Month: December 2023

EXPLAINER: The growing relationship between cloudverse and gaming industry

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The concept of entertainment seems to not be restricted to movies, music, and TV shows anymore, with mainstream gaming coming into the picture. While the segment is considered to be developmental, introduction of new technologies is enabling the modern transition from how games used to be played. One of the technologies which is considered to be a benefactor is cloud computing, as it has the potential to help gaming reach the next phase of its growth. “I believe the integration of cloud technology in gaming allows players to access games by eliminating the need for hardware. Overall, cloud technology seems to have revolutionised the gaming market by offering convenience, accessibility and enhanced gameplay opportunities,” Rohit Bansal, founder, Super 4, an online fantasy sports gaming platform, told FE TransformX.

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The market, as it stands

In terms of benefits, cloud gaming allows increased accessibility for games to be enjoyed without the need to have expensive hardware. Market research has shown that as cloud gaming is played on servers, chances of embezzlement of gamers’ data is reduced, along with ensuring economical costs, no device-based restrictions, and real-time multiplayer gaming experiences. Overall, problems related to processing capacity and memory storage get eliminated through the cloud computing’s impact. “I think factors such as the availability of high-speed internet, the adoption of budget-friendly smartphones, and the surge in mobile gaming have contributed to the growth of cloud gaming. Additionally, the rollout of 5G Internet should enhance the cloud gaming experience by providing glitch-free gaming and enabling real-time gaming live streaming on smartphones,” Harshit Jain, co-founder and CEO, OnePlay, a cloud gaming company, stated.

Numbers, and more numbers

According to Mordor Intelligence, a market intelligence and advisory firm, the global cloud gaming market is expected to clock $1.69 billion in 2023 and should further achieve $6.8 billion by 2028, at a 32.14% compound annual growth rate (CAGR). As per reports published by Ericsson, the total count of cloud gaming subscribers should reach close to 99 million by 2031. Based on what market trends suggest, the rise in augmented reality (AR) and virtual reality (VR) technologies has been the driving force behind the cloud gaming sector.

Interestingly, India too has seen its side of developments. For instance, in January, 2023, Reliance JioGames entered into a 10-year partnership to unveil JioGamesCloud in India. Moreover, 2022 saw Microsoft introducing Xbox Cloud Gaming in New Zealand and Argentina and Nintendo completing the acquisition of SRD Co Ltd. Moreover, future predictions indicate that access to high-quality internet will amplify the level of cloud gaming, as it’s considered to be in a nascent stage. Market signs suggest that an upward trend in business collaborations between game creators and cloud gaming corporations will benefit this landscape, since developers such as Mainframe have already entered into the planning stage for cloud games.

“The trajectory of the cloud gaming market suggests an evolution ahead. As AI technology deepens its roots, its integration into gaming should transcend current boundaries. We can anticipate a shift from basic applications like chatbots to advanced AI-infused characters, possibly giving rise to digital athletes in sports simulations. Merged with advancements in VR/AR, these innovations could offer gaming experiences that mirror real-world interactions,” Krishan Deegalla, founder and CEO, Meta11, an AI-based online fantasy cricketing platform, concluded.

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Harsha Engineers IPO share allotment: Check grey market premium, status via BSE, registrar; listing on 26 Sep

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Harsha Engineers International’s Rs 755-crore IPO, which got subscribed 71.32 times on the final day of bidding, is likely to finalise the basis of allotment on Wednesday, 22 September. The portion reserved for qualified institutional buyers was subscribed 178.26 times and that for non-institutional investors was subscribed 71.32 times. The retail investors portion was subscribed 17.63 times. The IPO shares were sold at a price band of Rs 314-330 per share. The equity shares are expected to list on BSE and NSE on 26 September 2022. The initiation of refunds or unblocking of funds from ASBA account will take place on 22 September, and the equity shares will get credited to allottees demat account on 23 September 2022.

In the grey market, Harsha Engineers International IPO shares were commanding a premium in the range of Rs 220-240 premium against the IPO price of Rs 330 apiece, according to the people who deal in unlisted shares of the companies. The IPO investors can check the IPO allotment status via BSE and the registrar’s websites. The registrar of the issue is Link Intime India Private Ltd, a SEBI-registered entity, responsible for the IPO allotment and refund processing.

Check Harsha Engineers International share allotment status via registrar Link Intime India website

To check the share allotment status, select the company name as ‘Harsha Engineers International — IPO’ from the drop-down list on the Link Intime India website when it gets declared. Check box either PAN, Application Number or Depository/Client ID. Accordingly, enter the permanent account number or Application Number or Depository/Client ID in the box. Enter the given captcha in the provided space and click the submit button. This will display the number of shares that have been applied and allotted to the investor.

Also Read: Indian economy to grow at 6.8% this fiscal, CAD may widen to 5.5% of GDP in Q2 FY23

Check share allotment status in Harsha Engineers International via BSE website

Another way to check the allotment status in Harsha Engineers International is through the BSE website. Select ‘equity’ as the issue type, and ‘Harsha Engineers International’ as the issue name from the drop-down list, when it gets declared. Enter the application number and PAN (permanent account number). Click on ‘I am not a Robot’. In the last step, click on the search tab to view the status details.

Share Market Highlights: Sensex ends 600 down, Nifty below 16900 amid weak cues; ICICI Bank, Infosys top drags

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Share Market News Today | Sensex, Nifty, Share Prices Highlights: Bears gripped Dalal Street on the first day of the week as benchmark indices ended in red amid weak global cues. The S&P BSE Sensex settled at 56,789, down 638 points or 1.11 per cent. The NSE Nifty 50, too, closed 207 points, or 1.21 per cent, lower at 16,887. Adani Enterprises was the biggest Nifty dragger as it dropped 9 per cent. This was followed by selling in Eicher Motors, Maruti Suzuki, Adani Ports, Hindalco, Tata Consumer Products, HUL, Kotak Bank, ITC, HDFC Life, Britannia, SBI, and Tata Motors. On the upside, ONGC, Cipla, Coal India, Dr Reddy’s Labs, BPCL, Divis Labs, and Bharti Airtel helped trim losses.

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Share Market Today | Sensex, Nifty, BSE, NSE, Share Prices, Stock Market News Highlights 3 October, Monday

15:48 (IST) 3 Oct 2022 Top gainers, losers

Adani Enterprises, Eicher Motors, Adani Ports, Maruti Suzuki and Tata Consumer Products were among the top Nifty losers. However, gainers included ONGC, Dr Reddy’s Laboratories, Cipla, BPCL and Coal India. Except pharma, all other sectoral indices ended in the red. In broader markets, BSE Midcap index shed 1.2 per cent and Smallcap index fell 0.54 per cent.

