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Stocks to Watch, June 26, 2023: IndusInd Bank,Ipca Lab,Infosys, ICICI Securities,HDFC Life

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Equity benchmark indices are staring at a muted start on Monday as global investors remain cautious after an armed coup by the Wagner Group was prevented in Russia against President Vladimir Putin. 


At 7:30 am, the SGX Nifty was largely flat, quoting at 18,720 levels.


Asia-pacific markets were mixed this morning with Nikkei, Hang Seng and Strait times gaining up to 0.7 per cent, while S&P/ASX 200, Shanghai Composite and Shenzhen Component fell 0.2-0.7 per cent.


In the US on Friday, the Dow fell 0.65 per cent, the S&P 500 slid 0.77 per cent and the Nasdaq shed 1.01 per cent. 


Brent crude rose 0.4 per cent to $74 per barrel as the averted civil war in Russia raised concerns of political instability. 

Meanwhile, here are some stocks to watch out in trade today: 

IndusInd Bank: The Hinduja Group is in talks to invest Rs 10,000 crore to hike its stake in IndusInd Bank, according to a media report. Hinduja Group is likely to increase its stake from 17 per cent to 26 per cent, reported Economic Times. The deal is likely to be completed by the second half of FY24.


HDFC Life: The investigative wing of the Central Board of Indirect Tax and Customs (CBIC) has slapped a show cause-cum-demand notice on HDFC Life Insurance Company for an amount of Rs 942.18 crore. This notice pertains to charges of wrongly availing the input tax credit without the underlying supply of services.

ICICI Securities: Private lender ICICI Bank will hold a board meeting on Thursday, June 29 to consider a proposal for delisting the equity shares of its broking arm ICICI Securities.


Ipca Laboratories: The US Food and Drug Administration (US FDA) has issued Form 483 with 8 observations for company’s Pithampur formulations manufacturing facility in Madhya Pradesh. The USFDA inspected the facility during June 15-23, 2023.

Infosys: The company said was cooperating with an Australian government investigation into ‘tainted contracts’. The software major has also reportedly cut off ties with lobbying firm Synergy 360 – which was reportedly paid $16 million over 5 years to help Infosys grow its business in Australia. An investigation was launched last year amid claims that former MP Stuart Robert had helped the lobbying firm and its client win government contracts.


Aurobindo Pharma: European Medicines Agency’s (EMA) committee for medicinal products for human use (CHMP) has accepted the firm’s arm CuraTeQBiologics’ request to withdraw EU marketing authorisations application of ZEFYLTI & DYRUPEG. 


Asian Paints: The paint manufacturer has acquired additional 11 per cent equity stake in Obgenix Software (brand name White Teak) for Rs 54 crore, from its promoters. The company now holds 60 per cent stake in White Teak, up from 49 per cent earlier. 


Axis Bank: The Reserve Bank of India has imposed a monetary penalty of Rs 30 lakh on Axis Bank for violation of credit card rules.


Rail Vikas Nigam: The company has emerged as the lowest bidder a project of design and construction of elevated metro viaduct, from Maharashtra Metro Rail Corporation. The cost of project is Rs 394.9 crore and the project is expected to be executed in 30 months.

Yes Bank: Its board has approved borrowing/raising funds in Indian/foreign currency for up to an amount of Rs 2,500 crore by an issue of debt securities including but not limited to non-convertible debentures and bonds.

Zydus Life: The company’s arm Zydus Animal Health And Investments will acquire a 6.5 per cent stake in Mylab for Rs 106 crore. 


Grasim Industries: The Aditya Birla Group company said the Finance Committee of the Board of Directors has approved the issue of non-convertible debentures on private placement basis, for an amount up to Rs 2,000 crore, in one or more tranches.

Avantel: The board has approved a stock split of its share from 1 into 5 equity shares having face value of Rs 2 each fully paid-up, subject to the approval of shareholders of the company.

REC: The firm will provide Rs 3,045 cr financial aid to Bangalore Metro Rail Corporation Limited for Phase-2 of metro.


Godrej Properties: The company has acquired approximately 15 acres of land in Gurugram, Haryana through an outright purchase, for the development of premium residential apartments

Jammu & Kashmir Bank: The RBI has imposed a monetary penalty of Rs 2.50 crore on the bank for non compliance with certain directions issued on creation of a central repository of large common exposures-across banks.


AU Small Finance Bank: The board will meet on June 29, 2023 to consider raising of funds by issue of equity shares through private placement or qualified institutions placement (QIP) or preferential allotment or through a combination thereof or any other alternative mode.



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One year on: LIC shares still trading at 40% discount to IPO price, while Sensex up 14%


A year after Life Insurance Corporation (LIC) listed its shares on the stock exchanges, shares of the country’s biggest insurer are still quoting at 40 per cent discount to the initial public offering (IPO) price of Rs 949 per share.

LIC shares closed at Rs 567.40 on the BSE on Tuesday. During the past years, the BSE Sensex shot up by 14 per cent from — 54,318.47 on May 17, 2022 to 61,932.47 on May 16, 2023.

