PremiumShare Market Today: The domestic market stayed ended in the red amidst negative global cues on Friday. Most sectors ended in the red. Tata Motors and Titan jumped, while Adani Ports and Powergriid stocks dragged the market.
Shares of IdeaForge Technology Ltd listed on the bourses at a premium on Friday. On the NSE, the stock was listed at ₹1,300 per share, 93.5% higher than the issue price, and on the BSE, the stock was listed at ₹1,305.10 per share.
Asian equities declined after data showed a rise in the U.S. private payrolls, stoking fresh fears of a prolonged high-interest regime and triggering a spike in bond yields across the world. Wall Street equities closed lower overnight.
Indian shares slid on Friday after rising to new record highs in the first hour of the trading session, tracking a fall in Asian peers ahead of US jobs data and on concerns of further monetary policy tightening by the U.S. Federal Reserve.
The Nifty 50 index was down 165 pts to close at 19,331, while the S&P BSE Sensex fell 500 pts to close at 65,280. Despite today's fall, both indices notched marginal gains during this trading week.
Twelve of the 15 major Nifty sectoral indices logged losses, with the high-weightage IT and banks losing around a per cent each.
Two Tata stocks ended among the biggest gainers - Tata Motors and Titan. M&M, Cipla and SBI Life were other major climbers on Friday. Adani Ports, Powergrid, Apollo Hospitals, and IndusInd Bank shed more than 2% each.
Among sectoral indices, Media climbed around 4% and PSU Bank around a per cent and were among the few indices to end in the green. FMCG, Pvt Bank, Realty, Pharma, Healthcare, and Metal ended deep in the red in today's session.
Asian equities declined after data showed a rise in the U.S. private payrolls, stoking fresh fears of a prolonged high-interest regime and triggering a spike in bond yields across the world. Wall Street equities closed lower overnight.
Japan's Nikkei share average fell for a fourth consecutive day, tracking overnight declines in U.S. stocks after strong labour market data fuelled speculation the Federal Reserve will become more aggressive in fighting inflation.
The Nikkei ended the day down 1.17% after accelerating declines in the final half hour of trade. The Nikkei has fallen 2.41% this week, after closing at a 33-year high on Monday. Since mid-March, it has rallied nearly 27%.
China stocks ended lower, dragged down by computer and semiconductor companies, as cautious investors awaited further economic stimulus from Beijing and signs that could affect Sino-U.S. relations.
China's blue-chip CSI300 Index closed down 0.4%, while the Shanghai Composite Index lost 0.3%. Hong Kong benchmark Hang Seng Index was down 0.9%. For the week, CSI300 edged down 0.4% and Hang Seng Index fell 2.9%.
European shares fell slightly on Friday, trading at their lowest levels in more than three months, as investors await key US jobs data that may provide more clues on the trajectory of interest rates.
UK's FTSE 100 opened lower on Friday ahead of a crucial U.S. jobs data, as global sentiment remained trepid on the prospect of more rate hikes from the Federal Reserve, while shares of Coca Cola HBC jumped after the bottler raised its profit outlook.
The Supreme Court on Friday directed low-cost carrier SpiceJet to pay the entire arbitration award of ₹380 crore to the airline's former promoter Kalanithi Maran in a seven-year-old share transfer dispute.
In June, the Delhi High Court had ordered the airline to pay ₹380 crore to Maran of the Sun Group. The court had also directed the airline to furnish details of its assets within four weeks. (Read More)
The Securities and Exchange Board of India (SEBI), the market regulator, has introduced regulations to address the issue of multiple filings of the same document by debt securities issuers. These regulations aim to simplify the process and enhance the ease of doing business for issuers.
Under the new rules, the concept of General Information Document (GID) and Important Information Document (IID) is introduced. During the initial offering, issuers will submit a General Information Document to the stock exchanges. This document will contain the necessary details and disclosures as per the common schedule specified by SEBI. (Read More)
After a positive response from investors, the allotment status of the Cyient DLM Ltd IPO has been announced. Bidders are now eagerly awaiting the IPO listing date, which is expected to be on Monday, June 10, 2023.
