PremiumShare Market Today: Sensex and Nifty climbed to record highs on Thursday but pared most of the gains in the second half. Sensex crossed the psychological mark of 66,000, while Nifty went above 19,500.
Investor sentiment improved amidst encouraging inflation data from the US which investors believe will give Fed more incentives to hit a pause on future rate hikes.
Asian markets leapt Thursday on optimism that the Federal Reserve's long-running campaign of interest rate hikes could be near an end after data showed US inflation rose less than expected last month.
Wall Street cheered the latest figures Wednesday. Asia happily picked up the baton, with Hong Kong up more than two per cent while Tokyo, Shanghai, Sydney, Seoul, Singapore and Manila were all up more than one per cent. Mumbai, Bangkok and Wellington were also higher.
Paris extended its rally at the open, while London and Frankfurt were flat.
Indian shares soared to new highs in the first half on Thursday but pared most of the gain in the second half to end marginally higher. The rally in Indian indices was following a rally in global markets amid moderating US CPI inflation data.
The 30-share BSE Sensex climbed 165 points to end at 65,559. The NSE Nifty went up by 30 points to close at 19,413.
Both benchmark indices hit their respective all-time high levels. The Sensex hit its lifetime high of 66,064 and the Nifty reached all-time peak of 19,567. However, Bank and Auto stocks dragged in the second half and ensured that the overall gains remain marginal. IT and Realty indices ended with a gain of more than a per cent.
IT stocks like Infosys and TCS led the stock rally along with Bajaj Finance, Hindalco, and LTIMindtree. Powergrid shed 3.5% and was the biggest dropper. Coal India, UPL, and Maruti Suzuki were other major laggards.
Global stocks traded around their highs for the year on Thursday as investors bet that the Federal Reserve was finally taming inflation and could end its rate hiking cycle as soon as this month.
Japan's Nikkei share average posted its biggest jump in nearly two weeks on Thursday, boosted by heavyweight chip-related stocks. The Nikkei index ended up 1.49%, its biggest one-day jump since July 3. The index had hit a one-month low on Wednesday. The broader Topix gained 0.97%.
China and Hong Kong stocks jumped on Thursday, led by tech giants, after authorities sent another strong signal that a years-long crackdown on its tech industry is over, and lower-than-expected U.S. inflation data also boosted sentiment.
China's blue-chip CSI 300 Index rose 1.4%, logging its biggest daily rise in nearly one month, while the Shanghai Composite Index added 1.3% at close. Hong Kong's Hang Seng Index and the Hang Seng China Enterprises Index both climbed 2.6%.
European stocks extended gains to a fifth day, driven by tech and luxury stocks, as consumer price data in the US fueled optimism that the Federal Reserve is nearing its peak rate hikes.
UK's FTSE 100 gained as energy and mining stocks advanced, tracking higher commodity prices, while Barratt Developments tumbled after the homebuilder warned it would build about 20% fewer homes in 2024.
Following the allotment of shares, market participants and observers are eagerly awaiting the listing date of the Senco Gold IPO, which is expected to be on July 14, 2023. Lucky allottees and market observers are currently examining the company's balance sheet and its performance in the unlisted stock market to gauge potential clues about the listing price of the Senco Gold IPO.
According to market observers, shares of Senco Gold Ltd are currently trading at a premium of ₹128 per equity share in the grey market. (Read More)
A report by McKinsey Global Institute has said that remote work risks wiping $800 billion from the value of office buildings in major cities, highlighting the potential losses that landlords are facing from post-pandemic changes in employment trends.
As per the report, Covid-19’s push toward hybrid work has driven the need for office space down with vacancy rates rising. The report by McKinsey modeled the impact on valuations by 2030 in nine cities globally.
The estimate for $800 billion in valuation losses represents a 26 percent decline compared to levels in 2019, with the blow at risk of deepening to as much as 42 percent, the consultancy firm said. (Read More)
Edtech major Byju’s has appointed Arjun Mohan as the chief executive of its international business, said two people with knowledge of the development.