On May 17, 2022, LIC shares started trading at Rs 867.20 – at a discount of 8.62 per cent – on the BSE as against the issue price of Rs 949 per share, disappointing investors. The share has not recovered after the listing a year ago even though LIC is a market leader in an under-penetrated Indian life insurance market.

“The stock has been in free fall since its listing due to multiple headwinds like weak market conditions, the Adani-Hindenburg row and changes in tax policy,” said Cyril Charly, Research Analyst at Geojit Financial Services.
However, LIC is not alone in disappointing investors as a host of new age IPOs like Paytm, Cartrade Tech, PB Fintech, Nykaa and Star Health and Allied Insurance are trading at a discount to their IPO prices.

Though market regulator Securities and Exchange Board of India (Sebi) has since then tightened IPO disclosure norms, the IPO market is yet to recover from the valuation shock suffered by investors. However, analysts are optimistic about the LIC valuations.

“The management has emphasized increasing the share of non-participating policies in the portfolio mix, driving profitability. We expect LIC to have minimal impact on the tax implications due to its versatile client mix. The stock is currently trading at an appealing valuation, exhibiting a substantial discount compared to its industry peers.

While near-term performance may be shackled by sectoral uncertainties, long-term investors can anticipate a favourable return,” Charly said.

LIC’s value of holding in Adani group companies had fallen below the purchase price of Rs 30,127 crore in February this year when US-based Hindenburg Research came out with various allegations against the Adani group and market valuations of group companies plummeted.

“We believe there is a huge market as far as ‘Insuring the Uninsured’ is concerned. This will not only create opportunities for LIC but also for the other related entities like HDFC Life, ICICI Prudential and SBI Life. There might be a slight deceleration in growth due to the concerns outlined in the Budget by the Union Finance Minister. However, considering the long-term perspective, it remains a sound investment,” said an analyst with a leading broking firm.

LIC’s consolidated net profit rose sharply to Rs 8,334 crore in the third quarter as against Rs 235 crore in the same period a year ago as premium income improved and it moved Rs 5,670 crore to its shareholders’ fund to shore up its net worth.

While LIC’s IPO had received good response from policyholders, foreign investors were not very enthusiastic about the offer.

Bids from foreign portfolio investors (FPIs) were to the tune of Rs 2,291 crore in the main book and they also invested Rs 555 crore in the anchor book. LIC had offered a discount of Rs 60 for policyholders and Rs 45 for retail investors and employees. LIC’s market capitalisation which was at Rs 6 lakh crore at the IPO price of Rs 949 has now fallen to Rs 358,880 crore.

The government was earlier keen on launching the LIC IPO in March 2022 to meet its revised disinvestment target for the fiscal 2022-23. The issue size was delayed and cut from the earlier proposed Rs 65,000 crore after Russia attacked Ukraine and foreign investors started pulling out funds in the wake of rate hike plans of the US Federal Reserve, sending financial markets into a tizzy.





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Hindenburg-Adani: Centre agrees to Supreme Court-picked panel


NEW DELHI: Confident that the Adani meltdown will have negligible impact on Indian securities markets, the Centre on Monday accepted the Supreme Court‘s suggestion for a retired judge-led committee to study the recent alarming fall of Adani group shares following short seller Hindenburg Research’s report and recommend improvements in statutory and regulatory regimes governing the securities market to protect investors against such future events.
“We will suggest names of the experts to be included in the committee in a sealed cover. Some names may appeal to the Supreme Court, and some may not. But these names should not be discussed and opposed by the petitioners. The SC can choose from the list,” solicitor general Tushar Mehta told the bench, adding that no message should go out that the market regulator is not capable of handling the situation.
Solicitor general Tushar Mehta conveyed the government’s stand to a bench of Chief Justice DY Chandrachud, and Justices PS Narasimha and JB Pardiwala but also maintained that “the government is of the firm opinion that the existing structures and regimes, both statutory and regulatory, along with markets regulator Sebi and related agencies are fully competent to deal with the incident that happened recently.”

BJP govt’s foreign policy is not for India, it is for Adani and his businesses: Rahul Gandhi

Mehta said, “The government has no objection to the constitution of a committee of experts. But the remit of the committee will be very important. It should not send a message to the international investors that the markets regulator is not competent to deal with the situation. It will affect market sentiments.”
He said the existing statutory regime and regulatory mechanism should not be undermined at any cost. “In respect of volatility of share prices of specific companies, there are robust frameworks in place, which get automatically triggered and when triggered, are transparently disclosed in public domain and serve as a signal to investors in respect of risks related to high volatility of those shares,” Sebi said. The bench posted the matter for hearing on Friday and asked SG to give the names of experts on that day.

