US stocks: Wall Street ends down sharply; investors fret over economy

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Wall Street ended sharply lower on Thursday on worries that the Federal Reserve’s aggressive fight against inflation could hobble the U.S. economy, and as investors fretted about a rout in global currency and debt markets. With tech heavyweights Apple Inc and Nvidia Corp slumping more than 4%, the Nasdaq sank to near its lowest level of 2022, set in mid-June.

The S&P 500 touched lows last seen in November 2020. Down more than 8% in September, the benchmark is on track for its worst September since 2008. A sell-off in U.S. Treasuries resumed as Fed officials gave no indication the U.S. central bank would moderate or change its plans to aggressively raise interest rates to bring down high inflation.

Also read| Reliance, PNB, Hero MotoCorp, Adani Power, Lupin, Bajaj Electricals, Rail Vikas Nigam stocks in focus

“Good news is bad news in that today’s job number again reiterates that the Fed has a long way to go,” said Phil Blancato, head of Ladenburg Thalmann Asset Management in New York. “The fear in the marketplace is that the Fed is going to push us into a very deep recession, which will cause an earnings recession, which is why the market is selling off.”

The most traded stock in the S&P 500 was Tesla Inc, with $20.8 billion worth of shares exchanged during the session. The shares declined 6.8%.The yields on many Treasuries, which are considered virtually risk-free if held to maturity, now dwarf the S&P 500’s dividend yield, which recently stood at about 1.8%, according to Refinitiv Datastream.

Also read| Bears may drag Nifty to 16650 once 16700 support breached; 5 things to know before market opening bell

The S&P 500 dropped 2.11% to end the session at 3,640.47 points.The Nasdaq declined 2.84% to 10,737.51 points, while the Dow Jones Industrial Average declined 1.54% to 29,225.61 points.Volume on U.S. exchanges was relatively heavy, with 11.6 billion shares traded, compared with an average of 11.4 billion shares over the previous 20 sessions.

All 11 S&P 500 sector indexes declined, led lower by utilities, down 4.06%, followed by a 3.37% loss in consumer discretionary.Declining stocks outnumbered rising ones within the S&P 500 by an 11.6-to-1 ratio.Meta Platforms ended down 3.7% after Bloomberg reported the Facebook owner froze hiring and warned employees of more downsizing to come.

CarMax Inc slumped nearly 25% after the used-car retailer missed expectations for second-quarter results, hurt by consumers cutting spending amid inflation, rising interest rates and higher car prices. General Motors Co and Ford Motor Co fell more than 5% each. Airline carriers and cruise operators fell on canceled or delayed trips after Hurricane Ian hit Florida’s Gulf Coast with catastrophic force. American Airlines, United Airlines Holdings and Delta Air Lines each lost more than 2%.Cruise ship operators Norwegian Cruise Line Holdings Ltd dropped 5.3% and Carnival Corp fell 6.8%.The S&P 500 posted no new highs and 106 new lows; the Nasdaq recorded 14 new highs and 518 new lows.

Nifty support seen near 20 bar moving average; buy and sell these two stocks to pocket gains

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By Vishal Wagh

The Nifty has seen a sharp sell-off from the levels of 17992. There were three days’ sell-off till 17345. Post that there was pullback till 17726 which also got sold off till 17166. It is the first indication of resistance in place near 18000 levels and any bounce below 18000 levels can be utilized to go short. On the last day of the week, the market witnessed a sell-off from the high of the day. It is a clear indication that the current bear market rally has come to halt. As far as RSI(14) and 9 EMA the same has started moving below 70 levels. Though the super trend (8,2.25) is also below the current bars thanks to pullback last week. As commonly used moving averages(20 Bar, 50 Bar, 100 Bar & 200 Bar) suggest, there is support near 20 bar MA.

The Nifty is sustaining above all MAs. The slope of 20 bar MA is flattening out and the differences between 20 and 50 bar started contracting. This is an additional signal that the Nifty may get some pressure on the higher side. 

Devyani International (Buy)

On a weekly chart, the stock has witnessed a sharp up move post 181 has been taken off on a closing basis. There is a throwback from highs of 215. Near 180 levels it has created a ‘Morning Star’ candlestick pattern. The RSI(14,9) has retraced to major levels of 55 and now quotes at 60.88 and above 9 EMA. As far as 20 Ema is concerned the slope is upwards. Super Trend(8,8.25) has moved upward suggesting a strong bullish trend is intact. On the higher side, 215 will work as resistance once it gets breached then it will come into uncharted territory. On the lower side, 176 should work as support levels. One can go long in the stock with a stop below 176.

Also read: 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%

Balkrishna Industries (Sell)

Balkrishna Industries has given a breakdown from a symmetrical triangle. It is currently showing support around 100 EMA; once the support gets penetrated the next level of support is at 200 EMA. It is around 1661.80 at a given point in time. Balkrishind is on the verge of death cross as very short-term 20 EMA has got closer to short-term 50 EMA. Both of them have sloped downwards. RSI (14,9) is well below 45 and its EMA is also sloping downwards. All the above observations indicate bearishness in the counter. One can sell the future of Balkrishind with stop loss above 2167 levels for a target of 1661.

Note: All the levels are spot levels.

