The Bank Nifty logged a lifetime high for the second consecutive session and the BSE Sensex hit a record closing high on Wednesday. However, negative outlooks and softer demands heading into the holiday season in the US will compel investors to remain pessimistic.
IT index sheds 1% with all stocks trading in red in today’s session
Paytm share price tumbles nearly 10% as Softbank seeks to cut stake
Shares of One 97 Communications Ltd (Paytm) tumbled about 10% to ₹541 apiece on the BSE in Thursday’s opening deals as a unit of Japan’s SoftBank Group Corp offered to cut its stake in the company. About 29.5 million shares, equivalent of 4.5% of the company’s equity capital, were traded in a single block on the NSE, according to data compiled by Bloomberg.
The trade pulled down shares of Paytm to their biggest plunge since July 29. Reports on Wednesday suggested that Japan’s SoftBank will sell a third of its stake in One97 Communications Ltd, the owner of the Paytm payments app, through a $200 million block deal. (Read More)
Tata Motors sheds 2% in early trading
Tata Motors said in a BSE filing on Wednesday, “We wish to inform you that Mr Thierry Bolloré, Non-Executive Non-Independent Director of Tata Motors Limited (the Company) has tendered his resignation w.e.f. December 31 2022.”
Geojit Financial Services on today’s market: The mid- and small-cap indices are likely to remain weak.
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: “The fact that Sensex and Nifty are at record closing highs tells us that the Buy on Dips strategy has worked well in this market. Therefore, this strategy can be expected to work, going forward, too. High quality stocks in banking, IT, telecom and capital goods form the backbone of this large-cap driven rally. Dips in this segment are likely to get bought. India is the only large market that crossed previous record highs. This will stand the market in good stead. Even though the mother market US has turned a bit weak, the sustained fall in US bond yields is a positive for emerging markets like India. The mid- and small-cap indices are likely to remain weak.”
Indices open marginally in the red zone with Sensex shedding around 100 points and Nifty 40 points.
Oil falls as geopolitical tensions ease, China COVID concerns return
Oil prices fell for a second day in early Asian trade on Thursday as concerns over geopolitical tensions eased and rising numbers of COVID-19 cases in China added to demand worries in the world’s largest crude importer.
Brent crude futures dropped by 62 cents, or 0.7%, to $92.24 a barrel by 0110 GMT. U.S. West Texas Intermediate (WTI) crude futures fell 65 cents, or 0.8%, to $84.94 a barrel.
Brent dropped by 1.1% and WTI declined by 1.5% on Wednesday after Russian oil shipments via the Druzhba pipeline to Hungary restarted.
“Crude oil fell after NATO cleared Russia’s missile attack on Poland, while demand concerns (are) back to trader’s focus amid ongoing China’s COVID curbs and gloomy global economic outlooks,” said Tina Teng, an analyst at CMC Markets. (Reuters)
Bitcoin, ether, dogecoin, other crypto prices continue to remain under pressure
In cryptocurrencies, the world’s largest and most popular digital token Bitcoin’s price today was trading nearly 2% lower at $16,588. The global crypto market cap today remained below the $1 trillion mark, as it was almost down over a per cent in the last 24 hours to $870 billion, as per CoinGecko.
On the other hand, Ether, the coin linked to the ethereum blockchain and the second-largest cryptocurrency, also plunged by more than 4% to $1,208. (Read More)
Sensex preopens flat on Thursday; SBI, Paytm, Tata Motors stocks are in focus today
UK Paints(India) acquires 50.092% stake in Berger Paints
U.K Paints (India) Ltd on Wednesday announced that it has acquired 50.09 per cent stake in Berger Paints. UK Paints (India) acquired the shares through open market operations.
Berger Paints India reported a consolidated net profit of ₹219.51 crore for the second quarter, up marginally from ₹219.21 crore in the year-ago period. (Read More)
“Remain watchful,” RBI Governor’s advice to heads of banks amid global headwinds
Reserve Bank of India Governor Shaktikanta Das chaired meetings with Managing Directors and Chief Executive Officers of public sector banks and certain private sector banks on Wednesday.
The meetings were also attended by Deputy Governor M. K. Jain along with a few senior officials of the RBI, the central bank said in a statement.