15:47 (IST) 3 Oct 2022 Nifty, Sensex end in red

Indian equity benchmarks got off to a rocky start on Monday. The BSE Sensex index plunged 638.11 points to end at 56,788.81, and the broader NSE Nifty crashed 207 points to 16,887.35, after data showed India’s factory activity fell to a three-month low. The market mood was fragile on Monday as crude prices jumped over 4 per cent on a potential cut in production by oil producers, exacerbating fears that aggressive interest rates hiked by central banks around the world to tame elevated inflation would increase the likelihood of a worldwide recession.

15:35 (IST) 3 Oct 2022 Rupee closes lower

Indian rupee closed 53 paise lower at 81.87 per dollar against the previous close of 81.34.

15:04 (IST) 3 Oct 2022 Nifty, Sensex extend losses

Benchmark indices extended the losses and trading at day’s low with Nifty below 16900.

14:20 (IST) 3 Oct 2022 European markets in red

European stocks fall on Monday as markets enter the last quarter of the year; Stoxx 600 index dropped 1% in early trade

14:17 (IST) 3 Oct 2022 Nykaa shares surge 11% on bonus issue news

Shares of FSN E-Commerce, the parent company of Nykaa, rallied 11% to the day’s high price of Rs 1,414 on Monday after the company announced a 5:1 bonus share issue. The company has fixed November 3, 2022, as the record date for determining investors’ eligibility for the bonus share issue.

14:16 (IST) 3 Oct 2022 Nifty, Sensex slip deep into red

Benchmark indices slipped deep in the red in afternoon deals. While Sensex fell 500 points, Nifty 50 slipped below 17000. Bank Nifty fell over 400 pts as banking stocks witnessed sell-off.

13:47 (IST) 3 Oct 2022 Power stocks drag

BSE Power index shed 1 per cent, dragged by the Adani Green, Siemens, Adani Transmission

13:35 (IST) 3 Oct 2022 Nifty, Sensex trade in red

Benchmark indices were trading lower with Nifty hovering around 17000.The Sensex was down 239.12 points or 0.42% at 57187.80, and the Nifty was down 61.50 points or 0.36% at 17032.80.

13:34 (IST) 3 Oct 2022 Gold climbs on weaker dollar

Gold prices rose on Monday as a softer dollar rekindled some of bullion’s appeal for overseas buyers, although the prospects of sharp interest rate hikes by the U.S. Federal Reserve and other major central banks capped further gains. Spot gold was up 0.5% at $1,667.89 per ounce, as of 0603 GMT. U.S. gold futures were 0.2% higher at $1,675.30. The dollar index was down 0.4% against a basket of currencies, making greenback-priced bullion less expensive for overseas buyers. Benchmark U.S. 10-year Treasury yields were also lower after rising for two days.

13:02 (IST) 3 Oct 2022 Bank stocks drag

Nifty Bank index declined 1 per cent, dragged by the AU Small Finance Bank, Kotak Mahindra Bank, IndusInd Bank

13:01 (IST) 3 Oct 2022 Morgan Stanley Overweight On Cyient

Morgan Stanley has kept overweight rating on Cyient with a target at Rs 700 per share. See potential part divestment of the DLM business as incrementally positive, said Morgan Stanley. The divestment will provide flexibility to scale up DLM business & may unlock shareholder value, however, divestment is still at a very early stage. Cyient was quoting at Rs 788.35, down Rs 3.85, or 0.49 per cent on the BSE.

13:00 (IST) 3 Oct 2022 Future Supply Chain Solutions’ MD resigns, shares up

Mayur Toshniwal has resigned as a director of Future Supply Chain Solutions with effect from September 30, 2022. With his resignation, Mayur has also ceased to be Managing Director of the company. Future Supply Chain Solutions was quoting at Rs 27, up Rs 0.55, or 2.08 per cent.

12:57 (IST) 3 Oct 2022 Paytm share price rises 7% in 6 months, may rally this much more; JP Morgan bullish, should you buy?

Paytm share price rose 3 per cent on Monday after foreign brokerage firm JP Morgan reiterated a positive stance on the stock last week. Analysts maintained a price target of Rs 1,000 on the scrip, suggesting an over 50 per cent potential rally going forward. The brokerage firm believes that Paytm is undergoing a model shift from chasing ‘growth at any loss’ to ‘profitability at scale’ now. “Moderation in indirect expenses Q2 onwards should hence be a catalyst,” it said. Paytm shares have tanked over 50 per cent so far this year, but have risen 7 per cent in the last 6 months. Paytm share price jumped over 3 per cent to hit an intraday high of Rs 660 on NSE. JPMorgan’s target price on the counter suggests a 51 per cent potential upside over Monday’s intraday high level. 

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11:38 (IST) 3 Oct 2022 Paytm share price jumps 3%

Paytm share price rose 3 per cent on Monday after foreign brokerage firm JP Morgan reiterated positive stance on the stock last week. Analysts maintained price target of Rs 1,000 on the scrip, suggesting a 55 per cent rally going forward.

11:38 (IST) 3 Oct 2022 Noida-based LED lighting solutions IKIO Lighting files IPO paper with SEBI

IKIO Lighting has filed its draft red herring prospectus with the capital markets regulator Securities and Exchange Board of India to raise funds via initial public offering (IPO). The public issue consists of a fresh issue of equity shares worth up to Rs 350 crore and an offer-for-sale (OFS) up to 7,500,000 equity shares by Promoter and selling shareholders, which comprises of up to 6,000,000 by promoter Hardeep Singh, up to 1,500,000 by Surmeet Kaur (selling shareholders).

11:36 (IST) 3 Oct 2022 Nykaa share price rallies 11% as board approves bonus issue in 5:1 ratio

Nykaa board approved bonus issue in 5:1 ratio. “Fixation of Thursday, November 03, 2022, as the record date for the purpose of determining members eligible for bonus equity shares,” company said in a BSE filing. Nykaa share price rallies 11%

11:34 (IST) 3 Oct 2022 September PMI shows manufacturing grows for 15th month in a row; output looks set to expand further

India’s manufacturing activity in September expanded for the fifteenth month in a row, but slowed down the acceleration from the previous month. The S&P Global India Manufacturing Purchasing Managers’ Index (PMI) posted at 55.1 for September, down marginally from August’s 56.2. Amid global headwinds, policy shocks, and recession fears, the manufacturing sector remains in good health. The expansion in the industry is attributed to new business growth, expanded operating capacities, and demand resilience. Leading indicators suggest that “output looks set to expand further at least in the short-term as firms seek to fulfil sales contracts and replenish stocks”, Pollyanna De Lima, Economics Associate Director, S&P Global Market Intelligence, said in the PMI note. Read full story

11:33 (IST) 3 Oct 2022 Electronics Mart India IPO opens on Tuesday, GMP rises; should you subscribe?

