Month: December 2022

Share Market HIGHLIGHTS: Sensex tanks 954 pts, Nifty ends at 17016 as bears prowl D-Street; Reliance top drag

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Share Market News Today | Sensex, Nifty, Share Prices HIGHLIGHTS: Domestic stock market indices BSE Sensex and NSE Nifty 50 ended more than 1.5 per cent down on Monday, as global growth concerns hit investor sentiment. BSE Sensex crashed 954 points or 1.6 per cent to settle at 57145, while NSE Nifty 50 index plunged 311 points or 1.8 per cent to finish trade at 17016. Stocks of HCL Tech, Infosys, Asian Paints, TCS, UltraTech Cement, Wipro among others ended in the green. On the flip side, Maruti Suzuki, Tata Steel, ITC, Bajaj Finance, Axis Bank, M&M, and Reliance Industries Ltd (RIL), among others were top BSE Sensex laggards. Sectorally, Bank Nifty index plunged 2.35 per cent or 930 points to settle at 39,027. India VIX, the volatility index, jumped 6.3 per cent to finish at 21.89 levels.

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

15:35 (IST) 26 Sep 2022 BSE Sensex, Nifty end more than 1.5% down

BSE Sensex crashed 954 points or 1.6 per cent to settle at 57145, while NSE Nifty 50 index plunged 311 points or 1.8 per cent to finish trade at 17016

15:27 (IST) 26 Sep 2022 India should re-emerge as very strong capital magnet

India has been in a relatively sweet spot despite the hawkish environment but in sympathy has to increase rates to avoid capital outflow. The Reserve Bank has also sacrificed nearly 20% of the reserves in trying to defend the rupee but when the liquidity flows out of Emerging markets nothing really can stop the flow. The risk now is a currency contagion with the USD strengthening on a daily basis. For long term investors there are opportunities to be had in such environment. This is not the first or is likely to be the last crisis. If you are invested in good businesses and are following a framework for your investing, there need not be too much worry as once the dust settles, India should re-emerge as a very strong capital magnet. Staying with strength in the market remains one of our favourite ways to not predict the market yet ride the wave as and when we get it. Alok Jain, smallcase manager & Founder, Weekend Investing

15:22 (IST) 26 Sep 2022 Investors cautious on outlook for equity markets globally

It seems that Indian markets are now catching up with global markets which have been soft for a month now. The sell-off which began last Friday continues today with the mid/small cap stocks particularly taking it on the chin. With today’s fall the Nifty return CYTD 2022 has turned negative. The only sector holding out is the IT sector which is in the green due to the tailwind of a depreciating rupee which is at an all-time low of ~Rs.81.50. Investors are cautious on the outlook for equity markets globally due to the increasing assertiveness of global central banks on implementing interest rate hikes to tame rising prices. Thus central banks are likely to prioritise inflation control vis a vis economic growth thus raising the risks of a global recession. Vineet Bagri, Managing Partner- TrustPlutus Wealth

15:19 (IST) 26 Sep 2022 Engineering consultancy & construction firm WAPCOS files IPO papers with SEBI

WAPCOS has filed initial papers with the market regulator for its proposed Initial Public Offering (IPO). The public issue with a face value of Rs 10 per equity share is a complete offer-for-sale (OFS) of up to 32,500,000 equity shares by the President of India, acting through the Ministry of Jal Shakti, Government of India (the selling shareholder), according to the draft red herring prospectus.

14:57 (IST) 26 Sep 2022 RBI MPC likely to raise repo rate 50 bps to tame inflation

The Reserve Bank of India may raise repo rates by 50 basis points in the upcoming Monetary Policy Committee meeting later this week, with taming inflation in mind, which has remained above the tolerance threshold of 6% for eight months in a row. The MPC is expected to take cues from its global counterparts, including the US Federal Reserve, to raise interest rates for the fourth time in a row. The MPC will start its three-day deliberations on 28 September, Wednesday, and will announce the decision Friday (30 September). The RBI has raised the repo rate by 140 bps since May. A 50 bps increase again this week will take the policy rate to a three-year high of 5.9 per cent. RBI had raised the repo rate by 40 bps in May and 50 bps each in June and August. The present rate is 5.4 per cent.

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14:28 (IST) 26 Sep 2022 Use volatility to build positions; Bank, FMCG well-placed

“Now, the market is eyeing the RBI monetary policy, scheduled this week. We recommend investors avoid riskier bets this week as volatility is likely to continue in the near term. Further, the market is eyeing the upcoming earning season & the festival demand, which will likely drive the market fundamentals. We recommend investors to use this volatility in the coming days in a phased manner to build a position with a view of 12-18 months in quality companies where earnings visibility is very high. In this context, domestic-oriented themes like Banks, FMCG, Hospitals, Domestic Industrials, and Discretionary consumption are well placed over export plus cyclical-oriented themes.”

~Neeraj Chadawar, Head – Quantitative Equity Research, Axis Securities

14:26 (IST) 26 Sep 2022 Sharp upward movement in dollar index creates weakness in domestic market

“The Indian market performance showed resilience in the last couple of months, outperforming the global market by a superior margin based on the robust economic outlook compared to other emerging markets. After a hawkish US Fed stance, we are observing weakness in the global market on an expectation of a continuation of rate hikes in the remaining two FOMC meetings of 2022. In that context, term performance was likely to be range-bound due to a stronger dollar. The Indian currency has performed well, and it has been stable vis-a-vis other emerging market currencies, on account of higher foreign exchange reserve, robust growth outlook, and macroeconomic stability. However, the sharp upward movement in the dollar index has created a weakness in the domestic market.”

