Significance of asset diversification and risk profiling in the rapidly changing investment culture

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By Deepak Singh

Information-driven smart investing has become a buzzword in today’s technology-led globalised world as all investors want to earn risk-free returns without making too much of an effort. A couple of decades ago, earning risk-free returns sounded impossible, but today information technology (IT) has made it possible. IT has brought the entire world on fingertips which helped you understand the happenings around the world before making smart decisions. Understanding stock or sector-specific developments along with allied businesses may, therefore, have a direct or indirect bearing on your profit earning.

Over the last few decades, creating awareness through continuous educational content has increased investors’ confidence towards the stock market which is evident from a sharp increase in new enrolments. Markets regulator Sebi reported 2.2 times increase in new Demat account holders in the post-pandemic era.

Also Read: Investment lessons to learn from Lord Ganesh: Here’s how to build a robust investment portfolio

Sebi data showed the total number of Demat account holders were at 35.9 million, an increase of 3.9 million in the financial year 2018-19. During the financial year 2019-20, 5 million new accounts were added which took the tally to 40.9 million, followed by 14.2 million in FY 2020-21 to 55.1 million. In the years 2021-22, 34.6 million new accounts were opened taking the total tally to 89.7 million accounts. In Aug’22, total Demat accounts crossed the 100 million mark.

The AUM of the Indian MF Industry has grown from ₹ 7.30 trillion as on July 31, 2012, to ₹37.75 trillion as on July 31, 2022 more than 5 fold increase in a span of 10 years. The total number of accounts (or folios) as on July 31, 2022, stood at 13.56 crore (135.6 million).

Changing investment culture

There has been a complete transformation in the investment climate over the last few decades. In the fast growing social media era, individuals have started sharing information on every possible platform which gets transmitted in seconds to the entire world whether relevant investors or others.

Investors have now realised the lacunae of the social media platforms and started checking facts about the company and the sector, along with other allied businesses before taking final investment decisions. Since the regulator has made sharing of price sensitive information mandatory, smart decision making has become easier now than ever before when social media was not evolved. Hence, you must know your portfolio before making a financial planning decision.

Often decision-making based on public advice does not yield desired results. Hence, self-decision making comes to play a pivotal role. In fact, investors’ behaviour is changing with each passing day which is boosting confidence with understanding the underlying value of companies or the sector and then making choices, instead of directly vouching for a tip given via social media.

Plethora of opportunities

Globalisation has opened an ocean of opportunities for investors of which equities, indices, commodities, mutual funds, bonds, post office and bank deposits, and assets-linked investment schemes have become popular. Smart investors understand the instrument and assess the risk associated with them, explore alternative options, and compare returns before making a final decision, instead of jumping the bandwagon directly.

Asset diversification and risk profiling

In order to safeguard the investment and harvest maximum returns, you require to build a diversified portfolio in a proportion that suits your needs. A diversified portfolio distributes the asset-specific risk and helps you prepare to deal with it. In investment parlance, an underperformance of some stocks or asset classes due to any domestic or international issues always yields a surge in other ones. Thus, you can not only compensate the potential loss in one asset class with other ones, but also earn higher returns even in rough waters from a diversified portfolio. Hence, portfolio diversification helps you minimise the potential of loss and increase earnings in all market eventualities. Thus, portfolio diversification is an easy way to wealth creation by increasing your returns over a period of time.

Also Read: MCX Gold outguns Comex on weak Indian Rupee, yellow metal may trade sideways; buy on dips for gains

Conclusion

Earlier, there was a huge stigma around equity markets which prompted many investors to stay away from the risks and stick to the post office and fixed deposit schemes. These instruments eroded your capital post adjusting to the inflation. The perception, however, of not having exposure has changed now after a huge volume of content pushed on investor education. Now, investors are believing in a long term profit with risk profiling and a diversified investment portfolio.

(Deepak Singh is the Chief Business Officer at Reliance Securities. The views expressed in the article are of the author and do not reflect the official position or policy of FinancialExpress.com.)

