Sensex falls 195 points, Stock Market News Aug-24

Sensex falls, closed at 65,237 level: While Nifty at 19,440 level

 Indian Market 

FII AND DII 

 Indian Market News

1. 1. Sensex down 190 points, Nifty falls below 19,400; auto, pharma, and metals drag.
   2. The dollar rises ahead of Jackson Hole, and Turkey’s interest rates are in the spotlight.
   3. Indexes finish significantly higher; Nvidia, the producer of AI chips, surges more after the bell. 
   4. The Hang Seng, Taiwan, and other Asian markets are trading higher. 1% weighted each 
   5. The GIFT Nifty indicates a flat opening for India’s broader market. 
   6. Gold is nearing two-week highs as the market awaits rate indications from the Jackson Hole meeting. 
   7. Oil prices decrease as a result of negative economic data and interest rate concerns. 
   8. TVS Motors invests Rs 250 crore in their new TVS X. 
   9. On the last day of the IPO, Aeroflex Industries was subscribed to 81.36 times.
   10. The share price of Procter & Gamble Health has dropped 5% due to poor fourth-quarter performance.
   11. Serum Institute of India, founded by Cyrus Poonawalla, sells 0.8% of its investment in Panacea Biotec.
   12. Dollar falls ahead of Jackson Hole due to soft data.
   13. The US FDA has issued Gland Pharma with an Establishment Inspection Report for its Dundigal facility.
   14. Spicejet falls sharply from the day’s high when the Delhi High Court denies its appeal for a waiver of interest burden.
   15. In a block trade, 1.02 lakh shares (1.7% equity) worth Rs 235.6 crore change hands, according to CNBC-TV18.
   16. Integrum Energy Infrastructure awards Suzlon a new 31.5 MW order.
   17. Snowman Logistics increases its investment by 3.4% as promoter Gateway Distriparks increases its interest.
   18. Aptus’s value dropped by more than 1% following a massive block trade.
   19. Vishnu Prakash R Punglia raises Rs 91.77 crore from anchor investors ahead of his first public offering (IPO). 
   20. Hulst BV, held by Baring Private Equity Asia, will sell its whole 26.63% holding in Coforge: Sources  
   21. QIA will invest $1 billion in Reliance Retail for a 0.99% stake; the company is valued at $100 billion. 

     INDIAN MARKET MOVERS 

MAJOR UPDATES

• Chandrayaan-3 mission: Indian space tech startups hail ISRO for historic feat

  
  The Chandrayaan-3 project has been widely praised by Indian space technology entrepreneurs for its significant achievement, with the Indian Space Research Organisation (ISRO) being commended for its role in this historic endeavor.

  The Indian Space Research Organization (ISRO) is being praised by Indian space startups and their representative organizations for the significant accomplishment of successfully landing the Chandrayaan-3 spacecraft on the Moon’s South Pole. This achievement establishes India as the first country in the world to achieve such a feat.
  The Indian Space Association, comprising approximately 30 Indian space technology start-ups, alongside prominent entities like Bharti Airtel, L&T, and OneWeb, expressed that this accomplishment will contribute to the establishment of a lunar economy and the promotion of wider celestial exploration.
  Lt Gen AK Bhatt (retd.), Director General of the Indian Space Association, expressed admiration for the accomplished landing of the Chandrayaan-3 by ISRO, highlighting India’s resilient commitment to space exploration and its notable capabilities in the realm of space science.

• Qatar Investment Authority (QIA) has announced its intention to allocate a substantial investment of $1 billion towards Reliance Retail, thereby acquiring a 0.99% ownership position. This investment has been made based on a valuation of Reliance Retail at an impressive $100 billion.

According to a press statement released by Reliance Retail Ventures Ltd (RRVL), the retail subsidiary of Reliance Industries Ltd (RIL), the Qatar Investment Authority (QIA) has announced its intention to invest $1 billion or Rs 8,278 crore in RRVL. This investment will result in the acquisition of a stake of about one percent by QIA.

According to RRVL, the investment in the company results in a pre-money equity value of $100 billion or Rs 8.27 lakh crore. Additionally, it is mentioned that QIA’s investment will correspond to a minority ownership stake of 0.99 percent on a fully-diluted basis.

According to Isha Ambani, the director of RRVL, the investment signifies a significant endorsement of a favorable perspective on the Indian economy and Reliance’s retail business model, strategy, and execution capabilities. According to the speaker, the company stands to gain advantages from QIA’s extensive global experience and proven track record in generating value.

According to the statement, Morgan Stanley served as the financial advisor to RRVL, while Cyril Amarchand Mangaldas and Davis Polk & Wardwell worked as legal counsels for the company. AZB and Cleary Gottlieb served as legal advisors to the Qatar Investment Authority (QIA).

• Powell Is Using Jackson Hole as Final Push in Inflation Fight

Powell is strategically utilizing the Jackson Hole symposium as a concluding effort in his endeavor to combat inflation.

