Fed Chair Jerome Powell will be giving a speech at an annual economic conference in Jackson Hole, Wyoming on Thursday. Investors are hoping Powell will offer clarity on further rate hikes. Wall Street ended with gains on Wednesday and Asian markets started on a positive note on Friday.
Global bond inflows into India signal shift in outlook
Overseas investors are turning into net buyers of key emerging markets bonds in Asia for the first time in months, hinting at more significant inflows if the Federal Reserve goes for a more calibrated rate tightening.
The inflows suggest foreign funds were betting that the Fed will pivot and become less hawkish amid signs of an economic slowdown. (Full Story)
India’s robust growth gives RBI room for more rate hikes – DBS
India’s strong growth offers room for the Reserve Bank of India to raise rates by another 60 basis points as the central bank seeks to stamp out high inflation, DBS Group Research said in a note on Thursday.
India’s gross domestic product (GDP) in the first quarter of current fiscal year likely surged 16% year-on-year based on most leading indicators, the research house estimated.
Favourable base effect after the onset of Delta coronavirus variant last year will additionally lift the year-on-year GDP numbers, Radhika Rao, senior economist at DBS Group Research, wrote in the note. (Reuters)
Noon Update: Indices jump 0.5% in the first session, Sensex gains 290 points and Nifty 85
UPL and SBI Life were among the top gainers on Thursday, while Adani Ports and Cipla lagged.
Tokyo stocks closed higher Thursday, tracking overnight US gains
Tokyo stocks closed higher Thursday, tracking overnight US gains ahead of a meeting of global central bankers that may offer clues about the future pace of interest rate hikes.
The benchmark Nikkei 225 index snapped a five-day losing streak and gained 0.58%, or 165.54 points, to end at 28,479.01, while the broader Topix index rose 0.48%, or 9.42 points, to 1,976.60. (AFP)
IT Index continues to remain under pressure; most stocks in red.
Rakuten expands in India by setting up new facility
Japanese Internet services and e-commerce group, Rakuten’s India unit, is opening a new office in Bengaluru on Thursday, in a bid to expand globally. The new facility houses product, engineering, and advanced research and is Rakuten Group’s “largest outside Japan,” according to the company. (Full Story)
IOC eyes net zero carbon emissions by 2046
Indian Oil Corp, the country’s top refiner, has set a 2046 net zero carbon emissions goal, its chairman S. M. Vaidya said at annual shareholders meet on Thursday. India, one of the world’s biggest greenhouse gas emitters, is aiming to reach net zero emissions by 2070.
Vaidya said IOC has prepared a roadmap to achieve net zero Scope 1 and 2 emissions by 2046. Scope 1 and 2 emissions relate to emissions from crude refining and energy consumption. (Reuters)
UPL stock gains more than 2% on Thursday trading
DreamFolks Services IPO: GMP jumps after strong retail subscription. Should you apply?
The initial public offer (IPO) of DreamFolks Services Ltd opened for subscription on 24th August 2022 and the public issue will remain open for bidding till 26th August 2022. The public offer worth ₹562.10 crore got fully subscribed on day one of bidding. On day two of bidding, the retail portion of the public issue has been subscribed 9.99 times by 10:34 AM. This strong response by retail investors has influenced grey market as well. As per the market observers, shares of DreamFolks Services Ltd are available at a premium of ₹83 in grey market today. (Read More)
CTG Duty Free slips after biggest Hong Kong listing of the year
China Tourism Group Duty Free Corp. slipped early in its Hong Kong trading debut, after raising HK$16.2 billion ($2.1 billion) in the Asian financial hub’s biggest listing this year.
Shares of the world’s largest travel retailer dropped to HK$157.90 as of 1:08 p.m. local time. They were sold at HK$158 each, above the mid-point of a marketed range. The debut was delayed to the afternoon as Hong Kong Exchanges & Clearing Ltd. scrapped its morning trading session due to tropical storm Ma-on.
Proceeds from the retailer’s offering boosted this year’s tally for new-share sales in Hong Kong to $7.2 billion, according to data compiled by Bloomberg. Still, that amount is about 80% lower than the same period last year, with large-size offerings becoming scarce globally as rising interest rates and high inflation keep big issuers on the sidelines. (Bloomberg)
Metal stock trades ex-split, shares hit upper circuit
Shares of Rama Steel Tubes Ltd surged to hit the upper circuit level of 5% to ₹115 apiece on the BSE in Thursday’s early trading session, as the metal stock started ex-split, a day ahead of its record date for the sub-division of equity shares in the ratio of 5:1. (Full Story)
Rupee gains 6 paise to 79.80 against US dollar in early trade
The rupee appreciated 6 paise to 79.80 against the US dollar in opening trade on Thursday, tracking its Asian peers and a positive trend in domestic equities.