Mohan's appointment comes at a time when the company is battling issues on multiple fronts, ranging from exits of board members and auditors to court cases filed by its bondholders globally,
For more than a decade Mohan was the chief business office with Byju's before joining UpGrad as its chief investment officer in 2020. He quit UpGrad in December 2022. (Read More)
China and Hong Kong stocks jumped on Thursday, led by tech giants, after authorities sent another strong signal that a years-long crackdown on its tech industry is over, and lower-than-expected U.S. inflation data also boosted sentiment.
** China's blue-chip CSI 300 Index rose 1.4%, logging its biggest daily rise in nearly one month, while the Shanghai Composite Index added 1.3% at close.
** Hong Kong's Hang Seng Index and the Hang Seng China Enterprises Index both climbed 2.6%.
** Other Asian shares and bonds also rallied, while the dollar nursed heavy losses as a surprisingly low reading on U.S. inflation stoked speculation the end of the post-pandemic tightening cycle is in sight. (Reuters)
According to reports, Dassault Aviation, the French company, is reportedly planning to dissolve its joint venture (JV) with Reliance Aerostructure Ltd, owned by Anil Ambani. The JV, known as Dassault Reliance Aerostructure Ltd (DRAL), is expected to be dissolved due to Ambani's alleged inability to meet the investment requirements necessary to sustain the partnership. These reports suggest that Dassault has made the decision to withdraw from the venture. (Read More)
In a regulatory filing on Thursday, Larsen & Toubro (L&T) announced its contribution to India's moon mission, Chandrayaan-3. The company disclosed that it has supplied several components for the mission.
In a regulatory filing, the company said components like "middle segment and nozzle bucket flange" were manufactured at its facility in Powai, while components like ground and flight umbilical plates were from the company's aerospace manufacturing facility at Coimbatore. (PTI)
JPMorgan is positive about HDFC Bank stock after the merger of HDFC twins as the global financial firm recently assigned an 'overweight' rating on the stock, pegging the target price at ₹2,000, citing the merger of HDFC with HDFC Bank is positive from a medium-term perspective.
"Following a period of restriction, we are moving to an 'overweight' rating and a March 2024 target price of ₹2,000 from a 'not rated' designation. We believe the merger with parent HDFC is positive from a medium-term perspective, given the opportunity for liability refinancing, cross-sell, addition of book duration and lower share of unsecured loans," said JPMorgan in a report on July 11. (Read More)
During Thursday's trading session on the Bombay Stock Exchange (BSE), the share price of Zomato experienced a significant surge, increasing over 9% to reach a new 52-week high at ₹84.50. Analysts suggest that the stock has been delivering consistent returns over the past few months and is currently undergoing a multi-month breakout with substantial trading volumes. Zomato shares opened at ₹77.80 per share.
Brokerages anticipate new-age internet companies to report decent revenue growth and improved operational performance as we start the Q1FY24 earnings season. One of ICICI Securities' top recommendations is Zomato. (Read More)
According to reliable sources cited by Business Today, Navi Technologies, a non-banking financial company (NBFC) startup founded by Sachin Bansal, the co-founder of Flipkart, has recently implemented a workforce reduction. This has resulted in the termination of more than 250 employees, which accounts for around 20% of its total workforce.
It's important to note that LiveMint has not independently verified this report.
One of the affected employees, who was subjected to the layoffs, shared, "I had been a member of their tech team for more than a year. They terminated my employment on Tuesday, and I did not receive any severance pay, presumably due to a new HR policy." (Read More)
India is considering a potential ban on the export of several varieties of rice, a move that could have significant implications for global rice prices. This proposal comes at a time when the El Niño weather phenomenon is causing disruptions, further exacerbating the situation. It's worth noting that India is currently the world's largest exporter of rice.
According to undisclosed sources cited by Bloomberg, government officials are currently in discussions regarding a plan to restrict the export of non-Basmati rice. However, LiveMint has not independently verified this report.
The motive behind this proposal, as shared by these anonymous insiders, is to manage the risk of increased inflation in light of upcoming elections. (Read More)
The microblogging site Twitter on Wednesday was hit with a lawsuit accusing it of refusing to pay at least $500 million in promised severance to thousands of employees who were sacked in the layoff drive, according to a report published by Reuters.
Courtney McMillian oversaw Twitter's employee benefits programs as its "head of total rewards" before she was laid off in January. She filed the proposed class action in San Francisco federal court.
