PremiumInvestors expect a 50-basis point interest rate hike by the U.S. Federal Reserve at its policy meeting this week. A steep interest rate hike might push the economy into recession as inflation continues to remain a priority for central bankers.
Civil Aviation Minister Jyotiraditya Scindia on Monday visited Delhi airport and held discussions with all stakeholders on ways to address the congestion at the airport.
Scindia, along with senior ministry officials, visited Terminal 3 of the airport amid complaints from passengers about long queues and waiting hours in recent days.
Officials said the minister inspected in the morning the arrangements made to address the congestion, and key directions were issued with specific timelines.
The measures will be implemented soon, and the changes are expected to take effect in the next six to seven days, the officials said. (PTI)
Gold rates in India fell today after rising to near 9-month highs in the previous week. On MCX, gold futures slipped 0.3% to ₹54,121 per 10 gram while silver fell 0.4% to ₹67,781 per kg tracking softer global rates. The yellow metal had hit a 9-month high of ₹54,400 on Friday.
In global markets, gold today slipped 0.5% to $1,787.80 per ounce as the dollar index rose 0.3%. A stronger greenback makes dollar-priced bullion more expensive for overseas buyers. US inflation data and Fed policy are due this week and traders are likely to remain wary ahead of the announcements. In addition, the European Central Bank (ECB) and the Bank of England (BoE) are also set to announce their rate decisions this week. (Read More)
Uniparts India shares made a muted debut on Dalal Street today and the engineered systems and solutions company's stock dipped further making an intraday low of ₹539 apiece on BSE. According to stock market experts, those who got Uniparts India shares through the allotment process can hold the stock maintaining a stop loss at ₹535 for a short to medium-term target of ₹660 whereas fresh buyers can play safe and buy the stock above ₹580 apiece levels for long term target of ₹750 per share mark. (Read More)
· Nifty started the week on a flat note and witnessed selling pressure throughout the week dragged index to close on negative notes. Nifty closed at 18497 with a loss of 200 points on a weekly basis.
· Bank Nifty started the week on a positive note and traded with extreme volatility on either side throughout the week. Bank Nifty closed at 43633 with a gain of 530 points on a weekly basis.
· Larsen & Toubro Limited has a buy at range 2130 - 2087. Holding period is 3 to 4 weeks.
· Godrej Consumer Products Limited has a buy at range 912 - 894. Holding period is 3 to 4 weeks.
· Tube Investments of India Limited has a buy at range 3000 - 2994. Holding period is 3 to 4 weeks.
· JK Lakshmi Cement Limited has a buy at range 830 - 813. Holding period is 3 to 4 weeks.
Vijay Shekhar Sharma-backed Paytm touched a new milestone in offline payment leadership by recording more than 5.5 million merchants by end of November month. The fintech sustained growth in payments and loan distributions. Its loan disbursals came in at an annualised run rate of ₹39,000 crore ($4.8 billion) in November. The Noida-based digital payments giant continued to witness accelerated growth with disbursements through its platform.
As per the regulatory filing, in the two months of Q3FY23 that ended November 2022, the company's value of loans disbursed jumped by 374% y-o-y to ₹6,292 crore, while the number of loans disbursed grew 150% y-o-y to 6.8 million cumulative loans. (Read More)
Dr V K Vijayakumar, chief investment strategist at Geojit Financial Services: This week is crucial for equity markets globally since markets will be keenly waiting for the commentary of the Fed on the 14th and that of ECB and BoE on the 15th. However, the tone for the commentary of the central banks will be set by the US CPI data due on the 13th. If the CPI data confirms a declining trend, the Fed can reaffirm its earlier comment of slowing down rate hikes, which will be interpreted by the market as a departure from the hawkish stance. On the contrary, if the CPI data reflects stubborn inflation, the Fed will have no alternative but to remain hawkish. This will be negative for equity markets. The continuing rally in PSU bank stocks indicates interest in large-scale buying in the segment. This segment which was under-owned for almost a decade is now coming back on improving fundamentals and attractive valuations even after the recent run-up in prices.
Automobile services provider, Landmark Cars traded at a premium of ₹56 per equity share in the grey market on Monday ahead of its initial public offer (IPO). The company is set to launch its ₹552 crore IPO on December 13. Subscriptions to the IPO will be allowed till December 15. However, anchor investors will be able to bid for the IPO on December 12.
With a GMP of ₹56, Landmark Cars have the potential to list at ₹562 per share ( ₹56 plus ₹506 per equity share). Typically, a grey market is where a company's shares are offered unofficially to traders and hence they are not Sebi-regulated. (Read More)
Sanmit Infra shares are one of the multibagger stocks on the Indian stock market. The small-cap stock with a market cap of around ₹1240 crore is a glaring example of how a long-term investor can benefit and expect a whopping return on one's investment. In nearly four years, this small-cap multibagger stock has risen from ₹1.31 apiece to ₹78.75 apiece levels, logging near a 5,900 per cent rise in this period.
