Sensex falls 430 points, Stock Market News Aug-17

Sensex falls, closed at 65,100 level: While Nifty at 19,345 level

 Indian Market 

FII AND DII 

 Indian Market News

1. Sensex is down 430 points, while The Nifty is at 19,350 points; PSU banks outperform.
2. Oil prices are fluctuating due to concerns about the Chinese economy and the US interest rate outlook.
3. Wall Street closes lower after the Fed minutes cast doubt on the outlook for interest rates.
4. Gold is at a five-month low as the US dollar and yields increase.
5. The dollar shines on the strength of the US economy, while the Australian dollar falls following job data.
6.  Asian markets continue to fall; the Hang Seng is down nearly 2%, while the Nikkei is down 1%.
7. The GIFT Nifty indicates a flat opening for India’s broader market.
8. Ramkrishna Forgings secures a Rs 145 crore deal.
9.  Minutes show that Fed officials were divided in July over the necessity for additional rate hikes.
10. Globus Spirits is offering 25 lakh shares (8.5% equity) in a major block deal expected today. According to sources cited by CNBC-TV18, the indicative price is anticipated to be Rs 975-985 per share.
11. The FDA has suspended Cipla’s licence for its Patalganga unit
12. Hero MotoCorp improves in trade, trading roughly 1% higher than its lows; the company will unveil the New Karizma XMR on August 29.
13.  skipper raises Rs 200 crore through a rights offering.
14. July inflation peaked at 7.44 percent and is projected to fall, according to the Finance Secretary: Exclusive
15. Essar Shipping’s board of directors approves the sale of shares in three subsidiaries.
16. The 10-year bond yield has reached 7.25%, as 7.44% inflation prevents policymakers from cutting rates.
17. Dilip Buildcon gains more than 2% after receiving a Rs 699 crore order
18. Motilal Oswal’s alternative arm will raise Rs 2,000 crore for a real estate fund.
19. SJS Enterprises increases its stake in Suryaurja Two to 16.33%.

Indian Market Today  

     INDIAN MARKET MOVERS 

MAJOR UPDATES

• Strong Listing | SBFC Finance closes with 62% premium on debut

  On its debut on August 16, non-banking finance company SBFC Finance attracted significant investor interest with a 62% gain on the first day. The stock opened higher at Rs 82, up 44% over the issue price of Rs 57 on the NSE. It maintained its opening price throughout the session and reached an intraday high of Rs 95.45, up 67.5%. At the close, the stock was 61.75% higher on the NSE and 61.77% higher on the BSE. SBFC Finance traded with a volume of 20.44 crore equity shares on the NSE and 1.09 crore shares on the BSE.

• Antfin transfers 10.3% stake to Paytm chief Vijay Shekhar Sharma

  Chinese e-commerce giant Antfin has transferred its 10.3% stake in One97 Communications to its founder and CEO, Vijay Shekhar Sharma. The deal aims to make One97 Communications, which operates under the Paytm brand name, a majorly Indian-owned company. Antfin will continue to hold the economic rights of the stake transferred to Sharma. The transaction was completed on August 14, bringing Antfin’s total stake to 13.49% from 23.79% earlier. The deal makes Sharma the biggest shareholder in the company with a 19.55% stake. The stake divested by Antfin has been transferred to Sharma and his family-owned overseas entity Resilient Asset Management BV. Resilient Asset will issue debt instrument OCDs (optionally convertible debentures) to Antfin. Sharma held a small 9% stake in Paytm before the deal, and there will be no change in management or control of the company.

• Govt planning to sell IRFC shares via OFS: Official

  The Indian government plans to sell a portion of its stake in the state-owned Indian Railway Finance Corp (IRFC) through an offer for sale (OFS) in the current fiscal. The government currently holds an 86.36% stake in the financing arm of the Indian Railways. An inter-ministerial group (IMG) has started consultations to decide on the quantum of stake dilution. To comply with Sebi’s minimum public shareholding (MPS) norm, the government must dilute its 11.36% stake in IRFC. The government is assessing investor appetite before deciding on the quantum of dilution. Shares of IRFC were trading at Rs 50.97 a share, up 0.14 per cent over the previous close on BSE. At the current market price, a sell of 11.36 per cent would fetch the government around Rs 7,600 crore. IRFC reported a net profit of Rs 1,557 crore in the quarter ended June, down 6% from 1,660 crore in the corresponding quarter last fiscal.

