Month: October 2023

Rupee to depreciate further on strong dollar, recession fears, USDINR may head towards 83 in coming sessions

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The Indian Rupee is expected to depreciate further amid strong dollar, risk-off sentiments in markets. USDINR pair is expected to head towards 83 in coming sessions. In the previous session, the rupee ended at a fresh record low of 81.94 against the US dollar amid a spike in US bond yields. The domestic currency has already depreciated around 9% against the greenback so far in the calendar year 2022. The US Dollar Index, which measures the strength of the American currency against a basket of other major currencies, hit a new multi-year high of 114.78 after a White House official ruled out a currency agreement to weaken the greenback. The yield on the US 10-year Treasury touched 4% for the first time since 2010.

Dilip Parmar, Research Analyst, HDFC Securities

Also Read: Share Market LIVE: Nifty, Sensex likely to open in green amid positive cues; Rupee at new low, nears 82 mark

Anuj Choudhary – Research Analyst, Sharekhan by BNP Paribas

“Indian rupee depreciated by 0.48% and touched a fresh all-time low of Rs. 81.9525 on Wednesday on weak domestic equity markets and a strong US Dollar. The dollar index rose to a fresh 2-decade high of 114.764 on risk aversion in global markets. We expect Rupee to trade on a negative note as risk-off sentiment in global markets. Global risk sentiments deteriorated on rising worries over global economic recession and inflation. However, weak tone in crude oil prices may prevent sharp fall in Rupee. Investors may remain cautious ahead of RBI’s monetary policy meeting. RBI is expected to rise interest rates by 50 bps. Dollar may also take cues from goods trade balance and pending home sales data from the US. USDINR spot price is expected to trade in a range of Rs 81.20 to Rs 83 in next couple of sessions.”

Sugandha Sachdeva, Vice President – Commodity and Currency Research, Religare Broking Ltd.

“The Indian rupee nose-dived to a fresh record low of 81.95 mark amid the risk-averse mood in the markets, the slide witnessed in the domestic equities, and the advance in the greenback close to the crucial 115 mark, a more than 20-year high. The US Fed has indicated that borrowing costs will keep rising and stay elevated for a long time until inflation looks well under control, which has provided a huge upthrust to the dollar index. Besides, the US central bank raising rates at a faster clip as compared to the other major central banks is propelling the mighty dollar on an upwards incline.”

“The greenback has surged around 19.50 percent for the year. Most of the Asian currencies, including the local unit, are reeling under pressure amid the monetary tightening campaign in the West and concerns about a global economic slowdown. Limited intervention by the RBI amid declining forex reserves is also leading to the current bout of selling spree witnessed in the Indian rupee. However, softening crude prices and strong underlying fundamentals of the domestic economy shall underpin the rupee-dollar exchange rate around the 82 to the dollar mark. All eyes are now on the RBI monetary policy outcome for further cues.”

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

“Rupee fell to fresh all-time lows yesterday but traded in a narrow range as market participants remained jittery following central bank action in the last few sessions and as UK government fiscal plans continued to roil markets. The BoE said it received £2.587 billion worth of offers in its first bond buyback operation aimed at stabilizing the market, and had accepted only £1.025 billion worth. The central bank had committed to buying as many long-dated government bonds, know as gilts, as needed between 28th September and Oct. 14.”

Also Read: Bulls to stage a comeback or bears to drag Nifty below 16700? 5 things to know before market opening bell

“The relief for sterling may be temporary as the UK still has to deal with macro trends such as high inflation. . On the domestic front, focus will be on the RBI policy statement expectation is that the central bank could continue to raise rates and maintain a hawkish stance. What the central bank stance is going ahead on rates, growth and inflation will provide cues to the rupee. Today, focus will be on the final GDP 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.”

(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.)

Jubilant Foodworks Rating: Buy; Cheesy rewards to drive sales

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By I-Sec Research

We upgrade JUBI to BUY. Drivers of our optimism are (i) loyalty program potentially driving higher order frequency (~15% of Domino’s customers account for ~56% of revenues – a classic marketing case of heavy-user dependency – which is good, in our view), (ii) continued network expansion ahead of competition, (iii) likely positive surprise in Popeye’s execution and ramp-up,

We believe JUBI remains best positioned to realise industry tailwinds driven by (i) already existing digital infrastructure and delivery capability & relationships and (ii) lower competition thanks to industry consolidation (~25% of restaurants have closed as per National Restaurant Association of India).

We will monitor announcement of a refreshed strategy, if any, under new CEO. Sameer Khetarpal. Upgrade to BUY; target price at Rs 750.

Also read: Ex-RBI Governor bats for maintaining hawkish stance on rates

* Cheesy Rewards (loyalty program) likely to drive higher order frequency and retention of customers: JUBI has launched a simple milestone-based loyalty programme where customers get a free pizza after every 6th eligible orders. We believe, this loyalty programme is likely to drive higher order frequency and help JUBI retain its customers. ~56% of revenues for Domino’s comes from ~15% of its customers, indicating it’s a heavy user dependent business. Loyalty programme will likely help JUBI retain them when competition is rising among organised players and drive higher order frequency.

