Wall Street gained some confidence to snap the negative trend as the BoE announced it was temporarily buying up long-dated UK government bonds “to restore orderly market conditions” following a historic slump in the pound. Asian markets also opened in the green in the morning.
Swastik Pipe IPO opens for subscription today. Key things to know
Swastik Pipe Ltd’s initial public offering (IPO) will open for bidding on September 29, 2022 and close on Monday, October 03, 2022. The company has fixed the price brand of ₹97 to ₹100 per equity share for its public issue on NSE Emerge through the book building route. Swastik Pipe IPO’s issue size comprises issuance of up to 62.52 lakhs equity shares. (Read More)
Hindalco stock shines in early trading, gains more than 3%
India eyes $550 million incentives to draw Apple, tablet makers
India plans to boost the financial incentives for manufacturers that make tablets and laptops in the country, wooing companies such as Apple Inc. and Dell Technologies Inc. as part of its bid to challenge China as a production base.
The federal technology ministry has floated the revamped program to electronics industry executives for consultation, including payments that could exceed a half a billion dollars per company, people familiar with the matter said. India wants to boost production of tablets and laptops to cut imports and make the country an export hub in the longer term.
The effort is aimed at companies such as Apple, Dell, HP Inc. and Asustek Computer Inc. to widen or begin local production, the people said. In particular, the country wants to persuade Apple, which already assembles iPhones in India via its Taiwanese suppliers, to make iPads locally. (Bloomberg)
Metal index off to a great start with a gain of more than 2.5% in early trading. All stocks in green
Cryptocurrency prices today gain as Bitcoin, ether surge over 5%. Check latest rates
Cryptocurrency prices today rebounded with Bitcoin, the world’s largest and most popular cryptocurrency, trading more than 5% higher at $19,427. The global crypto market cap today remained below the $1 trillion mark, even as it was up over 2% in the last 24 hours at $984 billion, as per CoinGecko. (Full Story)
Sensex adds 500 points at open and Nifty 130 points to start on a bright note
Geojit Financial Services views on today’s Nifty, Derivative and Rupee
Anand James – chief market strategist at Geojit Financial Services
With 16860 encouraging bulls to regroup on anticipated lines, the play today would be to see how far Nifty could stretch on the bounce. The 17170 region is a natural resistance. We expect this to be overcome, but fear that long liquidation pressure will re-emerge much before 17350 is achieved. As maintained earlier, rejection trades would rekindle prospects of 16650-16300.
Nifty weekly contract has highest open interest at 17000 for Calls and 16000 for Puts while monthly contracts have highest open interest at 17000 for Calls and 16800 for Puts. Highest new OI addition was seen at 17000 for Calls and 16000 for Puts in weekly and at 17000 for Calls and 16700 for Puts in monthly contracts. FIIs increased their future index long position holdings by 64.12%, increased future index shorts by 16.54% and index options by 9.26% in Call longs, 12.57% in Call short, -1.33% in Put longs and 14.50% in Put shorts.
The sharp pull back after playing around in the 82 vicinity hints at bullish exhaustion. Inability to pull back above 81.6 would confirm a drop extending as far as 80.95. Alternatively, expect sideways moves while above 81.6.
China’s Yuan gains first time in nine days after verbal support
China’s onshore yuan advanced for the first time in nine sessions, after the central bank issued a verbal warning against currency speculation.
The currency advanced 0.3%, halting an eight-session slide around 3%. The gains came after the People’s Bank of China late on Wednesday issued a strongly-worded statement saying that speculators will definitely lose money in the long term and key market participants need to “protect the authority of the fixing.” It also set the fix at a stronger-than-expected level for the 26th straight session. (Full Story)
Sensex preopens in green; Vodafone Idea, Hindustan Copper, IDBI in focus
Reliance Securities Stock to Focus today: Crompton Greaves
STOCK IN FOCUS
Crompton Greaves (CMP Rs.407)
We have a BUY rating, with a Target Price of Rs475.
