Wall Street closed lower on Friday and the trend continued on Monday morning with Asian markets opening lower. Traders will keep an eye on a number of economic reports this week including US initial jobless claims and GDP data along with PMI figures from China.
WAPCOS files IPO papers with Sebi; govt to divest stake
Public sector firm WAPCOS Ltd has filed preliminary papers with capital markets regulator Sebi to float an Initial Public Offering.
The public issue will be a complete Offer For Sale (OFS) of up to 32,500,000 equity shares by the promoter, Government of India, according to the Draft Red Herring Prospectus (DRHP).
WAPCOS provides consultancy, and engineering, procurement and construction services in the field of water, power and infrastructure sectors. It comes under the Ministry of Jal Shakti.
The company also provides its services abroad, particularly in South Asia and across Africa in the fields of dam and reservoir engineering, irrigation and flood control. (PTI)
Tcs hits a fresh 52-week low
IT bellwether TCS hit a 52-week low of ₹2926.10 today breaking the previous low of ₹2953 on July 15. The fall came on strong volumes , with 66% shares (6.8 lakh) of traded quantity resulting in delivery .
India detects over 4,120 new covid cases and 20 deaths in a day
India reported around 4,129 new covid cases and 20 deaths in the last 24 hours, the health ministry data stated on Monday.
While Assam has reported 2742 active caseload, Gujarat has contributed 1012 active cases. Karnataka has reported 3182 active cases while Kerala has 13469 active cases. Maharashtra has 3702 active cases, Odisha 1329 cases, Rajasthan with 682 cases, Tamil Nadu has 5395 active cases; Uttarakhand 1077 cases, West Bengal has 3123 active cases so far. (Read More)
China’s yuan hits 28-month low despite fresh policy step, nears daily down-limit
China’s yuan touched a 28-month low against the dollar on Monday, only steps away from its downside trading limit, despite the central bank taking steps to rein in the currency’s weakness. The People’s Bank of China (PBOC) said it would raise the foreign exchange risk reserves for financial institutions when purchasing FX through currency forwards to 20% from the current zero, starting on Sept. 28. (Reuters)
Tata Motors sinks 6%; drags the auto index
Will continue to make small acquisitions: Harshil Mathur
Fintech unicorn Razorpay ventured into the offline market with its acquisition of Ezetap last month for $200 million, its biggest so far. In December last year, the company became the most valuable fintech startup in India, with a valuation of $7.5 billion.
We’ll continue to be a B2B operator, and we do not plan to compete with any of the consumer-end fintech operators, Razorpay CEO Harshil Mathur said in an interview. (Full Interview)
Metal index sinks, sheds 4% with all stocks in red
Rupee falls 43 paise to all-time low of 81.52 against US dollar
The rupee depreciated 43 paise to an all-time low of 81.52 against the US dollar in early trade on Monday as the strengthening of the American currency and risk-averse sentiment among investors weighed on the local unit.
Moreover, escalation of geopolitical risks due to conflict in Ukraine, a negative trend in domestic equities and significant foreign fund outflows sapped the investor appetite, forex traders said.
At the interbank foreign exchange, the rupee opened at 81.47 against the greenback, then fell to 81.52, registering a fall of 43 paise over its previous closing.
On Friday, the rupee slumped 30 paise to close at a fresh lifetime low of 81.09 against the US dollar. (PTI)
Harsha Engineers shares make strong debut in some cheers from investors
Shares of Harsha Engineers International Ltd made a strong debut on Dalal Street today. The stock listed on BSE at ₹444 per equity share, delivering around 36% premium to its allottees. India’s largest manufacturer of precision bearing cages company has delivered a stellar return to its investors despite weakness on Dalal Street in the last four straight sessions. (Read More)
Angel One and Ashika Stock Broking views on today’s market
Tirthankar Das, technical & derivative analyst, retail, Ashika Stock Broking Ltd.: On the technical front, Nifty ended the week on a negative note extended losses for the second consecutive week in a row, on the daily time frame it ended with a long bearish candle which sums up to a possible reversal in the market. However, on an overall basis the market continues to remain consolidative amidst the broader range of 16900-18000 and one need to recall that secondary corrections are a part of the bull market. Presently a trader needs to show patience and need to avoid trading aggressively in the market as the risk of a bare minimum correction of 38.2% of the entire rally from 15,183 to 18,096 comes around 16990 followed by 50% correction at 16650 remains. During the day index is likely to open with a gap down, tracking weak global cues. Formation of lower high- lower low signifies corrective bias. Hence, use intraday pullback towards 17400-17500 for creating short position for the target of 16900.
Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One Ltd: Technically speaking, the last session of correction has dampened the overall sentiments as the significant support of the unfilled gap got breached decisively, implying strong momentum in the sell-off. The weakness in the global markets and the upcoming key domestic data have put a sense of tentativeness among the market participants. As we have witnessed a decisive breach below the major support zone in Nifty, one should not rule out the possibility of it testing the immediate swing low of 17150 odd zone, while the sacrosanct support lies at the psychological mark of 17000. On the flip side, a series of resistances could be seen starting from 17500 to 17800 in the comparable period.
Considering the recent price action, traders are advised not to carry aggressive overnight bets for a while and should adapt the strategy to follow one step at a time and respect levels on either side. The unfavorable global scenario was one of the major catalysts for the fall last week; hence, one should stay abreast with global developments and the upcoming key domestic macro data.
Court stays ₹21,000 crore tax demand on online gaming firm
The Karnataka High Court has stayed the recovery of Goods and Services Tax (GST) demand amounting to nearly ₹21,000 crore and applicable interest and penalty on gaming company Gameskraft Technologies Pvt. Ltd. till the case is decided on merit.
The tax demand comes at a time a ministerial committee set up by the federal indirect tax body, the GST Council, is deliberating over what should be the tax rate for the online gaming sector and what should be the base on which the tax rate should be levied. (Full Story)
Powergrid tumbles 6% in early trading
Vedanta’s proposal to transfer ₹12,587 crore from reserves gets proxy advisory firm’s backing
Metals and oil conglomerate Vedanta Ltd’s proposal to reorganise capital and transfer ₹12,587 crore from general reserves to retained earnings has won the backing of US-based proxy advisory firm Glass Lewis.
Vedanta has convened a meeting of shareholders of the company on October 11 for approval of a scheme of arrangement.
In a notice to shareholders, Vedanta reasoned that the firm had over the years “built up significant reserves through transfer of profits”.
“The company is of the view that the funds represented by the general reserves are in excess of the company’s anticipated operational and business needs in the foreseeable future, thus, these excess funds can be utilised to create further shareholders’ value,” it said. (PTI)
Auto index remains under pressure as it sheds 2% in early trading; all stocks in red
Suzlon Energy stock in focus as board approves right issues at 45% discount
Suzlon Energy shares will be under scanner when the stock market opens today as the company board has given its approval to raise ₹1200 crore funds through right issues of company shares. As per the latest exchange filing by the company, the board of directors of the company has given its approval to issue 240 crore equity shares at ₹5 per share price. Suzlon Energy share price had closed at ₹9.15 on NSE on Friday’s session, which means the right issue of shares are offered at around a 45 per cent discount. (Read More)
Sterling collapses as investors fly into dollars
Sterling slumped to a record low on Monday, prompting speculation of an emergency response from the Bank of England, as confidence evaporated in Britain’s plan to borrow its way out of trouble, with spooked investors piling in to U.S. dollars.
Broadening worry that high interest rates will hurt growth hit Asia’s currencies and equities too, with exporters from Japanese carmakers to Australian miners hit hard.
The pound plunged nearly 5% at one point to $1.0327, breaking below 1985 lows. Moves were exacerbated by thinner liquidity in the Asia session, but even after stumbling back to $1.05 the currency is still down some 7% in just two sessions.
“You’ve got to buy the dollar as a risk off-trade. There is nowhere else to go,” said Rabobank strategist Michael Every in Singapore. (Reuters)
Indices are off to a rough start as Sensex and Nifty sink 700 and 200 points, respectively.
Almost all stocks are in red with IndusInd and Powergrid dropping around 3% each
Subsidies frozen for erring EV makers
The department of heavy industries has found that certain electric vehicle (EV) original equipment manufacturers (OEMs) have violated the government’s phased manufacturing plan (PMP), a critical eligibility criteria against which it disburses incentives under the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME-II) scheme, said the secretary of the department Arun Goel.
The department is now implementing a system to introduce traceability in the way manufacturers share records of the domestic value addition (DVA) in their products with the government, Goel said. (Full Story)
Reliance Securities Stock in Focus for today: Voltas
STOCK IN FOCUS
Voltas (CMP Rs.901)
Considering the decent earnings growth, higher volume, and improved business visibility over the medium-term, we have our BUY rating on the stock, with a Target Price of Rs1,110.
CUMMINSIND (PREVIOUS CLOSE: 1219) SELL
For today’s trade, short position can be initiated in the range of ₹1225-1235 for the target of Rs.1190 with a strict stop loss of ₹1252.
ESCORTS (PREVIOUS CLOSE: 2077) SELL
For today’s trade, short position can be initiated in the range of ₹2085-2100 for the target of Rs. 2060 with a strict stop loss of ₹2120.