Governor Das acknowledged the crucial role played by the commercial banks in supporting economic growth throughout the turbulent times since the outbreak of the pandemic and the ongoing financial market turmoil.
Das further stated that despite challenges, the Indian banking sector has remained resilient and continued to improve in various performance parameters. (ANI)
IMF: calibrating China’s COVID strategy critical to sustaining recovery
Calibrating China’s zero-COVID strategy to mitigate the country’s economic impact will be critical to sustain and balance the recovery, Gita Gopinath, the first deputy managing director of the IMF, told the Caixin Summit on Thursday.
“For China, inflation and weakening growth allow for greater support for vulnerable households, which together with strengthening social safety nets would promote consumption,” she said via video. (Reuters)
Reliance Securities Stock in Focus for today: ENGINEERS INDIA
STOCK IN FOCUS
ENGINEERS INDIA (CMP 73)
Considering its asset-light business model, strong clientele base, foray into newer segments and healthy execution track record, we have our BUY rating on ENGR, with a SOTP-based Target Price of Rs100.
CONCOR (PREVIOUS CLOSE: 762) BUY
For today’s trade, long position can be initiated in the range of Rs758- 754 for the target of Rs779 with a strict stop loss of Rs743.
SIEMENS (PREVIOUS CLOSE: 2,880) BUY
For today’s trade, long position can be initiated in the range of Rs2,860- 2,840 for the target of Rs2,940 with a strict stop loss of Rs2,799.
DALBHARAT (PREVIOUS CLOSE: 1,708) BUY
For today’s trade, long position can be initiated in the range of Rs1,692- 1,684 for the target of Rs1,765 with a strict stop loss of Rs1,665.
Multibagger fashion stock hits 5% upper circuit on six days in a row
Filatex Fashions shares are one of the multibagger stocks that Dalal Street has produced in recent years. This stock has delivered over 400 per cent in the last four years and the stock is still maintaining its uptrend. This small-cap stock with a market cap of ₹236 crore has been climbing to its 52-high for the last six straight sessions. In fact, this multibagger small-cap stock has been hitting 5% upper the last six days in a row and climbing to new 2-week highs. (Read More)
Indian refiners becoming wary of buying Russian oil as EU sanctions loom – sources
Indian refiners are wary of buying Russia crude oil loading after Dec. 5 when European Union sanctions take effect, pending clarity on the proposed G7 price cap mechanism, according to sources familiar with the refiners’ crude purchase plans.
Chinese refiners have already begun slowing down Russian oil imports from next month.
The Asian giants, who are two of the world’s top three importers, had become Russia’s biggest customers after the West shunned Russian oil after the outbreak of war in Ukraine.
Reduced buying by both of them would leave Russia chasing alternative customers, potentially depressing prices even if those new buyers are unlikely to join a plan by rich nations in the Group of Seven (G7) to cap Russian oil prices.
Reliance Industries Ltd, operator of the world’s biggest refining complex and a major customer for Russia, has not placed orders yet for Russian cargoes loading after Dec. 5, two sources familiar the refiner’s purchase plans told Reuters.
Neither has state-run Bharat Petroleum Corp, they said. (Reuters)
Keystone Realtors IPO subscribed 2 times. Check share allotment, listing date details
The initial public offering (IPO) of Keystone Realtors, which sells properties under the brand ‘Rustomjee’, received 2 times subscriptions on the last day of the offer on Wednesday, November 16, 2022. The issue got bids for 1,73,72,367 shares against 86,47,858 shares on offer.
Keystone Realtors IPO had a fresh issue of up to ₹560 crore and an offer for sale of up to ₹75 crore. The price range for the initial share sale was fixed at ₹514-541 a share. On Friday, Keystone Realtors said it has collected a little over ₹190 crore from anchor investors. (Read More)
Stocks to Watch: SBI, Paytm, Tata Motors, Coal India, Hindustan Zinc, Aurobindo Pharma, Ircon International, Spandana Sphoorty Financial, ONGC and Berger Paints
NSE has put Balrampur Chini, Bhel, Delta Corp, Gujarat Narmada Valley Fertilizers and Chemicals, Indiabulls Housing Finance, and Sun TV stocks on the list of banned securities under the F&O segment for Wednesday trading as they have crossed 95% of the market-wide position limit. (Read More)
INDIA BONDS-Bond yields seen easing tracking fall in oil, U.S. peers
Indian government bond yields are expected to open lower on Thursday, tracking a decline in U.S. yields as well as oil prices.
