Stock Market LIVE: Sensex down 300 pts, Nifty down 100; Rupee at all-time low

Singapore-based FII buys stake in small-cap company. Stock hits upper circuit

Singapore-based foreign institutional investor Nav Capital VCC- Nav Capital Emerging Star Fund has bought stake in small-cap company EP Biocomposites Ltd. After this stock market newsbreak, EP Biocomposites shares opened with an upside gap in early morning deals and hit upper circuit within few minutes of the opening bell. (Full Story)

Bajaj Finserv drops around 2.5% in today’s trading, drags Financial Service index

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Want to make sure India-UK FTA is first step in continually evolving trade, economic relationship: UK Foreign Secretary

Prime Minister Narendra Modi has set a very ambitious desire to get the India-UK Free Trade Agreement signed by Diwali and his new British counterpart Liz Truss wants her administration to “match the pace and ambition” of the Indian leader, UK Foreign Secretary James Cleverly has said.

Cleverly also said that the bilateral relationship between India and UK is longstanding and wide-ranging, which is both a “huge plus” but it also means that “quite understandably there is a desire to have a very, very wide-ranging, meaningful free trade agreement.”

“Obviously, Prime Minister Modi has set a very ambitious desire to get a free trade agreement signed by Diwali. Now that means that both us and Indian negotiators are going to have to work very, very hard but we are very willing to do so,” Cleverly told PTI in an interview here Wednesday on the margins of the high-level UN General Assembly session. (PTI)

 TCS, Infosys shares trade near 1-year lows as IT stocks remain under pressure

Shares of Tata Consultancy Services (TCS) and Infosys have fallen significantly this year amid the underperformance of the Indian IT stocks as analysts see more pain for the sector and a potential slowdown in dollar revenue growth in the face of impending macroeconomic stress. The IT index has been one of the worst hit sectors, falling over 27% so far this year, underperforming benchmark Nifty 50 index. (Read More)

Gautam Adani’s fortune fails to halt rout in Adani group bonds

Surging share prices of Gautam Adani’s companies have helped make him the world’s second-richest person. The bond market isn’t quite as enthusiastic.

In the debt market, Adani Ports’ dollar bonds have dropped more than Indian peers on concern about the group’s debt, and its notes due in August 2027 fell to an all-time low this week, Bloomberg-compiled prices show. Bonds of group companies including Adani Green Energy Ltd. and Adani Transmission Step-One Ltd. also mostly underperformed the broader Indian market.

The diverging moves suggest that high debt poses risks to Adani’s success story that saw his net worth shoot up to only trail Elon Musk’s, the Bloomberg Billionaires Index shows. (Read More)

Bank index under pressure as it sheds more than 1%; almost all stocks in red

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Today’s outlook on Nifty by Angel One and Ashika Stock Broking  

Sameet Chavan, chief analyst-technical and derivatives, Angel One Ltd: Technically speaking, the index seems tentative at higher levels and again slipped in the broad consolidation range. However, the undertone is likely to remain in favor of the bulls, and as far as levels are concerned, the 17820-17860 zone still holds the sturdy wall for the index and any persistent breakthrough could only open the gates for further upside. On the flip side, 17540 – 17500 has seen some strong resurgence in providing vital support and thus could be seen as a crucial juncture to add longs for intraday dips, while the sacrosanct support lies at the 17400 mark.

Going forward, the market is likely to remain volatile, mirroring the global bourses. We reiterate to keep a close tab on the mentioned levels. Also, one should continue with the stock-specific approach, as even though the indices may not be doing much, the individual stocks are not at all short of action. Hence one should continue to identify such potential movers and trade accordingly.

Tirthankar Das, technical & derivative analyst, retail, Ashika Stock Broking Ltd: On the technical front, small negative candle was formed in Nifty in daily time frame following sharp reactionary correction for the past two consecutive days indicating broader range consolidation in the market. Market breadth too turned negative. The 14-period RSI turned weak trading below the 60-level mark. Overnight Fed raised rates sharply, by 75 basis points – the third such rise in a row against which US Indices see-sawed before slumping to end all three benchmarks down by more than 1.7%, coming back to Indian market, with the fading of the event risk one cannot deny that secondary corrections are a part of the bull market which would pave the way for next leg of up move. Though one need to avoid trading aggressively in the market but 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 remains. During the day index is likely to open with a huge gap down, traders during the day should show patience and wait for Index to cool-off. As long as the all-important support level of 17350 remains strong, the medium-term outlook in the Index to remain positive.

