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Sensex, Nifty erase all yearly gains; Nifty support at 17166, investors poorer by Rs 5 lakh crore

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BSE Sensex and NSE Nifty 50 ended nearly 2 per cent down on Friday, on the back of fears of a global recession. Both the indices have turned negative for 2022 with Friday’s fall. Today’s nearly 2 per cent plunge has led to an erosion of Rs 4.83 lakh crore market cap of BSE-listed companies. BSE Sensex tanked 1.7 per cent or 1,021 points to 58099, while NSE Nifty 50 index plunged 1.8 per cent or 302 points to end at 17327. Stocks of HDFC Bank, Reliance Industries Ltd (RIL), ICICI Bank, Housing Development Finance Corporation (HDFC), State Bank of India, among others dragged the index the most. Broader market indices underperformed the equity frontliners. S&P BSE MidCap ended 2.3 per cent or 588 points at 25,271, while S&P BSE Smallcap index plunged 2 per cent or 567 points to settle at 28,813.

Also read: MCX gold may give 1% return next week, rally seems to continue; support seen at Rs 48800 per 10 gm

The Bank Nifty index last week witnessed extreme selling pressure from the higher levels after the key event of the US FED. The index breached the crucial support of 40,000 and closed below it, confirming the breakdown and activating the sell-on-rise mode. The index remains in a sell-on-rise mode with hurdles at 40,500 and the next support is visible at 39,000.

Deepak Jasani, Head of Retail Research, HDFC Securities

After remaining resilient against the global weakness in equities, Nifty gave in over the past three sessions. Nifty fell sharply for the second consecutive week (down 1.16%), breaking some key technical levels on the way. 17166 is the next support for the Nifty post which a sharper fall could ensue. 17490 could be the resistance for the Nifty in the near term.

Also read: Rupee likely to fall further, dollar index may rise to 114 if US Fed hikes rate by 75 bps in November

Ajit Mishra, VP – Research, Religare Broking

Markets are finally witnessing pressure after showing resilience for quite some time and indications are pointing towards further decline. The Nifty index has the next crucial support at the 17,100 zone. Since most sectors are trading in tandem with the benchmark, it’s prudent to maintain short positions also. Investors, on the other hand, should utilise this phase to accumulate quality stocks in a staggered manner.

Vinod Nair, Head of Research, Geojit Financial Services

A rise in the US 10-year bond yield and a strong dollar index influenced FIIs to flee emerging markets. A fall in liquidity in the banking system, a weak currency and a current premium valuation have set the market outlook bearish for the near term. With aggressive monetary policy action by central banks, the global growth engines are in a slowdown mode, whereas India is currently in a better position with a pickup in credit growth and an uptick in tax collection. The current volatility might persist for a while. Investors are advised to wait and watch until the dust settles.

Noida International Airport welcomes TajSATS to develop In-Flight kitchen facility; Here’s how culinary excellence will be achieved

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TajSATS, a prominent inflight catering company, finalized an agreement on Thursday to establish an in-flight kitchen facility at the soon-to-be-opened Noida International Airport (NIA).

Under the terms of this agreement, TajSATS will construct and operate the in-flight kitchen facility using a Design, Finance, Build, Operate, and Transfer (DBFOT) model for a period of 37 years. This comprehensive mandate will include a range of services, including passenger and crew meal services, the management of in-flight catering equipment, as well as the loading and unloading of meals.

Development of In-Flight Kitchen Facility at Noida Airport

Situated strategically within the airport premises, the state-of-the-art kitchen facility will span an impressive 40,000 square feet and have the capacity to serve over 15,000 meals daily in its initial phase. Moreover, this facility will extend its services to the airport’s lounge facilities and the various food and beverage outlets within the airport and its vicinity.

With this addition, TajSATS will boast a total of nine production facilities in India, reinforcing its position in the industry.

Christoph Schnellmann, CEO of Noida International Airport, emphasized that this partnership represents a significant milestone in delivering a modern, customer-focused culinary experience. Schnellmann believes that meals are an essential component of an exceptional in-flight and airport experience. TajSATS’ extensive experience in serving numerous airports aligns seamlessly with NIA’s commitment to offering a world-class experience to its passengers.

TajSATS Air Catering Ltd is a joint venture between The Indian Hotels Company Limited (IHCL) and SATS Ltd. With over four decades of experience in airline catering and a strong presence in commercial catering, the company currently provides in-flight catering services at major airports in Mumbai, Delhi, Chennai, Kolkata, Amritsar, Goa, and Bangalore.