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

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

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

Development of In-Flight Kitchen Facility at Noida Airport

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

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

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

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

(With PTI Inputs)

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

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

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

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

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

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

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

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

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

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

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

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

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

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

~Srikanth Subramanian, CEO, Kotak Cherry

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Share Market HIGHLIGHTS: Sensex ends 322 pts up, Nifty at 17936 ahead of CPI inflation, IIP data; Reliance up

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Share Market News Today | Sensex, Nifty, Share Prices HIGHLIGHTS: Domestic equity market benchmarks BSE Sensex and NSE Nifty 50 settle more than 0.5 per cent high on Monday, ahead of India’s CPI Inflation of August and IIP for July data release. BSE Sensex gained 322 points or 0.5 per cent to settle at 60,115, while NSE Nifty 50 added 0.6 per cent or 103 points to finish trade at 17,936.35. Stocks of Tech Mahindra, Titan Company, Axis Bank, Tata Steel, Reliance Industries Ltd (RIL), Wipro were among top index gainers. On the contrary, Nestle India, Housing Development Finance Corporation (HDFC), HDFC Bank, Mahindra & Mahindra (M&M), Sun Pharma were among top index losers. Nifty Bank index gained 0.4 per cent to settle trade at 40,574

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15:37 (IST) 12 Sep 2022 Sensex ends above 60000, Nifty at 17936

BSE Sensex gained 322 points or 0.5 per cent to settle at 60,115, while NSE Nifty 50 added 0.6 per cent or 103 points to finish trade at 17,936.35

15:03 (IST) 12 Sep 2022 India’s IIP data in focus today, July output data to provide status on manufacturing, mining, other sectors

The government will on Monday evening release the keenly-watched factory output data for the month of July. The factory output measured in terms of Index of Industrial Production (IIP) grew 12.3 per cent in June this year, remaining in double digit for second month in a row due to base effect. Read full story

14:57 (IST) 12 Sep 2022 Defense sector in focus

Defense sector is buzzing currently on the back of a strong order book, orders from GOI under the Ministry of Defense, technological advancements and requirements according to the geopolitical environment and export orders. This gives us a visibility of up to 4-5 years as the country needs to match the international standards. Furthermore, profitability led by higher indigenisation theme, better operating leverage and higher contribution from non government orders should augur well for the margins. Valuations too seem comfortable to us for the entire sector. Therefore we are bullish on the sector, particularly on BEL due to additional positives like a lean balance sheet, better working capital management and emphasis on some non profitable non defense sectors. Ashwin Patil, Senior Research Analyst at LKP Securities

14:50 (IST) 12 Sep 2022 Credit growth to be in range of 12-13% during FY23

In the short term, given the approaching festival season, the credit growth is likely to remain elevated. After a modest credit growth in recent years, the outlook for bank credit offtake is positive due to the economic expansion tracking nominal GDP growth, rise in government & private capital expenditure, rising commodity prices, implementation of the PLI scheme, the extension of ECLGS for MSME and retail credit push. The medium-term prospects look promising with diminished corporate stress and a substantial buffer for provisions. However, inflation remains a key risk. Even as RBI has managed domestic inflation to some extent, internationally inflation has remained high despite hawkish policies. Hence, CareEdge estimates the credit growth to be in the range of 12%-13% during FY23, however, rate hikes could adversely impact credit growth. CareEdge

14:28 (IST) 12 Sep 2022 Surging prices hit UK economic growth, raise recession risk

Britain’s economy grew by less than expected in July, raising the risk that it is already in a recession, with the sharp climb in energy tariffs hurting demand for electricity and a leap in the cost of materials hitting the construction sector. With inflation at a 40-year high of more 10%, gross domestic product expanded by 0.2% from June, official data showed on Monday, weaker than a median forecast of 0.4%. Read full story

13:25 (IST) 12 Sep 2022 India’s milk export to boost Modi’s Atma Nirbhar Bharat; PM says dairy sector employs 8 crore families

PM Narendra Modi said that India has become the largest producer of dairy products in the world due to collective efforts of small-scale dairy farmers. India’s dairy sector is recognised for production by masses rather than mass production. “Today 8 crore families are getting employment from the dairy sector,” the PM said while inaugurating International Dairy Federation World Dairy Summit (IDF WDS) 2022 on Monday, 12 September. Union Minister of Fisheries, Animal Husbandry and Dairy Purshottam Rupala said that the World Dairy Summit 2022 has been organised after over 48 years in India. “Our milk production is 220 million tonne today. We are in the position to export surplus milk, in line with the ‘Aatma Nirbhar Bharat’,” Rupala said. Read full story