According to market observers, Cyient DLM shares are trading at a premium of ₹130 in grey market today, which means Cyient DLM IPO grey market premium GMP) today is ₹130, which is ₹5 higher from its closed price on Thursday. (Read More)
According to FMCG sector analysts, the sales growth of consumer goods companies is anticipated to moderate to a single-digit figure. This shift is attributed to a transition from a pricing-led growth model to one driven by volume. While exact figures vary, the overall expectation is that net profit for consumer goods companies will increase by approximately 19-20% year-on-year (YoY). This growth is primarily driven by the softening of input costs. Additionally, analysts predict that the growth in EBITDA (earnings before interest, taxes, depreciation, and amortization) is likely to be around 17-18% YoY.
“The urban market continues to lead growth while rural is also showing signs of improvement in demand both sequentially and yearly, as companies have started to pass on the benefits of lower commodity costs to consumers," said brokerage firm Motilal Oswal Financial Services. (Read More)
The ₹500 crore initial public offering (IPO) of the Varanasi-based Utkarsh Small Finance Bank will open for subscription on Wednesday, July 12 and end on Friday, July 14. On Tuesday, July 11, the anchor investors' auction will begin.
On Wednesday, July 19, the allotment will take place and on Thursday, July 20, the shares will be credited to the allottees' demat accounts. On Monday, July 24, the stock is scheduled to begin trading on exchanges. (Read More)
Alibaba Group Holdings Ltd announced on Friday an artificial intelligence (AI) image generator, initially available to enterprise customers in beta form, as it ramps up its offerings in the fast-growing AI sector.
The image generator, Tongyi Wanxiang, will compete with OpenAI's DALL-E and Midjourney Inc's Midjourney, U.S.-based rivals that have gained a large following worldwide.
Alibaba Cloud, recently formed from a massive overhaul that split the Chinese tech major into six units, has also released a ChatGPT-like text generator, Tongyi Qianwen, which was launched in April.
Top brokerage firms are positive about the Q1FY24 numbers of India Inc. as the brokerage firm Motilal Oswal Financial Services (MOFSL) expects Nifty earnings to grow 25 per cent year-on-year (YoY) in Q1FY24 while earnings of its coverage universe may jump 49 per cent YoY.
Motilal Oswal said OMC’s (oil marketing companies) profitability may surge to ₹40,500 crore in Q1FY24 from a loss of ₹18,500 crore in Q1FY23 owing to strong marketing margins. Excluding OMC, MOFSL and Nifty’s earnings should rise 12 per cent and 11 per cent YoY, respectively, for the quarter. (Read More)
Polymer-based profiles manufacturer Kaka Industries is looking to raise ₹21.23 crore through its initial share sale offer that opens for public subscription on July 10.
The initial public offering (IPO) is scheduled to conclude on July 12.
The shares of the company will be listed on BSE SME, a platform for small and medium enterprises, the company said in a statement. (ANI)
Popular vehicles like Marutis – the “people’s car" – are also bellwethers for consumption. Maruti holds a roughly 40% marketshare across all four-wheel vehicles and more than 50% in the economy segment. If sales are strong, that’s an indication the middle class is doing well.
The four-wheeler sector has started seeing growth in volumes, especially in the crucial economy segment. MSIL could be a big beneficiary. (Read More)
India's demand for Airbus orders sharply increased in June this year, leading the European planemaker with 1,044 net orders in the first half of the year, the official data showed on Friday.
Last month, Airbus officially booked orders for 500 jets from budget carrier IndiGo and 250 from Air India that were announced or finalized at last month's Paris Airshow, according to a report published by Reuters. (Read More)
According to a report, Blume Ventures, one of the prominent venture capital firms, has become cautious and reduced its investments in the wake of recent crises faced by Indian startups, including Byju's.
