Stock Market LIVE: Indices turn flat; IT, Pharma under pressure; PSU Bank shines

Rockwell Automation expands to 3,000 people in India; aims to maintain growth trajectory

Rockwell Automation has grown to a 3,000-people-strong organisation in India from 800 people a decade ago, and aims to maintain its growth trajectory, a senior company official has said.

The Milwaukee, US-headquartered Fortune-500 company looks at India both as a market given the rapid strides in manufacturing in the country, and also as a talent base to aid its global operations, the company’s regional director for India, Dilip Sawhney told PTI in an interaction here.

Its president for Asia Pacific, Scott Wooldridge, said its overall staff strength has grown to 3,000 people in India from 800 a decade ago, and said India has seen a lot of easing on issues like taxation and permissions for setting up new facilities. (PTI)

Noon Update: Indices trading flat amidst negative global cues; IT and Pharma drag while PSU Bank shines

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Govt aims to appoint private sector professional as first CEO of LIC

India aims to appoint a private sector professional as the first chief executive of the Life Insurance Corporation of India in an effort to modernise its largest insurer after a disappointing stock market debut, two government officials said. A private sector appointee to lead India’s largest insurer, which manages 41 trillion rupees ($500.69 billion) in assets, would be a first in its 66-year history. The Ministry of Finance, which oversees the LIC, did not respond to emailed questions. (Read More)

Power giant NTPC will turn to nuclear in climate goal chase

NTPC Ltd., India’s top power producer, is planning to build a massive nuclear fleet that’ll aid the nation’s push to shift away from coal and curb emissions to hit net-zero by 2070.

The state-run company aims to install 20 to 30 gigawatts of nuclear capacity by 2040, according to a person familiar with the plans, who requested anonymity to discuss the private proposals and said the target remains tentative. India currently has 22 operational reactors with about 6.8 gigawatts of capacity. (Read More)

Axis Bank leads the stock chart; climbs 2% 

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Media Index going strongly, gains 1% in today’s trading

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Geojit Financial Services view on IT Sector outlook post the massive lay-offs

Vinod Nair, head of research at Geojit Financial Services: Major U.S. IT companies felt the burn of macroeconomic headwinds and prepared by trimming their employee strength through massive layoffs to improve margins. However, the revenue of the major Indian IT companies in the last quarter (Q2 FY23) was consistent with the estimates with healthy outlook commentary. The average margins of top IT companies expanded by 60bps on improving operational efficiencies. Despite the macroeconomic headwinds that prevailed in the global markets, most of the revenue was supported by cloud, engineering, and digital services. Going forward, healthy deals in the areas are estimated to drive growth. With fresh hires, a return to office policies, and improved cost-cutting measures, margins are likely to normalise in the coming quarters. After a major correction the valuation of IT stocks have moderated by 1/3rd, which is marginally above average and accommodative on the long term basis though volatility can prevail in the short term due to global slowdown.

Infosys ₹9,300 cr share buyback plan commences on 7 Dec. How to participate?

IT-giant Infosys shares are in focus after its buyback offer commenced. On Thursday, the fourth largest company in terms of market share was trading broadly flat. The share buyback worth ₹9,300 crore commenced on December 7 and will continue till June 6, 2023. On the first day of the offer, Infosys bought back equity shares worth nearly ₹202 crore on exchanges, as per the regulatory filing.

On Wednesday, in a regulatory filing, Infosys revealed that the company bought back 25,000 shares on BSE and 12.23 lakh shares on NSE at an average price of ₹1,615.54 apiece. The total shares on the first day bought were to the tune of 12.48 lakh on stock exchanges aggregating to around ₹201.62 crore at the average price. Kotak Securities was the broker for the transaction. (Read More)

Dharmaj Crop Guard shares surge after positive market debut

Shares of Dharmaj Crop Guard Ltd made a market debut on Thursday with the stock listing at ₹266 apiece on the NSE, a premium of more than 12% as compared to its IPO issue price of ₹per 237 share. On the BSE, Dharmaj Crop Guard shares started trading at ₹270 apiece, and later surged to ₹275 in early deals.

The Initial Public Offer (IPO) of Dharmaj Crop Guard was subscribed 35.49 times on the last day of subscription on Wednesday, November 30, 2022. The issue received bids for 28,43,51,820 shares against 80,12,990 shares on offer. (Read More)

Sun Pharma slips 3%, amongst biggest laggards

The US Food and Drug Administration (FDA) had listed Sun Pharmaceutical Industries Ltd’s facility in Gujarat under an import alert, the company said today. The import alert means all future shipments of products made at the Halol plant can be refused admission to the US market until the facility becomes compliant with the FDA’s Current Good Manufacturing Practice standards, Sun Pharma said in a statement.

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PSU Bank index shines as it gains 1% in early trading; almost all stocks in green

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Indian bond yields seen lower tracking fall in oil, U.S. yields

Indian government bond yields were expected to open lower on Thursday, tracking a slump in oil prices as well as U.S. yields.