(With PTI Inputs)

Share Market HIGHLIGHTS: Sensex tanks 1021 pts, Nifty ends at 17327, turns YTD negative; PowerGrid crashes 8%

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Share Market News Today | Sensex, Nifty, Share Prices HIGHLIGHTS: Domestic equity market benchmarks BSE Sensex and NSE Nifty 50 ended nearly 2 per cent down on Friday, on the back of weak global cues. BSE Sensex tanked 1.7 per cent or 1,021 points to 58099, while NSE Nifty 50 index plunged 1.8 per cent or 302 points to end at 17327. Stock of just Sun Pharma, ITC, and Tata Steel ended in green. PowerGrid Corporation of India plunged over 8 per cent, followed by NTPC, State Bank of India (SBI), Mahindra & Mahindra (M&M), Bajaj Finserv, Bajaj Finance, HDFC Bank, Housing Development Finance Corporation, among others dragged the index the most. Bank Nifty index ended 2.7 per cent down at 39,546

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

15:35 (IST) 23 Sep 2022 Sensex, Nifty tank nearly 2%

BSE Sensex tanked 1.7 per cent or 1,021 points to 58099, while NSE Nifty 50 index plunged 1.8 per cent or 302 points to end at 17327

15:18 (IST) 23 Sep 2022 Nifty, Sensex deep in red

Markets are deep in red trading near day’s low level with Nifty around 17350. The Sensex is down 934.18 points or 1.58% at 58185.54, and the Nifty down 276.80 points or 1.57% at 17353.

15:00 (IST) 23 Sep 2022 Nifty turns negative for 2022, Sensex falls 1.5%, Bank Nifty tumbles 3%; what is dragging markets today?

BSE Sensex and NSE Nifty 50 fell over 1.5 per cent to hit the lowest level since 30 Aug 2022, and Bank Nifty index plunged nearly 3 per cent intraday as market participants remained cautious fearing that aggressive rate hike by US Fed, and slowing Chinese economy could weigh on global economic growth. The US Fed clearly signalled this week that it is willing to tolerate a recession to get inflation back in control when it raised the rate by another 75 bps. In addition, its updated economic projections showed slower GDP growth and higher inflation. According to analysts at ICICI Securities, given the Fed’s hawkish stance to tame inflation, the US may enter a recession by the second quarter of FY23. Read full story

14:48 (IST) 23 Sep 2022 Mahindra and Mahindra Financial Services share price tanks 15%

Mahindra & Mahindra Financial Services share price tanked more than 14 per cent to Rs 192.05 intraday on Friday after RBI directed it to halt recovery via third parties

14:19 (IST) 23 Sep 2022 “About 10% of our turnover in next two years will come from rental business,” says Wonderchef CEO | INTERVIEW

Kitchen appliances brand Wonderchef is now betting on the growth of the shared economy in the country and has in line, launched ‘Wonderent’ to offer home and kitchen appliances on rent at typically around 5 per cent of the actual cost of the product. With monthly rental starting at Rs 199 for appliances, the brand is aiming the rental business to bring about 10 per cent of its total turnover in two years time, Ravi Saxena, Founder and CEO, Wonderchef, told FinancialExpress.com. “Net of all costs, we have been able to get a 42 per cent contribution per product from Wonderent, which is a healthy contribution and in terms of investment, it has been almost zero for us since we have partnered with a tech company Rentity to facilitate the rental service,” he said. Read full interview

14:17 (IST) 23 Sep 2022 RBI MPC expectation: 25-50 bps rate hike on cards

“The monetary policies in emerging markets will inevitably take cues from the US Fed. The RBI’s Monetary Policy Committee will take guidance from high inflation in India and uneven data points from global economies. They may also take into account that banking system liquidity in India has gone negative compared to 2019. With retail inflation above RBI’s comfort range there is that the RBI will increase rates by 25 basis points. However, it is very possible that the RBI might decide this is a good time to be ahead of the curve and increase rates by 50 basis points.”

~Srikanth Subramanian, CEO, Kotak Cherry

14:06 (IST) 23 Sep 2022 NSE Nifty 50 turns negative for 2022

NSE Nifty 50 index turned YTD negative again, erasing all the yearly gains

14:05 (IST) 23 Sep 2022 RBI monetary policy a key event to watch out for next week

Domestic and international equity markets this week reacted to Federal Reserve’s 75 bps rate hike decision. Domestic market remained range bound and major indices gave broadly flattish return this week. Returns of most sectoral indices this week were on a slightly negative territory. However, BSE FMCG and BSE Healthcare witnessed some positive momentum. Global equity markets were under pressure post Fed’s rate hike decision and its hawkish tone. US 10-year treasury yield remained high and is now above 3.7%. Globally, inflation, Central Bank rate increase action, energy prices and recession remains area of concern. Crude oil prices have broadly remained stable but the Indian currency have depreciated in recent days. For the domestic market, one of the key near-term event to watch out for is the upcoming RBI monetary policy. Shrikant Chouhan, Head of Equity Research (Retail) at Kotak Securities

13:06 (IST) 23 Sep 2022 Should you buy Tata Steel stock?

