Morning Update: Sensex gains, closed at 65,808 level: While Nifty at 19,589 level
Indian Market
FII AND DII
| FII Sold | 3,245.86 Cr |
| DII Sold | 247.46Cr |
Indian Market News
- Nifty at 19,550, Sensex down 180 points, Tata Consumer down 2%
- Indices are expected to open lower due to negative global cues; GIFT Nifty is expected to be flat.
- Wall Street falls as economic data raises inflation and interest rate concerns.
- The dollar shines as the US economy outperforms, while the yen falls to a 10-month low.
- Unexpectedly, activity in the US services sector has increased.
- Asia’s markets are trading lower; the Hang Seng, Kospi, and Straits Times are all down 0.5%.
- L&T has received a Rs 24,000 crore order to establish a gas processing plant: Sources
- Samhi Hotels’ initial public offering (IPO) will begin on September 14, with the issue size increased to Rs 1,200 crore.
- On the final day of the IPO, Ratnaveer Precision Engineering received 93.97 times its initial offering price.
Global Market Update
GIFT Nifty
The GIFT Nifty index started slightly negative, losing 38 points, while futures reached 19,625 points after reaching a high of 19,720 points.
US Markets
Stock futures on Wall Street were unchanged as concerns over the Federal Reserve’s interest rate policy and whether policymakers will enact another hike this year arose.
Futures tied to the Dow Jones Industrial Average fell 28 points, while S&P 500 futures and Nasdaq futures declined 0.1% and 0.1% respectively.
Technology stocks were the biggest underperformer, with the Nasdaq Composite closing 1.1% lower and notching a third consecutive losing session.
Higher Treasury yields added pressure to tech stocks and investor worry that the Federal Reserve may use stronger-than-expected economic data to justify higher lending rates to curb inflation.
The Institute for Supply Management’s U.S. services index reached a six-month high in August and a four-month high.European Markets
European stocks closed lower on Wednesday due to concerns over the oil market outlook and inflation following voluntary oil supply cuts by Saudi Arabia and Russia.
The regional Stoxx 600 index ended 0.6% lower, with most sectors in negative territory.
Household goods and banks experienced losses, with household goods down by 2.2% and banks dropping 1.5%.
Saudi Arabia will extend its production cut until the end of December, while Russia will reduce its oil exports by 300,000 barrels per day.
US indexes were lower due to rising crude oil prices, while Asia-Pacific markets were mixed.
Brent crude futures traded at $89.94 a barrel around the market close in Europe, while US West Texas Intermediate crude futures were unchanged from Tuesday’s high of $86.87 a barrel.
Asian Markets
Asia-Pacific markets were mixed on Thursday, following a sell off on Wall Street and ahead of trade data from China and Australia.
Chinese imports and exports for August are forecasted to fall 9.2% and 9% year-on-year, respectively, according to a poll by Reuters.
In Australia, the S&P/ASX 200 slid 0.45% ahead of its August trade data release.
Japan’s Nikkei 225 rose marginally after eight straight days of gains, while the Topix was 0.1% higher.
South Korea’s Kospi saw a 0.12% loss, while the Kosdaq was 0.35 percent higher.
Hong Kong’s Hang Seng index futures were mostly flat.
Overnight, all three major US indexes saw a sell off due to concerns about the Federal Reserve’s interest rate hikes.
Oil Prices
Oil prices reversed course on Wednesday after rising over 1% in the previous session due to a firmer dollar and investors avoiding supply cuts from Saudi Arabia and Russia. Brent crude futures were last down by 39 cents to $89.65 a barrel, while US West Texas Intermediate crude (WTI) futures traded at $86.46 a barrel. The dollar was at 104.69 against a basket of currencies, close to the six-month high of 104.90. A stronger dollar could make oil more expensive for other currency holders. The market lost half of its gains due to monthly review supply cuts.
Dollar Index
The Dollar index closed 0.06 percent lower in futures at 103.32, while the dollar’s value was near Rs 83.09.
Gold Prices
Gold fell to one-week lows on Wednesday due to dollar and Treasury yield strength, US interest rate expectations, and concerns about China’s economy. Spot gold fell 0.27% to $1,920.70 per ounce, while US gold futures slipped 0.33% to $1,946.10.