GLENMARK (PREVIOUS CLOSE: 385) BUY
For today’s trade, long position can be initiated in the range of ₹380- 382 for the target of Rs.394 with a strict stop loss of ₹377.
Sensex sinks at preopen and goes below 57,500 at preopen on Monday
Harsha Engineers International will make its debut on the bourses today.
Oil’s retreat deepens as dollar’s surge looms over commodities
Oil fell again as the dollar’s surge to a fresh peak and mounting recessionary concerns threatened global demand, deepening a rout.
West Texas Intermediate sank toward $78 a barrel as a Bloomberg gauge of the US currency rallied to an all-time high. The US benchmark crude collapsed more than 7% last week to end at the lowest close since mid-January. The decline was its fourth straight weekly drop, the longest losing run this year.
Crude is on track for its first quarterly slump in more than two years as central banks including the Federal Reserve raise interest rates aggressively, hurting the outlook for energy demand and sapping investors’ appetite for risk. The Fed’s tightening has helped to drive the US dollar to a record, making commodities priced in the currency more expensive for overseas buyers. (Bloomberg)
Mauritius-based FII invests in small-cap company. Share hits upper circuit
Positional investors who follow FII DII data and scan their latest buying and selling patterns, there is a piece of stock market news for them. Mauritius-based foreign portfolio investor (FPI) Vikasa India Eif 1 Fund has bought a stake in a small-cap company listed on BSE. As per the BSE bulk deal data available on the BSE website, Vikasa India Eif 1 Fund — Incube Global Opportunities has bought 51,000 shares of BSE-listed small-cap company SM Gold. They bought these shares in a bulk deal executed on 23rd September paying ₹40.15 per share. This means the foreign institutional investor (FII) has invested ₹20,47,650 in the small-cap company that ended with a market cap of ₹40 crore on Friday. (Read More)
Stocks to Watch: Harsha Engineers, Kotak, Reliance, ONGC, Coal India, Nestle India, Vodafone Idea, BPCL, ONGC, Reliance Capital
Ambuja Cements, Delta Corp, Vodafone Idea, Zee Entertainment, Can Fin Homes, and Punjab National Bank will be under the F&O ban list for Monday. These stocks will be under the ban for the F&O segment as they have crossed 95% of the market-wide position limit (MWPL), as per the NSE. (Full Story)
Geojit Financial Services on today’s market: Buy-on-dips strategy which worked since the June lows need not work now
Dr V K Vijayakumar, chief investment strategist at Geojit Financial Services: “The global macro construct is not favourable for equity markets in the short run. The dollar index above 113 and the US 10-year yield at 3.73 % is likely to aggravate FPI outflows which have been gathering momentum during the last 3 days. The probability of a global recession is also increasing since the Fed continues to be ultra hawkish. The 5% cut in MSCI World Index last week indicates the bearish undertone of global equity markets. In this scenario, the buy-on-dips strategy which worked since the June lows need not work now. Investors have to be cautious and remain vigilant.
However, India will outperform both in economic growth and market performance. Therefore, selective buying can be done in domestic economy-facing segments like financials, autos, capital goods and select FMCG on sharp market declines.”
Nifty could test key support of 17,166 at open
The Nifty could test its support of 17,166 at the opening, derivatives trade on SGX Nifty indicates Monday morning.
The SGX Nifty, which derives its value from the Nifty, traded down 17,179 points Monday morning, while the Nifty closed at 17,327 on Friday. The price data signals a gap down of around a per cent from the weekend close. (Read More)
INDIA BONDS-Bond yields seen higher, tracking relentless rise in U.S. peers
Indian government bond yields are expected to rise in early trading on Monday, tracking an unabating spike in U.S. yields, as investors fear that central banks globally will keep tightening monetary policy to tackle soaring inflation.
The benchmark Indian 10-year government bond yield is seen in a 7.40%-7.45% band, a trader with a private bank said. The yield ended at 7.3926% on Friday, a two-month high, to log a 12-basis points gain for the week.
“Till the time U.S. yields do not stabilise, (the) selloff in local bonds will continue,” the trader said. “As the week progresses, market will await the local central bank policy decision, with a 50 basis points hike on the cards.” (Reuters)
Piramal, Zurich Insurance mull joint bid for Reliance General Insurance
Piramal Group and Zurich Insurance plan to form a joint venture for taking over Reliance General Insurance, a subsidiary of debt-ridden Reliance Capital undergoing a resolution process.
Both Piramal and Zurich, which had submitted separate non-binding bids for the general insurance business of Reliance Capital in August, may hold 50 per cent each in the proposed special purpose vehicle (SPV), sources said.
Zurich confirmed that it has made a separate offer to acquire a stake in Reliance General Insurance Company as part of the resolution process under Insolvency and Bankruptcy Code (IBC).
