Morning Update: Sensex Flat, at 66082 level: While Nifty at 19678 level

 Indian Market 

FII AND DII 

 Indian Market News

1. Asian markets are divided; the Hang Seng is down 1%, while the Taiwan Weighted is up 0.5%
2. The S&P 500 and Nasdaq have suffered their worst weekly losses since March.
3. The GIFT Nifty is off to a good start; Asia trades are mixed, while US markets are down.
4. Oil prices rise as supply constraints resurface.
5. Plaza Wires has established a price range of Rs 51-54 per share for its Rs 71.3-crore IPO.
6. On the closing day, the Signature Global IPO was subscribed to 11.88 times.
7. Godrej Properties receives bookings of Rs 2,000 crore from Godrej Tropical Isle in Noida.
8. The IPO frenzy continues, with 18 public offerings totaling over Rs 4,000 crore expected to begin this week.
9. Bajaj Finance has big plans. $800mn-$1bn capital raise

Global Market Check

GIFT Nifty

The GIFT Nifty index started slightly positive, gaining 25 points, while futures reached 19,669 points after reaching a high of 19,679 points.

US Markets

US stocks retreated on Friday, ending a tough week for the market.

The Dow Jones Industrial Average fell 106.58 points, or 0.31%, to 33,963.84, while the S&P 500 and Nasdaq Composite fell 0.23 percent and 0.09 percent respectively.

Ford ended the day up 1.9% after a source reported that the auto giant was making progress in negotiations with the striking United Auto Workers union.

The losing streak came as investors reacted to a Federal Reserve signal that it intended to keep interest rates higher for longer.

The S&P 500 and Nasdaq Composite dropped 2.9% and 3.6% this week, marking the third consecutive negative week and worst weekly performance since March for each index.

European Markets

European markets closed lower on Friday due to the prospect of higher interest rates following central bank decisions this week. The Stoxx 600 index ended the session down 0.3%, bringing its losses for the week to 1.57 percent. Construction and material stocks dropped 0.9%, while tech stocks added 0.77 percent. The US Federal Reserve held interest rates steady on Wednesday but hawkishly signaled a further hike later this year, likely staying elevated for a prolonged period. Fed Chairman Jerome Powell emphasized the top priority of restoring price stability and preventing inflation from resurging.

  Asian Markets

Asia-Pacific markets are mixed as investors await inflation data from Singapore, Australia, and Japan. Singapore and Australia are expected to report figures for August, while Japan will release data for the Tokyo region. The capital region’s inflation data is seen as a leading indicator of nationwide trends. Futures for the S&P/ASX 200 in Australia fell by 0.45%, while Japan’s Nikkei 225 and Topix rose by 0.24% and 0.16% respectively. South Korea’s Kospi and Kosdaq experienced losses.

Oil Prices

Oil prices closed the week lower due to profit-taking and supply concerns from Russia’s fuel export ban. Brent futures settled 3 cents lower at $93.27 a barrel, falling 0.3% in the week. US West Texas Intermediate crude (WTI) futures rose 40 cents to $90.03 a barrel, falling 0.03 percent for the week. Investors anticipate a slack in demand in October as refineries go into maintenance and a higher interest rate pressures markets. Contracts have rallied over 10% in the previous three weeks due to tight supply concerns.

Dollar Index

The Dollar index rose 0.21 percent in futures to reach 105.58, while the dollar’s value was near Rs 83.10.

Gold Prices

Gold prices rose by 0.3% to $1,925.21 per ounce on Friday, following a slight pullback in the dollar and bond yields due to the Federal Reserve’s hawkish stance. Spot gold rose 0.3% to $1,925.21 per ounce, while US gold futures settled 0.3% higher at $1,945.60 per ounce. The dollar retreated from a six-month peak against major currencies, making gold less expensive for other currency holders. The Fed’s hawkish stance has driven the dollar, yields, and commodity markets, affecting not just gold but also other commodities.

