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India defers govt bond index inclusion to next year; $30 bln opportunity pushed back due to operational issues

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India has deferred the planned inclusion of the government bonds in the JP Morgan emerging market global index to next year, as was being speculated on the street. The bond inclusion in the global index may have been pushed back to early 2023, as the Government of India still needs to address various operational issues, Reuters reported citing unidentified sources. Earlier, Goldman Sachs and Morgan Stanley had predicted the bond index inclusion would happen only in the 2nd or 3rd quarter of the next year. The Indian government began considering listing its securities for an inclusion in global bond indices in 2013. However, restrictions on foreign investments in Indian debt meant that the country had to roll out a number of steps before its securities could be eligible.

Goldman Sachs said India bonds could be included in the index with a 10 per cent weightage, the maximum for a country in the index, resulting in potential inflows of $30 billion from the move. Meanwhile, Barclays also said India could possibly be added to the Bloomberg Global Aggregate bond index.

If successful, India would be the last major emerging market to be added to the JP Morgan index, according to Reuters. Earlier this month, Morgan Stanley estimated that India’s inclusion could result in additional flows of as much as $30 billion within 10 months into the Indian government bond market. Last year, Morgan Stanley predicted that it could generate $170 billion to $250 billion of inflows over the next decade. “Most of JPMorgan’s index investors are in favour of including India in the index, but think issues such as investor verification and settlement rules need to be ironed out first,” Reuters reported citing three unidentified sources.

Bonds listed on global indices are settled through international platforms, including Euroclear, outside a country’s borders. It may be noted that Russia’s exclusion from the JPMorgan gauges came after it invaded Ukraine. In the Government Bond Index – Emerging Markets Global Diversified, or GBI-EM index, Russia had a weight of about 8 per cent before it was removed, and now there are seven countries with a weight of 10 per cent each and 13 countries sharing the remaining 30 per cent, according to the Morgan Stanley note.

Earlier this month, Bloomberg noted that India was ‘on track’ to be placed on index watch for inclusion in JPMorgan’s bond index.

Global fund managers raise cash allocation to 21-year high: BofA

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Fund managers across the world are gravitating to cash amid rising inflation, central bank tightening and geopolitical tensions. Bank of America’s September Global Fund Manager Survey (FMS) characterises this mood as “super-bearish”, with allocation to cash inching up to 6.1% in August, the highest in 21 years and well above the long-term average of 4.8%.

According to the survey, the short-term “pain trade” is up once again for risk assets, the global growth expectations are near all-time lows and the maximum bearish sentiment prevails.

Also Read: Billionaire Venture, DBS Bank form JV to fund startups, earmarks $200m

In India, three of the top 20 fund houses by equity assets – SBI MF, Axis MF and PPFAS – were holding more than 10% in cash at the end of August, according to Motilal Oswal Financial Services. Another four – ICICI Prudential MF, Franklin Templeton MF, IDFC MF and PGIM India – had cash levels of between 5% and 10%.

According to FMS survey, investors cut their net underweight in stocks further to -52% in September while pushing longs to defensives to 53%, the highest since February 2009.

The Fed will end hiking rates in Q2 of 2023, according to 36% of FMS investors. FMS investors have repriced terminal Fed funds rate much higher in the past month, with 38% now seeing the Fed hiking rates till 4-4.25%, versus 3.5-3.75% in August 2022.

A net 61% of FMS investors see the US dollar as the most overvalued, up 2 ppt month-on-month to a record high. Net 72% expects weaker economy next year and net 79% expects lower inflation in the next 12 months.

The share of FMS investors saying recession is likely increased further in September to 68%, the highest since May 2020. Since its post-pandemic peak of 80% hit in June 2022, the share of investors believing the economy is in its late-cycle phase has dropped continuously to 67% in September. Historically, a drop of this magnitude and length has coincided with a recession.

The ongoing energy crisis in Europe will likely push the domestic economy into a recession, according to almost 70% of FMS investors.

Close to 70% of FMS investors expect China GDP growth in 2022 to slow to 4% or less versus 57% one month ago, much below the average real GDP growth of 8.8% observed since 1990.

Two hundred forty panellists with $695-billion AUM participated in the August survey. Two hundred twelve participants with $616-billion AUM responded to the Global FMS questions and 121 participants with $265-billion AUM responded to the regional FMS questions.

Expect monthly payment from Vodafone Idea to continue: Indus Towers

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Indus Towers, the country’s largest mobile tower company, on Thursday said the company expects one of its largest customers – Vodafone Idea – to continue clearing its monthly bills. Without naming Vodafone Idea, the towers company said it is engaging with the telecom operator to chalk out a ‘time-bound’ plan to clear past dues as well.

“While the customer (Vodafone Idea) had some challenges during the quarter, we received the monthly payment in October. Our expectation is that the monthly payment will continue and we will continue to charge as per the MSA (master services agreement) rates,” said Prachur Sah, MD and CEO, Indus Towers, at the July-September earnings call.

Comments from Sah assumes significance as Vodafone Idea owes Indus Towers about Rs 5,653 crore till September end, for which the towers company has made a provision for doubtful debts. Further, at a time when Indus has elevated its capex to support tower and tenancy additions, it is crucial for the company to recover past dues from Vodafone Idea.

In the September quarter, Indus Towers’ trade receivables rose 16.6% sequentially to Rs 6,186 crore. The company created an overall net provision for doubtful debt of Rs 1,335 crore during the quarter. Analysts said there was a minor provision of Rs 130 crore that Indus Towers created related to Vodafone Idea during the quarter.

