PremiumWall Street remained closed on Monday for Labor Day. European stocks slumped on Monday and the euro fell as the region’s worsening energy crisis kept negative sentiments high. Asia expects to remain steady as investors assess China’s pledge of accelerated stimulus and move to support its currency.
Indian government bond yields are likely to fall in early trade on Tuesday, after the Reserve Bank of India (RBI) chief said inflation is expected to ease in the second half of this financial year.
The benchmark 10-year Indian government bond yield is likely to trade in the 7.19%-7.25% band, a trader with a private bank said. The yield fell one basis point (bps) on Monday to end at 7.2182%.
"The RBI governor's comments may release some fears of an elevated inflation and that could see the pace of future rate hikes being tapered down which could aid today," the trader said. (Reuters)
Liz Truss, the new Conservative Party leader who beat former chancellor Rishi Sunak to replace Boris Johnson, will take charge as Britain’s new Prime Minister on Tuesday after an audience with the Queen in Scotland.
The 47-year-old foreign secretary, who follows Margaret Thatcher and Theresa May as the third female leader of the Tory party, will travel to the 96-year-old monarch’s Balmoral Castle residence in Aberdeenshire to become the first leader of the majority party to not be invited to form a government at Buckingham Palace in London.
Following her royal audience, soon after Johnson submits his resignation to Queen Elizabeth II, Truss will be flown right back to 10 Downing Street in London to deliver her inaugural speech as the Prime Minister before going on to unveil some key Cabinet posts. (PTI)
Delta Corp will continue to remain under the F&O ban stock list today. The stock will be under the ban for the F&O segment as it has crossed 95% of the market-wide position limit (MWPL), as per the NSE. (Full Story)
STOCK IN FOCUS
Blue Star (CMP Rs.1,111)
With the higher earnings growth, better margin profile and improved business visibility over the medium term, we have BUY rating on BLSTR, with a Target Price of Rs1,475.
Intraday Picks
BAJAJ-AUTO (PREVIOUS CLOSE: 3957) SELL
For today’s trade, short position can be initiated in the range of ₹4000-4030 for the target of Rs.3900 with a strict stop loss of ₹4080.
IEX (PREVIOUS CLOSE: 161) BUY
For today’s trade, long position can be initiated in the range of ₹158- 159 for the target of Rs. 163 with a strict stop loss of ₹157.
INDUSINDBK (PREVIOUS CLOSE: 1108) BUY
For today’s trade, long position can be initiated in the range of ₹1090- 1100 for the target of Rs. 1130 with a strict stop loss of ₹1078.
Billionaire Gautam Adani is looking for a new leader for his mergers and acquisitions strategy as the incumbent chief will soon take a new role within the Group, according to a report by Bloomberg news agency. Vinod Bahety, who’s been helming Adani Enterprises Ltd.’s M&A activity, will move to a new business vertical, the agency added.
Adani Group has reached out to potential candidates for the job as Asia's richest man is looking to expedite its dealmaking. (Full Story)
India produced 58.33 million tonnes of coal in August, missing its target of 67.94 MT for the month, according to the government data.
The coal production target for August was 67.94 million tonnes (MT), according to the government's monthly statistics (provisional).
However, the production during last month increased by 8.27 per cent to 58.33 MT in August from 53.88 MT in the corresponding month of previous fiscal.
Country's coal output in the first five months of the ongoing financial year increased to 324.39 MT as against 263.97 MT in the April-August period of the previous fiscal.
The total despatch of coal also increased by 5.41 per cent to 63.43 MT in August over 60.18 MT in the year-ago month. (PTI)
Leading stock exchanges BSE and NSE on Monday announced that they have taken measures for standardising the disclosures made by listed companies pertaining to the critical information for investors.
Listed firms are required to submit periodical compliance filings to stock exchanges within the prescribed timelines.
Under the measures, stock exchanges have implemented new XBRL-based compliance filing mechanism featuring identical and homogenous compliance data structures.
The move will not only ease the compliance burden on listed entities but would also enable analytics on the data submitted by them, BSE and NSE said in a joint statement. (PTI)
Gaming firms in India are putting in motion plans for new features and services ahead of the rollout of 5G service in the country. The sector, which includes makers of games for mobile phones and PCs, streaming firms, and even venture capital (VC) firms, considers 5G to be a possible inflection point that could spur new revenue streams.