Blume Ventures manages a portfolio of $625 million, which includes companies like Unacademy, Dunzo, and Cashify, among others. The firm's co-founder, Karthik Reddy, mentioned in an interview that they are now being more selective in their investments and are prioritizing profitability. He further emphasized the need for portfolio companies to shift their focus towards achieving sustainable profitability rather than pursuing "frivolous" investments. (Read More)
India’s year-old campaign to boost the rupee’s role in cross-border payments has made little headway, according to people familiar with the matter, underscoring the challenges for countries trying to reduce their dependence on the dollar.
The Reserve Bank of India has allowed more than a dozen banks to settle trades in rupees with 18 countries since last year and is encouraging big oil exporters such as the UAE and Saudi Arabia to South Asian nations to accept the Indian currency for trade settlements.
But success has been elusive so far with total local currency trade volumes negligible at around 10 billion rupees ($120 million) since the project started, according to people familiar with the matter, who didn’t want to be named as the figures aren’t public. That compares with India’s total goods trade of $1.2 trillion in the last fiscal year.
During his visit to Zanzibar and while addressing the Indian community in Dar-es-Salaam, Tanzania, External Affairs Minister S Jaishankar made veiled comments alluding to China. He highlighted that unlike certain other countries, India does not operate as an "extractive economy" and does not engage in "narrow economic activities" in Africa, a resource-rich continent.
The remarks by Jaishankar indicate India's approach in its engagements with African nations, emphasizing a commitment to mutually beneficial partnerships rather than pursuing economic activities solely for resource extraction.
With the surge in tomato prices McDonalds in Delhi has issued a notice stating that it would not be able to serve its products with tomatoes due to quality issues arising in obtaining tomatoes.
The surge in vegetable prices can be attributed to a combination of factors, including the prevailing heatwave in key tomato-growing areas and heavy rainfall, which has disrupted the supply chains. Additionally, tomatoes have a relatively shorter shelf life, further impacting their prices. (Read More)
After reaching a lifetime low of ₹438.35 per share on the NSE on November 24, 2022, the share price of Paytm experienced a significant recovery. Over the past seven months, Paytm shares have surged to around ₹860 apiece, marking an increase of nearly 100%. In the year-to-date period, the stock has delivered over a 60% return, rising from approximately ₹530 to ₹860 per share in 2023.
The strong rebound in Paytm's share price has attracted the attention of prominent brokerages such as Morgan Stanley, Bank of America (BofA), and Citi. These brokerages have provided positive reviews and designated Paytm as a 'stock to buy.' Citi, in particular, has raised its long-term price target for Paytm shares to ₹1160 per share. (Read More)
Oil prices rose on Friday and were on track for their second straight weekly gain, as resilient demand resulted in a larger-than-expected fall in U.S. oil stocks, offsetting fears of higher U.S. interest rates.
Brent crude futures were up 45 cents, or 0.6%, at $76.97 a barrel at 0615 GMT, while U.S. West Texas Intermediate crude gained 44 cents, also 0.6%, to $72.24 a barrel.
Both benchmarks were set to gain about 2% for the second straight week.
FSN E-Commerce Ventures, the parent company of Nykaa, a popular online clothing and cosmetics retailer, has provided a business update for the first quarter of fiscal year 2024. The company expects its consolidated revenue for this quarter to grow in the mid-twenties on a year-on-year (YoY) basis.
Despite an overall slowdown in discretionary spending, FSN E-Commerce Ventures reports that consumption in the Beauty and Personal Care (BPC) categories remained robust and aligned with the company's long-term trajectory. This indicates that demand for beauty and personal care products has been resilient, even in the face of challenging market conditions. (Read More)
Sobha Ltd, a realty firm, witnessed a surge of 3.5% in its stock on the National Stock Exchange (NSE) during early trading on Friday. This increase was driven by the company's impressive operational update for the first quarter of the financial year 2024 (Q1FY24).
