Sensex, Nifty Snap Four-Day Winning Run Dragged By Banking, I.T., FMCG Stocks
Sensex, Nifty pared most of the day's losses, but declined, dragged by banking, information technology and FMCG stocks
10-Year Bond Yield Little Changed
Yield on the 10-year bond rose 1bps to 7.48% during the session before easing off those levels to close at 7.46%.
Source: Bloomberg
Rupee Closes 3 Paise Shy Of 79 Against U.S. Dollar
Rupee slid 0.27% (21 paise) to an intraday record low 78.98 during the session.
Rupee closed at 78.97, a new closing low. Rupee depreciated to record lows in each of the last two sessions.
Source: Bloomberg
Closing Bell
India's stock benchmarks pared most of the day's losses, but declined, dragged by banking, information technology and fmcg stocks, amid fall in global equities and rise in oil prices.
The Sensex and Nifty snapped a four-day winning streak on Wednesday.
The Sensex fell 0.28% to 53,026.97. The 30-stock gauge lost over 560 points (over 1) to an intraday low of 52,612.68. The Nifty 50 also declined by similar magnitude to 15,799.10. Today 17 of the Nifty 50 stocks rose, while 33 fell.
The MidCap index underperformed its larger peers, losing 0.7% while the SmallCap measure outperformed losing nearly 0.2%. Twelve of the 19 sectoral indices compiled by BSE Ltd. declined with FMCG, finance, information technology and bankex losing over 1%. On the flip side, utilities and power indices rose over 1%.
The market breadth was skewed in the favour of bears. About 1,517 stocks rose, 1,784 fell and 149 remained unchanged.
ONGC Gains Over 13% In Four Sessions
Shares of ONGC rose over 3.6% to Rs 154.75 apiece. This follows the 5.55% surge on Tuesday.
The stock is on a four-day winning streak in which it has gained over 13.6%.
Trading volume is more than twice the 30-day average.
ONGC and Bharti Airtel are expected to see highest inflows among Nifty 50 stocks after rebalancing on Thursday, according to a prior note by Edelweiss Alternative & Quantitative Research. Reliance was expected to see outflows.
About 3.14 million shares of ONGC changed hands in three large trades on Wednesday, according to data from Bloomberg. The details of the buyers and sellers are not known immediately.
Of the 29 analysts tracking the company, 24 maintain 'buy', two suggest 'hold' and three recommends 'sell'. The return potential of the stock is 41.4%.
The rise in ONGC as well as Oil India's stock rose after the government allowed the sale of domestically produced oil to non-state buyers.
Source: Bloomberg
TTK Healthcare Climbs On Launch Of Online Portal For Sale Of Pleasure Products
Shares of TTK Healthcare jumped over 9%, the most in this week so far. The rise comes after the company announced the launch of its online portal www.lovedepot.com, for the sale of pleasure products.
LoveDepot stocks its racks with international brands such as plusOne, We-Vibe, etc as well as TTK Healthcare's own brands.
Trading volume is seven times the 30-day average.
Source: Exchange filing, Bloomberg
NMDC Shares Volatile After Getting Shareholders' Nod For Nagarnar Steel Plant Demerger
Shares of NMDC erased intraday losses before declining to day's low after PTI reported that the shareholders and creditors approved the demerge of Nagarnar Steel plant, quoting the company's CMD Sumit Deb.
Sumit Deb has been quoted saying "We have got the shareholders and creditors approval for the demerger".
NMDC is in the process of setting up a 3 million tonne per annum steel plant in Nagarnar in Chhattisgarh at an estimated cost of Rs 23,140 crore. The cabinet approved demerger of Nagarnar Steel Plant from NMC in October 2020.
Of the 23 analysts tracking the company, 11 maintain 'buy', six suggest 'hold' and six recommend 'sell'. The return potential of the stock is 33.4%.
Source: PTI, Bloomberg
Rupee Slips To Record Low
Indian currency depreciated 0.27% to 78.98 against the U.S. dollar during the session, just 2 paise shy of breaching the 79 mark.
