Investors have their sights fixed on Washington as the Federal Reserve meets Tuesday and is expected to announce a 75 basis point interest rate increase. More central bank meetings are lined up this week with traders betting on further interest rate hikes from these banks to tame inflation.
In a session where most stocks have gained, Grasim Industries stock is under pressure
Regulator SEBI puts Go Digit’s public issue in abeyance
Financial market regulator Securities and Exchange Board of India (SEBI) has kept in “abeyance” the initial public offerings of Go Digit General Insurance.
“Issuance of observations kept in abeyance,” the market regulator said in its latest processing status of draft offer documents without giving any explanation.
As per SEBI (Issuance of Observations on Draft Offer Documents Pending Regulatory Actions) Order, 2020, issued by SEBI on February 05, 2020, SEBI is obligated to keep issuance of observations in abeyance for a period of 30 days or 45 days or 90 days or more, as the case may be.
Earlier, in mid-August, the insurance company, which is backed by Canadian billionaire Prem Watsa’s Fairfax Group, filed draft papers with the market regulator to raise funds through public issues. (ANI)
Rupee rises 16 paise to 79.65 against US dollar in early trade
The rupee appreciated 16 paise to 79.65 against the US dollar in early trade on Tuesday in line with a positive trend in domestic equities.
At the interbank foreign exchange, the domestic unit opened at 79.70 against the dollar, then touched 79.65, registering a gain of 16 paise over its previous close.
On Monday, the rupee settled 3 paise lower at 79.81 against the dollar.
The dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.15 per cent to 109.57. (PTI)
India sees drop in Covid cases, daily positivity rate at 1.37%
India saw a drop in daily Covid cases with 4,043 infections in last 24 hours, according to an update by the Union health ministry stated on Tuesday. The country saw a further drop in cases after it reported 4,858 Covid cases on Monday. The country’s active caseload has now dropped to 47,379 from 48,027 yesterday, as per the ministry data. (Full Story)
ICICI Direct and ICICI Securities on Aviation sector: Daily fliers remain steady
Market share movement in Aug’22: Indigo/Vistara witnessed market share erosion while Air Asia outperformed peers.
Market share movements include the impact of aircraft induction/retirement. For example, IndiGo inducted only one aircraft in Jul’22, which would have been in operation in Aug’22. However, IndiGo inducted 4 aircraft at the end of Aug’22, which can lift its market share by the end of Sep’22. Market shares for Air Asia and Air India will also depend on schedule planning at the group level.
Indigo/Vistara pax market share dipped 110/70bps to 57.7/9.7% in Aug’22.
Air Asia pax market share improved by 120bps MoM to 5.8%, while that of Go First rose 40bps MoM to 8.6%.
SpiceJet’s market share was at 7.9% (third consecutive month of decline).
Air India’s share of the pie stood at 9.7%, higher by a marginal 10bps MoM.
UN chief warns global leaders: The world is in ‘great peril’
Warning that the world is in “great peril,” the head of the United Nations says leaders meeting in person for the first time in three years must tackle conflicts and climate catastrophes, increasing poverty and inequality — and address divisions among major powers that have gotten worse since Russia invaded Ukraine.
In speeches and remarks leading up to the start of the leaders’ meeting Tuesday, Secretary-General Antonio Guterres cited the “immense” task not only of saving the planet, “which is literally on fire,” but of dealing with the persisting COVID-19 pandemic. He also pointed to “a lack of access to finance for developing countries to recover — a crisis not seen in a generation” that has seen ground lost for education, health and women’s rights.
Guterres will deliver his “state of the world” speech at Tuesday’s opening of the annual high-level global gathering. U.N. spokesman Stephane Dujarric said it would be “a sober, substantive and solutions-focused report card” for a world “where geopolitical divides are putting all of us at risk.”
“There will be no sugar-coating in his remarks, but he will outline reasons for hope,” Dujarric told reporters Monday. (PTI)
Ashika Stock Broking on today’s market: One can use intraday dip for creating long position for the target of 17900-18000.
Tirthankar Das, technical & derivative analyst, retail, Ashika Stock Broking Ltd: On the technical front, Nifty formed a bullish candle on the daily charts after two consecutive day of decline as it is placed within a broader 17.500-18,000 range head of FED event however gradually it can be expected for the Index to head higher towards January 2022 high of 18300 while the lower end the strong support level of 17350-17400 is likely to hold. The undergoing healthy consolidation will help to cool off the overbought conditions ahead of U.S. Fed event as secondary corrections are a part of the bull market that paves the way for next leg of up move as Nifty registered a bullish golden crossover in August (50-DEMA crossing above 200-DEMA) implying major shift of momentum from a medium-term perspective. Though one need to trade aggressively due to the presence of event risk in the market and the risk of a bare minimum correction of 23.6% of the entire rally from 15,183 to 18,096 comes around 17415 followed by 38.2% correction at 16990 still remains. 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 17900-18000.