The upcoming speech by Jerome Powell, the Chair of the Federal Reserve, is anticipated to outline the remaining measures in the central bank’s endeavor to control inflation in the United States. Additionally, Powell is expected to reaffirm the Federal Reserve’s dedication to successfully accomplishing this objective at his address in Jackson Hole, Wyoming on Friday.
Although lacking the same level of excitement as previous keynotes, Powell’s address at the Federal Reserve’s annual gathering of international central bankers occurs at a critical juncture for policymakers. They are currently navigating the most challenging phase of the battle against inflation, wherein they must determine the appropriate degree of tightening required, despite limited certainty regarding the impact of their previous measures on the economy.
Until a recent point in time, the path ahead had been evident: Continuously increase interest rates in order to effectively manage and mitigate the rapid inflation, which is currently at its highest level in the past forty years. Currently, with the ongoing moderation of inflation, there is a growing divergence of opinions among policymakers over the extent of remaining tasks. Powell may use his platform this week to explain how the Fed will decide whether to raise rates and when to cut them.
It is anticipated that Powell would utilize his position of influence throughout the current week to explicate the methodology employed by the Federal Reserve in evaluating the necessity of raising interest rates, as well as establishing the criteria for initiating a reduction in rates.

• Goldman Sachs sees India IT growth pick up in medium-term; initiates coverage
  Goldman Sachs anticipates a surge in India’s information technology sector in the foreseeable future and has commenced covering on this development.
  Goldman Sachs anticipates a surge in revenue growth for Indian IT sector enterprises, mostly attributed to the accumulation of unmet demand for IT services and the consequential effects of integrating generative artificial intelligence (AI) technology. According to the Wall Street bank’s projections, there is an anticipated revenue growth of 9% to 10% starting from 2025. The bank suggests that the market may not fully recognize the potential benefits of the industry, despite the expectation of limited revenue growth in the short term.
  According to a note dated Tuesday by analysts at Goldman Sachs, coordinated by Manish Adukia, Indian IT services companies have experienced a twofold increase in their market share over the past decade.
  Based on the inherent benefits derived from a substantial, proficient, and economically efficient labor force, along with a wide-ranging distribution across various geographic locations, it is anticipated that Indian IT enterprises will persist in augmenting their market presence.
• The market capitalization of Adani Group shares has experienced a decline of over Rs 5 lakh crore.

On August 23, the market capitalization of Adani Group shares experienced a significant decline of approximately Rs 5 lakh crore, resulting in all scrips concluding the trading day in negative territory. Despite the decline of Adani firms, the Nifty index concluded on a positive note, exhibiting a 0.25 percent increase to reach 19,444 points. On August 22, the market capitalisation of Adani group shares amounted to Rs 114.78 lakh crore, which subsequently decreased to Rs 109.33 lakh crore on August 23.
Adani Enterprises experienced a decline of 5.9 percent, resulting in a value of Rs 2,539, whereas Adani Ports witnessed a decrease of roughly 3 percent, leading to a value of Rs 830.05. The stock price of Adani Power had a decline of 6.65 percent, reaching a value of Rs 324.30. Similarly, the stock price of Adani Energy also decreased, reaching a value of Rs 905.45. Shares of ACC and Adani Wilmar declined the least, 0.42 percent and 0.92 percent.
The shares of ACC and Adani Wilmar experienced the smallest decline, with a decrease of 0.42 percent and 0.92 percent, respectively.

• Price stability essential for maintaining growth, says RBI Governor Shaktikanta Das

According to Shaktikanta Das, the Governor of the Reserve Bank of India (RBI), the preservation of price stability is crucial for sustaining the economic growth of the nation.
The foundation of sustainable growth is in maintaining price stability. The absence of price stability undermines the sustainability of short-term growth endeavors. According to Das, the preservation of price stability is of utmost importance in order to uphold the continuity of economic expansion and support the rise of the nation’s gross domestic product (GDP).
Das delivered a speech at the 29th Lalit Doshi Memorial Lecture titled ‘Building Blocks for a Sustainable Future: Some Reflection’. The individual additionally stated that the macroeconomic and monetary policy of the Reserve Bank has prioritized the maintenance of price stability, the facilitation of sufficient credit flow to sustain growth, and the preservation of financial stability.

Global Market Update

GIFT Nifty

The GIFT Nifty saw a slight positive start, with a 5 point gain after closing 48 points higher on August 23, while futures of the broader index stood at 19,509 points.

• US Markets

  Stock futures on Wednesday were higher, with investors focusing on Nvidia’s second-quarter results to gauge the impact of AI hype.

  The company earned $2.70 per share after adjustments on $13.51 billion in revenue, topped the average analyst estimate from Refinitiv of $2.09 per share in profits and $11.22 billion in revenue.

  Nvidia’s stellar first-quarter report in May had stoked investor interest in artificial intelligence, which became a key market driver in the first half of the year.

  Interest in the chip stock catapulted its value to more than $1 trillion.

• European Markets

  European stock markets closed higher on Wednesday, with the Stoxx 600 index up 0.4%, with most sectors and major bourses in positive territory.

  Utilities stocks led the gains, up 1.1%, while oil and gas stocks fell 1.1%.

