Sensex falls 200 points, Stock Market News Aug-18

Sensex falls, closed at 64,949 level: While Nifty at 19,310 level

 Indian Market 

FII AND DII 

 Indian Market News

1.  Sensex is down 200 points, and The Nifty is at 19,310 ; power stocks are up.
2. The S&P 500 and Dow rise as a result of a boost from Cisco.
3. The GIFT Nifty indicates a flat to positive opening for India’s broader market.
4. Asian markets are mainly down; the Straits Times is down 0.5%.
5. According to CNBC-TV18, GMM Pfaudler Large Trade | 58 lakh shares (13% equity) change hands in block deal.
6. Dollar set for sixth winning week on Fed bets, while the PBOC backs the yuan
7. Confidence Petroleum has opened 13 new vehicle LPG refueling stations.
8. Pyramid Technoplast gets Rs 27.55 crore through an anchor book in advance of their IPO.
9. Oil is expected to end a seven-week winning streak due to China concerns and the Fed’s rate hike expectations.
10. In July-September, headline inflation is expected to be ‘far above’ 6%.
11. Bitcoin fell 7.2% to $26,634 at 21:45 GMT on Thursday, a $2,067 loss.
12. Ingrevia’s board of directors unanimously approves raising funds via commercial paper up to $600 million.
13. CNBC-TV18 reported a large trade in Alkem Laboratories, with 12.2 lakh shares (1% ownership) changing hands for Rs 455.9 crore.
14. South Indian Bank gains 8% after naming a new MD and CEO.
15. According to CNBC-TV18, Axis Bank has raised lending rates by 5 basis points across all tenures.
16. Dolar Kirit Shah, Managing Director of IFL Enterprises, has resigned.
17. NLC India wins 3% through a long-term electricity consumption agreement with the Rajasthan government.
18. IRFC shares are down 8% as the government plans a stake sale.
19. With effect from September 29, Punjab National Bank, Trent will be featured in the Nifty Next 50.
20. Myanmar Port Authority orders Knowledge Marine & Engineering bags
21. Hemisphere Properties adds 3% and joins forces with Jones Lang LaSalle for a land deal in Pune.
22. After receiving a Rs 639 crore order, Indian Hume Pipe gained 6%.
23. Route Mobile has entered into an exclusive relationship with Vodafone Idea.

     INDIAN MARKET MOVERS 

MAJOR UPDATES

• India among only a few with over 6% GDP projection: Pratik Gupta of Kotak

  Kotak Institutional Equities CEO Pratik Gupta believes India is attractive due to its economic growth estimated at over 6% for the next 10-15 years. Despite a surge in retail inflation, Gupta believes the macro-outlook is good. The Nifty is trading at 21x FY24 P/E and 18x FY25 for earnings growth of 15%, with a premium of about 60% versus the MSCI EM index. The market is likely to undergo a consolidation phase in the short term, with a correction in the 3 to 5 percent range. Despite the short-term consolidation phase, Gupta maintains the market’s attractiveness from a long-term perspective.

• NSE rejig: ACC, Nykaa, HDFC AMC to be out of Nifty Next 50 from September 29

  The National Stock Exchange of India (NSE) has announced a rejig in its key indices, excluding ACC, Nykaa, and HDFC AMC from the Nifty Next 50 and Nifty 100 index starting September 29. Indus Towers and Page Industries will also be removed from the Nifty Next 50, replaced by Punjab National Bank, Shriram Finance, Trent, TVS Motor, and Zydus Lifesciences. Tata Motors will also be included in the Nifty 100 index. ACC has lost 22.21 percent of its stock value year-to-date, while Nykaa-operated FSN E-Commerce Ventures lost 14.28 percent. Indus Towers and Page Industries have also slipped.

• Pitti Engineering Q1 net up by 19% to Rs 13.97 crore

  Pitti Engineering Ltd, a manufacturer of traction and special purpose motors and generators, reported a net profit of Rs 13.97 crore, a 19.30% YoY growth from Rs 11.71 crore in the same period last year. The company also recorded its highest-ever EBITDA for a quarter at Rs 42.43 crore, a 19.69% increase. The company’s total revenues for the quarter ended June 30, 2023, were Rs 290.71 crore, down by 6.54 percent from the previous year. The company reported a sales volume of 9,958 MT.

• Pyramid Technoplast raises Rs 27.55 crore via anchor book ahead of IPO

  Pyramid Technoplast, an industrial packaging company, raised Rs 27.55 crore from four anchor investors, including Carnelian Structural Shift Fund, Alchemie Ventures Fund-Scheme I, Pluris Fund, and Resonance Opportunities Fund, ahead of the public issue opening. Carnelian Structural Shift Fund, part of Carnelian Asset Advisors, bought the maximum shares, worth Rs 12.55 crore. The company has allocated 16.59 lakh equity shares to the investors at a price of Rs 166 per share.

Global Market Update

• GIFT Nifty

  The GIFT Nifty experienced a 65-point loss after closing 99 points lower on August 17, with futures standing at 19,317 points, indicating a marginally negative start for the broader index.

• US Markets

  The Dow Jones Industrial Average and S&P 500 futures saw a slight increase, while Applied Materials shares saw a 2% increase in extended trading.

  Ross Stores also saw a 5% increase after topping second-quarter forecasts.

  The Dow closed below the 50-day moving average for the first time since June 1, indicating a bearish signal for investors.

  The 30-stock index tumbled 290.91 points, while the S&P 500 declined 0.77 percent and the Nasdaq Composite fell 1.17 percent.

