U.S consumer prices index (CPI) report showed CPI gaining 8.2% annually as rents surged by the most since 1990 and food prices rose. This fueled bets for a big Fed rate hike next month. This is after India’s retail inflation accelerated to a five-month high of 7.30% in September due to surging food prices.
Rupee falls 5 paise to 82.29 against US dollar
The rupee after opening on a positive note, pared the gains and slipped 5 paise to 82.29 against the US dollar amid high volatility in early trade on Friday.
At the interbank foreign exchange, the domestic unit opened at 82.26 against the dollar, then touched 82.12, registering a gain of 12 paise over its previous close. In initial trade, the rupee also touched 82.29 against the American currency.
On Thursday, the rupee had settled at 82.24 against the greenback. (PTI)
India festival spending booms despite inflation worries, global slowdown
Indian consumers are lapping up everything from cars, houses and television sets to travel and jewellery in the festive season that began last month, according to early data, giving a fillip to growth prospects despite economic gloom elsewhere in the world.
Online and offline sales during the Hindu festival period starting in the last week of September and lasting until early November are estimated to cross $27 billion, almost double the amount in the same pre-COVID period in 2019, and nearly 25% higher than last year, according to industry estimates.
The sales would include nearly $15.2 billion offline sales, compared to about $8.5 billion in 2019, according to the Confederation of All India Traders (CAIT). This year there will also be $11.8 billion worth of sales on online platforms like Amazon and Walmart’s Flipkart, according to Redseer, a market consultancy. (Reuters)
Angel One and Ashika Stock Broking views on today’s market
Sameet Chavan, Chief Analyst-Technical and Derivatives, Angel One Ltd: The cues from the US bourses yesterday morning were neutral to slightly on the positive side. Despite this, our markets had a weak opening and as the day progressed, we kept on shrinking like a slow poison. Fortunately, we witnessed some buying interest at lower levels and saw some recovery as we stepped into the last hour of the trade. With some wild swings at the end, Nifty concluded the session with over six-tenths of a percent loss.
Yesterday’s price action was slightly weird in our sense; because Dow Futures were trading firmly in the green and meanwhile, our markets continuously displayed a lack of strength. Fortunately, with the help of some recovery in the latter half, we managed to defend the 17000 mark on a closing basis. Taking a glance at the price action, we can see Nifty making identical lows since the last three sessions. This makes 16950 a key level for the coming trading session. Any sustainable move below this intraday support would lead to further weakness towards 16800 – 16750. As of now, we do not expect the possibility of this scenario, rather we remain hopeful of some sustainable relief rally in the US markets. This will trigger a strong up move in our markets towards 17200 – 17250 levels. In fact, if the market has to regain real strength, it needs to surpass 17250 with some authority. Let’s hope for the best as we are now placed at an interesting juncture.
Tirthankar Das, Technical & Derivative Analyst, Retail, Ashika Stock Broking Ltd: On the technical front, Nifty formed a small negative yesterday indicating underlying trend in the market continues to remain choppy however presence of strong demand zone around the crucial support level of 16950-16970 is likely to provide the necessary cushion for the market. Going ahead, it can be expected that the index to consolidate in the broader range of 17500-16700 amid stock specific action for a few sessions, while for the Index to end its prolonged correction, it needs to provide a decisive close above 17350. 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. However, amidst all the pessimism it can be expected that index is most likely to hold the key support of 16700 in the near term as it is confluence of 52 weeks EMA and the 50% retracement of June-August rally (15185-18070) at 16650 and the slower pace of retracement over the past few sessions is that the index shows inherent strength and a pullback is most likely. During the day index is likely to open on a positive note tracking positive global cues Hence, one can use intraday dip for creating long position for the target of 17400-17450.
Credit Suisse’s SPG unit said to draw interest from Mizuho
Mizuho Financial Group Inc. has emerged as a suitor for at least part of Credit Suisse Group AG’s securitized products group as the Swiss bank moves closer to a final deal, according to people with knowledge of the matter.
The Japanese bank is competing against parties including Apollo Global Management Inc., Centerbridge Partners, Pimco and Sixth Street, said the people, all of whom requested anonymity discussing private information.
Tokyo-based Mizuho, led by Chief Executive Officer Masahiro Kihara, recently said securitized products are a “core pillar” of its markets business in the Americas. The US is “a super-important market. It’s the second-biggest revenue and profit generator after Japan,” Kihara said in an interview in April, adding that there’s more room for what the bank can do in America. (Bloomberg)
Mindtree stock zooms after a stellar quarter, gains 3% in today’s trading
Multibagger stock hits upper circuit after receiving US order. Do you own?
