Sensex ends 1000 pts higher, Nifty reclaims 17,000; Bank, Metal shine | Mint – Mint

Asian market did not have a bright day as they tailed the overnight loss of Wall Street. Nikkei registered its biggest monthly drop since March 2020, while Mainland China remained subdued due to underwhelming factor activity. Hong Kong remained flat, however, European stocks are trading in the green.   

30 Sep 2022, 03:43:21 PM IST

Indices bet on milder hikes in the future. Sensex and Nifty gain 1000 and 275 points, respectively.

Benchmark indices soared around 2% on Friday on the back of RBI increasing the repo rate by 50 basis points to 5.9%. Analysts said that markets are drawing comfort from expectations that the RBI may be nearing the end of the rate hike cycle in India.

Sensex gained around 1000 points to close at 57,426. Nifty regained its 17,000 mark to close at 17,094, a gain of around 275.

Bank and Finance stocks led the rally and jumped handsomely in today’s session. All indices ended in the green but FMCG was somewhat in the flat territory.

Hindalco soared 5%, and Bharti Airtel and IndusInd Bank 4% each. Bajaj twins also ended with decent gains. Adani Enterprise on its first day in Nifty 50 lost ground.

Japanese stocks fell sharply on Friday, posting their biggest monthly drop since the Covid-19 pandemic first rocked markets 2-1/2 years ago, tracking overnight Wall Street losses. The Nikkei share average closed down 1.83%.

China stocks edged lower on Friday ahead of a week-long holiday as subdued factory activity survey weighed on traders’ sentiment.

The blue-chip CSI 300 Index and the Shanghai Composite Index both closed down 0.6%. The Hang Seng Index edged up 0.3%.

European stock indexes rose on Friday, the last day of a painful quarter that saw investors worried about the impact of aggressive policy tightening measures on economic growth. The continent-wide STOXX 600 index was up in morning trading.

Sensex at Close

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Sensex at Close
30 Sep 2022, 03:28:41 PM IST

Govt could consider easing export restrictions to support rupee: Report

With the rupee depreciating to a record low level against the US dollar, the government could also consider easing some of the export restrictions imposed earlier this year, said QuantEco Research in a note. The government imposed a 15% export duty on a range of finished steel products to check elevated prices. It also prohibited the export of wheat in May to check domestic availability. (Read More)

30 Sep 2022, 03:22:43 PM IST

Gold gains ₹406; Silver jumps ₹905

Gold price in the national capital rose by 406 to 50,722 per 10 grams on Friday amid a rally in the international yellow metal prices, according to HDFC Securities.

In the previous trade, the precious metal had closed at 50,316 per 10 grams.

Silver also jumped by 905 to 57,436 per kilogram from 56,531 per kg in the previous trade.

“Along with the COMEX spot gold prices, domestic gold prices gained for the second day in a row as the dollar index and US treasury bond yield pullback from a recent high,” said Dilip Parmar, Research Analyst at HDFC Securities. (PTI)

30 Sep 2022, 02:57:30 PM IST

Nifty reclaims 200 simple moving average at 16,983 post RBI policy

Benchmark share indices extended gains to 1.8% each post the Reserve Bank of India’s decision to hike rates along expected lines , with the Nifty reclaiming the 200-day simple moving average (SMA) at 16983.

HDFC Bank, Tata Steel, Bajaj Finserv, IndusInd Bank and Hindalco contributed most to the Nifty gains, trading 3-5% higher. (Read More)

30 Sep 2022, 02:56:09 PM IST

Analysts said that markets are drawing comfort from expectations that the RBI may be nearing the end of the rate hike cycle in India.

Commerce and Industry Minister Piyush Goyal on Friday said the ministry is working on a law to decriminalise certain provisions to promote ease of doing business.

A bill in this regard is expected to be introduced in the forthcoming winter session of Parliament, he added.

The minister urged the industry to “quickly” give feedback on reducing compliances and decriminalising unnecessary sections.

“We have focused on ease of doing business…We continue to reduce the compliance burden for our businesses…Give us, feedback quickly because, in the winter session, we are proposing to come out with a very holistic amendment to the laws related to businesses to ease the burden, and reduce compliances,” Goyal said while addressing PHDCCI’s Annual Session 2022. (PTI)

30 Sep 2022, 02:17:34 PM IST

Tokyo shares end lower, extending global rout

Tokyo stocks closed lower on Friday, extending falls on Wall Street where higher US Treasury yields, inflation and rising recession fears persisted.

The benchmark Nikkei 225 index lost 1.83%, or 484.84 points, to end at 25,937.21 — its lowest level since July 1 — while the broader Topix index dropped 1.76%, or 32.86 points, to 1,835.94.