Secondly, loyalty programme is also likely to drive higher traffic for Domino’s app as cheesy rewards can be received across platforms but can only be redeemed through the app.

n Absolute store expansion of Domino’s continues to be higher than Pizza Hut: JUBI has indicated plans to open 250 Domino’s stores in FY23, while Sapphire Foods and Devyani have also been aggressively opening Pizza Hut Stores. JUBI has gone through the learning curve of expanding aggressively JUBI’s own delivery capability (either through own app or food aggregators) allowing it to own customer data.

Valuations and risks: Our earnings estimates are largely unchanged, modelling revenue/ Ebitda/PAT CAGR of 21/24/29(%) over FY22-24E. Upgrade to BUY with DCF-based revised TP of Rs 750.

Petrol, Diesel Price Today, 25 Sep 2022: Fuel cost steady; check rates in Delhi, Mumbai, Noida, other cities

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Petrol and Diesel Rate Today in Delhi, Bangalore, Chennai, Mumbai, Lucknow: The price of petrol and diesel has been kept steady on 25 September 2022 (Sunday), 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. Since then, Maharashtra is the only state to have cut rates. The Maharashtra government had announced a cut in value-added tax (VAT) on petrol by Rs 5 a litre and by Rs 3 a litre for diesel in July.

Also read:Gautam Adani beats Mukesh Ambani to become India’s richest, adds Rs 1600 crore to fortune every day in 1 year

Petrol, diesel prices in Chennai, Kolkata, Bengaluru, Lucknow, Noida, Gurugram

Mumbai: Petrol price: Rs 106.31 per litre, Diesel price: 94.27 per litre

Delhi: Petrol price: Rs 96.72 per litre, Diesel price: Rs 89.62 per litre

Chennai: Petrol price: Rs 102.63 per litre, Diesel price: Rs 94.24 per litre

Kolkata: Petrol price: Rs 106.03 per litre, Diesel price: Rs 92.76 per litre

Bengaluru: Petrol: Rs 101.94 per litre, Diesel: Rs 87.89 per litre

Lucknow: Petrol: Rs 96.57 per litre, Diesel: Rs 89.76 per litre

Noida: Petrol: Rs 96.79 per litre, Diesel: Rs 89.96 per litre

Gurugram: Petrol: Rs 97.18 per litre, Diesel: Rs 90.05 per litre

Chandigarh: Petrol: Rs 96.20 per litre, Diesel: Rs 84.26 per litre

Also read:New bull market or correction on cards? Here’s where investors can make money now | Aditya Birla MF interview

Public sector OMCs includingBharat Petroleum CorporationLtd (BPCL), Indian Oil Corporation Ltd (IOCL) and Hindustan Petroleum Corporation Ltd (HPCL) revise the fuel prices daily in line with international benchmark prices and foreign exchange rates. Any changes in petrol and diesel prices are implemented from 6 am every day. Retail petrol and diesel prices differ from state to state because of local taxes like VAT or freight charges.

Rupee hits lifetime low, may fall to 81 on strong dollar, risk aversion in markets after Fed jumbo rate hike

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The Indian Rupee hit a lifetime low level of 80.43 on Thursday after US Fed’s decision to hike interest rate by 75 basis points yet again. The domestic currency opened at a record low of 80.2850 per US dollar, down from the previous close of 79.97. The Fed on Wednesday raised rates by 75 bps, in line with expectations. More importantly, it hinted that more hikes were coming and that rates would stay elevated until 2024. The 10-year bond yield rose sharply by 5 bps to 7.289% from its Wednesday’s close of 7.234%. Bond yield and currency prices move in opposite directions.

Rupee may weaken to 81 capital markets witness outflows

Also Read: Nifty must hold 17667 for upmove towards 18000; buy these stocks to pocket short-term gains

“The RBI’s policy is due on 30th September which must be monitored closely. Moreover, amid an escalation of geo-political tensions between Russia & Ukraine, energy prices may stay elevated and USDINR is likely to appreciate further. As per technical charts, the dollar index has the potential to touch 112.50. We don’t deny the possibility of rupee weakening to 81 going forward if we experience outflows from the Indian capital markets,” he added.

“Today as expected rupee is trading at life time level of 80.43, while Eur against dollar is trading at 20-year low levels of 0.98 and GBP against dollar is also trading at 29-year low level at 1.12 levels. “We are expecting that due to the hawkish statement of Fed, major currencies against the US dollar may depreciate. Now, rupee may further depreciate and test 81 to 82 levels very soon,” Anuj Gupta, Vice President — Research at IIFL Securities.

Downtrend in rupee to continue

“The rupee chocked a new life low after the Federal Reserve’s hawkish policy outlook boosted the haven appeal. We believe the downtrend in the rupee could continue but at a slower pace amid lower commodity prices, foreign fund inflows and RBI intervention. Spot USDINR is now having resistance in the range of 81.25 to 81.40 while the support has been moved to 79.70,” said Dilip Parmar, Research Analyst, HDFC Securities.