Poojawestern Metaliks shares are one of the multibagger stocks that Dalal Street has produced in the post-Covid rebound. In the last two years, this BSE-listed stock has surged from around ₹11 to ₹59.35 apiece levels, delivering more than 400 per cent return to its shareholders in this time. However, the uptrend in the stock is still on. The small-cap company has recently got an export order from the US that attracted buying interest in the stock and the stock hit the upper circuit in early morning deals on Friday. Poojawestern Metaliks share price opened upside on Friday and hit the 5% upper circuit within a few seconds of the stock market’s opening bell today. (Read More)
Auto index among the indices which has gained more than a per cent in early trading with all stocks in green
Infosys shares surge post Q2 results, buyback announcement. Should you buy/hold?
Shares of Infosys Ltd surged nearly 5% to ₹1,487 apiece on the BSE in Friday’s opening deals after India’s second largest IT services company posted better-than-expected 11% year-on-year (YoY) rise in consolidated net profit at ₹6,021 crore for the second quarter ended September 2022 and announced buyback of shares worth ₹9,300 crore via open market route, for a price of up to ₹1,850 per equity share. (Read More)
Indices gain more than 1.5% at open on Friday with Sensex zooming past 58,000
Japan’s Nikkei set for best day since March as Fast Retailing soars
Japanese stocks rebounded on Friday, supported by a strong performance from Fast Retailing Co Ltd, while investors appeared to shrug off U.S. inflation print that fuelled bets for an oversized Federal Reserve rate hike next month.
The Nikkei share average jumped 3.44% to 27,141.18, and is on course to record its biggest day in nearly seven months if gains hold. The benchmark broke through the key 27,000 barrier for the first time in a week after four straight sessions of losses.
The broader Topix index gained 2.58%.
“The Nikkei fell by more than 1,000 in the previous four days of losses, so we can see buying towards a short-term rebound,” said Maki Sawada, a strategist at Nomura Securities. (Reuters)
Dividend paying stock revises record date for bonus share issue. Details here
Atam Valves shares are one of the dividend-paying stocks on Dalal Street that is soon going to trade ex-bonus this month. However, the board of directors of the multibagger stock has revised the record date for bonus shares from 12th October 2022 to 24th October 2022. The small-cap company has already declared bonus shares in a 1:1 ratio, which means one bonus share will be issued to each share held by the shareholders on the bonus shares record date. (Read More)
Sensex gains at the start of the preopen session. Infosys, Mindtree, Reliance, HDFC Life will be in focus today
Reliance Securities Stock in Focus for today: Larsen & Toubro
STOCK IN FOCUS
Larsen & Toubro (CMP 1,876)
We have a BUY rating on L&T, with a SOTP-based Target Price of Rs2,125.
TATAMOTORS (PREVIOUS CLOSE: 399) BUY
For today’s trade, long position can be initiated in the range of Rs397- 394 for the target of Rs412 with a strict stop loss of Rs390.
GNFC (PREVIOUS CLOSE: 663) BUY
For today’s trade, long position can be initiated in the range of Rs652- 648 for the target of Rs673 with a strict stop loss of Rs638.
SHREECEM (PREVIOUS CLOSE: 21,076) BUY
For today’s trade, long position can be initiated in the range of Rs20,900- 20,800 for the target of Rs21,450 with a strict stop loss of Rs20,500
Dolly Khanna portfolio: Ace investor trims stake in beaten down agro stock
Shares of Aries Agro are one of the beaten-down stock on Dalal Street. This agro stock has remained under sell-off heat throughout the year delivering zero YTD return for its positional investors. Such performance by this agriculture stock is astonishing for market observers because it belongs to the portfolio of Dolly Khanna who has a knack for betting on those stocks that tends to generate an alpha return over the passé of time. In fact, Dolly Khanna has also booked partial profit in Aries Agro stock. In Q2FY23, the ace investor trimmed her stake in the company from 1.25% to 1.10%. (Read More)
Expert views on why Nifty closed in red on Thursday – from LKP Securities, Geojit Financial Services, and Angel One
Rupak De, senior technical analyst at LKP Securities: Nifty remained volatile as the investors stayed on the sidelines ahead of US inflation data. The Nifty breached the psychological 17000 multiple times before closing above it in the final hour. The index has found support at 200DMA for the third consecutive day. The daily RSI is in a bullish crossover. Over the short term, the index may remain within a band. On the lower end, 16950 may act as support; whereas, 17300 may act as resistance on the higher end.
Vinod Nair, head of research at Geojit Financial Services: Retail inflation persisting above the desired levels has been a major cause of concern for the Indian economy. This, coupled with declining industrial production in August may not be taken well by the market because Indian economy is anticipated to sustain its resilience. In this backdrop, the impending US inflation figures, which are forecasted to remain high, may cause volatility in the global market.