~Neeraj Chadawar, Head – Quantitative Equity Research, Axis Securities

14:26 (IST) 26 Sep 2022 Crude oil, rate hikes, liquidity key headwinds for Indian economy; US recession may weigh on domestic markets

In the near term, we expect policy tightening in the developed countries could be more than what is currently being expected and therefore it would be a negative surprise for the global financial markets as well as Indian equities. At the same time, signs of broad-based growth slowdown and the fear of recession are likely to make the policy authorities in the developed countries more circumspect about the continuation of such policies. Read full story

13:18 (IST) 26 Sep 2022 Affordable housing: Demand, entry of new developers, govt aid, urbanisation help India’s realty sector growth

Affordable houses offer more business stability in terms of price as it is directly for the end-users. Most significantly, this segment has the support of the government. The union government policy is one of the main catalysts behind the rapid demand for low-cost housing and propelling the development of the real estate industry. The government’s decision to grant infrastructure status to affordable housing well as bring it under the ambit of initiatives like the credit-linked subsidy scheme under the Pradhan Mantri Awas Yojana (PMAY) has attracted a wide array of both public and private investments into the segment. Read full story

13:15 (IST) 26 Sep 2022 PVR to invest Rs 350 cr for 100 new screens in FY23; expects Inox merger to close by Feb next yr

Film exhibition company PVR Cinemas will invest up to Rs 350 crore to open 100 new screens in FY23, a top official said on Monday. It also expects its mega-merger with Inox Leisure to close by February 2023, after which it will start to run as a combined business, PVR’s chief executive Gautam Dutta told PTI over the phone. Read full story

12:51 (IST) 26 Sep 2022 Gold Price Today, 26 Sep 2022: Gold falls to over 2-yr low on strength in US Dollar; check support, resistance

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate and silver rate were trading weak in India on Monday, on the back of the strength in US Dollar. On Multi Commodity Exchange, gold October futures were trading low at Rs 49,425 per 10 gram. Silver December futures were ruling Rs 521 or 1 per cent down at Rs 55,712 per kg. Globally, yellow metal prices fell to a new 2-1/2-year low weighed down by a sturdy dollar and prospects of further interest rate hikes by the U.S. Federal Reserve to bring down inflation, according to Reuters. Read full story

12:32 (IST) 26 Sep 2022 Piramal Enterprises slips 9%, hit 52-week low

Piramal Enterprises share price slipped 9% to hit 52-week low intraday. In the past two days, the stock slipped 11 per cent after the RBI directed M&M Financial Services to immediately cease any recovery or repossession activities via an outsource till further orders.

12:29 (IST) 26 Sep 2022 Rupee depreciation adding to stock markets fall

“Indian equity markets are purely reacting on account of the weakness in the U.S. market after Federal Bank’s 75 bps rate hike. Apart from Federal Bank, Central banks in Britain, Switzerland, Sweden, and Norway also hiked interest rates. These actions made fears of recession even stronger as inflation is still on the higher side. RBI MPC is scheduled on September 28-29 and 50 bps hike in rate is expected which may further induced the fear of slowing down the reviving economy. The weakness in rupee against US dollar and depleting forex reserves are adding more fuel to this fall. Nifty may see a further dip towards 16800 levels with resistance around 17720 levels and BankNifty to 38350 levels having resistance around 38950 levels in the current scenario.”

~Ravi Singh, VP & Head of Research, Share India Securities

12:18 (IST) 26 Sep 2022 Rupee falls to fresh record low

Rupee depreciated further to hit a new record low of 81.63 against the US dollar amid risk aversion in equity markets. “Rupee falls to fresh all-time lows as the dollar strengthens across the board. Hawkish Fed outlook, political instability in China and a sell-off in pound after the tax cut announcement is also disturbing the overall market sentiment. This week, RBI will release its policy statement and this is likely to influence the rupee that is currently falling sharply against the US dollar,” said Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services.

12:15 (IST) 26 Sep 2022 Markets deep in red amid weak cues

The Sensex was down 831.69 points or 1.43% at 57267.23, and the Nifty was down 280.10 points or 1.62% at 17047.20.

12:04 (IST) 26 Sep 2022 Remain cautious, given volatility in markets

“Markets continue to witness the onslaught, with bears tightening their grip as global investor sentiments have weakened, on the back of recession fears in the USA & Europe. Crude Oil, which is an indicator of economic optimism, has also collapsed with the US WTI trading below the 80 mark, its lowest in the past 8 months, clearly reflecting the recessionary fears, and the overall impact on the global economy. India’s currency, the Rupee too trades at record highs, above the 81 mark, as capital flight to safety, has resulted in the US Dollar Index, hitting 22-year highs. India’s benchmark index, the Nifty, has breached a key support zone of 17400-17500, which will now act as immediate resistance, whereas technical support is seen around the 16600-16700 zone. Investors are advised to remain cautious, given the increase in volatility in markets.”

~Aamar Deo Singh, Head Advisory, Angle One

12:00 (IST) 26 Sep 2022 Uncertainty, RBI rate hike dragging markets

Global uncertainty and fear of rate hike in RBI policy is the reason for the market sell-off. Nifty supports are at 16900 followed by 16750, while resistance is at 17200-17350. Bank Nifty support is at 38550-38200 while resistance is at 39200-39500

~Rajesh Palviya VP – Research (Head Technical and Derivative) Axis Securities

11:52 (IST) 26 Sep 2022 Nifty weakness in line with global weakness; Bank Nifty support at 38600

“Nifty is weak in line with the global weakness; however it is at a very crucial juncture where it is likely to find support. The levels of 17125 are the 50-week MA for Nifty while 16993 (rounded off to 17000) is the 200-DMA for Nifty. Further to this, the FIIs have added over 100,000 net short positions as of Friday EOD. All this points at likely support for Nifty in 16900-17000 zone. A very strong support is likely around these levels. For Bank Nifty, the index has support at 38600 in form of 50-DMA”

~Milan Vaishnav, CMT, MSTA, Consulting Technical Analyst and founder, Gemstone Equity Research & Advisory Services

11:34 (IST) 26 Sep 2022 Global headwinds pulling indices down

Benchmark indices are trading deep in the red with Nifty slipping below 17,000 briefly. “Global factors including geopolitical, currency and interest rates are creating short-term headwinds in the markets,” said Narendra Solanki, Head- Equity Research at Anand Rathi Shares & Stock Brokers

11:29 (IST) 26 Sep 2022 Rupee hits record low to 81.555 as dollar scales new two decade peak

“Rupee falls to fresh all-time lows as the dollar strengthens across the board. Hawkish Fed outlook, political instability in China and sell-off in pound after the tax cut announcement is also disturbing the overall market sentiment. This week, RBI will release its policy statement and this is likely to influence the rupee that is currently falling sharply against the US dollar.”

~ Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services

11:28 (IST) 26 Sep 2022 Nifty may hit 18300 in Oct, Bank Nifty looks positive ahead of RBI MPC, monthly F&O expiry; Buy SBI, Titan

Rupee movement will also be key monitorable, which could lead to sectoral churn as defensives are attractively priced while rate sensitives may be vulnerable to temporary profit booking after sharp rally recently. Sectorally, Consumption, Auto, BFSI remain in structural uptrend while Pharma provide favourable risk reward proposition. Read full story

11:28 (IST) 26 Sep 2022 Nifty slips below 17000

Benchmark NSE Nifty 50 slipped below 17000 for the first time since 28 July amid weak global cues. Bank Nifty fell 920 points or 2.33% to 38,630.

11:26 (IST) 26 Sep 2022 S&P Global projects India’s FY23 GDP growth at 7.3%

S&P Global Ratings on Monday projected India’s economic growth at 7.3 per cent for FY23 with downside risks. The global rating agency in its Economic Outlook for Asia Pacific 2022 report said that inflation is likely to remain above RBI’s upper tolerance threshold of 6 per cent till the end of 2022. India’s growth next year will get support from domestic demand recovery after the coronavirus pandemic, it added. “We have retained our India growth outlook at 7.3 per cent for the fiscal year 2022-2023 and 6.5 per cent for the next fiscal year, although we see the risks tilted to the downside,” the rating agency said.

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10:21 (IST) 26 Sep 2022 Campus Activewear shares tumble 4%

Campus Activewear shares fell 4% after the company board approved the merger of its wholly-owned subsidiary, Campus AI with the company.

10:08 (IST) 26 Sep 2022 Sustained rise is Gold price unlikely until US dollar reverses from top

“COMEX gold slipped below $1650/oz, lowest since April 2020 as stronger dollar and higher treasury yields dampened demand for the yellow metal. The US 10-year yield has come close to 2010 high in reaction to Fed’s aggressive monetary tightening stance. The US dollar is trading strong this morning however we need to see whether it sustains above the resistance zone of 110.50-111 for this week. Gold has moved below the crucial support of $1670 and is sustaining below the same. Although it might attract buying at lower levels. A sustained rise is unlikely until the US dollar reverses from the top.”

~ Ravindra Rao, CMT, EPAT, VP- Head Commodity Research at Kotak Securities

10:07 (IST) 26 Sep 2022 HUL hits 11-month high

Hindustan Unilever shares gained 2 per cent to hit over 11-month high in a weak market. In the past six months, the stock has rallied nearly 40 per cent, as against 0.34 per cent decline in the S&P BSE Sensex.

10:01 (IST) 26 Sep 2022 Nifty may fall to 17000, resistance at 17500; buy these two stocks to pocket gains

Nifty has formed a big Bearish candle on daily scale and a Bearish candle with longer upper shadow on the weekly frame which indicates pressure at higher zones. Now, till it remains below 17442 zones, weakness may be seen towards 17250 and 17000 zones whereas hurdles are placed at 17550 and 17667 zones.

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09:59 (IST) 26 Sep 2022 Petrol, Diesel Price Today, 26 Sep 2022: Fuel cost steady; check rates in Delhi, Mumbai, Noida, other cities

Petrol and Diesel Rate Today in Delhi, Bangalore, Chennai, Mumbai, Lucknow: The price of petrol and diesel has been kept steady on 26 September 2022 (Monday), keeping costs steady for more than three months now. The petrol rate and diesel rates in Delhi are at Rs 96.72 and Rs 89.62 a litre, respectively. In Mumbai, petrol is retailing at Rs 106.31 per litre and diesel at Rs 94.27 per litre. The last country-wide change in price came on 21 May 2022, when Finance Minister Nirmala Sitharaman announced a cut in excise duty on petrol by Rs 8 per litre and Rs 6 per litre on diesel. Read full story

09:57 (IST) 26 Sep 2022 What should investors do with Harsha Engineers shares after premium listing?

Harsha Engineers Ltd. has debuted at Rs. 450 i.e. 36% above its issue price. The company’s good listing can be attributed to outstanding prospects and a phenomenal response from the investors. The company’s strong fundaments, competitive advantages like high entry barriers and switching costs, experienced management team, strategically located manufacturing facilities and robust growth outlook makes this stock a strong candidate for long-term investing. Further, the company is a proxy play on India becoming the global manufacturing hub. Those who applied for listing gains can maintain a stop loss of Rs. 400. Our recommendation for the investors is to hold the allotted shares and long-term investors can accumulate the stock on dips. Santosh Meena, Head of Research, Swastika Investmart

09:52 (IST) 26 Sep 2022 Power stocks tumble

BSE Power index fell over 3 percent dragged by the Power Grid, Adani Power, JSW Energy

09:51 (IST) 26 Sep 2022 Harsha Engineers shares list at 36% premium

Harsha Engineers shares listed on the stock exchanges today at a premium to the IPO price amid weak market momentum. Shares of the company began trading on the NSE at Rs 450 per share, up 36% from the IPO price of Rs 314-330 apiece per share and on the BSE the stock debuted at Rs 444 apiece, rising 35 per cent. At the time of listing, the company had a market capitalisation of Rs 4,042.36 crore. The company launched its Rs 755-crore initial public offering (IPO) from September 14-16 and received strong demand across investor categories. The IPO was subscribed 74.7 times. The Harsha Engineers International IPO comprised a fresh issue of Rs 455 crore and an offer for sale (OFS) of up to Rs 300 crore by shareholders and promoters. 

09:41 (IST) 26 Sep 2022 Suzlon Energy sinks over 5%; to raise Rs 1,200 crore via rights issue

The company said its board has approved raising Rs 1,200 crore via a rights issue of 240 crore shares.

09:31 (IST) 26 Sep 2022 Nifty top gainers, losers

Power Grid Corporation, Tata Motors, Hindalco Industries, M&M and Hero MotoCorp were among major lowers on the Nifty, while HUL, BPCL, Bajaj Finserv, Nestle India and Britannia Industries were the gainers.