Also Read: Petrol, Diesel Price Today, 22 Sep 2022: Fuel cost steady; check rates in Delhi, Mumbai, Noida, other cities

The Reserve Bank of India (RBI) has been selling dollars in order to moderate the depreciation in rupee. A Reuters report, quoting a government official, said the Indian government is not averse to a weaker rupee in line with global market fundamentals. According to CR Forex Advisors, RBI is unlikely to use its forex reserves to defend currency as it earlier did amid a severe liquidity crunch in the market. “Clearly there is pressure on RBI and will be interesting to see how RBI will be able to defend rupee which is above 80.00 levels. If RBI lets rupee on its free course in line with the global peers, 80.50 to 81.00 shall be shortly seen”, CR Forex said in its note.

Market HIGHLIGHTS: Sensex ends 232 pts down, wipes off mild gains, Nifty at 18004 amid bulls & bears tussle

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Share Market News Today | Sensex, Nifty, Share Prices HIGHLIGHTS: BSE Sensex and NSE Nifty 50 ended marginally lower on Wednesday despite a global market rout. BSE Sensex settled 224 points or 0.4 per cent down at 60,347, while NSE Nifty 50 fell 66 points or 0.4 per cent to finish trade at 18004. India VIX, the volatility index, surged 4.6 per cent to 18.28 levels. Stocks of IndusInd Bank, NTPC, Power Grid Corporation of India, State Bank of India (SBI), Kotak Mahindra Bank, Bajaj Finserv, Tata Steel, and HDFC Bank among others were top index gainers. On the flip side, Infosys, Tata Consultancy Services (TCS), Tech Mahindra, HCL Tech were among top index laggards.

Live Updates

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

15:35 (IST) 14 Sep 2022 Sensex, Nifty end nearly 0.5% down

BSE Sensex ended 224 points down at 60,347, while Nifty 50 settled at 18003, wiping off mild gains

15:06 (IST) 14 Sep 2022 Rupee may fall below 80 against US Dollar if 79.60 breached; INR in sync with other EM peers

USD INR appeared to have consolidated at 79.30 and indicated lower limit support at 78.70 levels. Taking cue from the latest inflation fears in the U.S and dollar index rebounding, in the short term USDINR seeks a strong resistance at 79.60 with support at 79.30. Breaking this resistance, Rupee could cross the 80 mark and depreciate further before higher resistances at 80.30 to 81.00 is seen in the medium term. So far, the depreciating trend in the Indian rupee is a tad out of sync with other emerging economies’ currencies. Read full story

15:05 (IST) 14 Sep 2022 Why ArcelorMittal, other metal giants are shutting factories amid Europe energy crisis; here’s what lies ahead

The world’s second-largest steel producer ArcelorMittal recently announced the closure of a factory in Europe as a result of rising gas and energy prices in the region. By the end of September, the company will shut down one of the two existing blast furnaces at its steelworks plant in Bremen of Germany due to outrageously high surge in energy prices, weak market demand and a negative economic outlook. ArcelorMittal said that high energy costs and weaker demand make production uneconomic. Read full story

14:28 (IST) 14 Sep 2022 Bank Nifty nears all-time of 41830

Bank Nifty was ruling nearly 2 per cent up at 41,611, just shy of all-time high

14:14 (IST) 14 Sep 2022 Sensex, Nifty pare losses, trade flat in afternoon deals

BSE Sensex erased losses to trade flat at 60,540, while NSE Nifty 50 was back above 18,060

14:13 (IST) 14 Sep 2022 WPI inflation eases for 3rd straight month

Wholesale inflation eased for a third straight month in August. While there was an increase in food inflation, it was offset by easing of other commodity prices including crude oil. WPI has lower weight of food components vis a vis CPI and that would explain the inching down of WPI inflation, even while CPI inflation increased in the period under review. While easing wholesale inflation is a positive development, it remains to be seen if firms will pass on the benefit to final consumers. If not, then bringing retail inflation within the target range could take even longer. If the easing of global commodity prices sustains, we could expect wholesale inflation easing to single digit by October. We expect WPI inflation to fall below CPI inflation by the end of this fiscal. Rajani Sinha, Chief Economist, CareEdge

14:02 (IST) 14 Sep 2022 Rate hike in interest rate likely to tame inflation

India’s Wholesale price index (WPI) has eased to 12.41 percent in August, compared to the spike we had seen July at 13.93 per cent. The food price segment continues to remain high at 12.37 per cent in August which can be attributed majorly to rise in vegetable prices. Thus, even though there is uptick in the prices of food items this ease WPI is majorly due to softening in the prices of manufacturing items. From August 2021, this is the 17th consecutive month of double-digit wholesale price inflation (WPI). However, to frame the monetary policy, RBI mainly looks at retail inflation. We expect that there would be hike in interest rate in order to tame inflation. Raghvendra Nath, Managing Director – Ladderup Wealth Management

13:52 (IST) 14 Sep 2022 What to expect from Tamilnad Mercantile listing tomorrow?

We expect a flat or a negative listing based on the current GMP or Rs.12 i.e. 2.5% over its issue price and less than stellar subscription numbers. We had assigned avoid rating because of the precarious legal challenges and the lack of complete clarity on the management’s long-term performance despite the improvement in fundamentals in the last three years. Aayush Agrawal, Senior Research Analyst, Swastika Investmart

13:08 (IST) 14 Sep 2022 PVR, INOX Leisure share prices surge even as Sensex, Nifty fall; should you buy, sell, or hold?