Sameet Chavan, chief analyst-technical and derivatives, Angel One Ltd: Today’s price action was slightly weird in our sense; because Dow Futures were trading firmly in the green and meanwhile, our markets continuously displayed a lack of strength. Fortunately, with the help of some recovery in the latter half, we managed to defend the 17000 mark on a closing basis. Taking a glance at the price action, we can see Nifty making identical lows since the last three sessions. This makes 16950 a key level for the coming trading session. Any sustainable move below this intraday support would lead to further weakness towards 16800 – 16750. As of now, we do not expect the possibility of this scenario, rather we remain hopeful of some sustainable relief rally in the US markets. This will trigger a strong up move in our markets towards 17100 – 17250 levels. In fact, if the market has to regain real strength, it needs to surpass 17250 with some authority. Let’s hope for the best as we are now placed at an interesting juncture.
Stocks to Watch: Infosys, Mindtree, Reliance, HDFC Life, Tata Steel, Angel One, Anand Rathi Wealth, Coal India, MTNL, ONGC
Bajaj Auto, Shree Cements, Federal Bank, Tata Elxsi and Oberoi Realty will be in focus as they declare their September quarter earnings today. (Read More)
Bloodbath in crypto market after hot inflation data; Bitcoin lowest in 3 weeks
Bitcoin is in a bloodbath and the largest cryptocurrency in the world is currently at its lowest level since September 22. Broadly, the cryptocurrency market are in volatility tone due to US inflation which advanced to a 40-year high in September. Since May this year, the correlation between equities and Bitcoin has remained high.
Bitcoin has fallen to as low as $18,319.82 in the intraday trade on CoinMarketCap. The last lowest level of Bitcoin was at the $18,415 level witnessed on September 22 this year. (Read More)
Gold gains ₹42; silver drops ₹493
Gold prices in the national capital rose by ₹42 to ₹51,255 per 10 grams on Thursday amid a rise in the prices of the precious metal in the international market, according to HDFC Securities.
In the previous trade, the yellow metal had touched ₹51,213 per 10 grams.
However, silver dropped by ₹493 to ₹57,717 per kilogram from ₹58,210 per kg.
In the international market, gold was trading in green at USD 1,672.2 per ounce while silver was down at USD 19.03 per ounce. (PTI)
Delta Corp, Indiabulls Housing Finance stocks under F&O ban on NSE today
A total of two stocks have been put under the ban for trade on Friday, October 14, 2022, under the futures and options (F&O) segment by the National Stock Exchange (NSE). The securities have been put on ban under the F&O segment as they have crossed 95% of the market-wide position limit (MWPL), as per the NSE.
Delta Corp and Indiabulls Housing Finance stocks continue to be a part of the F&O ban list by the stock exchange for today. The NSE updates the list of securities in F&O ban for trade every day. (Read More)
Abhu Dhabi fund buys stake in Ashish Kacholia-owned multibagger stock that surged 650% in 2 years
Abu Dhabi Investment Authority (ADIA) — a globally-diversified sovereign wealth fund owned by the Emirate of Abu Dhabi — has bought stake in Ashish Kacholia portfolio stock Gravita India. As per the BSE bulk deals, ADAI has bought 5,56,493 Gravita India share in a bulk deal executed on 7th September 2022. The Abu Dhabi wealth fund bought these shares paying ₹332 apiece. This means the Ashish Kacholia portfolio stock has attracted foreign portfolio investment (FPI) to the tune of ₹18,47,55,676 or ₹18.47 crore. (Read More)
Irdai grants approval to merger of Exide Life into HDFC Life
Insurance sector regulator Irdai has granted final approval to HDFC Life Insurance Company Ltd (HDFC Life) to merge Exide Life into the company.
In January this year, HDFC Life acquired 100% stake in Exide Life Insurance Company from its parent firm Exide Industries for ₹6,687 crore in order to increase its presence in the south India market.
The Insurance Regulatory and Development Authority of India (Irdai), vide its letter dated October 13, 2022, has given its final approval to the scheme of amalgamation and transfer of life insurance business, HDFC Life said in a regulatory filing on Thursday.
With the transfer of its life insurance business to HDFC Life, Exide Industries acquired 4.12% stake in HDFC Life. (PTI)
An Adani Group firm may soon have higher rating than the sovereign
An Adani Group company is expected to soon be rated above India’s sovereign rating, the group’s CFO Jugeshinder (Robbie) Singh told a select group of investors on 10 October in the national capital, according to a PTI report.