09:30 (IST) 26 Sep 2022 Buy on dips strategy may not work now

“The global macro construct is not favourable for equity markets in the short run. The dollar index above 113 and the US 10-year yield at 3.73% is likely to aggravate FPI outflows which have been gathering momentum during the last 3 days. The probability of a global recession is also increasing since the Fed continues to be ultra hawkish. The 5% cut in MSCI World Index last week indicates the bearish undertone of global equity markets.”

“In this scenario the buy on dips strategy which worked since the June lows need not work now. Investors have to be cautious and remain vigilant. However, India will outperform both in economic growth and market performance. Therefore, selective buying can be done in domestic economy-facing segments like financials, autos, capital goods and select FMCG on sharp market declines.”

~VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services

09:27 (IST) 26 Sep 2022 Nifty, Sensex open in red

Benchmark indices opened on a negative note with Nifty below 17200 on the back of weak global cues. The Sensex was down 564.77 points or 0.97% at 57534.15, and the Nifty was down 172.30 points or 0.99% at 17155. Weakness spread to broader markets as well, as Nifty MidCap 100 and Nifty SmallCap 100 indices dropped up to 2 per cent. All sectors plunged in the red with Nifty Auto, Nifty Metal, and Nifty Realty indices witnessing a selloff. Reliance Industries and ICICI Bank were the top index draggers

09:09 (IST) 26 Sep 2022 Bears grip D-Street in pre-open

Benchmark indices are trading lower in the pre-opening session amid weal global cues. The Sensex was down 760.07 points or 1.31% at 57338.85, and the Nifty was down 214.60 points or 1.24% at 17112.70.

08:56 (IST) 26 Sep 2022 Economic activity still below pre-pandemic level: ADB

With economic activity still to reach pre-pandemic levels, the RBI may slow down the pace of rate hikes until next year to quell soaring inflation while supporting growth, the Asian Development Bank (ADB) says in its latest report. The Manila-based multilateral funding agency has raised the inflation forecast for the current fiscal year ending in March 2023 to 6.7 per cent from its earlier projection of 5.8 per cent. For the next fiscal year too, the forecast has been revised upwards to 5.8 per cent from 5 per cent earlier. Inflation will remain elevated this year and the next, ADB said in an update to its flagship Asian Development Outlook (ADO) 2022 report.

08:54 (IST) 26 Sep 2022 Rupee likely to depreciate on strong dollar, bond yields; USDINR to trade with positive bias in this range

The Indian rupee is likely to depreciate on Monday amid strong dollar, bond yields, and risk aversion in equity markets. USDINR(Spot) may trade positive and quote in the range of 81.05 and 81.50. Rupee depreciated 30 paise to close at a fresh lifetime low of 81.09 against the US dollar in the previous session, while it slumped by 83 paise on Thursday, its biggest single-day loss in around seven months. Finance Minister Nirmala Sitharaman on Saturday said that rupee ‘held up very well’ against the US dollar in comparison to other currencies. “If any one currency that did not get into the fluctuation of volatility as much as other currencies, it is the Indian Rupee. We have held up very well against the US dollar,” Sitharaman said.

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08:09 (IST) 26 Sep 2022 RBI rate decision, FII flows among key factors that may guide markets

Investors will keenly watch the outcome of the RBI monetary policy on September 30. Falling crude oil prices and strong local demand may help the RBI to maintain the balance between growth and inflation. The central bank will also announce fiscal deficit data on September 30.

Foreign institutional investors (FIIs) remained net sellers in the capital markets, as they sold shares worth Rs 4,361.77 crore last week. FII outflows have been one of the key reasons behind the recent decline in the equity market. However, experts believe that FII inflows will increase if JP Morgan includes India in its index.

08:06 (IST) 26 Sep 2022 Oil prices steady

Oil prices rose modestly in early trade on Monday after sliding to eight-month lows last week weighed down by a surging U.S. dollar and fears sharp interest rate hikes globally would spark a recession and hit fuel demand. The dollar index climbed to a fresh 20-year high on Monday, capping oil price gains. Brent crude futures were up 17 cents, or 0.2%, at $86.32 a barrel at 0116 GMT, while U.S. West Texas Intermediate (WTI) crude futures were up 21 cents, or 0.3%, at $78.95 a barrel. Both contracts slumped around 5% on Friday.

08:00 (IST) 26 Sep 2022 Will bears drag Nifty to 17150 or bulls stage a comeback? 5 things to know before market opening bell

Indian equity markets are likely to extend losses on Monday as SGX Nifty was in red ahead of the session, hinting at a negative start for domestic benchmark indices NSE Nifty 50, and BSE Sensex. Global cues are expected to dominate this week, but RBI policy and September F&O expiry will lead to volatility in markets, according to analysts. “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,” said Deepak Jasani, Head of Retail Research, HDFC Securities.

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07:51 (IST) 26 Sep 2022 Harsha Engineers shares to list on exchanges

Harsha Engineers International is expected to list on the bourses with a healthy premium, following strong subscription figures in the maiden public offer of the precision bearing cages maker company. Analysts expect the listing premium to be in the range of 40-50 per cent. This translates into a price of Rs 460-500 against the IPO price of Rs 330 per share.

07:50 (IST) 26 Sep 2022 Asian markets in red

Shares in the Asia-Pacific fell sharply on Monday in early trade as negative sentiment continues to weigh in on markets. The Nikkei 225 in Japan dropped 2.19 per cent in early trade, and the Topix slipped 2 per cent. South Korea’s Kospi lost 2.3 per cent. In Australia, the S&P/ASX 200 declined 1.94 perc ent. MSCI’s broadest index of Asia-Pacific shares outside Japan was 1.19 per cent lower.

07:49 (IST) 26 Sep 2022 US, European stocks fall

The US and European stocks tumbled on Friday, the dollar scaled a 22-year high and bonds sold off again as fears grew that a central bank prescription of raising interest rates to tame inflation will drag major economies into recession. The Dow Industrials was poised to confirm a bear market as a deepening downturn in business activity across the Euro zone, and US business activity contracting for a third straight month in September, left Wall Street wallowing in a sea of red. The Dow Jones Industrial Average fell 2.35 per cent, making it the first major US stock index to fall below its June trough on an intraday basis. The S&P 500 lost 2.50 per cent and the Nasdaq Composite dropped 2.55 per cent.