• GQG picks up 8.1% in Adani Power for $1.1 billion

  US-based investment firm GQG Partners has bought an 8.1% stake in Adani Power Ltd for over Rs 9,000 crore (USD 1.1 billion), following a report of a US short seller to invest in billionaire Gautam Adani’s group. The deal, which includes 31.2 crore shares of Adani Power, is one of the largest secondary market equity transactions in the company’s history. The Adani family, which holds 74.97% in the firm, sold the 31.2 crore shares at an average price of Rs 279.17 per share.

Global Market Update

• GIFT Nifty

  The GIFT Nifty experienced a 46-point loss after closing 30 points higher on August 16, with futures at 19,429 points, indicating a slightly negative start for the broader index.

• US Markets

  Stock futures were near flat on Wednesday night following the Federal Reserve’s latest statement that future rate hikes are not out of the picture.

  The Dow Jones Industrial Average added 20 points, while S&P 500 and Nasdaq 100 futures traded near the flat line.

  Cisco Systems gained about 2% in after-hours trading, following its fiscal fourth-quarter earnings report that beat Wall Street’s expectations.

  Wolfspeed plunged 14% following the report.

  The S&P 500 dropped 0.76 percent, the Dow shed 0.52 percent, and the Nasdaq Composite 1.15 percent.

  The markets reflected investors’ concerns after officials suggested additional tightening may be necessary to reduce inflation.

• European Markets

  European markets closed slightly lower on Wednesday due to UK inflation data.

  The Stoxx 600 index ended the session down 0.1%, with media stocks leading the losses and retail stocks rising 0.9%.

  The headline consumer price index reading was in line with analysts’ expectations and comes after a cooler-than-expected 7.9% figure for June.

  The Stoxx 600 closed 0.9 percent lower in the previous session, a one-month low for the index.

  Markets will be monitoring the euro zone’s second gross domestic product reading for the second quarter and the UK house price index, both set for release later in the day.

  Asia-Pacific markets also saw a sell-off, mirroring Wall Street’s moves after a decline in US banks.

  US stocks gained slightly as traders awaited the release of minutes from the Federal Reserve’s July meeting.

•   Asian Markets

  Asia-Pacific markets experienced a sell-off on Wednesday, mirroring Wall Street’s moves following a decline in US banks.

  Shares of JPMorgan Chase and Wells Fargo dropped 2%, while Bank of America dropped 3%.

  Fitch warned it may have to downgrade credit ratings for dozens of banks, including JPMorgan Chase.

  Moody’s lowered its rating on 10 US banks last week and put other big institutions on a watchlist for potential downgrades.

  Japan’s Nikkei 225 slid 1.46% to 31,766, the first time it has gone below the 32,000 mark in over a month.

  South Korea’s Kospi closed 1.76% down, while the Kosdaq saw a larger loss of 2.59%.

  The S&P/ASX 200 slipped 1.5 percent, closing at 7,195, and Hong Kong’s Hang Seng index fell 1.31% in its final hour.

  China saw its house price index fall into contraction territory for the first time since April, dropping 0.1 percent year-on-year.

• Oil Prices

  Oil prices remained stable on Wednesday as investors weighed concerns about China’s economy against expectations of tighter supply in the United States. Brent crude futures rose 27 cents to $85.16 a barrel, while U.S. West Texas Intermediate crude (WTI) rose 29 cents to $81.28 a barrel. China’s sluggish economy has led to concerns over a deeper, longer-lasting slowdown in growth. The central bank made a marginal cut to interest rates after data showed intensifying pressure on the economy, mainly from the property sector. Both the OPEC+ group and the International Energy Agency are banking on China to galvanize crude demand over the rest of 2023.

• Dollar Index

  The Dollar index rose 0.04 percent in futures to 103.37, while the dollar’s value was near Rs 83.20.