India’s overall gaming industry clocked $1.8 bn in revenues in 2020 at a CAGR of 38%, faster than even the US and China. (Full Report)
Reliance Industries (RIL) on Tuesday announced that the company has entered into definitive agreements with SenseHawk Inc. (SenseHawk) for acquiring 79.4% stake of SenseHawk, through primary infusion and secondary purchase, for a total consideration of $32 million.
Founded in 2018, SenseHawk is an early-stage California-based developer of software-based management tools for the solar energy generation industry. (Full Report)
Competition Commission of India (CCI) on Monday granted its approval for the acquisition of 100 per cent equity of indiaideas.com (BillDesk) by PayU Payments.
The proposed combination relates to the acquisition of 100 per cent of the equity share capital of India Ideas Ltd (IIL) by PayU India.
In a tweet on Monday, CCI said it approved, "acquisition of 100% of the equity share capital of IndiaIdeas.com (BillDesk) by PayU Payments."
In August 2021, Prosus NV-backed PayU announced that it will buy digital payments provider BillDesk for USD 4.7 billion (about ₹34,376.2 crore), making it one of the biggest deals in the Indian consumer internet space. (PTI)
European stock indexes fell on Monday, the euro dropped below 99 cents for the first time in twenty years and European gas prices surged after Russia said its main gas supply pipeline to Europe would stay shut.
Gas deliveries had been due to resume on Saturday, but Russia scrapped that deadline on Friday and did not give a new timeframe for re-opening. The news stoked fears of a recession in Europe, with businesses and households hurt by sky-high energy prices.
European gas prices jumped as much as 30% as the market opened. (Reuters)
Bonds worth over ₹30,000 crore issued by banks and non- banking financial companies (NBFCs) are set to hit the market later this week, as they seek to raise funds at lower interest rates ahead of a possible rate hike this month, according to two investment bankers.
HDFC will issue 10-year NCDs worth ₹10,000 crore and HDFC Bank will float AT1 bonds worth ₹3,000 crore. (Read More)
Since Federal Reserve Chairman Jerome Powell's remarks during the Jackson Hole Economic Policy Symposium 2022, stock markets have become extremely volatile and uncertain, said Reserve Bank of India (RBI) Governor Shaktikanta Das on Monday.
Going forward, monetary policy will remain watchful, nimble-footed and calibrated, RBI Governor Shaktikanta Das said. (Full Story)
The country's largest airport service aggregator platform, DreamFolks Services to make its debut on Tuesday on stock exchanges. The company launched its nearly Rs562 crore initial public offering (IPO) from August 24 to August 26 and received strong demand across investor categories. The IPO had subscribed by 56.68 times. Currently, DreamFolks IPO grey market premium (GMP) is around ₹105.
DreamFolks Services is a dominant player and India's largest airport service aggregator platform facilitating an enhanced airport experience to passengers leveraging a technology-driven platform. (Full Report)
Oil prices rose about 3% on Monday, as OPEC+ members agreed to a small production cut of 100,000 barrels per day to bolster prices.
Brent crude futures for November delivery settled $2.72 higher at $95.74 a barrel, a 2.92% gain.
Prices had climbed nearly $4 earlier in the session, but were tamed by comments from the White House that U.S. President Joe Biden was committed to taking all steps necessary to shore up energy supplies and lower prices.
U.S. crude rose $2 to $88.85 per barrel, a 2.3% rise after a 0.3% gain in the previous session, in thin volumes during the U.S. Labor Day holiday. (Reuters)
Stocks look set for a steady start in Asia on Tuesday as investors assess China’s pledge of accelerated stimulus and move to support the yuan. The first OPEC+ supply cut in over a year bolstered crude oil.
Futures were little changed for Japan and edged up for Australia and Hong Kong. US contracts rose ahead of the resumption of Wall Street trading after a holiday. European stocks fell due to a deepening energy crisis.
China on Monday announced a cut in the amount of foreign-exchange deposits banks must set aside as reserves, a move to aid the nation’s currency after it slid to a two-year low. The offshore yuan was little changed in early trading.
Crude oil traded around $89 a barrel after OPEC+ agreed to cut 100,000 barrels a day in October. The decision comes amid risks to demand from a wave of monetary tightening in the US, Europe and Asia-Pacific to fight high inflation.
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