Sobha Ltd, which primarily operates in Bengaluru, reported its best-ever pre-sales in terms of value, amounting to Rs1,465 crore. This represents a 28% year-on-year growth. However, the increase was only marginal when compared to the previous quarter. (Read More)
Sudhanshu Bansal of JM Financial Institutional Securities comments on Utilities sector: The momentum witnessed in power demand growth consecutively over the last 2 years (8.2%/9.5% YoY in FY22/23) seems to have taken a breather in 1QFY24; demand was flat (0.1% increase) in the quarter. However, taking a broader view, we expect growth in power demand to bounce back in the coming months with the onset of El Niño leading to a rise in temperatures and overall power demand. Also, during the week, the Earth recorded its hottest temperature ever (17.18°C) due to the combination of factors including global warming. Such occurrences are expected to increase, going forward.
The Central Board of Indirect Taxes and Customs (CBIC) has launched a proactive campaign to eliminate fraudulent accounts registered with the Goods and Services Tax Network (GSTN). The results of this concerted effort have revealed a staggering revelation – nearly 25% of the identified entities, who have wrongfully availed benefits totaling approximately ₹15,000 crore, either do not exist or have vanished into thin air, reported The Times of India (TOI).
Notably, the probe extends to various entities across the supply chain, including prominent players in the business domain. It has come to light that a leading food delivery service provider has availed services from non-existent entities.
Gaurav Bissa, VP, InCred Equities: "Reliance has been on the strongest largecap names in the recent rally in the market. The stock has been consistently making higher highs and higher lows on daily charts implying it is in a strong uptrend. The stock is trading near 15-month descending channel pattern and a weekly close above 2665 will trigger a fresh breakout for an upside till 2750 levels. So far the rsi has been witnessing minor divergences and a sustained move above 72 will likely push the stock price higher in a short period of time."
As the domestic market sentiment remain positive despite weak global cues, the Indian market witnessed a strong influx of new investors in June 2023.
As per a Moneycontrol report, quoting CDSL data, "the number of demat accounts opened in June totalled over 2.36 million, marking the highest account opening rate since May 2022, compared to 2.1 million additions a month ago and 2.3 million a year ago. The total demat tally crossed 120.51 million, up 2 per cent from a month ago and 24.41 per cent from a year ago." (Read More)
Prathamesh Mallya, DVP Research, Non-Agro Commodities & Currency, Angel One Ltd:
GOLD Outlook: We expect gold to trade lower towards 58300 levels, a break of which could prompt the price to move lower to 58230 levels.
CRUDE Outlook: China's weak industrial growth, along with weak oil demand and the intention of central banks to raise interest rates, is expected to exert downward pressure on oil prices.
BASE METALS Outlook: We expect copper to trade lower towards 710 levels, a break of which could prompt the price to move lower to 705 levels.
Pentagon Rubber Ltd's shares made their debut on the NSE SME exchange with a premium on Friday. The stock was listed at ₹130 per share, representing an 85.7 percent increase over the issue price of ₹70. However, after the initial surge, the stock was subject to a 5% lower circuit post listing, indicating a decline in its value.
For the IPO, Pentagon Rubber Ltd had set a price band of ₹65 to ₹70 per share, providing investors with a range within which they could participate in the offering. The subscription period for the IPO commenced on Monday, June 26, and concluded on Friday, June 30. (Read More)
IdeaForge Technology Ltd's shares made their debut on the stock exchanges with a premium on Friday. On the National Stock Exchange (NSE), the stock was listed at ₹1,300 per share, reflecting a 93.5 percent increase over the issue price. Similarly, on the Bombay Stock Exchange (BSE), the stock opened at ₹1,305.10 per share.
For the IdeaForge IPO, the drone manufacturer had set a price band of ₹638 to ₹672 per equity share, providing a reference range for potential investors to participate in the initial public offering. (Read More)
According to the 'Tracxn Geo Semi-Annual Report: India Tech- H1 2023', Indian startups experienced a significant decline of 72% in funding during the first half of 2023 compared to the same period last year. The report reveals that the total startup funding in India from January to June (H1) amounted to $5.5 billion.