Under a severance plan created by Twitter in 2019, McMillian claims most workers promised two months of their base pay plus one week of pay for each full year of service if they were laid off, McMillian claims in the lawsuit. (Read More)
Higher-end passenger vehicles (PVs) will likely see price hikes following changes in taxation rules by the GST Council, which has modified the definition of vehicles that will attract a compensation cess of 22%, additional to the 28% tax rate.
As per the new definition, a vehicle will qualify as a utility vehicle, thus attracting a 22% cess, if it satisfies certain criteria: a length exceeding four mtr, an engine capacity of 1500cc or more, and an unladen ground clearance of 170mm or above. In the previous rule, a vehicle was recognized as an SUV, if it was popularly known as such, and the ground clearance measurement was taken with passenger weight. However, this condition has been eliminated in the revised guidelines. (Read More)
Go First flights have been cancelled until July 16. “We apologise for the inconvenience caused," said the airline while asking the customers to check its official policy on filing a claim for more information.
“For any queries or concerns, please feel free to contact us," it said.
“We acknowledge the flight cancellations might have disrupted your travel plans and we are committed to providing all the assistance we can," the airline added. (Read More)
On Wednesday, HCL Technologies announced through an exchange filing that it has entered into an agreement to acquire a 100% stake in ASAP Group, a German automotive engineering services company. The acquisition is valued at EUR 251.1 million (approximately ₹2,300 crore).
According to the company's filing, the transaction is expected to be finalized by September 2023. It will be an all-cash deal conducted through HCL's UK subsidiary, subject to regulatory approvals.
HCL Technologies aims to enhance its expertise in the automotive engineering services sector, particularly in e-mobility, autonomous driving, and connectivity in Europe, Germany, and other international markets. (Read More)
Netweb Technologies India, a computing solutions provider, is set to launch its initial public offering (IPO) on July 17. The company has revealed a price band of ₹475-500 per share for its upcoming public issue.
The Netweb Technologies IPO will be open for subscription until July 19. It comprises a fresh issue of shares valued at ₹206 crore, along with an offer-for-sale of up to 85 lakh shares by its existing promoters and shareholders.
With the upper band price, the company aims to raise approximately ₹631 crore through the IPO. (Read More)
On Thursday, the share price of Patanjali Foods experienced a 5% lower circuit, reaching ₹1,166.65. This decline followed the company's launch of an offer for sale (OFS) at a floor price of ₹1,000 per share. Notably, this floor price represents a significant discount of approximately 19% compared to Wednesday's closing price of ₹1,228.05.
Patanjali Ayurved, led by yoga guru Baba Ramdev, serves as the promoter entity for Patanjali Foods. As part of the OFS, the company plans to offload 2.53 crore shares over a two-day period. The offer opened for non-retail investors on July 13, with retail investors being able to participate starting on July 14. (Read More)
Vedanta Group Chairman Anil Agarwal on Thursday said that the company is 100% committed to producing semiconductors for which it has lined up partners. He calls India a ‘land of opportunities' with huge potential.
In a long tweet, Agarwal said, “We are 100% committed to produce semiconductors and display glass in India and have lined up partners for the same."
“India is a land of opportunities with huge potential. We need several ventures to help India become a semiconductor and display glass hub. We welcome Foxconn and the whole world to come and invest in this sector," Agarwal said. (Read More)
Swiggy, the online food delivery startup, announced on Thursday its acquisition of LYNK Logistics Ltd, a technology-driven FMCG retail distribution company. This strategic move signifies Swiggy's entry into the food and grocery retail market.
Although the financial details of the deal were not disclosed, Avendus Capital served as the exclusive financial advisor to LYNK and its shareholders throughout this transaction.
“LYNK will continue to operate as an independent business post the acquisition led by cofounder and CEO Shekhar Bhende," the company said in a statement. (Read More)
Colin Shah, Managing Director, Kama Jewelry on amendments in gold import policy: The government has curbed imports of gold with specific riders. Imports of gold affect the trade deficit negatively. The latest trade at $22 bn was the highest in 5 months. The reduced gold imports will help balance the same. Heavy gold imports also impact the INR. Gold imports from UAE are allowed under CEPA to boost trade relations under the pact. Imports from UAE have been dismal despite the pact. Though the steps by the government is to balance the macroeconomics, gold as a raw material should be available at reasonable prices for the Gems & Jewelry industry to maintain the competitive edge for exports.