Electronics Mart India Ltd’s (EMIL) Rs 500 crore-IPO will open for public subscription on Tuesday (4 October) and will conclude on 7 October. The price band for the issue has been fixed at Rs 56-59 per share. The consumer durables retail chain’s IPO consists of a fresh issue of equity shares aggregating to Rs 500 crore, with no offer for sale (OFS) component. The company intends to utilise the net proceeds from the initial share sale to fund its capital expenditure, and support incremental working capital requirements. The proceeds will also go towards paying debt, and for general corporate purposes. Read full story

11:07 (IST) 3 Oct 2022 Rupee likely to consolidate in near-term, may fall to 83 level, if 82 breached amid global uncertainty

Looking at the global uncertainty and tighter liquidity, the rupee is expected to trade left in the medium term while in the shorter term it could consolidate in the range. Spot USDINR is having a line on sand at 82 and crossing of it will pave way for 83 and more while on the lower side. Read full story

10:43 (IST) 3 Oct 2022 India Sep Manufacturing PMI at 55.1

India September Manufacturing PMI at 55.1 versus 56.2

10:41 (IST) 3 Oct 2022 Nifty to witness buying above 17300, use Bull Call Spread for 6 Oct F&O expiry; Bank Nifty may trade mixed

Traders can initiate a Moderately Bullish strategy with reduced premium outflow & lower breakeven point called BULL CALL SPREAD of 6 October expiry wherein trader can buy one lot of 17,100 call strike @ 144 and simultaneously sell one lot of 17,350 call strike @ 47, so that net outflow or maximum loss will be restricted to up to Rs 4,850. If Nifty closes above 17,197 on expiry day then the strategy will start making profits. The maximum gains will be restricted up to Rs 7,650; because the gains of long 17,100 strike call will be offset by the sold 17,350 strike call if Nifty closes above 17,350 on expiry. Read full story

10:37 (IST) 3 Oct 2022 Adani Ports share price rises

In September 2022, Adani Ports and Special Economic Zone recorded 13% on-year growth in cargo volumes to reach 26.1 MMT. In the initial six months of FY23, the company managed 177.5 MMT of cargo, which is a good 11% increase over the corresponding period last year.  During H1FY23, east coast volumes are up 13% YoY, supported by Krishnapatnam (+13%), Gangavaram (+9%) and Kattupalli & Ennore combined (+51%). The west coast volume jump of 10% is supported by Mundra (8%), Dahej (65%), Tuna (19%), and Goa (22%). Adani Ports and Special Economic Zone was quoting at Rs 824.60, up Rs 3.55, or 0.43 percent on the BSE.

09:51 (IST) 3 Oct 2022 Bank Nifty falls half a per cent

Nifty Bank fell 0.5 per cent or 203.45 points to 38,428.50

09:27 (IST) 3 Oct 2022 Titan Company, Nestle, Infosys top Sensex laggards

Titan Company, Nestle India, Infosys, IndusInd Bank, Maruti Suzuki of India, Asian Paints, TCS among top BSE Sensex losers

09:25 (IST) 3 Oct 2022 Reliance, Wipro, Sun Pharma top BSE Sensex gainers

Stocks of NTPC, Reliance Industries Ltd (RIL), Sun Pharma, UltraTech Cement, Power Grid Corporation of India, Reliance, Axis Bank, Hindustan Unilever Ltd, Wipro were among top BSE Sensex index

09:21 (IST) 3 Oct 2022 Sensex, Nifty fall at open

BSE Sensex fell 0.4 per cent or 200 points to 57227, while NSE Nifty was down 42 points or 0.24 per cent to 17015

09:13 (IST) 3 Oct 2022 Look to accumulate on dips: Rahul Sharma

US markets can be expected to bottom out anytime soon. Look to accumulate on dips with stoploss placed at 16,640 on closing basis & Target of 17,500.

Position Sizing Guide: Large

Support: 17,030 & 16,840

Resistance: 17,291 & 17,500 | Rahul Sharma, JM Financial Services

09:11 (IST) 3 Oct 2022 Credit Suisse crisis unlikely to impact the markets

Even though there are global challenges for equity markets, India’s outperformance is likely to continue. A significant trend in the market now is the dominance of DIIs and retail investors over FIIs. Last Friday when FIIs sold equity worth Rs 1545 crores in the cash market DIIs bought equity for Rs 3245 crores. If this kind of dominance of DIIs and retail investors can be sustained, FIIs will have to slow down their selling even in the context of rising dollar and bond yields in the US. Re-entry for FIIs will be expensive since DIIs and retail will not easily sell back the stocks which FIIs have sold. Auto numbers for September confirm the strong auto rebound trend. There is more room for CV, PV and select 2-wheeler stocks to move up.

The fears regarding the Credit Suisse crisis are unlikely to impact the markets since it doesn’t have the potential to become a systemic crisis. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

09:04 (IST) 3 Oct 2022 Sensex, Nifty down in pre-open

BSE Sensex was down 119 points or 0.2 per cent to trade at 57316, while NSE Nifty 50 was down 26 points to 17068

09:02 (IST) 3 Oct 2022 Nifty’s drop to 16300-16483 support appears to be on the table

After a sharp rebound on Friday, equity markets could once again come under a bear hammering in early Monday trades, tracking weakness across the Asian markets. SGX Nifty is indicating a gap-down start for local equities in the backdrop of a brutal selling witnessed at Wall Street in Friday’s trade where the S&P 500 ended at a new closing low for the year and the Dow Jones index dived deep into bear market territory. There is lack of evidence from the Fed’s action that they are winning their battle against inflation. For now, the market seems to be assuming that more hawkishness is on the menu. Technically speaking, Nifty’s drop to 16300-16483 support appears to be on the table. Prashanth Tapse – Research Analyst, Senior VP (Research), Mehta Equities

08:59 (IST) 3 Oct 2022 Petrol, Diesel Price Today, 3 Oct 2022: Fuel cost static; 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 3 October 2022 (Monday), keeping costs steady for more than three months now. The petrol rate and diesel rates in Delhi are 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

08:31 (IST) 3 Oct 2022 Gas prices hiked 40%; CNG, PNG to cost more

Prices of natural gas, which is used to generate electricity, make fertiliser and is converted into CNG to run automobiles, were on Friday hiked by a steep 40 percent to record levels, in step with global firming up of energy rates.