Despite being ranked among the top three funded geographies globally, following the United States and the United Kingdom, the report highlights a downward trend in startup funding in India. This information was reported by CNBC. The decline in funding indicates a challenging period for Indian startups in terms of securing investment during the mentioned period. (Read More)
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: With the Nifty setting new highs for the 6th consecutive session, India has become a clear outlier among global stock markets. It would be difficult for this rally to sustain since the global market construct is turning unfavourable with major weakness in the developed markets and rising bond yields. The US June jobs numbers expected today are expected to be much higher than expected and the market expects the Fed to raise rates in the July 26th meet and remain hawkish in its stance. This is the reason why bond yields are rising.
Unabated FPI inflows and participation of majors like Reliance and leading banking names can take the Nifty higher. But investors have to be cautious since the market is running ahead of fundamentals. If the rally sustains for long, there is the risk of sharp correction soon.
On Friday, the Indian rupee experienced further depreciation, opening 17 paise lower against the US dollar. This decline was triggered by concerns over potential tightening of Federal Reserve policies following robust US private hiring data. The rupee commenced trading at 82.68 against the dollar, compared to its previous closing value of 82.51.
Meanwhile, the dollar index, which measures the dollar's value against a basket of other major currencies, saw a slight increase of 0.03% to reach 103.12. Additionally, yields on US Treasuries remained close to their recent high levels. (Read More)
BofA Securities, a global brokerage firm, has expressed its belief that Reliance Industries Ltd (RIL) will experience a decline in revenues and earnings before interest, taxes, depreciation, and amortization (EBITDA) in the first quarter of the fiscal year 2023-24 (April to June). This decrease is primarily attributed to the oil-to-chemicals (O2C) business of RIL. However, the steady growth in the retail and telecommunications (telco) sectors is expected to partially offset the decline.
According to BofA Securities, the bottom line is projected to decrease by 16% compared to the previous quarter and by 10% compared to the same period the previous year, amounting to ₹16,160 crore. The EBITDA is anticipated to decline by 1% both sequentially and year-on-year. Furthermore, the consolidated revenue is estimated to witness a 7% year-on-year decrease and a 4% sequential decrease, reaching ₹2.08 lakh crore. (Read More)
Reliance Industries gets approval for demerger; SBI announces management changes; ideaForge IPO to debut on Friday; TCS to train 25,000 engineers on generative AI; Dabur sees improvement in demand; Titan registers 20% YoY revenue growth; Tata Steel sees 18% increase in domestic volumes; Infosys sets up subsidiary in Canada; Adani Green plans to raise up to Rs. 12,300 crore; NTPC commissions second unit of Barh Super Thermal Power Project. (Read More)
Tata Consultancy Services (TCS), India's largest software services company, has announced its plan to train 25,000 engineers in generative artificial intelligence (AI) tools and services developed by OpenAI, a renowned AI research firm known for creating ChatGPT, a popular chatbot. These generative AI services will be hosted and provided on Microsoft's Azure cloud platform, allowing TCS to offer this capability to its clients. It is worth noting that Microsoft is an investor in OpenAI.
In addition to the training initiative, TCS has also introduced a new business offering called TCS Generative AI Enterprise Adoption. This offering will facilitate the deployment of OpenAI's generative AI business tools through the Azure platform, catering to the needs of various businesses. (Read More)
Dabur India, a packaged consumer goods company, has stated that demand trends in both urban and rural areas of India have shown signs of improvement in the June quarter. This positive development is attributed to the easing of inflationary pressures.
