Morning Update: Sensex gains, at 66329 level: While Nifty at 19760 level

 Indian Market 

FII AND DII 

 Indian Market News

1. Indices slightly lower, Nifty reclaims 19,750; SBI, HDFC Life, Tech Mahindra lead gains

2. GIFT Nifty: Trends on GIFT Nifty show a lackluster start for the larger market in India, with a gain of 35 points or 0.18 percent. The GIFTNifty futures were trading at 19,700-level.

3. Indices trade marginally lower in pre-open; Glenmark, Wipro in spotlight

4. Asian markets muddled; Japan’s Nikkei worst affected

5. US stocks close at lowest since June, Treasury yields jump on hawkish Fed

6. Hawkish Fed speech pulls Sensex down for 3rd day, Nifty below 19,750

7. Japan Data Watch | Bank of Japan keeps policy balance rate at -0.1%

8. Oil prices climb as supply concerns exceed demand anxieties

9. JPMorgan is adding India to its emerging-markets bond index

10. NSE adds over 8 lakh active clients in August as figure goes up for second straight month

11. Zaggle Prepaid Ocean Services IPO expected to see modest listing on bourses

12. Glenmark will sell 75% ownership in arm Glenmark Life Sciences to Nirma for Rs 5,651 cr

Global Market Check

GIFT Nifty

The GIFT Nifty index started slightly positive, gaining 11 points, while futures reached 19,662 points after reaching a high of 19,676 points.

US Markets

Stock futures were flat in overnight trading on Thursday, with the Dow Jones Industrial Average, S&P 500, and Nasdaq 100 futures also flat.

This follows a three-day losing streak for all three stock averages due to the Federal Reserve’s signal to keep interest rates higher for longer.

The S&P 500 and Nasdaq Composite are down 2.7% and 3.5% this week, respectively, on track for their worst week since March and their third negative week in a row.

The Dow has dipped 1.6% in the meantime.

Bond yields surged after the central bank forecasted one more rate hike for 2023, with the 10-year Treasury yield reaching its highest level since 2007.

Additionally, investors became concerned about a government shutdown, which could further slow down the economy.

European Markets

European markets closed lower due to interest rate decisions from central banks in England, Turkey, Sweden, Switzerland, and Norway.

The Stoxx 600 index ended down 1.3%, with major bourses and sectors in negative territory.

Travel and leisure stocks saw the biggest drop, with mining stocks shedding 2.6%.

The Bank of England paused its hiking cycle, keeping the policy rate at 5.25 percent.

The Swedish and Norwegian central banks both hiked interest rates, while the Swiss National Bank paused its hiking cycle.

The US Federal Reserve’s decision to hold interest rates steady has also impacted global markets.

  Asian Markets

Asia-Pacific markets experienced a decline ahead of the Bank of Japan’s rate decision, with investors closely monitoring whether the central bank will change its ultra-easy monetary policy.

A poll of Reuters economists predicted the BOJ to hold its benchmark policy rate at -0.1 percent.

BOJ Governor Kazuo Ueda believes an ultra-easy monetary policy is needed until sustained inflation at 2 percent.

Japan’s headline inflation has remained above this target since April 2022, with the latest reading at 3.2% for August.

Japan’s Nikkei 225 fell 1.15 percent, while the Topix slid 0.92 percent.

The S&P/ASX 200 shed 1.4% in Australia, while South Korea’s Kospi and Kosdaq saw smaller losses.

Oil Prices

Oil prices rebounded in trading on Thursday due to a Russian ban on fuel exports, shifting focus from Western economic headwinds to throttled crude supply to the end of 2023. Brent futures for November delivery rose by 0.15% to $93.67 a barrel, while US West Texas Intermediate crude rose by 0.41% to $90.00, the lowest since September 14. Russia temporarily banned gasoline and diesel exports to all countries outside a circle of four ex-Soviet states.

Dollar Index

The Dollar index closed 0.17 percent lower in futures at 105.39, while the dollar’s value was near Rs 83.12.

Gold Prices

Gold continued its decline for a third consecutive day, driven by a surge in the US dollar and bond yields due to the Federal Reserve’s hawkish stance on interest rates. Spot gold fell 0.6% to $1,917.65 per ounce, while US gold futures eased 1.5% to $1,938.00. The Fed’s updated quarterly projections suggest that rates may be lifted once more this year and kept tight through 2024. Gold traders interpreted the Fed’s higher-for-longer messaging as a factor.

News Updates

Wipro’s Chief Financial Officer Jatin Dalal resigns, Aparna Iyer to take over

Wipro’s Chief Financial Officer, Jatin Dalal, has resigned from the company, effective September 22. Dalal, a 21-year veteran of Wipro, has been the company’s CFO since 2015. His last day with the company will be November 30. Aparna Iyer, the CFO of Wipro’s FullStride Cloud Global Business Line, will take over as CFO. Dalal expressed gratitude to Wipro for the numerous opportunities given to him over the last two decades and expressed his eagerness to pursue his professional goals outside the organization. This comes as the company has seen several top-deck exits in 2023, including the departures of Chief Operations Officer Sanjeev Singh, Americas 2 CFO Nithin V Jaganmohan, India head Satya Easwaran, iDEAS business head Rajan Kohli, Vice President Gurvinder Sahni, Americas 1 CFO Kamini Shah, head of healthcare and medical devices unit Mohd Haque, and head of the manufacturing and hi-tech business unit Ashish Saxena.