Rupee slumps 51 paise to all-time low of 80.47 against US dollar

The rupee depreciated 51 paise to an all-time low of 80.47 against the US dollar in early trade on Thursday after the US Federal Reserve’s interest rate hike and its hawkish stance weighed on investor sentiments.

At the interbank foreign exchange, the local currency was trading at 80.47 against the dollar, down 51 paise from its previous close. The rupee opened at 80.27 and touched a record low of 80.47 a dollar in initial deals.

Forex traders said the strength of the American currency in the overseas market, a muted trend in domestic equities, risk-off moods and firm crude oil prices weighed on the local unit.

On Wednesday, the rupee declined 22 paise to close at 79.96 against the dollar. (PTI)

ITC shines in early trading, gains almost 2%

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Kotak Securities and Geojit Financial Services’ outlook on Nifty

Sahaj Agrawal, head of research- derivatives at Kotak Securities: “Nifty has been in a corrective phase since the last few trading sessions. We have not seen a short term reversal attempt succeeding and hence maintain a negative bias for the near term. Monthly support is only seen at 17000. US Fed comments are expected to keep volatility high in the near term. Expect consolidation to correction in the near term as the broader market sentiment has also turned negative. FII and PRO positions also suggest reduction in net shorts suggesting limited downside in near term. For Nifty, maximum OI buildup seen at 17000 Put and 18000 Call Option. For Bank-Nifty, maximum OI buildup is seen at 40500/41000 put and 41500/42000 call options. For the expiry day, expect nifty to trade with resistance of 17950 – any move above the same can invite short covering.”

Anand James – chief market strategist at Geojit Financial Services: The feeble bounce off 17700 vicinity did not inspire confidence in extending upsides. Neither did the distribution pave way for a collapse. But we have been trading closer to +2 standard deviation band of the last 100 days for a while, which has increased the odds of a turn lower. Meanwhile, prospects of surprise bounce back will improve, should Nifty float above or pull back from below 17560. Else, expect 17000, which is in the vicinity of the 200-day sma, to keep pulling prices lower.

Nifty weekly contract has highest open interest at 18100 for Calls and 17100 for Puts while monthly contracts have highest open interest at 18100 for Calls and 17400 for Puts. Highest new OI addition was seen at 18000 for Calls and 17500 for Puts in weekly and at 18000 for Calls and 17500 for Puts in monthly contracts. FIIs increased their future index long position holdings by -4.17%, increased future index shorts by 15.11% and in index options by 15.19% in Call longs, 6.80% in Call short, 36.36% in Put longs and -5.01% in Put shorts.

Harsha Engineers IPO: Check GMP as all eyes on shares listing after allotment

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 finalisation of the share allotment of Harsha Engineers IPO has been done. As per market observers, Harsha Engineers shares are available at a premium (GMP) of ₹170 in the grey market today. The company’s shares are expected to list on leading stock exchanges BSE and NSE on Monday, September 26, 2022. (Read More)

Gold rates today in India fall to 7-month lows after Fed rate hike

Gold and silver prices in India fell today in tandem with a drop in international prices. On MCX, gold futures were near 7-month lows of ₹49,321, down 0.25%, while silver fell 0.4% to ₹57,059 per kg. In global markets, spot prices of gold fell 1% to $1,656.97 per ounce, buffeted by a strong dollar and firm bond yields after US Federal Reserve overnight increased interest rates by another 75 basis points and signalled more hikes. US Treasury two-year yields, which closely track the Fed rates, rose further above 4% to the highest since 2007. (Full STory)

Oil & Gas Index sheds at the start, down 0.5%; most stocks in red.

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Sensex down 350 points and Nifty 80 at open on Thursday. Bajaj Finserv and HDFC sink at open

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India’s banking system liquidity may remain in deficit in second half – analysts

Liquidity in India’s banking system is likely to remain in deficit in the second half of this financial year as credit growth picks up and the circulation of currency notes rises, analysts said.