Tata Motors soars, adds 4% in the morning session
All sectoral indices in green, Metal takes early lead with a gain of more than 1.5%
INDIA BONDS-Bond yields seen higher, tracking U.S. peers; Fed decision eyed
Indian government bond yields are expected to open marginally higher on Tuesday, tracking U.S. yields, as markets brace for another round of aggressive monetary policy tightening from the U.S. Federal Reserve.
The benchmark Indian 10-year government bond yield is seen in a 7.25%-7.30% band, a trader with a private bank said. The yield ended at 7.2769% on Monday and has risen 17 basis points in last four sessions.
“A hike of 75 basis points is already factored into prices, but if there is hawkish commentary, the Reserve Bank of India will be forced to act in a similar manner, which is keeping traders nervous,” the trader said. (Reuters)
Indices soar at open on Tuesday with Sensex gain 600 points and Nifty 180. IndusInd and Tata Motors gain
China a ‘close friend’ but India is ‘brother’ and ‘sister’: Sri Lanka envoy
Sri Lanka High Commissioner to India Milinda Moragoda on Monday referred to remarks of Mahinda Rajapaksa about the island nation’s relations with India and said that the former President of the country used to say that “China is a close friend but India is our brother and sister”. (Full Story)
Wipro appoints Dhruv Anand as country head and MD for Japan
Wipro Limited has appointment of Dhruv Anand as Country Head & Managing Director for operations in Japan. Dhruv will lead Wipro’s business expansion in Japan and will also partner with clients to help them achieve their growth ambitions by leveraging Wipro’s capabilities across the go-to-market themes of Experience, Data, Analytics & Insights, Engineering Edge, FullStride Cloud Services, Cybersecurity, Core Business Transformation, and Managed Services. (Full Story)
Sensex in green at preopen session on Tuesday; Adani Enterprise, Dish TV, Nestle India in focus
Geojit Financial Services view on today’s market: Indian market continues to show resilience despite global challenges.
Dr. V K Vijayakumar, chief investment strategist at Geojit Financial Services: Since globally markets are focused on Fedspeak on the 21st, major breaks from the present levels are unlikely for 2 days. A big correction after the Fed decision is possible only if the rate hike is by 100bp.
The Indian market continues to show resilience despite global challenges. Major indices like Nifty Bank, autos, FMCG and cement are at record levels with only Nifty IT dragging the benchmark indexes.
The real winners in this volatile market are investors who remained invested without much trading. This strategy may be continued in the near-term.
There is value emerging in IT for long-term investors.
India’s defense of Rupee takes large bite from record reserves
India’s intervention to protect the rupee is running down currency reserves at a rate that’s poised to eclipse the drawdown during turmoil a decade ago.
While economists and the Reserve Bank of India aren’t ringing any alarm bells just yet, investors are watching closely given the rupee’s slump to an all-time low last month and the risk of a widening in the current account deficit.
Given a steady buildup in the reserves through to their peak last year, they remain at a much healthier level than during the previous period that covered part of the Eurozone crisis and the taper tantrum triggered by the Federal Reserve.
That crisis saw the rupee tumble almost 30% against the greenback between September 2011 and September 2013, making it one of the worst-performing emerging-markets currencies at the time. It’s dropped about 6.8% against the greenback in 2022, which is a much smaller loss than that of most of its peers. (Bloomberg)
Apple to hike App Store prices in several countries from October
Apple Inc said on Monday prices of apps and in-app purchases on its App Store will increase in several countries including Japan, Malaysia and all territories that use the euro currency, from next month.
The new prices, excluding auto-renewable subscriptions, will be effective as early as Oct. 5, Apple said in a blog post.
