PremiumAsian markets ended in green mostly but investors kept an eye on US consumer prices data followed by Thursday's retail sales report. Nikkei and Shanghai ended with gains while Hang Seng slipped. Europe continued to trade in green for the fourth day in a row.
Indian benchmark indices witnessed another solid day and closed at a 5-month high with a gain of around 0.75%. Nifty went above the 18,000 mark at the opening and maintained its gain throughout the day.
Nifty closed at 18,070, a gain of 133 points. Sensex jumped 455 points and closed at 60,571.
Bajaj Finserv traded ex-split today and topped the list of gainers with a jump of 4.5%. Britannia, Tata Consumer and IndusInd Bank were other prominent gainers. Shree Cement, Eicher Motors and Cipla slipped in today's trade.
Among indices, Metal and Consumer Durables soared by a per cent. Auto, IT and Oil & Gas ended flat in today's session.
Meanwhile, in Asia, most indices ended in the green. Japan's Nikkei share average closed higher on Tuesday led by gains in video game maker Nintendo, even as caution prevailed ahead of a key U.S. inflation report. The Nikkei finished 0.25% higher.
China stocks closed up on Tuesday after Premier Li Keqiang vowed China will continue to roll out phased policies to stabilise its Covid-19-ravaged economy.
The blue-chip CSI 300 Index gained 0.4% at the close today, while the Shanghai Composite Index edged up 0.1%. The Hang Seng Index slipped 0.2%.
The pan-European STOXX 600 index rose for the fourth straight session with Aveva jumping on a report that France's Schneider was nearing a deal to buy out the company.
Market regulator Securites and Exchange Board of India (Sebi) is looking at new form and manner for public disclosure of trading in derivatives.
“India is not a nanny state….if somebody wants to trade in the F&O segment we don’t think we should stop them," said Madhabi Puri Buch, Sebi chairperson, at her first ever public appearance as head of the regulatory body.
“There is information which Sebi is looking at and evaluating as to what form and manner that (disclosure) needs to be disclosed to the public," Buch said. “We are evaluating in what form and manner that disclosure should be made," she added while responding to a query on whether Sebi was concerned by the growing retail participation in the segment. (Read More)
Russia's Rosatom group is looking at various opportunities, including in the renewables and carbon fibre segments, in the "very promising" Indian market, according to a senior company official.
Besides, the group is keen on exploring possibilities in the areas of nuclear medicine, radiation technologies and energy storage.
Rosatom, a global player in the nuclear technology market, is developing the Kudankulam Nuclear Power Plant (NPP) in Tamil Nadu. The plant will have a total of six reactors, each with an installed capacity of 1,000 MW, and two of the units are already operational.
Now, the group is also considering opportunities in other areas in India, including renewables and carbon fibre. (PTI)
Many countries have shown interest in bilateral trade in the rupee after RBI's recent mechanism announcement, as per Finance Minister Nirmala Sitharaman on Tuesday. The FM believes along with this and other government measures are toward full capital account convertibility. The minister was talking at Hero Mindmine Summit.
When asked about India being ready for capital account convertibility, Sitharaman told in the Summit that "It isn’t the ruble-rupee which was in the old format. Now this (bilateral rupee trade) formulation, which I am glad the RBI has come up at a time which was so critical," as reported by PTI. (Full Story)
Alphabet unit Google faces damages claims for up to 25 billion euros ($25.4 billion) over its digital advertising practices in two suits to be filed in British and Dutch courts in the coming weeks by a law firm on behalf of publishers.
Google's adtech has recently drawn scrutiny from antitrust regulators following complaints from publishers.
The French competition watchdog imposed a 220-million-euro fine on the company last year while the European Commission and its UK peer are investigating whether Google's adtech business gives it an unfair advantage over rivals and advertisers. [
"It is time that Google owns up to its responsibilities and pays back the damages it has caused to this important industry. That is why today we are announcing these actions across two jurisdictions to obtain compensation for EU and UK publishers," Damien Geradin at law firm Geradin Partners said in a statement on Tuesday. (Reuters)
Domestic brokerage and research firm HDFC Securities has suggested four stocks that investors can look to buy with a time horizon of over the next 2-3 quarters, that are from auto ancillaries, NBFC, and chemical sectors. The top stock picks are Ramakrishna Forgings, Rico Auto, Repco Home Finance and Chemcon Specialty Chemicals. (Read More)
Vedanta Ltd and Taiwan's Foxconn will invest $19.5 billion under pacts signed on Tuesday to set up semiconductor and display production plants in Gujarat, the home state of Indian Prime Minister Narendra Modi.