PVR and INOX Leisure share prices were trading firm, defying the global markets on Wednesday. Shares of multiplex chains rose a day after the Competition Commission of India (CCI) rejected a complaint against the proposed merger of PVR and INOX Leisure, saying apprehension of likelihood of anti-competitive practices by an entity cannot be a subject of probe. AR Ramachandran, Co-founder & Trainer, Tips2Trades, told FinancialExpress.com that after a recent fall due to rumours of a big ticket movie failing, not surprisingly multiplex chains PVR and Inox Leisure stock prices have started the recovery including a strong uptrend today. Read full story

13:05 (IST) 14 Sep 2022 India’s WPI inflation eases to 12.41% in Aug, wholesale price remains in double digits for 17-months straight

India’s WPI inflation eased to 12.41 per cent in August, against 13.93 per cent in July, government data showed on Wednesday. Despite the cool-off in August, WPI continued to remain in the double digits for the 17th straight month beginning April 2021. “Inflation in August, 2022 is primarily contributed by rise in prices of mineral oils, food articles, crude petroleum & natural gas, basic metals, chemicals & chemical products, electricity, food products etc. as compared to the corresponding month of the previous year,” said the Ministry of Commerce and Industry in a statement. Read full story

12:11 (IST) 14 Sep 2022 WPI in August at 12.4%

August WPI inflation at 12.4% sequentially. Food inflation came in at 9.9%, and WPI came in double digits for 17th straight month.

11:53 (IST) 14 Sep 2022 Nifty has strong technical support zone around 17400-17500

Markets have witnessed a spectacular rally over the past 3 months, with the benchmark index Nifty, gaining almost 20% despite global & domestic inflationary trends, and relentless rate hikes by central banks, across the world. At present levels, its best advised to adopt a cautious approach, and one could look at converting notional profits into actual profits, as in coming weeks and months, we are likely to witness enhanced volatility. Given the current levels, Nifty has strong technical support zone around 17400-17500, whereas key zone of resistance is seen around 18350-18400.

11:22 (IST) 14 Sep 2022 Bank Nifty trades firm despite negative market momentum

Bank Nifty index jumped 0.35 per cent to trade at 41,016.55 levels, shrugging off negative market momentum on Wednesday

11:03 (IST) 14 Sep 2022 Gold Price Today, 14 Sep 2022: MCX gold nears 49800 support, watch out for these key levels; UK inflation eyed

Gold prices were trading with a negative bias in India on Wednesday. On Multi Commodity Exchange, gold October futures were trading Rs 25 down at Rs 50,113 per 10 grams, as against Rs 50,138. Silver December futures were down Rs 351 or 0.6 per cent to Rs 56,460 per kg. Globally, yellow metal prices edged lower after hotter-than-expected U.S. inflation data boosted the dollar and fuelled expectations that the Federal Reserve will continue on an aggressive policy tightening path, according to Reuters. Spot gold fell 0.2% to $1,698.14 per ounce, Prices fell 1.3% on Tuesday, its biggest one-day percentage decline since July 14. U.S. gold futures were down 0.4% at $1,710. Read full story

10:48 (IST) 14 Sep 2022 Another jumbo rate hike of 75bps in next FOMC meeting likely

The US inflation in August rose higher at 8.3% y-o-y against expectation of 8.1%. The CPI index increased 0.1% month on month while the economists were expecting it to decline by 0.1% over the month due to sharp correction in energy prices. However, decline in energy prices was offset by higher cost of food (+0.8% m/m) and shelter costs (+0.7% m/m). High costs of food, housing, transportation and other services reiterate the strong consumer demand and elevated service sector price pressures. With inflation being ‘stickier’ than expected, it is highly likely that the Fed will go for another jumbo rate hike of 75bps in its next FOMC meeting on 21st September. Ritika Chhabra- Economist and Quant Analyst, Prabhudas Lilladher

10:47 (IST) 14 Sep 2022

The US inflation in August rose higher at 8.3% y-o-y against expectation of 8.1%. The CPI index increased 0.1% month on month while the economists were expecting it to decline by 0.1% over the month due to sharp correction in energy prices. However, decline in energy prices was offset by higher cost of food (+0.8% m/m) and shelter costs (+0.7% m/m). High costs of food, housing, transportation and other services reiterate the strong consumer demand and elevated service sector price pressures. With inflation being ‘stickier’ than expected, it is highly likely that the Fed will go for another jumbo rate hike of 75bps in its next FOMC meeting on 21st September. Ritika Chhabra- Economist and Quant Analyst, Prabhudas Lilladher

10:34 (IST) 14 Sep 2022 Buy Hindalco, Lupin, IndusInd Bank to pocket gains; short-term market texture looks bullish; use dips to buy

NSE Nifty 50 index successfully cleared the short-term resistance of 18000/60350 and succeeded to close above the same on Tuesday, which is broadly positive. In addition, on daily and intraday charts, it is holding uptrend continuation formation, which supports further uptrend from the current levels. We are of the view that, the short term texture of the market is on the bullish side but due to temporary overbought conditions we could witness range bound activity. Hence buying on intraday corrections and selling on rallies would be the ideal strategy for the short-term trades. Read full story