The Rupee fell to a record low in each of the last two sessions.
Source: Bloomberg
Ultratech Gains As Nirmal Bang Finds Valuations Reasonable After Correction
Shares of Ultratech Cement jumped over 1.3% in a weak market after Nirmal Bang Institutional Equities found the valuations favourable following the recent steep correction.
Nirmal Bang has maintained 'buy' and kept the target price unchanged at Rs 6,772, an implied return of 22%. Ultratech's stock has fallen 33% from its 52-week high on concerns over increased competition in the sector due to entry of Adani group, rising inflation and poor pricing.
Nirmal Bang anticipates the possibility of further time correction as well as pressure on H1FY2022-23 earnings, given the high pet coke prices and weak realisations.
Of the 48 analysts tracking the company, 42 maintain 'buy', four suggest 'hold' and two recommend 'sell'. The return potential of the stock is at 35.5%.
Source: Nirmal Bang Institutional Equities note, Bloomberg
European Markets Decline
Innova Captab Files For IPO
Pharma company Innova Captab to raise up to Rs 400 crore via issue of new shares in IPO.
The company will sell up to 96 lakh shares for the offer-for-sale portion.
Source: DRHP
Bajaj Finserv Acquires 9.54% Stake In Perfios Account Aggregation Services.
Bajaj Finserv has joined SBI, HDFC, ICICI in acquiring stakes in account aggregator Perfios.
The four have each picked a 9.54% stake for Rs 4.03 crore.
Source: Exchange filing
Mid-Day Market Update: Sensex, Nifty Trim Losses; Reliance Industries Gains
India's stock benchmarks trimmed most of the morning losses, but still traded with losses, dragged by consumer durables, banking and fmcg stocks while energy, oil & gas and power stocks rose.
The Sensex fell 0.15% to 53,097.14. The 30-stock gauge shed over 550 points to an intraday low of 52,612.68. The Nifty also fell by similar magnitude to 15,815.10. Today 16 of the Nifty 50 stocks rose, led by RIL while 34 stocks declined.
The S&P BSE MidCap underperformed Sensex and Nifty, falling 0.70% while the S&P BSE SmallCap outperformed its larger peers, rising 0.13%. Twelve of the 19 sectoral indices compiled by BSE Ltd declined with fmcg, finance, bankex and consumer durables falling the most. On the flip side, energy, utilities, oil & gas, power gauges advanced.
The market breadth is skewed in neither the favour of bulls nor bears. About 1,571 stocks rose, 1,521 fell and 165 remained unchanged.
SIS Gains After Approving Rs 80 Crore Share Buyback
Shares of security services provider SIS rose nearly 2%.
The company approved buyback of 14,54,545 equity shares having face value of Rs 5 each at Rs 550 per share, not exceeding Rs 80 crore.
The buyback size represents 0.99% to the total paid-up capital of the company. The buyback offer price represents a 23.97% and 24.10% premium over the closing price of the equity shares on NSE and BSE, on June 23, 2022.
The process, record date, timelines and other details of the buyback will be announced soon, the company said in an exchange filing.
All 11 analysts tracking the company suggest 'buy'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 29.8%.
Source: Exchange filing, Bloomberg
RIL Gains As Bernstein Sees 33% Upside In 12 Months
Shares of RIL climbed over 1% after Bernstein reiterated 'outperform' and raised target to Rs 3360, an implied return of 33%.
Bernstein expects RIL's refining margins to soar to record levels due to supply shortage and lower feedstock prices. It also predicts Jio to deliver strong results due to tariff hikes.
The rise also comes a day after Akash Ambani was appointed as Chairman of RIL's telecom unit while Mukesh Ambani resigned as a director.
Of the 39 analysts tracking the company, 29 maintain 'buy', seven suggest 'hold' and three recommend 'sell'. The return potential of the stock is 13.5%.
