Wall Street remained closed on Monday for Labor Day. European stocks slumped on Monday and the euro fell as the region’s worsening energy crisis kept negative sentiments high. Asia expects to remain steady as investors assess China’s pledge of accelerated stimulus and move to support its currency.
Rupee falls 12 paise to 79.90 against US dollar in early trade
The rupee depreciated by 12 paise to 79.90 against the US dollar in opening trade on Tuesday, weighed down by strength of the American currency in the overseas market.
At the interbank foreign exchange market, the rupee opened at 79.80 against the greenback, then fell further to 79.90, registering a decline of 12 paise over its last close.
On Monday, the rupee appreciated 9 paise to close at 79.78 against the dollar.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.08% to 109.62. (PTI)
India’s future crude oil supplies will mostly come from Gulf, says oil minister
India’s minister of petroleum and natural gas, Hardeep Singh Puri, said most of his country’s crude oil supplies in the near future will come from the Gulf countries, including Saudi Arabia and Iraq, as it seeks a secure and affordable energy base.
Indian refiners have been snapping up relatively cheap Russian oil, shunned by Western companies and countries since sanctions were imposed against Moscow for what it calls a “special military operation” in Ukraine. (Full Report)
Gail shares trade ex-bonus; stock rises
Shares of GAIL (India) Ltd rose nearly a per cent to ₹92 apiece on the BSE in Tuesday’s opening deals as the stock started trading ex-bonus, a day ahead of its record date for the bonus issue of equity shares that its board had recommended in the ratio of 1:2 in July this year.
Apollo Hospitals makes early gains, adds 2%
Sensex gains 200 points at open on Tuesday and Nifty 75. DreamFolks Services will be listed in bourses today
Tamilnad Mercantile Bank IPO: GMP, subscription status on day 2 of the issue
The Initial Public Offer (IPO) of Tamilnad Mercantile Bank received 83% subscription on the first day on Monday with retail category oversubscribed. The Tuticorin-based private sector lender has fixed the price band at ₹500-525 per share and the share sale will conclude on Wednesday, September 7. The lender on Friday said it has mobilised a little over ₹363 crore from anchor investors ahead of its issue. (Full Report)
India inflation rate likely rose to 6.9% in August – Deutsche Bank
Deutsche Bank estimates that India’s consumer price index (CPI) firmed to 6.9% year-on-year in August, while core inflation likely stood at 6%.
The Asian nation will report the data next Monday.
While Brent crude oil prices have recorded a steep decline in recent weeks, the favourable impact will be less reflected in the CPI as fuel items account for a very small weight, Deutsche Bank said.
Meanwhile, the risks to food inflation persist with negative seasonality kicking in for the September-November period, the bank said. (Reuters)
Sensex is flat at preopen session with a slight tilt towards the red. DreamFolks Services is to set to debut today in the market
Ashika Stock Broking on Nifty: During the day, index is likely to open on a flat note
Tirthankar Das, Technical & Derivative Analyst, Retail, Ashika Stock Broking Ltd: On the technical front, Nifty formed a bullish candle on the daily chart however the chart structure has not witnessed any imperative changes and continues to remain rangebound. There are evidence of reversal pattern in weekly time frame hence in coming sessions, key thing to watch will be a faster retracement above August highs of 18000 that will signal end of the ongoing corrective phase. Else, prolonged consolidation in 17200-17800 range is expected to continue. On the oscillator front, the 14-period RSI has witnessed a sell crossover and presently trading below the 60-level mark. Thus, one need to avoid trading aggressively amid global nervousness. Considering the present situation, a bare minimum correction of 38.6% of the entire rally from 15,183 to 17,992 comes around 16900 followed by 50% correction at 16600. On the upside present setup indicates that Nifty can move towards 17,992 followed by 18,114 in the coming days with immediate support stands at 17,350 and Index need to sustain above the said level with some authority for the bulls to strengthen their stance. During the day index is likely to open on a flat note bit and is expected to trade in a range with positive bias, a sustainable buying could only emerge on the move above 17,800 levels.
Bond yields seen lower after RBI governor says inflation to ease
Indian government bond yields are likely to fall in early trade on Tuesday, after the Reserve Bank of India (RBI) chief said inflation is expected to ease in the second half of this financial year.
The benchmark 10-year Indian government bond yield is likely to trade in the 7.19%-7.25% band, a trader with a private bank said. The yield fell one basis point (bps) on Monday to end at 7.2182%.