The rate paid for gas produced from old fields, which make up for about two-thirds of all gas produced in the country, was hiked to USD 8.57 per million British thermal units from the current USD 6.1, according to an order from the oil ministry’s Petroleum Planning and Analysis Cell (PPAC).

08:04 (IST) 3 Oct 2022 Will bulls manage to pull Nifty above 17200 amid uncertainty? 5 things to know before market opening bell

Indian benchmark indices are expected to start the week and month in the red amid weak global cues. Wall Street tumbled on Friday and Asian markets too opened with losses on Monday. SGX Nifty was in red, hinting at a negative start for the Indian share market. In the previous session, BSE Sensex and NSE Nifty had snapped out of the red streak to end with gains. The Nifty trend and outlook is now neutral to positive in daily, weekly, and monthly charts, implying a balanced risk-reward, according to market analysts. “The momentum has strengthened further, indicating a high probability of a trend or outlook change in this week. The preferred strategy for this week remains ‘sell the rise’,” they said.

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08:03 (IST) 3 Oct 2022 HFCL announces launch of 5G Lab-as-a-Service

HFCL Limited announced the launch of 5G Lab-as-a-Service to accelerate rollout of 5G solutions and services.  In the previous trading session, HFCL shares closed at Rs 72.80, up Rs 0.45, or 0.62 per cent.

08:02 (IST) 3 Oct 2022 April-August fiscal deficit comes in at Rs 5.42 lakh crore

The central government’s fiscal deficit stood at Rs 5.42 lakh crore in April-August, accounting for 32.6 per cent of the full-year target, data released by the Controller General of Accounts showed. The fiscal deficit for April-August 2021 had accounted for 31.1 per cent of the FY22 target. The fiscal deficit in the first five months of FY22 was Rs 4.68 lakh crore. As such, the fiscal deficit in April-August of the current financial year is 15.7 per cent higher on a year-on-year basis. The Centre is targeting a fiscal deficit of Rs 16.61 lakh crore for FY23, or 6.4 per cent of GDP.

07:43 (IST) 3 Oct 2022 TCS to consider 2nd interim dividend on Oct 10 board meeting

Tata Consultancy Services (TCS) will be considering a second interim dividend for the financial year FY23 in a board meeting scheduled on October 10. Also, TCS will announce its financial results for Q2 and six monthly periods of FY23. The company has also announced a record date to determine eligible shareholders for the dividend benefits. In Q2, seasonal strength and digital services growth are likely to lift TCS revenue sequentially. Revival in EBIT margin is also expected due to the absorption of wage revision.

07:40 (IST) 3 Oct 2022 Crude oil rises

Oil surged to near $82 a barrel on indications the OPEC+ alliance is considering cutting production by more than 1 million barrels a day to revive plunging prices when it meets this week. A reduction of that magnitude would be the biggest since the pandemic, although OPEC+ delegates said a final decision on the size of the cuts won’t be made until ministers gather in Vienna on Wednesday. West Texas Intermediate futures jumped around 3%, on track for the first gain in three sessions.

07:28 (IST) 3 Oct 2022 Asian markets lower

Shares in the Asia-Pacific mostly fell on Monday as markets enter the last quarter of the year. Hong Kong’s Hang Seng index was 0.8% lower in early trade. In Australia, the S&P/ASX 200 gave up early gains to fall 0.4%. Japan’s Nikkei 225 fell more than 1% in early trade, but recovered slightly and was last up 0.18%, while the Topix index was fractionally lower. MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.32%. China markets are closed for the Golden Week holiday, and South Korea’s market is also closed. Later in the week, Australia’s central bank will announce its interest rate decision, while several countries in Asia will report inflation data.

07:27 (IST) 3 Oct 2022 US market end lower on choppy trading

Stocks fell in choppy trading Friday as Wall Street closed out a terrible week, month, and quarter that brought the S&P 500 to a new 2022 low. This was the first time Wall Street has posted three consecutive quarters of losses since the aftermath of the global financial crisis more than a decade ago. The Dow Jones Industrial Average closed below 29,000 for the first time since November 2020. The index fell 500.10 points, or 1.71%, to 28,725.51. The Nasdaq Composite was 1.51% lower, ending the day at 10,575.62. Meanwhile, the S&P 500 was down 1.51% on Friday, falling to 3,585.62. The index closed out its worst month since March 2020. For September, the Dow tumbled 8.8%, while the S&P 500 fell 9.3%. The Nasdaq lost 10.5%.

NMDC Rating: ADD | Post rise in export duty to 50%; NMDC cuts iron ore prices

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NMDC has cut iron ore prices, too aggressively, ~40% in the past three months post increase in export duty, to export parity level. We believe domestic prices have bottomed out and should recover with demand from 2HFY23E. We see limited downside to seaborne prices as well, despite weak demand in China, due to cost support. The steel plant demerger and listing are likely to conclude in Q3FY23E and should unlock some value. We raise earnings and Fair Value to Rs 140 factoring recovery in prices and higher value to steel plant. Upgrade to ADD.

Domestic prices are trading at export parityNMDC has cut iron ore prices by 40% in 1HFY23 mainly led by increase in export duty to 50% from 30% in May 2022. NMDC’s fine prices are now at 34% discount to import parity versus historic average of 20% and close to export parity prices. We believe iron ore prices have bottomed out and have upside risk led by (i) recovery in domestic demand allowing miners to raise prices to a premium to export parity, (ii) upside in seaborne iron ore prices and (iii) potential rollback of increase in export duty to 50% (from 30%).

Steel plant demergerNMDC’s 3 mtpa steel plant is gradually progressing towards commissioning with coke pushing expected to complete in September 2022. We expect liquid steel production in December 2022 and plant commissioning in Q4FY23E. For the demerger, the Ministry of Corporate Affairs (MCA) hearing is concluded and approval is expected soon. We expect the demerger and separate listing to conclude by the end of CY2022. We increase the value of the steel plant to Rs 35/share (0.5X book) from Rs 25/share (0.35X book) in our SoTP, factoring the recent progress.

Seaborne prices to see cost supportSeaborne iron ore prices have been range-bound, $95-110/ton, in the past two months after a 30% correction in Q1FY23. We estimate that the current 90th percentile cost is ~$90/ton as the cost curve has got elevated due to high labour costs in Australia, export duty in India and higher energy prices globally.

