Closing Bell: Sensex falls, closed at 67,596 level : While Nifty at 20,133 level

 Indian Market 

FII AND DII 

 Indian Market News

1. In a broad-based selloff, the Sensex has dropped 570 points and the Nifty has fallen below 19,750 points.
2. The Canada Pension Plan has invested more than $2 billion in nine Indian new-age enterprises.
3. HDFC AMC receives RBI approval to acquire a 9.5% stake in City Union Bank.
4. Vishnu Prakash R Punglia’s JV receives a LoA for Rs 73 Cr from the Piparcity Municipal Board. According to Rajasthan BLS International,
5. Canadian visa insurance accounts for less than 2% of total annual income.
6. On the second day of bidding, 98% of the Signature Global IPO was subscribed.
7. The Kotak Data Center Fund has invested Rs 600 crore in Sify’s data center operations.
8. Samskip Group has placed an order with ABB for hydrogen-powered container vessels.
9. UPL rises on Citi’s upbeat forecast for Latin American crop quantities.
10. Manappuram Finance receives board clearance for a fund raise of up to Rs 1,000 crore through NCDs via private placement.
11. The government has received approximately Rs 338 crore as a dividend payment from Oil India.
12. Unihealth Consultancy SME IPO: Shares are listed at Rs 135 on the NSE Emerge.
13. BPCL gives a $200 million corporate guarantee to its wholly owned subsidiary BPRL International.
14. EMS goes public at Rs 282, a 33% premium over the IPO price.
15. SJVN falls 9% as the government plans to sell 4.92% of its stake through OFS at a steep discount.
16. Tata Consumer Products is in pole position to win Capital Foods’ Rs 5,500-cr competition.
17. Block transaction in Electronics Mart involving 2.5% equity valued at Rs 137.6 crore
18. Block transaction in Electronics Mart involving 2.5% equity valued at Rs 137.6 crore
19. HDFC AMC receives RBI approval to acquire up to 9.5% of Karur Vysya Bank Govt to sell 4.92% of SJVN at Rs 69 per share; OFS begins on Thursday

Market Actions 

     INDIAN MARKET MOVERS 

Global Market Check

GIFT Nifty

The GIFT Nifty index started slightly positive with a 7.5 point gain, while futures reached 19,958 points after reaching a high of 20,110 points.

US Markets

Stock futures closed near the flat line on Wednesday night as investors analyzed the Federal Reserve’s projections.

Dow Jones Industrial Average futures were down by 14 points, while S&P 500 and Nasdaq 100 futures were down by 0.1 percent and 0.2%, respectively.

FedEx gained 5% after posting adjusted earnings of $4.55 per share in its fiscal first quarter, while KB Home fell 2% despite exceeding Wall Street’s expectations.

Marketing automation firm Klaviyo slipped nearly 2% after the closing bell.

The Federal Reserve said it would leave interest rates unchanged but expects another rate hike before the end of the year.

The surprise was the optimism about the economic outlook, with an upward revision on GDP growth for 2023.

The market’s bleak ending followed a disappointing trading session, with the three major averages closing at session lows.

European Markets

European markets closed higher on Wednesday as global investors awaited the US Federal Reserve’s latest monetary policy decision. The Stoxx 600 index rose by 0.95 percent, with most sectors benefiting. Auto stock led gains, while oil and gas dipped 0.6%. Investors expect the central bank to hold interest rates steady, and the Fed will release its quarterly update on economic indicators.

  Asian Markets

Asia-Pacific markets experienced a decline following the U.S. Federal Reserve’s announcement that it will raise interest rates one more time this year. The central bank expects to hike rates to a median of 5.6% by the end of 2023, up from the current range of 5.25-5.5%. The Federal Open Market Committee projected two rate cuts in 2024, two fewer than its June forecast. The S&P/ASX 200 fell 0.21 percent in Australia, while Japan’s Nikkei 225 and Topix fell 0.44 percent. South Korea’s Kospi and Kosdaq also fell 0.5% and 0.37 percent respectively. Hong Kong’s Hang Seng index futures stood at 17,958, indicating a stronger open compared to the HSI’s close of 17,885.60.

Oil Prices

Oil prices fell on Wednesday ahead of the US Federal Reserve’s interest rate decision, leaving investors uncertain about the impact of peak rates on energy demand. The Fed is expected to keep interest rates on hold, but the focus will be on its unclear policy path. The oil rally is taking a break as traders await a pivotal Fed decision that could determine the US economy’s soft or hard landing. Brent crude futures fell by 58 cents to $93.76 a barrel, while US West Texas Intermediate crude futures edged 0.35 percent lower to $90.88.

Dollar Index

The Dollar index closed 0.47 percent lower in futures at 104.71, while the dollar’s value was near Rs 82.92.

