Morning Update: All the sectoral indices are trading in the green with auto, realty and PSU Bank up 1-2 percent. Adani Ports, M&M, Bharti Airtel, Adani Enterprises and Tata Motors were among major gainers on the Nifty, while losers were Dr Reddy’s Laboratories, Britannia Industries, Cipla, Divis Laboratories and Asian Paints.
Sensex- UP 356 Points at 65868
Nifty 50 – UP 100 points at 19613
Indian Market
FII AND DII
| FII sold | 997.76 Cr |
| DII purchased | 2,661.27 Cr |
Indian Market News
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- The Nifty Auto index is up 1%, led by TVS Motor Company, Tata Motors, and Samvardhana Motherson International:
- Asian markets are trading higher, with the Nikkei up 2% and the Hang Seng up 1.7%.
- Wall Street rises as investors keep an eye on the latest news from the Middle East war.
- Poll predicts that Indian inflation will fall to 5.50% in September as food price increases moderate.
- Oil and gold prices rise as a result of the Middle East war; US markets finish higher.
- The Container Corporation of India reported a 26% increase in domestic volumes year over year.
- The Phoenix Mills adds 2% in Q2 due to consistent growth in consumption.
- KPI Green Energy gains 4% after earnings increases 57% year on year in Q2FY24.
- According to CNBC-TV18, HDFC Bank raises lending rates by up to 10 basis points on various tenures.
- Bhavendra Kumar has been appointed Chief General Manager of Canara Bank by the Central Government.
Global Market Check
Gift Nifty
The GIFT Nifty index started slightly positive with a 75-point gain, while futures reached 19,580 points after reaching a high of 19,698 points.
US Markets
US stock futures were near the flat line on Monday night as Wall Street assessed the impact and risks of the Israel-Hamas conflict. Dow Jones Industrial Average futures traded near the flatline, while S&P 500 and Nasdaq 100 futures added 0.07 percent. Initially lower, stocks turned positive across the board, with the Dow adding 197 points or 0.6%, the Nasdaq Composite gaining 0.4%, and the S&P 500 adding 0.6%. West Texas Intermediate crude and Brent rose over 4% for their best days since April, while energy and defense stocks also surged.
European markets
European markets fell on Monday due to geopolitical turmoil in the Middle East, following the Hamas attack on Israel. The Stoxx 600 index closed 0.3% lower, with travel and leisure stocks down 2.4% and retail stocks dropping 1.9%. Oil and gas stocks rose 2.9% due to surged crude oil prices. The Israeli-Palestinian conflict escalated to a full-blown war after Hamas staged an invasion, with Israeli Prime Minister Benjamin Netanyahu stating that Hamas will pay a price it has never known before.
Asian markets
Asia-Pacific markets have seen significant gains despite pressures from the Hamas attack on Israel. Japan’s Nikkei 225 jumped over 2%, while the Topix also gained 1.9 percent. In Australia, the S&P/ASX 200 climbed 1.1%, while South Korea’s Kospi added 1.64 percent and the Kosdaq gained 0.71 percent. Hong Kong’s Hang Seng index closed at 17,658, indicating a positive open compared to the HSI’s close of 17,517.4. In the US, all three major indexes reversed losses, with the Dow Jones Industrial Average higher by 0.59 percent, the S&P 500 increasing by 0.63 percent, and the tech-heavy Nasdaq Composite adding 0.39 percent.
Oil Prices
Oil prices rose by about 4% on Monday due to the Israel-Hamas conflict continuing for the third day. The surprise attack on Israel by Palestinian militants Hamas, launched by Hamas on Saturday, led to a global benchmark Brent trading 3.9% higher at $87.85 a barrel. The attack came after thousands of rockets were sent from Gaza into Israel, resulting in at least 700 Israeli deaths and 313 Palestinian deaths.
Dollar index
The Dollar index traded 0.06 percent higher in futures at 106.08, whereas the value of one dollar hovered near Rs 83.29.
Gold prices
Gold prices reached a one-week high on Monday due to the ongoing conflict between Israeli forces and Palestinian Islamist group Hamas, highlighting the Middle East’s political unrest. Gold is considered a safe store of value amid economic turmoil, and spot gold was up 1.1% at $1,853.20 per ounce, its highest since September 29. US gold futures settled 1% higher at $1,864.30. If the Middle East situation worsens, gold prices could move towards $1,900. Wall Street’s main indexes fell, and crude prices jumped over 4% due to Middle East violence.
News updates
Private investment is ‘imperative’ for India’s growth story: Goldman Sachs
A pick-up in private investment is an important for improving India’s economy, according to a current research by Goldman Sachs. With the government seeking to cut down the budget deficit and the threat of subsidy bills going up, public capex—which seems to have pushed to the increase in real-investment growth recently—may come down, according to the analysts. In such a situation, private capex will need to ramp up to retain the country’s GDP growth pace.