Increase earnings and Fair Value to Rs 140/share (from Rs 115)We have increased NMDC’s EPS to Rs 17.1/14.9/12.3 factoring ~5% premium to export parity and reduced capex from FY2024-25e assuming deconsolidation of steel plant. Rollback of the recent increase in export duty on iron ore would add further upside to our earnings and Fair Value. The stock trades at attractive 3.8X EV/Ebitda or 6.2X PER on FY2024E ex-steel plant; we upgrade our rating to ADD.

Petrol, Diesel Price Today, 22 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 22 September 2022 (Thursday), keeping costs steady for more than three months now. Petrol rate and diesel rate 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: Rupee likely to depreciate on strong dollar, risk aversion in equity markets; USDINR to trade in this range

Also read: Powell signals more pain to come with Fed sending rates higher to tame inflation

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

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.

Share Market HIGHLIGHTS: Sensex ends 156 pts up, Nifty at 17332 on weekly F&O expiry day; ICICI Bank up 2%

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Share Market News Today | Sensex, Nifty, Share Prices HIGHLIGHTS: Domestic equity market benchmarks BSE Sensex and NSE Nifty 50 ended the volatile session in the positive territory on Thursday, a day of weekly F&O expiry. BSE Sensex ended 157 points or 0.3 per cent up at 58,222, while NSE Nifty 50 gained 58 points or 0.3 per cent to settle at 17,332. Stocks of Tata Steel, L&T, ICICI Bank, HCL Tech, Infosys, Axis Bank, Sun Pharma, Wipro, Reliance Industries, among others were Sensex gainers. On the flip side, Bharti Airtel, Hindustan Unilever Ltd (HUL), IndusInd Bank, Housing Development Finance Corporation (HDFC), Bajaj Finance were among top index losers. India VIX, the volatility index, fell 1.3 per cent to end at 19.32 levels. Bank Nifty gained 0.4 per cent to finish at 39,283.

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

15:45 (IST) 6 Oct 2022 Sensex, Nifty extend Tuesday’s rally

BSE Sensex ended 157 points or 0.3 per cent up at 58,222, while NSE Nifty 50 gained 58 points or 0.3 per cent to settle at 17,332

14:53 (IST) 6 Oct 2022 Internet companies FY23Q2 preview

For Q2FY23, we estimate sequential revenue growth of 8.8%, 7.3%, 1.4% and 4.8% for Zomato, IndiaMART InterMESH (IndiaMART), Info Edge (IEL) and Just Dial (JD), respectively. However, higher employee costs and advertising spends would weigh on margins. As companies are at different stages of profitability and growth, we are seeing their divergent priorities. Edelweiss

13:49 (IST) 6 Oct 2022 Electronics Mart India IPO: Public issue closes on 7th Oct, check grey market premium; should you subscribe?

Electronics Mart India Ltd’s (EMIL) Rs 500 crore-IPO has been subscribed 2.64 times so far on day 2. The IPO received bids for 21,05,78,192 shares against 6,25,00,000 shares on offer, according to the data available with the NSE. The last day to subscribe to the issue is Friday, 7 October 2022. 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. In the grey market, Electronics Mart India shares were trading with Rs 36 per share premium, according to the people who deal in unlisted shares of the companies. Read full story

11:33 (IST) 6 Oct 2022 India Services growth loses momentum, September PMI shows weakest expansion since March; price pressures hurt

India’s Services PMI saw a dip and posted 54.3 in September, following August’s rise, suggesting a loss of growth momentum owing to price pressures, unfavourable public policies, and an increasingly competitive environment. The seasonally adjusted S&P Global India Services PMI Business Activity Index fell from 57.2 in August to 54.3 highlighting the weakest rate of expansion since March 2022. The data, however, reflected sustained economic growth, the S&P Global report noted. Read full story

11:19 (IST) 6 Oct 2022 Electronic Mart India IPO subscription update

Electronic Mart India IPO subscribed 2.64 times at 11.03 am (Day 2). Overall 2.64 times, QIB 1.68 times, NII 2.54 times and Retail 3.22 times

11:19 (IST) 6 Oct 2022 Lack of positive triggers for tech stocks in near term

We remain cautious on IT Services and expect more legs to consensus EPS downgrade cycle (refer IT Services – Nexus of cost management, EPS surprise, dated 27 September 2022). Post 24% correction FYTD, tier I Tech plays are trading close to their five-year average 12m rolling forward P/E (-5% to +9%), while at 11-40% premium to pre-pandemic average. We see lack of positive triggers for tech stocks in the near term. We maintain Reduce on Wipro and SELL on Mphasis. Elara Securities

10:51 (IST) 6 Oct 2022 Britannia to buy Britania: 130-yr old Indian co to acquire Kenya firm for this much money, expand Africa ops

India’s biggest cookie manufacturer, Britannia Industries Ltd., clinched a deal for operations in Kenya as part of its plan to expand in Africa. The company teamed up with Nairobi-based Kenafric Industries to purchase Catalyst Capital-backed Britania Foods Ltd. in Kenya in a $20 million transaction that also involved acquiring property and a plant, Mikul Shah, a director at Kenafric, said in an interview. Britannia Industries, unrelated to Britania Foods, took a controlling stake in the partnership, he said. Read full story

10:49 (IST) 6 Oct 2022 India September Services PMI at 54.3

India September Services PMI at 54.3 vs 57.2 sequentially; India September Composite PMI at 55.1 vs 58.2 (MoM)

10:25 (IST) 6 Oct 2022 MCX gold may trade in Rs 51,480-52,350 range

Gold and silver did witness some pressure in yesterday’s after a rally in the past few session; Dollar index and U.S. yields were up by ~1% and 4% respectively. Although this move seems to have reversed again in early morning trade as pressure on U.S. Yields and Dollar continues to support metal prices. Data showed U.S. private employers stepped up hiring in September, suggesting demand for workers remains strong despite rising interest rates and tighter financial conditions. Focus now shifts to the U.S. Labor Department’s closely watched nonfarm payrolls data for September on Friday. San Francisco Fed Mary Daly underscored the U.S. central bank’s commitment to curbing inflation with more rate hikes, even as she said the Fed will not simply barrel ahead if the economy starts to crack. Today the focus will be on the Service PMI data expected from major economies. Broader trend on COMEX could be in the range of $1710-1740 and on domestic front prices could hover in the range of Rs 51,480-52,350. Navneet Damani, Sr. Vice President – Commodity & Currency Research, Motilal Oswal Financial Services