In the last month, this small-cap stock has delivered around 8 per cent return whereas, in the last six months, this small-cap multibagger stock has risen from around ₹42 to ₹78.75 levels, logging around 90 per cent rise in this time. (Read More)
The Indian rupee was expected to weaken at the open on Monday as the U.S. dollar and Treasury yields ticked higher as U.S. data late last week affirmed the need for higher interest rates.
The rupee is seen around 82.45 per dollar in early trades, against its previous close of 82.27.
The currency was quite volatile last week, swiftly going from trading near 81.30 per dollar to 82.50 – despite several positive factors – due to likely equity position adjustments. (Reuters)
The high-end ecosystem of Drone solutions provider, Droneacharya Aerial Innovations is set to launch its initial public offering (IPO) on December 13 in the SME category. That being said, anchor investors will be allowed to bid for the company on Monday. The company plans to raise nearly ₹34 crore through the public offer. In the grey market, the company was trading at a premium of ₹65 per equity share.
Droneacharya's IPO is a purely fresh issue of 62.90 lakh equity shares at a price band of ₹52 per share and ₹54 per share. At the upper price band, the IPO has valued around ₹33.97 crore. The issue will close on December 15. Meanwhile, anchor investors will be able to bid on December 12 for the IPO.
On Monday, the IPO's GMP price was at ₹65 per equity share which suggests a possible listing of ₹119 per share ( ₹65 per equity share plus an upper price band of ₹54 per equity share) as of now. (Read More)
STOCK IN FOCUS
Engineers India (CMP 80)
Considering its asset-light business model, strong clientele base, foray into newer segments and healthy execution track record, we have our BUY rating on ENGR, with a SOTP-based Target Price of Rs100
EQUITY INDICES
Intraday Picks
DRREDDY (PREVIOUS CLOSE: 4,407) BUY
For today’s trade, long position can be initiated in the range of Rs4,406-
4,380 for the target of Rs4,530 with a strict stop loss of Rs4,330.
TITAN (PREVIOUS CLOSE: 2,615) BUY
For today’s trade, long position can be initiated in the range of Rs2,605-
2,585 for the target of Rs2,705 with a strict stop loss of Rs2,545.
BHARTIARTL (PREVIOUS CLOSE: 835) BUY
For today’s trade, long position can be initiated in the range of Rs831-
827 for the target of Rs852 with a strict stop loss of Rs821.
Electricals and home appliances player V-Guard Industries on Friday said it will acquire Sunflame Enterprises for ₹660 crore in an all-cash deal.
The acquisition of the Delhi-based Sunflame will help V-Guard scale up its kitchen appliances business while also unlocking synergy benefits.
"We have entered into a definitive agreement to acquire 100 per cent stake of Sunflame Enterprises for ₹660 crore in an all cash deal," the Kochi-based company said in a statement.
Sunflame is a debt-free company and has around ₹50 crore cash in-hand which does not include in the deal -- implying the promoter of the selling company will take out that money before the deal is concluded. It had a topline of ₹350 crore in FY22. (PTI)
Marico on Friday said it will acquire Vietnam-based Beauty X Corporation, which owns female personal care brands Purité de Prôvence' and 'Ôliv', in an all-cash deal for 493 Billion Vietnamese Dong (about ₹172 crore).
The move will help the homegrown FMCG major to expand its presence in Vietnam.
Its wholly owned subsidiary, Marico South-East Asia Corporation (MSEA) has entered into a definitive agreement to acquire 100 per cent of Beauty X Corporation, a firm which operates in the beauty and personal care space offering products such as shower gels, shampoos, conditioners, face wash and lotions among others.
"The transaction will expand Marico's presence in the female personal care segment in Vietnam, with an offering of a range of premium and differentiated hair care and skin care products, while also realising various operational synergies," the company said. (PTI)
Subscription for the initial public offer (IPO) of Abans Holdings Ltd has opened today and it will remain open for bidders till 15th December 2022. The company promoters have fixed price band of the public issue at ₹256 to ₹270 per equity share. From this public offer, Abans Holdings aims to raise ₹345.60 crore out of which ₹243 crore is expected via OFS (offer for sale) route.
Meanwhile, grey market is also giving positive signals in regard to Abans Holdings IPO. As per the market observers, shares of Abans Holdings are available at a premium of ₹15 in grey market today, which means Abans Holdings IPO GMP (grey market premium) is ₹15 today. (Read More)
NSE lists Delta Corp, Bhel, Gujarat Narmada Valley Fertilizers & Chemicals, and Punjab National Bank stocks on the list of banned securities under the F&O segment for Monday trading as they have crossed 95% of the market-wide position limit. (Read More)
The US Food and Drug Administration (USFDA) identified a number of failures at the Glenmark Pharmaceuticals’ Bardez-based facility in Goa, creating drug formulations, in a warning letter sent to Glenmark Pharmaceuticals Chairman and Managing Director Glenn Saldanha. The warning notice lists serious infractions of Current Good Manufacturing Practice (CGMP) rules for finished pharmaceuticals, according to the US Health Authority.
