Morning Update: The BSE Midcap and Smallcap indices are both down 1%. Except for IT, all other indices are trading in the red, with capital goods, electricity, real estate, oil and gas, and PSU banks down 1-2 percent.

Sensex- down 300 Points at 65695

Nifty 50 – down 90 points at 19561

 Indian Market 

FII AND DII 

 Indian Market News

1. 1. The BSE Metal Index fell 1%, led by SAIL India, APL Apollo, and NMDC.
   2. The Shanghai Composite is down 1%, while the Straits Times is down 0.3%.
   3. After robust employment growth and weaker pay growth, US indices end significantly higher with technology.
   4. The GIFT Nifty predicts a gap-down start; US equity futures each decline 0.5%.
   5. The dollar and yen rise on the journey to safety as the Hamas onslaught disturbs nerves.
   6. As a result of the Middle East turmoil, US stocks are down and oil is up.
   7. Oil prices have risen by more than $4 as market volatility in the Middle East continues.
   8. Inox Green Energy Services will sell its entire investment in Nani Virani Wind Energy.
   9. The SEBI tech panel has given MCX permission to build a new commodity derivatives platform.
   10. Som Distilleries has announced a strategic contract manufacturing arrangement for Punjab-based brands.
   11. The MCX has reached a 52-week high following the SEBI’s approval to create a commodity derivatives market.
   12. Prestige Estates reports a 69% increase in sales in the first half of fiscal year 24; share price rises to a 52-week high.
   13. IRB Infra trades flat following a 28% increase in toll revenue in September.
   14. Adani Energy Solutions buys Sangod Transmission Service; the stock drops 2%.

Global Market Check

Gift Nifty

The GIFT Nifty suggests a somewhat negative opening for the broader market with a loss of 87.5 points. GIFT Nifty futures traded at 19,682 points after touching a high of 19,698 points.

US Markets

Stock futures fell on Sunday due to the Israeli-Palestinian conflict escalated to a full-blown war after Hamas staged an invasion. The Dow Jones Industrial Average fell 207 points, or 0.6%, while S&P 500 futures fell 0.7% and Nasdaq 100 futures slipped 0.6%. On Friday, stocks rallied after stronger-than-expected US jobs data and a rise in Treasury yields. The Dow Jones Industrial Average gained 288.01 points, or 0.87 percent, to close at 33,407.58, while the S&P 500 added 1.18 percent at 4,308.50. The Nasdaq Composite rose 1.60 percent, closing at 13,431.34. The US economy added 336,000 jobs in September, but wages rose less than expected last month.

European markets

European stocks rose on Friday due to stronger-than-expected US jobs data. The Stoxx 600 index closed up 0.8%, with retail stocks leading the gains at 2.2%. The Labor Department reported a 336,000-fold increase in nonfarm payrolls in September, surpassing the consensus estimate of 170,000. The unemployment rate was 3.8%, slightly higher than the forecast.

Asian markets

The Asia-Pacific markets are expected to start positively as Chinese markets return from the Golden Week holidays. Investors will be monitoring inflation readings, trade data from China and India, and a monetary policy decision from Singapore’s central bank. Japan and South Korea’s markets are closed for a holiday. In Australia, the S&P/ASX 200 was up 0.61 percent in early trading after falling below the 7,000 mark for the first time since March. Hong Kong’s Hang Seng index is expected to open stronger than its last close of 17,485.98. However, Hong Kong has raised its typhoon warning to Signal 8 for Typhoon Koinu, which could cancel the morning session if not lifted before 9 a.m. local time.

Oil Prices

Oil prices rose on Friday but experienced their steepest weekly losses since March due to the lifting of Russia’s fuel export ban. Brent futures settled up 51 cents at $84.58 per barrel, while U.S. West Texas Intermediate crude futures settled up 48 cents at $82.79. High interest rates are expected to slow global growth and increase fuel demand, despite supply cuts by Saudi Arabia and Russia. U.S. job growth rose by 336,000 in September, exceeding economists’ forecasts of a 170,000 rise.

