Closing Bell
India' stock benchmarks declined for the fourth day in a row, dragged by metals, auto, realty, power, utilities stocks as the post-Fed rate hike sell-off extended.
The Sensex lost over 950 points (1.64%) to 57,145.22. The 30-stock gauge fell over 1060 points to an intraday low of 57,708.38. The Nifty 50 declined 1.8% (311.05 points) to 17,016.30. The 50-stock gauge fell below 17,000 in intraday trade for the first time in two months.
Today 43 stocks fell, seven rose. Tata Motors, Hindalco, Adani Ports, Maruti Suzuki and Eicher Motors were the top laggards.
Asian Paints, HCL Tech, Infosys, Divi's Labs, Ultratech Cement, TCS and Wipro were the Nifty 50 stocks that closed with gains.
The broader indices underperformed their larger peers with MidCap gauge losing 2.8% and SmallCap measure shedding over 3.3%. Barring Information Technology and Teck indices, all the other 17 sectoral gauges declined. Metal, Power, Realty, Utilities lost over 4% while Auto measure fell nearly 4%.
The market breadth is skewed in favour of bears. About 657 stocks fell, 2,927 rose and 123 remained unchanged.
Foreign Investors Net Sellers
Overseas investors sold the highest worth of Indian equities in 14 weeks and stayed net sellers for the fourth straight day on Monday.
As per data from the National Stock Exchange, foreign portfolio investors net sold equities worth Rs 5,101.3 crore today.
Domestic institutional investors, remained net buyers for the fifth straight day and bought equities worth Rs 3,532.18 crore today, making it the highest worth of net buying by DIIs in 14 weeks too.
Institutions have net sold Rs 6,038.46 crore worth of equities this month so far and Rs 39,521.54 crore worth of Indian equities till date in 2022.
10-Year Bond Yield Falls In The Final Hour
Yield on the 10-year bond rose 3bps to 7.42% during the session.
The 10-year bond yield fell in the final hour and closed 3bps lower at 7.36%.
Source: Bloomberg
Rupee Slides To Fresh Low
Indian currency fell 67 paise (0.83%) to record low 81.66 against the U.S. dollar, during the session.
The Rupee ended the session at 81.63, a fresh closing low.
Rupee has depreciated against the greenback in each of the last four sessions.
Source: Bloomberg
Power Grid Erases Intraday Losses
Shares of Power Grid erased intraday losses and gained over 3.3%.
Trading volume is 11.1 times the 30-day average. The relative strength index is at 27, suggesting it may be oversold.
The volatility in the stock comes after CNBC-TV18 reported that Finance Ministry said that there was no proposal for Power Grid buying stak in REC.
On Thursday, Jefferies noted reports indicating that Power Ministry is in talks with Power Grid to purchase PFC's 52.63% stake (Rs 14,400 crore) in REC. The global brokerage firm said PFC should ideally finance power projects through stake sale proceeds, and added Power Grid had sufficient cash and reiterated positive view on the 1-year and medium-term transmission spend growth story.
However, Jefferies observed that the purchase of PFC's stake in REC was a near-term dampener and could adversely impact FY23-25E EPS by 3-5%.
The stock fell 8% on Friday followed by 8% today ahead of the reversal.
Of the 25 analysts tracking the company, 19 maintain 'buy', five suggest 'hold' and one recommends 'sell'. The return potential of the stock is 19.2%.
Source: Bloomberg, CNBC-TV18
NSE Nifty Metal Index Sheds Nearly 5% In Intraday Trade
Blue Star Gains In A Weak Market
Shares of Blue Star Ltd. rose over 2.3% in a weak market.
Trading volume is similar to the 30-day average. ICICI Securities reiterated 'hold' and kept target unchanged at Rs 1,028 (implied return of -5.9%), while YES Research retained 'buy' and maintained target at Rs 1,288 (implied return of 17.91%), on Thursday.
Today, BOB Capital markets maintained 'hold' and kept target unchanged at Rs 1,100 (implied return of -0.15%).
YES Research cited growing traction across business segments as a reason for retaining 'buy'. Commercial air-conditioners and refrigeration is witnessing renewed traction, according to the brokerage which also highlighted continued order booking momentum in EMPS business and expanding distribution footprint as positives. YES Research believes that there could be upside to its estimates
ICICI Securities, on the other hand, expected EBITDA margin expansion in H2 to be lower than consensus expectations, for white goods and durables.
High ad-spend, increase in freight cost, investment in R&D, new product launches/relaunches could lead to margin expansion lower-than-expectations, according to ICICI Securities which remained hopeful of margin expansion in H2.