Reuters was first to report on Monday that the joint venture obtained subsidies including on capital expenditure and electricity from Gujarat to set up units near the western state's largest city, Ahmedabad.
The showpiece investment of 1.54 trillion rupees, which Gujarat said was the largest ever by any group in an Indian state, comes ahead of key local elections in the state where Modi's ruling group is facing a tough challenge from opposition parties.
The companies on Tuesday said the Vedanta-Foxconn joint venture project will create more than 100,000 jobs in Gujarat. (Reuters)
Brick and mortar food and grocery retailers could report 20% growth in fiscal 2022 revenues on the back of higher realizations due to commodity inflation and market share gains from the unorganized players, ratings agency Crisil said in a report on Tuesday
“The largely non-discretionary nature of demand had kept the segment resilient even during peak pandemic in fiscal 2021, when revenue fell only 3%. Operating margin is expected to sustain at the current level of 6.3-6.8% due to better economies of scale and gradual pass-through of inflation in input prices, notwithstanding a normalisation of store rentals," the report said. (Full Report)
Domestic edible oil industry body Solvent Extractors' Association of India requested financial market regulator SEBI to resume futures trading of internationally traded commodities such as crude soybean oil and crude palm oil.
In December 2021, the Securities and Exchange Board of India (SEBI) suspended futures and options trading in seven agricultural derivatives for one year.
In a letter to the SEBI Chairperson Madhabi Puri Buch, the edible oil industry body said the suspension of futures trading in these commodities deprived importers from hedging their price risks in rupee-denominated soybean oil and crude palm oil futures on the Indian commodity exchanges. (ANI)
Chief Economic Advisor V Anantha Nageswaran on Tuesday said India is not defending the rupee and the Reserve Bank of India is taking necessary steps to ensure that the movement of the rupee is gradual and in line with market trends.
Nageswaran further said that the rupee is being managed in a manner that reflects the fundamentals of the economy.
"India is not defending the rupee... I don't think Indian fundamentals are such that we need to defend the rupee. The rupee can take care of itself," he said at an event here.
The Indian rupee, in August, had touched an all-time low of 80.15 against the US dollar. It is currently hovering at 79.25 level against the American currency. (PTI)
Finance minister Nirmala Sitharaman on Tuesday asked India Inc., what was stopping them from investing at a time foreign direct investors, foreign portfolio investors and domestic retail investors are showing confidence in India.
The Union government has been urging the private sector to boost investment, and has also stepped-up its own capital expenditure as an example, to help economic recovery. (Full Story)
Sebi chairperson Madhabi Puri Buch on Tuesday said the capital markets regulator has no business to suggest pricing of the initial share sale of new-age technology companies.
She, however, quickly added that there needs to be more disclosures by companies on how valuations have changed between a pre-initial public offering (IPO) placement and the price which is being asked for in the issue.
"A lot has been said about the pricing of IPOs of tech companies… at what price you choose to do the IPO is your business, we have no business to suggest otherwise," Buch said addressing the annual Capital Markets summit organised by industry lobby Ficci here. (PTI)
The pan-European STOXX 600 index rose for the fourth straight session on Tuesday, with Aveva jumping on a report that France's Schneider was nearing a deal to buy out the company.
The STOXX 600 rose 0.1% by 0720 GMT. Shares of British software maker Aveva Group Plc climbed 3.3% to top the benchmark index.
French industrial group Schneider Electric rose 0.9% as Sky News reported late on Monday that it is nearing a deal to take full control of Aveva for about 3.5 billion pounds ($4.1 billion). (Reuters)
Shares of Tata Investment Corporation Ltd surged in Tuesday's trading session to hit a record high of ₹2,096 apiece by rallying over 6% intraday on the BSE. The stock has been in an uptrend since the past few sessions as it has risen more than 30% in the last two weeks.
