PremiumWall Street tumbled once again on Thursday to its lowest since November 2020 as Fed continues to remain hawkish in its outlook. Asian markets followed the lead and opened lower on Friday morning. RBI will be announcing its Current Monetary Policy today where it is expected to increase the interest rate by 35-50 bps.
Oil headed for its first quarterly loss in more than two years as escalating fears over a global economic slowdown and a stronger dollar overshadowed the prospect for tightening supply.
West Texas Intermediate futures traded near $81 a barrel and are down 23% this quarter. Federal Reserve officials reiterated Thursday that they will keep hiking interest rates to restrain high inflation, raising concerns about demand. The dollar hit a record this month, adding to bearish headwinds.
The economic recovery in China continues to be challenged by lockdowns in major cities as well as an ongoing property market downturn. Factory activity struggled in September, while services slowed, data released Friday show. (Bloomberg)
All eyes will be on RBI as it announces its current monetary policy on Friday. Investors expect a 35-50 bps hike in repo rates in the CMP as inflation remains the main goal for the central banks across the globe. (Full Story)
The decision of RBI Governor Shaktikanta Das headed six-member Monetary Policy Committee (MPC) will be announced on Friday. The Reserve Bank of India (RBI) is expected to hike interest rate for the fourth time in a row to tame inflation and improve foreign capital inflow to arrest declining value of rupee against the US dollar. (Live Updates)
Full-service airline Vistara will continue to view other airlines under the Tata umbrella as competition until there is a decision from its shareholders on the future of its identity, chief executive officer Vinod Kannan said. After seven years of operations, Vistara, a joint venture of Tata group and Singapore Airlines, recently secured the No.2 spot in the domestic aviation market, with a 9.7% market share in August. Edited excerpts from an interview
Key Takeaways from Kumar Rakesh, Analyst - IT & Auto, BNP Paribas India on Indian Auto and EV sector:
2W customers ready for EV adoption
· What the disruptions by Tesla and Netflix teaches us
· Investment case for 2W OEM stocks tough; prefer domestic PV OEMs
· Clean energy mobility critical for India to reduce carbon emission
· Most state governments are aiming to convert commercial fleets into 100% electric over the next 10 years
Key trends in E2Wav
· We see 30% of the 2W industry turning electric by 2030; the pace of incentive withdrawal presents an upside/downside risk
· Maharashtra tops Indian states in e2W sales with a volume share of nearly 18%, largely driven by incentives given out by the state government, followed by earlier leader Karnataka in second spot
· EV penetration within scooters has reached close to 10%, as of August 2022pa
Key trends in E3W
· We see 75% of the 3W industry turning electric by 2030 and entry of market leader Bajaj Auto as the next catalyst for 3W EV adoption
· Uttar Pradesh is the dominant market for the segment, accounting for more than one-third of total electric 3W vehicles getting registered consistently
Key trends in EPV
· EPV at a nascent stage, we see inflection after FY25 and EV penetration reaching 15% by 2030
· Maharashtra leads sales with c33% volume market share in FYTD23 and has close to 2% EV penetration in the segment
Charging infrastructure – a lot needs to be done
· Indian states on average have less than 0.1 charging point per 100km of road length, and need significant investment to improve the charging infrastructure
Fair trade regulator Competition Commission of India (CCI) on Thursday approved the acquisition of 100 per cent equity of Diliigent Power and DB Power by Adani Power Ltd.
The proposed combination relates to the acquisition of the 100 per cent of the share capital and economic rights of Diliigent Power and DB Power by Adani Power Ltd, according to an official release.
In August, Adani Power said it will acquire DB Power Ltd, which owns and operates a 2x600 MW thermal power plant at Janjgir-Champa district in Chhattisgarh, at an enterprise value of ₹7,017 crore for cash consideration.
Diliigent Power is primarily engaged in the activities of a holding company.
DB Power operates a coal-based thermal power plant with an installed capacity of 1,200 MW per hour in Chhattisgarh. (PTI)
Hero MotoCorp on Thursday said it will invest USD 60 million (about ₹490 crore) in US-based Zero Motorcycles to jointly develop electric motorcycles.
The country's largest two-wheeler maker said it is finalising a collaboration agreement with the California (US)-based manufacturer of premium electric motorcycles and powertrains.
The company's board has approved an equity investment of up to USD 60 million in Zero Motorcycles, it added.
Zero Motorcycles is the global leader in electric motorcycles and powertrains. Its consolidated revenue for 2021 stood at USD 60.7 million. (PTI)
Osho Krishan, sr. analyst - technical & derivative research, Angel One Ltd: Technically speaking, the overall sell-off in the broader market has dampened the sentiments, and the 17000 mark seems to be a significant hurdle for the index. The technical structure looks very disruptive, with all indicators signaling the trend southwards. Until we decisively claim to the 17000 mark, a sense of tentativeness could be sensed in the comparable period. As far as levels are concerned, the unfilled gap of 16750-16650 is expected to cushion any further correction, while on the higher end, 17000 followed by 17200 is the crucial hurdle for the benchmark index.