Adani-Hindenburg row: Congress stages protest outside LIC office in Delhi

Without naming Adani Group, Sebi informed the SC in its written submissions that the sharp drop in the market value of shares of the group companies have negligible impact on the sensex. “While the shares of the group have seen significant decline in prices on account of selling pressure, the wider Indian market has shown full resilience. The combined weight of the group companies in sensex is zero and in Nifty is below 1%,” it said.
Although the SC had on Friday entertained the two PILs by advocates Vishal Tiwary and M L Sharma, it had commented on their understanding of the issue by saying they appear “not -so-well informed”. Turning the proceedings into an “open dialogue”, the CJI-led bench had sought to know the consequences of the operations of short sellers like Hindenburg, who make money by pulling down shares of companies, for Indian investors in a world where capital moves seamlessly across national jurisdictions.

Adani row: SC seeks SEBI response to protect investors

“How do we ensure protection of Indian investors? Suppose it is because of short selling… in the course of 3-4 minutes trades are done. As a result of short selling, value of products get depressed depending on the number of shares offered. Then the seller steps into the market to buy these shares, and gets the benefits and profits,” the SC had said.
Watch Hindeburg-Adani row: Centre agrees to form panel on investors’ safety





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Indian Equities Top Asian Markets, Robust Economic Growth Drives Optimism


The world-beating performance has helped India to double its weight in MSCI’s index. (File)

Singapore:

In a year when Indian equities emerged as the best performers in Asia and the country took advantage of a structural shift in supply chains from a pandemic-hit China, forecasts of robust economic growth are set to keep stocks on a firm footing.

India’s Nifty 50 index struck a record high in December and is up 5% this year, joining an exclusive group of markets worldwide that rose in spite of interest rate hikes and slower growth. In contrast, MSCI’s broadest index of Asia-Pacific shares outside Japan shed 19%.

Next year’s optimism for India is driven by strong corporate earnings, a post-pandemic retail boom and an economy set to grow by 6% in the next fiscal year – which will make it the world’s fastest-growing major economy in 2023.

Amit Khattar, head of Deutsche Bank’s investment bank unit, said India has benefitted from predictability around large deals and confidence on the reforms agenda.

“Global investors, sovereign funds and other institutions are looking to raise exposure to India in their emerging markets portfolios. Very large private players are looking to buy different businesses,” Khattar said.

The world-beating stocks performance has helped India to double its weight in MSCI’s emerging markets index to 16% from 2019, but overseas investors have missed out in the local rally.

Foreign portfolio investors sold a net $18 billion this year of Indian assets but turned buyers in November and December.

While Asia M&A deals fell to 8-year lows, India stood out with total deal value jumping 33% on the year to $164 billion, mainly boosted by the $40 billion purchase by the country’s largest private lender, HDFC Bank, of its parent.

India recorded its largest IPO with the $2.7 billion issue of Life Insurance Corp of India, making it the fifth-largest valued firm though its shares have shed about 20% since it went public in May.

The IPO came after the government offloaded its decades-old, debt-laden flag carrier Air India to Tata Sons for $2.4 billion in enterprise value.

“India is going to be one of the main focuses within Asia for us in developing exposure in 2023,” said Adam Watson, co-head of Asia Pacific at Partners Capital, which works with endowments, foundations and others globally, and handles $45 billion in assets.

Though some analysts point to high domestic valuations, strategists polled by Reuters last month forecast India’s stock market will rise another 9% by the end of 2023 despite widespread expectations of a gradual slowdown in the economy. GDP is projected to grow 6.8% to 7% in the current fiscal year.

Goldman Sachs said current market valuations have priced in expectations of superior earnings growth over the next couple of years, noting that foreign flows could remain weak next year.

Meanwhile, as Beijing and Washington remain mired in trade tensions and supply chains shift due to production disruptions from China’s zero-COVID policy, which has only started to ease recently, India has been winning business.

Apple said it will manufacture iPhone 14 in India, while a key supplier Foxconn plans to quadruple the workforce at its Indian plant, Reuters has reported.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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In charts: Why Morgan Stanley is bullish on India and thinks sensex can touch 80,000 next year


NEW DELHI: Foreign brokerage firm Morgan Stanley has predicted that BSE sensex is expected to touch the 80,000-mark by December 2023 if India is included in global bond indices which can result in $20 billion of inflows over the subsequent 12 months.
Other factors which can propel sensex to 80,000 points include commodity prices like oil and fertiliser correcting sharply, and earnings growth compounding at the rate of 25 percent annually over FY2022-25.
But India might have to wait until early next year to see its bonds enter the JPMorgan emerging market global index as reports suggest the inclusion has been delayed due to prickly operational issues. According to Reuters, bond settlement rules and tax complexities need to be resolved before the inclusion takes place.
The brokerage firm also sees a 50% chance of the sensex hitting 68,500 by the end of 2023, assuming that the effects of the Russia-Ukraine war do not spill over into next year, domestic growth continues its strong path and the US does not slip into a protracted recession.

