Share Market LIVE: Sensex up 200 points; Nifty near 16,200; L&T, Axis Bank lead
Sensex, Nifty extended the winning streak of the last two days, rising nearly 0.4% on Friday. Stocks in Asia pared some gains and the safe haven yen strengthened after the shooting of former Japanese Prime Minister Shinzo Abe injected uncertainty into a trading session earlier lifted by easing recession fears.
Nifty at noon: Gainers/Losers at this hour
Sensex at noon: Up 200 points: L&T, NTPC, Axis Bank remain toppers; Maruti, Tata Steel drag
BSE Midcap in red, underperforming broad market indices; RBL Bank, Max Financial drag
CBI registers fresh case against Chitra Ramkrishna and Ravi Narain
The CBI has registered a fresh case against former National Stock Exchange (NSE) chiefs Chitra Ramkrishna, Ravi Narain and ex-Mumbai police commissioner Sanjay Pandey, on the directions of Ministry of Home Affairs (MHA), for allegedly tapping phones of NSE employees between 2009 and 2017. Since early morning CBI has conducted raids at 19 locations.
Mutual Fund Data: Net equity inflow drops to ₹15,480 crore in June vs ₹17,669 crore in May
-Hybrid fund outflow at ₹2,279.4 cr June vs ₹5,123.2 cr inflow May
-Credit risk outflow at ₹482 cr vs ₹730 cr outflow
-T otal debt scheme outflow at ₹92,248 cr vs ₹32,722 cr outflow
Sensex’s valuation corrects twice vis-à-vis its value – a first in two decades
For the first time in twenty years, the valuation multiple of India’s key benchmark index, the Sensex, has declined twice than its price, or the value of the index in points.
An analysis by Edelweiss Securities Ltd showed that since the year 2000, price and valuation correction in the Sensex have always been in sync. The maximum variance has been 6-7%. (Read more)
Ravindra Rao, VP- Head Commodity Research at Kotak Securities on gold
COMEX gold trades mixed near $1740/oz after a 0.2% gain yesterday. Gold has steadied after testing 9-month low as US dollar index paused after lack of surprise form FOMC minutes and amid positioning for US non-farm payrolls data which is expected to show slower jobs growth. However, weighing on price is monetary tightening stance of Fed and other central banks and weaker investor interest as is evident from ETF outflows. Gold has fallen sharply and may see some recovery however a sharp rise is unlikely unless US dollar corrects.
M&M’s expanding presence in EVs takes the stock to a new high
Shares of Mahindra & Mahindra rose 5.4% in early trade on Friday on NSE taking the stock to a new 52-week high of Rs1194.90 apiece. This comes on the back of the company’s announcement of executing an agreement with British International Investment, UK’s development finance institution, to invest up to Rs1,925 crore or $250 million each into a new wholly owned EV subsidiary of M&M.
“Net value accretion to M&M shareholders will depend on its ability to leverage the electrification trend and expand its market share in the SUV segment. Currently, we are not valuing the EV business separately as it doesn’t have any material presence in the electric PV segment,” said Motilal Oswal in a report.
Glenmark Pharmaceuticals launches sitagliptin and its fixed-dose combinations for adults with type 2 diabetes in India
Market view: Sameet Chavan, chief analyst-Technical and Derivatives, Angel One
Nifty’s 16000-16045 odd level should act as the demand zone and cushion any minor blips. The 16200 sub-level is likely to be seen as the immediate resistance, breaching which the next potential hurdle could be seen around the 16325-16400 zone.
Going forward, our market is likely to remain upbeat in the near term, wherein any minor dip could be seen as an opportunity for the bulls to add long positions. From here on, we may expect gradual moves in key indices, but individual pockets are now likely to outshine. Hence, it’s advisable to keep focusing on such potential movers, which are likely to provide better trading opportunities. Also, we would like to reiterate not being complacent with the gains and staying abreast with daily developments across the globe.
Razorpay, Pine Labs among firsts to get RBI nod for payment aggregator, gateway licences
The move comes after the central bank had returned a large number of payment aggregator licence applications earlier this year, that it had received from many firms. The RBI is now expected to release a complete list of the players who have been approved to operate as payment aggregators in the country shortly, the report added.
ICICI Securities on retail industry’s Q1FY23 earnings preview
We expect companies in our retail coverage universe to deliver a strong show in Q1FY23 (the only non-disrupted quarter in the last two years). As per our channel checks, fashion retailers, on a per store basis, have registered a recovery rate in the range of 110%+ of pre-Covid levels. The optimism was driven by improved consumer sentiments, wardrobe refresh and increased spend on discretionary purchases as consumer wallet share on non-essentials had remained subdued in the last two years. Also, fashion lifestyle retailers had built up healthy inventory for spring summer season in Q4FY22 after curtailing purchases for nearly two years (on an average, absolute inventory increased 1.5x YoY). On a favourable base of Q1FY22, we expect revenues to more than double (2.4x YoY) for our companies in our coverage universe (impressive three-year CAGR: 17%). In a bid to negate inflationary pressure, apparel retailers have taken price hikes in the range of 15-20%. Expect EBITDA margins to improve 80 bps QoQ (down 70 bps vs. Q1FY20 levels) to 12.3% in Q1FY23E. During the quarter, retailers continued calibrated expansion of their store network with opening of 10 D-Mart stores, 19 Tanishq stores, 56 Titan EyeCare stores, eight Zudio stores, three Westside stores and 11 V-Mart stores (including four Unlimited stores). Companies have restructured their existing store networks and aggressively enhanced footprint on a pan-India basis with emphasis on penetrating deeper in Tier III-V cities to capture potential demand pockets.