(Vishal Vasant Wagh, Research Head, Bonanza Portfolio. Views expressed are the author’s own.)

Sugar export quota for 2022-23 soon

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The government will soon announce export quota of sugar for the next marketing year (2022-23) commencing on October 1, 2022, food secretary Sudhanshu Pandey said on Wednesday.

However, he did not disclose the volume of sugar to be allowed to be shipped. India exported a record 11.2 mt of the sweetener in the 2021-22 season while in the previous marketing year 7.1 mt of sugar was exported.

Meanwhile, Aditya Jhunjhunwala, president, Isma, urged the government to expedite the sugar export policy, stating that at least 8 mt of exports are necessary for the 2022-23 season, taking into consideration production estimates.

Isma has estimated that sugar production is expected to be 40 mt while around 4.5 mt would be diverted for ethanol production while domestic consumption would be around 27.5 mt.

Also Read: Sebi working on ASBA-like facility for secondary markets

Jhunjhunwala said that the government should allow any of the two prevalent systems followed in sugar exports in the last two years. The government had followed the minimum indicative export quota in 2020-21 and the open general license system in 2021-22.

“The exports of around 8 mt of surplus sugar after meeting domestic demand and diversion towards ethanol would help maintain domestic sugar prices which would boost the liquidity situation of mills and ensure farmers are paid for sugarcane on time,” he said.

Sugar production in 2021-22 is estimated to be more than 36 mt, against an earlier estimate of 35 mt.

Sugar industry has also asked for financial support for increasing ethanol production capacity in the next three years as the government has set a target of blending 20% of petrol with ethanol by 2025. Currently, 10% of the petrol is blended with ethanol.

The ethanol production sector will be requiring an investment of more than Rs 10,000 crore for creating an additional capacity of more than 400 crore litres for achieving 20% blending target.

Currently, out of 430 litres of ethanol produced in the country around 370 crore litres is contributed by the sugar industry.

ISMA also urged the government to increase the minimum support price (MSP) of sugar from the current level of Rs 31 per kg to at least Rs 36-37 per kg in commensurate with hike in fair and remunerative price (FRP) of cane. MSP of sugar was last announced in February, 2019.

Jhunjhunwala has said ‘the government had fixed MSP of sugar at Rs 31 per kg in February, 2019 when the FRP of sugarcane was Rs 275 per quintal. Since then, FRP of sugarcane has increased twice,’.

Since 85% of the sugar mills’ revenue comes from the sales of sugar, it is an important component to pay the cane price to farmers, he stated..

Unilever flags pricing pressure in India as inflation eases

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Global consumer goods major Unilever says the India market, its second-largest in the world, may see a deflation in pricing within skincare and fabric cleansing, as commodity inflation moderates. The India unit of the London-headquartered company reported a flat price-led growth last week for the September quarter as it cut product prices within laundry and personal care to shore up sales growth. Volume growth at 2% for the period was the lowest in six quarters.

Addressing investors on Thursday, Unilever’s outgoing CFO Greame Pitkethly said that a few categories in India were dependent on commodity prices.

Unilever named a new chief financial officer Fernando Fernandez on Thursday and replaced division heads as new chief executive officer Hein Schumacher promised to revive a company whose ability to win market share dropped to a record low.

The Dutch executive said Unilever will focus investment on its top 30 brands, which represent around three-quarters of revenue, to drive growth, while paring back other parts of its portfolio.

Schumacher also ruled out any major acquisitions and maintained the company’s long-term sales guidance as he spends more on marketing to restore competitiveness. The new approach marks a departure from the strategy of previous CEO Alan Jope, who was criticised for a failed effort to buy GSK Plc’s former consumer health business. Jope also emphasised the social purpose of Unilever’s brands, which some investors said came at the expense of profitability.

As far as India goes, Pitkethly, who will step down from the CFO role on December 31, said that urban areas remained resilient, while rural areas continued to remain subdued. A gradual recovery in rural growth was likely in the Indian market, he said, even as media intensity had increased with the resurgence of small players.

According to Hindustan Unilver‘s (HUL’s) latest investor presentation, the market value growth of regional players over the last three months was 1.4 times that of large brands in tea, and within detergents, regional brands gained six times faster in the same period.

The growing pressure from small brands has prompted HUL to bring its focus on its ‘Winning in Many Indias’ strategy, which classifies India into 15 consumer clusters. The company is also focusing its attention on its 19 core brands to arrest market share loss notably at the mass end of its portfolio.

Electronics Mart India IPO opens on Tuesday, GMP rises; should you subscribe?

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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. Ahead of the IPO opening, Electronics Mart India shares were commanding a grey market premium (GMP) of Rs 33 per share.

Also Read: Nifty must hold above 17017 for upmove towards 17250; buy, sell these stocks to pocket gains

Angel One: Subscribe

“In terms of valuations, the post-issue P/E works out to 21.8x FY22 EPS (at the upper end of the issue price band) which is low compared to its peer Aditya Vision Ltd. Further, EMIL has better revenue growth (CAGR of 17%) over 2 years, better return on equity and an expansion plan on the cards. Considering all the positive factors, we believe this valuation is at reasonable levels. Thus, we recommend a SUBSCRIBE rating on the issue,” the brokerage said.