10:17 (IST) 14 Sep 2022 Sensex and Nifty may touch 61500 and 18600 till Diwali

Sensex and Nifty are down taking cues from the losses in the global markets due to a slight higher US CPI exceeding the expectations and inducing the fear of recession. However, the fall in the Indian benchmark indices seems temporary sustainable to one or two days. In current scenario, Nifty and Sensex may test the levels of 17600 and 59200 respectively. The long term outlook of the Nifty and Sensex is positive. The Foreign investors have continued to be net buyers in the Indian market, which is a stark change from a couple of months back. The cooling off of the crude oil prices due to the Ukraine reclaiming it’s boundaries will also lower the imports bill. All these factors will combined to give a positive impact on the benchmark indices in long run. Sensex and Nifty may touch the levels of 61500 and 18600 respectively till Diwali festival. Ravi Singh, VP & Head of Research, Share India Securities

10:16 (IST) 14 Sep 2022 Nifty support at 17770 intact

Consistently high inflation despite a decent fall in energy prices indicate a rising interest rate scenario which could have a massive impact on both corporate and investor earnings as well. Technically, 17770 remains strong support for Nifty. A daily close below this level could lead to 17480 in the coming days. Resistance will remain at 18066. AR Ramachandran, Co-founder & Trainer, Tips2Trades

10:03 (IST) 14 Sep 2022 Petrol, diesel price today, 14 Sep 2022: Fuel cost steady; Check fuel rates in Delhi, Mumbai, other cities

The price of petrol and diesel has been kept steady on 14 September 2022 (Wednesday), keeping costs steady for more than three months now. Petrol and diesel in Delhi is priced 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

09:48 (IST) 14 Sep 2022 What do Nifty technical charts say?

On the technical front, Nifty formed yet another bullish candle on the daily chart and surpassed the much-awaited hurdle of 18000 mark to continue with its winning streak. However, momentum oscillators has now reached an overbought region and some amount of cool-off seems eminent. However present price structure indicates of continuance of positive bias and our domestic Index is likely to head towards 18,300 in near term as it is the swing high of January 2022. Nifty also registered a bullish golden crossover in August (50-DEMA crossing above 200-DEMA) implying major shift of momentum from a medium-term perspective. Nifty also has given a conclusive breakout from eight month’s falling channel signalling end of corrective phase and breakout is well supported by sequential improvement in market breadth. Tirthankar Das, Technical & Derivative Analyst, Retail, Ashika Stock Broking

09:26 (IST) 14 Sep 2022 Infosys, Tech Mahindra, Reliance Industries top drags

Infosys, Tech Mahindra, Tata Consultancy Services, TCS, HCL Tech, Wipro, L&T, HDFC Bank, Reliance were among top Sensex draggers

09:24 (IST) 14 Sep 2022 NTPC, Asian Paints, Nestle stocks gain

Stocks of NTPC, Asian Paints, Nestle India, Dr Reddy’s, and Hindustan Unilever were among top index gainers

09:23 (IST) 14 Sep 2022 Sensex, Nifty fall more than 1% at open

BSE Sensex tanked 1.2 per cent or 709 points to 59,868, while NSE Nifty 50 fell 1.13 per cent to 17,865

09:05 (IST) 14 Sep 2022 MCX gold support at Rs 49,940-49810

Gold and silver prices fell sharply on Tuesday on the back of a strong U.S. inflation data that also sent the dollar index and bond yields higher. After the U.S. CPI data, the dollar index took a U-turn and gained more than 1% and recovered from one month lows. The dollar index crossed 109.50 marks and pushed precious metals lower. The U.S. 10-year bond yield also surged and at the time of writing this report it was trading above 3.44%. After the U.S. CPI data, the fallout in the financial markets was profound running across almost every asset class. In INR terms gold has support at Rs 49,940-49810, while resistance is at Rs50,380–50,540. Silver has support at Rs56,050-55,640, while resistance is at Rs57,180–57,610. Rahul Kalantri, VP Commodities, Mehta Equities

08:38 (IST) 14 Sep 2022 Stocks to watch today

Vedanta: Vedanta Group, which has formed a joint venture with Taiwan’s Foxconn for setting up a semiconductor manufacturing unit in India, will invest Rs 1.54 trillion in the project and expects to break-even in five years.

JSW Steel: The company has signed a memorandum of understanding (MoU) with Germany-based SMS group to explore multiple cutting-edge solutions and research & development (R&D) projects, to reduce carbon emission in its iron and steelmaking operations in India.

Infosys: Infosys has shot off a missive to its employees, asserting that dual employment or ‘moonlighting’ is not permitted, and has warned that any violation of contract clauses will trigger disciplinary action “which could even lead to termination of employment”.