Many investors also refrained from making aggressive moves as the financial half-year comes to an end in Japan. (AFP)

30 Sep 2022, 02:15:40 PM IST

Aviva Plc becomes majority shareholder in its India joint venture

Aviva Plc on Friday said it has acquired an additional 25% stake from Dabur Invest Corp. in its joint venture in India, Aviva Life Insurance Company India Ltd (ALICIL). Following this, Aviva’s shareholding has increased to 74% in ALICIL.

Aviva’s shareholding in its India venture now stands increased at 74%. This will increase its economic and operational control as it continues to transform the performance of the business. (Read More)

30 Sep 2022, 02:03:00 PM IST

Metal Index continues to shine and adds more than 2% in today’s trading.

Metal Index

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Metal Index
30 Sep 2022, 01:48:12 PM IST

Multibagger specialty chemical stock rallies to hit record high, up 107% in a year

Shares of Gujarat Fluorochemicals Ltd (GFL) rallied to hit a record high of 4,025 apiece on the BSE in Friday’s trading session as the stock rose about a per cent intraday. The counter has been in upward trend since the last few sessions and has gained over 8% in the last five trading sessions. (Read More)

30 Sep 2022, 01:46:36 PM IST

Airox Technologies files ₹750-cr IPO papers with Sebi

Medical equipment manufacturer Airox Technologies has filed preliminary papers with capital markets regulator Sebi to raise 750 crore through an initial public offering (IPO).

The IPO is entirely an offer-for-sale (OFS) of equity shares by promoters — Sanjay Bharatkumar Jaiswal and Ashima Sanjay Jaiswal, according to the draft red herring prospectus (DRHP).

Under the OFS, Sanjay and Ashima will offload equity shares worth 525 crore and 225 crore respectively.

Airox Technologies, manufacturer of (Pressure swing adsorption) oxygen generator, has a market share of 50-55 per cent, in terms of operational private hospital PSA medical oxygen market, as of fiscal 2022, according to the draft papers. (PTI)

30 Sep 2022, 01:25:25 PM IST

Tata Steel’s merger plan to yield gains over long term: Fitch Ratings

Rating agency Fitch Ratings on Friday said it expects Tata Steel Limited’s plan to merge with seven units to result in higher Ebitda or earnings before interest, taxes, and depreciation from procurement, and marketing synergies, and lower royalty payments.

Tata Steel had announced on 22 September its board has approved its merger with six subsidiaries and one associate, using share swaps instead of cash. (Full Story)

30 Sep 2022, 01:04:29 PM IST

Bajaj Finserv leads the financial stocks rally, gains more than 3%

Bajaj Finserv

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Bajaj Finserv
30 Sep 2022, 12:59:47 PM IST

UK economy averts immediate recession with 0.2% expansion

The UK government has been spared the prospect of a summer recession after a surprise increase in second quarter GDP.

The 0.2% growth in the three months to June was a sharp improvement on the previous estimate of a fall of 0.1% but was caused by revisions to earlier data, the Office for National Statistics said on Friday. Output was still below pre-pandemic levels, making the UK the only Group of Seven not to have fully recovered.

The current account deficit also improved, to £33.8 billion ($37.6 billion) from a downwardly revised £43.9 billion, in the first three months of the year, beating forecasts.

The expansion in the second quarter means the economy is not in a technical recession, as many thought. (Bloomberg)

30 Sep 2022, 12:42:19 PM IST

RBI admits it will miss inflation target but remains overly optimistic on growth

Sometimes monetary policy can just turn out to be a mere formality, like was the case earlier today. The Reserve Bank of India (RBI) increased the repo rate or the interest rate at which it lends to banks, by 50 basis points to 5.9%. One basis point is one hundredth of a percentage.

The RBI cut the economic growth forecast for 2022-23 to 7%, with the growth in the second half of the year expected to be slower than the first half. (Full Story)

30 Sep 2022, 12:20:33 PM IST

RBI mulling to adopt “expected loss” approach for banks’ loan provisioning

Governor Shaktikanta Das on Friday said the Reserve Bank is mulling to adopt the “expected loss” approach for loan provisioning.

At present, the banks follow the “incurred loss” approach, where money is set aside after an asset turns sour.

Das called the proposed transition a “more prudent and forward looking approach”, and said that a discussion paper will be released soon for stakeholders to comment on the same.

“We will release a discussion paper on ‘expected loss-based approach’ for loan loss provisioning by banks,” the Governor said after announcing the bi-monthly policy review.

He said the approach to make provisions or set aside money on the probable losses is a globally accepted prudent norm. (PTI)

30 Sep 2022, 12:02:53 PM IST

Noon Update: Indices gain on RBI 50-bps rate hike announcement. Sensex up 550 points and Nifty 165

Bank index rallies with Hindalco, HDFC Bank and Kotak Bank gaining in the first half of trading.