Nirmal Bang: Subscribe

“Being the 4th largest consumer durable and electronics retailer in India and the largest in South India, EMI enjoys favorable terms of pricing/margins from brands due to its scale – this is a key advantage. EMI has demonstrated superior performance among all major consumer durable and electronics retailers in India in terms of growth with revenue CAGR of 26% over FY15-20 (pre-covid) and also managed to deliver respectable ROE of 17.4% during the covid impacted year of FY22. We believe EMI is being offered at attractive valuations at PE of 21.8x FY22 & EV/EBITDA of 9.7x FY22. We recommend subscribing to the issue,” Nirmal Bang analysts said in a note.

Choice Broking: Subscribe

“Peer comparison and valuation: At the higher price band, EMIL is demanding an EV/Sales multiple of 0.7x, which is lower than the above peer average. Considering the expected growth in the business, we feel the IPO is attractively priced. Thus we assign a “SUBSCRIBE” rating for the issue,” Choice Broking said in a note.

Also Read: Rupee likely to consolidate in near-term, may fall to 83 level, if 82 breached amid global uncertainty

Hem Securities: Subscribe

“Company is bringing the issue at a price band of Rs 56-59 per share at p/e multiple of 17x on post issue FY22 PAT basis. The company is the 4th largest consumer durable and electronics retailer in India with a leadership position in South India. Company’s scale of operations along with its long-standing relationship with leading consumer brands enables it to procure products at competitive rates. The company being one of the fastest growing consumer durable and electronics retailers with a consistent track record of growth and industry-leading profitability has a business model that provides operational flexibility to create a long-term sustainable footprint. Hence, looking at all the above, we recommend “Subscribe” on the issue.” Hem Securities said in a note.

(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.)

Amid US Fed rate hike, government not averse to weaker rupee vs dollar, says source

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The Indian government is not averse to a weaker rupee in line with global market fundamentals, a senior official told Reuters, at a time when the central bank’s intervention has tried to moderate the depreciation in the Indian currency. The comments come against the backdrop of aggressive rate hikes from the U.S. Federal Reserve, which raised rates by 75 basis points overnight, vowing to battle to beat down inflation.

The Fed’s decision sent the dollar to a new 20-year high and the rupee to a record low of 80.61. “A weaker rupee in line with market fundamentals is not a cause of concern to us,” the government official, who did not want to be named, told Reuters late on Wednesday before the Fed’s rate-hike announcement.

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

The central bank sold a net of $19 billion from its reserves in July alone to prevent the rupee from falling much below 80. Alongside its intervention in the spot market, the RBI’s forward dollar holdings have fallen to $22 billion from $64 billion in April. “India’s current account deficit will hit 4% in the first quarter and remain elevated for the rest of the year. Given the Fed stance, flows will not be adequate for a couple of years. All this points to a structurally weaker rupee,” said Dhananjay Sinha, chief economist at Systematix Shares & Stocks. Sinha said the rupee is overvalued by about 5-5.5% on a real effective exchange rate (REER) basis.

Also read| Rupee likely to depreciate on strong dollar, risk aversion in equity markets; USDINR to trade in this range

India’s current account deficit likely widened to 3.6%, its highest in nine years, in the April-June quarter, driven by soaring global commodity prices and the biggest capital outflows since the 2008 global financial crisis, a Reuters poll found. RBI Governor Shaktikanta Das had said earlier this month that the central bank’s endeavour, amidst the extraordinary global events, has been to anchor expectations and allow the exchange rate to reflect the fundamentals rather than overshoot.

Flipkart Wholesale launches festive sale for B2B customers; check details

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Festive sales: Flipkart Wholesale, the digital B2B wholesale platform of e-commerce platform Flipkart, on Thursday, announced the launch of the Diwali Shopotsav festive season sale for its B2B members from October 25 to November 12. The sale would be live across the 26 Flipkart stores and the Flipkart Wholesale app.

The sale event will provide deals on various items for business customers across categories, including home and kitchen appliances. The platform has planned flash sales to provide various products for one rupee.

In other initiatives to support small businesses, Flipkart runs the Samarth initiative focused on artisans, weavers and small entrepreneurs, which registered a 300 per cent growth in sellers over the last year. According to the company, the program has positively impacted 15 lakh lives.

Also read: Flipkart’s seller count crosses 1.4 million ahead of Big Billion Days sale this festive season

Moreover, sellers under the Walmart Vriddhi Supplier Development Program (Walmart Vriddhi) — a growth and learning platform from the controlling stakeholder of Flipkart, comprising training and support for MSMEs have recorded a year-on-year increase of over 70 per cent in sales through Flipkart’s Big Billion Days Sale, the company had said in a statement. Launched in 2019, Walmart Vriddhi said it has empowered 40,255 MSMEs across the country, providing them with the tools and knowledge needed to thrive in the digital age.

Also read: Indian suppliers, partners to help Walmart export $10B of Indian goods annually by 2027: CEO Doug McMillon

On Wednesday, Amazon Business, the wholesale unit of e-commerce company Amazon in India had also announced offerings for its business customers during its current Great Indian Festival Sale 2023. The company had said that customers on Amazon Business can save up to 28 per cent extra with GST invoice and 40 per cent more with bulk purchase discounts on over 15,000 GST-enabled products.