Wall Street eyes lower open on rate hike, recession worries

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US stock indexes headed for a lower open on Monday as investors worried that the Federal Reserve’s aggressive push to curb inflation may tip the country’s economy into recession.

At 8:32 a.m. ET, Dow e-minis were down 139 points, or 0.47%, S&P 500 e-minis were down 21 points, or 0.57%, and Nasdaq 100 e-minis were down 51 points, or 0.45%.

Also read: S&P Global projects India’s FY23 GDP growth at 7.3%; estimates inflation to fall to 5% in next fiscal

“The Fed seems to be alluding to the fact that they can raise rates, halt inflation from rising without creating a recession … they were totally wrong the first time on inflation and unfortunately, they’re going be wrong on avoiding a recession,” Peter Cardillo, chief market economist at Spartan Capital Securities, said.

In premarket trading on Monday, cyclical stocks traded lower on worries that such sharp rate hikes could rattle the economy.

Boeing Co, Chevron Corp, Caterpillar Inc and JPMorgan Chase & Co fell more than 1% each, while growth stocks including Apple Inc, Microsoft Corp , Amazon.com Inc and Tesla Inc shed between 0.3% and 1.3%.

The benchmark S&P 500 index on Friday briefly dipped below its mid-June closing low of 3,666, erasing a sharp summer rebound inUS stocks, before paring losses and closing above that level.

The index will be seen testing its lowest level since late December 2020, if it continues to decline past the opening bell, a sign that Cardillo said could trigger another bout of selling as investors focus on the technical aspect of the market.

Also read: Ceremony and controversy await Kamala Harris during visit to Asia

Sentiment across global markets was bleak after the sterling briefly touched all-time lows earlier in the session on worries that the new British government’s fiscal plan threatened to stretch the country’s finances to their limits.

In a bright spot, shares of casino operators Wynn Resorts , Las Vegas Sands Corp and Melco Resorts & Entertainment jumped between 5.4% and 10.8% after Macau planned to open to mainland Chinese tour groups in November for the first time in almost three years.

The CBOE Volatility index, also commonly known as Wall Street’s fear gauge, hovered near three month highs.

Journalist Soumya Vishwanathan murder case: Hearing for arguments on sentencing on Nov 7

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A Delhi court on Thursday deferred to November 7 the hearing on the quantum of sentence for the five men convicted for killing TV journalist Soumya Vishwanathan in 2008 on grounds that the pre-sentence report and other documents were yet to be filed.

Taking note of the fact that certain documents, including the pre-sentence report of the probationary officer, had to be filed mandatorily if the maximum sentence in the case is death penalty, the court adjourned the hearing to November 7.

On October 18, judge Pandey had convicted Ravi Kapoor, Amit Shukla, Baljeet Malik, and Ajay Kumar under IPC section 302 (murder) and provisions of the Maharashtra Control of Organised Crime Act (MCOCA) and listed the case for hearing arguments on the quantum of sentence on Thursday.

Vishwanathan, 25, who was working with India Today, was found dead in her car on Nelson Mandela Marg in South Delhi on September 30, 2008. A breakthrough came in 2009 during the investigation into the murder of BPO employee Jigisha Ghosh when one of the accused confessed to also being involved in Vishwanathan’s murder.

The judge added that though the Delhi State Legal Services Authority (DSLA) had filed the victim impact report, the convicts had not filed their affidavits. Counsels for the convicts jointly submitted that they were unable to prepare the affidavits as they did not have the details and necessary direction could be issued to the jail superintendent and legal aid counsel, available with prison authorities, to assist the convicts in preparation of the affidavits.

The court said according to the guidelines of the Delhi High Court, in a case where there is a conviction for an offence punishable with the death penalty (as one of the alternate punishments), a pre-sentence report had to be obtained from the probation officer before the hearing on the quantum of sentence.

“Accordingly, the principal secretary, home department, Delhi government is hereby directed to assign to any probation officer the task of submitting the pre- sentencing report,” the court said.

It said the report had to specifically include the twin aspects of whether the convicts could commit further crimes and thus remain a “continuing threat to society” and whether there was any probability of the convicts being reformed and rehabilitated.

While detailing the inquiry procedure to be followed by the probation officer, the court said in the light of the fundamental right against self-incrimination, the convicts must be informed of their rights to be silent and in no circumstance can any adverse inference be drawn if the convicts refuse to give an interview to the probation officer.

“The probation officer shall submit the report within one week from today,” the court said adding, “The principal secretary, home department, will appoint a probation officer immediately on the receipt of the order of this court keeping in view the fact that case is more than 15 years old.”

The court also asked the Secretary of DLSA to depute one legal aid counsel, who would visit the prison for the preparation of affidavits of the convicts within 24 hours of the receipt of the order.

(With inputs from PTI)

Wall Street ends lower, Dow Jones confirms bear market

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Wall Street slid deeper into a bear market on Monday, with the S&P 500 and Dow closing lower as investors fretted that the Federal Reserve’s aggressive campaign against inflation could throw the U.S. economy into a sharp downturn. After two weeks of mostly steady losses on the U.S. stock market, the Dow Jones Industrial Average confirmed it has been in a bear market since early January. The S&P 500 index confirmed in June it was in a bear market, and on Monday it ended the session below its mid-June closing low, extending this year’s overall selloff.

Also Read: Will bears drag Nifty to 16800 or bounceback on cards? 5 things to know before share market opening bell

That added an extra layer of volatility to markets, where investors are worried about a global recession amid decades-high inflation. The CBOE Volatility index, hovered near three-month highs. The Dow is now down 20.5% from its record high close on Jan. 4. According to a widely used definition, ending the session down 20% or more from its record high close confirms the Dow has been in a bear market since hitting its January peak. The S&P 500 has yet to drop below its intra-day low on June 17. It is down about 23% so far in 2022.