13:05 (IST) 12 Sep 2022 Buy these two stocks for near-term gains, charts show strength; Nifty needs to hold above 17550, buy on dips

Back home, expect the rally to continue in the domestic market due to strong macro, continued FIIs buying interest and oil price falling to 7-month low. Sensex gained nearly 1000 points or 2%, biggest weekly gain since July. Better than expected quarterly earnings along with strong PMI data and above normal monsoon will be big positive in the local bourses. FIIs were strong net buyers over Rs6000cr this week while Sensex has shown over 60k intra-day high this week. It is expected that the Indian markets will continue its upward journey and any decline will be good buying opportunity. Read full story

12:30 (IST) 12 Sep 2022 Mahindra Lifespace Developers share price jumps over 2%; stocks hit fresh 52-week high on BSE

Shares of Mahindra Lifespace Developers touched its 52-week high in the morning trade on Monday after the realty firm said it is looking to acquire a few land parcels this fiscal to build housing projects. Shares of the company opened at Rs 541.95 on Monday, then gained 2.37 per cent to touch Rs 550.40, its 52-week high level on the BSE. Similar movement was seen on the NSE as well. The stock opened at Rs 539 and later touched its 52-week high of Rs 539.30 apiece. Read full story

11:35 (IST) 12 Sep 2022 Reliance share price gains 1%, Mukesh Ambani’s RIL to acquire Shubhalakshmi Polyesters for Rs 1592 cr

Shares of Reliance Industries gained nearly 1 per cent in morning trade on Monday after the company announced the acquisition of polyester chips and yarn manufacturer Shubhalakshmi Polyesters Ltd for Rs 1,592 crore. On September 10, Reliance Industries said the acquisition is part of the strategy to expand its downstream polyester business. Read full story

11:28 (IST) 12 Sep 2022 CPI inflation may see marginal uptick to 6.75-6.9% on fall in crude oil prices, IIP may at come in at 5.7-5.9%

CPI inflation print eased to a five-month low to 6.71% in Jul’22 compared to 7.01% in Jun’22 due to easing of food inflation. Food and beverage inflation softened to 6.71% in July from 7.56% in June on account of sequential decline in prices of vegetables, edible oils and protein items. Edible oil inflation has moderated in recent months owing to government interventions and easing global prices. Core CPI also moderated to 10-month low to 5.8% in July. Falling international commodity prices have eased cost pressures for producers to some extent. Read full story

10:38 (IST) 12 Sep 2022 MCX gold price to trade sideways to weak this week, investors await US CPI inflation data; check support level

We expect gold prices to trade sideways to down this week with COMEX spot gold resistance at $1740 per ounce and support at $1676 per ounce. At MCX, Gold October prices have near term resistance at Rs. 51500 per 10 grams and support at Rs. 49800 per 10 gram. COMEX Spot silver has near term resistance at $19.40 per ounce with support at $17.90 per ounce. MCX Silver December has important resistance at Rs. 57000 per kg and support at Rs. 52500 per kg. Read full story

10:18 (IST) 12 Sep 2022 Petrol, Diesel Price Today, 12 Sep 2022: Fuel cost steady, check rates in Delhi, Mumbai, Noida, other cities

Petrol and Diesel Rate Today in Delhi, Bangalore, Chennai, Mumbai, Lucknow: The price of petrol and diesel has been kept steady on 12 September 2022 (Monday), 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

10:06 (IST) 12 Sep 2022 Nifty may trade positive, use Iron Butterfly for 15 Sep F&O expiry; Bank Nifty may hit 42000; Buy SBI, M&M

The chart pattern suggests that if NSE Nifty 50 crosses and sustains above 18000 level it would witness buying which would lead the index towards 18100-18400 levels. However, if the index breaks below 17600 level it would witness selling which would take the index towards 17500-17300. For the week, we expect Nifty to trade in the range of 18400-17400 with a positive bias. The daily and weekly strength indicator RSI is above its respective reference lines indicating positive bias. Read full story