The benchmark 10-year yield is likely to be in a 7.25%-7.30% band for the session, a trader with a private bank said.
The yield ended a tad higher at 7.2736% on Wednesday, having declined 22 basis points (bps) in the previous seven sessions.
After some consolidation on Wednesday, yields are likely to track and react to moves in U.S. yields and oil prices, and there could be marginal downward bias today, the trader said. (Reuters)
Trai to roll out caller ID system to rival Truecaller in 3 weeks
The telecom regulator is set to roll out its mobile phone caller identity system—verified by KYC or know your customer details—within the next three weeks.
The caller ID system will be pitched as the government’s replacement for the popular Truecaller app. “Trai has conducted several stakeholder consultations to iron out the issues,” Vaghela told HT. “The new feature should be rolled out in the next two to three weeks.” (Read More)
Buy or sell: Vaishali Parekh recommends 2 stocks to buy today
Vaishali Parekh of Prabhudas Lilladher has recommended two stocks to buy today, here we list out full details in regard to those buy or sell stocks:
1] Pidilite Industries: Buy at ₹2682 , target ₹2755, stop loss ₹2640; and
2] Castrol India: Buy at ₹129, target ₹135, stop loss ₹127. (Read More)
Rupee falls 35 paise to close at 81.26 against US dollar on forex outflows
The rupee depreciated by 35 paise to close at 81.26 against the US dollar on Wednesday on disappointing trade data and foreign fund outflows.
Forex traders said a negative bias on risk aversion in global markets weighed on the local unit.
At the interbank foreign exchange market, the local unit opened at 81.41 and later witnessed an intraday high of 81.23 and a low of 81.58 during the session.
The domestic unit finally settled at 81.26 against the American currency, registering a fall of 35 paise over its last close.
On Tuesday, the rupee appreciated 37 paise to close at 80.91 against the US dollar. (PTI)
Spandana Sphoorty Fin to raise ₹300 crore via bonds
Microfinance lender Spandana Sphoorty Financial will raise up to ₹300 crore by issuing bonds next week, the company said on Wednesday.
The board of directors in a meeting held on November 16, 2022, has approved to issue market-linked rated non-convertible debentures (NCDs) with a base issue size of ₹200 crore and green shoe option of ₹100 crore, the company said in a regulatory filing.
The tenure of bonds, to be allotted on November 22, 2022, have a tenure of 18 months.
The company said the bonds will carry interest at 11.15 per cent per annum. (PTI)
Pricing challenges likely to persist for steelmakers in Q3
Indian steelmakers posted weak numbers in the September quarter as high inventory costs and declining steel prices led to significant pressure on profits, according to data compiled by Mint.
Earnings before interest, taxes, depreciation and amortization (Ebitda) of leading steelmakers such as Tata Steel, JSW Steel, Jindal Steel and Power, and Steel Authority of India (SAIL) fell 49-68%, sequentially, and 58-90% from the year earlier.
According to analysts, domestic steel prices are close to import-parity prices and may not go up significantly. The natural hedge against cheap exports was being provided to some extent by a weak rupee and a stronger dollar. However, with the rupee appreciating in the past few days, the risk of cheap imports increases, and the industry must be cautious about it, analysts said. (Read More)
USB-C will be mandatory for all smart devices sold in India
India will be adopting USB-C type as a common charging port for smart devices, with stakeholders reaching a consensus at a meeting of an inter-ministerial task force, consumer affairs secretary Rohit Kumar Singh said on Wednesday.
The government held wide-ranging consultations to standardize charging ports for all compatible smart devices, but it is yet to reach a decision on chargers for low-cost feature phones. (Read More)
Indian Appliances & Consumer Electronic industry to double to ₹1.48 cr by 2025
The Indian Appliances and Consumer Electronics (ACE) market is expected to almost double in the next three years to around ₹1.48 lakh crore by 2023, led by increasing domestic demand, said the industry body CEAMA.