The country’s banking liquidity slipped into deficit on Tuesday for the first time in over three years, according to data from the Reserve Bank of India.

A widening liquidity deficit could lead to a rise in short-term borrowing rates and prompt the Reserve Bank of India to pump in money into the banking system through repo auctions and slow down its interventions in the currency market. (Reuters)

IT stock fixes record date for 1:10 stock split. Details here

The board of directors of IT company, Saksoft Ltd has fixed record date for stock split. The board of debt-free company has fixed 26th September 2022 as record date for subdivision of company stocks. The digital service provider company has already approved and declared stock split in 1:10 ratio announcing subdivision of existing equity shares from one equity share of ₹10 each into 10 equity shares of ₹1 each. (Read More)

Sensex tumbles 500 points at preopen session on Thursday; REC, Power Finance Corp, Wipro, SpiceJet in focus

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Asia stocks follow Wall St down as Fed fights inflation

Asian stock markets followed Wall Street lower on Thursday after the Federal Reserve delivered another big interest rate hike to cool galloping inflation and raised its outlook for more.

Shanghai, Tokyo, Hong Kong and Sydney declined. Oil prices gained.

The Shanghai Composite Index lost less than 0.1% to 3,115.94 and the Nikkei 225 in Tokyo slid 0.9% to 27,060.89. Hong Kong’s Hang Seng tumbled 1.9% to 18,094.62.

The Kospi in Seoul sank 1.4% to 2,315.24. New Zealand edged up 0.1% while Southeast Asian markets declined. (AP)

Geojit Financial Services views on today’s market: Investors can remain optimistic but be cautious since India’s valuations are on the higher side

Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: “While the Fed’s 75bp rate hike and reiteration of the hawkish message were on expected lines, indication that the terminal rate is likely to be 4.6% was higher than market expectations. US 10-year bond yield spiking above 3.5% and the dollar index above 111 are unnerving for equity markets. Now the market feels that the probability of a US recession has increased to 75%. In the backdrop of sharply slowing Eurozone and China, this is bad news for global growth.

The big question from the Indian market perspective is whether India’s outperformance will continue in the present global risk off context. Investors can remain optimistic but be cautious since India’s valuations are on the higher side. Financials, capital goods, select autos, telecom and construction related stocks can be bought on declines.”

Cryptocurrency prices today under pressure: Bitcoin falls 3%, ether 6%; Uniswap gains

Cryptocurrency prices today came under pressure after the US Federal Reserve delivered another big interest-rate hike and warned of economic pain from the aggressive policy tightening still to come. The Fed’s determination to raise rates to levels that hammer inflation at the cost of sliding asset prices sent a chill across global markets. (Read More)

Nifty likely to open 150 pts lower on Fed hike news

The Nifty could gap down by around 150 points or 0.8% at the opening, cues from its derivative SGX Nifty show. This comes after the US Fed delivered the third straight 75 basis point hike overnight, taking the Fed Funds Rate to 3-3.25% range, the highest since before the 2008 Global Financial Crisis, and as priced in by the markets. (Full Story)

Reliance Securities Stock in Focus for today: Prince Pipes

STOCK IN FOCUS

Prince Pipes (CMP Rs.594)

In view of the healthy volume and series of strategies for the next level of growth, we have our BUY rating on the stock, with a Target Price of Rs700.

Intraday Picks

EICHERMOT (PREVIOUS CLOSE: 3682) SELL

For today’s trade, short position can be initiated in the range of ₹3700-3730 for the target of Rs.3600 with a strict stop loss of ₹3800.

JSW STEEL (PREVIOUS CLOSE: 685) SELL

For today’s trade, short position can be initiated in the range of ₹690-696 for the target of Rs.670 with a strict stop loss of ₹702.

NTPC (PREVIOUS CLOSE: 169) BUY

For today’s trade, long position can be initiated in the range of ₹165- 167 for the target of Rs.172 with a strict stop loss of ₹163.