Read full story

08:35 (IST) 14 Sep 2022 Will bears drag Nifty below 18000 or bulls continue momentum? 5 things to know before market opening bell

Indian equity markets are likely to open lower on Wednesday, hinted SGX Nifty. Nifty futures traded 298 points, or 1.65% lower at 17,794 on the Singapore Exchange, signaling that BSE Sensex, NSE Nifty 50 were headed for a gap-down start. “The current market buoyancy globally, including in India, is based on the expectation that inflation has peaked along with softening crude prices. We believe that, to an extent, the expectation of inflation peaking is right, but one will have to keep an eye on energy prices in Europe & US with the onset of winter, which can re-ignite the inflation fire. The current momentum in the equity markets can sustain, but we would advise investors to raise some cash at the current levels, which can be deployed if the markets correct on either rate hikes or energy prices moving up again,” said Naveen Kulkarni, Chief Investment Officer, Axis Securities PMS.

Read full story

08:20 (IST) 14 Sep 2022 U.S. 2-year, 10-year Treasury yields shoot higher

U.S. Treasury rocketed higher after high inflation numbers for August. The 2-year Treasury yield surged above 3.79%, highest since 2007. Yield on the benchmark 10-year Treasury note surged 6 basis points, trading at 3.42%.

08:19 (IST) 14 Sep 2022 U.S. inflation painfully high in Aug as well

The US inflation in August rose higher at 8.3% year-on-year against the expectation of 8.1%. The Consumer Price Index gained 0.1% last month versus expectations for a 0.1% decline and after being unchanged in July, the Labor Department said on Tuesday. Food prices rose 0.8%, with the cost of food consumed at home increasing 0.7%. Food prices surged 11.4% over the last year, the largest 12-month increase since May 1979.

08:17 (IST) 14 Sep 2022 Crude Oil prices inch higher as OPEC sticks to demand forecast

Oil prices were slightly higher in early trade on Wednesday as OPEC stuck to forecasts for robust global fuel demand growth. Brent crude futures rose 3 cents to $93.20 a barrel by 0116 GMT, after settling 0.9% lower on Tuesday. U.S. West Texas Intermediate crude was at $87.41 a barrel, up 10 cents, or 0.1%.

08:10 (IST) 14 Sep 2022 Dollar surges after sticky inflation report

US inflation turned out to be wider and hotter than expected, confirming markets for another 75-point rate hike next week. Published data showed a 0.1% increase in prices for August, against expectations of a decline of the same magnitude. Annual inflation slowed from 8.5% to 8.3% but was better than the 8.1% forecasted. Most of all, the markets were spooked by the surge in the core index. It added 0.6% over the month, to an annual rate of 6.3%, signalling inflation is spreading beyond energy and food.

~Alex Kuptsikevich, Senior Market Analyst, FxPro

08:01 (IST) 14 Sep 2022 With inflation being ‘stickier’ than expected, Fed likely to go for another jumbo rate hike

“The US inflation in August rose higher at 8.3% y-o-y against expectation of 8.1%. The CPI index increased 0.1% month on month while the economists were expecting it to decline by 0.1% over the month due to sharp correction in energy prices. However, decline in energy prices was offset by higher cost of food (+0.8% m/m) and shelter costs (+0.7% m/m). High costs of food, housing, transportation and other services reiterate the strong consumer demand and elevated service sector price pressures. With inflation being ‘stickier’ than expected, it is highly likely that the Fed will go for another jumbo rate hike of 75bps in its next FOMC meeting on 21st September,”

~Ritika Chhabra- Economist and Quant Analyst, Prabhudas Lilladher

07:49 (IST) 14 Sep 2022 Asian markets fall tracking US stocks

Asian shares tumbled, the dollar held firm and the US yield curve was deeply inverted on Wednesday, as August US inflation report dashed hopes for a peak in inflation and fuelled bets that interest rates may have to be raised higher and for longer. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.3% in early Asia trade on Wednesday. Resources-heavy Australia plunged 2.8%, while Japan’s Nikkei tumbled 2.7%.

07:49 (IST) 14 Sep 2022 US markets plunge as red hot inflation data spikes large rate hike fears

A broad sell-off sent US stocks reeling on Tuesday after a hotter-than-expected inflation report dashed hopes that the US Federal Reserve may scale back its policy tightening in the coming months. All three major US stock indices veered sharply lower, snapping four-day winning streaks and notching their biggest one-day percentage drops since June 2020 in throes of the Covid-19 pandemic.

The Dow Jones Industrial Average fell 1,276.37 points, or 3.94 percent, to 31,104.97, the S&P 500 lost 177.72 points, or 4.32 percent, to 3,932.69 and the Nasdaq Composite dropped 632.84 points, or 5.16 percent, to 11,633.57.

07:47 (IST) 14 Sep 2022 SGX Nifty hints at a negative start for Indian markets

Nifty futures were trading 298 points, or 1.65% lower at 17,794 on the Singapore Exchange, signaling that Dalal Street was headed for a gap-down start.

Ola Electric raises over Rs 3,000 crore from Temasek, SBI and others

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Ola Electric, one of India’s largest electric vehicle maker has raised around Rs 3,200 crore funding as a part of its equity and debt round raised from Temasek-led marquee investors and project debt from State Bank of India respectively.

The funds will be utilised towards expansion of Ola’s EV business and setting up India’s first lithium-ion cell manufacturing facility in Krishnagiri, Tamil Nadu. Ola Electric says it aims to accelerate its growth by ramping up its two-wheeler manufacturing capacity, launching electric motorcycles followed by electric cars and fast-tracking the construction of Gigafactory.