10:06 (IST) 6 Oct 2022 Gold Price Today, 6 Oct 2022: Gold gets costlier, near Rs 52000; analysts say ‘buy on dips’, check silver rate

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate and silver rate were trading higher in India on Thursday, on the back of positive global cues. On the Multi Commodity Exchange, gold December futures were ruling Rs 269 or 0.5 per cent up at Rs 51915 per 10 gram, as against the previous close of Rs 51646. Silver December futures were trading at Rs 61490 per kg, up Rs 723 or 1.2 per cent on MCX. Globally, yellow metal prices edged higher as Treasury yields retreated, although gains were limited after stronger U.S. economic data bolstered expectations the Federal Reserve will retain its hawkish narrative. Read full story

09:33 (IST) 6 Oct 2022 Nifty’s near-term target at 18115

Standard deviation studies encourage us to look beyond and set 18115 as the near-term target. A close in the 17500 vicinity could be considered a confirmation signal towards this end, while also helping MACDF with a centre line cross over for the first time in almost one and a half months. Alternatively, a close back below 17300 would dilute the upside prospects. Anand James – Chief Market Strategist at Geojit Financial Services

09:32 (IST) 6 Oct 2022 Petrol and Diesel Price Today, 6 Oct 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 remained unchanged on 6 October 2022 (Thursday), keeping costs steady for nearly four months now. The petrol rate and diesel rate in Delhi are at Rs 96.72 and Rs 89.62 per litre, respectively. In Mumbai, petrol is retailing at Rs 106.31 per litre and diesel at Rs 94.27 per litre. Read full story

09:25 (IST) 6 Oct 2022 HDFC, HDFC Bank, Kotak Bank top Sensex laggards

Bajaj Finance, Housing Development Finance Corporation (HDFC), Hindustan Unilever Ltd (HUL), HDFC Bank, Kotak Mahindra Bank, IndusInd Bank were among top index draggers.

09:24 (IST) 6 Oct 2022 Reliance Industries, Infosys top Sensex gainers

Stocks of L&T, HCL Technologies, Sun Pharma, Reliance Industries, Infosys were among top Sensex leaders

09:21 (IST) 6 Oct 2022 Sensex, Nifty extend Tuesday’s rally

BSE Sensex jumped 500 points or more than 1 per cent to 58578, while NSE Nifty 50 crossed 17400 on weekly F&O expiry day

08:42 (IST) 6 Oct 2022 USDINR to remain in 81.20-81.90 range, before breaking towards 82.50

Back home, Rupee is likely to open near 81.60 levels, with an expected intraday range of 81.35 to 81.90. The cues for the USDINR in recent days have been mixed. On one side, weakness in the USD amid a short recovery in riskier equities and currencies along with RBI’s small step towards guiding oil refiners to lean on the $9 bn credit line instead of the spot helped Rupee to off from its low. But recovery in US yields amid rising inflationary concerns has again put pressure on Rupee in the Asian market today. The focus shifts to today’s US private payroll and tomorrow’s official job report, which will further drive the momentum in USD and thus will guide the Rupee. Overall, we expect the USDINR pair to remain in a range of 81.20 to 81.90, before breaking towards 82.50 levels. Amit Pabari, managing director, CR Forex Advisors

08:35 (IST) 6 Oct 2022 Bank Nifty support at 38000, Nifty to trade flat on today’s expiry; use short straddle for 13 Oct F&O expiry

Nifty Put options OI distribution shows that 17,000 has highest OI concentration followed by 17,100 & 17,200 which may act as support for current expiry and on the Call front 17,500 followed by 17,600 & 17,700 witnessed significant OI concentration and may act as resistance for current expiry. Options data suggest an immediate trading range between 17,500 and 17,100 levels.In Nifty Call writing was witnessed at 17,500 , 17,550 & 17,600 ;while on Put side it was seen at 17,200 ,17,100 &17,000. Read full story

08:16 (IST) 6 Oct 2022 Bank Nifty index support at 38500

Bank Nifty had a decent gain when it closed for the day. On the daily chart, the index has closed above 50 EMA which is a bullish setup. The RSI has narrowed down its negative crossover. The trend looks positive. On the lower end, support is placed at 38500, resistance on the higher end is visible at 39500/40000. Rupak De, Senior Technical Analyst at LKP Securities

08:14 (IST) 6 Oct 2022 Banking, financial sector could remain in momentum in near-term

We expect momentum in Nifty to continue towards 17650-17700 zone. The earning season is about to begin with TCS reporting its result on 10th Oct’22. Being seasonally strong quarter, IT companies are expected to report healthy 9% constant currency QoQ PAT growth in Q2. However, commentary around weakening global macro and adverse FX impact would be key monitorable. Pre quarterly updates from banking and financial companies indicate strong Q2FY23 earnings, hence this sector could remain in momentum in the near term. We expect stock specific action with pre quarterly updates coming in over the next few days. Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services

08:12 (IST) 6 Oct 2022 Nifty immediate support at 17150

The short term trend of Nifty has turned up sharply after a broader range movement of the last few sessions. A decisive move above 17300 levels is likely to pull Nifty towards the next crucial resistances of around 17600 and next 18000 levels in the near term. Immediate support is placed at 17150 levels. Nagaraj Shetti, Technical Research Analyst, HDFC Securities

08:12 (IST) 6 Oct 2022 Morgan Stanley says bottom near for emerging-market equities

Having endured a long stretch of losses, stocks in emerging markets and Asia excluding Japan are close to completing their bear-market cycles, Bloomberg report quoted Morgan Stanley. It’s highly likely these markets are bottoming amid “abundant” signs of extreme selling, the investment bank’s strategists including Jonathan Garner wrote in note Tuesday. They upgraded emerging-market and Asia ex-Japan stocks to overweight from equal-weight. Bloomberg

08:10 (IST) 6 Oct 2022 US stock market falls in overnight trade on Wednesday

In overnight trade on Wednesday, Wall Street stocks closed lower after data showing strong U.S. labor demand again suggested the Federal Reserve will keep interest rates higher for longer, according to Reuters. The Dow Jones Industrial Average fell 42.45 points, or 0.14%, to 30,273.87, the S&P 500 lost 7.65 points, or 0.20%, to 3,783.28 and the Nasdaq Composite dropped 27.77 points, or 0.25%, to 11,148.64.

08:10 (IST) 6 Oct 2022 Asian stock markets trade mixed on Thursday

Asian stock markets were trading mixed in early trade on Thursday. Japan’s Nikkei 225 gained 0.78%, while the Topix added 0.71%. The Kospi in South Korea rose 0.81% and the Kosdaq was 1.85% higher.