“During the quarter, trends in both urban and rural India have shown signs of improvement. One of the key contributing factors to this positive development has been the reduction in inflation. Sequential moderation in inflation has positively impacted consumer spending power and is resulting in gradual improvement in offtakes in the industry. Dabur’s consolidated business including recently acquired Badshah Masala, is expected to register growth exceeding 10%," the company said in its June quarter updated filed to the exchanges on Thursday. (Read More)
The State Bank of India (SBI) has recently announced several management changes as part of its efforts to strengthen its dominant position. This development comes shortly after the merger between HDFC and HDFC Bank, which created a significant new private sector competitor for SBI. Reports indicate that four key executives within SBI have been assigned new roles.
According to Bloomberg, which cited sources familiar with the matter, Rajay Sinha, the current chief general manager responsible for global markets, is expected to become the Managing Director and CEO of SBI Capital Markets Ltd. Sinha will replace Amitava Chatterjee in this position, with Chatterjee returning to the bank to oversee its division focused on corporate clients. In his new role, Chatterjee will serve as the Deputy Managing Director. (Read More)
On July 6, Titan Company made an announcement stating that it has achieved a 20 percent year-on-year (YoY) growth in revenue for the April-June quarter of the current fiscal year. All key consumer businesses of the company demonstrated double-digit growth during this period. Furthermore, Titan reported the addition of 68 stores, including CaratLane, bringing its total retail footprint to 2,778 stores.
Specifically, the company's jewellery division experienced a growth of 21 percent in the first quarter of fiscal year 2023-24. The gold and studded categories were key drivers of this growth, while the overall product mix remained relatively unchanged. (Read More)
On July 6, Reliance Industries Ltd made an announcement regarding the approval received from the National Company Law Tribunal (NCLT) for the demerger of its financial services undertaking and subsequent listing. The company had earlier revealed its intentions to demerge this division into Reliance Strategic Investments Limited (RSIL) and subsequently rename and list it as Jio Financial Services Limited (JFSL). This development signifies progress in Reliance's strategic plans for its financial services business. (Read More)
According to reports from CNN, Twitter has issued a threat to sue Meta over its new Threads app, which is seen as a potential competitor to the microblogging site. The letter, sent to Meta CEO Mark Zuckerberg on Wednesday, accuses Meta of stealing trade secrets by hiring former Twitter employees. The initial report about the letter was made by Semafor, and its authenticity was subsequently confirmed to CNN by an anonymous source familiar with the matter, as reported by ANI. (Read More)
Vaishali Parekh, Vice President - Technical Research at Prabhudas Lilladher has recommended three intraday stocks for today:
1] Cochin Shipyard: Buy at ₹576, target ₹600, stop loss ₹565;
2] Laurus Labs: Buy at ₹367, target ₹380, stop loss ₹361; and
3] RITES: Buy at ₹372, target ₹386, stop loss ₹365. (Read More)
Today, the highly anticipated initial public offering (IPO) of ideaForge Technology Limited is set to make its debut on Dalal Street. As confirmed by the BSE website, the ideaForge IPO listing date has been scheduled for July 7th, 2023, which is today. Prominent stock market experts have expressed optimism about the IPO, predicting a promising start for ideaForge. According to their analysis, it is expected that the share price of ideaForge will open at a minimum of four digits. In an optimistic scenario, lucky allottees might even witness their invested amount doubling as a result of the IPO's performance. (Read More)
Foreign Institutional Investors (FIIs) purchased shares worth a net amount of ₹2,641 crore in the Indian market, while Domestic Institutional Investors (DIIs) sold shares worth a net amount of ₹2,351 crore. Moving into July until the given date, FIIs continued to show interest in the Indian market by buying shares worth a net amount of ₹8,374.55 crore, while DIIs sold equities worth a net amount of ₹3,913.95 crore.
Additionally, the benchmark indices in the Indian stock market, namely the S&P BSE Sensex and the Nifty 50 index, both reached new all-time highs. The S&P BSE Sensex advanced by 339.60 points or 0.52% to reach 65,785.64, while the Nifty 50 index gained 98.80 points or 0.51% to close at 19,497.30. These figures indicate positive momentum and investor confidence in the Indian stock market during the mentioned period. (Read More)
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