Stocks to Watch: SBI, REC, Wipro, SpiceJet, Power Finance Corp, Triveni Turbines, Dodla Dairy, Ashoka Buildcon, IDBI Bank, Kirloskar Oil Engines

Ambuja Cements, Delta Corp, RBL Bank, PVR, Can Fin Homes, and Escorts Kubota will be under the F&O ban list for Thursday. 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)

DoT introduces Draft Telecom Bill to provide relief to stressed carriers, eases M&A rules

The telecom department has put the Draft Indian Telecommunications Bill, 2022 up for stakeholder comments, by October 20, under which the framework for mergers and acquisitions will be simplified and relief, write-off or deferment of dues may be allowed in cases of payment default in extraordinary circumstances.

The bill seeks to simplify the framework for mergers, demergers and acquisitions, or other forms of restructuring, by only requiring intimation to the licensing authority. (Read More)

Reliance Retail eyes Sephora India rights

Reliance Retail is in advanced talks to get the rights for beauty retailer Sephora in India, two people familiar with the development said. The move could see Sephora operations transfer from Arvind Fashions Ltd., its current partner, to Reliance Retail. Arvind Fashions holds Sephora’s master franchise rights for India.

The move comes as Reliance Retail sets its eyes on the beauty and personal care market in India after dominating the apparel retail segment in the country. India’s beauty retail market is expected to reach ₹2 trillion by 2025 driven by a higher propensity to shop online. (Full Story)

INDIA RUPEE-Rupee seen at record low after Fed signals more aggressive rate hikes

The Indian rupee is seen hitting a record low against the dollar on Thursday after the U.S. Federal Reserve hiked rates by 75 basis points on Wednesday and indicated more large rate hikes.

The rupee is expected to open around 80.25-80.30 per U.S. dollar in early trades, down from 79.9750 in the previous session. The previous record low for the local unit was 80.12 reached late in August.

The Fed’s interest rate projections were “way more hawkish than expected” and the “damage we are seeing on Asian currencies should see rupee move comfortably below 80 at open”, a trader at a Mumbai-based bank said.

“It is quiet clear that what happens after the open will depend upon the RBI (Reserve Bank of India),” the trader said.

The RBI had swiftly intervened when rupee dropped below 80, according to traders. (Reuters)

Multibagger chemical stock turns ₹1 lakh to ₹2 crore in 5 years after 2:1 bonus shares

Shares of Jyoti Resins and Adhesives are one of the multibagger stocks in India. This multibagger chemical stock recently trade ex-bonus that turned out like icing on the cake for long term shareholders of the company. This was the first occasion when the chemical stock has given bonus shares in 2:1 ratio that means two bonus shares for each shares held by its shareholders. In last five years, this chemical stock has surged from ₹25 to ₹1,656 apiece levels, appreciating more than 6,500 per cent in this period. (Read More)

Future Enterprises defaults on ₹15.73 cr interest dues on non-convertible debentures

Kishore Biyani’s Future Enterprises announced defaulting on over ₹15.73 crore interest dues on non-convertible debentures (NCDs). The due date for payment of interest on NCDs was September 20, 2022. These debentures are secured and in two series. On Wednesday, the company’s shares witnessed upside despite broader bearish markets.

The interest was due on Rated, Listed, Secured, Redeemable, Non-Convertible Debentures in series XVI-C and series XVI-D. There are four investors in both series as on the date of default. ( Full Story)

India’s palm oil imports to jump on rising demand, lower prices

India’s palm oil imports in 2022/23 could jump 9% from a year earlier on a rise in domestic consumption and as competitive prices allow the tropical oil to regain its share in the world’s biggest market, a Reuters survey showed on Wednesday.

The higher buying could help top producer Indonesia in bringing down ballooning inventories and support benchmark Malaysian palm oil prices, which have nearly halved from record highs earlier this year.

Palm oil imports in the new marketing year starting from Nov. 1 could rise to 8.4 million tonnes from 7.7 million tonnes this year, according to the average estimate of nine dealers and one industry official polled on the sidelines of the Globoil conference in Agra.

“Consumption will improve in the new year as prices have corrected and demand has also been rising with opening up of the economy,” B.V. Mehta, executive director of Solvent Extractors’ Association of India, said.

