Wall Street remained under pressure on Tuesday and ended on a mixed note with S&P and Dow ending in the red while Nasdaq claimed some gains. The higher interest rates have been weighing on stocks as investors are worried the central banks will hit the brakes too hard on an already slowing economy
Oil tumbles as dollar hits record in fresh blow to commodities
Oil retreated as further gains in the dollar and figures pointing to higher US stockpiles countered speculation that OPEC+ will cut output.
West Texas Intermediate sank below $78 a barrel, dropping toward the lowest level since early January that was hit earlier this week. The US currency advanced to a record after a senior Biden administration official rejected the notion that there may be a coordinated global effort to rein in the US currency.
The industry-funded American Petroleum Institute, meanwhile, reported that US crude inventories swelled by more than 4 million barrels last week, according to people familiar with the figures. Official data will follow later Wednesday. (Bloomberg)
Motherson Sumi Wiring’s bonus shares issue decision to be taken this week; stock rallies
Motherson Sumi Wiring India Ltd’s board will meet this week on Friday September 30, 2022 to consider the proposal for the issue of bonus equity shares of the company. Shares of Motherson Sumi Wiring jumped more than 5% to ₹89 apiece on the BSE in Wednesday’s opening deals. (Read More)
Bank stocks, especially PSU Banks, sink at open on Wednesday, shed more than a percent
Indices tumble as Sensex and Nifty open 450 and 150 points lower, respectively
Three-day RBI monetary policy meet starts today; another repo rate hike likely
The monetary policy committee of the Reserve Bank of India is all set for its bi-monthly review meeting starting today.
Like several other central banks, the main focus of the RBI during the three-day-long meet will again remain on containing high inflation.
The MPC is a six-member body that is mandated to determine the policy interest rates required to achieve the inflation target while keeping in mind the objective of economic growth. As of now, this committee meets at least six times in a financial year, i.e every two months.
In its previous review meeting in early August, the monetary policy committee had unanimously decided to raise the repo rate by 50 basis points to 5.40 per cent in order to contain the persistently high inflation. The hike took the repo rate above pre-pandemic levels of 5.15%. (ANI)
Geojit Financial Services on market: India cannot remain immune to major global trends
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: “Globally equity markets are in bear territory. Nasdaq is down 33.2 % from the peak and S&P 500 is down 24.3% from the peak. The Euro Stoxx 50 is down 24.3% from its peak. These are clear bearish signals from markets in the developed world. India is a distinct outlier with only 8.5% decline from the peak in Nifty. India can remain an outperformer supported by its strong fundamentals but India cannot remain immune to major global trends.
Sensex tumbles 250 points at preopen; Bhel, Torrent Pharma, Axis Bank, IGL in focus
Apple ditches iPhone production increase after demand falters
Apple Inc. is backing off plans to increase production of its new iPhones this year after an anticipated surge in demand failed to materialize, according to people familiar with the matter.
The Cupertino, California-based electronics maker has told suppliers to pull back from efforts to increase the assembly of the iPhone 14 product family by as many as 6 million units in the second half of this year, said the people, asking not to be named as the plans are not public. Instead, the company will aim to produce 90 million handsets for the period, roughly the same level as the prior year and in line with Apple’s original forecast this summer, the people said.
Demand for higher-priced iPhone 14 Pro models is stronger than for the entry-level versions, according to some of the people. In at least one case, an Apple supplier is shifting production capacity from lower-priced iPhones to premium models, they added. (Bloomberg)
INDIA RUPEE-Rupee set for record low on rise in U.S. yields, risk aversion
The Indian rupee is tipped to open at a record low against the dollar on Wednesday, after U.S. Treasury yields rose and equities extended losses. The rupee is expected at around 81.80-81.85 per U.S. dollar at open, down from 81.58 in the previous session. The rupee reached a record low of 81.6525 on Monday. (Reuters)
Reliance Securities Stock in Focus for today: Kalpataru Power
STOCK IN FOCUS
Kalpataru Power (CMP Rs.425)
In the view of revenue visibility led by a healthy order inflow, sustained earnings momentum, lower debt and improvement in return ratios, we have our BUY rating on KPP, with a SOTPbased Target Price of Rs535.
SHREECEM (PREVIOUS CLOSE: 21,163) BUY
For today’s trade, long position can be initiated in the range of Rs20,550-20,400 for the target of Rs21,400-21,800 with a strict stop loss of Rs20,000.
GODREJCP (PREVIOUS CLOSE: 883) BUY
For today’s trade, long position can be initiated in the range of Rs874- 868 for the target of Rs900 with a strict stop loss of Rs854.
EICHERMOT (PREVIOUS CLOSE: 3,571) SELL
For today’s trade, short position can be initiated in the range of Rs3,610- 3,630 for the target of Rs3,460 with a strict stop loss of Rs3,680.