Source: Bloomberg, Brokerage notes
All Constituents Of Nifty Auto Index Decline
Bharti Airtel Launches Home Surveillance Solution
JUST IN
Bharti Airtel launches Xsafe, an advanced home surveillance solution.
Xsafe offers smart tracking, multi-person access to video feeds, smart alerts, perimeter zoning and seven-day cloud storage.
Xsafe is available across 40 cities including Mumbai, Delhi-NCR, Bengaluru, Chennai and Kolkata.
For festive season, Airtel offers a limited time discount on Xsafe products.
Xsafe has three cameras, Sticky Cam, 360 degree and active defence priced at Rs 2,499, Rs 2,999 and Rs 4,499 respectively.
Customers can pay an annual subscription charge of Rs 999 with the first month's subscription for free.
Source: Exchange filing
Goa Carbon Falls Most In Over A Week
Shares of Goa Carbon reversed gains. The stock rose nearly 4% in opening minutes before erasing gains and slipped over 4%.
Trading volume on the stock of the petchem firm engaged in manufacture, refining and sale of calcined petcoke is 1.3 times the 30-day average. The stock is testing 200-day moving average support at Rs 419.43 in today's session.
Goa Carbon said in an exchange filing post market hours on Friday that the company's board of directors will meet on September 29 to consider raising of funds through issue of equity shares to the existing equity shareholders. The fund raising will be through rights issue.
Source: Exchange filing, Bloomberg
Rallis India Falls Most In A Week As Kotak Institutional Equities Sees Erratic Rainfall As A Major Headwind For Growth
Shares of Rallis India lost nearly 4.5%, most in over a week.
Trading volume is 0.7 times he 30-day average.
Of the 20 analysts tracking the company, eight suggest 'buy', seven maintain 'hold' and five recommend 'sell'. The return potential of the stock is 7.2%.
Kotak Securities reiterated 'reduce' and maintained target of Rs 210 (implied downside of 0.59%) and Antique Stock Broking retained 'hold' and kept target unchanged at Rs 220 (implied upside of 4.24%), on Monday.
Kotak Securities said that the recent business updates from the pesticides, fertilisers, chemicals and allied products' maker indicates the difficulties faced by Indian crop protection market in Q2FY2023 due to erratic rainfall.
Kotak Institutional Equities estimates 13% revenue growth for Q2 and flat margin. It also cut FY2023E EPS by 6%. The brokerage expects similar pressures on other companies with domestic operations.
Crop protection products was affected due to adverse climatic conditions such as late advent of monsoons, uneven distribution (only 37% of India's districts received normal rains), loss of pesticide sprays due to excess rains have led to muted growth in sales volumes in domestic market for the entire industry, according to Kotak Institutional Equities.
Besides this, the key paddy-growing states in eastern India have received deficient rains. This could hurt Rallis as it is over-indexed towards paddy.
While domestic business has been under pressure, the export sales likely grew better, noted the brokerage firm.
Source: Bloomberg, Kotak Institutional Equities note
Mixed Open For European Markets
Mixed open for European markets, British Pound slides to record low.
Source: Bloomberg
10-Year Bond Yield Little Changed
Yield on the 10-year bond rose 3bps to 7.42%, during the session.
Source: Bloomberg
Brent Crude Slips To $85 Per Barrel
Large Trade: Power Grid
Power Grid has 3.95 million shares change hands in three large trades.
Power Grid also has 1.45 million shares change hands in another large trade.
Details of buyers, sellers are not known immediately.
Source: Bloomberg
Midday Market Update: Sensex, Nifty Off Day's Low; Metal, Auto Stocks Slide, I.T. Pack Resilient
India's stock benchmarks declined, but off day's low, dragged by broad based losses across sectors led by metal, auto, power, realty, utilities, commodities, consumer discretionary, energy stocks. Information Technology stocks were resilient amid the sharp sell-off.
The Sensex lost over 650 points (1.13%) to 57,445.24. The 30-stock gauge lost 1,060.68 points to an intraday low of 57,038.24.
The Nifty 50 also declined by similar magnitude to 17,111.90. The Nifty lost nearly 350 points to an intraday low of 16,978.30. This is the first time Nifty slipped below 17,000 in intraday trade in two months.
Today 13 of Nifty 50 stocks declined while 37 fell. Tata Motors, Hindalco, Eicher Motors, Adani Ports & SEZ, Power Grid were the top Nifty 50 losers.
Divi's Laboratories, Infosys, Asian Paints, HCL Technologies, Nestle India were among the gainers in the weak session.