Tata Steel has announced a merger of 7 subsidiaries – 4 listed and 3 unlisted. Merger is a positive step as it will (1) simply the corporate structure, (2) plug leakage of addition royalty payments on inter-company iron ore transfers, (3) reduce corporate overheads (4) enable various businesses with higher financial flexibility to progress on growth projects and (5) bring in further operational, procurement and tax synergies. While we await for company guidance on potential synergies, we estimate Rs7.5-8 bn of annual savings, equity dilution of 2.2% and potential EPS accretion of 1.5-2%. The scheme will require various regulatory and shareholder approval and likely to complete by end of FY2024E. We have a REDUCE rating on the stock with a Fair Value of Rs110/share. Jatin Damania, Vice President – Fundamental Research, Kotak Securities

12:41 (IST) 23 Sep 2022 MCX gold may give 1% return next week, rally seems to continue; support seen at Rs 48800 per 10 gm

We anticipate a rally on the upside to continue in Gold. If gold manages to break $1700, then we can see levels till $1725-1730 however we are not expecting any steep upside rally owing to Dollar strength. Going forward, USD is expected to remain strong which will provide headwinds. As long as $1650 is not breached on the downside, it is safe to hold on to long positions. In MCX, 48800 seems to be a good support of Oct contract and one can go long with stoploss of 48800 and expected target of 50800-51000. Read full story

12:40 (IST) 23 Sep 2022 Tata Steel shares jump, TRF hits lower circuit, Tinplate, Tata Metaliks fall after board okays mega merger

Tata Steel share price jumped, while TRF, Tinplate, Tata Steel Long Products and Tata Metaliks shares fell on Friday after Tata Steel approved the amalgamation between seven of its group companies and itself. Tata Steel share price jumped around 3 per cent to hit an intraday high of Rs 107 on the NSE. In the previous session, the stock settled at Rs 103.60 apiece on NSE, down 0.81 per cent. Meanwhile, shares of TRF opened 5 per cent in the red and hit lower circuit. Read full story

11:46 (IST) 23 Sep 2022 Gold Price Today, 23 Sep 2022: Gold trades flat on rise in US Dollar; check resistance, support

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate and silver silver were trading weak on Friday, on the back of muted global cues. On Multi Commodity Exchange, gold October futures were ruling 60 points or 0.12 per cent down at Rs 49,923 per 10 gram, as against the last close of Rs 50,000. Silver December futures were trading Rs 78 down or 0.13 per cent down at Rs 57,949 per kg on MCX. Globally, yellow metal prices were flat as the dollar held close to its recent peak while the likelihood of more aggressive interest rate hikes by the U.S. Federal Reserve also weighed on the appeal for non-yielding bullion. Read full story

10:15 (IST) 23 Sep 2022 Crude may remain volatile as supply risks counter demand concerns

NYMEX crude trades mixed above $83/bbl as support from supply risks relating to Russia and Iran and OPEC’s wariness with lower prices is countered by demand concerns amid mixed economic data from major economies and downbeat growth forecasts. Monetary tightening by the Fed and other central banks is also hampering commodities at large. Crude may remain volatile as supply risks counter demand concerns however with relative stability in riskier assets, smaller build in US crude stocks and supply risks relating to Russia, we may see some gains Ravindra Rao, CMT, EPAT, VP- Head Commodity Research, Kotak Securities

09:35 (IST) 23 Sep 2022 Bank Nifty index falls over 1%

Nifty Bank index fell 1.3 per cent or 531 points to trade at 40,083

09:31 (IST) 23 Sep 2022 HDFC, IndusInd Bank, HDFC Bank top Sensex losers

IndusInd Bank, Housing Development Finance Corporation (HDFC), M&M, Tech Mahindra, HDFC Bank, Axis Bank, Kotak Mahindra Bank were among top index draggers.

09:30 (IST) 23 Sep 2022 Tata Steel jumps 3% as company to merge 7 group metal companies with itself

Stocks of Tata Steel, Sun Pharma, Hindustan Unilever Ltd (HUL), ITC, Dr.Reddy’s, Infosys, HCL Tech, Titan Company, and Maruti Suzuki were among top Sensex gainers

09:26 (IST) 23 Sep 2022 Sensex, Nifty fall 0.5%

BSE Sensex fell 300 pts or 0.5 per cent to 58854, while NSE Nifty was down 0.4 per cent or 65 points to 17593