These changes will also reflect new regulations for Apple in Vietnam to collect and remit applicable taxes, being value added tax (VAT) and corporate income tax (CIT) at 5% rates respectively, the company added. (Reuters)
Stocks to Watch: Adani Enterprises, Dish TV, Nestle India, ONGC, Olectra, Natco Pharma, Reliance, Ircon International, Future Supply Chains
Delta Corp, RBL Bank, PVR, India Cements, Escorts Kubota, and Indiabulls Housing Finance Ltd are put under the F&O ban list for Monday. 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. (Full Story)
Harsha Engineers IPO: Latest GMP ahead of share allotment. How to check application status online
The Initial Public Offer (IPO) of Harsha Engineers International got subscribed 74.70 times, led by strong demand from institutional buyers, on the last day of subscription that closed on Friday. The public issue received bids for 125.96 crore shares against 1.68 crore shares on offer, according to a data with the NSE.
The registrar for this IPO is Link Intime India Private Ltd, therefore the allotment application can be checked on the registrar’s website here or on the BSE website here. (Full Story)
Japanese stocks pare early gains ahead of Fed meeting
Japanese stocks marked slight gains in back-and-forth trading on Tuesday as investors braced for this week’s long-awaited U.S. Federal Reserve meeting, where the central bank is expected to announce another big rate hike to tackle inflation.
As markets resumed trading after a national holiday, the Nikkei share index opened 0.8% higher and rose as much as 1.23% before paring gains to finish up 0.42% at the break.
The broader Topix index added 0.43%.
Markets are fully pricing in a Fed rate hike of at least 75 basis points, with an 18% chance seen of a full percentage point rise. (Reuters)
Airlines struggle with scarcity of senior pilots
The civil aviation sector is facing a dichotomy about its pilots as it stages a recovery from the severe disruptions to air travel due to the pandemic.
While junior pilots have been waiting on the bench for the past two years with a letter of intent but without any salary, airlines are battling a paucity of captains who can fly bigger jetliners.
“There must be around 200 such pilots who have a letter of intent from IndiGo. Most were hired by the airline before covid but are waiting to get the call from the airline,” said an industry executive aware of the matter. (Full Story)
Cryptocurrency prices today gain: Bitcoin, ether surge about 4%. Check latest rates
Cryptocurrency prices today rose with Bitcoin trading above the $19,000 mark after remaining weak in the last few sessions, hampered by a further drop in the second largest token Ether as well as the prospect of a global wave of monetary tightening this week. Bitcoin, the world’s largest and most popular cryptocurrency was trading more than 4% higher at $19,476. (Full Story)
Kotak Securities market wrap for 19/09 : Despite the recovery, markets may gyrate sharply intra-day amid global uncertainty.
Shrikant Chouhan, head of equity research (retail), Kotak Securities Ltd: “While the undertone of the market remained volatile, a strong relief rally after the recent slump helped benchmark indices to rebound. While European markets and most of the Asian pack continued their downward spiral, the underperformance of the Indian markets last week prompted investors to buy the beaten-down stocks. Despite the recovery, markets may gyrate sharply intra-day amid global uncertainty. Technically, after an early morning fall, the Nifty found support near 17450/ (which is double bottom support level) and bounced back sharply and hovered between 17580-17665 levels. If the index trades above 17550 then the pullback formation is likely to continue. Above which, the index could touch the 20-day SMA level at 17675. On further upside, the index may rally up to 17800. On the flip side, below 17550 the index could retest 17450- 17400 levels.”
Assets of bankrupt companies can be sold in parts: IBBI
Insolvency and Bankruptcy Board of India (IBBI) has said that its latest regulations on corporate rescue allow administrators and lenders of bankrupt firms to invite bids for individual assets of the distressed company if they received no rescue plan for the entity as a whole the first time.
IBBI said in a statement that the idea is to maximise value in resolution. The amendments to regulations on ‘Insolvency Resolution Process for Corporate Persons’ issued last Friday enables the resolution professional and the committee of creditors to issue request for resolution plan a second time for sale of one or more of assets of the corporate debtor in cases where no resolution plan has been received for the corporate debtor as a whole. (Full Story)
Rajesh Palviya stock recommendations: 3 stocks to buy today — 20th Sept
This week’s trading session begins on a positive note with Sensex reaching over 59,000 and Nifty 50 above 17,600 on Monday. Indian equities recovered last week’s some losses. Bank Nifty picked up over 40,900. A rebound was witnessed in broader sectoral indices as investors were prompted to add beaten-down stocks to portfolios. Buying in FMCG, auto, and banking stocks offset the bearish tone of capital goods and metal stocks. Although, overall, global markets outlook remains volatile ahead of US Federal Reserve’s monetary policy outcomes. FOMC is set to meet from September 20 to 21. Expectations of another aggressive rate hike are on the cards from Fed. On Tuesday’s trading session, Rajesh Palviya, VP – Technical and Derivative Research, Axis Securities recommends three stocks to buy.