On Thursday's trading session, SpiceJet's share price experienced a surge of over 5% in response to the announcement that the airline's promoter, Ajay Singh, has offered to infuse ₹500 crore into the company to enhance its financial position. SpiceJet shares opened at ₹33 per share on the Bombay Stock Exchange (BSE).
In an exchange filing made on Wednesday, the company disclosed that its board had explored various options to raise new capital. To bolster the company's financial status, promoter Ajay Singh proposed an investment of ₹500 crore through subscription to equity shares and/or convertible securities/equity share warrants on a preferential basis, in line with SEBI regulations. (Read More)
Synoptics Technologies Ltd shares debuted flat at ₹238 on the NSE SME (Small and Medium Enterprises) platform on Thursday. The company's initial public offering (IPO) opened for public subscription on June 30 and closed on July 5.
During the subscription period, the SME IPO of Synoptics Technologies Ltd was subscribed 2.66 times by investors. Retail investors showed a positive response, with their portion being subscribed 2.54 times. Non-institutional bidders (NII) also displayed interest, with their portion being subscribed 2.58 times. This information is based on data from chittorgarh.com. (Read More)
Servotech Power Systems Ltd has emerged as one of the multibagger stocks in the Indian stock market in recent years. This small-cap stock has experienced a significant surge from around ₹5 to ₹165.75 per share, marking an impressive rise of nearly 3200% over the past two years.
In addition to this remarkable performance, the company's board of directors has announced a stock split in a 1:2 ratio, which means that each existing share will be split into two shares. This move aims to enhance liquidity and affordability for investors.
To determine eligible shareholders for the stock split benefit, the board has set a record date of July 28, 2023. On this date, the company will finalize the list of shareholders who will be eligible to receive the additional shares resulting from the stock split. (Read More)
Madhavi Arora, Lead Economist, Emkay Global Financial Services: The sharp sequential uptick in food-led Inflation could spill over till August, implying pressure on headline print will stay. There isn't much RBI can do in the food supply management but this adds pressure on them to stay vigilant on domestic dynamics. Global externalities have already pressed them to signal a wait-and-watch guidance and the transient food spike will only complicate their reaction function.
Raghvendra Nath, MD, Ladderup Wealth Management Pvt. Ltd: In June, India experienced a surge in retail inflation, with the CPI rising to 4.81%, breaking a four-month trend of decline following May's rate of 4.31%. The primary driver behind this inflationary spike can be attributed to an increase in food prices. Notably, the provisional figure of 4.88% exceeded the market expectation of 4.60% as per the Bloomberg Survey.
Although the inflation rate remains below the upper threshold of the Reserve Bank of India's (RBI) target of 6%, the upward trend raises cautionary flags regarding the potential impact of the monsoon season and El-Nino, as well as its implications for the timing and anticipation of interest rate cuts by the central bank.
Vivek Rathi, Director Research, Knight Frank India: The overall low inflation level supports the argument for maintaining key policy rates in the upcoming RBI policy meeting. Considering that homebuyers have been hoping for a reversal in the interest rate cycle sooner, the interim rise in inflation can delay rate cuts. However, with the inflation level remaining within the RBI tolerance band of 2-6%, inflation is not the biggest worry for the Indian economy. Stable policy environment, a strengthening supply side and consumer enthusiasm will remain the key catalysts driving the housing market.
Average industrial production growth in the last year has surpassed the pre-pandemic average growth thus hinting at stronger revival in the Indian economy post-pandemic. Infrastructure and construction goods output has continuously grown in the last few months, reflecting an expanding infra and real estate sector in the country. The infra push by the government along with the growing demand for real estate in India will further boost the segment."
On Thursday, the Indian rupee started the day with a 29 paise gain against the US dollar, benefiting from a weakened greenback. The optimism stemmed from expectations that the cooling inflation in the United States would prompt the Federal Reserve to pause interest rate hikes in the near future. The rupee opened at 81.95 against the dollar, compared to the previous close of 82.24.