Bitcoin, ether fall over 6% each, other crypto prices today also tank
Cryptocurrency prices failed to hold on to gains with Bitcoin, the world’s largest and most popular cryptocurrency, trading more than 6% lower at $18.641. The global crypto market cap today remained below the $1 trillion mark, as it was down over 4% in the last 24 hours at $956 billion, as per CoinGecko. (Read More)
Stocks to Watch: Bhel, Torrent Pharma, Axis Bank, Power Grid, IGL, PVR, Motherson Sumi Wiring, Birla Corporation, Reliance
Vodafone Idea and Zee Entertainment will be under the F&O ban list for Tuesday. These stocks will be under the ban for the F&O segment as they have crossed 95% of the market-wide position limit (MWPL), as per the NSE. (Read More)
Ashwath Damodaran’s warning to stock market investor
Finance professor and valuation guru Ashwath Damodaran believes that if investors are underestimating expected inflation in the long term, as they did in the 1970s, we are in for an extended period of malaise in markets.
“Investors are expecting inflation to peak over the next year and subside in the long term, close to the levels that we saw in the last decade. That may be hopeful thinking, and the returns on stocks and bonds over the rest of the decade will be determined by the correctness of this assessment; if investors are under estimating expected inflation in the long term, as they did in the 1970s, we are in for an extended period of malaise in markets,” he said in his blog on Monday. (Read More)
JSW Energy to issue 3-year bonds – traders
India’s JSW Energy plans to raise 2.50 billion rupees ($30.60 million) through sale of bonds maturing in three years, three merchant bankers said on Wednesday.
The company will pay an annual coupon that is five basis points higher than one-year MCLR rate of State Bank of India and currently works out to be 7.75%, they said.
It has invited commitment bids for Thursday from bankers and investors, and the issue will close for subscription on Friday.
The notes are rated AA by India Ratings. (Reuters)
Jet may opt for Airbus A320neo as part of the first phase of its flight operations,
Jet Airways (India) Ltd is likely to opt for Airbus A320neo aircraft as part of the first phase of its flight operations, people aware of the development said. An Airbus A320neo aircraft in Jet Airways livery was spotted recently, indicating that the airline is close to making an announcement on the fleet.
So far, the airline has not announced plans for its fleet composition. Jet Airways used a Boeing 737 while operating test flights for its air operator certificate. However, it initiated the hiring process for pilots for Airbus A320, Boeing 737NG and Boeing 737 MAX in July. (Read More)
Market wrap for Tuesday from LKP Securities, Geojit Financial Services and Angel One
Rupak De, Senior Technical Analyst at LKP Securities: The benchmark Nifty remained range bound ahead of the RBI policy meet. The index briefly slipped below 16950 as it failed to sustain at the lower level leading to a close above 17000. On the lower end, bulls have managed to protect the 200 DMA on a closing basis. The momentum indicator is in a bearish crossover. The trend remains weak; however, the proximity to the crucial support may induce a pullback in the market. On the higher end, resistance is visible at 17150-17200. Above 17200, the Nifty may move towards 17500. On the other hand, a decisive fall below 16950 may trigger a panic button.
Vinod Nair, Head of Research at Geojit Financial Services: In search of a safer dollar and elevated bond yields, foreign investors are withdrawing from Indian equities, resulting in the decline of the domestic market. In contrast to the recent trend of sector performance, banks and autos are exhibiting negative bias, while IT and pharma are showcasing resilience. Crude price are closing down, despite expectations that OPEC+ will take more action to cut production in the coming meeting, due to weakening global economy.
Osho Krishan, Sr. Analyst – Technical & Derivative Research, Angel One Ltd: We allude to the previous commentary on the benchmark index entering the cluster of key moving averages, i.e. 89-day EMA and 200-day SMA. Technically, the support of 17000-16800 shows their resilience as bulls retaliate from the same during intraday declines. As long as the mentioned zone is decisively held back by the bulls, one need not worry about further correction. Also, since the markets are extremely oversold, we advocate reducing short positions. Meanwhile, the intraday hurdles are seen around 17100 – 17200. Only a sustainable move beyond 17200 would trigger a sharp short covering rally in the market. Until then, the broad range (16800 – 17200) continues with a lot of indecisive swings on both sides. Traders are advised to keep a close eye on global development as well. Any respite in oversold global peers would certainly uplift the overall market sentiments.
Spike in oil price is breaking our back, says S Jaishankar after talks with US
Focusing on the energy needs of developing countries like India, External Affairs Minister S Jaishankar on Tuesday said India is concerned over the spike in the price of oil due to the Russia-Ukraine conflict and said it is “breaking our back.”