Sensex at Noon

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Sensex at Noon
30 Sep 2022, 11:59:59 AM IST

More views on RBI rate hike by 50 bps from Avener Capital, Yes Securities and Reliance Securities 

Sriram Iyer, senior research analyst – currency & commodity at Reliance Securities: The Rupee appreciated after RBI raised the repo rate by 50 basis points to 5.90% from 5.40% and 5 members out of 6 voted for 50 bps.

Decision widely expected and no negative surprises has supported the Rupee and stock markets strength after the announcement.

With regards to the policy, the RBI governor said that persistent high inflation needs further withdrawal of accommodation.

However, he added that consumer price-based inflation remains elevated and possible will remain sticky and we believe that persistence of high inflation could necessitate further policy changes in the future.

RBI has projected CPI Inflation at 7.1% in Q2, 6.5% in Q3 and 5.8% in Q4 of FY 2023.

However, appreciation bias could be limited fight as the Fed will continue to hike another 125 bps till the end of the year as the central bank continues to press ahead to cool stubbornly high inflation.

Moreover, domestic inflation will continue to remain sticky, which will prompt the central bank to remain hawkish on rates with the final terminal rate close to 6.50% to 6.75% till FY23. 

So, support for the USDINR spot pair is 81.20 to 80.80, while resistance is at 82.00 levels.

Amar Ambani, head – institutional equities, Yes Securities: RBI’s MPC expectedly voted for a 50bps hike, replicating the endeavour of global central banks to protect their currencies from prevalent volatility. The central bank also retained its stance on withdrawal of accommodation, stating that liquidity conditions will remain accommodative given the higher government spending during H2 FY23. On inflation projections, the CPI forecast for FY23 is retained at 6.7%. Though falling Oil price is a positive, high Food prices pose an upside risk to the inflation forecasts. On the growth front, RBI downgraded the FY23 GDP projection to 7% from the earlier estimate of 7.2%. Nevertheless, the central bank remains confident of demand remaining supported during H2, thanks to stable private consumption, while rural demand is also picking up. On the future interest rate moves, though RBI’s stance is more driven by domestic factors, the current landscape of aggressive rate hikes by the Fed and ensuing rupee weakness will compel RBI to closely follow the interest rate moves in the US. RBI will likely raise the repo rate by 35bps in September.

Rahul Shresth – vice president at Avener Capital: The rate hike by the MPC was on expected lines. The rate hikes by the fed and soaring food and energy prices pose a challenge to emerging economies including India. Withdrawal of the accommodative stance is an indication of the fact that the bigger challenge for the RBI is controlling inflation and keeping it within the tolerable range.

30 Sep 2022, 11:47:18 AM IST

Housing sales up 41% at 88,234 units in Jul-Sep in 7 cities

Sales of residential properties increased 41 per cent to 88,234 units in July-September this year across seven major cities, property consultant Anarock said on Friday.

The housing brokerage firm released its quarterly data of seven major cities — Delhi-NCR, Mumbai Metropolitan Region (MMR), Chennai, Kolkata, Bengaluru, Hyderabad and Pune.

As per the data, housing sales rose 41 per cent to 88,234 units in the third quarter (July-September) of 2022, from 62,799 units in the year-ago period. New launches increased 45 per cent to 93,490 units from 64,560 units in these seven cities. (PTI)

30 Sep 2022, 11:43:54 AM IST

China manufacturing weak, adding to economy pressure

Growth in Chinese factory activity was weak in September, export orders fell and employers cut jobs, two surveys showed Friday, adding to pressure on lackluster economic growth.

A monthly purchasing managers’ index released by business news magazine Caixin fell to 48.1 from August’s 49.5 on a 100-point scale on which readings below 50 indicate activity contracting. A separate PMI by an official industry group rose to 50.1 from 49.4.

“The surveys suggest that China’s economy continued to lose momentum,” said Zichun Huang of Capital Economics in a report.

That adds to complications for Chinese leaders who are trying to reverse an economic slump after growth fell to 2.2% in the first six months of 2022, less than half the 5.5% official target. (PTI)

30 Sep 2022, 11:35:33 AM IST

Hindalco shines in today’s trading, gains 3%

Hindalco

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Hindalco
30 Sep 2022, 11:27:09 AM IST

Sterling recovers with euro as UK fiscal angst recedes, European inflation accelerates

Sterling and the euro rose to fresh one-week highs on Friday, buoyed by the Bank of England’s moves to calm markets and hawkish signals from the European Central Bank.

The British currency was headed for its best week against the U.S. dollar in 2 1/2 years as the BoE waded into the debt market to buy gilts for a second day on Thursday, buoying UK yields.

Heated German and Dutch consumer inflation data also served as a reminder that the job of the ECB, BoE and other central banks is not done, with the figure for the wider 19-country euro zone due later on Friday.