Source: Bloomberg, Bernstein note
Tejas Networks Jumps Most In At Least A Year
Shares of Tejas Networks rose over 7.5%, the most in at least a year. Trading volume on the Bengaluru-headquartered firm is nearly thrice the 30-day average.
The sharp uptick comes after Japan's Renesas Electronics Corporation announced a strategic partnership with Tata Motors and Tejas Networks. The deal with the two Tata group companies pertains to the design, development and manufacturing of Renesas' semiconductor solutions.
Renesas will collaborate with Tejas for implementing next-generation wireless network solutions, including the design and development of semiconductor solutions for radio units used in telecom networks.
Share price crossed above 50-day and 200-day simple moving average, indicating potential upward price momentum.
Source: Renesas company note, Bloomberg
Hindalco Acquires Stake In Wind Power Generator Cleanwin Energy Six
Hindalco has bought a 26% stake in Cleanwin Energy for Rs 71.5 lakh.
Hindalco said it is exploring avenues for reducing energy costs and one of the options available is through open access from renewable energy generators in captive mode.
Source: Exchange filing
AU Small Finance Bank Falls Most In Over Three Months
Shares of AU Small Finance Bank fell over 9.25%, the steepest intraday decline in more than three months.
Trading volume is nearly six times the 30-day average. Share price crossed below 200-day simple moving average, indicating potential downward price momentum.
The decline comes after Credit Suisse initiated coverage of the stock with an 'underperform' rating, citing potential rise in credit costs. The target price is set at Rs 510, an implied downside of 18.09%.
Credit Suisse expects slippages to remain elevated from the restructured book and SME segments and expects credit costs to shoot up due to expansion outside core markets and product segments.
Of the 26 analysts tracking the company, 16 maintain 'buy', six suggest 'hold' and four recommend 'sell'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 24.1%.
Source: Credit Suisse brokerage, Bloomberg
Route Mobile Loses Most In Two Weeks After Approving Share Buyback
Shares of Route Mobile fell nearly 7%, the most in over two weeks. The stock has fallen 7.5% in two days. Prior to Tuesday, Route Mobile added 22% in three days.
The company announced that it approved buyback of equity shares having face value Rs 10 each at a price not exceeding Rs 1,700 per share, aggregating to Rs 120 crore, post market hours on Monday.
Trading volume is more than five times the 30-day average. Of the five analysts tracking the company, four maintain 'buy' and one suggests 'hold'. The overall consensus price of analysts tracked by Bloomberg implies an upside of 19.5%.
Source: Exchange filing, Bloomberg
Biocon Slumps To 52-Week Low
Shares of Biocon fell over 2% to a 52-week low of Rs 309.2 apiece. The stock is on a three-day losing streak in which it has shed 5%.
Today's decline follows CBI approaching High Court challenging a lower court order on Tuesday to seek custody of those arrested in CDSCO bribery scandal.
CBI said it could not question the arrested accused even after a week and expressed concerns that the delay might hurt the probe. CBI had arrested joint drugs controller S Eswara Reddy, associate vice president to Biocon Biologics L Praveen Kumar and three others last week in a case of alleged bribery to the tune of Rs 9 lakh.
Of the 21 analysts tracking the company, 12 maintain 'buy', five suggest 'hold' and four recommend 'sell'. The return potential of the stock is 31.1%.
Source: PTI, Bloomberg
10-Year Bond Yield Rises
Yield on the 10-year bond rose 1bp to 7.48%, at the open.
Source: Bloomberg
Opening Bell: Sensex, Nifty Fall; Rupee Slides To Record Low
India's stock benchmarks declined, dragged by losses in information technology, banking, metals and consumer durables stocks, amid slide in global equities and rise in crude oil prices.
The S&P BSE Sensex fell 1% to 52,644.82. The NSE Nifty 50 also declined by similar magnitude to 15,702.40. Today, 47 of the Nifty 50 stocks fell while three rose.