Going forward, the RBI monetary policy is slated in the coming session; hence, traders should keep a close eye on the event. Apart from this, global development should also not be overlooked, and therefore, one needs to avoid aggressive bets and focus on stock-specific actions.
Rupak De, senior technical analyst at LKP Securities: Nifty remained highly volatile before ending the session on a negative note. The index failed to capitalize on the early gain as it faced tough resistance at the 17000 levels leading to closing around 16800. Going ahead, 16800 is likely to act as crucial support any drift below 16800 on a sustained basis may attract selling pressure in the market. On the lower end, support is visible at 16640. On the higher end, 17050 is likely to remain a strong resistance.
Vinod Nair, head of research at Geojit Financial Services: The initial upticks of the domestic market were short-lived due to its weak global peers and declining rupee. As the yield differential between India and the US fell to a multi-year low of 348 bps, foreign investors are still departing from the Indian market. Amid the ongoing global trend of aggressive rate hikes, markets are braced for a 50 bps increase by RBI. Investors eagerly await the central bank’s intervention to aid bank liquidity, curb currency depreciation, and provide updates on its monetary stance & GDP outlook.
On account of weak global sentiments and slowdown concern, Dalal Street extended its losing spree on seventh straight session on Thursday. NSE Nifty corrected 40 points and closed at 16,818, Sensex shed 188 points and finished at 56,409 while Nifty Bank index went off 112 points and closed at 37,647 levels. Among sectors metals, healthcare and FMCG gained the most while power, IT and banks fell the most. However, mid-cap and small-cap indices gained 0.31 per cent and 0.63 per cent respectively.
Vaishali Parekh of Prabhudas Lilladher has recommended two stocks to buy today and those two stocks are Apollo Hospitals and Godrej Consumer Products.
Here we list out full details below:
1] Apollo Hospitals: Buy at ₹4390, target ₹4530, stop loss ₹4330; and
2] Godrej Consumer Products: Buy at ₹907, target ₹957, stop loss ₹885.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. (Full Story)
The Central Government on Thursday announced the small savings scheme interest rates for the third (October-December) quarter. This time, the government has raised the interest rate by up to 30 basis points on some small savings schemes for the quarter beginning 1 October.
The interest rate for senior citizens savings scheme has been hiked to 7.6% from 7.4%, for Kisan Vikas Patra to 7% from 6.9% and also increased for two, three-year time deposits. (Full Report)
India's current account deficit (CAD) widened to $23.9 billion or 2.8 per cent of the country's gross domestic product (GDP) in April-June period of the current financial year from $13.4 billion recorded in the previous quarter, as per data released by the Reserve Bank of India (RBI) on Thursday.
India's current account balance recorded a deficit of $23.9 billion (2.8 per cent of GDP) in Q1:2022-23, up from US$ 13.4 billion (1.5 per cent of GDP) in Q4:2021-221 and a surplus of $6.6 billion (0.9 per cent of GDP) a year ago [i.e., Q1:2021-22], the RBI said in a statement.
The RBI on Thursday released the preliminary data on India's balance of payments (BoP) for the first quarter (Q1), i.e., April-June 2022-23. (ANI)
The rupee on Thursday recovered from record lows to settle 20 paise higher at 81.73 against US dollar ahead of the RBI monetary policy decision scheduled to come out on Friday.
Heavy capital outflows restricted the rupee gain, traders said.
At the interbank forex market, the local unit opened at 81.60 against the greenback. It witnessed an intra-day high of 81.58 and a low of 81.94 during the session.
It finally ended at 81.73, up 20 paise from its previous close.
On Wednesday, the rupee plunged below the 82-mark for the first time in intraday trade before settling 40 paise down at 81.93 against the dollar. (PTI)
US stocks plunged to the lowest since November 2020 as another group of Federal Reserve officials struck a hawkish tone, and turmoil in Europe continued to fray investor nerves.
The S&P 500 fell as much as 2.9% during Thursday’s session but trimmed losses as markets closed. Its decline wipes out an ill-timed attempt Wednesday to rebound from a six-day slide.
The tech-heavy Nasdaq 100 dropped nearly 4% during the session after St. Louis Fed President James Bullard said investors have now understood that they can’t escape additional rate hikes in coming months. The index was dragged down by Apple Inc., which fell as much as 6.1% after a rare analyst downgrade from Bank of America warning of weaker consumer demand for its popular devices. (Bloomberg)
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