The pound touched $1.1222 early in the Asian session, taking it very close to erasing all of the precipitous losses in the aftermath of the new government’s so-called mini budget last Friday. (Reuters)

30 Sep 2022, 11:10:33 AM IST

Bank index leads the green run, adds more than 1% after the RBI rate hike decision

Bank Index

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Bank Index
30 Sep 2022, 11:04:12 AM IST

LKP Securities and Geojit Financial Services on RBI rate hike 

Ajit Kabi, Banking Analyst at LKP Securities: The 50bps hike in policy rate to 5.9% was expected. However, the inflation estimates were the key monitorable. The inflation was expected to be at 6% for the second half of the financial year and GDP growth is expected to be at 7% for the entire fiscal.

Factoring the daunting challenge of inflation, the repo hike is likely to be a welcome move. The rate hike was earlier anticipated and expected to be in the indices price.

Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: The dominant theme in economic and market discussions these days is India’s resilience and outperformance in a weakening global economy and bearish equity markets. The RBI governor’s comments today is a reaffirmation of this ‘India resilient’ theme. It was this positive commentary on India’s growth impulses and projection of 7% GDP growth with 6.7% inflation for FY 23 that has come as a positive even while the policy announcements relating to rates were on totally expected lines. The Governor’s confident statement that CAD can be financed comfortably even with crude at $100 for the rest of the year is reassuring. In brief, the positive commentary is market positive.

30 Sep 2022, 10:53:15 AM IST

RBI forex reserves “umbrella” remains strong, said Das

Rupee movement orderly against US dollar; depreciated only 7.4% this year till September 28, and has fared better than many other currencies. RBI does not have a fixed exchange rate for rupee; intervenes in market to curb excessive volatility and RBI forex reserves “umbrella” remains strong, said Das.

30 Sep 2022, 10:51:46 AM IST

India reports 3,947 Covid cases; active cases further decline

As per the ministry, active cases in the country has now declined to 39,583 from the earlier 40,750.

The active cases comprises 0.09% of the total infections, while the national COVID-19 recovery rate increased to 98.73 per cent, the health ministry said.

The death toll climbed to 5,28,629 with 18 more deaths, including nine fatalities reconciled by Kerala, the data updated at 8 am stated.

The daily positivity rate was recorded at 1.23% while the weekly positivity rate was 1.44%. (Read More)

30 Sep 2022, 10:30:20 AM IST

The global economy is in the eye of a new storm: RBI

“We are faced with another storm of aggressive monetary tightening globally. The global economy is in the eye of a new storm,” said Das in a virtual briefing, adding the move is causing volatility and risk aversion in the financial markets.

30 Sep 2022, 10:29:27 AM IST

India’s Q1 balance of payments surplus surprise an anomaly – economists

India’s balance of payments unexpectedly was in surplus in the April-June quarter, even as the current account deficit widened, but economists said this positive reading was likely an anomaly.

The Reserve Bank of India data on Thursday showed the country’s balance of payments came at a surplus of $4.6 billion for the quarter, compared to a deficit of $16 billion in the preceding quarter.

The country’s capital account registered a surplus due to a sharp increase in banking capital, contributing to a surplus in balance of payments (BoP), said Suvodeep Rakshit, senior economist at Kotak Institutional Equities.

Robust services revenue led to CAD coming in less than forecasts, although the $23.90 billion figure was still at a near decade-high, Rakshit noted.

The relief in the BoP data may not last, said economists. (Reuters)

30 Sep 2022, 10:28:36 AM IST

US sanctions India-based petrochemical company over Iran connections

The US government claims that Tibalaji Petrochem Private Limited, an Indian petrochemical company, bought petrochemical materials, such as base oil and methanol, which were arranged through Triliance for shipping to China.

The United States is dedicated to severely limiting Iran’s illegal oil and petrochemical sales, according to Brian E. Nelson, Under Secretary of the Treasury for Terrorism and Financial Intelligence. The United States will keep enforcing its sanctions against the sale of Iranian petroleum and petrochemical products as long as Iran rejects a mutual return to the full implementation of the Joint Comprehensive Plan of Action, Nelson added. (Read More)

30 Sep 2022, 10:21:24 AM IST

RBI has lowered FY23 GDP growth forecast and says inflations will remain elevated

The RBI has lowered FY23 gross domestic product (GDP) growth forecast to 7% from 7.2%, said Governor Das.

The recent correction in global commodity prices if sustained may ease cost pressures in coming months. Today inflation is hovering around 7% and we expect it to remain elevated at 6% in the second half of the year: Governor Shaktikanta Das. RBI has maintained consumer price index (CPI) inflation forecast for FY23 at 6.7%.

