Sensex gains 210 points, Stock Market News Aug-23

Sensex gains, closed at 65,433 level: While Nifty at 19,440 level

 Indian Market 

FII AND DII 

 Indian Market News

1. The Nifty is about 19,450, and the Sensex is up 200 points, led by banks, metals, and capital goods.
2. Gold has stabilized at $1,900 per ounce as investors await rate indications.
3. The dollar is near a two-month high, and the yen is near 146/$.
4. Asian stocks are tight ahead of Nvidia earnings, and rates are near highs.
5. Motherson Sumi Wiring gains 0.8% on a large block transaction.
6. Aeroflex IPO has been subscribed 14 times, with day two of bidding still ongoing; high interest from NIIs and retail buyers.
7. The NBCC sells 1.98 lakh square feet for Rs 821.02 crore.
8. In the first quarter, Adani Group’s EBITDA increased by 42%.
9. Piramal Enterprises receives board approval to issue NCDs for up to Rs 3,000 crore.
10. Shriram Properties and ASK Property Fund invest Rs 206 Cr in a Chennai property
11. L&T shares surge to a record high as a Rs 2,500-crore urea plant contract is announced
12. TVS Supply Chain Solutions makes a low-key debut, priced at Rs 207.
13. Vodafone Idea intends to pay off approximately Rs 2,400 crore in debt by September.
14. BEML receives a Rs 101 crore order from the Ministry of Defence.
15. Shriram Properties gains more than 7% after Omega sells a stake.

     INDIAN MARKET MOVERS 

MAJOR UPDATES

• SBI sees India’s GDP growing 8.3% in April-June, 6.7% in FY24

  State Bank of India’s chief economic advisor, Soumya Kanti Ghosh, predicts that the Indian economy may have grown by 8.3% in April-June 2023, surpassing the 6.5% forecast by the government and the Reserve Bank of India (RBI). Ghosh’s Artificial Neural Network (ANN) model, which includes 30 high-frequency indicators, predicts a quarterly GDP growth of 8.3% for Q1FY24 (April-June 2023). This is the highest growth forecast in four quarters. The RBI’s latest forecast suggests that GDP growth may have risen to 8% in April-June from 6.1% in January-March, far higher than economists’ expectations of 5.1%. The GDP data for April-June will be released on August 31.

• FILA-backed Doms Industries files draft papers with SEBI, to raise Rs 1,200 crore via IPO

  Doms Industries, an Italian-backed company, has filed a draft red herring prospectus with the Securities and Exchange Board of India (SEBI) to raise Rs 1,200 crore through an initial public offering. The public issue will involve a fresh issuance of Rs 350 crore shares and an offer-for-sale of Rs 850 crore by promoters. The corporate promoter, FILA-Fabbrica Italiana Lapised Affini S.p.A., will offload shares worth Rs 800 crore via OFS, while domestic promoters Sanjay Mansukhlal Rajani and Ketan Mansukhlal Rajani will sell shares worth Rs 25 crore each. The Gujarat-based company may consider a pre-IPO placement of Rs 70 crore before filing the prospectus.

• Vistara posts net loss of Rs 1,393 crore for 2022-23 despite revenues doubling

  Tata SIA Airlines Ltd (Vitara) reported a net loss of Rs 1,393 crore in 2022-23, a 31.4 percent decrease from the previous year’s loss of Rs 2,031 crore. The decline was primarily due to a doubling in topline revenue from operations compared to Rs 11,784 crore in 2021-22. Despite this, the airline’s net worth fell to Rs 502 crore at the end of 2022-23, compared to Rs 1,250 crore at the end of 2021-22. Vistara also noted a strong recovery in the Indian aviation industry in 2022-23.

• Hindalco to invest Rs 2,000 crore for first-ever copper and e-waste recycling facility: KM Birla at AGM

  Hindalco Industries is set to invest up to Rs 2,000 crore to establish a “first of its kind” copper and e-waste recycling unit in India. The move aims to address the growing issue of e-waste, which is the world’s largest waste stream. The company’s chairman, Kumar Mangalam Birla, announced the investment, stating that due to the lack of advanced metal extraction and refining technologies in India, a significant volume of e-waste is exported to other nations. Birla emphasised the importance of bringing cutting-edge technology to India as a transformative step towards offering a tangible solution to the country’s circular economy agenda.

• Piramal Enterprises board approves public issue of NCDs up to Rs 3,000 crore

  Piramal Enterprises has approved the public issuance of secured, rated, listed, redeemable, non-convertible debentures (NCDs) worth up to Rs 3,000 crore. The company’s board has given the nod, and the committee approved the issuance of NCDs with a face value of Rs 1,000 each, aggregating up to Rs 3,000 crore in one or more tranches. The commencement date for subscription to the public issue remains unknown.

Global Market Update

• GIFT Nifty

  The GIFT Nifty showed a 24 point gain after closing 3 points higher on August 22, with futures at 19,337 points, indicating a slightly positive start for the broader index.

• US Markets

  Stock futures are near flat as investors await corporate earnings reports from well-known names like Nvidia.

  Dow Jones Industrial Average futures added 22 points, while S&P 500 and Nasdaq 100 futures each climbed 0.1%.Urban Outfitters shares were over 5% higher in extended trading, while La-Z-Boy slumped more than 1% due to management’s statement that furniture sales will remain challenging.Retail stocks Peloton, Foot Locker, Kohl’s, and Abercrombie & Fitch are due before the bell, followed by artificial intelligence stock Nvidia and Snowflake after the market closes.The Nasdaq Composite eked out a 0.06 percent advance, despite selling pressure as investors readied for earnings from Nvidia, which was the biggest laggard on the index in Tuesday’s session.