In Monday’s session, the Dow Jones Industrial Average fell 1.11% to end at 29,260.81 points, while the S&P 500 lost 1.03% to 3,655.04. The Nasdaq Composite dropped 0.6% to 10,802.92. Ten of 11 S&P 500s sector indexes fell, led by 2.6% drops in real estate and energy. Gains in Amazon and Costco Wholesale Corp helped limit losses in the Nasdaq. Shares of casino operators Wynn Resorts, Las Vegas Sands Corp and Melco Resorts & Entertainment jumped between 11.8% and 25.5% after Macau planned to open to mainland Chinese tour groups in November for the first time in almost three years.

Also Read: Share Market LIVE: Nifty, Sensex likely to open in green amid mixed global cues; Rupee falls to new record low

Volume on U.S. exchanges was 11.9 billion shares, compared with the 11.2 billion average for the full session over the last 20 trading days. Declining issues outnumbered advancing ones on the NYSE by a 5.37-to-1 ratio; on Nasdaq, a 2.31-to-1 ratio favored decliners. The S&P 500 posted no new 52-week highs and 120 new lows; the Nasdaq Composite recorded 16 new highs and 594 new lows.

Buy these two stocks with strong support on charts; Nifty’s medium-term uptrend remains intact

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By Nagaraj Shetti

The sharp up trended movement continued in the market for the third consecutive sessions on Wednesday and Nifty closed the day with hefty gains of around 326 points. A long bull candle was formed on the daily chart and the Nifty has overtaken the key resistance area of the previous opening down/up gap at 15065 levels and the recent swing high of 15176-25th Feb. This is positive indication and the recent negative pattern seems to have nullified and one may expect further upside in the short term.

The medium-term uptrend in Nifty as per the weekly timeframe chart is intact and we observe a formation of a larger degree of higher tops and bottoms over the last many months. The 10 period weekly EMA has been respected on dips so far. According to this action, one may expect further upside towards the new highs soon.

The short term trend of Nifty continues to be up. The negation of recent bearish patterns could indicate more upside in the short term. The next upside levels to be watched around 15430 in the next 2-3 sessions. Immediate support is placed at 15160.

Stock Picks: 

Buy Firstsource Solutions Ltd – (CMP Rs 101.50) 

The attached weekly timeframe chart of FSL indicates an uptrend since last week, which signal a larger consolidation pattern as per smaller timeframe charts. Presently, the stock price is making an attempt to stage the upside breakout of the crucial overhead resistance around Rs 104-105 levels. A sustainable move above this area could mean a sharp upside breakout for the stock price. We observe a larger positive sequence like higher tops and bottoms as per the weekly timeframe chart. Further upmove from here could pull stock prices to new higher top in the near term. The weekly 14 period RSI is now placed above 65, which signal strength of upside momentum.

Buying can be initiated in FSL at CMP (101.50), add more on dips down to Rs 97, wait for the upside target of Rs 112 in the next 3-4 weeks. Place a stoploss of Rs 94.

Buy United Spirits Ltd- (CMP Rs 567.80) 

After showing declines, the stock price (United Spirits Ltd) has shifted into an upside bounce in today’s session. Today’s upmove could be considered as a higher bottom reversal pattern at Rs 531-26th Feb, compared to last bottom of Oct-20. We observe a formation of positive candlestick pattern as per daily/weekly timeframe chart, which signal the comeback of bulls from the lows. Volume has started to rise along with the recent upmove in the stock price. The daily/weekly RSI shows positive indication. 

Buying can be initiated in United Spirits Ltd at CMP (567.80), add more on dips down to Rs 545, wait for the upside target of Rs 620 in the next 3-4 weeks. Place a stoploss of Rs 530.

(Nagaraj Shetti is a Technical Research Analyst at HDFC securities. The views expressed are the author’s own. Please consult your financial advisor before investing.)

Fortis share sale: SC orders forensic audit

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The Supreme Court on Thursday refused to allow Malaysia’s IHH Healthcare Berhad to proceed with its open offer for Fortis Healthcare. It also asked the Delhi High Court to consider the appointment of forensic auditors to examine share sale in Fortis way back in 2018.

The apex court also sentenced Malvinder and Shivinder Singh, the former promoters of Fortis to six months in jail and imposed a fine of Rs 5,000 each on them to be paid within four weeks. In case of any default in payment, they will have to undergo a further jail term of two months. Both the brothers are currently in Tihar jail in a case related to causing wrongful loss worth Rs 2,397 crore in Religare Finvest, an arm of Religare Enterprises.

On its part, Fortis Healthcare said in a statement, “We understand that the proceedings before the Hon’ble Supreme Court have concluded with certain directions and the suo-motu contempt has been disposed off. We will go by the directions of the Hon’ble Supreme Court and will be seeking legal advice regarding our future course of action.”

Also Read: Fortis Healthcare’s share tanks 20 percent after SC extends stay on IHH open offer

Malaysia’s IHH had in July 2018 acquired a 31% stake in Fortis Healthcare for $1.1 billion through the bidding route. It needed to make the mandatory open offer for another 26% stake. However, the apex court had subsequently put it on hold on a contempt plea filed by Japanese drugmaker Daiichi Sankyo against Malvinder and Shivinder Singh, the former promoters of Fortis.

A bench led by Justice UU Lalit, while disposing of various appeals including suo motu contempt, directed the HC to decide all the related issues while considering the execution proceedings. “Everything goes back to the executing court,” Justice Lalit said, reading out the order.

The SC said the Delhi HC will have to order forensic audit to analyse whether transactions entered into by the banks and financial institutions were bona fide. It added that the forensic auditors should also look into the transactions between Fortis Healthcare and RHT and also other related transactions by which Rs 4,000 crore received from IHH were transferred.

Denying any violation or wrongdoing, Fortis Healthcare had argued that the status quo order restraining it from transferring Rs 4,000 crore it received from Malaysian company did not cover any transaction with RHT Health Trust, Singapore, in which Malvinder and Shivinder allegedly had substantial interest till 2017. The hospital chain also said that it was not even a party before the SC then.

The SC had on February 15, 2018, allowed banks and FIs to sell shares of Fortis pledged with them on or before August 11, 2017. However, it had barred sale of shares which were pledged after August 11, 2017.