08:09 (IST) 6 Oct 2022 SGX Nifty positive on weekly F&O expiry day

Nifty futures on the Singapore Exchange were trading 89 points, or 0.51 per cent, higher at 17,428.

Israeli troops briefly raid northern Gaza to ‘prepare’ for an expected full-scale incursion

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Israeli troops and tanks briefly raided northern Gaza overnight, the military said Thursday, engaging with Hamas fighters and targeting anti-tank weapons in order to “prepare the battlefield” before an expected ground invasion.

The third Israeli raid since the war began came after more than two weeks of devastating airstrikes that have left thousands dead, and more than 1 million displaced from their homes, in the small, densely-populated territory.

The rising death toll in Gaza is unprecedented in the decades-long Israeli-Palestinian conflict. The Health Ministry in Hamas-ruled Gaza said Thursday more than 7,000 Palestinians have died in the fighting, a figure that could not be independently verified. Even greater loss of life could come if Israel launches a ground offensive aimed at crushing Hamas, which has ruled Gaza since 2007 and survived four previous wars with Israel.

More than 1,400 people in Israel, mostly civilians, were slain during the initial Hamas attack, according to the Israeli government.The damage to Gaza from nearly three weeks of bombardment showed in satellite photos of several locations taken before the war and again in recent days.

Entire rows of residential buildings simply disappear in the photos, reduced to smears of dust and rubble. A complex of 13 high-rises by the sea was pounded to dust near Gaza City’s al-Shati refugee camp, leaving only a few tottering bits of facade. Just down the street, hardly anything remained in what had been a neighborhood of low-built homes on winding lanes, according to the photos by Maxar Technologies.

New strikes Thursday leveled more than eight homes belonging to an extended family, killing at least 15 people in the southern city of Khan Younis. In the chaotic wasteland of crumbled concrete and twisted metal, rescuers lifted the body of a boy from beneath a slab.

The Israeli military said an airstrike killed one of two masterminds of the Oct. 7 massacre, Shadi Barud, the head of Hamas’ intelligence unit. The military says it only strikes militant targets and accuses Hamas of operating among civilians in an attempt to protect its fighters.

Palestinian militants have fired thousands of rockets into Israel since the war began. One struck a residential building in the central city of Petah Tikva, without wounding anyone.

Hamas’ military wing said Thursday that Israeli bombardment has so far killed about 50 of the at least 224 hostages the militants abducted during its Oct. 7 assault. There was no immediate comment from Israeli officials, who have denied previous, similar claims.

Family members and Jewish groups are trying to keep the spotlight on the hostages’ plight. In Paris, 30 empty baby strollers were displayed in front of the Eiffel Tower — each with a photo of one of the children taken from Israel. A day earlier, blindfolded teddy bears with photos of the abducted children were placed in front of a fountain in Tel Aviv.

The conflict has threatened to ignite a wider war across the region.

Hezbollah, an Iranian-backed ally of Hamas in Lebanon, has repeatedly traded fire with Israel along the border. The United States has sent to the region two aircraft carrier strike groups, along with additional fighter jets and other weaponry and personnel.

In a statement Thursday night, U.S. Defense Secretary Lloyd Austin said the strikes in eastern Syria were “a response to a series of ongoing and mostly unsuccessful attacks against U.S. personnel in Iraq and Syria by Iranian-backed militia groups that began on Oct. 17.”

He said President Joe Biden directed the narrowly tailored strikes “to make clear that the United States will not tolerate such attacks and will defend itself, its personnel and its interests.” He added that the operation was separate and distinct from Israel’s war against Hamas.

Israel has vowed to crush Hamas’ capacity to govern Gaza or threaten Israel again but also says it doesn’t want to reoccupy the territory, from which it withdrew soldiers and settlers in 2005. That could prove a daunting challenge, since Hamas is deeply rooted in Gaza, with political and charity organizations as well as a formidable armed wing.Benny Gantz, a retired general and a member of Israel’s war Cabinet, said any possible ground offensive would be only “one stage in a long-term process that includes security, political and social aspects that will take years.”

“The campaign will soon ramp up with greater force,” he added.

The overnight raid into Gaza was the largest of several known brief incursions. The military said soldiers and tanks killed fighters and destroyed tunnels and anti-tank missile launching positions. The military said no Israelis were wounded. There was no immediate confirmation of any Palestinian casualties.

Daniel Hagari, a military spokesman, said the incursion was “part of our preparations for the next stages of the war.”

Israel also said it also carried out around 250 airstrikes across Gaza in the last 24 hours, targeting tunnel shafts, rocket launchers and other militant infrastructure. Its reported targeting could not be independently verified.

The figure of 7,000 deaths reported by the Gaza Health Ministry is more than three times the number of Palestinians killed in the six-week-long Gaza war in 2014. The ministry’s toll includes more than 2,900 minors and more than 1,500 women.

After Biden said he had “no confidence” in Gaza’s casualty figures, the Health Ministry on Thursday countered by releasing a more than 200-page document listing the names of 6,747 dead, including ages and gender. It said another 281 dead had not been identified and that hundreds still missing under rubble were not included in the count.

The warning by the U.N. agency for Palestinian refugees, UNRWA, over depleting fuel supplies raised alarm that the humanitarian crisis could quickly worsen. Israel is still barring deliveries of fuel — needed to power generators — saying it believes Hamas will take it for military use.

About 1.4 million of Gaza’s 2.3 million residents have fled their homes, with nearly half of them crowding into U.N. shelters. Hundreds of thousands remain in northern Gaza, despite Israel ordering them to evacuate to the south and saying that those who remain might be considered “accomplices” of Hamas.

In recent days, Israel has let more than 70 trucks with aid enter from Egypt.“This is a small amount of what is required, a drop in the ocean,” said William Schomburg, an official with the International Committee of the Red Cross in Gaza. “We are trying to establish a pipeline.”

Elsewhere, Egyptian state-run media outlet Al Qahera News reported early Friday that an explosion hit the Egyptian resort town of Taba, which is near the border with Israel. Five people were wounded. The cause of the blast was not immediately clear, and The Associated Press could not immediately confirm the details.

Nine Arab countries — including key U.S. allies and nations that have signed peace or normalization deals with Israel — issued a joint statement Thursday calling for an immediate cease-fire and an end to the targeting and death of civilians.