UBL (PREVIOUS CLOSE: 1,687) BUY
For today’s trade, long position can be initiated in the range of Rs1,676- 1,665 for the target of Rs1,750 with a strict stop loss of Rs1,643.
BIOCON (PREVIOUS CLOSE: 284) BUY
For today’s trade, long position can be initiated in the range of Rs281- 279 for the target of Rs292 with a strict stop loss of Rs276.
UPL (PREVIOUS CLOSE: 664) SELL
For today’s trade, short position can be initiated in the range of Rs669- 673 for the target of Rs646 with a strict stop loss of Rs682.
Stocks to Watch: Vodafone Idea, Hindustan Copper, PNB, IDBI, Ambuja Cements, Hindustan Motors, Edelweiss Financial, UCO Bank, Bharti Airtel, Sangam Ltd
Vodafone Idea will be the only stock to be under the F&O ban list for Thursday. This stock will be under the ban for the F&O segment as it has crossed 95% of the market-wide position limit (MWPL), as per the NSE. (Full Story)
INDIA BONDS-Bond yields may open down tracking fall in U.S. peers; RBI policy watched
Indian government bond yields are expected to open lower on Thursday, tracking a sharp decline in U.S. yields, although sentiment is expected to remain cautious ahead of the Reserve Bank of India’s policy decision that is due on Friday.
The benchmark Indian 10-year government bond yield is seen in a 7.24%-7.29% band, a trader with a private bank said. The yield ended at 7.3340% on Wednesday.
“U.S. yields have sharply corrected within a day, after seeing nearly 10 basis points rise daily since the last few days, and this should result in a gap-down opening for local bond yields,” the trader said.
“Still, after some reaction at open, yields may be range-bound ahead of (the) all-important monetary policy decision.” (Reuters)
Hindustan Copper shareholders approve 23.2% dividend for FY22
Shareholders of state-owned Hindustan Copper Ltd (HCL) on Wednesday approved a 23.2% dividend for the financial year ended in March 2022.
The company would make a total dividend payout of ₹112.17 crore as approved in the 55th Annual General Meeting, HCL said in a statement.
During the meeting, HCL Arun Kumar Shukla said the production from the company’s flagship project, Malanjkhand underground mine, has commenced.
He also informed that the company has repaid a loan of ₹729 crore in FY2021-22 from its internal accruals.
As the global economy moves toward net zero carbon emissions through the energy transition, the role of copper remains pivotal as the most efficient conductive material, indispensable for capturing, storing and transporting green energy, he said. (PTI)
Market wrap for Wednesday: Views by Geojit Financial, Kotak Securities, LKP Securities and Angel One
Vinod Nair, head of research at Geojit Financial Services: Investors continue to be sceptical of the domestic market’s higher premium amid the ongoing global deceleration while foreign investors are fleeing emerging economies in search of safer havens. Although the domestic economy is buoyed by solid fundamentals, the stock market’s appetite for risk has been hindered by the rising worries of a worldwide recession. Domestic investors are turning to IT and pharma companies, which have been in a consolidation phase for the past year and are now gaining from the INR depreciation. The RBI policy meeting is currently underway, and the central bank is likely to raise repo rates by 35-50 basis points, however, the inflation outlook may soften in reaction to declining commodity prices.
Shrikant Chouhan, head of equity research (retail), Kotak Securities Ltd: Markets remained choppy with a sharply downward bias, as investors exited banking and metal stocks ahead of the monthly F&O expiry with the likely rate hike by the RBI & other central banks indicating that bearish sentiment could continue going ahead. Technically, we are of the view that 17000 would act as an immediate resistance level. Below which, the correction wave is likely to continue till 16700-16650. On the flip side, a short recovery rally is possible only after the dismissal of 17000. Above the same the index could move up to 17100-17200. The Nifty is having major support between 16700-16650 (which is important retracement support level). Buying is advisable in index heavyweight stocks if Nifty falls to 16700 levels.