The broader indices underperformed their larger peers with MidCap index losing 2.5% and SmallCap measure shedding 3%.
Barring Information Technology and Teck gauges, all the other 17 sectoral indices compiled by BSE declined.
The market breadth is skewed in the favour of bears. About 516 stocks rose, 2,959 fell and 126 remained unchanged
Rupee Slips To New Low Against U.S. Dollar
Rupee fell 67 paise to new low of 81.66, during the session.
Source: Bloomberg
Maruti Suzuki Starts Retail Sales Of Latest Offering From NEXA, The Grand Vitara.
The premium SUV is available with prices ranging between Rs 10.45 lakh and Rs 17.05 lakh.
Source: Exchange filing
Tata Stocks Fall On Report Than Group Commenced Plans To Halve Number Of Listed Firms
Shares of companies controlled by Tata Group fell after the Economic Times newspaper reported that Tata Sons has commenced plans to halve the number of listed companies in the conglomerate to an estimated 15 from 29 in the coming months, citing executives close to the development.
The simplification and synergising strategy aims to focus on growth, scale and improve cashflows in larger companies, according to the report. Tata Sons did not comment on the report.
The report comes after Tata Steel's board approved the merger of seven of its subsidiaries with itself on Friday.
Source: Economic Times, Bloomberg
Campus Activewear Falls Most In Nearly Four Months
Shares of Campus Activewear lost over 5.25%, most in nearly four months since June 3. Trading volume is 0.8 times the 30-day average.
The company said that the merger of its wholly owned subsidiary Campus AI Pvt Ltd. (approved by NCLT, New Delhi vide its order dated August 11, 2022), has no impact on the revenue and EBITDA of the consolidated entity in the revised financial results for the year ended March 31, 2022. The company reported revised numbers for FY2021-22 post market hours on Friday.
The company also added that the merger order is effective from April 1, 2020, and hence tax computations for FY2021 and FY2022 have been revised.
"Campus Activewear is expected to benefit from the merger mirroring the management’s quest for creating shareholder value", H.K Agrawal Chairman & Managing Director said.
Of the seven analysts tracking the company, four suggest 'buy', one maintains 'hold' and two recommend 'sell'. The return potential of the stock is -8.3%.
Source: Exchange Filing, Bloomberg
Rupee Slips To Record Low
Indian currency depreciated 59 paise to new low of 81.58 during the session. The slide comes amid stronger U.S. dollar, risk aversing across global markets.
Source: Bloomberg
Rupee falls to fresh all-time lows as the dollar strengthens across the board. Hawkish Fed outlook, political instability in China and sell-off in pound after the tax cut announcement is also disturbing the overall market sentiment. This week, RBI will release its policy statement and this is likely to influence the rupee that is currently falling sharply against the US dollar.Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services
Amid a liquidity deficit of more than Rs 21,000 crore in the banking system, RBI will have less room to step in and curb rates and volatilityAmit Pabari, Managing Director, CR Forex.
The RBI's MPC rate decision is due on Friday. Focus will be on potential cut in the cash reserve ratio, and any change of stance besides the benchmark rate hike itself.
Source: Bloomberg
Sensex Falls Most In Over A Week
Nifty Slips Below 17,000
NSE Nifty 50 loses over 300 points to slide below 17,000, for the first time in two months since July 28.
Source: Bloomberg
Stock Benchmarks Near Day's Low
Gold Sinks To Lowest Since Early Days Of Pandemic
Gold slides amid broad selloff in equity markets amid rate hikes by several central banks. Silver, platinum and palladium also tumbled.
Source: Bloomberg
Apple Starts Manufacturing iPhone 14 In India
Apple said it is excited to be manufacturing the iPhone 14 in India.
Apple global partner Foxconn will manufacture the phone in its Sriperumbudur facility.
Source: PTI
Britannia Industries Gains In A Weak Market
Shares of Britannia Industries gained nearly 1% in a weak market. Trading volume is nearly quadruple the 30-day average.
The stock was among the only five Nifty 50 gainers. The company named Rajneet Kohli as executive director and chief executive officer with effect from today. It also named managing director Varun Berry as the executive vice-chairman.
Of the 40 analysts tracking the company, 20 maintain 'buy', 16 suggest 'hold' and four recommend 'sell'. The return potential of the stock is 3.6%.
Source: Exchange filing, Bloomberg
Hester Biosciences Surges After Initiating Manufacture Of Goat Pox Vaccine Amid Potential Lumpy Skin Disease Outbreak
Hester Biosciences Ltd rose 13%, most in six months since March 30.
Trading volume on the veterinary vaccines maker is 62-times the 30-day average.