“India is likely to have better growth than most parts of (emerging markets), a sustained domestic bid, a relatively strong macro environment plus light positioning by foreign portfolio investors,” said analysts at Morgan Stanley.
Bull market intact: At the helm of India’s outperformance has been government policy, including a structural rise in the domestic equity saving pool, a boost to corporate profit share in GDP and a focus on FDI flows, which raised the share of FDI in balance of payments, allowing India to run monetary policy that is less sensitive to the US Fed, and reduced the equity market’s sensitivity to US growth conditions and oil prices, said analysts at Morgan Stanley.
The brokerage expects profit share in GDP to double from its current level of 4 percent to 8 percent over the next four years, indicating that broad market earnings could compound annually at 20-25 percent.
However, in a bear case scenario, the firm sees sensex dropping to 52,000 if commodity prices remain elevated, RBI tightens aggressively and recession in the US and Europe drag down India’s growth.
There’s a 20 percent probability of this, according to Morgan Stanley.
“An up-trending profit cycle, a likely peak in short rates and ebbing global macro risks relative to 2022 make the case for absolute upside to Indian stocks,” said the brokerage.
Here we decode the key reasons for Morgan Stanley’s bullish view on India:
1. Earnings: Morgan Stanley expects 2023 corporate earnings to be strong, with an improvement in margins led by a durable rise in capital spending and benign material prices. India appears to have multiple sources of capex, including energy transition, the Internet, climate change, production-linked incentive schemes,growing exports, depleted capital stock, infrastructure, real estate and FDI going into the next few years. Rising capex is good for corporate profit margins until the capex becomes unproductive, it said.

. Consensus estimates are likely heading higher

2. Market view on 2024 general elections: Given how central policy has been to India’s improving macro and stock market outperformance, the market view on the election outcome is likely to affect stock markets considerably in the second half of 2023.
3. Likely increase in net flow: Morgan Stanley expects a rise in equity issuances in 2023 which should smother some of the bid that is coming from domestic investors. At the same time, given how deep the selling by FPIs has been,FPI buying will return to India.

4. Short rates likely peaking: The brokerage expects the RBI to exit the current rate cycle at 6.5%, or 60 bps above its current level, premised on the fact that inflation is heading lower in 2023. This will likely improve liquidity conditions, facilitate further acceleration in credit growth,and help share prices.

5. Global growth and commodity complex: If the global economy slips into recession, it would not be good news for India, which exports about 20% of its output

That said, since India is gaining share in global exports, the slowdown in global growth is affecting it less than in the past. The commodity complex,especially oil and fertilizer, may have greater impact on India’s macro conditions, given the adverse impact on inflation and,hence, rates and growth. In our base case, global liquidity is likely improving in 2023, led by a peaking of the US dollar, though in a bear case scenario this may turn out otherwise, it noted.

Relative valuations: India’s relative valuations are just off all-time highs and appear to be an impediment to further outperformance

That said, India is likely to have better growth than most parts of emerging markets,a sustained domestic bid,a relatively strong macro environment plus light positioning by foreign portfolio investors.
“Based on our indicator, the market is pricing in much less earnings growth than it was at the start of 2022,” said Morgan Stanley.

Sentiment: The market still does not appear at extremes when measured on flows, holding periods, market breadth. “Our BSE sensex target of 68,500 implies upside potential of 10% to December 2023. This level suggests that the BSE sensex will trade at a trailing P/E multiple of 25x,ahead of the 25-year average of 20x. The premium over the historical average reflects greater confidence in the medium-term growth cycle in India,” said Ridham Desai, equity strategist at Morgan Stanley.

So what should investors bet their money on?
“The peaking of short-rate hikes will likely favor non-banking lending businesses, but a recovery in credit growth favors banks, too. Continuing strong domestic growth will ikely drive outperformance of consumer discretionary stocks. Growing evidence of capital spending would likely favor industrials,” said Desai.
What should investors avoid?
Avoid defensives and global cyclicals: A reversal in absolute index returns to the upside would likely be accompanied by underperformance of defensives – consumer staples, utilities and telecom. Slow global growth likely keeps the lid on performance of global cyclicals including energy and materials, he added.
Experts believe small-caps will likely outperform large-caps –the opposite of their call at this time last year.
The brokerage firm also continues to pursue ideas around clean energy spending, defence indigenisation, a new residential property, auto, and air travel cycle, a multiyear credit cycle for financials and life insurance, digital transformation, and market share concentration, plus horizontal growth for discretionary and staple consumption and electric vehicles as key themes for 2023.





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Stocks to Watch: SBI, PVR, Tata Power, Tamilnad Mercantile Bank, CE Info



The Sensex and Nifty indices are likely to open flat on Thursday after volatile swings in the previous session. The global selloff on US inflation shocker also seemed to pause as US markets rose up to 0.7 per cent overnight. Asian stocks were mixed this morning.


At 7:40 am, the SGX Nifty futures were 20-30 points higher at 18,050 levels.