“The terms of any transaction are subject to negotiations and there can be no assurance that a transaction will take place,” the company said in an email reply. (PTI)
Buy or sell: Vaishali Paresh of Prabhudas Lilladher recommends 2 stocks to buy today — Sept 26
Following weak global sentiments post-US Fed interest rate hike, the Indian stock market ended in the negative zone on the third straight session on Friday. Nifty 50 index dipped 302 points and closed at 17,327, Sensex crashed 1020 points and ended at 58,098 whereas Bank Nifty finished at 39,546 levels, 1084 points below its previous close. Vaishali Parekh, Vice President – Technical Research at Prabhudas Lilladher believes that major support for Nifty 50 index lies at 17,000 levels and more weakness can be expected if this crucial 200 DMA support is broken.
Here we list out full details in regard to stocks recommended by Vaishali Parekh of Prabhudas Lilladher:
1] Voltas: Buy at ₹900, target ₹945, stop loss ₹880; and
2] NIIT: Buy at ₹320, target ₹338, stop loss ₹312.
India sees 334% jump in defence exports in last five years
Within five years India’s defence exports have grown by 334 per cent, and the country is now exporting to over 75 countries its defence products, according to the government.
India has registered a growth of 334 per cent in its defence exports and has begun to export defence products over 75 countries, informed government. (Read More)
JioMart amps up festive season offerings to take on Flipkart and Amazon
Reliance Retail’s digital commerce platform JioMart is gearing up for the festive season as its readies to compete with the likes of Flipkart and Amazon this year. The platform will operate like a marketplace offering multiple brands with items spanning electronics, consumer durables, fashion and lifestyle, beauty, home and kitchen and grocery. (Read More)
Kotak Group rejigs senior management; Iyer made CEO of investment advisory biz
The Kotak Group on Friday announced a senior management rejig which will see Lakshmi Iyer take charge as the chief executive of its investment advisory business.
Iyer, the chief investment officer for fixed income and head of products in the asset management business, succeeds Srikanth Subramanian who was earlier appointed as the head of Kotak Cherry.
Deepak Agarwal will now lead the fixed income investment team as chief investment officer – fixed income, at Kotak Mahindra Asset Management Company (KMAMC), while Abhishek Bisen has been elevated as head, fixed income, as per a statement. (PTI)
FPIs pump in ₹8,600-cr in Sep; pace of investment slows
After infusing more than ₹51,000 crore last month, foreign investors have slowed down the pace of equity buying in India in September so far, as they invested a little over ₹8,600 crore, on sharp depreciation in rupee.
Going forward, Foreign Portfolio Investors (FPIs) are unlikely to buy aggressively amid rising dollar, VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, said.
Indication of further rate hike by the US Federal Reserve, fears of a recession, depreciating rupee and continued tensions in Russia and Ukraine will affect FPI flows, Basant Maheshwari, smallcase manager and Co-founder, Basant Maheshwari Wealth Advisers LLP, said. (PTI)
India’s forex reserves fall to near two-year low
India’s foreign exchange reserves fell for a seventh straight week, dropping to $545.652 billion in the week to September 16, Reserve Bank of India’s weekly statistical supplement showed on Friday. This is the lowest level since 2 October, 2020.
Though the fall in reserves is partly due to valuation changes, analysts believe a large part of the fall has been on account of the Reserve Bank of India’s intervention in the currency market to prevent the rupee from depreciating more sharply against dollar. (Read More)
Harsha Engineers IPO share listing today. Experts predict handsome gains
Harsha Engineers IPO listing date has been fixed and shares of India’s largest manufacturer of precision bearing cages are going to hit Dalal Street on 26th September 2022 i.e. today. As per the information available on BSE website, effective from Monday, September 26, 2022, the equity shares of Harsha Engineers International Limited shall be listed and admitted to dealings on the exchange in the list of ‘B’ group of securities. Hence, Harsha Engineers shares will be a part of Special Pre-open Session (SPOS) on Monday, September 26, 2022. (Read More)
Dow sinks to 2022 low on Friday as recession fears roil world markets
Stocks fell sharply worldwide Friday on worries an already slowing global economy could fall into recession as central banks raise the pressure with additional interest rate hikes.
The Dow Jones Industrial Average fell 1.6%, closing at its lowest level since late 2020. The S&P 500 fell 1.7%, close to its 2022 low set in mid-June, while the Nasdaq slid 1.8%.
The selling capped another rough week on Wall Street, leaving the major indexes with their fifth weekly loss in six weeks.
Energy prices closed sharply lower as traders worried about a possible recession. Treasury yields, which affect rates on mortgages and other kinds of loans, held at multiyear highs. (AP)
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