Promoted by Tata Sons, Tata Investment Corporation Limited (TICL) is a non-banking financial company (NBFC) registered with the Reserve Bank of India (RBI). Earlier named The Investment Corporation of India, the company is primarily involved in investing in long-term investments such as equity shares and equity-related securities. The Tata Group stock is up over 62% in a year's period. (Full Report)
Amit Jain, Co-founder, Ashika Global Family Office Services: Buying oil from Russia has a simple business logic that we may get Oil at least 30% to 40% discount as compared to prevailing market rate. Currently, India imports only 19% of its overall oil import from Russia. However, in current situation Oil is hovering around $90 to $100, which can impact India’s fiscal deficit badly. If you closely observe annual Indian budget, then you will find Indian government has projected oil prices to be hovering around $70 to $80 during their financial year 2022-2023. If we compare budget oil prices compared to current market prices then current market prices are almost 30% higher. Hence in my personal view, Indian Government should look at importing 40% oil from Russia at least in the short term, till the oil prices gets settle down to its long-term average of $70 per barrel.
Pranit Arora, Co Founder & CEO of Univest: Russia is offering discounted oil to India in a bid to counter the G7 proposal to put a cap on Russian oil. It is expected that India does not support the G7 proposal in liue of cheaper oil. It is interesting to note that Russian oil contributed to less than 1% of India's oil imports prior to the Russia Ukraine conflict. It now stands close to 18%.
It is most likely that India will continue to import Russian oil as long as it gets a price advantage. The petroleum minister has said they will look at the G7 proposal very carefully. He also added that the world is still adjusting to the impact of the pandemic. Analysts tracking the oil sector view the G7 proposal may backfire if the largest importers of Russian oil, I.e China and India choose to look at their own interests.
Japan's Nikkei share average closed higher on Tuesday, tracking Wall Street and led by gains in video game maker Nintendo, even as caution prevailed ahead of a key U.S. inflation report.
The Nikkei finished 0.25% higher at 28,614.63 after rising to 28,659.76, its highest since Aug. 26, earlier in the day. Of the index's 225 components, 128 rose, 86 fell and 11 closed flat.
The broader Topix rose 0.32% to 1,986.57.
India's hiring outlook remains strong with 54% of companies planning to hire in next three months amid predictions of growth opportunities for developing countries in the wake of ongoing geopolitical conflicts, says a survey.
According to the ManpowerGroup Employment Outlook Survey released on Tuesday, the labour market is indicating strong sentiments for October-December 2022.
The survey is based on interviews with more than 40,600 public and private employers across 41 countries and territories to measure anticipated employment trends each quarter. This sample allows for analysis to be performed across specific sectors and regions to provide more detailed information. (PTI)
Indian government bond yields drifted lower today even as data released on Monday showed inflation stayed above the Reserve Bank of India's target for eight straight months. The benchmark 10-year government bond yield was at 7.1473%, after ending at 7.1811% on Monday. Bond prices and yields are inversely related. Traders attributed the rise in bond prices to foreign investors buying Indian notes on likely inclusion in global indexes. (Full report)
Bajaj Finserv and HDFC Life gain the most in the rally with Financial Service and Consumer Durable indices leading the charts.
Shares of HDFC Life Insurance Company surged 2% on the BSE to ₹606 in Tuesday's early deals after the UK-based investment company Abrdn said it is planning to sell 4.3 crore shares in the private sector insurer through block deal, reported PTI.
Shares of Coal India rose nearly 2 per cent in the morning trade on Tuesday as the government is set to auction 10 coal blocks under commercial coal mining this week.
Shares of Coal India opened at ₹233, then gained 1.64 per cent to ₹235.30 apiece on BSE.
On NSE, the scrip opened at ₹232.70 and climbed nearly 2 per cent to ₹235.30.
The government will auction 10 coal blocks under commercial coal mining this week as part of efforts to ramp up domestic coal output. (PTI)
BUY LUX INDS CMP: 1883 TRGT: 2150 SL: 1750
The stock after the huge correction from the peak level of 4644 has bottomed out near the previous low of 1690 levels and maintained the levels as a strong support zone and has indicated a gradual rise with currently moving past the significant 50EMA level of 1860 to improve the bias and anticipate for further rise in the coming days. The RSI also has shown a significant pullback to improve the trend and has immense upside potential as indicated by the historical chart pattern. We suggest to buy and accumulate the stock for an upside target of 2150 keeping the stop loss of 1750.