That said, here are some stocks that will likely see some market action today:


Tata Power/Tata Motors: Tata Power on Wednesday said that it has inked a pact to develop a 4-MWp solar project at Tata Motors’ Pune plant. The installation is collectively expected to generate 5.8 million units of electricity, potentially mitigating over 10 lakh tonnes of carbon emission. Read here


SBI: The country’s largest lender raised the Benchmark Prime Lending Rate (BPLR) by 70 basis points (or 0.7 per cent) to 13.45 per cent on Wednesday. The announcement would make loan repayment linked to BPLR costlier. Read more


Vedanta: The company will look at creating a hub to manufacture Apple’s iPhones and TV equipment, along with possibly diving into the electric vehicle sector, Chairman Anil Agarwal said in an interview with CNBC TV18 on Wednesday. Read here


PVR: Investors Gray Birch, Plenty PE & Multiples PE may sell up to 7.74 per cent stake in the company today in a price range of Rs 1,852-1,929/share, as per CNBC TV-18.


Tata Steel: The steel maker said its board of directors has approved fund raising through the issue of non-convertible debentures up to Rs 2,000 crore in two series. In one series, they will raise Rs 500 crore and in the second, Rs 1,500 crore.


Tamilnad Mercantile Bank: The bank will debut on the bourses on September 15. The final issue price has been fixed at Rs 525 per share. As per IPO Watch, the stock is likely to see lisitng gain of upto 5 per cent.


Campus Activewear: The company hasunveiled new Autumn & Winter collection at its Annual Retailer Meet. It plans to introduce 300+ new shoe designs by end of the year.


HFCL: The company has received the advance purchase orders worth Rs 447.81 crore, consisting of Rs 341.26 crore from Bharat Sanchar Nigam (BSNL), and Rs 106.55 crore from RailTel Corporation of India.


C.E. Info Systems: The board has considered and approved acquisition of 26.37 per cent stake on a fully diluted basis of Kogo Tech Labs for Rs 10.00 crore, with an option to raise the stake to 50 per cent within 2 years.


Glaxosmithkline Pharmaceuticals: Life Insurance Corporation of India has offloaded 34.63 lakh equity shares or 2.04 per cent stake in the company via open market transactions. With this, LIC’s shareholding in the company reduced to 4.35 percent, down from 6.4 percent earlier.


Jayant Infra tech: Company has received its biggest ever work order (WO) worth Rs. 54 crore from ECI-SEEIPL(JV).


KPI Green Energy: The company has received new order of 4.20 MW (comprising of 4.20 MW wind turbine and 3 MWdc solar) under wind-solar hybrid power project. The order is from Nouveau Jewellery LLP, Surat under ‘captive power producer (CPP)’ business segment.


Balaji Amines: The company said the Phase 1 of 90-acre greenfield project (Unit IV) has been completed. The di-methyl carbonate, propylene carbonate, and propylene glycol plant will be ready to commence commercial production by the end of September 2022. In addition, it has also started construction in phase 2 of greenfield project (Unit IV) for 2 plants. The company already has environmental clearance for this expansion.

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Nifty Rises Above 18,000 Points For First Time Since April, But Risks Remain


Stock Market India: Nifty breaches 18,000 points-mark for the first time since April

Indian equity benchmarks rose to a five-month high early on Tuesday, extending their winning streak to the fourth straight session, with the Nifty breaching 18,000-mark for the first time since April as bulls took control amid the brighter mood in global markets, despite domestic inflation rising back up after falling for three months.

Data on Monday showed a double whammy for Asia’s third-largest economy, with industrial output slowing and consumer price index-based inflation surging back to 7 per cent, stalling a three-month downtrend.

The latest inflation data contradicts the Reserve Bank of India’s broad predictions for a slowdown in price pressures and is likely to push the central bank to take a more aggressive rate hike strategy to counter inflation, mirroring the West – even at the cost of economic growth.

More analysts and economist now predict a larger RBI rate hike later this month.  

Still, the NSE Nifty-50 index rose 103.40 points, or 0.58 per cent, to 18,039.75, and the 30-share BSE Sensex index jumped 355.89 points, or 0.59 per cent, to 60,471.02.

According to information available on the BSE, foreign institutional investors (FIIs) invested Rs 2,049.65 crore in domestic shares on Monday.

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, told PTI that the ongoing market rally is primarily driven by the sudden reversal of FII strategy.

“Retail investor support and fundamental support to the market from a strong economy are aiding the rally. Now, this has become a classic momentum driven market which has the potential to take the indices to new record highs soon,” he said.

Reuters reported that domestic shares climbed to a five-month high, lifted by sharp gains in Bajaj Finserv and HDFC Life Insurance.

Financial services holding company Bajaj Finserv saw a 6.3 per cent increase in value before the record date for a stock split and bonus share issue.

Increasing 4.7 per cent, HDFC Life Insurance Company reached its highest level since June 9. According to Reuters, the British asset management abrdn plc would sell a stake in HDFC Life on Tuesday through a block deal.

“The good news for the markets is that a sliding US dollar is likely to further add to risk appetite,” said Prashanth Tapse, Senior Vice President for Research at Mehta Equities.

“A new bull market could start if the US inflation report, which is expected to be announced in the evening, comes below the streets’ expectation,” he added.