09:14 (IST) 23 Sep 2022 Rupee to fall up to 81.80 and 82.00 levels in near term

Historically, whenever a big figure in rupee has been taken out, a move of 2.5 rupees an average has been seen within one month of breakout. Overall, with RBI’s absence, the rupee is going to test new lows in the short term and we expect the currency to weaken up to 81.80 and 82.00 levels in the near term. Amit Pabari, MD, CR Forex Advisors

09:13 (IST) 23 Sep 2022 Sensex, Nifty fall in pre-open on Friday

BSE Sensex was testing 59000, while NSE Nifty 50 fell below the crucial 17600 in pre-opening session on Friday

09:09 (IST) 23 Sep 2022 Rupee at fresh all-time low; opens at a record low of 81.09/$

The Indian Rupee opened at a record low of 81.09 against US Dollar on Friday

08:52 (IST) 23 Sep 2022 Immediate downside risk for Nifty seen at 17429

Equity benchmark indices are likely to start on a negative note Friday and slip further amid bearish sentiment across the global equity markets. Markets will continue to witness intra-day volatile moves in the backdrop of a rate hike decision by the US Fed and its hawkish commentary that is weighing heavily on investors’ minds. Some part of pessimism is also due to the exit of FIIs from the local shares and they sold shares worth Rs 2509.60 crores in yesterday’s trade. Technically, the immediate downside risk for Nifty is seen at 17429 mark and below the same, expect a waterfall of selling which could take the index towards the 16907 mark. Prashanth Tapse – Research Analyst, Senior VP (Research), Mehta Equities

08:29 (IST) 23 Sep 2022 Reliance New Energy to acquire 20% stake in solar tech company Caelux Corp to produce low cost solar modules

Reliance Industries’ subsidiary Reliance New Energy (RNEL) has announced plans to invest in Caelux Corporation to produce more powerful and lower cost solar modules. In a bid to push India’s energy transition toward renewable sources, Mukesh Ambani’s RNEL will invest $12 million to acquire a 20% stake in this solar technology company. US headquartered Caelux Corporation develops perovskite-based solar technology. Moreover, RNEL and Caelux have also entered into a strategic partnership agreement for technical collaboration and commercialisation of Caelux’s technology, RIL said in a statement on Friday. Read full story

08:03 (IST) 23 Sep 2022 Reliance New Energy Ltd to invest in Caelux Corporation

Reliance New Energy Limited (“RNEL”), a wholly owned subsidiary of Reliance Industries Ltd, has today signed definitive agreements to invest in Caelux Corporation (“Caelux”), a company headquartered in Pasadena, California, in the United States of America, engaged in the development of perovskite-based solar technology. RNEL will invest USD 12 million to acquire 20% stake in Caelux.

07:55 (IST) 23 Sep 2022 US Markets end in red

Major Wall Street indexes ended lower on Thursday, falling for a third straight session as investors reacted to the Federal Reserve’s latest aggressive move to rein in inflation by selling growth stocks, including technology companies. The Dow Jones Industrial Average fell 107.1 points, or 0.35%, to 30,076.68, the S&P 500 lost 31.94 points, or 0.84%, to 3,757.99 and the Nasdaq Composite dropped 153.39 points, or 1.37%, to 11,066.81.

07:54 (IST) 23 Sep 2022 SGX Nifty in red

Early trends in SGX Nifty hinted at a negative opening for the broader index in India with a loss of 65 points. The Nifty futures were trading around 17,575 levels on the Singaporean Exchange.

OYO’s valuation drops in private market

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Around two weeks after OYO refuted claims of SoftBank reportedly lowering its valuation, the IPO-bound company’s valuation in the private market has dropped to around $6.5 billion, news agency PTI reported citing industry players.

On September 22, Bloomberg reported that Softbank — OYO’s largest investor — had lowered the hospitality and travel tech company’s valuation by over 20% to roughly $2.7 billion on its private books after benchmarking OYO against peers with similar operations. OYO had, however, rejected the markdown, terming it “patently incorrect”.

Also Read: Electronics Mart India IPO subscribed 1.69 times on first day of offer

After the company showed its losses had narrowed and reported an Ebitda-positive quarter, the company’s share price in the private market had risen to Rs 94 per share. But following SoftBank’s reported slash in valuation, OYO’s shares sold off in the unlisted markets and the share price fell by 13% to Rs 81 apiece. In the week ended September 30, nearly 1.23 million shares of the company were sold in the private market compared with over 0.16 million sold in the previous week, the PTI report added.

“Last year, transactions (of OYO shares) in private markets happened at around $8 billion range, but in the recent past transactions are happening up to $6.5 billion valuation,” Analah Capital CEO and founder Vaishali Dhankani said.

Dhankani, who is also the CEO of Tradeunlisted.com, a tech-based distribution platform for private equity, said some of OYO’s “past distractions seem to have gone away and one anticipates a stronger bottom line and sticking to its knitting”.