“We have not written off any dues of the customer (Vodafone Idea). We do expect 100% or near 100% payment from the customer to continue,” said Vikas Poddar, CFO, Indus Towers.

Poddar added: “There was some financial commitment that the customer had in the previous quarter, but that hump is pretty much over.”

Even as Indus Towers said it is keeping a close eye on Vodafone Idea’s fundraising plan, any clearance of past dues by the telecom operator would come only when they raise funds.

Owing to higher capex, Indus Towers witnessed a negative flow of Rs 1,027 crore in the September quarter.

According to Sah, on the back of a healthy order book with Bharti Airtel expanding aggressively in rural areas as well as 5G rollouts, the capex will continue to be elevated.

Analysts said Indus Towers incurred a capex of Rs 2,300 crore in the September quarter, up from Rs 2,200 crore in the preceding quarter.

During the quarter, Indus Towers added 5,928 towers, taking total macro towers to 204,212. The company’s co-locations rose by 5,583 to 353,462.

“The quarter marked Indus Towers reaching a milestone of 200,000 macro towers, reaffirming its leadership position,” Sah said.

Indus Towers’ revenue from operations rose 0.8% quarter-on-quarter (q-o-q) to Rs 7,132.5 crore. The company’s net profit fell 4% q-o-q to Rs 1,295 crore in the July-September quarter.

McCain Foods’ 2 new launches: McCain popcorn fries and McCain cheesy pizza fingers

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McCain Foods, a frozen food brand, announced the launch of two new products, thus expanding their portfolio, McCain Popcorn Fries and McCain Cheesy Pizza Fingers.

The company promises to deliver unparalleled taste and crunchy delight in every bite, a snacking experience for Indian consumers, loved by kids and adults alike.

McCain Cheesy Pizza Fingers is a blend of two all-time favorites- Mozzarella Cheese and Pizza, making consumers’ get-togethers extra ‘cheeeesy’. A sumptuous combination of cheese and taste of pizza.

Loved by kids and adults alike, it is the ultimate party companion, effortlessly bringing the joy of pizza and the creaminess of cheese in one bite. In less than 3 minutes, consumers can experience this distinctive cheesy snack with Italian-style herbs, all from the comfort of their homes.

The two new products have been launched via Digital Video Campaigns (DVCs) highlighting the deliciousness, irresistibility and universality of both the products. There is more to come with consumer contests and influencer integrations to continue the buzz around the launches. Popcorn Fries can even be spotted on bus shelters around major cities in a OOH campaign.

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Dewas Madhya Pradesh Assembly Constituency Election 2023: Date of Result, Voting, Counting; Candidates

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As anticipation mounts for the upcoming Dewas Constituency Election in Madhya Pradesh, voters are eagerly awaiting the big battle that kicks off with the announcement of key dates by the Election Commission of India. Here, we provide you with essential details about the Dewas Constituency Assembly Election 2023 that every voter should be aware of.

Dewas Constituency Madhya Pradesh Assembly Election 2023: Voting Date

The voting date for the Dewas Assembly Constituency Election 2023 has been officially announced by the Election Commission. As per the ECI, Dewas Assembly Constituency will go to polls on November 17. Stay tuned for updates as we bring you the latest information.

Dewas Madhya Pradesh Election 2023: Candidates

Watch this space as prominent political parties, including the Bharatiya Janata Party (BJP)Indian National Congress (INC)and Independent(IND) along with others, are poised to reveal their candidates for the Dewas Assembly Constituency Election 2023 post the official declaration of voting dates by the Election Commission of India.

Stay informed as we bring you the latest updates on the Dewas Assembly Constituency Election 2023, keeping you abreast of all the developments and insights that matter to you.

Dewas Constituency MP Election Result: What happened in 2018

Gayatri Raje Puar from Dewas of Madhya Pradesh, won the seat with 103456 votes. He defeated Indian National Congress’ Thakur Jaysingh who had polled 75469 votes. The winning margin was 27987 votes.

2018 Dewas Assembly Constituency Election Result

Winning Candidate NameParty NameTotal VotesGayatri Raje PuarBharatiya Janata Party103456

Candidate List Party Name Votes Gained (Vote %) Gayatri Raje Puar Bharatiya Janata Party 103456 (55.07%) Thakur Jaysingh Indian National Congress 75469 (40.17%) Dilip Bangar Independent 2362 (1.26%) None Of The Above None Of The Above 1871 (1%) Shaikh Qutubuddin Bahujan Samaj Party 1827 (0.97%) Sadhana Prajapati Independent 770 (0.41%) Ishwar Singh Sapaks Party 496 (0.26%) Munni Shath Rajandr Sharma Independent 424 (0.23%) Himanshu Shrivastava Socialist Unity Centre Of India (communist) 398 (0.21%) Ku Sunil Singh Thakur Aam Aadmi Party 247 (0.13%) Ramparsad Bahujan Sangharshh Dal 234 (0.12%) Seshan Kalyane Prajatantrik Samadhan Party 173 (0.09%) Alakhnath Urf Bhagwan Nath Independent 147 (0.08%)

Dewas Constituency MP Election Result: What happened in 2013

In the Madhya Pradesh Assembly election of 2013, Tukojirao Puar won from the Dewas seat garnering 100660 votes and defeated Indian National Congress candidate Rekha Verma who bagged 50541 votes. The candidate who came third was None Of The Above’ None Of The Above.