Asian bourses extended the winning momentum from a global stocks rally ahead of key US inflation data, which is predicted to come in softer and show a peak in price pressures in the world’s largest economy.

The Kospi, a stock market index in South Korea, jumped on the global rally bandwagon after a holiday and led a 0.6 per cent rise in MSCI’s largest index of Asia-Pacific shares outside of Japan. Nikkei in Japan added 0.3 per cent.

After the S&P 500 had its greatest four-day run since June on Monday as a result of strong pre-order for Apple’s iPhone 14 Pro Max, US stock futures were stable ahead of the US consumer price index-based inflation report, which will indicate and dictate the interest rate path.

Treasury yields and the dollar eased.

US bond markets imply that investors are growing more optimistic that the escalating inflationary pressures this year will be contained.

A gauge for where markets estimate inflation to be, the so-called breakeven rates on Treasury Inflation Protected Securities (TIPS) have decreased along with the cost of hedging high inflation.

Any potential upside surprise will likely see more volatility in rates,” Giulia Specchia, a macro strategist at UBS Group AG in Sydney, told Bloomberg. “We do expect the monthly pace of inflation to slow notably over the remainder of the year.”

Oil price declines have markets hopeful that US headline inflation will stabilise or slow, which is likely to ease the need for additional interest rate hikes in the future as currently feared based on the Federal Reserve’s rhetoric.

However, analysts caution that core inflation is expected to continue and that the consequences for rates in the near term are not clear.

“It’s too early to be celebrating the end of inflation, as some market participants seem already to be doing,” Rob Carnell, an Economist at ING, told Reuters.

Crude prices have fallen nearly a third since mid-June and back to levels before Russia invaded Ukraine late in February, trading below $100.



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Stocks to watch: Adani Enterprises, UPL, Zee Ent, Hero Moto, Tata Motors



Stocks to watch today: A positive start is likely for the Indian equity markets on Friday amid mixed global cues. At 7:40 am, the SGX Nifty Futures quoted 17,601 levels, up over 50-odd points.


Globally, the US markets saw minor recovery on Thursday. Dow Jones climbed over 150 points, to close 0.4 per cent higher, while the S&P 500 gained 0.3 per cent. NASDAQ Composite, however, dropped to 0.2 per cent. Further, the US equity futures were flat on Friday ahead of the US jobs report.


Asia-Pacific markets, too, were volatile in Friday’s early trade. Nikkei 225, Kospi, Kosdaq, S&P 200 advanced up to 0.9 per cent.


Meanwhile, back home, here is a list of stocks that will see some action in trade on Friday:


Adani Enterprises: The conglomerate is set to enter the NSE Nifty50 index, replacing Shree Cement at the exchange. Factors like free float market capitalization drove changes and will be effective from September 30, 2022. According to Edelweiss Securities, the inclusion of Adani Enterprises on the Nifty50 could result in a net inflow of around $213 million, while Shree Cement will see an outflow of $87 million. READ MORE


UPL: The company elevated Mike Frank to Chief Executive Officer (CEO) and will include him in the member of the UPL’s Group Protection Board of Directors. Frank had joined the company earlier this year, as President and Chief Operating Officer of UPL’s Crop Protection business based out of their London headquarters. READ MORE


Hero MotoCorp: The two-wheeler major reported 92 per cent increase in total sales at 4.6 lakh units in August 2022 from 4.5 lakh units, in the year-ago period. Exports, however, declined to 1,868 units from 22,742 units in the corresponding period of last year. The company expects growth momentum to sustain on the back of festive season trends, better monsoon leading to healthier crop produce, and positive consumer sentiments. READ MORE


InterGlobe Aviation: According to the Directorate General of Civil Aviation (DGCA), an IndiGo aircraft enroute to Udaipur returned to New Delhi due to engine vibrations and the plan was grounded. The flight was operated by an A320 neo aircraft, which did an air turnback after there were vibrations in engine 2. The DGCA will conduct a detailed probe into the incident. READ MORE


Aurobindo Pharma: The pharma major’s wholly-owned arm, CuraTeQ Biologics, plans to invest around Rs 300 crore on capacity expansion of biologics manufacturing facilities. The board of CuraTeQ Biologics approved establishment of another mammalian cell culture manufacturing facility of higher capacity to fulfill future needs. Besides, the company also approved contract manufacturing operations for biologics. READ MORE


Indian Bank: The state-owned bank revised marginal cost of funds-based lending rates (MCLR) by 0.10 per cent across tenors. It has also revised the lending rates benchmarked on treasury bills. The benchmark one-year MCLR will be 7.75 per cent from September 3, as against the existing rate of 7.65 per cent.


LIC: The insurer plans to raise market share in non-participating insurance products and diversify their channel mix. With a market share of 65 per cent, Life India Insurance (LIC) offers 17 individual participating products, 17 individual non-participating products, 11 group products and 7 products with rider benefits.