The company informed exchanges on Sunday that it recognised early signs of a potential outbreak of lumpy skin disease. The company has initiated manufacture of goat pox vaccine in anticipation of surge in demand.
The company said that it has been able to meet the complete demand for the supply of goat pox vaccine in the country.
The capacity expansion to manufacture additional quantities of the goat pox vaccine will be completed in January 2023, the company said.
Hester Biosciences acquired the technology to make goat pox vaccine from Indian Veterinary Research Institute (IVRI) and commercialised the vaccine on November 10, 2024.
Source: Exchange Filing, Bloomberg
Harsha Engineers International Debuts At 34.5% Premium To IPO Price
Shares of Harsha Engineers International listed at Rs 444 apiece on the BSE, a premium of 34.5% to its IPO price of Rs 330.
On the NSE, the stock listed at Rs 450.
The stock extended gains to as much as 40% in early trade.
Source: BSE, NSE
Power Grid Extends Decline; Stock Slips 20% In Three Sessions
Shares of Power Grid lost 8% during the session, on course to extend losses for seventh session.
The stock shed 8% on Friday as well. Trading volume is 11 times the 30-day average. The relative strength index of the stock is 22, suggesting it may be oversold.
Elara Capital reiterated 'reduce' on the stock and kept target unchanged at Rs 213 (implied return of -3.23%) while Jefferies retained 'buy' and maintained target price at Rs 260 (implied return of 18.13%) on Thursday. The stock has shed nearly 20% in the last three sessions.
Jefferies noted reports indicating that Power Ministry is in talks with Power Grid to purchase PFC's 52.63% stake (Rs 14,400 crore) in REC. The global brokerage firm said PFC should ideally finance power projects through stake sale proceeds, and added Power Grid had sufficient cash and reiterated positive view on the 1-year and medium-term transmission spend growth story.
However, Jefferies observed that the purchase of PFC's stake in REC was a near-term dampener and could adversely impact FY23-25E EPS by 3-5%. The relative insulation of Power Grid, unlike NTPC which has made investments outside the core, and execution track record ensured the company's leadership in transmission, even after the introduction of private competition in 2013, note Jefferies. It added that if the stake purchase materialised, approximately Rs 21 per share, it is unlikely to be valued by the market. The purchase could also lead to lowering of dividend payout given the cash outflow due to the buy. Some de-rating is likely, according to Jefferies.
The company announced that G Ravishankar assumed the position of Director (Finance), in an exchange filing on Thursday.
Of the 25 analysts tracking the stock, 19 maintain 'buy', five suggest 'hold' and one recommends 'sell'. The return potential of the stock is 25%.
Source: Bloomberg, Jefferies note, Exchange filing
S&P BSE Capital Goods Index Falls Most In Over Three Months
Hindalco Industries Falls Most In A Month
Shares of Hindalco Industries fell 4.62%, most in a month since August 29. Trading volume is 1.6 times the 30-day average.
Jefferies reiterated 'hold' on the stock on Monday and kept target price unchanged at Rs 390, an implied upside of 3.24%.
Jefferies noted the lowering of five-year volume CAGR outlook for North America by Ball Corporation, a leading beverage can maker and the largest customer of Novelis and added slowing can demand and falling aluminum prices are likely to hurt Hindalco's growth outlook.
"Global metal demand outlook remains clouded with continued lockdowns on China and tightening interest rates elsewhere", according to Jefferies.
Hindalco is among the top losers in Nifty Metal index.
Of the 24 analysts tracking the company, 22 maintain 'buy', one suggests 'hold', one recommends 'sell'. The return potential of the stock is 40.1%.
Source: Bloomberg, Brokerage note
Opening Bell: Sensex, Nifty Open Lower; Rupee Slides To New Low
India's stock benchmarks opened lower, dragged by broad based losses across sectors like by banking, auto, metal, realty, energy stocks.
The S&P BSE Sensex lost 700 points (1.20%) to 57,401.43. The NSE Nifty 50 declined 1.25% to 17,110.10. Today 45 of Nifty 50 stocks fell while five rose. Power Grid, Hindalco, IndusInd Bank, Tata Motors, M&M were the top losers.
The broader indices underperformed their larger peers with S&P BSE MidCap, SmallCap losing nearly 2%. All 19 sectoral indices compiled by BSE Ltd. declined with Auto, Metal Power, Realty and Consumer Discretionary gauges shedding over 2%.
The market breadth is skewed in the favour of bears. About 553 stocks rose, 2,068 fell and 144 remained unchanged.