SEBI to ease borrowing norms for large corporates, removes penalty, introduces incentives

The Securities and Exchange Board of India (SEBI) has relaxed borrowing norms for large corporates by raising the monetary threshold for defining them and removing the penalty for not meeting the mandate of raising at least 25% of incremental borrowings for a financial year through capital markets. The SEBI Board has also introduced incentives and moderated disincentives. The Board has also retained the requirement that compliance with the framework will be met over a contiguous block of three years and dispensed with the requirement for LCs to file a statement identifying itself as an LC and statement regarding compliance with the framework.

Nirma makes big pharma push; acquires 75% in Glenmark Life Sciences for Rs 5,651 cr

Nirma, a chemicals-to-building-materials conglomerate, has agreed to acquire a 75% stake in Glenmark Life Sciences, a listed API player, for Rs 5,651 crore. The deal, valued at around Rs 7,500 crore, will be made through a mandatory open offer to all public shareholders, as per Sebi regulations. Glenmark Pharma, the parent company of Glenmark Life Sciences, will own 7.84 percent in the divestment. Moneycontrol first named Nirma as a suitor in the sale process of Glenmark Life Sciences to reduce Glenmark Pharma’s debt burden.

Sebi eases norms for investors to access unclaimed amount in debt securities, REITs, InvITs

The Securities and Exchange Board of India (SEBI) has approved amendments to make it easier for investors in debt to access unclaimed amounts in debt-listed securities, Real-Estate Investment Trusts (REITs), and Infrastructure Investment Trusts (InvITs). The SEBI Board approved amendments to the Investor Protection and Education Fund (IPEF) Regulations, Listing Obligations and Disclosure Requirements (LODR) Regulations, InvIT Regulations, and REIT Regulations to streamline the credit framework for unclaimed amounts of investors in listed entities other than companies. The proposals for transferring unclaimed amounts lying in escrow accounts for more than seven years to the IPEF for debt listed entities other than companies under LODR Regulations and to transfer unclaimed or unpaid amounts to investors in REITs and InvITs to IPEF were approved in a meeting held on September 30, 2022. The Board aims to prescribe a uniform process of claim for unclaimed amounts in a streamlined manner.

Institutional buyers put Rs 1,450 crore bids for SJVN OFS, stock falls 13% on BSE

Institutional investors have oversubscribed the SJVN offer-for-sale (OFS), with bids worth over Rs 1,450 crore. The government’s 4.92 per cent share-sale offer in state-owned power producer SJVN was oversubscribed, with institutional investors bidding for over 20.91 crore shares against 8.70 crore reserved for them. Non-institutional investors subscribed the issue by over two times, totaling over Rs 1,450 crore. The share-sale will open for subscription on Friday for retail investors, who will receive an additional discount over the floor price. SJVN shares fell 13.05 per cent to close at Rs 71.08 apiece on the BSE. The government is selling up to 19.33 crore shares or 4.92 per cent stake at a floor price of Rs 69 apiece.

Vedanta approves raising funds up to Rs 2,500 crore via NCDs

Vedanta Limited has approved raising funds up to Rs 2,500 crore via non-Convertible Debentures (NCDs) on a private placement basis. The company’s board of directors considered and approved the issuance of 2,50,000 Secured, Unrated, Unlisted, Redeemable, NonConvertible Debentures (NCDs) of face value Rs 1,00,000 each, aggregating up to Rs 2,500 crores in one or more tranche(s). The issuance of NCDs is part of the company’s routine refinancing in the ordinary course of business. Vedanta’s gross debt was Rs 66,182 crore as of end-March, and its net debt soared from Rs 38,076 in December 2022 to Rs 45,260 crore as of March 2023. The company’s net debt-to-earnings ratio was at 1.28 times as of March.

STOCK IN NEWS 

• Glenmark Pharmaceuticals: The pharmaceutical business has a binding agreement with Nirma to sell a 75% ownership in Glenmark Life Sciences (GLS), one of its subsidiaries. At a price of Rs 615 a share, the company will sell its holding for Rs 5,651.5 crore. Glenmark Pharma will hold 7.84 percent of GLS following the stock transaction. In accordance with the deal, Nirma will make an obligatory open offer to all GLS public shareholders.

• Vedanta: The mining company’s board of directors has given the go-ahead for it to raise up to Rs 2,500 crore through non-convertible debentures (NCDs), in one or more tranches, through a private placement.

