Zomato Hits Life High As CLSA Affirms It As Top Pick
Zomato Ltd. rose as much as 2.50% to Rs 297.70, the highest level July 23, 2021. CLSA kept the stock as its top picks in India consumer segment as it’s well placed to benefit from the rising consumer demand after it acquired Paytm’s ticketing business.
SpiceJet Surges Over 10% As Board Approves Fundraise
Shares of SpiceJet Ltd. rose as much as 10.04% to Rs 72.80, the highest level since Sept 19. The stock rose as the board approved to raise Rs 3,000 crore via qualified institutional placement.
JP Morgan’s Chinoy Sees Rate Cuts In Asia As US Fed Started Easing
JP Morgan’s India Chief Economist expects a slew of rate cuts across Asia now that the US Federal Reserve has started rate cuts.
India is better placed due to a large war chest of reserves which RBI has.
In India issue is about food inflation, which RBI correctly is patiently waiting for. RBI is looking for certainty on food inflation cooling
India is getting closer to a rate easing cycle, likely to begin in October or December.
Financial conditions are very benign in India. More demand visibility is what Indian corporates are looking for.
Source: Sajjid Chinoy, India chief economist, JP Morgan
Telecom Shares Rise; Jefferies See Airtel & Jio To Gain Market Share
Shares of telecom stocks were trading in the green amid Jefferies’ outlook on the recently released TRAI data for the month of July, which suggested Jio and Bharti Airtel Ltd. would continue to gain market share in the near term, even though both the aforementioned companies and Vodafone Idea Ltd. faced a decline in subscriber count post taking up tariffs.
Vodafone Idea Hits 10% Upper Circuit After Signing Deal For Telecom Equipment Supply
Vodafone Idea Ltd. share prices were locked in 10% upper circuit after it signed a deal worth $3.6 billion with Nokia, Ericsson, and Samsung for network equipment over a period of five years.
Adani Group Stocks Trade Higher
Stocks of Adani Group companies were trading higher with the Adani Total Gas Ltd. leading the gain. Adani Total Gas Ltd. rose after it raised funds from international investors.
Here Are Indices That At Life Highs
Nifty, Sensex Hit Record Highs At Open; Airtel, L&T Rise
The NSE Nifty 50 and BSE Sensex touched fresh high levels at open on Monday as Bharti Airtel Ltd., and Larsen & Toubro Ltd. lead.
As of 09:18 a.m., the Nifty 50 was trading 83.60 points or 0.32% higher at 25,874.55, and the Sensex was trading 204.47 points or 0.24% higher at 84,748.78.
“The strategy should be to buy on dips between 25700 and 25600 and keep a final stop at 25,450,” said Shrikant Chouhan, head, equity research, Kotak Securities. “The market could move towards 26,000-26,200/85,000-85,500 on the higher side. On the other hand, below 25,450/82,500 the sentiment might change. Below the same, traders might prefer to exit trading long positions,” he added.
Bharti Airtel Ltd., HDFC Bank Ltd., Mahindra & Mahindra Ltd., Reliance Industries Ltd., and Larsen & Toubro Ltd. added to the benchmark index.
ICICI Bank Ltd., IndusInd Bank Ltd., HCL Technologies Ltd., Infosys Ltd., and LTIMindtree Ltd. weighed on the index.
On NSE, 11 sectors advanced, and one declined out of 12. The NSE Nifty Auto rose the most, and the NSE Nifty IT declined the most.
Broader markets underperformed benchmark indices during open. The BSE Midcap and Smallcap indices were trading 0.15% and 0.59% higher, respectively.
On BSE, all 20 sectors gained with the BSE Telecommunication emerging as the top gainer. The BSE IT logged the least gain.
Market breadth was skewed in favour of buyers. Around 2,158 stocks rose, 925 stocks declined, and 143 stocks remained unchanged on BSE.
Nifty, Sensex Trade Higher At Pre-Open
At pre-open, the NSE Nifty 50 was trading 0.32% higher at 25,872.55, and the BSE Sensex was trading 0.13% 84,651.13.
Unichem Labs To Mull Consolidation Of USA Generic Formulations Business
Unichem Laboratories Ltd. is likely to consider integration and consolidation of all Ipca Group’s USA generic formulations business under single entity, it said exchange filing.
Yield On The 10-Year Bond Opens Flat
The yield on the 10-year bond opened flat at 6.77%.
It closed at 6.76% on Friday.
Source: Bloomberg
Rupee Strengthens Against US Dollar
Rupee strengthened by 9 paise to open 83.48 against the US dollar.
It closed at 83.57 on Friday.
Source: Bloomberg
Equity Risk Premium In India At All-Time Low, Says JP Morgan’s Mookim
Equity risk premium in Indian markets is at its all time low
The rate cut is happening because the growth is slowing significantly. If growth slows, it’s a very bad situation for equities, and risk-assets.
The debate is still on which sort of rate cut investors received. As of now, they believe it’s the forward rate cut. Growth is fine, inflation has come down, it’s great for us.
What market participants need to watch, not just in the US, but all around the world, does growth hold up or not. If it doesn’t, then it’s bad for equities
Source: Sanjay Mookim, head, equity research, JP Morgan to NDTV Profit
IPO Offering: Manba Finance To Open Its Offer For 150-Crore Issue
Manba Finance Ltd. will offer its shares for bidding on Monday. The price band is set from Rs 114 to Rs 120 per share. The Rs 150 crore IPO issue is entirely a fresh issue. The company raised Rs 45 crore from anchor investors.
