Morning Update: Sensex gains, at 67646 level: While Nifty at 20146 level

 Indian Market 

FII AND DII 

 Indian Market News

1. The Nifty begins below 20,150, while the Sensex falls 230 points; Tata Steel, BEL, and ONGC are among the stocks to watch.
2. Asian markets are trading lower, with the Hang Seng down 1% and the Taiwan Weighted down 0.8%.
3. As attention shifts to the Fed, Wall Street falls and Treasury yields rise.
4. GIFT Nifty shows a solid opening; US and Asian markets slump
5. Oil prices rise due to supply concerns and a resurgence in China demand.
6. Windfall tax on crude oil increased from Rs 6,700 to Rs 10,000 per tonne.
7. Gold prices rise ahead of a possible Fed rate cut.
8. The Defence Acquisition Council approves the Acceptance of Necessity for the purchase of 12 Su-30 MKI aircraft from HAL.
9. Tata Steel and the UK Government have agreed to invest £1.25 billion in the Port Talbot plant
10. Bharat Electronics has received orders worth Rs 3,000 crore.
11. Madhya Pradesh Jal Nigam awards HFCL a Rs 1,015 crore order.

Global Market Check

GIFT Nifty

The GIFT Nifty index started slightly positive, gaining 25 points, while futures reached 20,180 points after reaching a high of 20,194 points.

US Markets

Stock futures in the US rose as investors await the Federal Reserve’s next policy decision.

Dow Jones Industrial Average futures added 17 points, while S&P 500 and Nasdaq 100 futures increased 0.03 percent and 0.02 percent, respectively.

The broad market index and Nasdaq both ended the previous trading week in the red, marking their second straight week of losses.

The Dow managed to end the week 0.1% higher.

Investors are expecting the Fed to hold interest rates steady, but traders will be closely watching the central bank’s stance on inflation.

European Markets

European markets closed slightly higher on Friday due to the European Central Bank’s suggestion that its latest hike may be its last.

The Stoxx 600 index rose 0.2%, with most sectors and major bourses in positive territory. Household goods led the gains, up 1.4%.

Luxury stocks saw a boost from Chinese retail sales figures. The ECB increased interest rates by 25 basis points, taking its main rate to a record high of 4%. Staff revised inflation forecasts for this year and next slightly higher, but nudged its 2025 forecast lower. Staff also revised economic growth expectations for the euro zone lower.

  Asian Markets

Asia-Pacific markets experienced a drop on Monday due to a week of central bank decisions. The U.S. Federal Reserve’s decision is expected early Thursday, while Australia’s central bank will release its policy meeting minutes on Tuesday. The Bank of Japan will conclude its monetary policy meeting on Friday, and the People’s Bank of China is expected to release its loan prime rate decisions on Friday. The S&P/ASX 200 in Australia started the week down 0.13 percent, while South Korea’s Kospi and Kosdaq fell 0.32 percent and 0.42 percent respectively. Markets in Japan are closed for a public holiday.

Oil Prices

Oil prices reached a 10-month high on Friday and posted a third weekly gain due to supply tightness, primarily driven by Saudi Arabian production cuts, and optimism around Chinese demand to lift crude. Brent crude futures rose by 0.3% to settle at $93.93 a barrel, while U.S. West Texas Intermediate futures rose by 0.7% to close at $90.77 a barrel. Oil prices are on track for their biggest quarterly increase since Russia’s invasion of Ukraine in Q1 2022. Supply concerns continue to drive prices, as Saudi Arabia and Russia announced an extension of their combined supply cuts of 1.3 million barrels per day to the end of this year. China’s better-than-expected industrial output and retail sales data have also boosted oil prices, with Chinese oil refinery processing rising by nearly 20% from a year earlier.

Dollar Index

The Dollar index closed 0.06 percent lower in futures at 103.12, while the dollar’s value was near Rs 83.02.

Gold Prices

Gold rose by 1% on Friday due to a weaker dollar and safe-haven buying after the United Auto Workers union ended strikes at Detroit automakers. Gold futures also gained 0.9% to $1,949.70. Spot gold was up 0.9% at $1,927.79 per ounce, while US gold futures rose 0.9% to $1,949.70. The dollar slipped 0.3% against its rivals, making gold less expensive for other currency holders.

News Updates

Monetary policy to dominate commodity market sentiments this week

Global markets saw a boost as Chinese regulators boosted domestic consumption, while US inflationary pressures limited gains elsewhere. The US dollar reached a six-month high of 105.43, driven by persistent US inflation. The US Consumer Price Index rose by 0.6% in August, the largest monthly increase since May 2022. Core inflation moderated for the fifth consecutive month to 4.3%, aligning with market expectations. Retail sales also exceeded expectations, demonstrating consumer resilience. This leaves room for potential interest rate hikes in November or December, following an expected pause this month.