• SJVN: Given the oversubscription in the issue, which is in addition to the base issue size of 9,66,72,961 shares or 2.46 percent stake, the Government of India will exercise its greenshoe option of 2.46 percent stake or 9,66,72,961 shares for the offer-for-sale of the hydroelectric power generation company on September 22. As a result, the total amount of equity shares offered for sale will not exceed 19,33,45,923 equity shares, or 4.92 percent of the total paid-up equity.

• Zaggle Prepaid Ocean Services: On September 22, Zaggle Prepaid Ocean Services will make its BSE and NSE debut. Zaggle is a provider of commercial spend management software and services. In the T+3 timeline, this firm will list for the second time (the issue’s closing date is September 18 plus three days). The fixed issue price per share is Rs 164. The shares were distributed on September 20.

• Infosys: Nigeria’s Guaranty Trust Bank, the financial arm of Guaranty Trust Holding Company Plc, will receive its Finacle Digital Banking Suite from Infosys Finacle, a division of EdgeVerve Systems, the second-largest IT services provider in the nation. Guaranty Trust Bank’s multi-country digital transformation programme will use Infosys Finacle.

• Wipro: Jatin Pravinchandra Dalal has left his position as the organization’s chief financial officer, effective November 30, in order to pursue other career opportunities. Aparna C. Iyer has been named the IT services company’s new chief financial officer, starting immediately. Aparna will join the Wipro Executive Board and report to CEO Thierry Delaporte.

• Samhi Hotels: On September 22, the company will list on the stock exchange for the first time. Following its IPO, this company will become the third to list in the T+3 timeline. The fixed issue price per share is Rs 126.

• ICICI Bank: The second-largest private sector lender in the nation, ICICI Bank, has agreed to invest about Rs 5 crore in the healthcare services platform Quantum CorpHealth. Equities and Compulsorily Convertible Preference Shares (CCPS) will be used to complete the acquisition. Following the investment, the bank will subscribe for 100 equity shares and 3,33,200 CCPS, giving it a 9.99% stake in Quantum CorpHealth.

• Zuari Industries: The business disclosed that on September 26th, its board of directors will discuss the plan to raise money. Non-convertible debentures (NCDs) will be issued as part of a private placement to raise money.

• InterGlobe Aviation: To strengthen the connectivity between India and the UK, IndiGo and British Airways have agreed to codeshare. British Airways will now be able to expand their current network by three extra routes thanks to their codeshare agreement with IndiGo.

• Tech Mahindra:The merger of Tech Mahindra Credit Solutions Inc. and its parent company Tech Mahindra (Americas) Inc. has been approved by Tech Mahindra, an IT solutions provider. An entirely owned material subsidiary of Tech Mahindra is Tech Mahindra (Americas), Inc. The two companies’ combination will lower compliance risk and optimise operational costs.

• Samhi Hotels: On September 22, the company will list on the stock exchange for the first time. Following its IPO, this business will be the third to list in the T+3 timetable. The fixed issue price per share is Rs 126. Zaggle Prepaid Ocean Services will also list on bourses today in addition to Samhi Hotels.

• JSW Steel: Under an agreement with West Virginia Properties for $24 million, Caretta Minerals LLC, a step-down subsidiary of Periama Holding LLC, will sell its property, plant, and equipment as well as its mineral rights. This is because operating the mines would not be financially feasible without a coal mining lease and a plant lease. JSW Steel’s step-down subsidiary is Periama Holding LLC.

• Sunteck Realty: The real estate company and IFC are collaborating to establish a collaborative platform with a combined investment of up to Rs 750 crore in order to support the construction of roughly 12,000 high-quality housing units across four to six green housing projects in the Mumbai Metropolitan Region (MMR). The maximum amount of money IFC is willing to contribute is Rs 330 crore, with Sunteck Realty contributing the remaining sum.

• NBCC (India): SAIL has given the state-owned construction business NBCC (India) the go-ahead to build a number of development projects at the township and mines of the Bhilai steel mill. The order is worth Rs 100 crore.

• Apollo Micro Systems: The business has integrated Apollo Defence Industries as a subsidiary. Apollo Defence will partner with both domestic and foreign businesses to develop defence platforms.

   

• IRB Infrastructure Developers: Special-purpose vehicle Samakhiyali Tollway has completed its financing for the design, develop, finance, and transfer BOT (Toll) mode project to upgrade NH-27 in Gujarat to six lanes with a paved shoulder. The project will cost Rs 2,092 crore in total. A total of Rs 1,446 crore in financing has been secured from project lenders. The company’s shareholders have previously given their approval for this project’s implementation through IRB Infrastructure Trust.

• Electronics Mart India: Promoter Pavan Kumar Bajaj of Electronics Mart India sold 96.18 lakh shares, or 2.5 percent of the company, through open market transactions for an average price of Rs. 143.03 per share. However, at an average price of Rs 143 a share, Motilal Oswal Mutual Fund purchased 60.4 lakh shares, or 1.57 percent of the total.

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