These developments come at a time when OYO has been readying itself for an IPO, likely for early next year. The company had filed its preliminary papers with Sebi to raise Rs 8,430 crore through an initial share sale in October 2021. When it filed the draft prospectus for its IPO, OYO was eying a valuation of around $10 billion but later prepared to settle for a lower valuation of around $7-8 billion.

British Council to organise ‘Ready, Set, Read’ challenge to inculcate reading habit among childrens

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British Council, UK’s international organisation for cultural relations and educational opportunities, is organising the Reading Challenge for children. It is designed for children aged five to 12 years, aiming to help them become confident and engaged readers, according to an official announcement.

As per the release, in this programme, children are challenged to read six books, specially selected by the British Council, within a span of 6 weeks. The essence of the challenge is to read one book in one week.

It also claims that the students will also have the opportunity to join a superstar team and embark on an adventure in a fictional summer obstacle course brought to life through the enchanting illustrations of renowned children’s illustrator, Loretta Schauer.

This challenge is designed to instil the love for reading as a lifelong habit. Children will also have the opportunity to participate in expert-curated activities to enhance their writing skills and vocabulary development, as outlined in the release.

Council claims that as part of the activities, students will learn to write book reviews and plan and organise the key elements of a story in a more compelling and structured manner. These interactive workshops aim to enhance the overall reading experience, encouraging children to not only enjoy the books they read but also to express their thoughts more eloquently and create captivating stories of their own.

As informed in the release, the last date to register is 4 November 2023.

Rupee opens lower, may depreciate further on strong dollar, elevated crude prices and risk aversion in markets

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Rupee depreciated on Monday as it opened 24 paise lower at 81.58 per dollar amid rising crude prices, risk aversion in equity markets, strong dollar and weak Asian peers. In the previous session, rupee extended its initial gains and settled 37 paise higher at 81.36 against US dollar, after the Reserve Bank of India raised the benchmark lending rate by 50 basis points. At the interbank forex market, the local unit opened at 81.60 against the greenback, and ended at 81.36, up 37 paise from its previous close. Rupee has fallen to around Rs 81.50 from roughly Rs 73.21 a year ago, a decline of about 9.5%. In other words, over the past 12 months, the US dollar has appreciated 9.5% against the Indian rupee.

Also Read: Petrol, Diesel Price Today, 3 Oct 2022: Fuel cost static; check rates in Delhi, Mumbai, Noida, other cities

“Rupee retraced from its all-time lows after the RBI raised rates by 50bps, the fourth straight increase, as policymakers extended their battle to tame stubbornly high inflation. The RBI has now raised rates by a total 190 basis points since its first unscheduled mid-meeting hike in May. The U.S. Federal Reserve’s relentless and aggressive rate hikes over recent months to curb inflation have battered the rupee, and most other emerging and developed market currencies. The MPC lowered its GDP growth projection for financial year 2023 to 7% from 7.2% earlier, while its retail inflation forecast was held steady at 6.7%.”

“Data released on Friday showed FX reserves fell to $537.52 billion in the week through Sept. 23, notching their steepest weekly fall in six months. The RBI governor in his commentary mentioned that about 67% of the drop in reserves during the current financial year was due to valuation changes as the U.S. dollar strengthened. Today, focus will be on the ISM manufacturing number that will be released from the US; better-than-expected data could extend gains for the dollar. We expect the USDINR(Spot) to trade sideways and quote in the range of 81.20 and 81.80.”

Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas

“Indian rupee appreciated by 0.42% on Friday on sharp rise in domestic equity markets as RBI hiked repo rate by 50 bps to 5.9%. Rupee also appreciated on reports that the central bank is encouraging state-run refiners to reduce dollar buying and has been asked to lean on a special credit line. India’s current account deficit rose to $23.9 billion in Q1 FY23. Though it is higher than $13.4 billion in the previous quarter, it was much better than estimates of $30.5 billion. Weak US Dollar also supported Rupee. Dollar index is trading 111.848 (-0.36%).”

“We expect Rupee to trade with a positive bias on jump in domestic equities and rise in risk appetite in European markets. Weak US Dollar and overall weak tone in crude oil prices may also support Rupee. However, concerns over global economic recovery may cap sharp upside. Investors may also remain cautious ahead of Core PCE Price Index, Personal Income and Chicago PMI from US. USDINR spot price is expected to trade in a range of Rs 80.30 to Rs 82.50 in next couple of sessions.”