After the sale of Fortis to IHH materialised in July 2018, Daiichi had moved the court alleging that the Singh brothers had created fresh encumbrances on their shares which was barred by the SC. According to Daiichi, despite the statements and undertakings given by the former promoters to the HC, they had alienated their shareholding from time to time without informing the HC.

Daiichi Sankyo is pursuing the enforcement of Rs 3,500-crore arbitration award against the Singh brothers pronounced by a Singapore tribunal for concealing information when they sold Ranbaxy Laboratories to it for $4.6 billion in 2008.

The Supreme Court had in 2019 held the Singh brothers guilty of contempt for violating its earlier orders that had restrained them from divesting their shares in Fortis Healthcare. However, it had given them a chance to purge themselves of the contempt if each of them deposited Rs 1,170.95 crore.

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

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The Initial Public Offering (IPO) of consumer durables retail chain Electronics Mart India was subscribed 1.69 times on the first day of offer on Tuesday.The IPO received bids for 10,58,09,796 shares against 6,25,00,000 shares on offer, according to the data available with the NSE.

The category for Retail Individual Investors (RIIs) received 1.98 times subscription, while that of Qualified Institutional Buyers (QIBs) got subscribed 1.68 times.The portion for non-institutional investors received 1.04 times subscription.The IPO consists of a fresh issue of equity shares aggregating to Rs 500 crore, with no offer for sale component. Price range for the offer is at Rs 56-59 per share.

ALSO READ Tracxn Technologies IPO to open on Oct 10; sets price band at Rs 75-80/share

Anand Rathi Share and Stock Brokers, IIFL Securities and JM Financial are the managers to the offer. 

Nifty may hold 14,200, Bank Nifty could head towards 34,900 soon; Axis Bank, Mindtree likely to outperform

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By Dharmesh Shah

Nifty Outlook

The week that was…

Technical Outlook

The weekly price action formed a high wave candle, indicating elevated volatility as profit booking emerged after approaching the psychological mark 15000The rejuvenation of upward momentum backed by improving market breadth makes us confident to believe the index would maintain the rhythm of price and time wise maturity of correction and eventually retest life-time high of 15400 in the month of May 2021. In the process, we expect index to hold the key support threshold of 14200. Therefore, any cool off towards 14600-14500 range would attract elevated buying demand which should be capitalised as an incremental buying opportunity in quality large and midcaps amid progression of Q4FY21 result seasonKey point to highlight is that, the current up move (~900 points) is larger in magnitude compared to early March rally of 868 points. The elongated up move signifies rejuvenation of upward momentum that augurs well for next leg of up move. Going forward we expect corrections to be shallower in nature leading to a higher bottom formation.Sectorally, we believe outperformance in midcap to continue. Meanwhile, BFSI, Pharma, Metal and Consumption to remain in focus.On the stock front, Axis Bank, Cipla, Ambuja Cements, Concor, L&T Infotech, SAIL are preferred large caps while in midcaps, Balkrishna Industries, Carborandum Universal, BEL, Mindtree, Radico Khaitan, Bata India, Tata Chemicals, Jindal Stainless are expected to outperformThe Nifty small cap index resolved out of past two months consolidation and clocked a fresh 52 weeks high, highlighting inherent strength. We expect, broader market indices to endure their relative outperformance wherein small cap would witness catch up activity as Nifty midcap index is hovering at its all-time high whereas small cap index is still 11% away from its life highsStructurally, we believe index has formed a higher base at key support threshold of 14200, which we do not expect to breach. Hence dips should be capitalised as buying opportunity as level of 14200 is confluence of a) Lower band of past two months falling channel placed at 14200, (b) 100 days EMA placed at 14200, (c) Last week’s panic low is placed at 14151

NSE NIFTYBank Nifty OutlookBank Nifty in line with our expectation witnessed a strong rebound during previous week. Despite Friday’s profit booking the index closed higher by more than 3% on weekly basisGoing ahead, we expect the index to maintain the Price and Time wise rhythm and gradually head towards 34900 levels in the coming weeks, as it is the 61.8% retracement of the entire decline (37708-30405). Hence, one should accumulate quality banking stocks in the range of 32000-31500 to ride next expected up moveKey point to highlight is that, the recent up move (3880 points) is larger in magnitude compared to late February up move of 2256 points. The elongation of up move signifies rejuvenation of upward momentum that augurs well for next leg of up move. Therefore, any temporary cool off should not be seen as negative instead it should be capitalised to accumulate quality banking stocksThe index 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 moveThe weekly stochastic is seen rebounding from the oversold territory and is placed at a reading of 40 thus validates positive bias in the indexBank Nifty

(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

Tamilnad Mercantile Bank, Tata Steel, Paytm, IDBI Bank, HFCL, GR Infra stocks in focus on weekly F&O expiry

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Bulls may attempt a comeback on Dalal Street on weekly F&O expiry day, suggested early trends on SGX Nifty. Ahead of Thursday’s session, Nifty futures were trading 18 pts or 0.1% up on the Singapore Exchange, signalling a flat to positive start for NSE Nifty 50 and BSE Sensex. “Markets are in strong hands and such a strong recovery amid the global mayhem has further strengthened our belief. We thus reiterate our view to maintain a positive bias however pick the sectors wisely. The IT pack is most vulnerable to the global decline while banking is just inches away from its record high. In short, use dips to buy strength and avoid weak pockets,” said Ajit Mishra, VP – Research, Religare Broking.

Stocks in focus on 15 September, Thursday

Tamilnad Mercantile Bank: Tamilnad Mercantile Bank shares will debut on stock exchanges BSE, NSE today. According to market experts, the stock may get listed flat or at moderate premium over the final issue price of Rs 525 given the lower-than-expected investors’ response to the IPO. The Rs 831.6 crore public issue was entirely a fresh issue by the company, and was subscribed 2.86 times during September 5-7, with retail investors buying shares 6.48 times the allotted quota, non-institutional investors 2.94 times and qualified institutional investors 1.62 times.

