Sensex gains 550 points, Stock Market News Sep-01

Sensex gains, closed at  65,387 level: While Nifty at 19,435 level

 Indian Market 

FII AND DII 

 Indian Market News

1. Sensex climbs 550 points, Nifty surpasses 19,430; metal, power shine
2. Wall Street closes neutral as inflation data boosts confidence.
3. Oil is likely to end a two-week losing streak as supplies tighten.
4. Dollar set for weekly loss ahead of important jobs data; PBOC supports yuan
5. The GIFT Nifty indicates a dismal start for India’s broader index.
6. According to CNBC-TV18, oil marketing companies raised Jet Fuel (ATF) prices in Delhi by 14 percent to Rs 1.12 Lk/Kl.
7. In July, India’s core sector growth rate slowed slightly to 8.0%.
8. The services sector drives near-8% real GDP growth in Q1, indicating robust momentum.
9. The April-June GDP growth rate in India was 7.8%, the highest in four quarters.
10. Moody’s raises 2023 GDP growth forecast for India to 6.7% from 5.5%  
11. PE investors may sell up to 8.8% of their investment in Five Star Business Finance in block agreements.
12. The budget deficit in India increased to Rs 6.06 lakh crore in April-July, accounting for 34% of the FY24 projection.
13. India’s August manufacturing PMI rises to 58.6 from 57.7 in July – highest in three months.   
14. Maruti Suzuki records highest ever monthly sales of 1,89,082 units in August
15. SML Isuzu August Auto Sales | Total sales flat at 1,005 units versus 1,002 units, YoY. 
16. Mahindra and Mahindra Auto August Auto Sales | Total sales were up 19 percent at 70,350 units versus 59,000 units, YoY. 
17. Atul Auto August Auto Sales | Total sales up 33.9% at 2,610 units against 1,950 units, YoY. 
18. Auto sales in August: Bajaj Auto sales decline by 20%, exports see 2% uptick 
19. TVS Motor August Auto Sales | Total sales up 4% at 3.45 lakh units versus 3.33 lakh units, YoY.
20. Ashok Leyland August Auto Sales | Total sales were up 10% at 15,576 units versus 14,121 units, YoY.
21. Tata Motors August Auto Sales | Total sales decreased 1 percent at 78,010 units versus 78,800 units, YoY.
22. Eicher Motors August Auto Sales | Total CV sales up 29.4% at 6,476 units versus 5,003 units, YoY.
23. VST Tillers August Auto Sales | Total sales up 12% at 4,037 units versus 3,602 units, YoY.
24. BSE shares surge 7 percent after repurchase offer price upped to Rs 1,080
25. Coal India August production up 13.2% at 52.3 MT compared 46.2 MT and Offtake was up 15.3% at 59 MT versus 51.2 MT, YoY.
26. Gail India gains 4% after large block transaction
27. Jio Financial Services will be delisted from the BSE indices on September 1st.
28. Torrent Pharma is likely to have made a non-binding approach to acquire a stake in Cipla.
29. German Automotive Engineering Services will be acquired by HCL Technologies.
30. Jupiter Life Line Hospital’s IPO price band is Rs 695-735 per share.

     INDIAN MARKET MOVERS 

MAJOR UPDATES

• Most Adani Group stocks end lower; Adani Green Energy tanks over 4%

  Shares of most Adani Group companies ended lower on Thursday following a report from investigative reporting platform OCCRP alleged that hundreds of millions of dollars were invested in publicly traded group stocks through Mauritius-based ‘opaque’ investment funds managed by partners of the promoter family of billionaire Gautam Adani. The conglomerate denied the charges vehemently. Nine of the group firms settled in the negative territory, while one ended in the green. Adani Green Energy’s stock plunged 4.39% to Rs 928.05, while Adani Enterprises’ shares plunged 3.77% to Rs 2,418.80. Shares of Adani Energy Solutions dipped 3.52% to Rs 812.15, Adani Ports and Special Economic Zone slipped 3.37% to Rs 791.40, Adani Total Gas declined 2.59% to Rs 635.60, Adani Wilmar fell 2.56% to Rs 359.50, Adani Power at Rs 321.05, and NDTV at Rs 214.60. ACC’s stock gained 0.47% to Rs 2,009.55 per piece on the BSE.

• India’s fiscal deficit rises to Rs 6.06 lakh crore in April-July, 34% of FY24 target

  India’s fiscal deficit increased to Rs 6.06 lakh crore in April-July, accounting for 33.9 percent of the full-year target of Rs 17.87 lakh crore. The deficit for April-July 2022 was 20.5% of the target for 2022-23. The Centre’s finances weakened in July due to a monthly fiscal deficit of Rs 1.54 lakh crore, compared to a fiscal surplus of Rs 11,040 crore in the same month last year. This resulted in a 77.7% higher fiscal deficit for April-July 2023 compared to the first four months of 2022-23.