30 Sep 2022, 10:11:12 AM IST

RBI has hiked the repo rate for the fourth time in a row, by 50 bps to 5.9% with immediate effect

The standing deposit facility rate and the marginal standing facility rate were also increased by the same quantum to 5.65%and 6.15%, respectively

30 Sep 2022, 10:05:34 AM IST

Ashika Stock Broking and Angel One on today’s market: Avoid aggressive bets

Tirthankar Das, technical & derivative analyst, retail, Ashika Stock Broking: On the technical front, Nifty formed a long bear candle on the daily chart and has been trading below the all-important 200dma at 16880 indicating continuation of corrective bias. The formation of lower high-low signifies prolonging of corrective bias. Therefore for a pause in the ongoing downside momentum for the Index, it needs to provide a decisive close above 17200 in order to buck the trend else corrective bias might continue though Index presently trading in oversold price conditions. Presently a trader needs to show patience and need to avoid trading aggressively in the market as the risk of a bare minimum correction of 38.2% of the entire rally from 15,183 to 18,096 comes around 16990 followed by 50% correction at 16650 remains. During the day index is likely to open on a negative note due to weak global cues. Formation of lower high- lower low signifies corrective bias. Hence, use intraday pullback towards 17050-17100 for creating short position for the target of 16650.

Sameet Chavan, chief analyst-technical and derivatives, Angel One Ltd: Technically speaking, the overall sell-off in the broader market has dampened the sentiments, and the 17000 mark seems to be a significant hurdle for the index. The technical structure looks very disruptive, with all indicators signaling the trend southwards. Until we decisively claim to the 17000 mark, a sense of tentativeness could be sensed in the comparable period. As far as levels are concerned, the unfilled gap of 16750-16650 is expected to cushion any further correction, while on the higher end, 17000 followed by 17200 is the crucial hurdle for the benchmark index.

Going forward, the RBI monetary policy is lined up today; hence, traders should keep a close eye on the event. Apart from this, global development should also not be overlooked, and therefore, one needs to avoid aggressive bets and focus on stock-specific actions.

30 Sep 2022, 09:58:51 AM IST

Power Grid continues to shine, gains 4% in early trading

Power Grid

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Power Grid
30 Sep 2022, 09:53:58 AM IST

Another Adani group stock in Nifty 50 index from today, replaces Shree Cement

Adani group stock Adani Enterprises today entered Nifty 50 index replacing Shree Cement from the 50-stock index. This is the second Adani group company that has entered the benchmark index, the most tracked stock index in India. Adani Enterprises is the second Adani group company that has been included into Nifty 50 index in May 2022. Adani Ports and Special Economic Zone was the first Adani group stock that entered India’s benchmark index. (Read More)

30 Sep 2022, 09:39:42 AM IST

Jewelry stock fixes record date for 4:1 bonus share issue. Details here

The board of directors of Anshuni Commercials Limited — a company that deals in diamond cutting, jewelry & precious metals, has fixed record date for bonus share issuance. As per the information available on BSE website, the jewelry company has fixed Friday, October 7, 2022 as ‘Record Date’, for the purpose of ascertaining the eligibility of shareholders entitled for issuance of bonus shares by the Company. This means, the stock will trade ex-bonus on 6th October 2022. The company board has already considered and approved bonus shares in the ratio of 4:1, which means one bonus share will be rewarded for one equity share held by shareholders of the company. (Read More)

30 Sep 2022, 09:27:19 AM IST

IT index sheds at open. Infosys and Tech Mahindra drags the index

IT Index

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IT Index
30 Sep 2022, 09:25:27 AM IST

India and California agree to collaborate on zero-emission vehicles

India has entered into a collaboration with the US state of California for research and innovation in the field of zero-emission vehicles to spur the development of its nascent EV industry and address climate risks.

California has the world’s most advanced zero-emission vehicle (ZEV) policies. It has an ambitious 100 per cent ZEV mandate by 2035. As part of the collaboration, the University of California, research institute Davis Institute of Transportation Studies, established a new India ZEV Research Centre.

The California-India ZEV Policy programme is aimed at supporting ZEV uptake in India, spurring the development of an EV industry in India and contributing to India’s industrial growth. (PTI)

30 Sep 2022, 09:24:21 AM IST

Sensex sheds around 150 points at open and Nifty 50 points. IT stocks are under pressure in early trading

Sensex at Open

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Sensex at Open
30 Sep 2022, 09:14:12 AM IST

Govt in debut green bonds plans to raise ₹16,000 crore

India plans to issue 16,000 crore ($2 billion) of sovereign green bonds in the fiscal year ending March, as it seeks cheaper funding to meet renewable energy targets.

The government will provide details of the planned green debt issuance for the year later, according to a statement from the nation’s finance ministry on the second half borrowing plan released on Thursday. (Read More)

30 Sep 2022, 09:08:36 AM IST

Japan’s Nikkei on course for worst month since March 2020

Japanese stocks were set on Friday for their worst month since the COVID-19 pandemic first rocked markets two and a half years ago, after falling 1.67% in the morning session.