Also Read: Reliance, Suzlon Energy, Bharti Airtel, Zydus Lifesciences, Poonawalla Fincorp, APL Apollo stocks in focus

Amit Pabari, MD, CR Forex Advisors

“The impact of RBI policy on the Rupee remained muted as RBI didn’t surprise any new tool for liquidity or borrowing. However, in the final hour of the interbank trading, RBI surprisingly asked state-run refiners (IOCL, HPCL, BPCL) to lean on the $9 bln credit line instead of the spot market for dollars. This resulted in a sharp appreciation in Rupee from 81.50 to 81.15, but weekly, monthly, quarterly and financial half-yearly closing resulted in a strong dollar demand, which took it back to 81.45. Overall, we expect the USDINR pair to remain well supported near 81-81.20 levels. On the flip side, 82 will act as a crucial resistance. If that is taken out then we could see a sharp jump towards 83 in a short span of time.”

(The recommendations in this story are by the respective research analysts and brokerage firms. FinancialExpress.com does not bear any responsibility for their investment advice. Capital markets investments are subject to rules and regulations. Please consult your investment advisor before investing.)

Ontario fund buys 30% in Mahindra arm for Rs 711 cr

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Canada-based Ontario Teachers’ Pension Plan Board (OTPP) will buy a 30% stake in Mahindra Group’s renewable energy platform – Mahindra Susten – for `711 crore.

The parties have signed binding agreements pursuant to which Ontario Teachers’ will buy the Mahindra Susten stake at an equity value of Rs 2,371 crore.

The platform – Mahindra Susten – includes renewable engineering, procurement and construction businesses with capacity constructed of over 4 GWp and an independent power producer business with about 1.54 GWp of operational solar plants. OTPP is a global investor with net assets of C$242.5 billion.

Also Read: US Stock Market Investment from India: How to start, which funds to buy – All your questions answered

The companies will also set up an Infrastructure Investment Trust (InvIT), including renewable power assets seeded by MSPL with operational capacities of about 1.54 GWp, by FY24, Mahindra said in a regulatory update.

“This transaction will enable Mahindra Susten to build a strong renewable energy business focused on solar energy, hybrid energy, integrated energy storage and round-the-clock green energy plants,” it said.

Consequent to the stake sale, Mahindra Susten would cease to be a wholly-owned subsidiary of Mahindra Holdings. However, with the latter holding more than 50% of equity share capital, the platform would continue to be a subsidiary.

As part of the transaction, shareholder loans of Rs 575 crore advanced by Mahindra Group to the platform would also be repaid. Following the deal, Mahindra Group will receive about Rs 1,300 crore (sale of 30% stake and repayment of loans).

Mahindra will deploy Rs 3,050 crore (Rs 1,300 crore from the stake sale and an additional Rs 1,750 crore) into the business and InvIT over the next seven years. On its part, Ontario Teachers will infuse an additional amount of up to Rs 3,550 crore during the same period.

Mahindra will also sell an additional 9.99% stake in Mahindra Susten to any investor, or 2OL, by May 31, 2023, based on mutually agreed considerations, the statement added.

“The partnership with Ontario Teachers’ will enable the Mahindra Group to unlock value in the renewable energy sector with continued joint investments towards accelerated growth. Mahindra Group aims to be Planet Positive by 2040 and the continued inflow of patient, long-term capital in our climate positive businesses is validation of our commitment to be a global Environmental, Social and Governance leader,” Puneet Renjhen, member of Group Executive Board and executive vice president, EVP, Partnerships & Alliances at the Mahindra Group, said.

Avendus Capital was the financial advisor and Khaitan & Co the legal advisor to the Mahindra Group, while Ambit was the financial advisor and Cyril Amarchand Mangaldas the legal advisor to Ontario Teachers’ for the transaction.

“As part of our climate change strategy, we have committed to continue growing our portfolio of green assets around the globe with investments like Mahindra Susten. This strategic partnership marks the beginning of what we hope will be a long-term and mutually beneficial relationship with the Mahindra Group,” Bruce Crane, senior managing director, Asia Pacific, Infrastructure & Natural Resources at Ontario Teachers, said.

As per the updated Nationally Determined Contributions of the United Nations Framework Convention on Climate Change, India has committed to reduce emissions intensity of its GDP by 45% by 2030 from its 2005 levels, and achieve about 50% cumulative electric power installed capacity from non-fossil fuel-based energy resources by 2030. These are steps towards achieving India’s long-term goal of reaching net-zero by 2070, which will give a fillip to the renewable industry in the country.

Rupee likely to trade with negative bias next week amid continued FII outflow from domestic equity markets

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By Raj Deepak Singh

The Indian rupee depreciated this week to a new all-time low and touched 82.2875 level amid continued FII outflow from domestic equity markets. However, rupee found some support after the Reserve Bank of India raised its key repo rate by 50 basis points to 5.90% and appreciated towards 81.50. The dollar index also dropped by almost 1.00% after touching a fresh two-decade high at 114.77 last week after the Bank of England conducted bond buying to stabilize financial markets, which triggered profit booking in the US dollar after the recent rally. Further, dollar was pressurised after German Chancellor Olaf Scholz set out a 200 billion euro ($194 billion) package to protect companies and households from the impact of soaring energy prices.