The company was selected by the government as the only Indian EV company under its ambitious cell PLI scheme, receiving a maximum capacity of 20 GWh. The ACC PLI scheme will be instrumental in making India self-reliant and localising the most critical aspects of the EV value chain.

Ola Electric is setting up a lithium-ion cell manufacturing facility near Ola’s Futurefactory in Krishnagiri, Tamil Nadu. This is a first of its kind lithium-ion cell manufacturing facility in India with an initial capacity of 5 GWh in phase I which will be further scaled up in phases to 100 GWh at full capacity.

The EV maker which had showcased its motorcycle line-up, which it says will be launched by the end of next year.

Petrol, Diesel Price Today, 19 Sep 2022: Fuel cost unchanged; check rates in Delhi, Mumbai, other cities

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Petrol and Diesel Rate Today in Delhi, Bangalore, Chennai, Mumbai, Lucknow: The price of petrol and diesel has been kept steady on 19 September 2022 (Monday), keeping costs steady for more than three months now. Petrol and diesel in Delhi are priced 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. Since then, Maharashtra is the only state to have cut rates. The Maharashtra government had announced a cut in value-added tax (VAT) on petrol by Rs 5 a litre and by Rs 3 a litre for diesel in July.

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Petrol, diesel prices in Chennai, Kolkata, Bengaluru, Lucknow, Noida, Gurugram

Mumbai: Petrol price: Rs 106.31 per litre, Diesel price: 94.27 per litre

Delhi: Petrol price: Rs 96.72 per litre, Diesel price: Rs 89.62 per litre

Chennai: Petrol price: Rs 102.63 per litre, Diesel price: Rs 94.24 per litre

Kolkata: Petrol price: Rs 106.03 per litre, Diesel price: Rs 92.76 per litre

Bengaluru: Petrol: Rs 101.94 per litre, Diesel: Rs 87.89 per litre

Lucknow: Petrol: Rs 96.57 per litre, Diesel: Rs 89.76 per litre

Noida: Petrol: Rs 96.79 per litre, Diesel: Rs 89.96 per litre

Gurugram: Petrol: Rs 97.18 per litre, Diesel: Rs 90.05 per litre

Chandigarh: Petrol: Rs 96.20 per litre, Diesel: Rs 84.26 per litre

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Public sector OMCs including Bharat Petroleum Corporation Ltd (BPCL), Indian Oil Corporation Ltd (IOCL) and Hindustan Petroleum Corporation Ltd (HPCL) revise the fuel prices daily in line with international benchmark prices and foreign exchange rates. Any changes in petrol and diesel prices are implemented from 6 am every day. Retail petrol and diesel prices differ from state to state because of local taxes like VAT or freight charges.

74.1 million income tax returns filed so far in AY 2023-24

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A total of 74.1 million income tax returns (ITRs) have been filed for assessment year (AY) 2023-24 till date, which includes 5.3 million first time filers, the Central Board of Direct Taxes (CBDT) said in a release on Thursday.

“This is an indication of the widening of tax base subsequent to various reform measures put in place by the department. In fact, while the overall number of returns of individual taxpayers has shown an increase over the years, there is also an increase in number of returns filed by individual taxpayers across various ranges of gross total income,” CBDT said in a release.

The proportionate contribution of gross total income of top 1% individual taxpayers vis-à-vis all individual taxpayers has decreased from 15.9% in AY 2013-14 to 14.6% in AY 2021-22, the data showed. While, the contribution of gross total income of bottom 25% individual taxpayers as compared to all individual taxpayers has increased from 8.3% in AY 2013-14 to 8.4% in AY 2021-22.

The proportion of gross total income of middle 74% group of individual taxpayers increased from 75.8% to 77% in the above period and the average gross total income for individual taxpayers increased from about `450,000 in AY 2013-14 to about Rs 700,000 lakh in AY 2021-22 representing an increase of 56%, the data showed.

Net direct tax collections rose from Rs 6.38 trillion in FY14 to `16.61 trillion in FY23.“This has been made possible due to the taxpayer friendly and taxpayer oriented progressive policies adopted by the government,” the release said.

Sebi may widen disclosures on IPO pricing

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The Securities and Exchange Board of India (Sebi) may mandate more disclosures with regard to pricing of public share sales in its upcoming board meeting on September 30. The regulator may ask companies to divulge the rationale for the difference in pricing of shares sold to private equity investors and that for the initial public offering (IPO).

“If the issue price in an IPO is high, and a stock slips on listing, investors do get prejudiced. Hence, Sebi is thinking of seeking disclosures on how the issue price has been arrived at, including looking at past transactions in the shares of such companies,” said Saurabh Tiwari, partner, DSK Legal.

“The regulator needs to be smart about mandating any disclosures on new-age IPOs because every startup is unique and different. Valuation metrics for fintechs, for example, may be different from that for e-commerce firms,” a senior industry official said.

According to him, the regulator may ask companies to disclose metrics that formed a part of previous private funding rounds. “Whatever metrics were used at the time of investor presentations during the private funding rounds can be used for making the relevant disclosures at the time of IPO,” he said.

Sebi chief Madhabi Puri Buch had recently batted for a disclosure-based regime and said the regulator was not in favour of dictating the pricing of initial share sales of new-age technology companies.