Subscribe to Financial Express SME (FE Aspire) newsletter now: Your weekly dose of news, views, and updates from the world of micro, small, and medium enterprises

Share Market HIGHLIGHTS: Sensex ends in red, Nifty at 17007 in volatile trade; HDFC twins, Kotak Bank drag

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Share Market News Today | Sensex, Nifty, Share Prices HIGHLIGHTS: Domestic equity market indices BSE Sensex and NSE Nifty 50 ended in the red on Tuesday, after oscillating between gains and losses. BSE Sensex fell 38 points or 0.01 per cent at 57108, while NSE Nifty 50 ended 9 points down at 17007. Stocks of Tata Steel, Titan Company, Kotak Mahindra Bank, State Bank of India, Housing Development Finance Corporation (HDFC), HDFC Bank, Tech Mahindra among others were top Sensex draggers. On the flip side, IndusInd Bank, Power Grid Corporation of India, HCL Technology, Infosys were among top index gainers.

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

15:36 (IST) 27 Sep 2022 Sensex, Nifty end flat with negative bias

BSE Sensex fell 38 points or 0.01 per cent at 57108, while NSE Nifty 50 ended 9 points down at 17007.

14:45 (IST) 27 Sep 2022 Gautam Adani says global turbulence accelerates opportunities for India; China to feel increasingly isolated

Billionaire Gautam Adani on Tuesday expressed confidence in India’s growth story, saying that global turbulence has accelerated opportunities for the nation. “It has made India one of the few relatively bright spots from a political, geostrategic, and market perspective,” Gautam Adani said at the 20th Forbes Global CEO Conference 2022 in Singapore. India is on the path to be the world’s third largest economy by 2030, the billionaire said. Read full story

14:39 (IST) 27 Sep 2022 Bank Nifty in red

Bank Nifty was trading 250 points down around 38300

14:24 (IST) 27 Sep 2022 FY23 CPI inflation estimate at 6.5%

“Inflation prints over the coming months are expected to remain elevated albeit moderating gradually to below MPC’s upper threshold of 6% in Q4FY23. With the MPC expected to continue with rate hikes, the lagged impact of monetary tightening will help curb inflation expectations. Accordingly, we expect the average CPI inflation trajectory to be lower than the RBI’s estimates by around 60 bps in H1CY23. We maintain our FY23 CPI inflation estimate at 6.5%. We retain our view that the MPC will continue with calibrated repo rate hikes towards 6% by end-CY22 with 35 bps hike in the September policy along with the shift in the operating target from SDF to repo rate by end-FY23.”

~Suvodeep Rakshit, Senior economist at Kotak Institutional Equities

14:15 (IST) 27 Sep 2022 Markets volatile; Nifty, Sensex hold in green

Sensex is up 229.00 points or 0.40% at 57374.22, and the Nifty added 69.90 points or 0.41% at 17086.20.

13:33 (IST) 27 Sep 2022 Orient Bell completes expansion at Hoskote plant in Bengaluru

Orient Bell announced completion of expansion at its Hoskote plant in Bengaluru district. This expansion involved capex of around Rs 34 crore well ahead of schedule. With this the total capacity of the company has increased from 32 MSM per annum to 33.8 MSM per annum including 10 MSM per annum of the associated entities. Orient Bell was quoting at Rs 609.35, up Rs 10.45, or 1.74 per cent.

13:15 (IST) 27 Sep 2022 Pharma stocks gain

Nifty Pharma index added 0.5 per cent supported by the Granules India, Abbott India, Dr Reddy’s Laboratories

13:13 (IST) 27 Sep 2022 Crude prices to witness recovery towards USD 80 a barrel for WTI

“Crude oil prices are showing signs of stabilizing after the swift decline towards a nine-month low with markets considering the prospects of further action by the OPEC+ members at their October 5 meeting, as the oil cartel hinted at their discomfort with declining crude prices. Softening of the dollar index and uncertainty over a price cap being imposed by the EU on Russian oil are also underpinning crude oil prices. We foresee prices to witness recovery towards USD 80 a barrel for WTI while for Brent, prices look to rebound towards USD 87 a barrel.”

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

13:12 (IST) 27 Sep 2022 Nifty, Sensex trade flat amid volatility

Benchmark indices were trading higher in the highly volatile market. The Sensex was up 241.24 points or 0.42% at 57386.46, and the Nifty was up 66.70 points or 0.39% at 17083.