Dollar index

The Dollar index traded 0.22 percent lower in futures at 106.10, whereas the value of one dollar hovered near Rs 83.12.

Gold prices

Gold prices rose on Friday after a nine-day losing streak, thanks to a technical rebound. However, robust US jobs data raised concerns over another rate hike and kept gold on track for its second weekly drop. Spot gold was up 0.6% at $1,831.09 per ounce, but on track for its second consecutive weekly loss, down 0.9% so far. US gold futures settled 0.7% higher at $1,845.20 per ounce. The bounce in gold prices suggests selling pressure has been exhausted and short positions are covering.

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 

• Tata Consultancy Services: The largest exporter of IT services from India, Tata Consultancy Services, said that on October 11 the board of directors would review a proposal for the company to repurchase equity shares. Additionally, the company is expected to report financial results for the July-September and April-September quarters of FY24.

• Reliance Industries: A subsidiary of Reliance Industries, would receive an investment of Rs 4,966.80 crore from a subsidiary of the Abu Dhabi Investment Authority (ADIA). Reliance Retail Ventures is worth Rs 8.381 lakh crore in pre-money equity as a result of this investment. ADIA’s investment will result in a fully diluted ownership position in Reliance Retail Ventures of 0.59 percent.

• Titan Company: For the quarter that ended in September of FY24, the company’s revenue increased by 20% YoY, with growth in the jewellery, watches, and eyewear divisions of 19%, 32%, and 14%, respectively. CaratLane expanded by 45 percent YoY for the quarter, compared to a 29 percent YoY growth rate for emerging firms.

• Bank of Baroda: According to preliminary figures, the public sector lender’s total business reached Rs 22 lakh crore in the quarter that ended in September FY24, an increase of 15.88 percent over the same period the previous year. As of September FY24, the bank’s total advances increased by 17.43% YoY and 3.51% QoQ to Rs 10.25 lakh crore, and its deposits expanded by 14.63% YoY and 4.153% QoQ to Rs 12.49 lakh crore.

• Biocon: For the purpose of commercializing its formulation, Liraglutide, the Bengaluru-based biopharmaceutical business has entered into a cooperation arrangement with Juno Pharmaceuticals, a speciality pharmaceutical firm in Canada. A medication and device combination called liraglutide is used to treat and manage Type 2 diabetes and obesity.

• Metropolis Healthcare: According to preliminary data, the pathology labs and diagnostic centres chain’s core business revenue increased by 13% year over year for the quarter ending September FY24, which included hi-tech but omitted Covid, Covid associated, and PPP contracts. Volume growth, which showed good client acquisition, was primarily responsible for revenue growth.

• Prestige Estates Projects: For the three months that concluded in September of FY24, sales rose by 102% year over year to Rs 7,092.6 crore. At Rs 2,639.8 crore, the quarterly collections increased by 1% year over year.

• TVS Motor Company: In celebration of their 10-year relationship, TVS Motor and BMW Motorrad have begun building the BMW CE 02, their first electric car that was designed, developed, and industrialized together, at the Hosur factory. Additionally, they announced the release of 1.5 lakh units of the 310cc line of motorbikes from BMW Motorrad.

• Indian Energy Exchange:  A provider of recycling and waste management services, and the major energy exchange in India have signed a Share Subscription Agreement and Shareholders’ Agreement. In accordance with the terms of the deal, IEX will purchase compulsory convertible preference shares (CCPS) that will give it a 10% ownership in Enviro. In keeping with India’s net zero commitments, this strategic step supports IEX’s dedication to sustainability and decarbonization.

• Vakrangee: The technology company has a deal with JK Cement to provide lead generating services for the selling of grey cement. With 84 percent of Vakrangee Kendra locations in Tier-4 to 6 areas, this partnership will allow Vakrangee to provide cement goods to its consumers in even the most remote regions of the nation.

• Adani Green Energy: A subsidiary of Adani Solar Energy Jaisalmer Two Private Limited, an independent power producer for the sale of electricity to third parties or on power exchanges, has finished commissioning the full 150 MW solar power project at Bikaner, Rajasthan. The company’s total operational renewable production capacity has climbed to 8,404 MW with the successful commissioning of this unit.