• India’s April-June GDP growth at 7.8%, highest in four quarters

  India’s Gross Domestic Product (GDP) reached a four-quarter high in April-June, reaching 7.8%, marking the highest in four quarters, according to the Ministry of Statistics and Programme Implementation. This growth rate is slightly above expectations, with economists expecting a 7.7% growth for the first quarter of 2023-24 and the Reserve Bank of India forecasting an 8 percent growth rate. The Indian economy expanded by 6.1% in January-March and 13.1% in April-June 2022.

• Jio Financial Services to be removed from BSE Indices from September 1

  Jio Financial Services, the demerged financial business of Reliance Industries, will be removed from the BSE Indices, including the benchmark 30-pack Sensex, on September 1, 2023. The Bombay Stock Exchange announced the move on August 31. The stock’s removal was delayed by exchanges due to its continued lockdown in the lower circuit. On August 31, the stock closed at an upper circuit of 5%, reaching Rs 242.50 a share on BSE. The BSE notice stated that Jio Financial Services Ltd will be removed from all S&P BSE Indices following its listing on August 21, 2023.

• No concern about inflation spiralling out of control, says CEA Nageswaran

  Chief Economic Adviser V Anantha Nageswaran has stated that there is no real cause for concern about inflation spiraling out of control. He stated that the Union government and the Reserve Bank of India are monitoring price developments due to deficient rainfall in August. Nageswaran stated that core inflation rates are declining, and food inflation was dominated by specific commodities, so there is no real cause for concern.

• Five Star Business Finance: PE investors may sell up to 8.8% via block deals

  Private equity investors are expected to sell up to 8.8% of a stake in Five Star Business Finance via block deals, according to CNBC-TV18. Matrix Partners, TPG Asia, and Norwest Ventures may also be involved in the sale. The floor price for these block deals is expected to be Rs 724 per share, a 6.25 percent discount from the current market price. The total size of Five Star Business Finance, including base size, could reach Rs 1,860 crore.

Global Market Update

GIFT Nifty

The GIFT Nifty index started slightly negative, losing 20 points, while futures reached 19,409 points after reaching a high of 19,410 points.

US Markets

Stock futures were near the flat line after a mixed trading session, marking the end of a month with losses for all three stock indexes.

The Dow Jones Industrial Average futures added 22 points, while S&P 500 futures hovered above the flat line.

MongoDB and Dell Technologies advanced 4% and 7%, respectively, due to stronger-than-expected earnings reports.

Lululemon Athletica added 1% after crushing Wall Street’s estimates.

The S&P 500 lost 1.77%, the Nasdaq shed 2.17%, and the Dow dropped 2.36% in August.

European Markets

European stock markets closed slightly lower on Thursday after preliminary euro zone inflation data was released.

The pan-European Stoxx 600 fell to a 0.1% loss, while UBS posted its first set of results since Credit Suisse’s takeover.

UBS posted a second-quarter profit of $28.88 billion, exceeding analysts’ projections of $12.8 billion.

Euro zone inflation was higher than expected for August at 5.3%, with Spain reporting flash inflation up 2.6% year on year for August.

Germany reported a 13.2% drop in imports for the year to July, the sharpest drop since January 1987.

  Asian Markets

Asia-Pacific markets were mixed on Thursday as China’s factory activity contracted for a fifth consecutive month in August.

India’s Adani stocks fell amid allegations of trade manipulation, with Adani Green Energy and Adani Enterprises falling 3.6% and 2.1% respectively.

The official manufacturing purchasing managers index came in at 49.7, representing a softer rate of contraction compared to the expected 49.4 by economists.

Hong Kong’s Hang Seng index slid 0.55% in its final hour of trade, while Mainland Chinese stocks were in negative territory.

Japan’s Nikkei 225 advanced 0.88% and closed at 32,619.34, while the Topix was up 0.8%.

The Australian S&P/ASX 200 extended gains, marking four straight days of gains this week.

South Korea’s Kospi fell 0.19% to 2,556.27 as industrial production slid 8% year-on-year in July, marking its 10th straight month of contraction.

Oil Prices

Oil prices have retreated from their highs as data shows increased production in OPEC+ countries despite a planned production cut of 1 million barrels per day. Brent crude futures rose 82 cents to $86.69 a barrel, while U.S. West Texas Intermediate crude futures was up $1.04, or 1.27%, at $82.67 a barrel. Markets appeared to anticipate higher-than-expected OPEC+ production as trading moved to the middle of the day. The markets were reacting to U.S. government data showing a larger-than-expected 10.6 million barrel fall in crude inventories last week. Analysts expect Saudi Arabia to extend a voluntary oil production cut of 1 million barrels per day into October.