12:33 (IST) 27 Sep 2022 RBI Monetary Policy: MPC to hike repo rate by 35-50 bps; global recession may risk growth forecast

We expect a 35-50 bps hike in repo rates in the current monetary policy next week and the projected inflation easing announcements in the coming years could provide a shot in the arm as we have witnessed a sharp fall in commodities prices. A serious global recession could present downside risks to our growth forecast due to which we could also witness volatility in our bond and equities markets. Read full story

12:13 (IST) 27 Sep 2022 Rupee depreciates 9% YTD, may fall below 82 per Dollar; RBI intervention to continue to stall INR fall

The global growth slowdown worries spare none. Over the past week, the Fed removed any remaining doubt about its commitment to getting inflation under control. As a result, both bonds and stocks sold off sharply and the debate is now whether the recent risk rally is a trend reversal or a bear market rally and whether the dollar rally continues towards 121. S&P 500 dropped to its lowest level for 2022 and the Dow and global bond market closed in the bear market. Things didn’t look better for risk markets as globally the central banks turned hawkish amid geopolitical and global recession worries. We are seeing coordinated action from global central bankers to stem US Dollar strength. Read full story

11:47 (IST) 27 Sep 2022 MCX Crude oil October futures may rise to Rs 6800/bbl this week; medium-term fundamentals still remain bearish

Cuba on a path toward Florida, threatening to become the worst storm to hit Tampa in over a century. BP Plc and Chevron Corp said they have shut-in production at offshore oil platforms in the Gulf of Mexico, as Hurricane Ian approaches the region. We expect MCX Crude oil October futures to rise towards Rs.6,800 per bbl for the week. Read full story

11:35 (IST) 27 Sep 2022 Adani Group to invest $100 billion in next 10 years in new energy; here’s what the money will be used to build

Adani Group will invest more than $100 billion of capital in India over the next decade, with 70 percent of the investment for Energy Transition space, said the conglomerate’s founder Gautam Adani at the Forbes Global CEO Conference in Singapore today. Adding to the existing 20GW renewable portfolio of the group, the roughly $70 billion capital infusion will contribute another 45GW of hybrid renewable power generation. The group, under the banner of Adani new Industries, plans to augment the additional GWs over a 1,00,000 hectares of land, which is roughly 1.4 times the size of Singapore.

Read full story

10:56 (IST) 27 Sep 2022 Gold Price Today, 27 Sep 2022: Gold prices recover from Monday’s lows, rates may remain under pressure

Gold Price Today, Gold Price Outlook, Gold Price Forecast: Gold rate and silver rate were trading flat in India on Tuesday on pullback in dollar. On Multi Commodity Exchange, gold October futures were ruling Rs 50 or 0.10 per cent down at Rs 49100 per 10 gram as against the previous close of Rs 49150. Silver December futures were up Rs 48 at Rs 55400 per kg. Globally, yellow metal prices rose as the dollar’s rally paused, but prices held close to a 2-1/2-year low on expectations of further policy tightening by the US Federal Reserve in its efforts to quell soaring inflation. Read full story

10:46 (IST) 27 Sep 2022 Rupee may fall to 82 level against US Dollar

We are within touching distance of the 81.8 target, which may be extended to 82. Meanwhile, we will look for inability to break 81.8 or slippages below 81.55, to ease away from the bullish view, in which case, 81.25 could be expected. Anand James – Chief Market Strategist at Geojit Financial Services

09:55 (IST) 27 Sep 2022 Dish TV shares fall 3%, shareholders reject financial results

Dish TV India Ltd said in a notice to exchanges that its shareholders had rejected four of six resolutions at an annual general meeting on Monday. The firm said its AGM adjourned without assigning a day for a further meeting and the board strength is now down to two members. The resolutions not approved by shareholders include those related to adoption of financial statements for fiscal years 2021 and 2022, appointment of new statutory auditor SN Dhawan & Co, and appointment of Rakesh Mohan as non-executive independent director.

09:53 (IST) 27 Sep 2022 JSW Energy gains around 1% as IndRa upgrades credit rating

India Ratings and Research has upgraded the rating of the company’s long-term facilities to ‘IND AA/Stable’ from lND AA-/Stable’.

09:46 (IST) 27 Sep 2022 Embassy Office REIT slips 1%; Blackstone Inc said to sell 7.7 cr shares

Blackstone Inc is slated to sell 7.7 crore units of Embassy REIT worth Rs 2,650 crore via block deals on September 27, as per reports. The offer price of the block deal stands at Rs 345 per unit.

09:45 (IST) 27 Sep 2022 IT stocks gain

Nifty Information Technology index rose 1 per cent supported by Infosys, HCL Technologies, Wipro

09:28 (IST) 27 Sep 2022 Mahindra Logistics shares soar 4%

Mahindra Logistics shares rose around 4 per cent after the company announced that it has entered into a Business Transfer Agreement with Rivigo Services and its promoter for acquisition of its B2B express business, as a going concern, on slump sale basis. The transaction cost is Rs 225 crore and the acquisition will be completed by November 1, 2022.

09:25 (IST) 27 Sep 2022 All sectoral stocks up in green

All sectors opened with marginal gains. Nifty PSU Bank, Nifty Media, Nifty Metal, Nifty Auto indices climbed up to 1 per cent in trade.

09:24 (IST) 27 Sep 2022 Nifty top gainers, losers

Power Grid Corporation, ONGC, Coal India, Cipla and NTPC were among major gainers on the Nifty, while Hero MotoCorp, Bajaj Auto, Divis Labs, Eicher Motors and Tech Mahindra were the losers.