Nifty IT up 0.4%; TCS flat ahead of June quarter earnings
Covid Update: India adds 18,815 cases, 38 deaths in last 24 hours
Positivity rate at 4.95%, recovery rate is 98.52% & mortality rate is 1.21%
Nifty sectoral indices largely positive; only metal, realty in red
Global gold ETFs log second month of outflows, India see minor inflows: WGC
Global gold exchange-traded funds (ETFs) registered 28 tonnes or $1.7 billion of outflows in June, which the second straight month of selloff, according to a report by the World Gold Council. In India, minor net inflows continued in June, primarily driven by market volatility and a depreciating rupee attracting investment into Indian gold ETFs
Indian rupee falls 12 paise to 79.25 against US dollar in early trade
M&M up 2%; British International Investment will invest up to ₹1,925 crore in new EV company to be set up by co
Nifty crosses 16,200: M&M, Coal India top gainers, Asian Paints, Tata Steel prominent laggards
Sensex at open: Up 250 points; M&M, L&T, ICICI Bank top gainer, Titan, Tata Steel, Asian Paints lag
Sensex, Nifty open higher; TCS, M&M eyed
Sensex jumps 350 points in pre-opening session
Sensex, Nifty firm in pre-open; IT stocks in focus
Indian VCs hit RBI wall with overseas investment hurdle
Multiple Indian funds have urgently petitioned the Securities and Exchange Board of India (Sebi) to ease the overseas investment cap for Alternative Investment Funds (AIF) to avoid missing out on deals but are facing a steep battle amid the sharp fall in the rupee in recent months, three people aware of the development said.
Overseas investments by Alternative Investment Funds (AIF) cumulatively hit the $1.5 billion threshold just last week, one of the people cited above said. Sebi allows 25% of an AIF’s investible corpus to be invested overseas at an individual level with a $1.5 billion cap at an aggregate level for all AIFs.
IndiGo reinstates 8% of its pilots’ salary days after facing delays
Days after IndiGo suffered major flight delays due to cabin crew unavailability, the airline reinstated pilot salaries by 8% that will be effective from 1 August. “On 31st March, we were able to reinstate 8% effective 1st April, 2022 and had committed to you that an additional reinstatement of 6.5% would be implemented from 1st November 2022 based on the environment,” read an internal letter sent to the pilots
Japan’s former prime minister Shinzo Abe apparently shot at and collapsed during a campaign speech: Reports
Gold prices inch higher as dollar softens
Gold firmed on Friday as the dollar came slightly off two-decade highs, but bullion was set to post its biggest weekly drop in more than a month as the elevated greenback hit demand. Spot gold firmed 0.3% to $1,744.07 per ounce by 0106 GMT. U.S. gold futures rose 0.2% to $1,742.50. The dollar edged down from 20-year highs, taking some weight off greenback-priced gold.
Oil slips in early trade
Oil prices were down in morning trading after having rebounded overnight. Brent crude futures fell 34 cents to $104.33 a barrel, while U.S. WTI crude was down 39 cents to $102.34.
India Inc’s offshore bond issuances fall to the lowest in 4 yrs
The pandemic-era overseas borrowing boom by Indian companies has started to slow as interest rates rise, the currency weakens, and the appetite for emerging market bonds diminishes.
Measures announced by the Reserve Bank of India easing overseas borrowings by companies, including doubling the annual limit under the automatic route to $1.5 billion and raising the all-in cost cap for foreign debt, though welcome, will do little to spur the market in the near term, experts said. (Full report)
Stocks to Watch: TCS, M&M, Tata Power and others in focus
Here’s is the list of top 10 stocks that will be in focus today.
Firm global cues likely to lift Indian indices on Friday
Indian stocks indices are likely to trade firm on Friday on firm global cues. continued its northward journey for second straight session on Thursday. The SGX Nifty is aslo trading higher, indicating a positive start for domestic equities. IT stocks will be in focus as TCS reports its first quarter earniing today.
On Thurday, the BSE Sensex surged 427 points to end at 54,178, while the Nifty rose 143 points to 16,133.
Asian markets rise
Stocks in Asia climbed on Friday, bolstered by the possibility of major stimulus in China as well as hopes that policy makers can get inflation under control without causing a global economic downturn.
Japan, Hong Kong and China helped the Asian share index to add about 1%. US and European equity futures fluctuated.
Wall Street ends firm overnight
US stocks rallied for the fourth straight day on optimism that the Federal Reserve will be able to curb inflation without tipping the economy into a recession.
The S&P 500 rose 1.5%. The Dow Jones Industrial Average rose 1.1%, while the Nasdaq closed 2.3% higher.
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