Jupiter Life Line Hospitals likely to list with 30% premium today

Jupiter Life Line Hospitals is expected to list with a 30% premium over the issue price of Rs 735 per share on September 18. This is due to robust subscription numbers, strong brand recall in the Mumbai Metropolitan Area (MMR) region, increasing demand in the healthcare sector, and bullish sentiment in the equity markets. The initial public offering of the hospital chain was subscribed 63.72 times during September 6-8, with qualified institutional buyers buying 187.32 times the allotted quota. High net-worth individuals and retail investors also supported the issue, putting in bids 34.75 times and 7.73 times the portion set aside for them. Jupiter Life Line Hospitals operates three hospitals in the Mumbai Metropolitan Area and western region of India.

Primary market booms with 10 public issues lined up to raise over Rs 2,400 cr this week

The primary market is experiencing a surge with 10 companies preparing to issue their initial public issues this week, raising at least Rs 2,400 crore. The first IPOs in the mainboard segment will be held by Telangana-based ethnic apparel retailer Sai Silks Kalamandir and Delhi-based real estate developer Signature Global. The first IPOs will open on September 20 and close on September 22, with Sai Silks aiming to raise Rs 1,201 crore from the issue. The issue includes fresh shares worth Rs 600 crore and an offer-for-sale (OFS) of 2.7 crore equity shares by the promoter group.

PSU bank stocks beat private peers in one-year returns, keep brokerages upbeat

Public sector banks (PSBs) have become the dominant players in the Indian banking sector in the past year, outperforming private counterparts. Analysts predict continued growth in PSU banks due to consolidation efforts, credit growth, and improved asset quality. PSBs like UCO Bank and Punjab & Sind Bank have seen impressive returns of over 187% and 148%, respectively. Bank of Maharashtra and Central Bank of India have also seen significant gains, rising 126.12% and 92.72%, respectively. The Nifty PSU Bank Index, which tracks PSB performance, has surged by 52% over the past year, surpassing the Nifty Bank Index’s 12% gain in the same period.

STOCK IN NEWS 

• Tata Steel: The UK government and the Tata group corporation announced a collaborative deal to invest 1.25 billion pounds in the Port Talbot facility’s electric arc furnace steelmaking. This includes a grant of up to 500 million pounds from the UK government. Over a ten-year period, the Port Talbot project will reduce direct emissions by 50 million tonnes. The initiative would also entail reorganising Tata Steel’s balance sheet, potentially eliminating the company’s ongoing cash losses from its UK operations as well as the non-cash impairment of its legacy investments.

• Jupiter Life Line Hospitals: On September 18, the Mumbai-based supplier of healthcare services will float its equity shares on the BSE and NSE. The share price for the offering has been set at Rs. 735.

   

• Hindustan Aeronautics: The Defence Acquisition Council has given its permission for the Acceptance of Necessity (AON) for the purchase from Hindustan Aeronautics of 12 Su-30MKI aircraft, along with related equipment and an upgrade to the aircraft’s avionics.

   

• Bharat Electronics: The Indian Navy has ordered six Next Generation Missile Vessels (NGMV) class anti-surface warfare corvettes from Bharat Electronics, a state-owned defence contractor, for a total of Rs 2,118.57 crore. The equipment includes sensors, weaponry, fire control systems, and communication equipment.

   

• Indian Oil Corporation: The board of directors has given the firm permission to make a further investment in Hindustan Urvarak and Rasayan (HURL) totaling Rs. 903.52 crore. HURL is an Indian Oil joint venture established for the construction of fertiliser plants in Gorakhpur, Sindri, and Barauni.

   

• Texmaco Rail & Engineering: The board of directors of Texmaco Rail & Engineering has given the rail solution provider permission to raise up to Rs 1,000 crore through the sale of equity shares through qualified institutions placement (QIP). Additionally, it was given permission to raise up to Rs 50 crore through a preferential offer to the promoters.

   

• Zomato: On September 14, the Slovak Republic’s step-down subsidiary of the world’s largest food delivery company, Zomato Slovakia s.r.o., began the process of liquidation. Additionally, Zomato Slovakia doesn’t run any active businesses. Zomato Slovakia is not a significant component of the business, so its closure won’t have an impact on the company’s sales or turnover.

• Wipro: The leader in technology consulting and services has a new location in Jefferson City, Missouri. In order to recruit local talent, the office will collaborate with the state’s Jobs for America’s Graduates (JAG) programme and act as a basis for more than 500 employees.

   

• Lemon Tree Hotels: Peninsula Suites has been established by Lemon Tree Hotels in Bengaluru. This is the sixth property owned by Lemon Tree in the city. The hotel management division of Lemon Tree Hotels, Carnation Hotels, is in charge of overseeing the facility.

