Sensex falls 250 points, Stock Market News Aug-31

Sensex falls, closed at  64,831 level: While Nifty at 19,284 level

 Indian Market 

FII AND DII 

 Indian Market News

1. Sensex down 250 points, Nifty below 19,300; FMCG, oil and gas, and PSU banks pull.
2. Wall Street closes higher as economic data supports rate-cut expectations.
3. China’s factory activity falls for the fifth month in a row, putting pressure on policymakers.
4. GDP growth in the United States was lowered down to 2.1% in the second quarter.
5. Oil prices are rising due to tighter supply, and China’s PMI is being closely monitored.
6. The GIFT Nifty indicates a positive start for India’s broader index.
7. Asian markets are mainly higher; the Nikkei and Hang Seng are both up 0.5%.
8. India’s GDP growth is expected to have reached a four-quarter high of 7.7% in April-June.
9. Jio Financial Services will be removed off the Sensex on September 1st.
10. Mumbai sets a decadal record According to Knight Frank, approximately 10,550 properties were registered in August, and stamp duty receipts jumped 23% year on year to Rs790 crore.
11. Fitch rates State Bank of India ‘BBB-‘ with a stable outlook.
12. NTPC to invest Rs 15,530 crore in Chhattisgarh plant capacity expansion; shares trades flat
13. Zen Technologies has received an order from the Ministry of Defence.
14. Max Life Insurance and Kotak Mahindra Life each acquire a 3.2% stake in Spandana Sphoorty Financial Services. Valiant sells 4.9% share
15. Prudent Corporate Advisory Services Large Trade | CNBC-TV18 reported that 37 lakh shares (9 percent equity) worth Rs 420 crore changed hands at Rs 1,129.5 per share.
16. Sula Vineyards Large Trade | CNBC-TV18 reported that 1.1 crore shares (13.1 percent equity) worth Rs 540 crore changed hands at Rs 490 per share.
17. Large Trade in Medplus Health Services | 1.5 crore shares (1.85 percent equity) worth Rs 1,319 crore change hands at Rs 860 per share, according to CNBC-TV18.
18. Verlinvest Asia intends to sell up to 12.56% of its stake in Sula Vineyards in a block deal.
19. After purchasing a 100% share in Envotel Hotels Himachal, Kamat Hotels gains 2.7%.
20. BHEL receives an order from NTPC to establish a supercritical thermal power facility in Chhattisgarh.
21. Adani shares are under pressure after an OCCRP report revealed’stock manipulation.’
22. Aeroflex Industries lists for Rs 197, a premium of more than 82% above the IPO price.
23. Quant Mutual Fund sells a half-share of Zee Entertainment Enterprises.
24. Rail Vikas Nigam is the lowest bidder for Maharashtra Metro Rail Corporation projects.
25. The OCCRP claims Millions of dollars were invested in Adani stock through Mauritius-based opaque funds.

     INDIAN MARKET MOVERS 

MAJOR UPDATES

• Gift Nifty sets record single-day turnover of $12.98 billion

  Gift Nifty, a benchmark for the Indian equity market, reached an all-time-high single-day trading activity of 3,36,535 contracts with a turnover of $12.98 billion on August 29. Open interest stood at 3,08,254 contracts, representing a substantial $11.93 billion valuation. Since the start of full-scale operation in July, the trading turnover on the NSE IX has shown exponential growth, with a cumulative volume exceeding 2.94 million contracts and an aggregate turnover of $113.73 billion.

• BSE moves Bankex expiry to Monday from Friday, effective October 16

  The Bombay Stock Exchange has announced that the expiry day of S&P BSE Bankex derivatives contracts will be revised to Monday, effective October 16, replacing the existing Friday expiry date. New contracts will be generated on October 13, 2023, and available for trading from October 16, 2023. The expiry day of Sensex derivative contracts remains unchanged.

• Sula Vineyards: Verlinvest Asia looks to sell up to 12.56% via block deal

  Verlinvest Asia Pte is set to sell up to 12.56 percent of Sula Vineyards for Rs 539.2 crore via a block deal, with a base price of around Rs 473 per share. The investment company, which focuses on digital, e-commerce, food, beverages, and health and care sectors, will sell the shares at a price range of Rs 473-508.7 per share, which is a 0 to 7% discount from the stock’s closing price of Rs 508.70 on August 30.

