Morning Update: All of the sectoral indicators are in the green. The RBI retained the repo rate at 6.5 percent and the standing deposit facility and marginal standing facility rates at 6.25 percent and 6.75 percent, respectively.

Sensex- 65864 up 232 pionts

Nifty 50 – 19615 up 70 points

 Indian Market 

FII AND DII 

 Indian Market News

1. 1. Nifty above 19,600, Sensex up 280 points; major gainers include Bajaj Finserv, Titan, and ITC. 
   2. The Governor of the Reserve Bank of India (RBI) maintained the policy rate at 6.5 percent.
   3. To manage liquidity, the RBI may explore OMO sales of G-Sec. 
   4. As markets prepare for the US nonfarm payrolls report, the dollar brakes its advance.
   5. Oil is on course for its biggest weekly drop since March.
   6. Wall Street closes marginally down; investors anticipate Friday’s payrolls.
   7. Godrej Industries, Mahindra & Mahindra Financial Services, and New India Assurance Company boosted the BSE Midcap index by 0.5 percent.
   8. The BSE Auto index increased by 0.5 percent, driven by UNO Minda, Apollo Tyres, and TVS Motor.
   9. KPI Green Energy shares rose 2% after acquiring 12.10 MW of solar power plants.
   10. Valiant Laboratories goes public for Rs 162, a 16% premium above the IPO price.
   11. As the IPO is delayed, Oyo is in talks with Apollo over a $660 million refinance.
   12. Bajaj Finance’s stock could benefit from a Rs 10,000-crore fund-raising plan.
   13. The Committed Cargo Care IPO will begin on Friday, with a price of Rs 77 per share.

Global Market Check

Gift Nifty

With a gain of 16 points, the GIFT Nifty signals a somewhat good start for the larger index. After reaching a high of 19,621 points, GIFT Nifty futures were at 19,608 points.

US Markets

Stocks fell on Thursday as investors awaited key jobs data on Friday, which could determine interest rate decisions. The Dow Jones Industrial Average lost 9.98 points, while the S&P 500 and Nasdaq Composite traded down 0.12%. Consumer staples companies led the losses, with Molson Coors falling 6.3% and Mondelez International and Clorox declining more than 5% each. Weekly initial jobless claims reached 207,000 for the week ending Sept. 30, up 2,000 from the prior week’s numbers. While the slight increase was in line with the Street, some investors were hoping the data would signal a labor market breakdown and end the run-in rates that are hurting stocks.

European markets

European stocks closed higher on Thursday due to weaker-than-expected jobs data and a pullback in U.S. Treasury yields. The Stoxx 600 index rose 0.3% after three negative sessions. Sectors were mixed, with travel stocks up 1.5% and oil and gas slightly lower. French train manufacturer Alstom plunged 37% after warning about its free cash flow, while London-listed Metro Bank dropped over 25%. Pandora was the top riser, up 12%.

Asian markets

Asia-Pacific markets experienced a rise in trading after U.S. Treasury yields eased from 16-year highs due to weaker-than-expected jobs data. Japan’s Nikkei 225 and Topix gained 1.8% and 2.02%, respectively. South Korea’s Kospi and Kosdaq slipped, respectively, due to a 3.7% higher consumer price index in September compared to a year ago. In Australia, the S&P/ASX 200 traded 0.51% higher. Hong Kong’s Hang Seng index is 0.33% higher. China’s markets remain closed for the weeklong holiday. In the U.S., the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite closed in the green.

Oil Prices

Oil prices fell on Thursday due to an uncertain demand outlook, overshadowing an OPEC+ decision to maintain oil output cuts. Brent crude oil futures fell 0.8% to $85.19 a barrel, while U.S. West Texas Intermediate crude futures were 67 cents lower at $83.55. Investors are worried that peak fuel consumption demand is behind us, but the market will still be undersupplied to the end of the year. Oil settled more than $5 lower on Wednesday, its biggest daily drop in over a year, with heavy hedge fund liquidation on fears of higher interest rates and inflation sapping fuel demand.

Dollar index

The Dollar index traded 0.34 percent lower in futures at 106.43, whereas the value of one dollar hovered near Rs 83.22.

Gold prices

Gold prices fell for a ninth consecutive session on Thursday due to tight labor market conditions and concerns about Federal Reserve interest rates remaining higher for some time. Spot gold eased 0.2% to $1,818.39 per ounce, while U.S. gold futures fell 0.2% to $1,830.40 per ounce. The narrative of holding rates higher for longer is driving people to remove positions from gold, as the opportunity cost of holding it has risen. Gold prices have fallen nearly 12% since advancing above the key $2,000-per-ounce level in early May.

News Updates

SoftBank plans to sell part stake in PB Fintech in fresh block deal of around $105 mn

Japanese tech giant SoftBank is set to sell a 2.54 per cent stake in PB Fintech, the parent company of Policybazaar, in a fresh block deal worth around $105 million. The offer price range is Rs 752 to Rs 767 per share, a 0.2 per cent discount from the previous closing price of Rs 767 per share. The deal is expected to be around $105 million or Rs 876 crore. Kotak Mahindra Capital is the i-banker working on the share sale.