At the interbank foreign exchange, the domestic unit opened at 79.80 against the dollar, registering a gain of 6 paise over its previous close.
On Wednesday, the rupee depreciated 3 paise to close at 79.86 against the US dollar. (PTI)
NDTV shares gain 5%; hit upper circuit for the second day in a row
Shares of NDTV Ltd continued to climb for the second consecutive day on Thursday and touched the upper circuit limit of ₹407.60 on the National Stock Exchange amid the Adani group making an offer to take over the media firm.
On NSE as well as BSE, the scrip jumped 5% in opening trade and touched the respective upper circuit limits.
The company’s shares rose 5% to ₹407.60 apiece on NSE, also its 52-week high, after closing at ₹388.20 on Wednesday. (PTI)
RBL Bank shares: What is triggering the surge? Stock up 23% in 2 days
After hitting upper circuit on Wednesday session, RBL Bank shares have opened upside in early morning deals on Thursday. RBL Bank share price today opened with an upside gap and went on to hit intraday high of ₹128.25 apiece levels, logging near 5.35 per cent intraday gain in early morning session. However, the stock had hit upper circuit on Wednesday that means the banking stock has surged from around ₹104 to ₹128.25 levels in 2 sessions, logging around 23 per cent rise in this period. (Full Story)
Angel One analysis on today’s market: Consolidation to continue for key indices
Sameet Chavan, chief analyst-technical and derivatives, Angel One Ltd: Our markets started the session on a soft note by shrugging off unfavorable cues from the global bourses. During the remaining part of the session, both counterparties made several attempts to show their dominance; but eventually, the bulls turned out victorious as we witnessed good traction in the last hour to reclaim the 17600 mark on a closing basis.
Amid a mild tug of war yesterday, our markets managed to close in the green by a small margin. If we observe meticulously, the Nifty kept oscillating at merely 70-80 points throughout the session, which is a sign of consolidation. The real action was seen outside the index as a lot of individual stocks gave excellent moves in the latter half. For the coming session, we expect this consolidation to continue for key indices. As far as levels are concerned, 17650 – 17710 is to be seen as an immediate resistance zone and momentum traders should ideally look to lighten up longs around it from an expiry perspective. On the flip side, 17525 – 17450 remains to be an intraday support.
Globally, things have once again become slightly turbulent and hence, it’s advisable not to get complacent here. Rather, following one step at a time is the appropriate strategy
Europe’s energy crisis risks dwarfing $279 billion rescue cash
Europe’s politicians have already earmarked about 280 billion euros ($279 billion) to ease the pain of surging energy prices for businesses and consumers, but the aid risks being dwarfed by the scale of the crisis.
With Russia squeezing gas deliveries and power-plant outages further sapping supply, wholesale energy prices have soared to more than 10 times their seasonal average over the past five years. Tensions have intensified as Moscow prepares to shut the key Nord Stream pipeline on Wednesday for maintenance, reviving concerns about a long-term halt that would threaten efforts to secure sufficient reserves for the winter. (Bloomberg)
Gujarat Gas, IGL, MGL: What Jefferies recommends on Indian oil & gas stocks
The recent hike in domestic gas allocation for CNG has created room for Indraprastha Gas (IGL)/ Mahanagar Gas (MGL) to defend their respective Ebitda per scm till US$ 70/60 per mmbtu Spot price (assuming APM price is capped at current level), as per global brokerage Jefferies. (Read More)
NDTV says Adani needs regulatory nod to buy its top shareholder
New Delhi Television Ltd (NDTV) on Thursday said Adani Group needs regulatory approval to buy its biggest shareholder, as its founders – who own the target firm – are barred from trading in securities markets.
Indian billionaire Gautam Adani’s conglomerate on Tuesday said it was seeking a controlling stake in the news channel. NDTV said the action “was executed without any input from, conversation with, or consent of the NDTV founders”.
NDTV founders Radhika and Prannoy Roy took a 4 billion rupee ($50 million) loan from little-known firm VCPL over 10 years ago, and in exchange issued warrants allowing VCPL to buy 29.18% of the news group.
