Wind Energy Market Outlook 2026".
According to a statement, the third annual edition looking at the wind energy outlook in India highlights wind energy's critical link to India's green energy transition. (PTI)
Only one stock has been put under the ban for trade on Thursday, August 2, 2022 under the futures and options (F&O) segment by the National Stock Exchange (NSE). The counter has been put on ban under the F&O segment as it has crossed 95% of the market-wide position limit (MWPL), as per the NSE. (Read More)
The country is on course to build more national highways and rail lines during the decade ending 2025 than it has cumulatively done between 1950 and 2015, a report said on Wednesday.
The total length of national highways is expected to reach 1.8 lakh kilometres, while that of the railway lines 1.2 lakh kilometres by 2025, Bank of America Securities India said in a report.
Between 1950 and 2015, the nation built only 4,000 kilometres of national highways, taking the total length to 77,000 kilometres in 2015. However the highway length is on course to cross 1.8 lakh kilometres by 2025 -- more than double the existing length -- in ten years time. (PTI)
Adani Group on Tuesday indirectly acquired a 29.2% stake in New Delhi Television Ltd by buying VCPL, and offered to buy another 26% from the open market, NDTV said the move to take control of the media company's major shareholder was without consent from the firm or its founders.
Vishvapradhan Commercial Pvt. Ltd (VCPL), which owned convertible debentures (warrants that provide for the conversion of debt to equity) in RRPR Holding Pvt. Ltd that in turn owned 29.18% of NDTV Ltd, is a wholly-owned subsidiary of AMG Media Networks Ltd (AMNL), the media arm of Adani Enterprises Ltd (AEL). It had acquired the debentures in 2009-10 in return for a loan amounting to ₹404 crore it extended to the promoter holding company. (Full Story)
The rupee consolidated in a narrow range and depreciated 2 paise to close at 79.81 (provisional) against the US dollar on Wednesday.
At the interbank foreign exchange market, the domestic currency opened at 79.84 per dollar. It hovered in a range of 79.68 to 79.87 during the session.
The domestic unit finally settled at 79.85, down 2 paise over its previous close of 79.83. (PTI)
Retailers are banking on 5G and 5G- enabled smartphones to stimulate demand ahead of the festive season as top brands prepare to launch models based on the technology and telcos initiate new services. A section of retailers expect 5G smartphone prices to fall from ₹15,000 to below ₹10,000 within six months. (Full Story)
China Tourism Group Duty Free Corp., which raised HK$16.2 billion ($2.1 billion) in Hong Kong’s biggest listing this year, will have its debut delayed due to tropical storm Ma-on.
The shares were sold at HK$158 each, above the mid-point of a marketed range, and when the Hong Kong stock was priced last week, the discount to the firm’s equities trading in Shanghai was about 27.5%. Hong Kong Exchanges & Clearing Ltd. scrapped trading of stocks and derivatives during the morning session, with trading scheduled to start at 1 p.m. (Bloomberg)
Illiquidity in secondary corporate debt market is a global issue and so focus should be on further deepening primary market that has grown nearly four-folds in a decade to over ₹40 lakh crore, an RBI official said.
Addressing a Bombay Chamber of Commerce & Industry event on Wednesday, Reserve Bank deputy governor T Rabi Sankar said the concerted efforts by regulators and government have seen corporate bond outstanding touching ₹40.20 lakh crore in FY22 from ₹10.51 lakh crore in FY12. While annual issuances during this period have increased from ₹3.80 lakh crore to close to ₹6 lakh crore.
During this period, the secondary market volume spiked from ₹4.5 lakh crore to ₹14.37 lakh crore, showing clearly that secondary trading has not risen in consonance with the size of the market, he said. (PTI)
Geopolitical issues, a weakening rupee, recessionary concerns across developed markets and high commodity prices had a bearing on the June quarter performance of India Inc., said experts. Managements have indicated that recent input price corrections should drive a margin recovery in Oct-March. (Full Story)
Stocks ticked higher Wednesday as Wall Street waits for a highly anticipated speech about interest rates at the end of the week.
The S&P 500 edged up 12.04 points, or 0.3%, to 4,140.77, as traders overall again held off on making big moves. The Dow Jones Industrial Average added 59.64, or 0.2%, to 32,969.23, and the Nasdaq composite rose 50.23, or 0.4%, to 12,431.53. (AP)
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