“The RBI governor’s comments may release some fears of an elevated inflation and that could see the pace of future rate hikes being tapered down which could aid today,” the trader said. (Reuters)
Liz Truss prepares to take charge as new UK Prime Minister
Liz Truss, the new Conservative Party leader who beat former chancellor Rishi Sunak to replace Boris Johnson, will take charge as Britain’s new Prime Minister on Tuesday after an audience with the Queen in Scotland.
The 47-year-old foreign secretary, who follows Margaret Thatcher and Theresa May as the third female leader of the Tory party, will travel to the 96-year-old monarch’s Balmoral Castle residence in Aberdeenshire to become the first leader of the majority party to not be invited to form a government at Buckingham Palace in London.
Following her royal audience, soon after Johnson submits his resignation to Queen Elizabeth II, Truss will be flown right back to 10 Downing Street in London to deliver her inaugural speech as the Prime Minister before going on to unveil some key Cabinet posts. (PTI)
Stocks to Watch: DreamFolks, NTPC, V-Mart, Tata Consumer, Shipping Corp, Narayana Hrudayalaya, Aditya Birla Fashion, Adani, NDTV, Jubilant Foodworks,=
Delta Corp will continue to remain under the F&O ban stock list today. The stock will be under the ban for the F&O segment as it has crossed 95% of the market-wide position limit (MWPL), as per the NSE. (Full Story)
Reliance Securities Stock in Focus: Blue Star
STOCK IN FOCUS
Blue Star (CMP Rs.1,111)
With the higher earnings growth, better margin profile and improved business visibility over the medium term, we have BUY rating on BLSTR, with a Target Price of Rs1,475.
BAJAJ-AUTO (PREVIOUS CLOSE: 3957) SELL
For today’s trade, short position can be initiated in the range of ₹4000-4030 for the target of Rs.3900 with a strict stop loss of ₹4080.
IEX (PREVIOUS CLOSE: 161) BUY
For today’s trade, long position can be initiated in the range of ₹158- 159 for the target of Rs. 163 with a strict stop loss of ₹157.
INDUSINDBK (PREVIOUS CLOSE: 1108) BUY
For today’s trade, long position can be initiated in the range of ₹1090- 1100 for the target of Rs. 1130 with a strict stop loss of ₹1078.
Gautam Adani searching for new mergers and acquisitions chief: Report
Billionaire Gautam Adani is looking for a new leader for his mergers and acquisitions strategy as the incumbent chief will soon take a new role within the Group, according to a report by Bloomberg news agency. Vinod Bahety, who’s been helming Adani Enterprises Ltd.’s M&A activity, will move to a new business vertical, the agency added.
Adani Group has reached out to potential candidates for the job as Asia’s richest man is looking to expedite its dealmaking. (Full Story)
India’s coal output remains below estimate at 58 MT in August
India produced 58.33 million tonnes of coal in August, missing its target of 67.94 MT for the month, according to the government data.
The coal production target for August was 67.94 million tonnes (MT), according to the government’s monthly statistics (provisional).
However, the production during last month increased by 8.27 per cent to 58.33 MT in August from 53.88 MT in the corresponding month of previous fiscal.
Country’s coal output in the first five months of the ongoing financial year increased to 324.39 MT as against 263.97 MT in the April-August period of the previous fiscal.
The total despatch of coal also increased by 5.41 per cent to 63.43 MT in August over 60.18 MT in the year-ago month. (PTI)
BSE, NSE take step to standardise disclosures by listed entities
Leading stock exchanges BSE and NSE on Monday announced that they have taken measures for standardising the disclosures made by listed companies pertaining to the critical information for investors.
Listed firms are required to submit periodical compliance filings to stock exchanges within the prescribed timelines.
Under the measures, stock exchanges have implemented new XBRL-based compliance filing mechanism featuring identical and homogenous compliance data structures.
The move will not only ease the compliance burden on listed entities but would also enable analytics on the data submitted by them, BSE and NSE said in a joint statement. (PTI)
Telcos, gaming cos gear up for revenue boost as 5G nears
Gaming firms in India are putting in motion plans for new features and services ahead of the rollout of 5G service in the country. The sector, which includes makers of games for mobile phones and PCs, streaming firms, and even venture capital (VC) firms, considers 5G to be a possible inflection point that could spur new revenue streams.
India’s overall gaming industry clocked $1.8 bn in revenues in 2020 at a CAGR of 38%, faster than even the US and China. (Full Report)
Reliance Industries to acquire 79.4% stake in US-based SenseHawk for $32 million
Reliance Industries (RIL) on Tuesday announced that the company has entered into definitive agreements with SenseHawk Inc. (SenseHawk) for acquiring 79.4% stake of SenseHawk, through primary infusion and secondary purchase, for a total consideration of $32 million.