• European Markets

  European stock markets rose on Tuesday, with the Stoxx 600 index ending 0.7% higher.

  Technology stocks led the pack, up 2%.

  French game publisher Ubisoft Entertainment rose 9% after Microsoft divested gaming rights to the company in a new deal for Activision Blizzard takeover.

  Bond selling sent the benchmark 10-year US Treasury note yield to its highest level since 2007, while the 30-year yield hit its highest level since 2011.

  Higher bond yields generally mean lower stock prices, and Rupert Thompson, chief economist at Kingswood Group, believes that further downside risk to equities is coming from bond yields at these levels.

  Cash is now yielding 5% in the States, and short-dated bonds are yielding 5% plus, giving equities competition.

•   Asian Markets

  Asia-Pacific markets are expected to fall, reversing gains made on Monday. Investors are assessing private business activity surveys from Australia and Japan, as well as inflation figures from Singapore. The S&P/ASX 200 in Australia slightly decreased, while Japan’s Nikkei 225 and Topix fell. South Korea’s Kospi and Kosdaq also fell. Hong Kong’s Hang Seng index futures showed a weaker open compared to the HSI’s close of 17,791.01.

• Oil Prices

  Oil prices remained steady on Tuesday due to investors’ disappointment with China’s economic situation, which is causing a decrease in demand from the world’s top crude importer. US West Texas Intermediate rose 13 cents to $80.85 a barrel, while Brent crude traded 9 cents higher at $84.55 a barrel. The front-month WTI contract was down 4 cents at $80.68 a barrel on a limited volume of trades. China is seen as key to boosting oil demand over the rest of the year, but its sluggish economic activity has frustrated markets. Eurasia Group predicts that China’s economic weakness will create a ceiling for them this year, especially as Beijing appears to avoid large-scale fiscal stimulus.

• Dollar Index

  The Dollar index rose 0.28 percent in futures to 103.59, while the dollar’s value was near Rs 83.04.

• Gold Prices

  Gold prices fell to a five-month low on Tuesday due to a stronger dollar and higher bond yields. Spot gold was down 0.2% at $1,890.39 an ounce, while US gold futures gained 0.4% to $1,930.90. The dollar rose 0.2%, making gold more expensive for other currency holders. Benchmark 10-year US Treasury yields reached levels not seen since November 2007. Gold prices fell to their lowest level since March last week, as strong US economic data boosted bets that US interest rates would stay higher for longer.

Stock in News

• KEC International: Across its different operations, the RPG Group firm has received fresh orders totaling Rs 1,007 crore. The design, engineering, procurement, and construction of a multi-specialty hospital in India has been ordered for the first time by the civil company, and a significant order for a 380 kV overhead transmission line project in the Middle East has been acquired by the transmission and distribution industry.

• TVS Supply Chain Solutions: On August 23, the TVS Mobility Group firm will begin trading on the BSE and NSE. The fixed issue price per share is Rs 197.

• Piramal Enterprises: The business said that the board of directors has authorised the public offering of non-convertible debentures (NCDs) for up to Rs 3,000 crore. There would be one or more tranches for the public offering of Rs 3,000 crore.

• Vodafone Idea: According to individuals with knowledge of the situation, the indebted telecom provider expects to pay off the government’s debt of roughly Rs 2,400 crore by September. By September, according to the source, the corporation will pay all outstanding balances for the quarter ending in June 2023 as well as the spectrum installment. Vodafone Idea was required to pay a licence fee of around Rs 770 crore by July as well as the initial installment of Rs 1,680 crore for the spectrum it bought in last year’s spectrum auctions.

• BEML: The Ministry of Defence has given the state-owned company a contract to provide the Indian Army with command post vehicles. The order is for 101 crore rupees.

• RITES: In the tender issued by the Railway Board, the state-run railway emerged as the lowest bidder. The deal is expected to cost Rs. 65.4 crore. For Indian Railways, the business will perform service testing and rail inspections in accordance with IRS T-12 2009. The deal will be implemented within five years, with a one-year extension option.

• Bharat Forge: The assurance that the business offered to its fully owned step-down subsidiary, Bharat Forge Aluminium USA, Inc., has a new validity term. Prior to November 27, 2023, the $15.5 million issued in JP Morgan Bank’s favour was still valid. The aforementioned guarantee has been modified, and its new expiration date is July 31, 2026.

• Polycab India: The manufacturer of electrical equipment has provided HDFC Bank with a comfort letter so that its subsidiary Tirupati Reels can take advantage of an increased borrowing limit ranging from Rs 52 crore to Rs 89.97 crore. To satisfy its financial obligations for its manufacturing company, the subsidiary will need money for working capital and capital expenditures.

   

• SJS Enterprises: Evergraph Holdings Pte Ltd, the promoter organisation, sold 29.52% of its personal interest of 34.15% in SJS Enterprises through open market transactions. Evergraph sold 45.82 lakh shares in SJS at an average price of 600 and 600.06 rupees per share, for a total transaction value of 549.87 crore rupees. 1.73 lakh firm shares were sold by investor Sanders Consulting at an average price of Rs 600.78 per share. Investors did, however, purchase 75.35 lakh shares, or 24.3% of SJS, at an average cost of Rs 600 per share.

   

• Shriram Properties: Through an open market transaction, a foreign corporation, Omega TC Sabre Holdings Pte Limited, sold an additional 2.29 percent ownership, or 39 lakh shares, in the real estate developer for a total of Rs. 30.59 crore, or an average price of Rs. 78.44 per share. During the prior session, Omega sold 18 lakh shares, or 1.06% of the total. With this, Omega has sold 3.35% of its entire holdings as of now, compared to 9.39% owned as of June 2023.

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