Rupak De, senior technical analyst at LKP Securities: Nifty ended in the red after a volatile trading session. The index closed below 200 DMA for the first time after several days. The momentum oscillator RSI is in a bearish crossover. On the daily chart, the index has made a low around the historical swing high. The trend is likely to remain weak as long as it remains below 17000. On the lower end, 16800-16830 will likely remain supported. On the higher end, resistance is visible at 17000.
Osho Krishan, sr. analyst – technical & derivative research, Angel One Ltd: Technically, the positive structure has been shaken a bit as the psychological support of 17000 got breached decisively. Also, the closure below the 200-day SMA has dampened the overall sentiments, implying weakness in the comparable period. However, the formation of the ‘Inverted Hammer’ candle on the technical chart could be seen as a ray of hope for a reversal from the ongoing selling saga. As far as levels are concerned, the unfilled gap of 16750-16650 is to be seen as the next potential support. While on the higher end, the 17000-mark followed by 17200 is likely to be seen as immediate resistance for the index.
Since the market is extremely oversold, one needs to keep a cautious view and avoid undue risk during the monthly expiry session. Meanwhile, a close tab should be kept on global developments, which may lead to an immediate trend setup, and it is advisable to be very selective in finding trading opportunities.
Indus Towers asks Vodafone Idea to clear dues for business continuity post-Nov
Mobile tower giant Indus Towers is learnt to have asked debt-ridden Vodafone Idea to clear outstanding dues and pay every month on time for continuity of business post-November, sources aware of the development said on Wednesday.
The development comes after independent directors expressed concerns over the mounting dues of Vodafone Idea (VIL). (Read More)
Indian refiners pay dollars for Russian oil after dirham attempts fail
Indian companies are still buying Russian oil using dollars after Dubai’s Mashreq Bank declined to handle payments from at least two refiners in Emirati Dirhams as requested by the supplier, according to three sources familiar with the matter.
Russia has been hit by sanctions from the United States and allies following its invasion of Ukraine, and Moscow has requested some buyers of its commodities pay using roubles or other currencies than the dollar and euro which its contracts are typically priced in.
Traders supplying Russian oil in July had asked at least two Indian companies to settle in dirham. An invoice from one of the refiners seen by Reuters showed oil payments were calculated in dollars while payment was requested in dirhams. (Reuters)
World Bank’s Malpass sees risk of stagflation, likely recession in Europe
World Bank President David Malpass on Wednesday warned that it could take years for global energy production to diversify away from Russia after its invasion of Ukraine, prolonging the risk of stagflation, or a period of low growth and high inflation.
In a speech at Stanford University, Malpass said there was an increased likelihood of recession in Europe, while China’s growth was slowing sharply and U.S. economic output had contracted in the first half of the year.
Those developments would have grave consequences for developing countries, Malpass said, citing what he called “consequential” and “worsening” challenges facing development. (Reuters)
Rajesh Palviya of Axis Securities recommends 3 stocks to buy today — 29 Sept
Following weak global sentiments and slide in national currency, Indian stock market continue to dip on sixth straight session on Wednesday. NSE Nifty ended 148 points south at 16,858 while BSE Sensex slump 509 points and finished at 56,598 levels. Bank Nifty index nosedived 599 points and ended at 37,759 mark. Rajesh Palviya, VP — Technical and Derivative Research, Axis Securities believes that Nifty has entered the bullish gap but Nifty Bank may continue to feel the sell-off heat for a while.
Here we list out details in regard to Rajesh Palviya’s shares for day traders:
1] Asian Paints: Buy at ₹3568, target ₹3640, stop loss ₹3515;
2] Aditya Birla Fashion and Retail: Buy at ₹330, target ₹345, stop loss ₹332; and
3] KIMS: Buy at ₹1390, target ₹1440, stop loss ₹1360.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. (Read More)
India heads for its third half-point hike as rupee slumps
India’s central bank is expected to increase its policy rate by half a point for the third time in a row as the currency’s plunge to a record low this month complicates the battle against inflation.