News Updates

Bajaj Finance plans mega $800mn-$1bn fund raise; engages JM Fin, Citi, Morgan Stanley & BofA Securities

Bajaj Finance, a leading NBFC, is planning a massive $800mn-1bn fund raise, with four investment banks shortlisted for the deal. The deal was initiated by the firm, which is known for large trades. The final decision on the deal size and mechanism will be made during the upcoming board meeting on October 5. The fundraising proceeds are expected to be used for growth capital and to strengthen the firm’s balance sheet. The company’s stock has risen by 21% in the last six months. The deal is part of Bajaj Finance’s strategy to engage in large trades every few years.

IPO rush continues with 18 public issues worth over Rs 4,000 cr set to open this week

The IPO rush continues with 18 public issues worth over Rs 4,000 crore set to open this week on Dalal Street. Starting on September 25, 18 companies will open Rs 4,095 crore worth of IPOs for subscription, including four in the mainboard segment. Five ongoing issues are also expected. The first IPO from the JSW Group since 2010, JSW Infrastructure, will open on September 25 with a target of raising Rs 2,800 crore. Facility management services company Updater Services will also open its Rs 640-crore public issue during the same period. JSW Infrastructure has already raised Rs 1,260 crore and Updater Services Rs 288 crore from anchor investors.

ICICI Lombard appoints Sanjeev Mantri as MD and CEO

ICICI Lombard General Insurance has appointed Sanjeev Mantri as Managing Director and Chief Executive Officer. Mantri, currently serving as Executive Director, will take on the role starting December 1, or upon IRDAI approval, for a five-year term or until his retirement pending IRDAI and shareholder approval. With over 28 years of experience, Mantri started his career at Bennett Coleman and Co, BNP Paribas, and spent over 20 years with the ICICI Group, initially at ICICI Bank in 2003. He joined ICICI Lombard in 2015 as Executive Director, overseeing the retail division and playing a crucial role in enhancing the company’s revenue, profitability, stock exchange listing, and the merger with Bharti Axa.

Aggressive divestment drive triggers doubts on the fate of PSU stocks

The government’s aggressive divestment drive has caused a 12 percent correction in the SJVN counter, raising concerns among investors about potential corrections in other public sector companies. The NSE CPSE index, which represents central public sector enterprises, was trading 1.68 percent down on September 22, the best performer this year with a 36 percent gain. The government announced its decision to sell 4.95 percent in SJVN at Rs 69, 15.59 percent lower than the prevailing price on September 20. Currently, the stock trades at Rs 71.15 per share, 0.03% higher than the divestment price.

STOCK IN NEWS 

• State Bank of India: Through its fourth infrastructure bond sale, the nation’s largest lender raised Rs 10,000 crore at a coupon rate of 7.49 percent. The investors included corporates, insurance firms, mutual funds, provident funds, pension funds, and others. Bond sales will be used to increase long-term funding sources for infrastructure and the affordable housing market.

• JSW Steel: The company has signed two agreements with National Steel Holding (NSHL): a securities purchase agreement to buy NSHL’s 50% stake in NSL Green Recycling and a termination agreement to end the joint venture agreement for establishing scrap shredding facilities in India. Following the deal, JSW Steel will own all of the shares of NSL.

• Shree Renuka Sugars: In order to develop a footprint in Uttar Pradesh, the sugar firm has acquired board clearance to enter into legally binding agreements to purchase Anamika Sugar Mills for Rs 235.5 crore. Addition ally, it will inject up to Rs 110 crore into Anamika in the form of equity shares in order to redeem any outstanding cumulative redeemable preference shares (CRPS) that Anamika issued in favour of SICPA India.

• Vaibhav Global: The assets of Ideal World, a teleshopping brand in the UK, have been successfully acquired by Vaibhav Global: Subsidiary Shop TJC Ltd (UK). With the signing of this contract, Ideal World will transfer its intellectual property rights, broadcasting rights, studio equipment, and other intangible assets to Shop TJC. Internal accruals will be used to finance the transaction.