Gold Prices

Gold prices rose slightly on Wednesday, with spot gold increasing by 0.24 percent to $1.935.49 per ounce and US gold futures increasing by 0.17 percent to $1,957. UBS analyst Giovanni Staunovo expects the Fed to maintain its data-dependent approach and signal it is too early to cut rates. Fed officials are expected to keep rates on hold for now, but may consider new economic projections if rates need to rise further before the end of the year. Soaring oil prices have added to inflationary pressures and raised expectations of longer rate hikes.

News Updates

Govt to sell 4.92% in SJVN at Rs 69/share; OFS begins on Thursday

The Indian government plans to sell a 4.92% stake in SJVN at a price of Rs 69 per share through a two-day offer for sale. The sale will begin tomorrow for non-retail investors, with retail investors bidding on Friday. The divestment includes a Green Shoe option of 2.46 percent. The sale of the 4.92% stake, or over 9.66 crore shares, will fetch over Rs 650 crore. SJVN shares jumped 9.31% to reach a 52-week high of Rs 83.69, closing at Rs 81.75 per share on the BSE.

Hyundai Motor India net profit jumps 62.3% to Rs 4,709.25 crore in FY23

Hyundai Motor India’s consolidated net profit increased by 62.3% to Rs 4,709.25 crore in the fiscal year ending March 31, 2023, according to financial data from Tofler. The company, the second-largest passenger vehicle manufacturer in India, had a consolidated net profit of Rs 2,901.59 crore in 2021-22. The company’s revenue from operations increased to Rs 60,307.58 crore in FY23, compared to Rs 47,378.43 crore in FY22. The total production increased by 20% to 7.27 lakh units in FY22-23.

RR Kabel listing on expected lines, closes nearly 16% higher on debut

RR Kabel shares closed the first day with nearly 16% gains despite a sharp correction in the equity markets on September 20. The stock opened higher by 14% at Rs 1,180, largely on expected lines. It initially reached an intraday low of Rs 1,136.80 on the NSE, but recouped losses and hit the day’s high of Rs 1,212.70 in the last hour of trade. The stock settled at Rs 1,198, up 15.75% over the issue price of Rs 1,035, with a volume of 1.5 crore equity shares. The closing on the BSE was Rs 1,196.65, up 15.62 percent.

Lower book value, asset quality pain & high costs: Nomura downgrades HDFC Bank in merger aftermath

Foreign broking firm Nomura has downgraded its rating on HDFC Bank to Neutral following an analyst call to discuss the merged entity. The combined entity’s book value will be lower than HDFC Bank’s standalone book value, leading to several brokerages cutting their targets on the stock. Nomura analysts said the downward adjustment to the incoming net worth of HDFC Ltd resulted in a book value per share cut of Rs 23 per share for the merged entity.

Canadian pension fund-held stocks in India fall as diplomatic row heats up

Canadian pension fund-held stocks in India have fallen due to the escalating diplomatic row between India and Canada. The shares of companies with investments from Canada pension funds, including Kotak Mahindra Bank, Zomato, Nykaa, and Indus Towers, fell by up to 2.4%. However, Delhivery remained green, up 0.5%. Analysts predict that long-term pension fund investors will not panic, as tensions between Canada and India continue to rise. The Indian market will be indirectly affected, as Canadian pension funds are the largest institutional investors in Indian projects.

STOCK IN NEWS 

• EMS: On September 21, the firm providing sewage solutions will offer shares on the BSE and NSE. The price per share for the issuance has been set at Rs 221.

   

• SJVN: On September 21 and 22, the government will offer up to 9,66,72,962 equity shares, or 2.46 percent of the hydroelectric power generation company, with the option to sell an additional 9,66,72,961 equity shares, or 2.46 percent ownership. On September 21, OFS is open to non-retail investors, and on September 22, it is open to retail investors. The offer’s floor price will be Rs. 69 per share.

   

• Biocon: Subsidiary Biocon Biologics has been given permission by the European Commission to market YESAFILI, an Aflibercept biosimilar, in the European Union (EU). Age-related macular degeneration caused by neovascularization (wet AMD), as well as vision loss brought on by macular oedema secondary to retinal vein occlusion, are all treated with the ophthalmology drug YESAFILI.

   

• Cipla: Following the examination, the US FDA provided 5 inspectional observations in Form 483 to InvaGen’s production site in Central Islip, New York. No repetition or data integrity observations have been made. InvaGen Pharmaceuticals Inc.’s facilities was inspected by the US FDA between September 11 and September 19. The examination was a standard pre-approval inspection (PAI) for a site transfer product within InvaGen as well as a current good manufacturing practises inspection (CGMP).

   

• Apollo Tyres: Due to concerns from shop floor workers on the renewal of the long-term settlement agreement, production of bias and OTR tyres has been halted at the company’s manufacturing site in Limda, Gujarat. To address their issues and reach a mutually agreeable settlement, the corporation is in conversations and negotiations with the labour union leaders. At this point, the operations are unaffected materially.