Mahindra & Mahindra (MM IN): Rating: BUY | CMP: Rs1,297 | TP: Rs1,400
M&M is one of our preferred picks in the auto space given (1) back-to-back successful launches in the highly competitive SUV space, (2) its leadership position in tractor industry, (3) its proactiveness to leverage the EV trend can lead to value unlocking and (4) its well-played out capital allocation strategy. Currently, we are not assigning any value to EVCo, as it doesn’t have any material presence in e-PV segment. However, success of XUV400 along with market share gains can re-rate the stock. Reiterate BUY with a Jun-24 target price of ₹1,400 (18x on core EPS and ₹285 for subsidiaries).
Shares of Fineotex Chemical rallied more than 8% on the BSE to hit record high of ₹408 apiece on the BSE in Friday's trading session. The specialty chemical stock has been in an upward moment since the past few session and has surged over 48% in the past month. The multibagger specialty chemical stock has jumped over 226% in a year's period. (Full Report)
Inflation and supply chain disruptions are the biggest risks over the next 12-18 months in Emerging Asia -- China, India, Indonesia, Malaysia, the Philippines, Thailand, and Vietnam, according to a poll conducted by global rating agency Moody's Investors Service.
The poll was conducted at the recently held Emerging Market Summit Asia 2022.
These two risks, the rating agency said, were followed by the potential impact of rising interest rates and slower economic growth.
"Given the supply chain disruptions, multinational corporations have indicated a rising intention to relocate more manufacturing away from China. Still, we agree with panellists that China will remain embedded in many supply chains due to its comparative advantages," said Jacintha Poh, a Senior Vice President at the rating agency. (ANI)
Indranil Pan – Chief Economist, Yes Bank:
· At 7.0% YoY, CPI inflation was higher in August than the 6.7% of July 2022 on account of higher food inflation. On MoM basis, inflation picked up by 0.52% in August vis-à-vis 0.46% in July.
· Notably, 4 out of 5 months in the fiscal year so far saw a 7%+ print.
· With the ban on broken rice and 20% excise duty on other categories of rice, the government endeavors to help to bring inflation lower.
· With significant amount of uncertainty on the inflation dynamics, we expect the RBI to remain front-footed with its rate action and call for a 50bps increase in the repo rate at the September 30 policy. This also sets in well with the hawkishness of major central banks of the world.
International crude oil prices traded on a subdued note on Tuesday after they recovered from the seven-month low levels in the previous session.
Global slowdown and anticipation of interest rate hikes by central banks along with the rising Covid-19 cases in China weighed on the investors sentiments. (Full Report)
Naveen Kulkarni, chief investment officer, Axis Securities PMS: The current market buoyancy globally, including in India, is based on the expectation that inflation has peaked along with softening crude prices. We believe that, to an extent, the expectation of inflation peaking is right, but one will have to keep an eye on energy prices in Europe & US with the onset of winter, which can re-ignite the inflation fire. The current momentum in the equity markets can sustain, but we would advise investors to raise some cash at the current levels, which can be deployed if the markets correct on either rate hikes or energy prices moving up again.
Indian government bond yields turned lower after inching higher in early trades on Tuesday, likely led by purchases from foreign banks, even as inflation stayed above the central bank's target for eight straight months.
Foreign banks are buying bonds as focus shifts back to Indian notes likely being included in global indexes, traders said.
The benchmark 10-year government bond yield was at 7.1473% as of 0450 GMT. The yield rose to 7.1931% earlier in the day after ending at 7.1811% on Monday. It had risen five bps in last two sessions.
"Inflation at 7% is still not bothering the markets, as index inclusion theme continues to play out," said a trader with a private bank. (Reuters)
Non-bank lender Fullerton India Credit Company Ltd . on Monday said it has raised ₹2,795 crore, or around $350 million, through external commercial borrowings (ECBs).
The company said it has raised the loan at a margin of 122 basis points (bps) over the Secured Overnight Financing Rate for a tenor of five years from Sumitomo Mitsui Banking Corp. (SMBC), Singapore, through the parent route. The long tenor of the facility benefits overall asset liability management of the company, it said in a statement.
The past year, it said, has been transformative as the company became a consolidated subsidiary of Japan’s Sumitomo Mitsui Financial Group (SMFG), with SMFG acquiring 74.9% stake from Fullerton Financial Holdings (FFH). SMFG will eventually acquire 100% stake.