The Nikkei share average dropped below the 26,000 psychological barrier, shedding 6.19% so far in the month – its biggest decline since March 2020. The broader Topix fell 1.45% and also looked set for its worst month since March 2020.

Japanese markets tracked losses on Wall Street, with all three major U.S. stock indexes falling sharply overnight on heightened fears of a recession and a report that Apple Inc has cancelled a planned boost in iPhone 14 production. (Reuters)

30 Sep 2022, 09:05:36 AM IST

Cryptocurrency prices today: Bitcoin, ether fall while XRP, Solana gain

In cryptocurrencies, Bitcoin price today, which is the world’s largest and most popular cryptocurrency, was trading almost flat at $19,407. The global crypto market cap today remained below the $1 trillion mark, as it was flat in the last 24 hours at $985 billion, as per CoinGecko. (Read More)

30 Sep 2022, 09:04:45 AM IST

Sensex in red at the pre-open session on Friday as investors keenly wait for the RBI interest rate disclosure

Sensex at Preopen

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Sensex at Preopen
30 Sep 2022, 08:53:18 AM IST

Pre-market views for today from Reliance Securities and Geojit Financial Services

Dr. V K Vijayakumar, chief investment strategist at Geojit Financial Services: The market trend in the US and Europe continues to be bearish. Markets are increasingly discounting the likelihood of a US recession and a sharp slowdown in global growth in 2023. India too will be impacted by a sharp global growth slowdown but will be one of the least impacted since domestic growth impulses continue to be strong. Today’s MPC rate action – most likely a 50 bp rate hike – will not impact equity markets since this is already discounted by the market.

In the near term, the market will be influenced by the Q2 results that will start coming soon. Results of financials particularly large banks and fintech companies, autos particularly passenger and commercial vehicles and select 2-wheelers, IT, telecom, paints and adhesives and pharma will be good and the market might respond positively to them.

Investors may consider adding weightage to defensives like pharma and FMCG in this volatile environment.”

Mitul Shah – head of research at Reliance Securities: Indian equities closed lower ahead of RBI’s MPC policy announcement. The Nifty declined 0.2%, while broader markets outperformed the main indices as Nifty Mid Cap and Nifty Small Cap rose by 0.5% and 0.6% respectively. Nifty Healthcare and Nifty Pharma were the major gainers which were up 1.4% and 1.3% respectively. Nifty IT and Nifty Fin Service were the primary laggards which plunged 0.9% and 0.5% respectively. The market is factoring 50 bps rate hike by the RBI. The US and Europe are all headed towards a recession, while India in all likelihood to prevent it very well. The inflation has remained above the upper tolerance band of RBI for the eighth straight month and expected to remain sticky at ~7.5% in FY23, driven by increases in food prices. The rise in repo rate coupled with inflation is likely to impact the market in the near term. Going forward, the key events for the markets include – inflation forecast, Comments on external balance sheet, the tone of the policy statement and path on rate normalization.

The markets are likely to see gap down opening, SGX nifty is down 100 points compared to previous spot Nifty closing. Asian Markets are trading in red; Nikkei is down 1.7% while Heng Seng is down 0.8%.

30 Sep 2022, 08:41:29 AM IST

Oil set for first quarterly drop since 2020 as macro mood sours

Oil headed for its first quarterly loss in more than two years as escalating fears over a global economic slowdown and a stronger dollar overshadowed the prospect for tightening supply.

West Texas Intermediate futures traded near $81 a barrel and are down 23% this quarter. Federal Reserve officials reiterated Thursday that they will keep hiking interest rates to restrain high inflation, raising concerns about demand. The dollar hit a record this month, adding to bearish headwinds.

The economic recovery in China continues to be challenged by lockdowns in major cities as well as an ongoing property market downturn. Factory activity struggled in September, while services slowed, data released Friday show. (Bloomberg)

30 Sep 2022, 08:35:45 AM IST

Stocks to Watch: Hero MotoCorp, Adani Power, JSW Energy, IOC, LIC, Adani Green, Lupin, Mothersons Sumi Wiring, Blue Dart, Indigo 

All eyes will be on RBI as it announces its current monetary policy on Friday. Investors expect a 35-50 bps hike in repo rates in the CMP as inflation remains the main goal for the central banks across the globe. (Full Story)

30 Sep 2022, 08:34:06 AM IST

RBI Monetary Policy: Another rate hike on the cards as MPC decision today. Check the link for live updates

The decision of RBI Governor Shaktikanta Das headed six-member Monetary Policy Committee (MPC) will be announced on Friday. The Reserve Bank of India (RBI) is expected to hike interest rate for the fourth time in a row to tame inflation and improve foreign capital inflow to arrest declining value of rupee against the US dollar. (Live Updates)