Buy Poonawala Fincorp at ₹323 with a stop loss of ₹315 target of ₹345
Buy Maruti Suzuki at ₹9295 with a stop loss of ₹9180 target of ₹9450
Buy Welspun Corp at ₹266 with a stop loss of ₹255 target of ₹280 (Full Story)
The views and recommendations made above are those of individual analysts, and not of Mint.
Olectra bags order worth ₹185 cr from Thane Municipal Transport Undertaking
Olectra Greentech Limited and Evey Trans Private limited (EVEY) consortium has received a Letter of Award from Thane Municipal Transport Undertaking for supply of 123 electric buses, Olectra said on Monday.
These buses will be supplied on a Gross Cost Contract (GCC) / OPEX model basis for a period of 15 years. The order value is ₹185 crore, Olectra said in a statement.
EVEY Trans will procure the Electric Buses from Olectra Greentech and shall be delivered in 9 months. Out of these 123 E-buses, 55 are (45 Air Conditioned and 10 Non-AC) 12-metre buses. The other 68 E-buses are (26 Air Conditioned, 42 Non-AC) -9-metres. (ANI)
Bengal cabinet nod for issuing LoI to Adani group for Tajpur deep sea port
The West Bengal cabinet on Monday approved a proposal for issuing a letter of intent to Adani Ports and Special Economic Zone for development of a greenfield deep sea port at Tajpur, paving the way for an estimated investment of ₹25,000 crore, a senior minister said.
The West Bengal Maritime Board will issue the LoI to the Adani group, who was the highest bidder for the mega project, state Urban Development Minister Firhad Hakim told reporters after the cabinet meeting held in the assembly.
“Following the technical and financial evaluation and completion of all formalities, the cabinet today accorded approval for issuance of letter of intent by West Bengal Maritime Board for development of the Tajpur port to the successful bidder, Adani Ports and Special Economic Zone (SEZ),” an official statement said. (PTI)
Domestic banks have sounded out Vedanta Group to express interest in funding semiconductor plant
Multiple domestic banks have sounded out Vedanta Group to express interest in funding the conglomerate’s proposed ₹1.54-trillion semiconductor plant in Gujarat, hoping to join an extensive project finance exercise. Lenders express interest in funding ₹1.54-tn Gujarat semiconductor plant. Troubled by rising interest rates, companies are going slow even on using loans that have already been sanctioned. (Full Story)
Yes Bank moves Bombay HC to direct Dish TV to hold EGM
Yes Bank Ltd has upped the ante in its more than a year-long fight against Subhash Chandra-owned Dish TV India Ltd as the bank has approached the Bombay High Court to direct the satellite TV provider to conduct a special shareholder meeting.
On Monday, a division bench of the high court admitted the petition filed by Yes Bank, which is the largest shareholder in Dish TV, owning 24.78%. The court will hear the petition on Tuesday on whether Dish TV should conduct an extraordinary general meeting (EGM). (Full Story)
Rupee falls 3 paise to close at 79.81 against US dollar
The rupee pared its initial gains and settled 3 paise lower at 79.81 against the US dollar on Monday, weighed down by the strength of the greenback in the overseas market.
A fall in crude oil prices and foreign fund inflows into equity markets, however, restricted the rupee losses.
At the interbank forex market, the local unit opened at 79.70 against the greenback. It witnessed an intra-day high of 79.59 and a low of 79.81 during the session.
It finally ended at 79.81, down 3 paise from its previous close of 79.78. (PTI)
Wall Street ends up thanks to technical rebound and bargain hunt
US stocks closed higher Monday thanks to a technical rebound and bargain-hunting after last week’s nightmarish run.
The Dow Jones industrial average gained 0.64%, the tech-rich Nasdaq was up 0.76% and the S&P 500 ended 0.69% higher.
All three indices had opened in the red Monday morning, before oscillating back and forth much of the day and finally gaining points before the close.
“I think today it really was about bargain hunting,” RegentAtlantic analyst Andy Kapyrin said.
Major Nasdaq stocks, such as Apple ( 2.5%), Meta ( 1.18%) and Nvidia ( 1.39%) all ended higher after struggling for several days.
After flagging Friday, FedEx ( 1.17%) was also in demand Monday, as was Gap ( 4.39%), which was hit by a downturn last week after its deal with designer and rapper Kanye West ended.
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