Zee Entertainment: The company wrote to the Competition Commission of India (CCI) for permission to merge operations with Sony Entertainment. The company shared TV viewership market share data for the fiscal year ending March 2022 and year-to-date data of the ongoing financial year – FY23. The latest data suggested that the merged entity would have lower market share and not lead to any concentration of power.


Tata Motors: The automaker saw total sales surge 36 per cent to 78,843 units in August from 57,995 units in the same month of the previous year. Total domestic sales, too, increased 41 per cent to 76,479 units in August 2022 from 54,190 units in August 2021.





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Stocks to watch: L&T, Adani Power, Ambuja Cements, LIC, Paytm, JSW Steel, Wockhardt



Stocks to watch today: After domestic markets snapped eight-day winning streak on Friday, choppy momentum is likely to stay intact on Monday amid sour mood overseas. As of 7:32 AM, the SGX Nifty Futures quoted 17,670 levels, indicating a downside of 88-odd points on the Nifty50.


Globally, the US markets faltered in trade on Friday amid rate hike fears. Dow Jones dropped over 200 points to close at 0.8 per cent lower, while the S&P 500 slipped 1.2 per cent, and NASDAQ Composite declined 2 per cent.


Asia-Pacific markets, too, lost in tandem in Monday morning’s trade. South Korea’s Kospi shed 0.7 per cent and Hong Kong’s Hang Seng was down 1 per cent.


Back home, rupee movement, foreign fund flows, and August F&O expiry will guide markets this week.


Meanwhile, here are few stocks that will likely see some action on Monday:


L&T: The engineering major commissioned a new green hydrogen plant at Hazira in Gujarat. After five months of sealing deal with Indian Oil Corporation and ReNew Power, the company moved a step forward for the production of green hydrogen and electrolysers. READ MORE


Adani Power: The company will acquire thermal power assets of DB Power for nearly Rs 7,017 crore in an all-cash deal. The initial term of the agreement will be completed by October 31, 2022, which may be extended by mutual agreement. The proposed transaction will help Adani Power to expand offerings and operations in the thermal power sector in the state of Chattisgarh, said the management. READ MORE


Future Enterprises: More whammy for the debt-ridden Future Enterprises as the company defaults on payments of interest of two non-convertible debentures (NCDs) of around Rs 12.6 crore. The Future Group has missed interest payments of several NCDs in the past three months. READ MORE


Central Bank of India: The state-owned bank inked pact with co-lending partnerships Protium Finance and Incred Financial Services to offer loans to the MSME borrowers. The lender expects the partnerships to provide greater expansion of the portfolio by the bank and to these players. READ MORE


Ambuja Cements, ACC: The Adani Group is likely to launch open offer on Friday, August 26 worth Rs 31,000 crore to acquire 26 per cent stake in each Swiss firm Holcim’s Ambuja Cements and ACC. The managers of open offer – ICICI Securities and Deutsche Equities India – will oversee tendering of shares in the open from August 26 till September 9, 2022. READ MORE


Wockhardt: The drug firm tied up with various partners to roll out products in the US markets as their Illinois based manufacturing plant is set to relieve all workers in a phased manner as part of business restructuring in the US market. The Mumbai-based company engaged with US Food and Drug Administration (USFDA) approved manufacturing partners in the US market, after due diligence and inspection of their facilities. READ MORE


Paytm: Shareholders of One97 Communications have approved re-appointment of Vijay Shekhar Sharma as managing director and chief executive officer of the company. That apart, Paytm’s President and Group Chief Financial Officer Madhur Deora was reappointed as well.


LIC: The insurance behemoth witnessed a decline of nearly 20 per cent in death claims in the first quarter of this fiscal with the COVID impact seen to be ebbing. In the June quarter of the previous fiscal, settlement of death claims was to the tune of Rs 7,111 crore, which for Q1 of this year was Rs 5,743 crore.


Gensol Engineering: The company approved acquisition of a majority stake in Gensol Electric Vehicles, which would further acquire technical and business know-how and brand name of electric vehicles from the US-based company. They will also raise Rs 140 crore from promoters and non-promoters via equity shares on a preferential basis at an issue price of Rs 1,036.25 a share.


Oriental Hotels: Nippon Life India Trustee offloaded 1.95 lakh equity shares, or 0.1 percent stake, in the company through open market transactions. With this, their shareholding in the company reduced to 3.1687 percent, down from 3.2783 percent.


AstraZeneca Pharma India: The pharma company received import and market permission from the Drugs Controller General of India for Olaparib film-coated tablets to treat BRCA-mutated HER2- negative high-risk early breast cancer.


JSW Steel: The company has entered into a 50-50 joint venture agreement with National Steel Holding (NSHL) for establishing scrap shredding facilities in India. NSHL is engaged in the business of metal recycling, collection, and processing based in Auckland, New Zealand.


Stocks in F&O ban: Balrampur Chini Mills, Tata Chemicals, and Delta Corporation were banned in the F&O ban period on Monday, August 22.