  Autos stocks ended the session down 0.5% after Germany’s grim PMI figures showed a deepening downturn in manufacturing output and plunge in business activity.

  The euro was lower against the U.S. dollar, and bonds rallied as PMIs came in well below expectations for the euro zone.

  Investors will be scrutinizing Nvidia’s results against high Wall Street expectations, with analysts expecting volatility in the stock.

•   Asian Markets

  Asia-Pacific markets rose ahead of central bank rate decisions from South Korea and Indonesia, with both central banks expected to maintain their benchmark policy rates at 3.5% and 5.75%, respectively.

  South Korea’s producer price index climbed 0.2% YoY, marking the 13th consecutive month of slowing growth.

  Investors will also assess Nvidia’s earnings, which beat estimates for the fiscal second quarter and issued optimistic guidance for the current period.

  Japan’s Nikkei 225 opened 0.44% higher, while the Topix climbed 0.13%.

  Futures for Hong Kong’s Hang Seng index stood at 17,973, reflecting a stronger open compared to the HSI’s close of 17,845.

• Oil Prices

  Oil prices fell on Wednesday due to a build in US gasoline stocks and weak global manufacturing data. Brent crude fell 56 cents to $83.48 a barrel, while West Texas Intermediate crude fell 45 cents to $79.20. Gasoline stocks climbed 1.5 million barrels last week, compared to analysts’ estimates of a 888,000-barrel drop. US crude inventories fell by 6.1 million barrels in the week to Aug. 18, aided by strong refining activity and high export levels. Analysts had expected a 2.8-million-barrel drop.

• Dollar Index

   

  The Dollar index closed 0.21 percent lower in futures at 103.34, while the dollar’s value was near Rs 82.54.

• Gold Prices

  Gold prices reached a two-week high on Wednesday, driven by a pullback in U.S. bond yields and the dollar. Investors awaited the Jackson Hole symposium for interest rate guidance. Spot gold rose 1% to $1,916.10 per ounce, while U.S. gold futures rose 1% to $1,945.50.

• Stock in News

• Reliance Industries: Qatar Investment Authority will invest $1 billion, or Rs 8,278 crore, in Reliance Retail Ventures (RRVL), a subsidiary of Reliance Industries, for a 0.99 percent ownership. The investment has a pre-money equity value of $100 billion, or Rs 8.27 lakh crore, for the corporation.

• Coforge: According to insiders, promoter Hulst BV is trying to sell its full 26.63 percent ownership in the mid-sized IT firm in a block sale. The floor price has been set at Rs 4,550 per share, a 7.4 percent drop to the closing price on Wednesday of Rs 4,913. Hulst BV, incorporated in the Netherlands, is owned and controlled by funds linked with BPEA (Baring Private Equity Asia). Hulst BV will sell 1.62 crore shares, taking the deal size to around Rs 7,400 crore, sources said.

• NHPC: The state-owned organization has inked an MoU with Andhra Pradesh Power Generation Corporation (APGENCO) for the implementation of pumped storage hydropower projects and renewable energy projects in Andhra Pradesh.

• Vascon Engineers: The construction firm has got a Letter of Acceptance for Rs 605.65 crore from Bihar Medical Services & Infrastructure Corporation for the construction of Lohia Medical College & Hospital, Supaul, which includes a hospital and residential complex. The EPC work order must be completed within 36 months of receiving the Letter of Acceptance.

• Procter & Gamble Health: The FMCG company reported a net profit of Rs 29.8 crore for the fiscal quarter ending June FY23 (Q4FY23), a decrease of 28 percent from the previous year due to higher material costs and one-time staff costs. During the quarter, revenue from operations increased by 1.8 percent year on year to Rs 301.2 crore. For the fiscal year ending June 2023, the firm declared a final dividend of Rs 50 per share.

• Atul Auto: The European financial services group Societe Generale has purchased 1.41 lakh equity shares, or 0.54% of the company, through open market transactions at an average price of Rs 409.54 per share.

   

• Panacea Biotec: The Serum Institute of India, founded by Cyrus Poonawalla, has sold 5 lakh shares in the biotechnology company through open market transactions, amounting to 0.8% of total paid-up stock. The shares were sold for an average of Rs 146.31 per share. As of June 2023, Serum Institute owned 6.97% of the company, or 42.7 lakh shares.

   

• Snowman Logistics: Promoter Gateway Distriparks purchased 11 lakh shares, or 0.66% of the company, at an average price of Rs 53.36 per share. As of June 2023, Gateway owned 41.75% of the company.

   

• Ceinsys Tech: Zodius Technology Fund II sold 3.64 lakh shares, or 2.35% of the company, through open market transactions at an average price of Rs 207.65 per share. As of June 2023, Zodius Technology Fund owned 6.66% of the firm, or 10.28 lakh shares. In addition, DP Jain & Co Infrastructure sold 1.88 lakh shares in the company at an average price of Rs 209.76 per share, compared to a 2.54% shareholding (3.91 lakh shares) as of June 2023.

   

• GEE: Meru Investment Fund PCC- Cell 1 purchased 1.5 lakh shares, or 0.58% of the firm, at an average price of Rs 82.74 per share.

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