“At what price you choose to do your IPO is your business. We have no business to suggest otherwise. The days of CCI (Controller of Capital Issues) are long gone. Companies are free to price the issues at whatever price is considered appropriate,” Buch had said in her maiden public address as Sebi chief at the annual capital markets summit organised by industry association Ficci in Mumbai last week.

Buch, however, added that the company had to make the required disclosures on the rationale for the pricing, especially between a pre-IPO placement and the price being asked for the public offering.

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“If a company had placed its equity with somebody three or six months before the IPO at say 100 and now wishes to hit the market with a price of450, we have no problem with that. However, the company needs to disclose to the investor the reasons for the price differential. The investor is then free to make his or her own decision,” Buch said.

Sebi has in the past floated consultation papers on issues such as basis of issue price in IPOs, pre-filing of IPO papers, covering mutual fund units in insider trading norms and open offer pricing in case of PSU disinvestment. In all of the above, the underlying principle of allowing flexibility with appropriate oversight can be seen, experts said.

The regulator may look to relax certain provisions in the takeover regulations for disinvestment of public sector undertakings (PSUs). Disinvestment in PSUs is usually a long drawn out process and information relating to the same comes in public domain through government decisions and statements made from time to time.

“In such cases, the sixty trading days volume weighted average market price parameter for the price of the open offer, may make the deal unpalatable for the investor. Sebi’s intent is to provide flexibility in such cases. The common principle behind such thinking is allowing flexibility with appropriate safeguards,” Tiwari said.

Similarly, the intent behind including mutual fund units within the purview and relevant definitions of insider trading regulations is to bring parity in regulations and to protect retail investors.

“Sebi’s consultation paper itself acknowledges that there may be scenarios where a person having knowledge of sensitive information, may not have any control on the decisions of the MF, and the proposed framework should take into account such circumstances as well,” Tiwari said.

Markets crash for fourth day, investors lose over Rs 13 trillion in wealth

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Benchmark indices fell for the fourth straight day on Monday amid weak global cues and selling by overseas investors.

The Sensex slid 954 points, or 1.6%, to close at 57,145, while the Nifty 50 index ended at 17,016, down 1.8%. Investors have lost over Rs 13 trillion in wealth over the last four days.

Foreign portfolio investors sold shares worth Rs 5,100 crore on Monday, provisional figures show, after offloading shares worth Rs 2,900 crore on Friday. In the year to date, the investors have net sold $20.6 billion.

Outflows from US-listed emerging market ETFs that invest across developing nations as well as those that target specific countries totaled $1.73 billion in the week ended September 23, compared with gains of $3.5 million in the previous week, according to data compiled by Bloomberg.

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The rupee slid to a new record low against the dollar, closing at 81.58 against the greenback. The dollar index, which gauges the greenback’s strength against a basket of six currencies, advanced to 114, before easing to 113 levels and is up about 3.5% in the past five days.

The benchmark 10-year US treasury yields jumped to 12-year highs on Friday on concerns that central banks globally would keep tightening monetary policy to tackle inflation, with yields ruling above 3.7% on Monday.

“We have got to get inflation behind us. I wish there were a painless way to do that. There isn’t,” Fed chair Jerome Powell said in a press conference last Wednesday.

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S&P Global Ratings and OECD on Monday retained India’s growth forecast for the current fiscal at 7.3% and 6.9%, respectively. S&P Global sees India growing at 6.5% for the next fiscal, although it sees the risks tilted to the downside.

“The speed with which central banks across the globe are hiking interest rates, investors are worried that slackening growth would push key economies into recession. With the monetary policy decisions on the anvil, rate-sensitive stocks like banking, realty & auto crumbled badly as rate hikes could dent demand going ahead,” said Shrikant Chouhan, head of Equity Research (Retail), Kotak Securities.

Global risk assets, including equities, extended their selloff on Monday as fears of faster inflation and global recession continued to rise. Asian indices ended in the red, with Japan’s Nikkei 225 sliding the most at 2.7%.

The Chinese government raised the foreign exchange risk reserve requirements for financial institutions to stem a drop in the yuan, making it more expensive for traders to short the currency.

“The recession fears in the US and European countries, the Russia-Ukraine war and the political uncertainty in China has cast a cloud of uncertainty in the global economy. A slowdown/recession would impact our country’s exports as demand for goods and services would begin to dry up,” said Sandeep Bhardwaj, CEO, IIFL Securities.

Bhardwaj expects higher volatility in IT stocks in the medium term. Banks, on the other hand, are well placed with supportive monetary stance, healthy capitalisation, improved liability profile, diversified asset mix and healthy asset quality along with strong coverage ratios, according to him.

“It is a sell on rise market for the medium term, but this would provide an opportunity to accumulate quality stocks for the long term. We would emphasise large caps over mid-caps as earnings growth estimates in mid-caps, and especially small caps, are much in excess to historical levels,” Bhardwaj said.

All eyes will now be on the six-member Monetary Policy Committee, which is scheduled to meet from September 28-30. The dollar’s continued strength, as well as geopolitical concerns in Europe will weigh on the MPC, which is likely to go ahead with a 50-bps hike, said experts.