09:28 (IST) 12 Sep 2022 Nifty looks set to hit 18160-18600 in near term, Bank Nifty shows upmove; watch out for these levels

Bank Nifty has begun to show much more upward mobility than Nifty. Its present up move, which is the third such attempt since markets came off the 2021 peaks, has returned 26% in the span of 84 days, putting the last two attempts to shade. Further, the present move is replete with bullish continuation patterns, adding credence to the expectation that this run could get extended much beyond the record peak. Nifty Midcap100 index has broken out of the flag pattern on weekly time frame alongside a psar breakout in the monthly charts painting a positive outlook for the index in the medium term. Read full story

09:22 (IST) 12 Sep 2022 Nifty Bank remains above 40,500

Nifty Bank index was up 0.3 per cent, to trade above 40,540

09:21 (IST) 12 Sep 2022 HDFC shares top BSE Sensex laggard

HDFC (Housing Development Finance Corporation) was the only S&P BSE Sensex loser

09:20 (IST) 12 Sep 2022 Reliance, Infosys, Titan top BSE Sensex gainers

Tech Mahindra, Infosys, Tata Steel, HCL Tech, M&M, Wipro, TCS, Titan Company, ICICI Bank, Dr Reddy’s, Reliance, were among top index gainers

09:19 (IST) 12 Sep 2022 Sensex, Nifty jump 0.5%

BSE Sensex was up 272 points or 0.5 per cent to trade above 60,000, while Nifty 50 index soared above 17900

09:07 (IST) 12 Sep 2022 The beaten down IT segment may participate in pull back rally

The most important bullish factor that has caused and is sustaining India’s market outperformance is the strong growth recovery underway in India now. RBI’s report which puts bank credit growth now running at 15.5% is an endorsement of this fact. Bank Nifty which has outperformed Nifty by 11% is a reflection of this strong undercurrent in the banking segment. Even though valuations are high it appears that this rally has more steam to go up. While financials will continue to be resilient some sector rotation can be expected at this juncture. The beaten down IT segment may participate in a pull back rally. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services

09:07 (IST) 12 Sep 2022 Nifty looks set to touch 18160-18600 in near term

Last Friday’s rejection trades on approach to 17900 revives collapse fears, having fallen about 4.5%, the last time Nifty rose above 17900, on 19 August. But the main difference this time is that last Friday’s dip was accompanied by decline in VIX, as opposed to a rise in VIX on 19th August. This encourages us to look for 18160-18600 in the near term. Alternatively, inability to float above 17750, will negate our bullish bias, and revisit chances of 17000-16650, should 17450 give away as well. Anand James – Chief Market Strategist at Geojit Financial Services

09:06 (IST) 12 Sep 2022 FPIs infuse Rs 5,600 crore in Indian equities in September so far

Foreign investors have pumped in close to Rs 5,600 crore into the domestic equity markets in this month so far on expected growth in consumer spending in festive season and better macro fundamentals compared to other emerging markets. This comes following a net investment of staggering Rs 51,200 crore in August and nearly Rs 5,000 crore in July, data with depositories showed. Read full story

09:01 (IST) 12 Sep 2022 Reliance Industries Rating: Buy – Building the next engine of growth: Motilal Oswal

The report showed RIL’s FY22 belonged to the O2C (order to cash) segment performance that outpaced other segments, even as RJio retained its market share. Retail business saw a steady recovery. The high crude prices led to 56% y-o-y Ebitda growth in O2C business while Retail grew 28% y-o-y; RJio growth, however, decelerated to 22% y-o-y. Post-equity raise during the last couple of years, FY22 saw a strong capex with heavy investments, especially in RJio, which included a large-scale spectrum investment. Read full story

09:00 (IST) 12 Sep 2022 Nifty near 18K: Market pundits call for caution

Market pundits are calling for caution amid a surge in Indian equities since mid-June and the benchmark 50-share Nifty nearing a decisive resistance level of 18,000. The index has corrected on four occasions after breaching the mark in the past year, with three corrections in excess of 10%. A gap of more than 2 percentage points between the yield of 10-year government securities and that of Nifty50 earnings has also coincided with the peaking of Nifty, according to foreign brokerage Jefferies. The current gap stands at 2.01 ppt. Read full story