   

• Tata Elxsi: The company has partnered internationally with INVIDI Technologies to deliver product engineering and innovation-driven design services. Through this agreement, operators will be able to offer personalised advertising solutions and develop new sources of income.

   

• Brigade Enterprises: Subsidiary Brigade Tetrarch has signed a sale agreement to purchase a 5 acres, 35.25 guntas-sized land block in Bangalore from Bangalore Ceramics for Rs 123.5 crore. On this plot of land, it would build a residential building with a potential gross revenue of close to one million square feet (about Rs 800 crore).

   

• Restaurant Brands Asia: Tata Mutual Fund, Franklin Singapore 3 Banken, TD Emerging Markets Fund, Plutus Wealth Management LLP, Amal N Parikh, Quant Mutual Fund, ICICI Prudential Life Insurance Company, and Goldman Sachs Funds-Goldman Sachs Asia Equity Portfolio Through open market transactions, Asia Stock-Mix has collectively acquired a 23.92 percent ownership, or 11.83 crore equity shares, in the network of quick-service restaurants for Rs. 1,349 crore. However, promoter company QSR Asia Pte Ltd was the deal’s seller, selling 12.54 crore shares at an average price of Rs 119.1 per share, or 25.36 percent of the paid-up equity. QSR Asia held 40.8 percent of the company’s shares as of June 2023.

   

• Five-Star Business Finance: SCHF PV Mauritius, a foreign business, sold 30.19 lakh shares, or 1.03 percent of the non-banking finance firm, for a total of Rs 211.35 crore, or an average price of Rs 700.15 per share. As of June 2023, it owned 1.2 percent of the company’s shares. Smallcap World Fund Inc, a foreign portfolio investor, purchased all of the Five-Star shares in this transaction, in addition to its existing ownership of 1.64 percent, or 47.78 lakh shares, as of June 2023.

   

• Panacea Biotec: At an average price of Rs 140.65 per share, Dr. Cyrus Poonawalla’s Serum Institute of India sold 4 lakh shares in the pharmaceutical company Panacea Biotec. Serum sold 50,000 shares of the firm earlier in the current quarter, bringing its ownership to 42.7 lakh shares or 6.97 percent as of the end of June 2023.

   

• Satin Creditcare Network: At an average price of Rs 237.45 per share, the open-ended Finnish fund EVLI Emerging Frontier Fund purchased 5.14 lakh shares, or 0.51 percent of the microlending firm Satin Creditcare Network.

   

• ONGC and Oil India: The windfall tax on domestic crude oil production has been raised by the Union government from Rs. 6,700 per tonne to Rs. 10,000 per tonne. The price hike will take effect on September 16. The special additional excise tax (SAED) on aviation turbine fuel (ATF) has been reduced by the government from 4 rupees per litre to 3.50 rupees per litre. Last Friday, the price of benchmark Brent crude rose to $93.93 per barrel, up more than 30% from June lows.

   

• Aditya Vision: Promoters of the electronic retail chain Aditya Vision sold 5.39 percent of their shares, with Sunita Sinha selling 5 lakh shares at an average price of Rs. 2,203.02 per share and Nishant Prabhakar selling 1.48 lakh shares at a price of Rs. 2,200.85 per share. The purchaser of some of those shares, though, was HDFC Mutual Fund, which bought 50,000 shares at an average cost of Rs 2,199.74 each.

   

• Adani Total Gas: The Adani Group company has received a work order from the Ahmedabad Municipal Corporation worth between Rs 130 and Rs 150 crore. The work order is for the design, construction, financing, and operation of a 500 TPD bio-CNG (CBG) plant on a PPP model at Pirana / Gyaspur in Ahmedabad. The Ahmedabad Municipal Corporation will provide the site for the CBG plant’s installation as well as 500 TPD of trash right outside the plant.

   

• Indian Railway Catering and Tourism Corporation: For a period of six months, the state-owned business has launched a pilot project with Amazon for e-Marketplace, recharges, and bill payment. This would entail integrating Amazon e-commerce items on the websites and mobile applications of the IRCTC. In addition to bill payment and recharge services, this effort promises to give IRCTC consumers access to Amazon’s eMarketplace services.

   

• Samvardhana Motherson International:  Electroplating US LLC (ME-US), an indirect wholly owned subsidiary of Samvardhana Motherson International, has been established in Delaware, USA. The company and assets that SMP Automotive Systems Alabama Inc. just purchased from Bolta US Ltd. will be owned and managed by ME-US.

   

• PVR Inox: The network of multiplexes has a five-screen theatre now operating in Ahmedabad’s Himalaya Mall. Since its inauguration, the firm has opened 1,713 screens over 362 properties in 115 cities (including India and Sri Lanka), making it the largest multiplex network in the world.

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