30 Sep 2022, 08:16:58 AM IST

Airlines under Tata umbrella rivals for now: Vistara CEO

Full-service airline Vistara will continue to view other airlines under the Tata umbrella as competition until there is a decision from its shareholders on the future of its identity, chief executive officer Vinod Kannan said. After seven years of operations, Vistara, a joint venture of Tata group and Singapore Airlines, recently secured the No.2 spot in the domestic aviation market, with a 9.7% market share in August. Edited excerpts from an interview

30 Sep 2022, 08:07:19 AM IST

BNP Paribas India Auto EV Report | BUY on TATA Motors, Maruti Suzuki, Samvardhana Motherson Int’l, M&M, Eicher Motors & Ashok Leyland

Key Takeaways from Kumar Rakesh, Analyst – IT & Auto, BNP Paribas India on Indian Auto and EV sector:

2W customers ready for EV adoption

· What the disruptions by Tesla and Netflix teaches us

· Investment case for 2W OEM stocks tough; prefer domestic PV OEMs

· Clean energy mobility critical for India to reduce carbon emission

· Most state governments are aiming to convert commercial fleets into 100% electric over the next 10 years

Key trends in E2Wav

· We see 30% of the 2W industry turning electric by 2030; the pace of incentive withdrawal presents an upside/downside risk

· Maharashtra tops Indian states in e2W sales with a volume share of nearly 18%, largely driven by incentives given out by the state government, followed by earlier leader Karnataka in second spot

· EV penetration within scooters has reached close to 10%, as of August 2022pa

Key trends in E3W

· We see 75% of the 3W industry turning electric by 2030 and entry of market leader Bajaj Auto as the next catalyst for 3W EV adoption

· Uttar Pradesh is the dominant market for the segment, accounting for more than one-third of total electric 3W vehicles getting registered consistently

Key trends in EPV

· EPV at a nascent stage, we see inflection after FY25 and EV penetration reaching 15% by 2030

· Maharashtra leads sales with c33% volume market share in FYTD23 and has close to 2% EV penetration in the segment

Charging infrastructure – a lot needs to be done

· Indian states on average have less than 0.1 charging point per 100km of road length, and need significant investment to improve the charging infrastructure

30 Sep 2022, 08:04:04 AM IST

CCI approves acquisitions of Diliigent Power and DB Power by Adani Power

Fair trade regulator Competition Commission of India (CCI) on Thursday approved the acquisition of 100 per cent equity of Diliigent Power and DB Power by Adani Power Ltd.

The proposed combination relates to the acquisition of the 100 per cent of the share capital and economic rights of Diliigent Power and DB Power by Adani Power Ltd, according to an official release.

In August, Adani Power said it will acquire DB Power Ltd, which owns and operates a 2×600 MW thermal power plant at Janjgir-Champa district in Chhattisgarh, at an enterprise value of 7,017 crore for cash consideration.

Diliigent Power is primarily engaged in the activities of a holding company.

DB Power operates a coal-based thermal power plant with an installed capacity of 1,200 MW per hour in Chhattisgarh. (PTI)

30 Sep 2022, 07:49:31 AM IST

Hero MotoCorp to invest USD 60 mn in US-based Zero Motorcycles to develop e-bikes

Hero MotoCorp on Thursday said it will invest USD 60 million (about 490 crore) in US-based Zero Motorcycles to jointly develop electric motorcycles.

The country’s largest two-wheeler maker said it is finalising a collaboration agreement with the California (US)-based manufacturer of premium electric motorcycles and powertrains.

The company’s board has approved an equity investment of up to USD 60 million in Zero Motorcycles, it added.

Zero Motorcycles is the global leader in electric motorcycles and powertrains. Its consolidated revenue for 2021 stood at USD 60.7 million. (PTI)

30 Sep 2022, 07:48:22 AM IST

Market wrap for Thursday: View from Angel One, LKP Securities, Geojit Financial Services 

Osho Krishan, sr. analyst – technical & derivative research, Angel One Ltd: Technically speaking, the overall sell-off in the broader market has dampened the sentiments, and the 17000 mark seems to be a significant hurdle for the index. The technical structure looks very disruptive, with all indicators signaling the trend southwards. Until we decisively claim to the 17000 mark, a sense of tentativeness could be sensed in the comparable period. As far as levels are concerned, the unfilled gap of 16750-16650 is expected to cushion any further correction, while on the higher end, 17000 followed by 17200 is the crucial hurdle for the benchmark index.

Going forward, the RBI monetary policy is slated in the coming session; hence, traders should keep a close eye on the event. Apart from this, global development should also not be overlooked, and therefore, one needs to avoid aggressive bets and focus on stock-specific actions. 