Tukojirao Puar got 100660 votes while Rekha Verma got 50541 votes.

2013 Dewas Assembly Constituency Election Result

Winning Candidate NameParty NameTotal VotesTukojirao PuarBharatiya Janata Party100660

Candidate List Party Name Votes Gained (Vote %) Tukojirao Puar Bharatiya Janata Party 100660 (63.52%) Rekha Verma Indian National Congress 50541 (31.89%) None Of The Above None Of The Above 2883 (1.82%) Sharma Bahujan Samaj Party 1737 (1.1%) Ishwar Singh Rajpoot Janata Dal (united) 688 (0.43%) Hazi Hatambhai (darbar) Samajwadi Party 379 (0.24%) Madhuri Bairagi Independent 374 (0.24%) Pankaj Mehta Independent 316 (0.2%) Omprakash Rojwal Prajatantrik Samadhan Party 224 (0.14%) Kamal Soni Independent 224 (0.14%) Narendra Singh Goud Independent 200 (0.13%) Jitendra Mali Independent 148 (0.09%) Iqbal Khan Independent 91 (0.06%)

Dewas Constituency MP Election Result: What happened in 2008

Tukoji Rao Puar of the BJP was the winning candidate from the Dewas constituency in the MP Assembly elections 2008, securing 59474 votes while 34247 votes were polled in favour of Haji Harun Bhai of the INC. The margin of victory was 25227 votes.

2008 Dewas Assembly Constituency Election Result

Winning Candidate NameParty NameTotal VotesTukoji Rao PuarBJP59474

Candidate List Party Name Votes Gained (Vote %) Tukoji Rao Puar BJP 59474 (57.63%) Haji Harun Bhai INC 34247 (33.19%) Harish Kumar Babbu Patel BSP 2923 (2.83%) Ganesh Patel BJSH 2371 (2.3%) Anil Kumar Singh SP 1658 (1.61%) Dr Sheetal Chouhan IND 998 (0.97%) Rajkumar Thakur SHS 745 (0.72%) Hazzani Nasreen Mukeem Shaikh IND 421 (0.41%) Karunadas Kabir Panthi IND 357 (0.35%)

Nifty likely to hit life-time high of 15,400 in May, BFSI, pharma, metal sectors may outperform

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By Dharmesh Shah

Nifty Outlook

In the week gone by equity benchmarks extended gains over the second consecutive week despite elevated volatility spooked by surging second wave of COVID-19 across India. The Nifty concluded the week at 14823, up 1.3%. Broader market relatively outperformed as Nifty midcap, small cap surged 1.3% and 2%, respectively. Sectorally, metal, pharma and IT remained in limelight while realty underperformed

Despite Monday’s gap down opening index managed to hold last week’s low of 14400 and staged a strong pullback during the weekBank Nifty outlookThe weekly price action formed a bull candle with shadows in either direction, indicating elevated volatility as the index is forming higher base above the 61.8% retracement of previous two week up move (30405-34287).We reiterate our positive stance with target of 34900 levels, in May’21 as it is the 61.8% retracement of the entire last two months decline (37708-30405). While in the upcoming truncated week any decline towards 32000-32400 would attract strong buying demandKey point to highlight is that over the past seven sessions the index has retraced just 61.8% of preceding seven sessions up move (30405-34287). The slower pace of retracement indicates a higher base formation.The slower pace of retracement after the recent up move of 3880 points, which is the larger in magnitude compared to late February up move of 2256 points highlights robust price structure and the current consolidation should be used as an incremental buying opportunity in quality banking stocksThe index has immediate support at 32000-31500 levels being the confluence of the last two weeks low and the 61.8% retracement of the current up move (30405-34287). While the major support is placed in the range of 30500-30000 levelsThe index has maintained the rhythm of not correcting more than 20% as witnessed since March 2020. In the current scenario, it rebounded after correcting 19% from the all-time high (37708). Hence it provides favourable risk-reward setup for the next leg of up moveAmong the oscillators, the weekly stochastic is in uptrend and placed at a reading of 52 thus supports the continuation of the pullback in the index in coming weeksBank Nifty has maintained the rhythm of not correcting more than 20% as witnessed since March 2020

(Dharmesh Shah is the Head – Technical at ICICI Direct. Please consult your financial advisor before investing.)

ICICI Securities Limited is a SEBI registered Research Analyst having registration no. INH000000990. It is confirmed that the Research Analyst or his relatives or I-Sec do not have actual/beneficial ownership of 1% or more securities of the subject company, at the end of 22/04/2021 or have no other financial interest and do not have any material conflict of interest. I-Sec or its associates might have received any compensation towards merchant banking/ broking services from the subject companies mentioned as clients in preceding 12 months

Wall Street week ahead: As markets churn, investors hide in cash despite surging inflation

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A tough year in markets is leading some investors to seek refuge in cash, as they capitalize on higher interest rates and await chances to buy stocks and bonds at cheaper prices.

The Federal Reserve has roiled markets in 2022 as it implements huge rate hikes in an effort to moderate the steepest inflation in 40 years. But higher rates are also translating into better rates for money market funds, which had returned virtually nothing since the pandemic began in 2020.

Fund managers increased their average cash balances to 6.1% in September, the highest level in more than two decades, a widely followed survey from BofA Global Research showed.

Assets in money market funds have stayed elevated since jumping after the pandemic began, coming in at $4.44 trillion as of last month, not far from their peak of $4.67 trillion in May 2020, according to Refinitiv Lipper.