Indian demand weakened this year due to COVID lockdowns and record high edible oil prices, he said. (Reuters)

INDIA BONDS-Bond yields seen higher tracking U.S. peers, hawkish Fed to hurt

Indian government bond yields are expected to rise in early trading on Thursday, tracking a spike in U.S. yields, after the Federal Reserve hike interest rate by 75 basis points and signalled more increases to battle elevated inflation.

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 7.2326% on Wednesday.

“There should be a gap up opening in terms of yields today but, after the initial selloff, we may see yields stabilising, as the outcome was not completely out of the box,” the trader said.

“It is also possible that after the initial few minutes, yields may stabilise and some buying may emerge.” (Reuters)

After crude, Centre now expedites plan to set up strategic gas reserve

India is expediting a plan to set up a strategic gas reserve on the lines of its strategic petroleum reserve (SPR), amid a global energy crisis triggered by the Russia-Ukraine conflict that has sent fuel prices soaring. Existing LNG tunnels and exhausted oil wells are likely to be utilized for the gas reserve, along with the construction of new underground infrastructure such as large salt caverns. (Full Story)

Wipro sacked 300 employees after discovering they were working concurrently for rival technology services companies

Wipro Ltd sacked 300 employees after discovering they were working concurrently for rival technology services companies, including Infosys Ltd and Tech Mahindra Ltd, toughening its stance against moonlighting and reaffirming that the company will not tolerate dual employment.

All sacked employees had fewer than three years’ work experience.

Infosys warned its employees in an email earlier this month against the practice, TCS called it an ethical issue. (Full Report)

Gold gains ₹152; silver jumps ₹333

Gold prices in the national capital rose by ₹152 to ₹49,871 per 10 grams on Wednesday, amid a rise in international precious metal prices along with rupee depreciation, according to HDFC Securities.

In the previous trade, the yellow metal had closed at ₹49,719 per 10 grams.

Silver also jumped by ₹333 to ₹57,406 per kilogram from ₹57,073 per kg in the previous trade. (PTI)

Rupee falls 22 paise to close at 79.96 against dollar on forex outflows

The rupee declined by 22 paise to close at 79.96 against the US dollar on Wednesday, tracking the strength of the American currency in the overseas markets and a muted trend in domestic equities.

Forex traders said investors are awaiting the US Fed’s policy decision on interest rates for further cues. Moreover, risk-off mood and firm crude oil prices weighed on the local unit.

At the interbank foreign exchange market, the domestic currency opened at 79.81 per dollar. It hovered in a range of 79.79 to 80.01 during the session.

The rupee finally settled at 79.96, down 22 paise over its previous close. On Tuesday, the rupee had closed 7 paise higher at 79.74. (PTI)

The Fed’s 75-bps rate hike: Powell says ‘strongly resolved’ to bring inflation down

The Federal Reserve on Wednesday raised the key US interest rate again and signalled more hikes are coming as it battles soaring prices – an aggressive stance that has raised fears of an eventual recession. 

It was the third consecutive increase of 0.75 percentage point by the Fed’s policy-setting Federal Open Market Committee (FOMC), continuing the forceful action to quell inflation that has surged to the highest in 40 years.

Speaking at a news conference after the Federal Reserve raised its key interest rate, Fed Chair Jerome Powell said officials were ‘strongly committed’ to curbing inflation. (Full Story)

US stocks fall, dollar gains as Fed unveils latest big rate hike

Wall Street stocks tumbled and the dollar rallied Wednesday after the Federal Reserve announced another large interest rate increase and signalled it expects more monetary tightening ahead to fight inflation.

The US central bank announced its third consecutive interest rate increase of 0.75 percentage point, continuing the forceful action to tamp down inflation that has surged to the highest in 40 years.

US stocks had climbed ahead of the announcement, following positive sessions on leading European bourses and declines in Asia.

Equities gyrated after the Fed press release before taking a final decisive push lower during Fed Chair Jerome Powell’s news conference. The S&P 500 ended down 1.7%.

“The higher-for-longer narrative kicked in,” Art Hogan, analyst of B. Riley Wealth Management, said of the market’s reaction to an announcement that was more “hawkish” than expected. (AFP)