  The 10-year US Treasury yield reached its highest level since October 2022, following the Federal Reserve’s July meeting minutes suggesting further interest rate hikes due to inflation concerns.

  Private Advisor Group’s Guy Adami believes that rates are not going higher for the right reasons and that if yields continue to move, it could have ramifications for global equity markets.

• European Markets

  European markets retreated on Thursday after the US Federal Reserve’s July meeting minutes indicated further interest rate hikes were not off the table.

  The pan-European Stoxx 600 provisionally closed 0.9% lower, with industrials falling 2.8% and tech stocks down 1.8%.

  Basic resources and oil and gas were the only sectors in the green, up 0.8% and 0.3% respectively.

  The European blue-chip index closed 0.1% as investors assessed UK inflation figures and euro zone second-quarter GDP data.

  Swedish gaming group Embracer reversed some losses, climbing 12.5% to top the index.

  The Federal Open Market Committee’s July meeting minutes expressed concern about inflation persistence and suggested more interest rate hikes unless conditions improve.

•  Asian Markets

  Asia-Pacific markets experienced a decline on Friday due to Japan’s July inflation data and the impact on China’s real estate sector.

  Japan’s core inflation rate fell to 3.1%, while headline inflation remained at 3.3%.

  Chinese real estate giant Evergrande filed for bankruptcy protection in a US bankruptcy court, seeking protection under Chapter 15 of the US bankruptcy code.

  Hong Kong’s Hang Seng index closed at 18,147, while Japan’s Nikkei 225 and Topix fell by 0.58 percent.

  The S&P/ASX 200 in Australia fell 0.2%, while South Korea’s Kospi was 0.67 percent lower and the Kosdaq lost 0.59 percent.

• Oil Prices

  Oil prices rose over 1% on Thursday due to China’s central bank’s efforts to curb pessimism over the country’s property market and economy. Prices fell in the previous session due to concerns over the impact of a deepening property crisis on fuel demand and the potential for further increases in U.S. interest rates. Brent crude futures rose by 1.38 percent to $84.60 a barrel, while US West Texas Intermediate crude rose by 1.74 percent to $80.76 a barrel. Prices are rebounding on expectations that Chinese officials will provide meaningful stimulus and the oil market will remain tight. Analysts suggest that oil traders like China’s policy to remain “precise and forceful” to support the country’s economic recovery. US interest rates remain in focus, with minutes of the Federal Reserve’s July meeting showing no indications of pausing rate hikes to prioritize the battle against inflation.

• Dollar Index

  One dollar was trading at Rs 83.10 in futures trading, while the Dollar index was down 0.08 percent at 103.35.

• Gold Prices

  Gold spot was up 0.2% at $1,895.60 per ounce, after reaching its lowest level since March 15 at $1,888.30. U.S. gold futures were trading slightly lower at $1,925.80. The dollar index slipped 0.3% against its rivals, making gold less expensive for other currency holders. Gold has been down due to rising interest rates and bond yields, but bargain hunting has occurred at these levels. The market suggests that the Federal Reserve may need to be more aggressive in raising rates in response to the FOMC minutes.

STOCK IN NEWS

• Concord Biotech: On August 18, the biotech pharmaceutical business will float its shares on the BSE and NSE. The final offering price per share has been set at Rs. 741.

• LTIMindtree: Aflac Incorporated, a US-based provider of supplementary insurance, has chosen LTIMindtree as a partner in its digital transformation of its application modernization and cloud transformation. In conjunction with Amazon Web Services, the alliance will redesign Aflac’s legacy applications with a cloud-first mindset, assuring performance effectiveness, cost optimisation, and operational excellence with increased security.

• Punjab National Bank: With effect from September 29, Punjab National Bank, TVS Motor Company, Shriram Finance, Trent, and Zydus Lifesciences will be included in the Nifty Next 50. However, the index will not include ACC, FSN E-Commerce Ventures, HDFC AMC, Indus Towers, or Page Industries. Due to a semi-annual review of major market indexes such Nifty Next 50, Nifty 500, Nifty 100, Nifty Midcap150, Nifty Smallcap250, and Nifty Midcap 50, the National Stock Exchange has announced replacements.

• NTPC: To separate its coal mining operations, the state-owned power generation corporation has signed a business transfer agreement (BTA) with its subsidiary, NTPC Mining. On July 29, NTPC gained board clearance to sell its six coal mines and coal mining operation to NTPC Mining via BTA.

• Jain Irrigation Systems: The organization’s request for short- and medium-term fundraising to fulfil a number of responsibilities has been approved by the board. It would use promoter allotment to collect money totaling Rs. 76.12 crore. Alpha Alternatives Structured Credit Opportunities Fund, an SPV of Alpha Alternatives Holdings and its partners, would also purchase share warrants worth Rs. 123.43 crore in order to fulfil a number of commitments. After 18 months from the date of allocation, both warrants will be converted into equity shares.

• IFGL Refractories: Foreign promoter Krosaki Harima Corporation, Japan has sold all of its personal investment in IFGL Refractories, exiting the business. In an off-market transaction, Krosaki sold 55.90 lakh equity shares for Rs 111.8 crore, or 15.51% of the total paid-up equity. The purchaser was Indian entrepreneur Bajoria Financial Services.

• Adani Enterprises: The manufacturing facility in Mundra in Gujarat for solar PV cells and solar PV modules has acquired the commercial operational date (COD) certificate from SolarEnergy Corporation of India (SECI). Mundra Solar Energy is a step-down subsidiary of the firm. The facility can produce 2.0 GW annually. Through its fully owned subsidiary Adani Tradecom Limited, the business owns 74% of the shares in Mundra Solar Energy.

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