09:22 (IST) 27 Sep 2022 Petrol, Diesel Price Today, 27 Sep 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 27 September 2022 (Tuesday), keeping costs steady for more than three months now. The petrol rate and diesel rates in Delhi are at Rs 96.72 and Rs 89.62 a litre, respectively. In Mumbai, petrol is retailing at Rs 106.31 per litre and diesel at Rs 94.27 per litre. The last country-wide change in price came on 21 May 2022, when Finance Minister Nirmala Sitharaman announced a cut in excise duty on petrol by Rs 8 per litre and Rs 6 per litre on diesel. Read full story

09:22 (IST) 27 Sep 2022 Markets open in green

Bulls attempted a comeback on Dalal Street as Indian benchmark indices opened firm amid mixed global cues. BSE Sensex was up 224.23 points or 0.39% at 57369.45, and NSE Nifty 50 was up 65.70 points or 0.39% at 17082.

09:10 (IST) 27 Sep 2022 Pre-open: Nifty, Sensex up in green

Benchmark indices are trading firm in the pre-opening session. The Sensex was up 77.60 points or 0.14% at 57222.82, and the Nifty was up 142.20 points or 0.84% at 17158.50.

09:10 (IST) 27 Sep 2022 Rupee opens higher

Indian rupee opened 14 higher paise at 81.48 per dollar on Tuesday against the previous close of 81.62.

09:00 (IST) 27 Sep 2022 FII and DII data

Foreign institutional investors (FIIs) net offloaded shares worth Rs 5,101.30 crore, while domestic institutional investors (DIIs) net bought shares worth Rs 3,532.18 crore on September 26, according to the provisional data available on the NSE.

08:57 (IST) 27 Sep 2022 Markets likely to take a breather from recent corrections

“Markets are likely to take a breather from the recent corrections and start Tuesday’s session on a higher note, tracking recovery in SGX Nifty and select Asian indices even as US markets in overnight trades continued the declining trend. However, markets may continue to wobble intra-day amidst escalating risks of a global recession, driven largely by aggressive monetary tightening around the world to suppress elevated inflation. Also, the recession warning in the US is getting louder with the fact that the 10-year US bond yield is trading at 11-year high and 2-year bond yield at 15-year high.”

~Prashanth Tapse – Research Analyst, Senior VP (Research), Mehta Equities

08:56 (IST) 27 Sep 2022 Markets likely to open in green, Nifty, Bank Nifty support at 16900, 38250 respectively

“Benchmark Indices are expected to open on a positive note today as suggested by trends on SGX Nifty. US markets slid further on Monday led by FED’s aggressive stance against inflation. Asian markets are trading mixed in the early Tuesday trade with Nikkei trading +0.8% up, Chinese markets trading +0.4% up while Korean and Taiwan markets trading in the red zone. Some stock specific actions can be witnessed in stocks such as Mahindra Logistics, Filatex India, Jubilant Foodworks. On the technical front, Immediate support and resistance in Nifty 50 are 16900 and 17400 respectively. Bank Nifty immediate support and resistance are 38250 and 39250 respectively.”

~Mohit Nigam, Head – PMS, Hem Securities

08:53 (IST) 27 Sep 2022 Rupee likely to depreciate further on strong dollar, weak Asian peers; may slip to 82 per USD

The Indian Rupee is expected to depreciate further on strong dollar, weak Asian peers, and risk aversion in markets. Rupee is likely to open at 81.40, and trade in a range of 81.20 to 81.70 for the day, according to forex analysts. The local unit may slip to 82 per dollar soon, they added. In the previous session, rupee tumbled to a record low of 81.66 against the US dollar as various risky assets continued to be pounded by concerns of a looming recession in developed economies that have prompted a worldwide hardening of interest rates. The US dollar has gained against several currencies, including the rupee. An indication of its global strength is being reflected in the Dollar Index which vaulted to a new 20-year high of 114.53.

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08:52 (IST) 27 Sep 2022 RBI can’t go aggressive in selling, and hence rupee can move towards 82.50

” RBI has offloaded tonnes of dollars from its FX kitty and while it does that, it has to buy rupee to sell USD. If RBI keeps selling more on the spot, it will further make the worst adverse and can do severe damage to the economy. Therefore, the RBI can’t go aggressive in selling, and hence the rupee can be seen moving towards 82.00-82.50 levels, further as now importers will buy in a rush and exporters shall get complacent. But no surprise, the rupee was overvalued against its peers and this correction was long overdue. It will be a tough job for RBI to juggle multiple balls at the same time and would be interesting to see what measures are been taken in the upcoming meeting.”

~Amit Pabari, MD, CR Forex Advisors

08:50 (IST) 27 Sep 2022 USDINR may trade between 81.20-82.00

“The rupee touched a new low of 81.65 and is a tad bit lower from another psychological mark of 82.00. Today, the pair is likely to open slightly stronger around 81.40 levels and shall trade in a range of 81.20-82.00 levels. Unlike the previous episodes of RBI’s solid intervention, this time, RBI seems to shy away unwantedly amid the current liquidity crunch. RBI has offloaded tonnes of dollars from its FX kitty and while it does that, it has to buy rupee to sell USD. This passive buying of the rupee, along with being on a hiking spree to tame inflation and follow the Fed, has led to a severe liquidity scarcity in the banking system which went into a deficit of over Rs. 27,000 crores from a surplus of Rs. 8.03 lakh crores.”