• Suzlon Energy: As the financial support provided by the REC-led consortium under the provisions of the rupee term loan agreement has been fully repaid, state-owned REC has withdrawn its candidate, Ajay Mathur, from the board of Suzlon Energy. As of September 21, Ajay Mathur is no longer the Nominee Director of Suzlon.

• Reliance Industries: Subsidiary Reliance Retail Ventures has given KKR 1,71,58,752 equity shares in exchange for a subscription payment of Rs 2,069.50 crore from Alyssum Asia Holdings II Pte Ltd.

• Delta Corp:The casino network has been notified by the Hyderabad-based Directorate General of GST Intelligence that it must pay an alleged tax debt totaling Rs. 11,139.61 crore, plus interest and penalties, spanning the period from July 2017 to March 2022. Additionally, the corporation will receive the show cause notice if it doesn’t comply. Based on the total gross wager value of all games played at the casinos during the applicable period, the amount claimed in the DG Notice.

• Reliance Industries: Subsidiary Reliance Retail Ventures received Rs 2,069.50 crore in subscription fees from Alyssum Asia Holdings II Pte Ltd (KKR) and issued 1,71,58,752 equity shares to KKR. (Disclaimer: MoneyControl is a subsidiary of Network18. Reliance Industries is the only benefactor of Independent Media Trust, which owns Network18.)

• Life Insurance Corporation of India: The Corporation has received an order from the Bihar-Additional Commissioner State Tax (Appeal), in which the authority has submitted a demand of Rs 290.49 crore in goods and services tax, with interest and penalty. Within the timeframes specified, the Corporation will submit an appeal with the GST Appellate Tribunal against the aforementioned order.

• Delta Corp.: The casino chain has got notification from the Directorate General of GST Intelligence in Hyderabad that it must pay an alleged tax debt of Rs 11,139.61 crore, plus interest and penalties, from July 2017 to March 2022. Furthermore, if the corporation fails to do so, a show cause notice will be issued. The amount claimed in the DG Notice is calculated using the total gross bet value of all games played at the casinos during the relevant time.

• Samhi Hotels: Morgan Stanley Investments Mauritius and Morgan Stanley Mauritius Company sold their whole personal interest of 22.70 lakh shares at Rs 134.4 per share and Rs 136.46 per share, respectively, in the privately held Samhi Hotels. Morgan Stanley Asia (Singapore) Pte sold 19.26 lakh shares at Rs 139.37 a share on average. They sold 2.97% of their shares, compared to 3.45% prior to the listing date. However, BofA Securities Europe SA has purchased an additional 45.85 lakh shares, or 2.1% of the firm, for Rs 63.9 crore at an average price of Rs 139.37 a share. SI Investment Broking bought 15 lakh shares for Rs 136.04 per share on average.

• Hinduja Global Solutions: Aviator Global Investment Fund, a foreign portfolio investor, has purchased 2.8 lakh shares, or 0.6% of the firm, through open market transactions at an average price of Rs 1,005 per share, in addition to the 2.93% shareholding held as of June 2023. Legends (Cayman) was the seller in the transaction.

• Zaggle Prepaid Ocean Services: ACM Global Fund VCC purchased 8 lakh shares in Zaggle Prepaid Ocean Services via open market transactions at an average price of Rs 164.83 per share, and Valuequest Investment Advisors purchased 33.03 lakh shares at an average price of Rs 165.96 per share, for a 3.36% stake. Goldman Sachs Investments Mauritius I, on the other hand, sold 6.1 lakh shares at an average price of Rs 165.39 per share.

• Cholamandalam Financial Holdings: Promoter entity Ambadi Enterprises quit the firm through open market transactions, selling its personal stake of 10.58 lakh shares at an average price of Rs 1,151.02 per share. However, Nomura India Investment Fund Mother Fund purchased 14.51 lakh shares in the company for Rs 166.18 crore at an average price of Rs 1,145.3 per share.

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