• No surprise if markets take a breather in next few months: Motilal Oswal Private Wealth

  Ashish Shanker, managing director and CEO of Motilal Oswal Private Wealth Management, predicts a breather in the stock markets in the coming months. He recommends flexi-cap funds as the most suitable investment vehicle. The markets have surged in the near term due to liquidity and maintaining pace with fundamentals, according to Shanker in an interview with Moneycontrol.

• Infra space may replicate 2003-07 boom, last for 4-6 years: Vijay Kedia

  The infrastructure sector is experiencing a boom phase for the past six to seven months, according to Vijay Kedia, investor and director of Atul Auto. Kedia believes the sector will follow the same trends as 2003 to 2007, with increased government spending on infrastructure and a high capacity of the private sector. The current cycle of capital expenditure (capex) is more diverse, focusing on improving and modernizing emerging sectors, with a strong emphasis on manufacturing, unlike the conventional cycle between 2003 and 2007.

Global Market Update

GIFT Nifty

The GIFT Nifty index started slightly positive, gaining 20 points, while futures reached 19,480 points after reaching a high of 19,487 points.

US Markets

S&P 500 futures were flat on Wednesday night after a fourth-straight positive day, and Salesforce’s earnings beat helped buoy Dow futures.

The Dow Jones Industrial Average futures rose 44 points, or 0.1%, while the S&P 500 ended the day 0.38% higher.

The Dow Jones Industrial Average added 37.57 points, or 0.11%, while the Nasdaq Composite gained 0.54%.

These gains helped the major indexes trim their monthly losses, with the Dow and S&P 500 each lower by more than 1% in August, while the Nasdaq is off by over 2%.

Investors digested weaker-than-expected payrolls data and annual gross domestic product growth forecast, suggesting the Federal Reserve could soon hike rates, boosting equities.

European Markets

European stock markets closed slightly lower on Wednesday due to economic data from Germany and Spain. The Stoxx 600 index ended down 0.2%, while utilities and media stocks rose 0.7%. Spain reported flash inflation up 2.6% in August, while Germany experienced a 13.2% drop in imports for the year to July, the sharpest drop since January 1987. Markets closed higher on Tuesday, anticipating a fresh round of economic data this week.

He stated that the Fed is prepared to raise rates further if appropriate and intends to hold policy at a restrictive level until it is confident that inflation is moving sustainably down toward its objective.

  Asian Markets

The world’s second-largest economy is expected to experience a fifth consecutive month of contraction in the manufacturing sector, according to a Reuters poll.

Hong Kong’s Hang Seng index stood at 18,544, indicating a stronger open compared to the HSI’s close of 18,482.86.

Japan’s Nikkei 225 advanced 0.33% and the Topix was up 0.31%, as retail sales in Japan increased 6.8% year on year, compared to the expected 5.4% rise.

South Korea’s Kospi rose 0.23% and the Kosdaq was 0.36% higher, while the Australian S&P/ASX 200 was 0.11% higher.

In the U.S., all three major indexes gained, with the S&P 500 notching a four-day winning streak.

Oil Prices

Oil prices rose on Wednesday due to tighter-than-expected crude supplies in the US and a hurricane in the Gulf of Mexico. Brent crude futures for October rose 21 cents to $85.70 a barrel, while U.S. West Texas Intermediate crude futures rose 30 cents to $81.46. The US currency weakened after soft job data reduced the likelihood of further interest rate increases. U.S. crude inventories fell by 10.6 million barrels in the last week to 422.9 million barrels, with product supplied of finished motor gasoline at about 9.1 million barrels per day.

Dollar Index

The Dollar index closed 0.34 percent lower in futures at 103.18, while the dollar’s value was near Rs 82.65.