   

• Infosys: The second-largest IT services company in the nation, Infosys, and Nasdaq-listed NVIDIA have increased their strategic partnership with the goal of assisting businesses worldwide in generating productivity improvements through generative AI applications and solutions. 50,000 employees of Infosys will receive NVIDIA AI training.

   

• Zydus Lifesciences: Clindamycin Phosphate Gel USP, 1 percent, used to treat acne, has been given final approval by the US Food and Drug Administration (USFDA) to Zydus Lifesciences. The group’s topical manufacturing facility in Changodar, Ahmedabad, will produce the medication. According to IQVIA MAT July 2023, the drug’s annual sales in the United States were $37 million.

• West Coast Paper Mills: In accordance with the rules of the 2016 Insolvency and Bankruptcy Code, the National Company Law Tribunal in Chennai has accepted West Coast Paper Mills’ resolution plan for the purchase of Uniply Décor. The Uniply Décor Committee of Creditors has already given its approval to the idea.

   

• Kalpataru Projects International: The executive committee of the board of directors will meet on September 25 to discuss the proposal for raising money through the issue of non-convertible debentures on a private placement basis, according to Kalpataru Projects International.

   

• REC: Subsidiary REC Power Development & Consultancy has transferred all of its assets and liabilities, together with its whole 50,000 equity share ownership in Beawar Transmission, to Sterlite Grid 27. Under Phase-III Part F, Sterlite Grid 27 would set up an interstate transmission system for the evacuation of power from Rajasthan’s REZ (20GW). REC Power Development & Consultancy’s wholly owned subsidiary Kallam Transco has been established by the company in the meantime. The aforementioned business is a division of REC.

   

• Asian Granito India: The shareholders approved the reappointment of Mukeshbhai Jivabhai Patel as managing director for a period of three years beginning on April 1, 2024, and Kamleshkumar Bhagubhai Patel as chairman and managing director for a period of three years beginning on January 1, 2024, and ending on December 31, 2026.

   

• Sheela Foam: On September 20, the producer of PU foam opened its approved institutional placement. The QIP issue’s floor price is Rs 1,133,99 per share.

   

• RR Kabel: On the day of the company’s listing, Norges Bank purchased 20 lakh equity shares at an average price of Rs 1,180 through open market transactions on behalf of the Government Pension Fund Global. These shares have a value of 236 crore rupees.

   

• Tarsons Products: At an average price of Rs 530 per share, Plutus Wealth Management LLP has acquired 17.4 lakh shares, or 3.27 percent of the company’s total paid-up stock. Rs 99.22 crore was spent on the stake purchase.

   

• Praveg: SageOne-Flagship Growth 2 Fund and SageOne Investment Managers LLP purchased 6.26 lakh and 2.25 lakh shares, respectively, of the event management firm through open market transactions at an average price of Rs 480.5 and Rs 480.51 per share, respectively. Jayesh Ishwarlal Patel offloaded 6.44 lakh shares at an average price of Rs. 480.49 per share, while Probi Fincap sold 1.48 lakh shares for an average price of Rs. 480.74 per share.

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Nifty above 19,700, Sensex up 385 points; gains in capital goods, real estate, and banks

Force Motors announces August production of 3,032 automobiles.

Power Mech Projects climbs more than 2% after receiving a Rs 625 crore order.

Hitachi Energy India rises nearly 4% after receiving an order.

Quant Mutual Fund invests Rs 86 crore in JM Financial, while Valiant Mauritius Partners sells 0.8% of its holding.

Baring Private Equity sells Rs 34.7 crore in PG Electroplast shares.

Small Cap World Fund and New World Fund sell Rs 884.43 crore in Shriram Finance shares.

Nazara Technologies will offer 57.42 lakh preferential shares to SBI Funds at Rs 714 per share.

Cochin Shipyard Large Trade | According to CNBC-TV18, 8.6 lakh shares (0.7 percent e

Data from China | Exports were down 8.8% in August, while imports were down 7.3% year on year.

Indian Railways awards Responsive Industries a contract for the Garib Rath Initiative.

CNBC-TV18 reported that Bikaji Foods International Large Trade | 14.1 lakh shares (0.6 percent equity) worth Rs 71.3 crore change hands at Rs 507 per share.

PVR INOX stock rises as SRK’s ‘Jawan’ hits theaters, and the industry anticipates a blockbuster opening.

L&T rises on rumours of a possible order from Saudi Aramco for a gas project.

Varroc Engineering to acquire a 26% share in AMP Energy SPVs TCS forms strategic cooperation with JLR’s digital unit

Tata Motors August Auto Sales | JLR UK sales are down 23.6% year on year at 1,479 units versus 1,935 units.

Closing Bell Closing Bell Closing Bell Closing Bell Closing Bell Closing Bell 

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