08:59 (IST) 12 Sep 2022 CPI inflation likely to reverse 3-month downtrend in Aug on high food prices; WPI seen in double-digits

The inflation prints for August 2022 that are due to be released early next week assume significance as they would be the final official inflation-related data points available before the Monetary Policy Committee’s (MPC) meeting in end-September 2022. We expect the CPI and the WPI inflation to display a contrasting trend. ICRA expects the CPI inflation to have witnessed a mild base-effect led uptick in August 2022, halting the downtrend seen in the last three months. The WPI inflation, on the other hand, is expected to have continued to ease for the third consecutive month, while remaining firmly in double digits. Read full story

OYO’s valuation drops in private market

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Will bears drag Nifty to 16800 amid high volatility, uncertainty? 5 things to know before market opening bell

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The sell-off in the domestic share market is likely to continue as SGX Nifty hinted at a gap-down open for NSE Nifty 50 and BSE Sensex with a loss of 101 pts or 0.5%. “We expect market volatility to continue until RBI MPC outcome and monthly derivatives expiry. We expect stock related to domestic consumption to perform well with strong festive season. Also sectors like Paint, FMCG would see momentum on the back of sharp fall in crude oil prices,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.

Also Read: Reliance, HCL Tech, Dish TV, Torrent Pharma, Birla Corporation, IDBI Bank, Adani Group stocks in focus

Nifty technical view: “A reasonable negative candle was formed on the daily chart, that has placed beside the similar negative candle of previous session. Technically, this pattern signal broader range bound action in the market with weak bias. It also indicates a lack of strength in the intraday upside bounce. This is not a good sign and one may expect further weakness in the short term. The area of 16800 has acted as an important value area, and has resulted in significant movement from its support/resistance/breakouts in the past. Hence, having declined swiftly from the highs of 18K mark this time, there is a possibility of a sustainable upside bounce from near this support,” said Nagaraj Shetti, Technical Research Analyst, HDFC Securities.

Levels to watch for: As Nifty remains below 17150 zones, weakness may be seen towards 16850-16800 zones whereas hurdles are placed at 17250. As Banknifty suggested more weakness in line, heavy weights Bank showed no resilience to free fall. So, closing below 38000 levels would stretch towards 37200. Increasing exposure in quality stocks would be advisable for coming weeks, according to Om Mehra, Technical Associate, Choice Broking.

Stocks under F&O ban on NSE: Vodafone Idea, and Zee Entertainment Enterprises are the two stocks under the NSE F&O ban list for 28 September. Securities thus banned under the F&O segment include companies where derivative contracts have crossed 95 per cent of the market-wide position limit.

Also Read: Sensex falls for 4th day straight, Nifty support at 16907; investors eye crude oil prices, RBI MPC meet

Global slowdown threat looms: The head of the World Trade Organization told Reuters on Tuesday that she expects that global trade forecasts will be revised lower from the current 3 per cent for 2022, citing the ongoing Russia-Ukraine war and related food and energy crises. “We are in the middle of revising our forecasts now but it’s not looking very promising. All the indicators are pointing to downside numbers,” Director-General Ngozi Okonjo-Iweala said adding “Grosso modo the outlook is looking gloomy. The WTO already revised down its forecast for global trade growth this year to 3 per cent from 4.7 per cent in April.

Indian rupee likely to trade in 78.70-80.10 range against US Dollar amid global uncertainties

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By Dilip Parmar

The rupee could start the day on a positive note amid foreign fund inflows, risk-on sentiments and lower crude oil prices. Risk sentiment was bolstered by developments in Europe, where Ukraine was making progress in its counteroffensive against Russia. While investors now appear comfortable with the prospect of a 75-basis point interest rate rise by the Federal Reserve.