The USFDA conducted an inspection of the manufacturing plant from May 12 to 20. According to the agency, the company's manufacturing, processing, packing or holding procedures, facilities or controls do not follow CGMP standards, and as a result, its drug products are adulterated. (Read More)
Debt-ridden Vodafone Idea and its vendor ATC Telecom Infrastructure have agreed to extend the last date for subscription of ₹1,600 crore optionally convertible debentures to February 28, the telecom operator said in a regulatory filing.
Vodafone Idea's proposal to issue ₹1,600 crore debentures to mobile tower vendor ATC Telecom Infrastructure has lapsed in the absence of any response from the government on the conversion of interest dues into equity.
"...the Company and ATC have mutually extended the last date for subscription of the OCDs to 28th February 2023 or such later date as may be mutually agreed, subject to fulfilment of certain conditions precedent," Vodafone Idea (VIL) said in a filing. (PTI)
U.S. Treasury Secretary Janet Yellen on Sunday forecast a substantial reduction in U.S. inflation in 2023, barring an unexpected shock. "I believe by the end of next year you will see much lower inflation if there's not ... an unanticipated shock," she told CBS' '60 Minutes' in an interview released Sunday.
Asked about the likelihood of recession, the former Federal Reserve chair said, "There's a risk of a recession. But ... it certainly isn't, in my view, something that is necessary to bring inflation down." (Read More)
The initial public offer (IPO) of Sula Vineyards is going to hit primary markets today. The public issue will remain open for bidding till 14th December 2022. India's largest wine producer and seller aim to raise ₹960.35 crore from its public offer and it is completely OFS (offer for sale) in nature. the company has a fixed price band of the public issue at ₹340 to ₹357 apiece.
Meanwhile ahead of the Sula Vineyards IPO subscription opening date, grey market is dropping positive signals in regard to the public offer. According to market observers, shares of Sula Vineyards Ltd are available at a premium of ₹34 in the grey market today. (Read More)
Air India is close to placing landmark orders for as many as 500 jetliners worth tens of billions of dollars from both Airbus and Boeing as it carves out an ambitious renaissance under the Tata Group conglomerate, industry sources said on Sunday.
The orders include as many as 400 narrow-body jets and 100 or more wide-bodies, including dozens of Airbus A350s and Boeing 787s and 777s, they said, speaking on condition of anonymity as finishing touches are placed on the mammoth deal in coming days. (Read More)
Uniparts IPO listing date has been fixed on 12th December 2022 i.e. shares of Uniparts India Limited — an engineered systems and solutions company — are going to hit secondary markets today in a special pre-open session. As per the information available on the BSE website, the equity shares of Uniparts India Limited shall be listed and admitted to dealings on BSE and NSE in the list of 'B' group of securities.
According to stock market experts, Uniparts IPO listing price can be around ₹620 in the bear case whereas in the bull case, it may debut at around ₹635 apiece levels. They said that the stock looks good from all perspectives but the only negative for the public issue is its 100 per cent OFS in nature. So, big investors may not jump at the stock immediately after listing of stocks. However, they said that long-term investors can hold the stock after a positive listing as it may go up to ₹750 apiece levels in the short to medium term. (Read More)
Fashion e-tailor Myntra on Sunday said it recorded 1.3 lakh firsttime shoppers from non-metros on the first day of its flagship End of Reason Sale (EORS). Customers from Jaipur, Lucknow and Patna placing the most orders in terms of value, said the company.
"The opening day of the event saw 130k first-time shoppers coming from non-metros. Over half of the overall shoppers from the initial day of the fashion event were women," said Myntra in a statement. (Read More)
IT sector stocks extended their losses on Friday, with the S&P BSE Information Technology index correcting 5.72% since its highs on 1 December, prompting analysts to warn that a potential slowdown in business on global recession fears is leading to the correction.
The fears were accentuated by HCL Technologies expecting growth to be at lower end of its guidance. Rising interest rates are already weighing on sentiments as the impact on rate-sensitive sectors like mortgage, capital markets in the BFSI (Banking and Financial Services) vertical, discretionary retail, and pockets of manufacturing verticals can impact Indian IT companies. Furloughs are also likely to weigh on growth for the sector in Q3FY23, said analysts at Nomura Research. (Read More)
Wall Street ended lower on Friday as investors assessed economic data and awaited a potential 50-basis point interest rate hike by the U.S. Federal Reserve at its policy meeting next week, while apparel company Lululemon slumped following a disappointing profit forecast.
"Today's data shows that inflation is coming down, but it's lingering and is stickier than most assume," said Anthony Saglimbene, chief market strategist at Ameriprise Financial in Troy, Michigan.
However, in December, consumer sentiment improved, while inflation expectations eased to a 15-month low, a University of Michigan survey showed.
The S&P 500 declined 0.73% to end the session at 3,934.38 points.
The Nasdaq declined 0.70% to 11,004.62 points, while Dow Jones Industrial Average declined 0.90% to 33,476.46 points.
Of the 11 S&P 500 sector indexes, 10 declined, led lower by energy, down 2.33%, followed by a 1.28% loss in health care. (Reuters)
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