• Aster DM Healthcare: An association of people (a consortium of 18 people) and Aster DM Healthcare (Trivandrum) have engaged into a lease agreement for the construction of a new hospital building and the expansion of Aster Whitefield Hospital in Bengaluru. Aster Whitefield Hospital’s bed capacity will rise from 347 beds to 506 beds as a result of the subsidiary’s addition of a new 159-bed block.

• Adani Energy Solutions: The Adani Group company has purchased all of the equity shares of Rajasthan Rajya Vidyut Prasaran Nigam’s Sangod Transmission Service (STSL). The STSL project entails the construction of a 220/132 kV, 160 MVA transformer, a transmission line, and a transmission project at Sangod.

• Aurum PropTech: In Dubai, United Arab Emirates, the business established a subsidiary called Aurum PropTech MENA LLC. The subsidiary will be engaged in information technology services and endeavours such product promotion and marketing for the Aurum PropTech Group.

• Capri Global Capital: Capri Global Capital’s gold loan AUM (assets under management) has reached the Rs 2,000 crore milestone. Only 13 months after the start of operations was the milestone reached. By March 2024, the company hopes to reach an AUM for gold loans of Rs 3,000 crore.

• Shree Renuka Sugars: For a total of Rs 235.5 crore, the sugar firm has acquired all of the equity interests of Anamika Sugar Mills. With the aid of this acquisition, the business will be better able to serve the markets of North and East India and develop a foothold in Uttar Pradesh, one of the states that produces the most sugar.

• Rail Vikas Nigam: The Maharashtra Metro Rail Corporation has given Rail Vikas Nigam a Letter of Acceptance (LOA) for the design and construction of an elevated metro viaduct. The 395 crore rupee order is anticipated to be finished in 30 months.

• PB Fintech: Through open market transactions, the European financial services company Societe Generale purchased 26.26 lakh equity shares, or 0.58% of the operator of Policybazaar, at an average price of Rs 762.8 per share. The cost of the stake purchase was Rs 200.34 crore. However, SVF Python II (Cayman) and SVF India Holdings (Cayman) of Softbank sold 1.14 crore equity shares, or 2.5% of the firm, for Rs 871.2 crore, or the same average price.

• Tata Steel: The provisional volume figures for the quarter ending September FY24 have been released by Tata Steel, a member of the Tata Group. India’s production volume increased by 4% on-year to 4.99 million metric tonnes during the quarter, but its delivery volume decreased by 1.8% to 4.82 million metric tonnes. During the second quarter of FY24, Europe’s production volume decreased 17.08% year over year to 1.99 million metric tonnes, and its delivery volume decreased 4.3% to 1.79 million metric tonnes.

• Arabian Petroleum: On October 9, the lubricants producer will float its equity shares on the NSE Emerge. Shares are being sold for Rs. 70 each. The company’s equity shares will be traded in the trade for trade market.

• KPI Green Energy: Under the captive power producer (CPP) division, the company has acquired fresh orders totaling 4.20 MW for the execution of solar power projects. With this, its total orders for solar power projects under the CPP sector have, to far, exceeded 100 MW.

• E Factor Experiences: On October 9, the event management business will make its NSE Emerge debut. 75 rupees per share has been selected as the issue price. The trade-for-trade market will allow trading of its equity shares.

• Multi-Commodity Exchange of India: The Sebi Technical Advisory Committee has advised the Multi-commodities Exchange of India to launch the commodities derivative platform and to notify SEBI of the intended launch date. Sebi has therefore reversed its instructions to MCX and MCXCCL to postpone the anticipated go-live of commodity derivative platforms. The Sebi recommends delaying the proposal to launch the new commodity derivative platform on September 29.

• GOCL Corporation:  a wholly-owned subsidiary of GOCL Corporation, has received a two-year, Rs. 766 crore order from Coal India for the delivery of explosives in bulk.

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