The Adani Group said on Tuesday it had acquired VCPL and is exercising those rights. (Reuters)
All broad sectoral indices in green with PSU Bank and Realty leading the pack
Sensex and Nifty added 250 and 80 points, respectively, at open on Thursday. Airtel stock climbed 1.5% in early trading
Reliance Securities Stock in Focus: Kalpataru Power
STOCK IN FOCUS
Kalpataru Power (CMP Rs.371)
We have a BUY rating on KPP, with a SOTP-based Target Price of Rs535.
HDFC (PREVIOUS CLOSE: 2,439) BUY
For today’s trade, long position can be initiated in the range of Rs2,432- 2,420 for the target of Rs2,495 with a strict stop loss of Rs2,394.
GRANULES (PREVIOUS CLOSE: 309) BUY
For today’s trade, long position can be initiated in the range of Rs309- 307 for the target of Rs319 with a strict stop loss of Rs302. NESTLEIND (PREVIOUS CLOSE: 19,671) BUY For today’s trade, long position can be initiated in the range of Rs19,490- 19,400 for the target of Rs19,940 with a strict stop loss of Rs19,340.
Sensex is flat with marginal gains at preopen
Stocks to Watch: Tata Power, Maruti Suzuki, TVS Motor, ONGC, IDFC
RBL Bank has been put on the list of banned securities under the F&O segment for Thursday trading as it has crossed 95% of the market-wide position limit. Websol Energy System and Consolidated Construction Consortium will be declaring their June quarter results and thus will be in focus. (Full Story)
LIC shares in focus as stock trades ex-dividend today
Life Insurance Corporation (LIC) of India or LIC stock will be in focus today as shares of insurance behemoth are going to trade ex-dividend on Thursday. In its previous exchange filing, LIC of India has informed Indian exchanges that the board of directors of the insurance company has approved dividend payment of ₹1.50 per equity share to its shareholders for the financial year 2021-22. The company board also fixed 26th August 2022 as record date for finalising eligible shareholders for dividend payment. (Full Details)
Bharti Telecom to buy 3.33% Airtel stake from Singtel for ₹12,895 crore
Bharti Airtel promoter Bharti Telecom will buy a 3.33% stake from Singtel for 2.25 billion Singapore dollars or about ₹12,895 crore in 90 days, the telecom operator said on Thursday.
Bharti Group chairman Sunil Bharti Mittal’s family and Singtel own Bharti Telecom (BTL).
“Singtel and its affiliates have entered into an agreement to transfer approximately 3.33 per cent shares to BTL for an aggregate amount of approximately 2.25 billion Singapore dollars, leaving direct shareholding of Singtel and Bharti in Airtel at around 10 per cent and 6 per cent respectively,” Bharti Airtel said in a regulatory filing on Thursday.
The acquisition is to be completed over a period of 90 days. (PTI)
India bond yields seen up tracking U.S. peers, oil
Indian government bond yields are expected to rise marginally in early trades on Thursday, tracking higher U.S. yields and global oil prices.
The benchmark 10-year government bond yield is likely to trade in 7.27%-7.32% band, a trader with a private bank said. The yield has risen 11 basis points in the last five sessions. It had ended at 7.2858% on Wednesday.
“All factors have turned bearish for bonds, and we do not expect any major buying today or even tomorrow,” the trader said. (Reuters)
BEML to fix record date for 1:1 shares issue by BEML Land Assets in board meet today
Shares of PSU mining firm BEML plunged nearly 2% on the BSE in Wednesday’s early deals as the board will meet on August 24, 2022 to decide on the record date to determine eligible shareholders for issuing shares by BEML Land Assets as part of the demerger scheme. BEML to fix a record date to determine eligible shareholders for issuing shares by BEML Land Assets as part of the demerger scheme. (Full Story)
India can add another 23.7GW wind energy capacity in next five years: Study
India can add another 23.7GW of wind energy capacity in the next five years, according to a study.
Global Wind Energy Council and MEC Intelligence (MEC) on Wednesday released the report titled “Renewing wind growth to power the energy transition: India Wind Energy Market Outlook 2026”.
According to a statement, the third annual edition looking at the wind energy outlook in India highlights wind energy’s critical link to India’s green energy transition. (PTI)
RBL Bank shares under F&O ban on NSE today
Only one stock has been put under the ban for trade on Thursday, August 2, 2022 under the futures and options (F&O) segment by the National Stock Exchange (NSE). The counter has been put on ban under the F&O segment as it has crossed 95% of the market-wide position limit (MWPL), as per the NSE. (Read More)
India on course to have 1.8 lakh km highways, 1.2 lakh km rail lines by 2025: Report
The country is on course to build more national highways and rail lines during the decade ending 2025 than it has cumulatively done between 1950 and 2015, a report said on Wednesday.