~Amit Pabari, MD, CR Forex Advisors

08:38 (IST) 27 Sep 2022 Opportunities for long-term investors

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

~ Alok Jain, smallcase manager & Founder, Weekend Investing

08:03 (IST) 27 Sep 2022 17150 and 17200: Immediate hurdle for the bulls

“The speed with which central banks across the globe are hiking interest rates, investors are worried that slackening growth would push key economies into recession. With the monetary policy decisions on the anvil, rate-sensitive stocks like banking, realty & auto crumbled badly as rate hikes could dent demand going ahead. However, due to markets being in oversold territory, we could witness a quick pullback rally. For traders, the 200-day SMA and 16850 would act as a key support level. On the flip side 17150 and 17200 could be the immediate hurdle for the bulls.”

~Shrikant Chouhan, Head of Equity Research (Retail), Kotak Securities

08:02 (IST) 27 Sep 2022 Sharper bounce back in Indian equities cannot be ruled out

“Taking a glance at the US markets, we will not be surprised to see some relief in key indices there as they have been on a continuous declining spree for a month. Any rebound could certainly provide the much-needed cushion for our domestic markets, and since we are relatively stronger, a possibility of a sharper bounce back cannot be ruled out. As far as supports are concerned, 17000 – 16900 – 16800 is to be seen as a sacrosanct cluster, whereas on the flip side, 17200 followed by 17350 are to be seen as intraday resistances.”

~ Osho Krishan, Sr. Analyst – Technical & Derivative Research, Angel One

08:01 (IST) 27 Sep 2022 Nifty at the critical zone

“The benchmark index Nifty has now entered a cluster of key moving averages i.e. 89-day EMA and 200-day SMA. Also, the previous breakout point coincides around 16800; hence, as of now, we do not expect the correction to extend below these levels. If it gets breached, we may have to revisit our view; but as of now, we would like to believe we are very much close to the sacrosanct supports, and since markets are extremely oversold, it’s advisable to trim existing shorts and start nibbling into quality propositions.”

~ Osho Krishan, Sr. Analyst – Technical & Derivative Research, Angel One

08:00 (IST) 27 Sep 2022 RBI MPC to determine market trend in medium term

“Panic gripped Dalal Street as the risk of recession was on the front and center in financial markets across the globe. The street suspects that the Fed moving so aggressively on rate hikes could cause a recession. The other biggest headwind which stock markets world over facing is inflation. In this backdrop, investors await the RBI MPC’s move on rate-hike decision this Friday, which would determine the trend in the medium term. Technically speaking, the biggest support for Nifty to watch will be 16907 and if the index holds this level, there is a bright chance that Nifty could bounce to 17451 and then at 17727 mark.”

~Prashanth Tapse – Research Analyst, Senior VP (Research), Mehta Equities

07:59 (IST) 27 Sep 2022 Fed officials stare down markets, say inflation top focus

US Federal Reserve officials on Monday sloughed off rising volatility in global markets, from slumping stocks to currency turbulence abroad, and said their priority remained controlling domestic inflation. In recent weeks, Fed officials have been adamant that they will push rates as far as needed to cool off inflation – even at the cost of rising unemployment and a possible recession. The S&P 500 is down 12 per cent just in the month that Fed Chair Jerome Powell delivered a stern message at a central bank symposium in Wyoming about the economic ‘pain’ required to curb the fastest price increases since the 1980s.

07:59 (IST) 27 Sep 2022

Infosys: The IT major on Monday inaugurated its new digital centre in Calgary, Alberta in Canada and said it would create 1,000 jobs over the next two years.

Embassy REIT: Blackstone Inc is reportedly slated to sell 7.7 crore units of Embassy REIT worth Rs 2,650 crore via block deals on Tuesday.

Jubilant FoodWorks: The Dominos operator informed in an exchange filing on Monday that it has acquired a 29.24 per cent stake on a fully diluted basis in Roadcast Tech Solutions Pvt Ltd.

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07:48 (IST) 27 Sep 2022 Will bears drag Nifty to 16800 or bounceback on cards? 5 things to know before market opening bell

After Monday’s rout, the Indian share market may witness a slight bounce back amid mixed global cues. Early trends in the SGX Nifty hinted at a flat to positive opening for NSE Nifty 50 and BSE Sensex. “The RBI’s decision and the outlook would hold great importance post the rate hikes announced by many Central Banks globally following the US Fed aggressive outcome. Even the monthly F&O expiry this Thursday would keep the markets volatile. Fragile global factors and FII outflows would continue to keep the pressure on the market and thus 17000 level would act as a key support level, below which the weakness could intensify,” said Siddhartha Khemka, Head – Retail Research, Motilal Oswal Financial Services.

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07:40 (IST) 27 Sep 2022 Asian markets in green

Shares in the Asia-Pacific were higher on Tuesday after a sharp fall on Monday. The Nikkei 225 in Japan rose 0.65 per cent, and the Topix index gained 0.66 per cent. In Australia, the S&P/ASX 200 added 0.46 per cent. South Korea’s Kospi was marginally up, and the Kosdaq gained 0.64 per cent. MSCI’s broadest index of Asia-Pacific shares outside Japan was about flat.