The good news is that India Inc is well-positioned to raise its spending, according to the analysis. It has “an opportunity to increase investment growth over this decade, as companies re-align their supply chains and potentially diversify beyond China manufacturing locations”. Also, the analysts noted, “deleveraged corporate sector balance sheets and well-capitalized bank balance sheets, along with faster regulatory clearances could aid a revival in the corporate capex cycle”.
Hinduja in negotiations with private credit funds for around $800 million
Hinduja Group is in talks with private credit funds to raise roughly $800 million to back the acquisition of Reliance Capital, according to sources familiar with the issue, who asked not to be identified since the topic is private. As the parties haven’t yet obtained a contract, the details could potentially modify.
India has become a hotbead for private lending activity, in part because policy forbids local banks from offering loans for mergers and acquisitions. Over the last five years, the country raked up the greatest investment volume in Asia, according to research from the Global Private Capital Association, a body representing investors.
Reliance Capital is a shadow bank formerly managed former billionaire Anil Ambani, which was taken over by the central bank in 2021 after more than five big non-bank financiers defaulted over the space of only a few years.
Fitch increases Tata Steel rating to ‘BBB-‘; outlook remains constant
Fitch Ratings on October 9 upgraded Tata Steel Limited’s Issuer Default Rating (IDR) from ‘BB+’ to ‘BBB-‘. Also, the rating agency has maintained a consistent view in this regard. Additionally, the rating agency has revised the rating of $1 billion notes due in July 2024, which were issued by TSL’s subsidiary, ABJA Investment Co. Pte. Ltd., and guaranteed by TSL, from ‘BB+’ to ‘BBB-‘.
The upgrading is a result of the modification in Tata Steel Limited’s (TSL) Standalone Credit Profile (SCP) from ‘bb’ to ‘bb+’ due to reduced uncertainty and decreased financial risk related with its UK operations. Tata Steel’s strategic shift towards replacing blast furnaces with more cost-effective and environmentally friendly electric arc furnace (EAF)-based steelmaking capacity is predicted to boost the cost competitiveness of its UK operations, the rating agency claimed.
Vodafone Idea warns of existential threat owing to AGR penalty and interest in SC curative plea
Telecommunication giant Vodafone Idea (VI), in its curative petition at the Supreme Court pertaining to Adjusted Gross Revenue (AGR), has stated that the penalty and the interest on the penalty levied by the Supreme Court’s 2019 judgment are so substantial that they threaten the existence of the company.
According to the plea, which was filed in September 2023, “The company is already on the verge of a financial crisis, which threatens its very existence, and the judgment passed by this Hon’ble Court, prohibiting even the correction of clerical and arithmetical errors in the demands, foreclosing any reduction of the amount payable by thousands of crores of rupees and further imposing a penalty and interest on penalty, is highly unjust.”
VI has also argued that these two components are more significant than the principal sum itself. VI has stated in the plea that while it is not opposing the enforcement of the license fee, it has filed the petition since the verdict contains ‘serious jurisdictional problems.’
Dabur becomes 1st Indian FMCG business to complete cloud migration
FMCG firm Dabur India announced the successful culmination of one of the industries’ largest and most intricate cloud migrations. With this leap, Dabur stands as the inaugural Indian Fast Moving Consumer Goods (FMCG) Cloud-Only Enterprise.
This action is aimed at boosting Dabur’s resilience in business and strengthening the control over its IT operations. This transformation is anticipated to multiply services to merchants, partners, employees, and most significantly, customers. By implementing a cloud-only architecture, Dabur ensures 360-degree oversight across all its activities, achieving heightened efficiency, transparency, and agility.
“Leveraging the power of the cloud, artificial intelligence and its strong data foundation will transform Dabur into an Intelligent, Sustainable Enterprise, with the ability to innovate new products and services faster and provide superior customer experiences. The action is also in keeping with Dabur’s commitment to decrease carbon emissions and accomplish Net Zero by 2045,” said Kaustubh Dabral, Dabur India Limited’s Global Chief Information Officer.
The building of this digital core enables Dabur to receive real-time data insights. The cloud migration, performed in partnership with industry heavyweights such as SAP and Microsoft, was accomplished in 10 months. Accenture took on the role of the implementation partner, while Thoucentric, under Xoriant, managed Program Management and Governance. Azure emerged as the dominant cloud platform of choice.
Stock in News
GR Infraprojects: The contract agreement for the project worth Rs 3,637.12 crore with the NHPC has been inked by the Dibang Power (Lot 4) consortium, a joint venture between GR Infraprojects and Patel Engineering. The Dibang multipurpose project in Arunachal Pradesh has GR Infraprojects as a 50% partner, and it is anticipated that it will take 86 months to complete, including the civil works for Lot 4.