India has become one of the fastest growing ACE markets in the world and is also emerging as an alternative manufacturing destination of China and other South East Asian countries, the president of the Consumer Electronics and Appliances Manufacturers Association (CEAMA), Eric Braganza, said.
The foreign direct investment in the ACE industry has also almost doubled to USD 481 million till June in 2022 as against USD 198 million in 2021, he added.
“Now several global OEMs are setting up their base in India,” said Braganza while addressing the annual function of CEAMA here. (PTI)
Windfall profit tax on crude oil hiked, levy on export of diesel cut
The government on Wednesday hiked the windfall tax on domestically produced crude oil while reducing the rate on the export of diesel.
The tax on crude oil produced by firms such as state-owned Oil and Natural Gas Corporation (ONGC), was hiked to ₹10,200 per tonne, from ₹9,500 per tonne, with effect from November 17, a government notification said.
In the fortnightly revision of the windfall tax, the government cut the rate on the export of diesel to ₹10.5 per litre, from ₹13 per litre. The levy on diesel includes ₹1.50 per litre road infrastructure cess.
The export tax on jet fuel or ATF, which was set at ₹5 a litre in the last review on November 1, has not been altered. (PTI)
Kaynes Technology IPO: Share allotment likely today. GMP, how to check status
After the closure of the subscription, bidders are eagerly waiting for the finalisation of share allocation of the initial public offering (IPO) worth ₹857.82 crore. As per the tentative schedule of Kaynes Technology IPO, the announcement of share allocation can be announced anytime today as the probable Kaynes Technology allotment date is 17th November 2022. After the announcement of share allotment, bidders will be able to check their IPO application status online by logging in at the BSE website on the website of its official registrar. Link Intime India Private Ltd has been appointed as the official registrar of the public issue.
Meanwhile, grey market sentiments have gone choppy after the range-bound sentiments on Dalal Street. According to market observers, shares of Kaynes Technology Ltd are available at a premium of ₹95 in the grey market today that means Kaynes Technology IPO GMP (grey market premium) today is ₹95. (Read More)
Jaguar Land Rover’s Bolloré exits citing personal reasons
Jaguar Land Rover (JLR) chief executive Thierry Bolloré said on Wednesday that he would leave the company on 31 December due to personal reasons after two years at the helm of the iconic British luxury brands.
Bolloré, a former chief executive of French carmaker Renault, took over the top job at JLR from Ralf Speth in September 2020. He will also resign as a non-executive, non-independent director of parent Tata Motors Ltd with effect from 31 December. (Read More)
Softbank to sell Paytm stake worth $200 mn via block deal
Japan’s SoftBank will sell a third of its stake in One97 Communications Ltd, the owner of the Paytm payments app, through a $200 million block deal, according to deal terms reviewed by Mint.
SoftBank, which owns 12.9% of Paytm, plans to sell 29 million shares or 4.5% of the fintech company on Thursday.
The shares are being offered to institutional investors at ₹555-601.45. At the lower end of the band, it is a 7.7% discount to the closing price of ₹601.3 on Wednesday. If completed, the sale will fetch SoftBank at least ₹1,628.9 crore or $200 million. (Read More)
US STOCKS-Wall Street falls after Target outlook, Micron supply cut
Wall Street’s main indexes fell on Wednesday as a grim outlook from Target spurred fresh concerns for retailers heading into the crucial holiday season, while semiconductor shares slumped broadly after Micron’s supply cut.
The Dow Jones Industrial Average fell 46.76 points, or 0.14%, to 33,546.16, the S&P 500 lost 29.2 points, or 0.73%, to 3,962.53 and the Nasdaq Composite dropped 146.85 points, or 1.29%, to 11,211.56.
Shares of Target Corp tumbled 12% after the big-box retailer forecast a surprise drop in holiday-quarter sales.
Micron Technology shares dropped over 7% after the company said it would reduce memory chip supply and make more cuts to its capital spending plan. The S&P 500 information technology sector dropped 1.3%, while the Philadelphia SE Semiconductor index sank over 4%. (Reuters)
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