We expect the US dollar to depreciate further in the coming week and break the level of 111.00 to touch 110.40 level amid expectations of a drop in US 10-year treasury yields. We expect rupee to trade with a negative bias next week amid continued FII outflow from the domestic equity markets. Further, rupee may be pressurised by rise in crude oil prices. Moreover, Investors will keep an eye on ISM manufacturing PMI, services PMI, nonfarm payrolls, and unemployment rate data from the US. US unemployment data is expected to remain unchanged at 3.7%

USDINR traded in upward resistance and support wedges and broke resistance wedge to start a new upward trend towards the all-time high of 82.2875. The pair is expected to continue trading in upward trend towards the level of 82.50 after breaking the key resistance level of 82.22 in the coming week. It may consolidate between 82.00 to 82.22 levels before breaking 82.22 level to touch 82.50 level.

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Also Read: Sensex, Nifty snap 7-day losing streak after RBI hikes repo rate; Nifty eyes 17700 with support at 16850

For Monday Rupee may appreciate amid weakness in us dollar index. Further, rupee may be supported by rise in interest rate by RBI from 5.40% to 5.90%. Moreover, investors will focus on ISM manufacturing data from the US, which is expected to remain unchanged at 52.8. USDINR (Sep) is likely to trade towards the level of 81.35.

(Raj Deepak Singh is an Analyst – F&O, Currency, and Commodities at ICICIdirect. The views expressed are the author’s own. Please consult your financial advisor before investing)

Gold price today, 13 Sep 2022: MCX gold gets cheaper, down over Rs 250, US CPI inflation to guide yellow metal

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Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold prices in India were trading lower on Tuesday, yellow metal firmed up globally. On Multi Commodity Exchange, gold October futures were ruling Rs 276 or 0.6 per cent down at Rs 50,355 per 10 gram, as against the previous close of Rs 50,631. Silver December futures were trading Rs 463 or 0.8 per cent down at Rs 57,028 per kg. Globally, yellow metal prices held firm near a two-week high hit in the previous session, helped by a subdued dollar, while investors awaited U.S. inflation data that could provide cues on the Federal Reserve’s interest rate hike path, according to Reuters. Spot gold rose 0.1% to $1,725.70 per ounce, and US gold futures were down 0.2% at $1,736.80.

Also read: Inflation likely to stay 6.5 -6.7% range in coming months; Industrial growth to remain robust

Gold prices held firm after a rally witnessed in the past few sessions, hovering near two-week high, helped by a subdued dollar, while investors awaited U.S. inflation data that could provide cues on the Federal Reserve’s interest rate hike path. As the Dollar index and U.S. Yields witnessed pressure in the earlier session and a rally was witnessed in the both gold and silver prices. Although some profit booking could be on cards after a much awaited upside by market participants. According to the CME fed watch tool there is a 90% probability for one more 75bps rate hike to combat inflation. Germany’s economy, Europe’s largest, will contract next year as a dramatic rise in energy costs due to the war in Ukraine extinguishes the chances of recovery after pandemic-related lockdowns, the Ifo institute said. Focus today will be on U.S. consumer price data, where the expectation is that headline inflation could rise by 8.1% YoY in August versus 8.5% in July. Broader trend on COMEX could be in the range of $1700-1750 and on domestic front prices could hover in the range of Rs. 50,150- 50,870.

Also read: Inflation may cool off in next 2 quarters, another 50 bps RBI repo rate hike likely in September

Bhavik Patel, Commodity & Currency analyst, Tradebulls Securities

Gold had recovered somewhat after both US Treasury securities and the Dollar index softened from $110.23 to $108.18 in a couple of trading sessions. Today’s US CPI will guide gold movement further although 75bps rate hike on 21st sept is already factored in by the market. Until now hedge funds had increased their long positions in USD and profit taking was due which would short squeeze precious metals and that is what is happening right now where silver market rallied 6% at the start of the week as there were heavy shorts in that counter (bearish bets was at 3 year high). Nothing has changed fundamentally and the global backdrop continues to favor the dollar and U.S. assets in general. We believe any confirmed trend will only emerge after the US Fed meet where the Fed will give further ideas about raising interest rates. In MCX 50780 is proving to be strong resistance as since past three trading sessions, gold has reversed from that zone. So go long only above that level.

