PremiumAfter a long weekend, benchmark indices will open on Tuesday amidst the news of weak economic data and lending rate cuts in China which raises the concerns of a recession. Wall Street gained despite this news on Monday and Asian traders are trading cautiously but mostly in green on Tuesday.
STOCK IN FOCUS
Finolex (CMP Rs.143)
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
ASHOKLEY (PREVIOUS CLOSE: 147) BUY
For today’s trade, long position can be initiated in the range of ₹144- 146 for the target of Rs.152 with a strict stop loss of ₹142.
INDIGO (PREVIOUS CLOSE: 2014) SELL
For today’s trade, short position can be initiated in the range of ₹2035-2050 for the target of Rs.1980 with a strict stop loss of ₹2065.
WIPRO (PREVIOUS CLOSE: 436) BUY
For today’s trade, long position can be initiated in the range of ₹430- 434 for the target of Rs.450 with a strict stop loss of ₹427.
Future Lifestyle Fashions will be in focus as it declares its June quarter earnings today. Balrampur Chini Mills, Delta Corp, and Tata Chemicals securities will be in the ban period for the F&O segment as they have crossed 95% of the market-wide position limit. (Full Report)
As India is celebrating the completion of 75 years of independence, here we list out three such chemical stocks that have given multibagger return since the last Independence Day.
Fine Organic Industries, Gujarat Fluorochemicals Limited and Gujarat Narmada Valley Fertilisers & Chemicals (GNFC) are the three multibagger chemical stocks that have given returns as much as up to 115% in a year's period. (Full Report)
Oil declined for a third day as a deepening global slowdown looked set to coincide with an increase in supply from OPEC producers.
West Texas Intermediate futures slid toward $88 a barrel after falling around 5% over the previous two sessions. Mounting signs of an economic downturn swept through markets on Monday as bearish US data including rapidly cooling manufacturing followed weaker-than-expected Chinese numbers.
Investors are also facing the prospect of rising supply as demand moderates, while prompt time spreads are signaling concerns over tight global markets are easing. Libya is pumping more and Iran is edging closer to reviving a nuclear deal that will likely see higher crude flows. (Bloomberg)
The death of Indian billionaire Rakesh Jhunjhunwala puts a spotlight on the nearly $4 billion worth of stocks held by the famed investor, whose trades were closely scrutinized.
Jhunjhunwala was among the most influential market voices in Asia’s third-biggest economy, with an intense following among the nation’s growing horde of retail investors. The man also known as “Big Bull" was a fierce backer of the India growth story.
Jewelery retailer Titan Co. was one of the largest and most profitable investments for the veteran trader and his wife Rekha Jhunjhunwala, making up for more than a third of their portfolio, according to data compiled by Bloomberg. (Full Report)
Leading bourse National Stock Exchange (NSE) on Sunday said that shareholders have approved the appointment of Ashishkumar Chauhan as its managing director and chief executive. The Extra Ordinary General Meeting (EOGM) of NSE was held on August 11, according to a statement. Shareholders approved the appointment of Chauhan, who was the MD and CEO of rival bourse BSE, with 99.99% votes. He assumed charge as NSE chief on July 26. PTI
Mahindra and Mahindra on Monday said it will launch five electric vehicles by 2027 on its new platform Inglo, starting with the first in December 2024. The company expects as much as 30% of its sales to come from EVs by 2027. The first launch will be the XUV e8 in December 2024, with the remaining four planned over the next two years. (Full Report)
Inflationary pressure on some raw material inputs for the FMCG industry is abating but the manufacturers expect its impact on price and margins to continue in the current quarter.
In the April-June quarter, listed FMCG companies including - HUL, ITC, Godrej Consumer Product, Nestle, Dabur and Britannia delivered mixed results, reporting impact on their margins and mostly, a drop in volume in some categories.
FMCG companies also expect volume decline to continue in the rural side but see some stabilisation in the business and recovery in demand, starting from the third quarter of FY23. (PTI)
Prime Minister Narendra Modi on Monday set an ambitious target of making India a developed nation by 2047 and made a renewed pitch for cutting import dependence and boosting domestic manufacturing.
Addressing the nation from the ramparts of the Red Fort on the 76th Independence Day, Modi coined 'Panch Pran' or lifeblood resolves for the nation when it celebrates its 100th year of independence in 2047. (PTI)
Aided by a pickup in economic activity, asset quality in the banking system improved over the past year. Bad loans declined about 185 basis points to 5.7% of all loans, although concerns around restructured credit remain.
Public sector banks’ NPA ratio has come down from 9.4% in June 2021 to 7.2%, a drop of 220 bps, while at private banks, the decline was 110 bps, from 4.2% to 3.1%, in the same period. One basis point is one-hundredth of a percentage point. (Full Report)
China’s central bank has trimmed a key interest rate to shore up sagging economic growth at a politically sensitive time when President Xi Jinping is believed to be trying to extend his hold on power. The ruling Communist Party has acknowledged it can’t hit this year’s official 5.5% growth target after anti-virus curbs disrupted trade, manufacturing and consumer spending. A crackdown on corporate debt has caused activity in the vast real estate industry to plunge. Government data showed July factory output and retail sales weakened. The rate cut suggested Beijing’s worries about rising debt are at least temporarily outweighed by the political dangers of an economic slump and job losses. (AP)
A meeting was held on Monday between Union Minister of Ports, Shipping and Waterways Sarbananda Sonowal and his Railways counterpart Ashwini Vaishnaw to facilitate an ecosystem for container production under the Make In India programme, an official statement said.
The high-powered meeting deliberated on various aspects in this regard.
"With a cluster base manufacturing in focus, the CONCOR will be working closely with the Ministry of Ports, Shipping & Waterways (MoPSW)," the statement added. (PTI)
It is time to get cautious as Indian stock markets are approaching key resistance levels though the short-term trend remain positive, say analysts. Equities will track global trends, foreign fund flows and movement of crude oil prices in this holiday-shortened week. Stock markets are closed today on account of Independence Day. The demise of ace investor Rakesh Jhunjhunwala on Sunday has come as a shock to the investor community.
"Short-term traders must liquidate some positions and wait for dips to enter. Immediate resistance is located around 17,800, while 17,600 serves as a decent support," said Apurva Sheth, Head of Market Perspectives, Samco Securities.(Full Report)
Global equities and the U.S. dollar advanced on Monday despite weaker-than-expected economic data in China that prompted its central bank to cut its lending rate, stoking concerns of a global recession.
The Dow Jones Industrial Average rose 0.42% to 33,903.57, the benchmark S&P 500 gained 0.37% to 4,296.09 points, and the Nasdaq Composite added 0.59% to 13,123.89.
The dollar index, which measures the greenback against six peers, rose 0.785%, with the euro down 0.97% to $1.0158. (Reuters)
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