Also Read: Wall Street extends losses, US stocks tumble amid Fed tightening jitters, economic rumblings

“Cash is now becoming a viable asset class because of what has happened to interest rates,” said Paul Nolte of Kingsview Investment Management, who said the portfolios he manages have 10 to 15% in cash versus less than 5% typically.

“It gives me the opportunity in a couple months to look around in the financial markets and redeploy if the markets and the economy look better,” said Nolte.Investors are looking to next week’s Fed meeting, at which the central bank is expected to enact another jumbo rate hike, following this week’s consumer price index report that came in hotter than expected.

The S&P 500 fell 4.8% in the past week and is down 18.7% this year. The ICE BofA U.S. Treasury Index is on pace for its biggest annual drop on record.

Meanwhile, taxable money market funds had returned 0.4% so far this year as of the end of August, according to the Crane 100 Money Fund index, an average of the 100 largest such funds.

The average yield in the Crane index is 2.08%, up from 0.02% at the start of the year and the highest level since July 2019.

“They are looking better and their competition is looking worse,” said Peter Crane, president of Crane Data, which publishes the money fund index.

Of course, sitting in cash has its drawbacks, including the possibility of missing a sudden reversal that takes prices for stocks and bonds higher. Inflation, which stood at 8.3% on an annual basis last month, has also dented the appeal of cash.

“Certainly you are losing some purchasing power with inflation running at 8-plus percent, but… you are taking some money off the table at a risky time for equity markets,” said Peter Tuz, president of Chase Investment Counsel. “Your equities could be down 8% in two weeks.”

While an obvious sign of caution among investors, extreme levels of cash are sometimes viewed as a so-called contrarian indicator that bodes well for equities, said Mark Hackett, Nationwide’s chief of investment research, especially when taken in concert with other measures of investor pessimism.

Hackett believes stocks may stay volatile in the near-term, amid various risks including potential earnings weakness along with high inflation and the hawkish Fed, but he is more upbeat about the outlook for equities over the next six months.

“There’s a degree of a coiled spring developing where if everybody is already on the sidelines at some point there is nobody left to go on the sidelines and that leads you to potentially any piece of good news resulting in a very outsized move,” Hackett said.

David Kotok, chief investment officer at Cumberland Advisors, said his U.S. equity portfolio made up of exchange-traded funds is currently 48% in cash after being almost fully invested in equity markets last year.

Stocks are too expensive given risks including rising interest rates, the potential for a Fed-induced recession and geopolitical tensions, Kotok said.

“So I want cash,” Kotok said. “I want the cash to be able to deploy back into the stock market at lower prices or substantially lower prices, and I don’t know which opportunity I’ll have but the only way I can seize it is to be holding that amount of cash.”

Share Market Highlights: Sensex surges 1200 pts, Nifty ends above 17250; HDFC Bank leads gains

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Share Market News Today | Sensex, Nifty, Share Prices Highlights: Bulls dominated Dalal Street as benchmark indices surged over 2 per cent amid positive global cues. A global rebound in market sentiment propelled domestic equities higher. The S&P BSE Sensex gained 1,277 points, or 2.25 per cent, to settle at 58,065, while Nifty 50 shut shop at 17,274, up 387 points or 2.29 per cent. The index neared 17,300-mark in intra-day deals. All the sectoral indices ended in the green with auto, bank, metal, IT, power and realty up 2-3 percent. The Indian rupee closed 39 paise higher at 81.48 per dollar on Tuesday against previous close of 81.87.

Live Updates

Share Market Today | Sensex, Nifty, BSE, NSE, Share Prices, Stock Market News Updates 4 October

15:43 (IST) 4 Oct 2022 Bank, Financials, IT stocks lead gains

Sectorally, all the indices ended in the positive zone led by the Nifty Private Bank and Metal indices (3.2 per cent each), Nifty Bank, PSU Bank, Financial Services, IT indices (2.8 per cent each), and Nifty FMCG index (1.8 per cent). 

15:41 (IST) 4 Oct 2022 Top gainers, losers

IndusInd Bank, Bajaj Finance, TCS, HDFC, Bajaj Finserv, Tata Steel, HDFC Bank, Wipro, L&T, Axis Bank, ITC, SBI, and Infosys were the top Sensex gainers, rising between 2.5 per cent and 5 per cent. On the downside, only PowerGrid, and Dr Reddy’s Labs ended in the red.

15:36 (IST) 4 Oct 2022 Nifty, Sensex end 2% higher

Bulls drive Sensex over 1,200 points higher, Nifty settles above 17,250

15:29 (IST) 4 Oct 2022 Power stocks gain

BSE Power index gained 2 per cent, led by the NHPC, Adani Transmission, Torrent Power

15:18 (IST) 4 Oct 2022 Britannia Industries arm acquires 51% stake in Kenafric Biscuits, stock up 1%

Britannia Industries through its subsidiary Britannia and Associates (Dubai) has acquired control of Kenafric Biscuits, Kenya by subscribing to 51% stake in the said company, for Rs 9.2 crore. The subsidiary also acquired 100% stake in Catalyst Britania Brands for Rs 1.42 crore. Britannia Industries was quoting at Rs 3,819.40, up Rs 51.45, or 1.37 percent on the BSE.

15:17 (IST) 4 Oct 2022 Nifty may reclaim 17500 this week

Bulls took over Dalal Street as equities firmed up amid strong sentiments overseas. Frontline Nifty50 surged over 350 points to test 17,250 levels, and Sensex surged 1,200 points to trade at 58,000 levels. Nifty may cross 17500 level this week. Investors can book profits in longs today. ~Rahul Sharma, Head – Technical & Derivatives Research, JM Financial Services.