Dollar Index

The Dollar index rose 0.40 percent in futures to 103.57, while the dollar’s value was near Rs 82.65.

Gold Prices

Gold remained steady on Thursday, near its one-month peak, following expected U.S. inflation and weaker job numbers. Spot gold was flat at $1,941.49 per ounce, close to its highest since August 2. U.S. gold futures dipped 0.2% to $1,968.1 per ounce. Inflation rose 0.2% last month, matching June’s gain. The personal consumption expenditures (PCE) price index increased 3.3% in the 12 months through July. U.S. consumer spending accelerated in July, with weekly initial jobless claims falling 4,000 to 228,000. Senior market strategist Bob Haberkorn suggests that the Federal Reserve may be in a position to halt interest rate rises early next year.

                                                                                 Stock in News

• Torrent Pharma and Cipla: According to reports cited by CNBC-TV18, Ahmedabad-based Torrent Pharmaceuticals has likely made a non-binding offer to buy the promoters’ interest in pharmaceutical giant Cipla. In the upcoming weeks, Torrent Pharma could decide on a legally binding offer. As it analyses various funding alternatives for the offer, the corporation is reportedly in discussions with three to four private equity firms and international institutions.

• Genus Power Infrastructures: A letter of award (LOA) worth Rs 2,247.37 crore has been given to Genus Power Infrastructures’ subsidiary for the recruitment of advanced metering infrastructure service providers (AMISPs). The order book’s entire value is currently close to Rs 11,000 crore.

• Punjab National Bank: The public sector lender Punjab National Bank has increased lending rates by 5 basis points across all tenures. The increased interest rate on loans will take effect on September 1.

• India Pesticides: To build a pesticide production facility, the UP-based agrochemical business would purchase 11,461 square metres of property next to its Sandila factory. The firm has acquired an allocation letter from the relevant competent body for the aforementioned land, and the purchase of this additional site will aid in capex plans for future growth of the Sandila facility.

• Genus Power Infrastructures: A letter of award (LOA) worth Rs 2,247.37 crore has been given to Genus Power Infrastructures’ subsidiary for the recruitment of advanced metering infrastructure service providers (AMISPs). The contract calls for the design of an advanced metering infrastructure (AMI) system, as well as the supply, installation, and commissioning of 24.18 lakh smart prepaid metres, as well as system metres that include OT metres, with corresponding energy accounting under the DBFOOT model (hybrid model, capex plus operating expenses). The order book’s entire value is currently close to Rs 11,000 crore.

• Medplus Health Services: Through open market transactions, the government of Singapore, Fidelity Funds – India Focus Fund, Nippon India Mutual Fund, and Steadview Capital Mauritius acquired a 6.5% interest in the retail pharmacy, or 77.87 lakh shares, totaling Rs 607.53 crore. But 1.4 million shares in Medplus—70 lakh shares each—were sold by PI Opportunities Fund I and Lavender Rose Investment for Rs 1,206.5 crore.

• Sula Vineyards: Through open market transactions, HDFC Mutual Fund, Morgan Stanley Asia Singapore Pte, Societe Generale, and Ghisallo Master Fund LP purchased 59.58 lakh equity shares, or 7.06% of the nation’s largest wine producer, at an average cost of Rs 484 per share. The total price of the share sale was Rs 288.4 crore. However, foreign investor Verlinvest Asia Pte Ltd sold 1.06 crore shares, or 12.56% of Sula, for a total of Rs 513.18 crore at an average price of Rs 484.13 a share.

• Five Star Business Finance: According to sources cited by CNBC-TV18, PE investors Matrix Partners, TPG Asia, and Norwest Ventures are expected to sell up to 8.8% of their shares in Five Star Business Finance through block sales. Block transactions’ expected floor price is Rs 724 per share.

• Prudent Corporate advice Services: Through open market transactions, TA FDI Investors (previously Wagner Limited) sold 37.37 lakh shares, or 9.03% of the platform’s mutual fund advice services, at an average price of Rs. 1,125.07 per share. The share sale brought in 420.53 crore rupees. However, for a total of Rs 308.11 crore, Abu Dhabi Investment Authority, India Acorn Icav, and DSP Mutual Fund purchased 6.61% of Prudent Corporate, or 27.38 lakh shares, at an average price of Rs 1,125 per share. As of June 2023, the foreign corporation Wagner owned 24.07% of Prudent.

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