Genus Power Infrastructures: The provider of energy metering solutions Genus Power Infrastructures announced that its wholly owned subsidiary has been awarded two letters of award (LOA) for the appointment of advanced metering infrastructure service providers (AMISPs) totaling Rs. 3,115.01 crore.
Glenmark Life Sciences: For the fiscal year 2023–2024, the pharmaceutical firm has declared an interim dividend of Rs. 22.50 per share. October 17 will serve as the record date for calculating the list of shareholders eligible to receive the aforementioned interim dividend. By October 23, the interim dividend will be paid.
Mazagon Dock Shipbuilders: The state-owned shipbuilder Mazagon Dock Shipbuilders has signed a Letter of Intent (LOI) with a client in Europe for the construction of six firm and four optional 7500 DWT multipurpose hybrid power vessels. At the time of contract signing, the prices for the units would be set.
Dilip Buildcon: The infrastructure firm has a contract for the construction of the Dewas III and IV Dams in Gogunda on a single responsibility turnkey basis with the Water Resources Zone, Udaipur, Rajasthan, that includes ten years of operation and maintenance. The project, which would cost Rs 396.93 crore, should be finished in 44 months.
Bhageria Industries: In the Kingdom of Bahrain’s APM terminal, the business has been awarded a turnkey worldwide solar engineering, procurement, and construction (Solar EPC) project with extensive operation & maintenance and water proofing. The project’s total order value is Rs 104.49 crore, and it has a 11.40 MWp capacity.
Indian Oil Corporation: Anuj Jain has been appointed Director (Finance) of Indian Oil Corporation with effect from October 9. Anuj Jain has over 27 years of extensive experience in the financial, tax, and business facets of the oil & gas sector. Sanjay Kaushal no longer serves as the company’s CFO.
Hindustan Zinc: The business has got a notice from the Assistant Commissioner of the Central Goods and Services Tax (CGST), Udaipur, imposing a fine of Rs. 1.81 crore for the time period from July 2017 to March 2018. On the grounds that the corporation had improperly claimed an input tax credit, the decision was made.
IDFC First Bank: As part of consolidating its operations close to its corporate office, the bank has entered into an agreement with the National Securities Depository (NSDL) for the sale of its properties in Naman Chambers, BKC, Mumbai. The bank received Rs 198 crore for selling office space.
Maruti Suzuki India: The customs agency has issued a show-cause notice to the business. The corporation has been charged by the government with wrongfully using the basic customs tax concession based on the intended use of the imported products to evade customs duties totaling Rs 16.27 lakh.
Dr. Reddy’s Laboratories: Several other pharmaceutical firms, including Dr. Reddy’s Laboratories, Inc., were identified as defendants in a lawsuit that was submitted on October 6 to the Northern District of California’s federal district court. In the complaint, Mayo Clinic and Lifepoint Corporate Services claim that the defendants improperly restricted competition and upheld a shared monopoly in the sale of brand-name and generic Revlimid through their respective settlements of patent litigation. The complaint also makes claims under other state laws and federal and state antitrust laws. According to the complaint, the agreements under consideration unfairly delayed generic entry until 2022 and then improperly restricted generic competition until 2026. In the complaint, damages for alleged overpayments are requested, along with equitable remedy. Dr. Reddy’s contends that the accusations made against it are unfounded and vows to fight back in court.
Container Corporation of India: For the quarter that ended in September of FY24, Container Corporation of India reported a 26.13% year-over-year increase in domestic volumes at 2.61 TEUs (twenty feet equivalent), and a 3.50% increase in EXIM volumes at 9.69 TEUs. During the quarter, total volumes increased 7.59% YoY to 12.3 TEUs.
Phoenix Mills: According to the company, its total consumption climbed by 20% YoY to Rs 2,637 crore and by 10% YoY on a like-to-like basis. Retail revenue increased by 23% YoY to Rs 638 crore within the same time frame.
City Crops Agro: Will make its BSE SME debut on October 10 as an agricultural goods trader. Shares are being sold for 25 rupees each. For ten days, its equity shares will be traded on the trade-for-trade market.
Saakshi Medtech and Panels: Ashish Rameshchandra Kacholia, a renowned investor, purchased 6,22,800,000 equity shares in Saakshi Medtech and Panels through open market transactions for a total of Rs. 10.4 crore, or an average price of Rs. 167.01 per share. Hem Finlease, however, sold 6,20,400 shares of the business at an average cost of Rs 167.
Kontor Space: On October 10, the business will make its NSE Emerge debut. Shares are being sold for Rs. 93 each. The company’s equity shares will be exchangeable in the trade-for-trade market.
Vishnusurya Projects and Infra: On October 10, the mining business Vishnusurya Projects and Infra will list its equity shares on the NSE Emerge. The share price is Rs. 68 under the offer. The company’s equity shares will be exchangeable in the trade-for-trade market.
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