14:45 (IST) 4 Oct 2022 IT stocks support benchmark index rally

Nifty IT index gained 2.7 per cent, led by Coforge, L&T Infotech and TCS

14:44 (IST) 4 Oct 2022 SphitiCap launches maiden fund with a total corpus of $500 million

SphitiCap today announced the launch of its maiden Venture Fund with a total corpus of $500 million, which the firm is in the midst of closing. The early stage fund is supporting investments in enterprises that align with the tenets of sustainability, growth, and impact. 

14:34 (IST) 4 Oct 2022 Bajaj Steel appoints Vinod Kumar Bajaj as additional non-executive director

Bajaj Steel appoints Vinod Kumar Bajaj as additional non-executive director. Shares jumped 1 per cent.

14:15 (IST) 4 Oct 2022 Indices hold sharp gains

Sensex is up 1,215.94 points or 2.14 percent at 58,004.75. Nifty is up 371 points or 2.20 percent at 17258.30.

14:15 (IST) 4 Oct 2022 BSE Volume shockers

Easy Trip Planners, Bank of Maharashtra among volume shockers on BSE. Easy Trip Planners has witnessed unusually high volume of around 7.91 lakh shares on the BSE so far as against its five-day average volume of around 1.53 lakh shares. Similarly, Bank of Maharashtra, REC, Junilant Ingreva and Jubilant Pharmova also witnessed a significant spike in volume in trade intraday.

14:03 (IST) 4 Oct 2022 Reliance shares rise 1%

Reliance Industries’ subsidiary RSBVL and US-based Sanmina Corporation have completed the deal to set up an electronics manufacturing joint venture at a total enterprise valuation of about Rs 3,300 crore.

13:05 (IST) 4 Oct 2022 Indices at day’s high

Indian benchmark indices were trading at day’s high with Nifty around 17250.The Sensex was up 1,181.82 points or 2.08% at 57970.63, and the Nifty was up 357.60 points or 2.12% at 17244.90.

13:05 (IST) 4 Oct 2022 DMart shares jump 4%

Shares of Radhakishan Damani-backed Avenue Supermarts, which runs the DMart chain of retail stores, rose nearly 4% after the company reported a standalone revenue from operations of Rs 10,385 crore in the September quarter. The revenue increased 35.8% as compared to the year-ago period. Citing September quarter data, brokerage firm Motilal Oswal gave a neutral call on the stock with a reduced target price of Rs 4,100, which is 8.6% lower from the current market price of Rs 4,485.60.

13:03 (IST) 4 Oct 2022 Blue Dart share hit new high; rally 14% in a week

Blue Dart share price hit a new high intraday, The stock has rallied 14 per cent in a week on 10% price hike decision. Blue Dart Express, on September 28, had announced that the average shipment price increase will be 9.6 per cent as compared to 2022, depending on the shipping profile. The company said the customers signing up from October 1, 2022 to December 31, 2022 will not be impacted by the price increase.

13:01 (IST) 4 Oct 2022 Pharma stocks gain

Nifty Pharma index conquered 200-DMA. The Pharma index has outperformed the overall market in recent trading sessions. Sustenance above the 200-DMA is expected to trigger further gains for the index. Cipla, Granules shares can soar up to 15%.

12:59 (IST) 4 Oct 2022 Electronics Mart India IPO update

The initial public offering (IPO) of Electronics Mart India, the fourth largest consumer durables and electronics retailers in India, was subscribed 45 per cent on the first day of the subscription. The offer garnered bids for 2.82 crore equity shares against an offer size of 6.25 crore equity shares. The offer size was reduced to 6.25 crore equity shares from around 8.47 crore after raising Rs 150 crore through anchor book on October 3. Retail investors were once again at the forefront, subscribing 81 per cent shares of the allotted quota. Non-institutional investors also started putting bids for the issue, buying 22 per cent of the portion set aside for them. Qualified institutional investors bought 3,556 shares against 1.78 crore shares reserved for them.

12:58 (IST) 4 Oct 2022 PSU Bank stocks rise

Nifty PSU Bank index rose 2 per cent, led by the Bank of Maharashtra, Punjab National Bank (PNB), Bank of Baroda

12:58 (IST) 4 Oct 2022 IndusInd Bank shares jump 5%

Shares of IndusInd Bank advanced nearly 5 per cent after the lender reported strong loan and deposit growth for the September quarter, lifting the investor sentiment.

The lender said its advances grew 18 percent year-on-year (YoY) and 5 percent quarter-on-quarter (QoQ), beating most peers. Advances stood at Rs 2,59,647 crore as of September as against Rs 2,20,808 crore a year back. Deposits with the bank rose 15 percent YoY from Rs 2,75,473 crore to Rs 3,15,824 crore as of September 2022. It was a 4 percent on-quarter rise, the bank said.

12:13 (IST) 4 Oct 2022 Nifty, Sensex holding firmly in green

Benchmark indices were trading higher in noon deals with Nifty around 17200. The Sensex was up 1,135.56 points or 2% at 57924.37, and the Nifty was up 348.20 points or 2.06% at 17235.50.