Also read: Petrol, Diesel Price Today, 13 Sep 2022: Fuel cost steady; Check rates in Delhi, Noida, Mumbai, other cities

Foreign institutions have bought $8.08 billion worth of equities in the last three months while the rupee is down by 0.69% following broad-based strength in the dollar index. Spot USDINR has been finding resistance around 80 following the central bank’s aggressive intervention while pullback in the dollar index and foreign fund inflows pushing the pair lower. Looking at the recent high-frequency data and global uncertainties, the pair is expected to trade within the range of 78.70 to 80.10.

The dollar’s pullback in recent days is prompting speculation about whether the currency’s march higher is coming to an end. With the Federal Reserve set to continue its tightening cycle at next week’s policy meeting, Wall Street is expressing growing optimism that the current inflationary dust-up will soon settle down. However, it is still in the advanced stage to say so as economic data and fear of recession will support the dollar bulls. 

Also read: MCX Crude oil September futures may trade at Rs 6500-7250/bbl this week; OPEC cuts output, US CPI focus

(Dilip Parmar, Research Analyst, HDFC Securities, Views expressed are the author’s own.)

Studying Abroad: UK’s crackdown on poor quality degrees

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By Matthew McLellan

The UK Government’s decision to bring University courses that fail to deliver good outcomes under strict control ( those with high drop-out rates and poor employment prospects) is a step that signifies the woes of an intricately related academia-industry–economy troika, and underscores the importance of quality education in preparing students for successful careers and productive lives.

Higher education is crucial in determining the composition of the future labour force and fostering economic growth in a society where information and innovation are increasingly becoming the fundamental driving forces.

Governments all around the world are realising how crucial it is to guarantee that their institutions issue degrees that offer meaningful education and value to international students.

Degrees with Real World Relevance

Degrees must now be carefully matched to the demands of the labour market. Aligning degrees with the needs of the labour market starts a positive feedback loop for economic expansion.

As education becomes more tailored to the skills and knowledge demanded by industries, students graduate with expertise that caters to the need of the economy. This ensures a seamless transition from academia to employment, reducing the skills gap that often plagues economies and enhances social mobility by bridging the gap among students from different socio-economic backgrounds.

Focusing on Student Success

The powerful message emanating from the recent development highlights the importance of supporting student success. Universities and colleges must create environments that nurture learning and engagement in order to ensure that students have the tools and resources they need to thrive not just during the course of their academic journey but also in the aftermath of their degree’s completion.

This approach nurtures among students a sense of accomplishment and incentivises students to stay motivated to complete their degrees. For coaching platforms, this highlights the significance of providing comprehensive support that addresses academic challenges and promotes well-being.

Mitigating Student Debt

An important subtext here is to alleviate the burden of student debt. High levels of student debt can hinder graduates from pursuing opportunities that align with their passions, as they are compelled to prioritise financial stability. To create a more economically empowered workforce, we need to encourage study programs that offer a reasonable balance between cost and potential earnings. Study abroad coaching platforms can contribute by assisting students in making informed decisions while choosing a course.

Call for International Efforts

Global cooperation between governments, institutions, and study-abroad coaching platforms is another noteworthy lesson. To address the challenge of subpar education and create an environment that caters to the needs of industry and students, governments may take this as a ripe opportunity to start exchanging data on effective degree programmes and best practices.

The fact that the number of students looking for possibilities outside of their national boundaries is witnessing exponential growth accentuates that countries and their governments need to collaborate to provide students with a conducive environment that includes their well-being even after the completion of their education, to ensure that irrespective of national origin, every student obtain a top-notch and economically rewarding education wherever they decide to enrol.

Studying abroad is a complex journey that requires investment at all levels of a student’s existence- physical, mental, financial and emotional. Without a doubt, when so much is invested, the outcome must be rewarding in all aspects as well. Degrees that are not economically rewarding are an impediment to that goal.

The recent happenings in the UK vis-a-vis ‘rip-off degrees’ hold valuable lessons for others. We need to act fast to ensure that not a single student from now onwards falls prey to a degree, that costs a fortune and doesn’t yield the desired outcomes, by concentrating our efforts on making education a transformative force for individuals and economies alike.

(Author is CEO and Co-Founder of Halp.co.)

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

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

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

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

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

Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas

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

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

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

Amit Pabari, MD, CR Forex Advisors

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

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