“The right to self defense by the United Nations Charter does not justify blatant violations of humanitarian and international law,“ said the statement, signed by Egypt, Jordan, Bahrain, The United Arab Emirates, Saudi Arabia, Oman, Qatar, Kuwait and Morocco.

In the occupied West Bank, Israeli authorities detained 86 Palestinians, including five women, in multiple raids overnight, bringing the total detained there to more than 1,400, according to the Palestinian Prisoners Club, which represents former and current prisoners. At least 104 Palestinians have been killed in violence in the West Bank.

Tata Steel Rating: Hold| Mega merger to bring in material benefits

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By Edelweiss research

We perceive the Tata Steel (TSL) board approving the amalgamation of seven subsidiaries with the parent as a prudent step. Key points: (i) Lower iron ore cost for subsidiaries such as TSLP and Tata Metaliks. (ii) Iron ore assets of the group are likely to be balanced through the lease life. (iii) Potential synergies across sales, marketing, procurement and logistics likely to accrue over medium to long term. For the TSL stock, we see the near-term benefits of cost/operating synergies being offset by potential dilution; however, the stock prices of subsidiaries are likely to recalibrate to the ones implied by the swap ratio. Maintain ‘HOLD’ on TSL with an unchanged TP of Rs 98.5/share on 5x Q2FY24e Ebitda.

Also Read: FPIs pump in Rs 8,600-cr in Sep; pace of investment slows

Streamlines product portfolioWe see the group’s long products’ strategy getting a firm direction as there could be sharper management oversight on expansion plan/integration of NINL. Besides, TSL’s existing long portfolio is likely dovetail with the proposed expansion, resulting in optimisation of product offerings. In our view, the amalgamated subsidiaries are also likely to benefit from TSL’s existing client base. On the procurement front, common sourcing of key raw materials such as iron ore and limestone would also reduce cost.

Outlook: Benefits to be realised over time; maintain ‘HOLD’ We perceive the proposed amalgamation scheme in line with management’s strategic intent of simplifying the structure and unlocking value. In our view, the benefits of lower iron ore royalty cost are likely to be immediate, but the more strategic ones such as portfolio optimisation, sharpened focus on long products and cross-functional benefits are likely to accrue over a period of time. In terms of the stock reaction, for Tata Steel, we see the benefits of incremental Ebitda from subsidiaries to be offset by dilution in shareholding. The stock prices of listed subsidiaries are however, likely to recalibrate to the one suggested by the swap ratio. We maintain ‘HOLD’ on TSL with an unchanged target price of Rs 98.5 on 5x Q2FY24e Ebitda. Other listed subsidiaries of TSL are not rated.

Union Budget 2021: Select sectors to drive earnings; buy these stocks ahead of Budget

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Indian share markets are witnessing volatility ahead of Union Budget 2021. BSE Sensex and NSE Nifty 50 rose to record highs of 50,184 and 14,753 points, respectively, last week. Since then Sensex has tumbled 1,290 points or 2.56 per cent, while the NSE’s Nifty 50 index lost 382 points. BSE market-capitalisation has also fallen to Rs 195 lakh crore from an all-time high of Rs 199 lakh crore hit yesterday. Vinit Bolinjkar, Head of Research, Ventura Securities Ltd, sees a limited upside in Indian share market from the current levels. Further, the execution of budget announcements will sway the market sentiment. In an interview with Surbhi Jain of Financial Express Online, he also talked about a few sectors that will drive earnings in the coming days.

Where do you see BSE Sensex, Nifty 50 on Budget day? Which sectors are likely to remain in focus?

With new IPOs hitting the markets, what would be your advice to investors?

Quality and pricing are to be kept into consideration. We will see optimization in the IPO market. Only quality businesses are expected to sustain their valuation and do well in future. One has to look at the promoters/board of directors/stakeholders, quality of the business, business outlook and valuation before investing in any IPO.

What would be an appropriate strategy for Nifty Bank traders?

The investors should hedge the long futures. We are bullish on the Indian market but global sentiments could create volatility. To mitigate it we would recommend hedging the long futures.

What do you make of call-put option data ahead of Union Budget 2021?

Shooting VIX and our proprietary tools suggest that we have initiated a short term downtrend at least till expiry.

Which three sectors do you think will drive earnings in near-medium term and why?

As mentioned earlier, infrastructure, agriculture and manufacturing will remain in focus. Global investors are bullish on India, and with the intent to capitalize this opportunity govt could raise funds through overseas bonds. Infrastructure and capital goods companies could be the key beneficiaries. PLI scheme for mobile & allied equipment, API and medical equipment is likely to be extended to other manufacturing goods such as consumer durables, capital goods, etc and export-focused companies could be the key beneficiaries. The government may focus on the entire agricultural value chain to improve productivity and reduce post-harvest losses while ensuring adequate realisation for the farmers. Therefore the focus would be more on the roll-out of DBT for fertilizer subsidy.

What are your overweight and underweight sectors/stocks in the run-up to the Union Budget 2021?

We would recommend BUY on stocks in infrastructure, fertilizers, capital goods and consumer durables. Larsen & Toubro Ltd and RITES are our bets in infrastructure space, while Siemens, Cummins India and AIA Engineering are well-positioned in the capital goods segment.

Muthoot Finance Rating: Buy | Better times ahead for the company

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By Kotak Institutional Estimates

We believe that the withdrawal of teaser rate loans and better pricing discipline will support Muthoot’s near-term net interest margin (NIM). Gold price tailwinds due to a depreciating INR will augur well for Muthoot’s medium-term growth prospects. We remain positive and upgrade the stock to BUY (from ADD) with a revised Fair Value of Rs 1,240 (22% upside).

Rising competitive pressures had prompted Muthoot to launch teaser loans in December 2021 that put pressure on its NIM for two subsequent quarters. The company stopped the scheme in April but the entire portfolio was shifted to higher-yielding loans by June 2022. Increasing credit growth in the system will likely prompt these players to shift focus away from gold loans that tend to be a low-ticket, low-duration and high-velocity business.

Also Read: One 97 Communications Ltd Rating: Overweight | Margin improvement in payment business

Valuation undemanding despite improving underlying securityWe remain assertive on Muthoot’s business model to deliver ~20% RoE and low-to-mid teens medium-term growth. Credit cost remains low due to solid underlying security and Muthoot’s risk-management systems that have ensured strong portfolio performance over cycles. Growth has, however, been volatile linked to gold price movements and auctions. While we are not revising our estimates, we find upside risks from a depreciating INR supporting gold prices. Valuations at 7.6X earnings and 1.5X book FY2024E are undemanding. BUY; RGM-based FV stands at Rs 1,240 .