12:11 (IST) 4 Oct 2022 Buy good quality company stocks available at reasonable valuations

“We expect that this move in both Bank Nifty and Nifty50 can sustain as long as the market believes that the global central banks, especially the US Fed, will now be inclined to reduce/stop liquidity tightening measures. We believe that investors should buy good quality companies available at reasonable valuations in this rally, to not get caught on the wrong side, if the market expectations of the US Fed pivot does not hold true.”~Nishit Master, Portfolio Manager, Axis Securities PMS

12:11 (IST) 4 Oct 2022 Firm global cues, positive business updates by banks cheer investors

“The Indian markets are up almost 2% today following global cues since the US markets were up ~2.5% yesterday, and Dow futures today are indicating a positive 1% opening again. The movement in the global markets is in anticipation of a pivot by the US Fed towards slowing down or stopping liquidity tightening due to various financial risks now apparent. The business updates shared by banks and other financial intermediaries for Q2FY23 have been encouraging, and thus, the Financial sector is leading the rally in India, leading to upbeat estimates for the overall earnings season.”~Nishit Master, Portfolio Manager, Axis Securities PMS

12:09 (IST) 4 Oct 2022 Index heavyweights gain

The positive sentiment and reduced risk appetite among investors lifted shares of index heavyweights. Shares of Bajaj Finance, Bajaj Finserv, HDFC, HDFC Bank, Tata Consultancy Services, ITC, Reliance Industries surged in the range of 1 per cent to 3 per cent in intra-day trade.

12:08 (IST) 4 Oct 2022 Rupee bounceback aid market rally

The Indian rupee strengthened by 39 paise to 81.42 against the US dollar in early trade, on the back of strong global market cues, and weakness in the global greenback. The dollar index, which gauges the greenback against a basket of six currencies, slipped 0.1 per cent to 111.5. However, the 0.4 per cent rise in prices of Brent Crude ahead of the OPEC+ meet limited upward movement of the domestic currency.

12:07 (IST) 4 Oct 2022 FII buying pull markets higher

A strong start to October series was seen as FIIs made a soft landing in the cash segment of Indian equity markets. FIIs bought shares worth Rs 590 crore on Monday, as against outflows of Rs 423 crore worth of equities by the domestic institutional investors (DIIs).

12:06 (IST) 4 Oct 2022 What’s fueling market rally?

Firm global cues: After the sharp decline last week, the US markets rebounded in Monday’s trade after 10-year, and 2-year treasury yields dropped to 3.6 per cent, and 4.1 per cent, respectively, on weaker-than-expected manufacturing data. All three major Wall Street indices – Dow Jones, NASDAQ Composite, and the S&P 500, closed over 2 per cent higher, to start the final quarter of the year on a positive note. Besides, US equity futures, too, held ground on Tuesday as Dow Jones Futures traded over 200 points higher to 0.8 per cent. The strong sentiments spilled across markets in Asia-Pacific, too, as Japan’s Nikkei 225, Topix, and South Korea’s Kosdaq climbed in the range of 2 per cent to 3 per cent in Tuesday’s trade.

11:46 (IST) 4 Oct 2022 Vedanta shares jump 2%

Vedanta said its alumina production at Lanjigarh refinery decreased by 11% YoY to 4.54 lakh tonnes due to scheduled maintenance, and at Zinc India, reported highest-ever second quarter mined metal production at 2.55 lakh tonnes, up 3 percent YoY, driven by better grades and improved mill recoveries.  In the steel segment, its total saleable production increased by 11% YoY to 3.25 lakh tonnes on account of completion of debottlenecking activities in Q1FY23.

11:18 (IST) 4 Oct 2022 Electronics Mart India IPO subscription update

The initial public offering (IPO) of Electronics Mart India, the fourth largest consumer durables and electronics retailers in India, was subscribed 11 per cent within hours of opening on October 4. The offer garnered bids for 68.4 lakh equity shares against an offer size of 6.25 crore equity shares. Retail investors were at the forefront, subscribing 21 per cent shares of the allotted quota. Non-institutional investors also started putting bids for the issue, buying 3 per cent of the portion set aside for them.

10:54 (IST) 4 Oct 2022 Broader market may remain volatile in short term

“Benchmark index closed negative for eight out of last nine trading sessions ahead of the interest weak global clue, interest rate hike, Rupee depreciation and FII outflow. The broader market may remain volatile in the short term. For benchmark index Nifty, 17400 level may act as an immediate hurdle while on downside, 16700 will act as an important support zone, and breaching this may drag-down the indices towards 16000 in near term. It is recommended investors to continue with a disciplined approach, focus on asset allocation and look at equities from a medium to long term.”~Akhilesh Jat, Category Manager – Equity Research.

10:51 (IST) 4 Oct 2022 HDFC shares gain 2% after Q2 business update

The Bank’s advances aggregated to approximately Rs 14,800 billion as of September 30, 2022, a growth of around 23.5% over Rs 11,988 billion as of September 30, 2021 and a growth of around 6.1% over Rs 13,951 billion as of June 30, 2022.

The Bank’s deposits aggregated to approximately Rs 16,735 billion as of September 30, 2022, a growth of around 19.0% over Rs 14,063 billion as of September 30, 2021 and a growth of around 4.3% over Rs 16,048 billion as of June 30, 2022. 

10:35 (IST) 4 Oct 2022 Easy Trip shares jump 2.5%

Easy Trip shares rose 2.5 per cent as the company is going to consider bonus shares, stock split this month. A meeting of the Board of Directors of the company is scheduled to be held on October 10, 2022, for considering the proposal for increase in Authorised Share Capital, issue of Bonus Shares and/or SubDivision/Split of Share.