The total length of national highways is expected to reach 1.8 lakh kilometres, while that of the railway lines 1.2 lakh kilometres by 2025, Bank of America Securities India said in a report.
Between 1950 and 2015, the nation built only 4,000 kilometres of national highways, taking the total length to 77,000 kilometres in 2015. However the highway length is on course to cross 1.8 lakh kilometres by 2025 — more than double the existing length — in ten years time. (PTI)
All about Adani’s media entity that bought 29.18% stake in NDTV
Adani Group on Tuesday indirectly acquired a 29.2% stake in New Delhi Television Ltd by buying VCPL, and offered to buy another 26% from the open market, NDTV said the move to take control of the media company’s major shareholder was without consent from the firm or its founders.
Vishvapradhan Commercial Pvt. Ltd (VCPL), which owned convertible debentures (warrants that provide for the conversion of debt to equity) in RRPR Holding Pvt. Ltd that in turn owned 29.18% of NDTV Ltd, is a wholly-owned subsidiary of AMG Media Networks Ltd (AMNL), the media arm of Adani Enterprises Ltd (AEL). It had acquired the debentures in 2009-10 in return for a loan amounting to ₹404 crore it extended to the promoter holding company. (Full Story)
Rupee slips 2 paise to close at 79.85 against US dollar
The rupee consolidated in a narrow range and depreciated 2 paise to close at 79.81 (provisional) against the US dollar on Wednesday.
At the interbank foreign exchange market, the domestic currency opened at 79.84 per dollar. It hovered in a range of 79.68 to 79.87 during the session.
The domestic unit finally settled at 79.85, down 2 paise over its previous close of 79.83. (PTI)
Retailers eye 5G to boost festive demand
Retailers are banking on 5G and 5G- enabled smartphones to stimulate demand ahead of the festive season as top brands prepare to launch models based on the technology and telcos initiate new services. A section of retailers expect 5G smartphone prices to fall from ₹15,000 to below ₹10,000 within six months. (Full Story)
Storm delays trading debut for Hong Kong’s biggest IPO this year
China Tourism Group Duty Free Corp., which raised HK$16.2 billion ($2.1 billion) in Hong Kong’s biggest listing this year, will have its debut delayed due to tropical storm Ma-on.
The shares were sold at HK$158 each, above the mid-point of a marketed range, and when the Hong Kong stock was priced last week, the discount to the firm’s equities trading in Shanghai was about 27.5%. Hong Kong Exchanges & Clearing Ltd. scrapped trading of stocks and derivatives during the morning session, with trading scheduled to start at 1 p.m. (Bloomberg)
Corporate bond outstanding soars four-fold to ₹40.2 lakh crore in a decade
Illiquidity in secondary corporate debt market is a global issue and so focus should be on further deepening primary market that has grown nearly four-folds in a decade to over ₹40 lakh crore, an RBI official said.
Addressing a Bombay Chamber of Commerce & Industry event on Wednesday, Reserve Bank deputy governor T Rabi Sankar said the concerted efforts by regulators and government have seen corporate bond outstanding touching ₹40.20 lakh crore in FY22 from ₹10.51 lakh crore in FY12. While annual issuances during this period have increased from ₹3.80 lakh crore to close to ₹6 lakh crore.
During this period, the secondary market volume spiked from ₹4.5 lakh crore to ₹14.37 lakh crore, showing clearly that secondary trading has not risen in consonance with the size of the market, he said. (PTI)
Domestic demand helps companies sail through in Apr-Jun
Geopolitical issues, a weakening rupee, recessionary concerns across developed markets and high commodity prices had a bearing on the June quarter performance of India Inc., said experts. Managements have indicated that recent input price corrections should drive a margin recovery in Oct-March. (Full Story)
Stocks edge higher as Wall Street waits for Fed speech
Stocks ticked higher Wednesday as Wall Street waits for a highly anticipated speech about interest rates at the end of the week.
The S&P 500 edged up 12.04 points, or 0.3%, to 4,140.77, as traders overall again held off on making big moves. The Dow Jones Industrial Average added 59.64, or 0.2%, to 32,969.23, and the Nasdaq composite rose 50.23, or 0.4%, to 12,431.53. (AP)
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