The Reserve Bank of India’s six-member monetary policy committee will raise its repurchase rate by 50 basis points to 5.9%, according to 24 of 35 economists surveyed by Bloomberg as of Wednesday. Ten forecast the rate will rise by 35 basis points to 5.75%, while one sees a quarter-point increase. (Full Story)
BOE steps back into bond narket to restore stability
The Bank of England staged a dramatic intervention to stave off an imminent crash in the gilt market by pledging unlimited purchases of long-dated bonds.
With the fallout from Prime Minister Liz Truss’s tax cuts still ripping through UK asset prices, the central bank had been warned that collateral calls on Wednesday afternoon could force investors to dump government bonds, according to a person familiar with its decision making.
The BOE kicked off the plan on Wednesday afternoon by purchasing just over £1 billion ($1.07 billion) of securities maturing in 20 years or more, less than the £5 billion it said it was prepared to buy at each auction. Operations will continue every weekday until Oct. 14. (Bloomberg)
No stake sale, PNB to retain promoter status in subsidiary
Punjab National Bank will continue as a promoter of PNB Housing Finance Ltd (PNBHFL) even after the mortgage lender completes its rights issue, a top executive said.
The public sector bank has already got Reserve Bank of India approval to infuse up to ₹500 crore for subscribing to PNBHFL shares in the proposed rights issue of up to ₹2,500 crore, expected by December.
“Post-rights issue, the holding of the bank (in PNBHFL) would come down below 30%, but would be kept above 26% so that bank retains promoter status,” managing director Atul Kumar Goel said in an interview. (Read More)
TotalEnergies to trim stake in Adani Green Energy
TotalEnergies SE said it could sell a small part of its 20% stake in Adani Green Energy Ltd. to cash in on the jump in the valuation of the Indian renewable energy producer.
The French energy giant bought 20% of Adani Green in 2021 for $2 billion, building on a series of previous deals with Indian billionaire Gautam Adani. That stake was worth about $10 billion at the end of August, according to TotalEnergies. (Read More)
Rupee breaches 82 mark against dollar on forex outflows, surging US yields
The rupee plunged below the 82 mark for the first time in day trade before settling down by 40 paise at 81.93 against the US dollar on Wednesday due to heavy forex outflows amid strengthening US treasury yields.
Moreover, a negative trend in domestic equities and a stronger dollar in overseas markets sapped investor appetite, forex traders said.
At the interbank foreign exchange, the rupee opened at 81.90 and later fell to 82.02 to a dollar in day trade due to risk-averse sentiment among investors.
The rupee finally settled at 81.93, its all-time closing low.
The Indian rupee hit a fresh record low against the dollar on Wednesday weighed down by a rise in US treasury yields and the dollar, Sriram Iyer, Senior Research Analyst at Reliance Securities. (PTI)
Wall Street bounces off lows on Wednesday as UK steps in to calm bonds
Global equities staged a partial comeback on Wednesday — with Wall Street stocks surging around 2% — as the Bank of England said it would step in to the bond market in an attempt to dampen investors’ fears of contagion across the financial system.
The BoE said it would temporarily buy long-dated bonds – linked most closely to workers’ pensions and home loans – in light of a surge in UK bond yields and related borrowing costs.
Sterling, which hit record lows against the dollar on Monday, was last up about 1.4% in volatile trading.
Wall Street’s rebound gained momentum over the day, with the S&P 500 Index up about 2% after it fell to a two-year low on Tuesday. The Dow Jones Industrial Average also gained 1.9% and the Nasdaq Composite was up about 2%.
Weighing on growth stocks was Apple Inc, which was down about 1.3% on a report the tech company was dropping its plans to boost production of the latest model of its flagship iPhone. (Reuters)
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