07:39 (IST) 27 Sep 2022 Wall Street indices extend losses, end in red

Wall Street slid deeper into a bear market on Monday, with the S&P 500 and Dow closing lower as investors fretted that the Federal Reserve’s aggressive campaign against inflation could throw the US economy into a sharp downturn. The Dow Jones Industrial Average fell 1.11 per cent to end at 29,260.81 points, while the S&P 500 lost 1.03 per cent to 3,655.04. The Nasdaq Composite dropped 0.6 per cent to 10,802.92.

07:39 (IST) 27 Sep 2022 SGX Nifty hints at a positive start for Indian equities

Nifty futures were trading 27 points, or 0.16% higher at 17,048 on the Singapore Exchange, signaling that Dalal Street was headed for a positive start.

Three new basmati rice varieties show high yield

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Three new basmati rice varieties, which possess in-built resistance to bacterial blight and blast diseases, thus ensuring lesser usage of pesticides, sown for the first time by farmers of Punjab, Haryana and western Uttar Pradesh this kharif season, have shown promise.

Just a few weeks prior to harvesting, the crop conditions look robust and yields are expected to be higher this season, according to preliminary assessment by Indian Agricultural Research Institute (IARI), Pusa, Delhi.

“Increase in adoptability of new basmati rice varieties amongst farmers in the next couple of seasons, would help recapitulate the country’s basmati rice exports to European Union (EU) which had been hit by several rejection of export consignments due to presence of pesticide residue,” Singh of IARI, an institute affiliated to the Indian Council for Agricultural Research, told FE.

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Exports of aromatic and long grain rice to the EU have declined to 0.2 million tonne (mt) annually from 0.5 mt a few years back.

IARI had provided seeds of new basmati varieties to around 10,000 farmers in key growing regions in three northern states for helping in seed multiplication from the next season onwards. The varieties have been sown in around 5,000 acres in the current kharif season.

“There has not been any pest attack so far and the crop condition of PB1847 variety is far better than other varieties,” Harpreet Singh, a farmer from Sangrur district, Punjab, who has sown the rice variety in 1.5 acre of his 10 acre of land, said.

According to IARI scientists, new varieties would gradually replace the existing basmati rice varieties PB1121, PB1509 and PB6, which are cultivated in more than 90% of the about two million hectares of aromatic and long-grain rice-grown area.

“Existing key varieties over the years have been susceptible to bacterial blight and blast diseases, leading to excessive use of pesticides by farmers, thus increasing reports of rejection of export consignments due to presence of pesticide residue,” Singh of IARI said.

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Scientists say that for managing bacterial blight disease and blast, farmers use antibiotics and fungicides, which is not a sustainable approach

“Newly-introduced basmati rice varieties are expected to hugely reduce pesticide consumption and improve the quality of rice,” Vijay Setia, former president of the All India Rice Exporters Association and an exporter, said.

Rupee likely to depreciate on strong dollar, bond yields; USDINR to trade with positive bias in this range

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

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“Rupee fell to fresh all-time lows on Friday as the dollar continued to strengthen as fears grew that a Fed prescription of raising interest rates to tame inflation will drag major economies into recession.The pound weakened further after the UK govt announced huge debt-financed tax cuts that will boost borrowing, sending UK bond yields vaulting higher in their biggest daily increases in decades. The currency is now down 10% since the start of July and on track for its worst quarter since 2008, pressured by the strong dollar, sluggish British growth and red hot inflation.”

“During the weekend, North Korea fired a ballistic missile towards the sea off its east coast ahead of planned military drills by South Korean and U.S. forces involving an aircraft carrier and a visit to the region by U.S. Vice President Kamala Harris. Also, political instability in China has disturbed the overall economic sentiment and is keeping the Chinese Yuan weighed down. We expect the USDINR(Spot) to trade positive and quote in the range of 81.05 and 81.50.”

Suvodeep Rakshit, Senior economist at Kotak Institutional Equities

“The INR was trading in a range of 79-80 against the USD prior to the September FOMC meeting. After the FOMC meeting, a distinctly more hawkish Fed implied a strengthening dollar. The INR range also had to shift higher which has been supported by RBI interventions. We expect the INR to range between 79-83 for rest of FY23 on the back of USD strength, risks for CAD remaining wider than usual and limited room for lesser FX interventions and let the INR depreciate gradually to address external imbalances. Some of the favourable factors could be lower crude and other commodity prices and FPI debt flows in case of an announcement of bond index inclusion.”

Amit Pabari, MD, CR Forex Advisors

“Indian Rupee tested all-time-low on Friday. After hitting a low of 81.22, it was seen recovering back to 80.77, probably RBI hammered a few yards of USD. But still, it was seen closing at 80.98 as importers rushed to cover USD. Amid a liquidity deficit of more than 21,000 crores in the banking system, RBI will have lesser room to step in and curb rates and volatility. Despite the deficit, RBI might have used its reserves as FX storage fell by another $5.22 billion to $545.65 billion.”

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“The upcoming RBI’s monetary policy, which is due on the 30th Sep will be important as the announcement on the repo rate hike, cut in CRR, and changes in stance will be watchful. Nonetheless, currency market players want an early dose of injection to calm down the shaky nerves. However, further strength in the USD globally could not keep the Rupee trading at an exceptionally fine. Overall, we expect the USDINR pair to remain volatile with downside support at 80.50 and strong bullish momentum could not rule out 82.50 levels on the upside,” Pabari added.

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