Tapan Patel, Senior Analyst – Commodities, HDFC Securities

Gold prices held steady on Tuesday with spot gold prices at COMEX were trading near $1722 per ounce in the morning trade. MCX Gold October futures opened lower near Rs. 50424 following stronger rupee. Gold prices are trading firm supported by a weaker dollar as market players are awaiting key US CPI data. We expect gold prices to trade sideways to up for the day with COMEX Spot gold support at $1710 and resistance at $1740 per ounce. MCX Gold October support lies at Rs. 50200 and resistance at Rs. 50800 per 10 gram.

(The views in this story are expressed by the respective experts of the research and brokerage firm. Financial Express Online does not bear any responsibility for their advice. Please consult your investment advisor before investing.)

How do new internet IPO companies fare when it comes to valuation and profitability?

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By Sandip K. Khetan and Veenit Surana

In the short run, the market can be a voting machine i.e., tallying up which firms are popular and unpopular and lured by investor sentiment. In the long run, it is a weighing machine i.e., determining the substance of a company and its potential. This is a one-off description of how the new internet IPO (e-commerce, online, platform) companies are faring in the current market.

India’s growth in terms of PE/VC investments also has been significant over the past several years. After remaining resilient for almost six months amid global headwinds of tightening liquidity and rising inflation, Indian PE/VC investment flows for the first time has shown some tepidness. PE/ VC investments in July 2022 were the lowest in over a year both in terms of value and volume. At US$3 billion, PE/VC investments in July 2022 were 69% lower than the value recorded in July 2021 (US$9.7 billion) and 40% lower than investments in June 2022 (US$4.9 billion). PE-backed IPOs, which were one of the defining features of PE/VC exits last year, continue to remain elusive in 2022. With tightening of liquidity, uncertainty caused by geo-political events, and sharp correction in some recently listed start-ups in the initial months of 2022, the sentiment for IPOs from start-ups and other companies have dampened to an extent.

Also read: What will save Indian share market from mild recession? Aditya Birla MF’s Mahesh Patil answers; check top bets

To better understand these companies and their potential to grow, the underlying business model holds the key. Some are transformative while others aim to bring simplicity and efficiency to the way things are currently performed and are incrementally innovative as well. Over the past few years, India has risen to become a competitive platform for such companies by creating employment, attracting talent, obtaining funding and placing India firmly on the global map to innovatively solve complex problems at scale.

One part of the equation is attributable to market fundamentals and investor preference, and another part to the growth potential and maturity of these companies. There is a long runway as we have 100 + Unicorns and some of them are listed. There are many companies in this pipeline which include companies in fintech, consumer internet, education, enterprise tech and media and entertainment sectors. The maturity of the start-up ecosystem has also changed since many of the start-ups which were funded by PE and other investor groups are looking for an exit and a lot of these businesses have also matured and have acquired scale as well.

Internet companies are not typical, and valuation can be a challenge. As investors competed with each other in the process valuations were driven higher and higher. Valuation methodologies have continued to evolve over time. During the dotcom era number of clicks on a website, etc. were some of the ways which led to inflated valuation wherein the view changes from just getting visitors to your website to tracking actual revenue generated. There could be other methods of valuation emerging, e.g., gross merchandise value/order value, etc. evaluating the true potential will take time to evolve, let alone the wider socially and consumer-centric positive impact of many of these companies. Themarket also weighs these companies on the potential the companies prompt in terms of their future plans wherein the objective of IPOs for most of these companies was acquisition or growth.

One driver to attract funding for internet companies compared to traditional businesses is the ability of the internet to scale up quickly. Traditional businesses would have a tangible product, may require a factory to facilitate production and perhaps be more capital intensive. On other hand, internet companies connecting buyers and sellers/service providers can scale up quickly. It can be a winner-takes-all marketplace. Once companies become dominant players they can work towards profitability.

Also read: We’ll become a 360-degree financial services provider, says Religare chief

On a broader business and investment trend, India is amongst the world’s fastest-growing start-up ecosystems. From an investment perspective, investors are adopting a cautious approach, both with private equity and large funds reducing their investment spending. In recent times it has been observed that many companies also trimming down their IPO size. There is a behavioural shift with investors potentially seeking companies that are profit-making (with good cashflows or a clear path to profitability) vs. loss-making (internet) companies.

An IPO is a transformative journey from private to public and there are a number of challenges faced by issuers, including both regulatory/external challenges as well as getting their house in order to be effective in the IPO journey and not underestimating the rigour involved. Companies with proven business models, higher standards of governance and better financial positioning are the companies that will find it easier to list.

While maintaining caution in investing and not being tempted by “this time it’s different”, appreciating a different perspective and supporting new internet companies would lay the foundation for an even more exciting and rewarding outcome.

(Sandip K. Khetan, Partner and Leader, Financial Accounting Advisory Services, EY India and Veenit Surana, Partner, Financial Accounting Advisory Services, EY India. The views expressed in the article are of the author and do not reflect the official position or policy of FinancialExpress.com.)