• Gold Prices

  Gold rose on Wednesday due to a weaker dollar and bond yields, recovering some ground after retreating below the key $1,900 level in the last session. Bullion traders positioned for minutes from the Federal Reserve’s July policy meeting for further cues on interest rate strategy and U.S. homebuilding and factory output data later in the day. Spot gold edged up 0.2% to $1,905.25 per ounce, while US gold futures were up 0.1% at 1,936.60. Gold has found short-term support from a weaker dollar as the pound strengthened after data showed British core inflation remained strong in July. Non-yielding gold also gained as benchmark 10-year Treasury yields retreated from near 10-month highs.

STOCK IN NEWS

• One 97 Communications: In the off-market transactions, investor Antfin (Netherlands) Holding BV sold 6.53 crore equity shares, or a 10.3 percent interest in the company that operates the payment app Paytm. Antfin, a subsidiary of China’s Ant Group Co, saw its ownership in the firm drop from 23.79 percent to 13.49 percent as a consequence. The purchaser in the off-market transfer of shares was founder and CEO Vijay Shekhar Sharma.

• Ujjivan Financial Services: On August 14, NewQuest Asia Investments II decreased its ownership investment from 5.17 percent to 2.7 percent in the financial services provider. On August 14, the foreign investor sold its 2.47 percent interest through block agreements.

• Essar Shipping: The company’s board of directors has given the go-ahead for the sale of shares in three fully owned subsidiary companies: Essar Shipping DMCC in Dubai, Energy II Limited in Bermuda, and OGD Services Holdings Limited in Mauritius. The aforementioned three businesses will no longer be Essar Shipping’s subsidiaries once the deal is complete.

• RPSG Ventures:Equity Intelligence India & EQ India Fund, controlled by renowned investor Porinju Veliyath, sold a 0.71 percent investment in RPSG Ventures (formerly CESC Ventures) through open market transactions on August 11. Their ownership in the company fell from 2.79 percent to 2.08 percent as a result.

• Adani Power: Goldman Sachs Trust II-Goldman Sachs Adani Power At an average price of Rs 279.15 per share, the GQG Partners Emerging Markets Equity Fund purchased 4.9 crore shares from open market transactions, representing 4.94% of the total equity and totaling Rs 4,244.76 crore. The GQG Partners International Opportunities Fund purchased 10.3 crore equity shares in an Adani Group company. However, promoters Afro Asia Trade and Investments and Worldwide Emerging Market Holding Limited offloaded 26.54 crore and 4.65 crore shares, respectively, of Adani Power at an average price of Rs. 279.18 per share and Rs. 279.16, respectively.

• JSW Energy: At an average price of Rs 341.7 a share, Rajiv Jain-backed GQG Partners Emerging Markets Equity Fund acquired 1.03 crore shares, or 0.62% of JSW Energy, through open market transactions. However, the business’s promoter JSW Investments sold 2.1 crore shares, or 1.28% of the company, for Rs 717.57 crore at the same price.

• Skipper: The maker of power T&D structures has acquired board permission for the rights issue of equity shares valued at Rs 200 crore to qualified equity shareholders as of the record date.

• Religare Enterprises: The promoters of Dabur India, MB Finmart, VIC Enterprises, and Puran Associates, all controlled by the Burman family, acquired an additional 7.56% interest in the financial services firm through open market transactions, or 2.45 crore equity shares, at an average cost of Rs 217.95 per share. The seller in this transaction was a foreign portfolio investor, Investment Opportunities V Pte Limited.

• IIFL Securities: Hamblin Watsa Investment Counsel Limited A/C Hwic Asia Fund Class A Shares, a foreign portfolio investor owned by Fairfax Financial Holdings, sold 60 lakh shares, or 1.96% of the online trading platform, at an average price of Rs 65.67 per share and another 1.2 crore equity shares at an average price of Rs 65.45 per share, according to IIFL Securities. However, at an average price of Rs 65.45 a share, Theleme India Master Fund purchased 80 lakh shares, Zafar Ahmadullah purchased 40 lakh shares, and Aalidhra Textool Engineers purchased 32.05 lakh shares in IIFL.

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