Founded in 2018, SenseHawk is an early-stage California-based developer of software-based management tools for the solar energy generation industry. (Full Report)
PayU Payment’s acquisition of BillDesk gets CCI nod
Competition Commission of India (CCI) on Monday granted its approval for the acquisition of 100 per cent equity of indiaideas.com (BillDesk) by PayU Payments.
The proposed combination relates to the acquisition of 100 per cent of the equity share capital of India Ideas Ltd (IIL) by PayU India.
In a tweet on Monday, CCI said it approved, “acquisition of 100% of the equity share capital of IndiaIdeas.com (BillDesk) by PayU Payments.”
In August 2021, Prosus NV-backed PayU announced that it will buy digital payments provider BillDesk for USD 4.7 billion (about ₹34,376.2 crore), making it one of the biggest deals in the Indian consumer internet space. (PTI)
European stocks fall after gas pipeline shutdown
European stock indexes fell on Monday, the euro dropped below 99 cents for the first time in twenty years and European gas prices surged after Russia said its main gas supply pipeline to Europe would stay shut.
Gas deliveries had been due to resume on Saturday, but Russia scrapped that deadline on Friday and did not give a new timeframe for re-opening. The news stoked fears of a recession in Europe, with businesses and households hurt by sky-high energy prices.
European gas prices jumped as much as 30% as the market opened. (Reuters)
NBFC, banks to sell bonds worth more than ₹30,000 crore this week
Bonds worth over ₹30,000 crore issued by banks and non- banking financial companies (NBFCs) are set to hit the market later this week, as they seek to raise funds at lower interest rates ahead of a possible rate hike this month, according to two investment bankers.
HDFC will issue 10-year NCDs worth ₹10,000 crore and HDFC Bank will float AT1 bonds worth ₹3,000 crore. (Read More)
Markets extremely volatile and uncertain since Jackson Hole summit: RBI Governor Das
Since Federal Reserve Chairman Jerome Powell’s remarks during the Jackson Hole Economic Policy Symposium 2022, stock markets have become extremely volatile and uncertain, said Reserve Bank of India (RBI) Governor Shaktikanta Das on Monday.
Going forward, monetary policy will remain watchful, nimble-footed and calibrated, RBI Governor Shaktikanta Das said. (Full Story)
Dreamfolks Services to list on Tuesday. What should investors know
The country’s largest airport service aggregator platform, DreamFolks Services to make its debut on Tuesday on stock exchanges. The company launched its nearly Rs562 crore initial public offering (IPO) from August 24 to August 26 and received strong demand across investor categories. The IPO had subscribed by 56.68 times. Currently, DreamFolks IPO grey market premium (GMP) is around ₹105.
DreamFolks Services is a dominant player and India’s largest airport service aggregator platform facilitating an enhanced airport experience to passengers leveraging a technology-driven platform. (Full Report)
Oil up nearly 3% as OPEC+ agrees to small oil output cut
Oil prices rose about 3% on Monday, as OPEC+ members agreed to a small production cut of 100,000 barrels per day to bolster prices.
Brent crude futures for November delivery settled $2.72 higher at $95.74 a barrel, a 2.92% gain.
Prices had climbed nearly $4 earlier in the session, but were tamed by comments from the White House that U.S. President Joe Biden was committed to taking all steps necessary to shore up energy supplies and lower prices.
U.S. crude rose $2 to $88.85 per barrel, a 2.3% rise after a 0.3% gain in the previous session, in thin volumes during the U.S. Labor Day holiday. (Reuters)
Stocks set for steady Asia open; crude oil jumps: Bloomberg
Stocks look set for a steady start in Asia on Tuesday as investors assess China’s pledge of accelerated stimulus and move to support the yuan. The first OPEC+ supply cut in over a year bolstered crude oil.
Futures were little changed for Japan and edged up for Australia and Hong Kong. US contracts rose ahead of the resumption of Wall Street trading after a holiday. European stocks fell due to a deepening energy crisis.
China on Monday announced a cut in the amount of foreign-exchange deposits banks must set aside as reserves, a move to aid the nation’s currency after it slid to a two-year low. The offshore yuan was little changed in early trading.
Crude oil traded around $89 a barrel after OPEC+ agreed to cut 100,000 barrels a day in October. The decision comes amid risks to demand from a wave of monetary tightening in the US, Europe and Asia-Pacific to fight high inflation.
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