After holding bilateral talks with the US, Foreign Minister S Jaishankar expressed concern over the spike in the price of oil due to the Russia-Ukraine conflict and said it is breaking India’s back. (Read More)
Torrent Pharma to acquire Curatio Healthcare for ₹2,000 crore
Torrent Pharmaceuticals Limited (Torrent Pharma) on Tuesday said it has entered into definitive agreements to acquire 100 per cent stake in Curatio Healthcare for ₹2,000 crore.
The consideration includes ₹115 crore (on the date of signing) of cash and cash equivalents in the acquired business indicating an Enterprise Value of ₹1,885 crore.
“The transaction is subject to conditions precedent and is expected to close within one month,” Torrent Pharma said in a statement.
Curatio has a strong presence in the cosmetic dermatology segment with a portfolio of over 50 brands, marketed in India. Curatio’s portfolio consists of leading brands such as Tedibar, Atogla, Spoo, B4 Nappi, and Permite, which are ranked among the top 5 brands in their covered market. Top ten brands of Curatio account for 75 per cent of total revenue. With this acquisition, Torrent Pharma will add a Field Force of 600 MRs and a distribution network of 900 stockists, Torrent Pharma said in a statement. (ANI)
India unwilling to bend for index inclusion to bring in billions
India has ruled out any changes to tax policies that will make it easier for the nation’s bonds to be included in global indexes, according to people familiar with the matter.
The government doesn’t plan to waive capital gains taxes, and it’s concerned that foreign inflows will increase the volatility of local markets, said the people, who didn’t want to be identified discussing policy matters. Those taxes have been a stumbling block in previous negotiations.
FTSE Russell and JPMorgan Chase & Co. are due to unveil the results of their index reviews in coming weeks, with investors piling into Indian bonds on bets the country will replace Russian debt. While the index compilers could proceed to include the securities without changes, discussions earlier fell apart over the government’s demand to retain the right to tax capital gains, dashing analysts’ predictions of $30 billion of foreign inflows. (Bloomberg)
Rupee rises 14 paise to close at 81.53 against US dollar on Tuesday
The rupee consolidated in a narrow range and settled 14 paise higher at 81.53 against the US dollar on Tuesday as the American currency retreated from its elevated levels.
At the interbank forex market, the local unit opened at 81.45 against the greenback. It witnessed an intra-day high of 81.30 and a low of 81.64 during the session.
It finally ended at 81.53, up 14 paise from its previous close.
This is the first gain after four consequent sessions of losses for the rupee, during which it lost 193 paise against the American dollar. (PTI)
Rajesh Palviya of Axis Securities recommends 3 stocks to buy today — 28 Sept
Following weakness in global equity markets, Dalal Street ended in red zone on Tuesday. Among sectors oil & gas, telecom and IT were the main gainers while power, metals and banks were the main losers. However, small-cap index outperformed key benchmark indices after logging an intraday gain of around 0.49 per cent. Rajesh Palviya, VP – Technical and Derivative Research at Axis Securities believes that both Nifty and Bank Nifty index is indicating negative bias in short term. On buy or sell stocks for today, Rajesh Palviya of Axis Securities recommended 3 stocks to buy today — Indian Hotels, Cipla and MindTree.
Here we list out full details in regard to these buy or sell stocks for today’s session:
1] Indian Hotels: Buy at ₹329, target ₹345 to ₹350, stop loss ₹322;
2] Cipla: Buy at ₹1102, target ₹1140 to ₹1150, stop loss ₹1075; and
3] MindTree: Buy at ₹3258, target ₹3340, stop loss ₹3210.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. (Read More)
Adani group to invest $100 billion by 2032
Billionaire Gautam Adani, the second richest person in the world, on Tuesday said his group would invest $100 billion over the next decade, primarily in energy transition and digital opportunities, as well as sectors such as aerospace and defence, metals and petrochemicals. Adani’s plans in the energy transition space include adding 45 GW of hybrid renewable power generation capacity. (Read More)
US stocks end mixed a day after Dow entered a bear market
A wobbly day of trading on Wall Street ended with a mixed finish for U.S. stock indexes Tuesday as markets stagger amid worries about a possible recession.
The volatile trading comes a day after a broad sell-off sent the Dow Jones Industrial Average into a bear market, joining other major U.S. indexes.
The S&P 500 slipped 0.2%, its sixth consecutive loss. The benchmark index had been up 1.7% in the early going before a midafternoon pullback. The Dow fell 0.4%, while the Nasdaq composite wound up with a 0.2% gain.
Major indexes remain in an extended slump. With just a few days left in September, stocks are heading for another losing month as markets fear that the higher interest rates being used to fight inflation could knock the economy into a recession. (AP)
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