Sun Pharma to acquire nearly 38% stake in Ezerx Health Tech for Rs 28.69 cr

Sun Pharma is set to acquire a 38% stake in Ezerx Health Tech for Rs 28.69 crore, a non-invasive diagnostic and ancillary medical device company. The acquisition will also increase Sun Pharma’s stake in Agatsa Software Private Limited by 4% for Rs 4.5 crore, bringing its total stake to 30.13 percent post-closing. Agatsa focuses on research, development, and commercialization of non-invasive medical devices in the diagnostic health segment. The acquisitions are expected to be completed by October 2023 for Ezerx and December 2023 for Agatsa, subject to certain conditions.

Bajaj Finance to raise Rs 10,000 crore via QIP, preferential issue

Bajaj Finance plans to raise Rs 10,000 crore through qualified institutions placement and preferential issue of shares. The company aims to raise up to Rs 8,800 crore via QIP and Rs 1,200 crore via preferential allotment to promoter Bajaj Finserv. The company will seek shareholder approval for the proposed QIP and PI through an Extra Ordinary General Meeting, subject to relevant provisions from the Ministry of Corporate Affairs.

Fed’s bid to avoid recession tested by yields nearing 20-year highs

The Federal Reserve is potentially risking its soft landing of the economy by accepting a run-up in long-term interest rates to the highest levels since 2007. The surge in 10-year Treasury yields, which rose over half a percentage point to surpass 4.7%, heightens the danger of a financial blowup similar to the regional bank breakdown in March. Longer run, it threatens to undercut the economy by raising borrowing costs for consumers and companies. The feedback effect fuels fears of a hard landing, with the rise in so-called real rates, which remove the impact of inflation. Yields on 10-year inflation-linked Treasuries have soared to levels rarely seen over the past two decades.

STOCK IN NEWS 

• Valiant Laboratories: On October 6, the pharmaceutical company will make its market debut. The share issuance price is Rs 140. The allocation takes place on October 4.

   

• Tata Motors: Despite the yearly two-week summer plant downtime, wholesale volumes were at 96,817 automobiles (excluding the Chery Jaguar Land Rover China JV), up 4 percent from the April-June period and up 29 percent from the year-ago quarter. In comparison to the same period last year, wholesale volumes for the first half of the financial year increased by 29% to 190,070.

   

• Sun Pharma: The business has made the decision to buy a 37.76 percent share in Ezerx Health Tech Private Limited, which is involved in the development, manufacturing, and distribution of ancillary medical equipment and non-invasive diagnostic tools. About Rs 29 crore would be spent on the purchase.

   

• KPI Green: The business has received fresh orders totaling 12.10 MW for the construction of solar power projects, with 3.10 MW of the capacity being carried out by KPI Green Energy Limited and 9 MW by M/s. A fully owned subsidiary of the business under the “Captive Power Producer (CPP)” division is Sun Drops Energia Private Limited. The order’s dollar amount was not specified.

   

• BHEL: According to Bharat Heavy Electricals, it has won two independent arbitration suits against Jaiprakash Power Ventures Limited.

   

• Som Distilleries: According to the company, its board has authorized the Rs 349.24 floor price for the issuance as well as the opening of the company’s fund raise.

   

• Lupin: Tolvaptan Tablets, 15 mg, 30 mg, 45 mg, 60 mg, and 90 mg, a generic version of Jynarque Tablets, 15 mg, 30 mg, 45 mg, 60 mg, and 90 mg, of Otsuka Pharmaceutical Co., Ltd., have received provisional approval from the United States Food and Drug Administration (US FDA). The Lupin factory in Nagpur, India, will produce this product. The expected yearly sales of Tolvaptan Tablets (RLD Jynarque) in the US were $287 million.

• Adani Wilmar: According to the corporation, “strong” volume growth in “double-digits” was achieved as a result of significant prospects in packaged staple goods and excellent execution. Due to a greater emphasis on expanding the rural distribution network, it was claimed that rural sales have been growing more quickly. According to the company, the Food & FMCG business continues to expand quickly, with segment revenue increasing by almost 25% YoY and underlying volume increasing by 18% during the quarter on a standalone basis.

   

• JLR: Despite the customary two-week summer plant downtime, wholesale volumes were at 96,817 cars (excluding the Chery Jaguar Land Rover China JV), up 4 percent from the April-June period and 29 percent from the prior quarter. In comparison to the same period last year, wholesale volumes for the first half of the financial year increased by 29% to 190,070.

   

• Organic Recycling Systems: On October 6, the provider of waste management solutions will list its equity shares on the BSE SME. Each share is priced at Rs. 200. For the next 10 days, the shares will be offered for sale in the trade-for-trade market.

   

• Vinyas Innovative Technologies: The engineering and electronics manufacturing services provider Vinyas Innovative Technologies will launch on the NSE Emerge on October 6. The share price is Rs. 165 under the offer. The trade-for-trade market will allow trading of its equity shares.

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