10-Year Bond Yield Rises
Yield on the 10-year bond rose 2bps to 7.41%, at the open.
Source: Bloomberg
In Focus: Sansera Engineering
Iron and steel forging products maker Sansera Engineering's shares are in focus after lock-up period of part of its IPO expired on September 24.
Source: Bloomberg
Rupee Slips To Record Low
Indian Rupee depreciated 56 paise to record low 81.55 against the U.S. dollar.
Source: Bloomberg
Trade Setup For Monday
'Local Benchmark Indices Are Likely To Witness A Bearing Opening'
In tandem with the weakness seen in the Asian pack, local benchmark indices are likely to witness a bearish opening Monday, as investors await the outcome of the RBI's monetary policy meeting later this week. While most of the experts are already expecting a 25-35 basis point hike in key rates, what will be interesting to look at is the MPC's outlook commentary on interest rates, inflation and growth numbers. Although India is seen as a bright spot in times of global slowdown concerns, domestic markets will not be completely insulated from overseas turmoil and would continue to see bouts of intra-day volatility. Technically for Nifty the upside is capped around 17,700-17,750 zone and downside well protected at the index's biggest support at 16,907-16,161.Prashanth Tapse, Research Analyst, Senior VP (Research), Mehta Equities Ltd
Global Cues
U.S. Dollar Index at 113.17
U.S. 10-year bond yield at 3.74% on Friday
Brent crude up 1.2% to $87.2 per barrel
Nymex crude at $79.76 per barrel
SGX Nifty down 0.68% to 17,215 as of 6:04 a.m.
Bitcoin down 0.2% to $18,859.7
Stocks To Watch
Yes Bank: The bank amended its July 15 release that said that it had successfully exited the reconstruction plan initiated by RBI in March 2020. However, the amended release now states that the bank can only exit reconstruction scheme after RBI confirmation of the compliance certificate and the completion of the three-year lock-in period with respect to 75% of shares held by shareholders.
Britannia Industries: The company has named Rajneet Kohli as executive director and chief executive officer with effect from Sept. 26. It also named managing director Varun Berry as the executive vice-chairman.
Embassy Office Parks REIT: Shareholder Blackstone Inc. will sell 7.2% to 9.6% stake in the company for $400 million, Reuters reported. Abu Dhabi’s sovereign wealth fund is likely to pick up at least half of the stake that Blackstone is to sell, the report added.
RailTel Corporation: The company appointed Sanjai Kumar as Chairman and Managing Director with effect from Sept. 23.
Infibeam Avenue: The company consolidates its Australia, U.S. and Saudi Arabia arm and transferred to company’s UAE‐based wholly owned subsidiary, Vavian International. The company plans to increase its global play in the digital payments space by going aggressively with its flagship brand CCAvenue.
Nestle India: To invest Rs 5,000 crore in India by 2025.
Sagar Cements: The company has appointed K.V.Vishnu Raju as Chairman with effect from Sept. 24.
Unichem Laboratories: The company sells 20% stake in Optimus Drugs Ltd. to Sekhmet Pharmaventures Ltd. for Rs 270.98 crore.
Coal India: The company will sign memorandum of understanding with Bharat Heavy Electricals, Indian Oil Corporation and GAIL (India) for setting up four Surface Coal Gasification projects.
Glenmark: The company along with Bausch Health announced that nasal spray Ryaltris has been approved by Health Canada for the symptomatic treatment of moderate to severe seasonal allergic rhinitis.
Axis Bank: Chief Executive Officer Amitabh Chaudhry to hold press conference for a strategic business announcement.
Tata Motors: Girish Wagh, executive director, to hold webcast on 'Future of Pickups'.
Sensex, Nifty Set To Decline; Yes Bank, Britannia, RailTel, Nestle, Coal India In Focus
The dollar rallied, bond yields rose, and Asian shares slid amid unrelenting pressure on risk-sensitive assets as fears of faster inflation and global recession continued to rise.
The pound led declines among major currencies on Monday, slumping to a record low as the U.K. Chancellor vowed to press on with the tax cuts that threaten to stoke inflation. The euro fell as investors weighed prospects of Italy under the most right-wing government since World War II.
Shares dropped in Japan and Australia while an index of global stocks plumbed to new lows for the year. The U.S. and European stock futures fell, while equities in Hong Kong fluctuated.
At 7:25 a.m., the Singapore-traded SGX Nifty — an early barometer of India's benchmark Nifty 50 — traded 0.9% lower at 17,176.5 points.
A dollar gauge rose to a record high. The yen slid, while remaining short of the point last week that drew intervention from Japanese authorities.
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