The decline in the US dollar was evident in the dollar index, which dropped to its lowest level in over a year. Concurrently, US yields also decreased following the release of data indicating that US inflation had slowed at a faster-than-anticipated rate. The dollar index reached as low as 100.54, marking its lowest point since April 2022. (Read More)
Wipro Ltd is scheduled to announce its Q1 results for the financial year 2023-24. Along with Wipro, there are several other companies expected to declare their Q1 results as well, including Federal Bank, Angel One, Bhansali Engineering, Sterling Wilson, Tata Metaliks, Unitech, and more. Investors and market participants should remain vigilant about these upcoming announcements as they can have an impact on the stock market and investor sentiment. It is always important to stay informed about the latest financial results and market developments. (Read More)
Travel services provider Thomas Cook India on Wednesday said its UAE subsidiary DEI Holdings Limited has acquired a 50 per cent stake in 500 FT SPV Limited.
Thomas Cook India did not divulge details of the quantum of investment made by DEI Holdings in 500 FT SPV Limited, a UAE-incorporated firm.
DEI Holdings Limited (DEI), a 51 per cent step-down subsidiary of the company in UAE, has invested into "500 FT SPV Limited," a company incorporated in the UAE. Post the investment, DEI owns 50 per cent stake in 500 FT SPV Limited, Thomas Cook India informed the BSE in a regulatory filing. (PTI)
IT giants TCS and HCL Tech fell short of the Street's expectations for the first quarter earnings (Q1FY24). TCS saw the slowest start to a fiscal year since it went public in 2004. As Mint reported, before Q1FY24, TCS’s slowest growth at the start of the fiscal year was in the first quarter of 2008, when the global financial crisis sent banks into turmoil, eventually hurting IT services firms like TCS, which expanded its sequential revenue by 0.5 per cent.
HCL Tech's earnings failed to meet the expectations of the company as well as of the Street.
Commenting on the results, chief executive C. Vijayakumar said while Q1 is typically a soft quarter for the company with productivity benefits for a large number of contracts kicking in during the quarter, the performance has been “lower than our own expectations". (Read More)
TCS reports a 16.84% YoY rise in Q1 net profit, HCL Tech's net profit rises 7.6% YoY, HDFC Bank delists from the stock market, Vedanta plans semiconductor ventures with new partners, Hindalco to sell the land parcel for ₹595 crore, SpiceJet promoter to infuse ₹500 crore, Wipro to invest $1 billion in AI, Patanjali Foods to divest stake for ₹2,533.9 crore, Thomas Cook India acquires 50% stake in 500 FT SPV, PFC files draft prospectus to raise ₹10,000 crore. (Read More)
According to individuals familiar with the matter, Tesla has been in talks with officials from the Indian government to discuss the possibility of establishing its auto parts and electronics chain in India. These discussions also involve exploring incentives and tax benefits for the company. The reported talks suggest a renewed interest from Tesla in India, which comes after Prime Minister Narendra Modi's meeting with Tesla CEO Elon Musk during his recent visit to the United States, as mentioned by the sources. The engagement with the Indian government indicates a potential move by Tesla to expand its presence in the Indian market. (Read More)
Vaishali Parekh or Prabhudas Lilladher has recommended three intraday stocks for today. Here we list out full details in regard to those day trading stocks:
1] Zensar Tech: Buy at ₹396.40, target ₹414, stop loss ₹390;
2] Syngene International: Buy at ₹780, target ₹811, stop loss ₹768; and
3] VRL Logistics: Buy at ₹736, target ₹764, stop loss ₹722. (Read More)
Housing Development Finance Corp., India’s largest mortgage lender, took its last bow from the stock market on Wednesday with a record high volume of ₹11,567.44 crore and the highest-ever deliverable quantity of 33.8 million shares, indicating that investors and traders took delivery ahead of the record date on 13 July to be eligible for receiving the merged HDFC Bank shares.