Gold Prices

Gold reached its highest in nearly a month on Wednesday due to weak U.S. economic readings, indicating that the Federal Reserve may need to pause its interest rate hikes. Spot gold rose 0.5% to $1,945.81 per ounce, just below its highest since August 2. U.S. gold futures also rose 0.5% to $1,974.00. The weaker-than-expected ADP report and GDP revision continue a trend of softer economic indicators, likely keeping the Fed on hold in September. Benchmark 10-year yields dropped to their lowest since August 11, and the dollar slipped to a two-week low.Gold Prices

Gold reached a three-week peak on Tuesday due to weaker labor market readings and doubts over the Federal Reserve’s chances of another rate hike. Spot gold was up 0.9% at $1,935.95 per ounce, while US gold futures rose 0.9% to $1,964.20. The dollar fell against rivals due to falling US job openings in July, while the 10-year Treasury yields also fell. The Job Openings and Labor Turnover Survey and consumer confidence reports suggest the Fed may not raise rates as much as anticipated.

                                                                                 Stock in News

• Aeroflex Industries: On August 31, Aeroflex Industries’ metallic flexible flow solution products from Mumbai will make their market debut on the BSE and NSE. The ultimate share price for the offering is Rs. 108.

• Natco Pharma: The pharmaceutical business invested $2 million strategically in Delaware-based ISCA Inc, which had a $9.3 million revenue in the most recent fiscal year that ended in December 2022. Pest biocontrol is the purpose of the strategic investment in a 5.79 percent interest in ISCA. ISCA operates a pest control for agricultural company.

• Zed Entertainment Enterprises: At an average price of Rs 266.61 per share, Quant Mutual Fund sold 48.15 lakh equity shares, or a 5% interest in the media and entertainment firm, through open market transactions. The amount of the share sale was Rs 128.38 crore.

   

• Zomato: Through an open market transaction, SVF Growth (Singapore) Pte Ltd, a subsidiary of the Japanese firm SoftBank, sold 10 crore equity shares, or 1.16 percent of the company’s paid-up equity, for an average price of Rs 94.7 per share. The stake transaction cost Rs 947 crore, and as of June 2023, SVF owned 3.35 percent of the corporation, or 28.71 crore shares.

   

• Spandana Sphoorty Financial: offers the High Growth Fund, Max Life Insurance Company A/C PAR, and Classic Opportunities Fund from Kotak Mahindra Life Insurance Company Limited. ULIF 033 16 12 09 Through open market transactions, CLAOPPF acquired 22.77 lakh shares, or 3.2 percent of the microlender, at an average price of Rs 765 per share. Strategic investors, however, sold 16.07 lakh shares in Spandana at an average price of Rs. 765 per share, 5.52 lakh shares from Valiant India Opportunities at an average price of Rs. 765.02, 4.6 lakh shares from Valiant Mauritius Partners at an average price of Rs. 765.01 per share, and 8.8 lakh shares from Valiant Mauritius Partners Offshore at an averageprice per share of Rs 765.38. In comparison to their overall shareholding of 94.79 lakh shares or 13.35 percent stake as of June 2023, they collectively sold 4.9 percent stake, or 22.77 lakh shares.

   

• Sungarner Energies: The provider of electricity solutions will float its stock on the National Stock Exchange’s Emerge SME platform. The share price for the issuance is Rs. 83.

• Rail Vikas Nigam: The Maharashtra Metro Rail Corporation selected the state-owned railway business as the lowest bidder (L1) for projects totaling Rs 256.2 crore. The aforementioned projects will be completed in 30 months.

• Ajanta Pharma: The US Food and Drug Administration (US FDA) has given final permission to Ajanta Pharma, a specialty pharmaceutical formulation business, to commercialise Topiramate extended-release capsules in strengths of 25 mg, 50 mg, 100 mg, and 200 mg.

• Bharat Heavy Electricals (BHEL): In Chhattisgarh, near Lara, BHEL has been given the contract to build the Stage-II, 2×800 MW supercritical thermal power plant. Within 48 months after the zero date, the first unit of 800 MW will be completed, and unit 2 of 800 MW will follow in 52 months.

• Sula Vineyard: According to sources cited by CNBC-Awaaz, Verlinvest Asia Pte Ltd is seeking to sell up to a 12.56 percent share in the nation’s largest winery through a block sale. The block size might be Rs 539.2 crore, and the share price could vary from Rs 473-508.7. As of June 2023, Verlinvest Asia Pte owned a 20.91 percent ownership in Sula Vineyard.

   

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