Rupak De, senior technical analyst at LKP Securities: Nifty remained highly volatile before ending the session on a negative note. The index failed to capitalize on the early gain as it faced tough resistance at the 17000 levels leading to closing around 16800. Going ahead, 16800 is likely to act as crucial support any drift below 16800 on a sustained basis may attract selling pressure in the market. On the lower end, support is visible at 16640. On the higher end, 17050 is likely to remain a strong resistance.

Vinod Nair, head of research at Geojit Financial Services: The initial upticks of the domestic market were short-lived due to its weak global peers and declining rupee. As the yield differential between India and the US fell to a multi-year low of 348 bps, foreign investors are still departing from the Indian market. Amid the ongoing global trend of aggressive rate hikes, markets are braced for a 50 bps increase by RBI. Investors eagerly await the central bank’s intervention to aid bank liquidity, curb currency depreciation, and provide updates on its monetary stance & GDP outlook. 

30 Sep 2022, 07:44:03 AM IST

Buy or sell: Vaishali Parekh recommends 2 stocks to buy today — Sept 30

On account of weak global sentiments and slowdown concern, Dalal Street extended its losing spree on seventh straight session on Thursday. NSE Nifty corrected 40 points and closed at 16,818, Sensex shed 188 points and finished at 56,409 while Nifty Bank index went off 112 points and closed at 37,647 levels. Among sectors metals, healthcare and FMCG gained the most while power, IT and banks fell the most. However, mid-cap and small-cap indices gained 0.31 per cent and 0.63 per cent respectively.

Vaishali Parekh of Prabhudas Lilladher has recommended two stocks to buy today and those two stocks are Apollo Hospitals and Godrej Consumer Products.

Here we list out full details below:

1] Apollo Hospitals: Buy at 4390, target 4530, stop loss 4330; and

2] Godrej Consumer Products: Buy at 907, target 957, stop loss 885.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. (Full Story)

30 Sep 2022, 07:31:45 AM IST

Govt revises interest rate on small savings schemes for third quarter

The Central Government on Thursday announced the small savings scheme interest rates for the third (October-December) quarter. This time, the government has raised the interest rate by up to 30 basis points on some small savings schemes for the quarter beginning 1 October.

The interest rate for senior citizens savings scheme has been hiked to 7.6% from 7.4%, for Kisan Vikas Patra to 7% from 6.9% and also increased for two, three-year time deposits. (Full Report)

30 Sep 2022, 07:30:25 AM IST

India’s current account deficit widens to 2.8% of GDP in April-June

India’s current account deficit (CAD) widened to $23.9 billion or 2.8 per cent of the country’s gross domestic product (GDP) in April-June period of the current financial year from $13.4 billion recorded in the previous quarter, as per data released by the Reserve Bank of India (RBI) on Thursday.

India’s current account balance recorded a deficit of $23.9 billion (2.8 per cent of GDP) in Q1:2022-23, up from US$ 13.4 billion (1.5 per cent of GDP) in Q4:2021-221 and a surplus of $6.6 billion (0.9 per cent of GDP) a year ago [i.e., Q1:2021-22], the RBI said in a statement.

The RBI on Thursday released the preliminary data on India’s balance of payments (BoP) for the first quarter (Q1), i.e., April-June 2022-23. (ANI)

30 Sep 2022, 07:29:54 AM IST

Rupee recovers from record lows to close at 81.73 against dollar ahead of RBI policy

The rupee on Thursday recovered from record lows to settle 20 paise higher at 81.73 against US dollar ahead of the RBI monetary policy decision scheduled to come out on Friday.

Heavy capital outflows restricted the rupee gain, traders said.

At the interbank forex market, the local unit opened at 81.60 against the greenback. It witnessed an intra-day high of 81.58 and a low of 81.94 during the session.

It finally ended at 81.73, up 20 paise from its previous close.

On Wednesday, the rupee plunged below the 82-mark for the first time in intraday trade before settling 40 paise down at 81.93 against the dollar. (PTI)

30 Sep 2022, 07:29:06 AM IST

US stocks plummet to 22-month low as Fed continues to remain hawkish

US stocks plunged to the lowest since November 2020 as another group of Federal Reserve officials struck a hawkish tone, and turmoil in Europe continued to fray investor nerves.

The S&P 500 fell as much as 2.9% during Thursday’s session but trimmed losses as markets closed. Its decline wipes out an ill-timed attempt Wednesday to rebound from a six-day slide.

The tech-heavy Nasdaq 100 dropped nearly 4% during the session after St. Louis Fed President James Bullard said investors have now understood that they can’t escape additional rate hikes in coming months. The index was dragged down by Apple Inc., which fell as much as 6.1% after a rare analyst downgrade from Bank of America warning of weaker consumer demand for its popular devices. (Bloomberg)


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