In addition to fresh buying, those holding derivatives positions on NSE would have also opted for delivery as all derivatives contracts remaining open by the end of trade on 12 July would result in compulsory delivery, given the attractive swap ratio, said analysts. This enabled the HDFC share to top the list of 25 most traded shares on Wednesday on the NSE. (Read More)
HCL Technologies Ltd, the third-largest software services exporter in India, announced on Wednesday a 7.6% increase in net profit for the fiscal first quarter, reaching ₹3,534 crore compared to the same period last year.
During the June quarter, the company recorded rupee revenues of ₹26,296 crore, reflecting a 12.1% year-on-year growth but a 1.2% sequential decline. In constant currency (CC) terms, revenues grew by 6.3% compared to the previous year.
The reported earnings fell short of both the company's expectations and the market's expectations. (Read More)
Patanjali Foods Ltd, a company specializing in food and ayurvedic products, announced on Wednesday that its primary promoter, Patanjali Ayurved Ltd, is planning to divest a minimum of 7% stake for ₹2,533.9 crore through an offer-for-sale (OFS) on exchanges.
The purpose of the OFS is to ensure compliance with the minimum public shareholding guidelines set by the Securities and Exchange Board of India (Sebi). According to the exchange filing, the OFS will involve the sale of 25.3 million shares at a price of ₹1,000 per share by Patanjali Ayurved. The subscription for the OFS will commence on Thursday and conclude on Friday. Retail investors will be able to place their bids on July 14. (Read More)
On Wednesday, SpiceJet, a low-cost carrier, announced that its promoter, Ajay Singh, will inject ₹500 crore ($60.85 million) into the company to enhance its financial stability. This fresh equity infusion will enable the airline to access additional credit facilities worth ₹206 crore under the Emergency Credit Line Guarantee Scheme (ECLGS), as stated by the company in a statement.
“The infusion of fresh capital will substantially strengthen the company’s financial position and is a powerful vote of confidence in its future and long-term viability. It marks a pivotal moment in SpiceJet’s journey towards sustained growth and long-term success," Spicejet said in a statement. (Read More)
Tata Consultancy Services (TCS) Ltd, a prominent IT services company, announced a 16.84% year-on-year increase in its consolidated net profit (attributable to shareholders of the company) for the first quarter of the fiscal year ending in June (Q1FY24), reaching ₹11,074 crore. In the same period of the previous year, the company had reported a profit of ₹9,478 crore. However, sequentially, the consolidated net profit saw a decline of 2.8%. On the Bombay Stock Exchange (BSE), TCS shares closed at ₹3,260.20 per share, experiencing a decrease of 0.36%.
During the quarter ending in June, the company's consolidated revenue from operations amounted to ₹59,381 crore, compared to ₹52,758 crore in Q1FY23, representing a year-on-year increase. Sequentially, the revenue rose by 0.4% from ₹59,162 crore in Q4FY23. (Read More)
In June 2023, India experienced a rise in retail inflation to 4.81%, marking the first increase in five months. This higher inflation rate diminishes the possibility of a rate cut by the Reserve Bank of India this year. The retail inflation figure exceeded both the revised 4.31% from the previous month and the 4.58% expected by a Reuters poll of 55 economists.
In addition to retail inflation, food inflation also saw a significant surge to 4.49%, compared to a revised 2.96% in May. Experts attribute the inflationary rise to erratic and incessant rainfall in northern India, which may have driven up vegetable prices. They predict a further increase in the coming months. (Read More)
Wall Street stocks advanced on Wednesday and the dollar and Treasury yields fell after new U.S. inflation data showed a slowdown in the seemingly relentless rise of consumer prices.
The Consumer Price Index (CPI) gained just 0.2% last month, the Labor Department said on Wednesday, lifted by rises in gasoline prices as well as rents, which offset a decrease in prices of used motor vehicles. CPI advanced 3.0% in the 12 months through June, down from 4.0% in May and the smallest year-on-year increase since March 2021.
Wall Street cheered the news, sending stocks up. The Dow Jones Industrial Average rose 0.26%, the S&P 500 gained 0.75% and the Nasdaq Composite added 1.15%. Shares of big tech-related companies, which tend to be sensitive to higher interest rates, gave the S&P 500 its biggest boost.
The currency market moved on the CPI news, too. The dollar index declined 1.18% to $100.536, near its lowest point in a year. (Reuters)
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