Indian stock market benchmark Nifty today crossed the 18,000 mark, buoyed by positive global cues and expectations that Indian economy will grow at a steady pace despite fears of a global slowdown. The Nifty was up 0.6% to 18,046 and is about 3% away from all-time highs of 18,604. The banking sector index, Bank Nifty, is up 0.6% today to 40,804, off 2.5% from all-time highs.
Commenting on the recent uptrend in the market that has taken Nifty from 15,000 levels in June to 18,000 in three months, VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services, says this has become a classic momentum driven market which has the potential to take the indices to new record highs soon.
He expects Bank Nifty to be the first sector to touch new record highs since the segment has strong fundamental support and FIIs have turned big buyers in financials. (Read More)
The Reserve Bank of India may raise interest rates by another 50 basis points this month after data showed inflation rose further above the central bank's tolerance limit in August, analysts said.
India's retail inflation rate rose to 7.0% in August from 6.71% in the previous month, data released on Monday showed. The August reading was a tad above the 6.9% expected by economists polled by Reuters. Higher food inflation contributed to the increase in headline rate.
"From a policy perspective, another month of above-target inflation clears the path for further monetary tightening at the next MPC (Monetary Policy Committee) meeting on 30 September," said Rahul Bajoria, chief India economist at Barclays Bank. (Reuters)
A unit of Sony Group and India's Zee Entertainment have proposed offering concessions such as pricing discounts to help ease concerns of the country's antitrust regulator over their merger, which will create a $10-billion TV behemoth, two sources told Reuters.
In particular, the CCI was concerned over how big an impact on competition the merged entity would have in terms of advertising and channel pricing, particularly in the popular Hindi language segment. (Full Report)
Sameet Chavan, chief analyst-technical and derivatives, Angel One Ltd: Although key indices are lacking a bit of momentum, the undertone seems strongly bullish and as a result, the Nifty is now within a touching distance of the psychological mark of 18000. It’s merely a formality now, we would see it on the screen very soon. The real question is, does the market have enough legs to move beyond it to touch the record highs? In our sense, it’s happening sooner or later. Before this, a move towards 18200 – 18350 in the near future is clearly on cards. This view remains valid as long as Nifty defends 17700 – 17600 on a closing basis.
Yesterday, the banking had a fantastic start but follow-up was missing. Never mind, we reckon, BANKNIFTY is headed towards its all-time high before the benchmark index. Also, the IT showed a willingness to participate in the second straight session, which is an encouraging sign. In our sense, one should continue to remain positive and even if key indices consolidate a bit, the stock-specific action is likely to continue.
Japan's Nikkei share average followed Wall Street higher on Tuesday, although the gains were capped by caution ahead of a key U.S. inflation report, with shares of Nintendo leading gains on the benchmark index.
The Nikkei added 0.16% to 28.589.11 as of the midday break. Earlier it touched 28,659.76 for the first time since Aug. 26, but couldn't hold that level as profit-taking buyers came in. Of the index's 225 components, 134 rose versus 83 that fell, with eight flat.
The broader Topix rose 0.24% to 1,984.97.
The U.S. S&P 500 rallied more than 1% overnight leading up to Tuesday's consumer price index (CPI) report, which will be scrutinized for clues on how aggressive the Federal Reserve's policy tightening campaign will be going forward. (Reuters)
Tirthankar Das, technical & derivative analyst, retail, Ashika Stock Broking Ltd: On the technical front, Nifty formed yet another bullish candle on the daily chart but found resistance near the psychological level of 18000. However present setup indicates that Nifty is likely to head towards 18,300 in September 2022 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. Hence during the day index is likely to open on a positive note and is likely to continue with its positive momentum. Thus one can use dips towards 17,815-17,880 for creating long position for the target of 18,300 in near term.
Despite the fall in share sales through initial public offers so far this year, these issues have given a good 50 per cent average returns, while the Sensex gained only 1.6 per cent, shows an analysis. There were only eight big-ticket IPO issues - with the over ₹20,500-crore LIC being the biggest but one of the worst performers. (Full Report)
Shares of Bajaj Finserv started trading ex-split and bonus on the BSE in Tuesday's trading session, a day ahead of the record date for the purpose of determining the members, eligible for the sub-division of existing equity shares and issue of bonus equity shares of the company. The stock rose nearly 5% to ₹1,791 apiece on the BSE.