STOCK IN NEWS
Tata Consultancy Services: The biggest IT services provider in the nation, Tata Consultancy Services, has partnered strategically with JLR’s digital division. TCS will work with JLR to develop a new, strategic IT architecture that is prepared for the future and will assist JLR’s Reimagine initiative. The new alliance, estimated to be worth £800 million over the following five years.
Biocon: Affiliate Beginning on September 1, Biocon Biologics has finished integrating the biosimilar business it bought from Viatris in North America. Biocon Biologics recently purchased the worldwide biosimilars business of its long-term partner Viatris in order to further solidify its leadership in the global biosimilars market and offer comprehensive end-to-end capabilities to patients and consumers.
REC: The Export-Import Bank of India (Exim Bank) and the state-run Maharatna corporation have agreed to a $100 million foreign currency term loan. A 5-year term has been set for the loan. The money from the loan will be refinanced and then used to import capital equipment by borrowers in the infrastructure, electricity, and logistics sectors.
Reliance Industries: Reliance Retail Ventures, a subsidiary, has entered a joint venture agreement for a 51 percent controlling ownership with Alia Bhatt’s children’s and maternity clothing company, Ed-a-Mamma. Furthermore, the subsidiary gave Qatar Holding LLC (QIA) 6,86,35,010 equity shares in exchange for a subscription payment of Rs 8,278 crore.
RHI Magnesita: Rhone Capital’s proposed acquisition of a 29.9% interest in RHI Magnesita NV has been approved by the Competition Commission of India (CCI). Rhone Capital, a US-based private equity firm and subsidiary of Rhone Group, owns and manages Ignite Luxembourg Holdings.
Force Motors: The manufacturer of commercial and utility vehicles reported August output of 3,032 units. 2,601 units were sold domestically and 675 units were exported during the month.
Aavas Financiers: At an average price of Rs 1,654 per share, Smallcap World Fund Inc., a foreign portfolio investor, purchased 4.54 lakh shares, or 0.57% of the home financing firm, through open market transactions. The cost of the share purchase was Rs. 75.11 crore.
Dreamfolks Services: Smallcap World Fund Inc., a foreign portfolio investor, sold 13.06 lakh shares, or 2.46% of the airport services aggregator, through open market transactions for a total of Rs 66.3 crore. The average price was Rs 507.55 crore. As of June 2023, Smallcap World Fund owned 5.08% of the business.
Globus Spirits: Motilal Oswal Mutual Fund A/C, Globus Spirits At an average price of Rs 918.25 per share, Motilal Oswal Midcap 30 Fund sold 2 lakh shares, or 0.69% of its ownership in the distillery firm. As of June 2023, Motilal Oswal Equity Opportunities Fund, Motilal Oswal India Excellence Fund, and Motilal Oswal Midcap Fund each owned 4.34% and 2.19% of the firm, respectively.
NRB Bearings: Acacia Institutional Partners LP sold 7 lakh shares, or 0.72% of the company, at an average price of Rs 270.19 per share, while Acacia Conservation Fund LP sold 12,63,200 shares, or 1.3% of the bearing producer, through open market transactions. As of now, they each own 2.13% and 1.98% of the company’s shares.
JM Financial: For a total investment of Rs 86.07 crore, Quant Mutual Fund purchased 0.99% of the equity, or 94.59 lakh shares, in the financial services provider. Valiant Mauritius Partners Offshore, on the other hand, sold 76.47 lakh shares—or 0.8% of the company—for an average price of Rs 91.02 per share, totaling Rs 69.6 crore. As of June 2023, Valiant Mauritius Partners owned 1.28% of JM.
PG Electroplast: Baring Private Equity India AIF sold 1.95 lakh shares, or 0.75% of the firm, through open market transactions for a total of Rs 34.7 crore at an average price of Rs 1,775.2 per share.
Shriram Finance: Small Cap World Fund Inc. sold 20,26,024 shares of the non-banking finance company at an average price of Rs. 1,880.28 per share, for a total of Rs. 380,96 crore. New World Fund Inc. sold 26,77,024, at an average price of Rs. 1,880.28 per share, for a total of Rs. 503,47 crore. Together, they sold 1.25% of the business. Shriram Finance’s holding in New World Fund Inc. was 1.95% as of June 2023.
Solara Active Pharma Sciences: At an average price of Rs 367.46 per share, Spiracca Ventures LLP added 7.36 lakh shares, representing 2.04% of the pharmaceutical firm. Promoter Karuna Business Solutions LLP, however, sold its 2.34% personal stake in the company in the block purchase.
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