10:33 (IST) 4 Oct 2022 Liberty Shoes hits multi-year high on strong outlook; stock rallies 104% in 1-month

In the past one month, the stock price of the footwear company more-than-doubled or zoomed 104 per cent, compared to 1.7 per cent decline in the S&P BSE Sensex. The stock traded close to its record high of Rs 351 apiece, which it had hit on July 22, 2014.

10:33 (IST) 4 Oct 2022 Axis Securities Top stock picks

ICICI Bank, Tech Mahindra, Maruti Suzuki India, State Bank of India, Dalmia Bharat, Federal Bank, Varun Beverages, Ashok Leyland, Astral Ltd (India), Bata India, APL Apollo Tubes, HealthCare Global Enterprises, Praj Industries, CCL Products (India), Coal India and Bajaj finance

10:32 (IST) 4 Oct 2022 Market long-term outlook positive; ‘Buy on dips’

“While the medium to long-term outlook for the overall market remains positive, we could see volatility in the short run with the market responding in either direction. In this context, the current setup is a ‘Buy on Dips’ market. We recommend investors maintain good liquidity (10%) to use such dips in a phased manner to build a position in quality companies (where the earnings visibility is very high) and with an investment horizon of 12-18 months.”~Axis Securities

10:31 (IST) 4 Oct 2022 Nifty to hit 18400 by FY23 end

“We continue to maintain a positive long-term outlook on the market, supported by the favourable structure emerging with increasing Capex enabling banks to improve credit growth. Moreover, the overall expenditure boost in the Union Budget 2022-23 will help deliver broad based growth in FY23. We foresee FY23/24 NIFTY EPS at 820/929 and maintain our NIFTY Mar’23 target of 18,400 unchanged as we value it at 20X FY24 earnings vs. 22X earlier. Though aggressive policy tightening will help in curbing inflationary pressure, persistently elevated Oil and Commodity prices would continue to pose challenges to the market multiple in the next few quarters. The current level of India VIX is below the long-term average, indicating that the market is in a neutral zone.” Axis Securities

10:10 (IST) 4 Oct 2022 M&M Finance soars 10%

Mahindra & Mahindra Finance shares soared 10% as asset quality improved in September quarter

10:09 (IST) 4 Oct 2022 Nifty, Sensex at day’s high

Benchmark indices were trading at day’s high level with Nifty above 17200. The Sensex was up 1,236.32 points or 2.18% at 58025.13, and the Nifty was up 358.40 points or 2.12% at 17245.70.

09:58 (IST) 4 Oct 2022 IT stocks rally

Nifty Information Technology (IT) index rose 2 per cent, led by the L&T Technology Services, Coforge, TCS

09:56 (IST) 4 Oct 2022 Marico bucks market trend, slips 1.5%

Marico share price slipped 1.5% as India business posted low-single digit volume growth. Marico’s India business posted low single-digit volume growth with the 3-year CAGR in high single digits and international business maintained its strong run, delivering double-digit constant currency growth. With this, its consolidated revenue in September FY23 quarter grew in low single digits on a year-on-year basis. Net profit will be further impacted by higher effective tax rate.

09:50 (IST) 4 Oct 2022 DMart share price jump 1.7%

The D-Mart operator, Avenue Supermarts, share price jumped after the company announced standalone revenue for the quarter ended September 2022 at Rs 10,384.66 crore, up significantly by 36% from Rs 7,649.64 crore in the same period last year. The total number of stores as of September 2022 stood at 302.

09:49 (IST) 4 Oct 2022 Metal stocks gain

BSE Metal index added 2 per cent, led by Hindalco Industries, Vedanta, JSW Steel

09:41 (IST) 4 Oct 2022 Bank Nifty surges 1000 pts

Nifty Bank index rose over 2 per cent supported by the IDFC First Bank, IndusInd Bank, Bank of Baroda, Bandhan Bank

09:39 (IST) 4 Oct 2022 Top NSE gainers

Mahindra & Mahindra Financial Services: Rs 197, up 9%

IDFC Firdt Bank: Rs 52, up 6.1%

Delta Corp: Rs 212, up 5.7%

L&T Finance Holdings: Rs 76, up 5.04%

IndusInd Bank: Rs 1208, up 4.51%

09:36 (IST) 4 Oct 2022 Nifty may test 17300

Benchmark index Nifty 50 surges over 300 points to trade at 17230. The index may test 17,300, said Rahul Sharma, Head – Technical & Derivatives Research, JM Financial Services.

09:33 (IST) 4 Oct 2022 Mahindra & Mahindra Financial Services shares surge 9%

Mahindra & Mahindra Financial Services shares surged 9% after the company reported Q2 numbers. The Q2FY23 disbursements were ahead of estimates as disbursements & collections remained strong in September, which were aided by macro tailwinds as per management. The collection efficiency in September rose on a monthly basis, with gross stage-3 at 7% versus 8% in Q1. However, AUM & asset quality were better than street estimates.

09:31 (IST) 4 Oct 2022 For near-term, market sentiments have turned positive

“In the last eight out of ten years Sensex has given positive returns in October. Also, markets have a record of troughing out in October. This may happen this October too. The ‘risk-off, risk-on’ texture of the market is in response to fast changing economic and market signals. For the near-term the market sentiments have turned positive with declining trend in dollar and US bond yields. If this trend continues FIIs will again turn big buyers in India and they will not get stocks cheap. Financials and autos are again set to lead the uptrend since their fundamentals and prospects are strong. Capital goods are likely to join the rally and telecom is on strong wicket.”V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

09:30 (IST) 4 Oct 2022 Banking stock gain

Broad-based gains seen across pockets; Public Sector Bank (PSB) index rises 3 per cent.