The broader indices almost mirrored their larger peers. All 19 sectoral indices compiled by BSE Ltd. declined with S&P BSE Consumer Discretionary, FMCG, Finance, I.T., Bankex, Capital Goods, Consumer Durables, Metal, Realty and Teck indices losing over 1%.
The market breadth is skewed in the favour of bears. About 686 stocks rose, 1,473 fell and 85 remained unchanged.
Rupee Falls To Fresh Record Low Against U.S. Dollar
The Indian currency depreciated 0.14% (11 paise) to 78.88.
Rupee had slid to a record low on Tuesday as well.
Source: Bloomberg
SEBI Fines NSE, Chitra Ramakrishna, Others In Co-Location Case
SEBI imposes penalty on National Stock Exchange, Chitra Ramakrishna, Anand Subramanian and others in co-location case
SEBI imposes Rs 7 crore penalty on the NSE
The markets regulator fines former NSE chief Chitra Ramakrishna Rs 5 crore
SEBI fines former NSE official Anand Subramanian Rs 5 crore.
SEBI fines NSE official Ravi Varanasi Rs 5 crore.
Way2Wealth Brokers Pvt. Ltd has been fined Rs 6 crore.
NSE, Chitra Ramakrishna, Anand Subramanian and others to pay the penalty within 45 days.
Penalty imposed under various provisions of the SEBI act and Section 23H of the Securities Contracts (Regulation) Act.
Source: SEBI Order
Carlyle To Acquire Minority Stake In Varmora Granito
Carlyle will pick up a significant minority stake in Ahmedabad-based tile and bathware brand Varmora Granito.
Terms of the transaction were not disclosed.
Carlyle’s partnership to help accelerate Varmora’s investments in product innovation, channel partnerships and M&A-led consolidation.
Positive outlook for India’s residential sector, along with rising per capita income in India and product premiumisation provide significant growth opportunities for a branded building materials consumer player such as Varmora, Carlyle said.
Source: Press statement
Trade Setup For Wednesday
Annual General Meeting Today
Asian Paints
HDFC Asset Management Company
Mindspace Business Parks REIT
Polycab India
Sundaram Fastners
Balaji Amines
Prism Johnson
Eveready Industries
Bombay Dyeing & Manufacturing
Agro Tech Foods
Stocks To Watch
Reliance Industries: Reliance Jio Infocomm names Mukesh Ambani's son Akash Ambani as chairman.
SBI/ICICI Bank: The banks will invest Rs 4.03 crore each to pick up 9.54% stake in Perfios, an account aggregator.
HDFC Bank: The bank will invest Rs 4.02 crore for 9.54% stake in Perfios.
Route Mobile: The company approved buyback of shares for an aggregate amount of Rs 120 crore. It will buyback 705,882 shares, representing 1.12% of the total paid up share capital at maximum buyback price of Rs 1,700 per share.
Jammu and Kashmir Bank: The bank will raise Rs 500 crore by equity and Rs 1500 crore via bonds in FY23.
ONGC: The company said four die and five rescued in helicopter accident.
Glenmark Pharma: The company's U.S. arm acquired four OTC ANDAs from Wockhardt.
Godawari Power & Ispat: The company has acquired 78.96% stake in Alok Ferro Alloys for Rs 126.98 crore.
Sensex, Nifty Set To Fall; RIL, SBI, HDFC Bank, ICICI Bank, Route Mobile, ONGC In Focus
Stocks fell in Asia on Wednesday on heightened worries about a gloomy economic outlook, amid monetary policy tightening and rise in crude oil prices.
Equities fell in Japan, Australia and South Korea. U.S. contracts were volatile after the S&P 500 tumbled and the tech-heavy Nasdaq 100 lost over 3%.
As of 7:30 a.m., the Singapore-traded SGX Nifty—an early barometer of India's benchmark Nifty 50—fell 1% to 15,695.50.
Oil held gains, hovering around $112 a barrel. In cryptocurrencies, Bitcoin settled near $20,000 amid generally poor sentiment.