The Adani Group CFO further said that an announcement will soon be made of one of the group firms becoming the first Indian firm with all its business in the country, to be rated higher than the sovereign.
However, the company is yet to be named.
The move comes amid lower debt and rapid growth in business for the ports-to-energy conglomerate helmed by Gautam Adani, Asia’s richest man.
Most firms including public sector giants are rated at par or below the sovereign rating. (Read More)
India’s Sept oil demand remains robust, 2022 consumption on track: S&P Global Commodity Insights
India’s September oil product demand was flat month on month but up on the year by 334,000 b/d on a weak base in the previous year, driven by diesel and petrol consumption, which were up by 179,000 barrels per day (b/d) and 65,000 b/d, respectively, a report said.
Modest growth was also seen for other products such as LPG, kerosene/jet fuel, fuel oil and minor products, except naphtha which declined by 21,000 b/d, according to the research and analysis of S&P Global Commodity Insights.
The report said indicators of mobility remained robust in early October at 24 per cent higher than pre-pandemic levels and 0.9 per cent over September’s levels, based on Google data. As per AirNav Radar Box, India’s domestic flight travel in early October was 7 per cent below pre-COVID-19 levels, improved by 3 percentage points from September. International travel was down 16 per cent from pre-pandemic levels in early October, unchanged from levels in September. (ANI)
SIA, Tatas in talks over Vistara-Air India merger
Singapore International Airlines (SIA) on Thursday said it is in talks with the Tata group to explore a potential transaction related to full-service airlines Vistara and Air India, which may include an integration of the two airlines. Currently, Tata group holds a 51% stake in Vistara, while Singapore Airlines owns 49%. The discussions are in line with its multi-hub strategy to secure access to important sources that complement its strong Singapore hub, the airline said. (Read More)
Mindtree reports 27.5% jump in net profit for Sep quarter
Mid-cap IT services company Mindtree reported 27.5% rise in net profit for the September quarter, despite other income declining 35% to ₹508.7 crore from ₹398.9 crore in the year-ago quarter.
The company has registered 44% growth in its order book on a total contract value (TCV) basis to $518 million during the three-month period, taking its deal value for H1FY23 to over $1 billion for the first time.
Dollar revenue grew 20.6% to $422.1 million in Q2 versus $350.1 million in the year-ago. Rupee revenue was up 31.5% to ₹3,400.4 crore from ₹2,586.2 crore in the year earlier. (Read More)
Infosys Q2 Results: Profit rises 11%, raises FY23 revenue guidance
India’s second top IT company Infosys Ltd has announced its earnings for the second quarter ended September 2022 for the current fiscal or Q2 FY23 on Thursday, after market hours. The company has also announced share buyback worth ₹9,3000 crore along with an interim dividend of ₹16.5 per share. Infosys shares closed about 0.7% lower ahead of its Q2 announcement.
Infosys has hired 40,000 freshers, and the full-year target of 50,000 may go up, the IT services major said while announcing results for the quarter. (Read More)
Rupee falls 5 paise to close at 82.38 against US dollar
The rupee traded in a narrow range and settled 5 paise lower at 82.38 against the US dollar on Thursday, tracking a muted trend in domestic equities amid weak domestic macroeconomic data.
Besides, risk aversion sentiment among investors weighed on the local unit.
At the interbank foreign exchange, the rupee witnessed range-bound trading. It opened at 82.30 against the US dollar, then fell further to close at 82.38, registering a fall of 5 paise over the last close. It was moving in a tight range of 82.25 to 82.42.
On Wednesday, the rupee fell by 12 paise to close at 82.33 against the greenback. (PTI)
Wall Street rebounds with a vengeance after initial inflation sell-off
Wall Street stock indexes made a dramatic recovery, closing sharply higher after an earlier sell-off on Thursday while the dollar gave up earlier gains as investors poured back into riskier bets after digesting a red-hot U.S. inflation reading that fueled bets for a big Federal Reserve rate hike next month.
Traders reversed course after initially flipping to safety mode when the U.S. Labor Department’s consumer prices index (CPI) report showed headline CPI gaining 8.2% annually as rents surged by the most since 1990 and food prices rose. Core CPI, which excludes food and fuel prices, beat forecasts at 6.6%.
The dollar fell against most currencies as investors ended up taking the opposite approach to the market’s initial response to the data. The greenback had briefly hit a 32-year peak against the yen of 147.665 before paring gains. [FRX]
On Wall Street, the S&P 500 closed the session up 2.6% after declining 5.7% in the previous six sessions. Earlier Thursday it fell 2.3% to its lowest level since Nov. 2020. (Reuters)
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