09:28 (IST) 4 Oct 2022 Top gainers

All the sectoral indices are trading in the green. Hindalco Industries, IndusInd Bank, Adani Enterprises, Adani Ports and L&T were among major gainers on the Nifty index.

09:24 (IST) 4 Oct 2022 Bank Nifty up 2.5%

“The Bank Nifty has relatively outperformed and ended only 2% lower for September vs. Nifty loss of 3.8%. Axis Bank and Kotak Bank were the worst performers in the second half of September whereas others fell in line with the index. PSU banks’ OI remained lower. In the recent past, we saw cash based selling indicating follow up selling could be seen in the coming few days. The open interest in the Bank Nifty continued to remain lower at the start of the new series and few private banks started the new series near there sizeable Call bases. We expect more of a stock specific actions in the banking space where IndusInd and other midcap private banks should attract buying interest whereas closures in Call writing positions in other leaders should help the index to surpass its Call base.”ICICIDirect

09:20 (IST) 4 Oct 2022 Nifty nears 17200 resistance

Nifty jumps 280 points in opening trade to 17,160. The index is nearing resistance level of 17200,

ASK Group is shaping up like Blackstone

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Blackstone-backed ASK Group recently announced a foray into the hedge funds and private credit businesses saying it plans to grow its assets to $5 billion in the next four to five years. Sunil Rohokale, MD and chief executive at ASK Group talks to Raghavendra Kamath about the Group’s strategy.

Several global and domestic fund managers are getting into private credit, isn’t this space getting overcrowded?

What was the idea behind getting into hedge funds?

“Long short “funds are an investment style to generate risk- adjusted returns for investors. ASK has traditionally been a “long only” investment manager and to complement this, we are getting into “long short” funds. It is also a diversification of investment portfolio for our long only investors as a long -short fund, amongst other things, also offers the advantage of hedging against a changing market environment and other trends leading to increased volatility.

How has Blackstone’s entry as a majority owner helped ASK scale up the business?

Blackstone as we know is the world’s largest private equity investor with 0ne trillion dollar AUM and its diversified into performing credit , hedge funds, real estate and Private equity. ASK is also shaping up in that direction. Backed by Blackstone, we are scaling up in public equities, real estate funds and venturing into credit funds and long short funds.

The Blackstone brand is giving additional fillip to ASK to access the large investor base both onshore and offshore markets. You get a different welcome when you go to investors now and it will help us significantly increase our AUM in the next three to five years.Blackstone did help us diversify into credit fund , long short funds after we strategized with them. Once our credit fund and hedge fund business stabilise, we may look at PE, in the mid-market space.

What happened to your plans for the mutual funds business?

Since Blackstone is a majority owner, we have an option to pursue brownfield opportunity. We want to acquire a mutual fund company rather than wait for 10 years to build it. In the last two years we explored the buyouts of two mid-sized and established mutual funds. One, we felt was an expensive deal and during the other we were undergoing a corporate action so we could not participate.

Where are Ultra HNIs and HNIs are investing today ?

About 65% of their money went is invested in public equities. Their interest in market- linked debentures and fixed income instruments has diminished after the tax incentives were taken away. Now they are allocating more to private credit, real estate, REITs and InVITs apart from their continued interest in public equities.

What are your plans for real estate funds ?

We have raised Rs 1500 crore in April this year and will deploy about 90% by March 2024. We received an approval for a fund of similar quantum a month ago and plan to raise approximately Rs 1,000 crore by March 2024 and close the fund in the next 12 months.

Local credit may still be cheaper than dollar bonds

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Although interest rates locally are on the rise, companies may find credit here is cheaper than tapping the overseas bond markets. With the yield on the 10-year US treasury now nudging 4% from about 1% at the start of the year, the spreads widening and the forward premium rising, dollar bonds have become much costlier.

“Spreads have widened materially for investment grade names and even more for emerging market issuers. In a time of turmoil, the risk premium has risen and the sentiment is weak,” a senior banker said. The rise in yields, since January, has been anywhere between 50 and 150 bps for top quality borrowers and even more for those with lower ratings.

Also Read: SME IPOs catch investors’ fancy; 87 hit primary market to raise Rs 1,460 crore in January-September 

For instance, a 10-year bond issued in January at a coupon of 2.8% is now trading at a yield of close to 5.8-6%. For the same borrower, therefore, adding the hedging costs, the total cost of issuance now could be as much as 9.5-10%. At home, banks would be willing to disburse a rupee loan at 8-8.5%. Moreover, there is also appetite in the corporate bond market with insurers and provident funds looking for good quality paper.

The appetite in the overseas loan market remains strong, bankers said. As such, for companies that have dollar revenue streams, dollar loans, which are priced over the SOFR-Secured Overnight Financing Rate, can be a cheaper option than rupee loans. Spreads in this market have gone up by about 50-60 bps, they said.

At the start of 2022, several borrowers, including Reliance Industries and State Bank of India (SBI), had tapped the bond markets. SBI had mopped up $300 million via five-year Formosa Bonds at a very tight spread of T plus 100 bps; the yield on the bonds has risen by about 40bps. However, ever since the Fed has indicated that it would tighten monetary policy and withdraw accommodation, the markets have turned choppy. The troubling geopolitical situation weakened the sentiment. Investment bankers said the appetite for investment grade paper needs to recover meaningfully before investors start looking at high yield paper.