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Sensex, Nifty Open Higher Even As Global Stocks Drift On Recession Concerns


Stock Market India: Sensex, Nifty jump higher early on Tuesday

Equity benchmarks opened significantly higher even as Asian shares struggled for direction early on Tuesday, weighed by worries over global growth following weak China data that knocked oil prices and commodity-linked currencies.

The 30-share BSE Sensex index jumped 414.45 points, or 0.7 per cent, to 59,877.23 and the broader NSE Nifty index rose 112.65 points, or 0.64 per cent to 17,810.80.

Indian markets were shut on Monday as the nation celebrated its 75th anniversary of Independence, while the currency and debt markets remained closed on Tuesday on account of ‘Parsi New Year’.

Previously, both the benchmark bourses ended Friday on a high, extending gains for a fourth straight week and marking the longest winning streak since January, before data showed India’s consumer inflation dipped to 6.71 per cent in July, aided by a slower increase in food and fuel prices. 

Among the Nifty 50 companies, 40 were in the green and the rest 10 in the red, National Stock Exchange data showed.

Banking and auto stocks gained in India, with the Nifty Auto index up 1.1 per cent.

Shares of Life Insurance Corporation of India rose 2.5 per cent after the country’s biggest insurer posted a 20 per cent jump in June-quarter premium income on Friday.From the Sensex pack, Asian Paints, Mahindra & Mahindra, Nestle India, Axis Bank, IndusInd Bank, HDFC Bank and HDFC were the lead gainers. On the other hand, Bharti Airtel and Tata Steel were the laggards.

The benchmark indices, Sensex and Nifty, have gained almost 11 per cent during the last four weeks cumulatively, recouping all of the losses they have sustained in 2022. The domestic equity markets had their best week in July since February 2021.

“Steady decline in retail inflation, Brent crude falling to $94 and steady buying by FIIs augur well for the markets. However, high valuations are a concern. While remaining invested, investors must exercise caution chasing this rally,” V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, told ANI.

A largely positive trend in global equities and foreign capital inflows have supported domestic equity markets.

Foreign institutional investors (FIIs) were net buyers in the Indian capital market as they purchased shares worth Rs 3,040.46 crore on Friday, according to the latest exchange data.

After falling on Monday, MSCI’s largest index of Asia-Pacific shares traded outside of Japan increased by 0.2 per cent. Although MSCI’s benchmark index has recovered 5 per cent from the year’s lows, it is still down 15 per cent for the year as a whole.

The disappointing Chinese activity statistics released on Monday, which covered industrial output and retail sales, dampened the mood just as investors were finding solace in a four-week surge in global stocks that sent markets to their best levels in more than three months.

Also, A further indication that the world’s largest economy is slowing due to the Federal Reserve raising interest rates is that both US single-family homebuilders’ confidence and New York state factory activity declined in August to their lowest levels since the beginning of the COVID-19 pandemic.

“In short, the risks of a global recession are suddenly much clearer. Then again, they were ‘always’ clear to some,” Rabobank said in a note. “And does anyone think that a central-bank pivot will make them less likely at this stage?”

On Tuesday, the overall picture on Asian stock exchanges was mixed, with South Korean equities up 0.5 per cent while benchmarks in Tokyo and Taiwan barely changed.

After data revealed that economic activity and credit expansion both sharply slowed in July, China’s central bank surprisingly cut interest rates, sending Chinese markets higher. After falling on Monday, the CSI 300 index tacked on 0.1 per cent gains.

Major indexes on Wall Street rose on Monday, recovering losses from earlier in the session.

In anticipation of a slowing in US inflation that would decrease the rate at which the Fed raises interest rates, shares have increased for four consecutive weeks.

The first and second quarters of the US economy saw a contraction, escalating the ongoing discussion of whether or not the nation is currently experiencing a recession.

In Europe, concerns about growth also dominated the conversation.

A fragile demand outlook hit oil prices as they extended losses from the previous session.

Oil prices crashed further on Tuesday, extending losses from the previous session, after economic data from China, the world’s largest crude importer, spurred fresh concerns about a potential global recession that could hit energy demand.

Brent crude futures fell 90 cents, or 1 per cent, to $94.20 a barrel. WTI crude futures fell 81 cents, or 0.9 per cent, to $88.60 a barrel. Oil futures fell about 3 per cent during the previous session.

“Crude oil witnessed a sharp rebound in last few days but failed to hold on to the gains and set fresh February lows which shows that the bears are still in control. Growth worries and shaky risk sentiment amid tightening debate may keep pressure on prices,” said Ravindra Rao, Head of Commodity Research at Kotak Securities.

On Tuesday, the dollar index, which measures the greenback against six major peers, held steady at 106.53, just below the previous session’s peak of 106.55, the strongest since Monday of last week.

The euro, the most heavily weighted currency in the dollar index, was flat at $1.0158 after earlier slipping to the weakest since August 5 at 1.0154.

The Australian dollar, a commodity-linked currency, fell as low as $0.70005, threatening to drop below the psychological 70 cent mark for the first time since Wednesday. New Zealand’s kiwi slipped to $0.6349, also the lowest since Wednesday.



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