Tata Steel: Tata Steel will raise Rs 2,000 crore through the issuance of non-convertible debentures (NCDs) on a private placement basis. The issue is divided into two series. In series one, 5,000 NCDs of face value Rs 10 lakh each will be issued to raise an amount aggregating Rs 500 crore. The date of allotment for the first series is September 20, 2022, and its date of maturity is September 20, 2027. While, under the second series, 15,000 NCDs of face value Rs 10 lakh each will be issued to raise another Rs 1,500 crore. Its allotment date is also September 20, 2022, maturity date is September 20, 2032.

Paytm: The Enforcement Directorate (ED) on Wednesday carried out fresh raids on Paytm and some other agencies in connection with an ongoing money laundering probe linked to alleged financial irregularities by instant app-based loan companies “controlled” by Chinese persons, agencies reported, quoting official sources. They said premises linked to certain payment gateway operators, some companies engaged in these loan app transactions and operators in around three states are being searched. A spokesperson for Paytm said the action was linked to the same matter where the agency had undertaken searches earlier this month.

IDBI Bank: The Centre will soon float an expression of interest (EoI) for strategic disinvestment of IDBI Bank and the transaction may provide a template for privatisation of public sector banks as per the new public sector enterprises policy, department of investment and public asset management (Dipam) secretary Tuhin Kanta Pandey said on Wednesday. IDBI Bank will be the first of its kind transaction where a bank will be privatised in the real sense even though it is even now perceived as a private bank from the regulatory point of view as the government holds 45.48%, below the 51% threshold. State-run LIC holds 49.24% of the lender.

HFCL: The company received advance purchase orders aggregating to Rs 447.81 crore from BSNL and RailTel. The company plans to execute the orders in less than a year. Of the total Rs 447.81 crore, the order from BSNL amounted to Rs 341.26 crore for the supply installation, commissioning, operation, and maintenance of CUPS BNG (Control Plane User Plane Separation Broadband Network Gateway) and associated subscriber Policy Manager & Authentication platform on turnkey basis. The remaining Rs 106.55 crore was for the supply, installation, testing, commissioning, integration with existing infra, operation, and maintenance of IP-based video surveillance system at 180 railway stations under the western region of RailTel for and on behalf of Indian Railways.

Also Read: Paytm share price tanks 45% so far in 2022, but Citi remains bullish on fintech stock, sees this much upside

Balaji Amines: The company that Phase 1 of its 90-acre Greenfield Project (Unit IV) has been completed and the DMC/PC and PG Plant will be ready to commence commercial production by the end of September 2022. This is estimated to result in annual production capacity of 15,000 tons of Di-methyl Carbonate (DMC)/Propylene Carbonate (PC) and 15,000 tons Propylene Glycol (PG). The company has also started construction in Phase 2 of Greenfield Project (Unit IV) for below 2 plants.

G R Infraprojects: Promoters Laxmi Devi Agarwal, Suman Agarwal, Ritu Agarwal, Lalita Agarwal, Sangeeta Agarwal, Kiran Agarwal and Manish Gupta will be selling up to 57,04,652 equity shares or 5.9% stake in the company via offer for sale on September 15-16. In addition, they are also intended to sell additional 8,70,202 shares in an oversubscription option. The floor price has been fixed at Rs 1,260 per share.

Nifty Bank at new high; helps indices recover on volatile day

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The 12-share Nifty Bank index gained 1.3% on Wednesday to end at a record closing high of 41,405. The index is up 13.1% in the last one year.

The gains in banking scrips helped the market in recovering the lost ground, with Sensex rebounding more than 1,200 points from the early lows to settle at 60,346.97 points. The recovery in the benchmarks was led by IndusInd Bank, SBI, Kotak Mahindra Bank, ICICI Bank and HDFC Bank.

Over the past two years, Indian bank stocks have returned to average valuations as the economy improved. Stocks that were not pricing in credit cost normalisation did well and drove the first leg of re-rating. This was helped by strong improvement in India banks’ balance sheets over the past five years despite the Covid crisis. The next leg of re-rating should be driven by loan growth acceleration.

“Strong balance sheets, lessening macro concerns, and improving capacity utilisation set the stage for a capex up-cycle in FY24-25, which we think could drive a second leg of re-rating at Indian banks,” said Morgan Stanley in a recent report.

The foreign brokerage has raised its estimates and price targets for banks, and prefers banks with liquidity/liability franchises that appear best placed to deliver profitable revenue growth.

Also Read: Sensex, Nifty snap 4-day gaining streak, Bank Nifty hits record closing high; check support for F&O expiry day

“Unlike in past cycles, we believe retail deposit competitive intensity will be high, and ability to gain deposit market share will be key. Large banks with higher liquidity and ability to gain deposit market share are best placed to capitalise,” the brokerage said.

According to Deepak Jasani, head of retail research at HDFC Securities, banks are on a good wicket on the back of good credit growth, stronger balance sheets and abating macro-economic concerns.

“If India sovereign bonds get included in global bond indices, then foreigners will come here to buy government securities driving down yields and pushing up prices. Banks are holding a large portfolio of G-secs and they can book mark-to-market (MTM) gains on them.

Credit Suisse expects Indian banks to see strong NIM (net interest margin) improvement over the coming quarters, on the large share of floating-rate loans and an increasing share of loans linked to external benchmarks, which have increased 140-190 bps over the past six months, even as retail deposit costs have increased by 40-90 bps.

“We increase our NIM estimates for FY23E by 20-30 bps for the larger banks. While a large part of the increase in NIMs is driven by the benefit of rising rates and shift to external benchmarks, banks are also benefiting from the mix change, as loan growth has been led by retail and SME segments versus lower-yielding corporate loans. Also, within retail, unsecured loans have seen strong growth trends,” the brokerage said.

Net interest margin is a measure of the difference between the interest income generated by banks and the amount of interest paid out to their lenders, relative to the amount of their assets.

The Nifty IT index, meanwhile, continued to remain under pressure and corrected another 3.4% on Wednesday. With geopolitical uncertainties, and recession fear, Indian IT stocks have corrected by 20-40% in H1CY22. Despite correction, companies are still trading at a premium to long-term average multiple, according to experts.

“Spending on IT may take a back seat in developed economies particularly in Europe where the current energy crisis and inflation may tip several economies into recession,” said Jasani.