Bulk Deals
The Vanguard Group bought 6.71 lakh shares or 0.5% equity of Arvind Fashions at Rs 588.68 apiece. The Group also obtained 12.74 lakh shares or a 1.05% stake for Rs 331 crore in Concord Biotech Ltd.
Meanwhile, the UBS Principal Capital Asia sold 7.4 lakh shares or 0.7% equity of Concord Biotech.
The Vanguard Group mopped up 37.8 lakh shares or a 1.28% stake for Rs 304.7 crore of Five-Star Business Finance Ltd. UBS Principal Capital Asia sold 15.8 lakh shares (0.54%) at Rs 804.74 apiece.
In Genus Power Infrastructure Ltd., the Vanguard Group bought 15.19 lakh shares or 0.5% equity at Rs 416.31 apiece.
UBS Principal Capital Asia sold 17.1 lakh shares or 0.55% in IIFL Securities at Rs 309.84 apiece.
Meanwhile, UBS Principal Capital Asia sold 34.01 lakh shares or 0.75% equity of Marksans Pharma Ltd. at Rs 317.22 apiece while the Vanguard Group acquired 50 lakh shares or a 1.09% stake of the company for Rs 158.4 crore.
Leela Hotels Operator Schloss Bangalore Files For Rs 5,000-Crore IPO
Stocks To Watch: Vodafone, SpiceJet, & Adani Total Gas Share Price May React
Vodafone Idea Ltd. has signed a $3.6 billion deal with Nokia, Ericsson and Samsung for the supply of network equipment over a period of three years. SpiceJet Ltd.’s board approved issuance of 48.7 crore equity shares at an issue price of Rs 61.60 per share to raise Rs 3,000 crore via QIP.
Adani Total Gas: The company secured funding of $375 million from international lenders to expand its city gas distribution network. Bharat Heavy Electricals: The company received an order worth Rs 6,100 crore from NTPC Ltd. for an engineering, procurement, and construction package for the 1×800 megawatt Sipat Supercritical Thermal Power Project.
Dr. Reddy’s Laboratories Ltd.’s Hyderabad Research & Development facility got the US Food and Drug Administration’s zero observation after inspection. Tata Steel Ltd commissioned a blast furnace at Kalinganagar, Odisha.
Global Cues: Dollar index Steady, US Treasury Yield Rises
The dollar index, which measures the greenback’s strength against the six major currencies, were largely steady in Asian trade on Monday. The index was trading 0.09% higher at 100.82, against Friday’s close of 100.72.
The yield on the benchmark on the 10-year US Treasury note was trading 0.73% higher at 3.74%, compared to Friday’s 3.72%.
The December contract of brent crude on International exchange rose on tension from an escalation of conflict between Israel and Hezbollah, Bloomberg reported. The prices were trading 0.59% higher at $74.93 a barrel. It settled at $74.06 a barrel on Friday.
Most Asian Markets Log Marginal Gains
Most share indices in the Asia-Pacific region were trading with marginal gains on Monday morning as concerns rose about the China’s economy. The government in China slashed spending while unemployment rate rose to the highest level this year, Bloomberg reported.
The KOSPI was trading 3.43 points or 0.13% higher at 2,596.80, and the CSI 300 was trading 13.10 points or 0.41% higher at 3,214.15 as of 08:04 a.m.
Financial markets were closed in Japan for observance of Autumnal Equinox Day.
Moreover, the People’s Bank of China cut 14-day reverse repo rate to 1.85% from 1.95%, in move to aid the economy on Monday.
GIFT Nifty Trades Above 25,800; Adani Total Gas, BHEL, Dr. Reddy’s Share Prices Likely To React
The GIFT Nifty was trading above 25,800 on Monday. Adani Total Gas Ltd., Bharat Heavy Electricals Ltd., Dr. Reddy’s Laboratories Ltd., and Tata Steel Ltd.’s share prices are likely to move during the session.
The GIFT Nifty was trading 26.50 points, or 0.10% higher at 25,860.50 as of 06:33 a.m.
Markets are gradually climbing up—a trend which Motilal Financial Services Ltd. expects to continue this week, backed by strong foreign institutional inflows, healthy domestic macroeconomic environment, and receding concern about the US economy slowing down, the brokerage said Friday.
Overseas investors bought Rs 14,064 crore worth of Indian equities on Friday, while domestic institutional investors sold Rs 4,427 crore worth of Indian equities on Friday, according to data on National Stock Exchanges.
On Friday, the NSE Nifty 50 and BSE Sensex ended at their highest closing levels buoyed by gains in Asian peers and US stocks after touching fresh highs during the session. The benchmarks also recorded gains for the second straight week, due to risk-on sentiment after the US Federal Reserve reduced benchmark rates, in line with market expectation, and guided for more cuts.
The Nifty 50 ended 375.15 points, or 1.48% higher at 25,790.95, and the Sensex was up 1,359.52 points, or 1.63% at 84,544.31.
Disclaimer: NDTV Profit is a subsidiary of AMG Media Networks Limited, an Adani Group Company.
Stock Market Today: All You Need To Know Going Into Trade On Sept. 23. Read more on Markets by NDTV Profit.The Nifty and the Sensex were trading at record highs . Catch live updates on Indian stock markets here on Monday. Read MoreMarkets, Business, Notifications
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