The benchmark 10-year yield was likely to move in a 7.22%-7.27% band today, a trader with a private bank said. The yield ended higher for a fourth straight session at 7.2693% on Wednesday. (Read More)

Siemens shares extend rally after winning ₹20,000 cr Dahod locomotives project. Should you buy?

One of the leading industrial manufacturing companies, Siemens witnessed strong buying for the third consecutive day on Thursday. In the early deals, the shares gained nearly a per cent on BSE. So far this week, Siemens shares held a robust bull run and the reason would be the company emerging as the lowest bidder (L1) for the 9000 HP electric locomotives project in Dahod, Gujarat. This order is expected to boost Siemens’ revenue growth going forward. Experts are optimistic about the stock.

At around 9.22 am, Siemens shares traded at ₹2,922.60 apiece up by ₹17.45 or 0.60% on BSE. The shares were near the day’s high of ₹2,930.55 apiece. Its market cap reached over ₹1.04 lakh crore. On the previous day, Siemens shares climbed by nearly 7%. (Read More)

Eicher Motors gains at early trading; climbs 1% 

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LTS Investment Fund sells 5,46,379 shares of NDTV in a bulk deal

On Wednesday, LTS Investment Fund sold 5,46,379 shares of New Delhi Television Limited (NDTV) in a bulk deal at a price of ₹358.53. LTS is the multi-holding and investment platform of a group of partners listed on the National Stock Exchange (NSE). On Tuesday, 4,71,698 shares of NDTV were sold in a bulk transaction by the Mauritius-based Vikasa India EIF Fund. (Read More)

Indices open flat on Thursday amidst negative global cues and fear of recession

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Sula Vineyards IPO: Check latest GMP ahead of subscription opening next week

The three-day initial public offering (IPO) of wine maker Sula Vineyards will open for public subscription next week on Monday, December 12, 2022 and conclude on Wednesday, December 14, 2022. The price band has been fixed at ₹340-357 a share. The bidding for anchor investors will open on Friday, December 9.

As per market observers, Sula Vineyards shares are commanding a premium (GMP) of ₹43 in the grey market today. The company’s shares are expected to list on leading stock exchanges BSE and NSE on Thursday, December 22, 2022. (Read More)

Sensex in flat-to-green zone at the preopen session; Axis Bank. L&T, Ircon in focus

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Geojit Financial Services on today’s market: PSU banking space is likely to continue to remain resilient

Dr V K Vijayakumar, chief investment strategist at Geojit Financial Services: Even while reaffirming that “the Indian economy is doing well in a world of slowing growth and inflation fears” RBI Governor Saktikanta Das indicated that “the global spillovers are slowing down India’s economic momentum”. In this context, the sharp dip in Brent crude below $78 has come as a shot in the arm of the economy. This has the potential to act as a fiscal stimulus for the economy while the monetary policy is tightening. Next week will be significant for global equity markets since we will have the US inflation print and the FOMC meet. The market is likely to consolidate around the current levels till then. The PSU banking space, particularly the leading names, is likely to continue to remain resilient. Capital goods stocks are showing strength.

Multibagger share declares bonus issue, stock split; gains over 150% in 1 year

Rural-focused HFC, Star Housing Finance will issue bonus shares in the ratio of 1:1 and further carry a stock split in the ratio of 1:2. The company has fixed a record date for next week to determine eligible shareholders for the bonus issue and stock split. The company is a smallcap stock and a multi-bagger. In a year, the stock has climbed by more than 150%. The stock is currently near its 52-week high. (Read More)

Reliance Securities Stock in Focus for Today: Godawari Power & Ispat Ltd

STOCK IN FOCUS

GPIL (CMP 330): We have a positive stance on GPIL considering a) strong demand domestically for the company’s high-grade pellets that command a premium over other makers and b) debt-free balance sheet. By FY24E, GPIL is slated to have net cash to the tune of Rs15bn. We have a BUY rating on GPIL, with a 12-month SOTP-based.

Intraday Picks

COLPAL (PREVIOUS CLOSE: 1,620) BUY

For today’s trade, long position can be initiated in the range of Rs1,608-

1,600 for the target of Rs1,649 with a strict stop loss of Rs1,584.

RECLTD (PREVIOUS CLOSE: 113) BUY

For today’s trade, long position can be initiated in the range of Rs113-112

for the target of Rs119 with a strict stop loss of Rs110.

ASIANPAINT (PREVIOUS CLOSE: 3,227) BUY

For today’s trade, long position can be initiated in the range of Rs3,207-

3,190 for the target of Rs3,280 with a strict stop loss of Rs3,154.

Inox Wind promoters infuse ₹623 cr for paring debt

Inox Wind on Wednesday said its promoters have infused an amount of ₹623 crore in the company and the fund was used for repaying advances received from Gujarat Fluorochemicals Ltd (GFL).

The board had on August 30, 2022, approved raising up to ₹800 crore by way of issuance of 0.01 per cent non-convertible non-cumulative participating redeemable preference shares on a private placement basis to the promoter/ promoter group entities. This was consequently approved in the company’s annual general meeting (AGM).

“Promoters of Inox Wind, India’s leading wind energy solutions provider, have infused ₹623 Crores in Inox Wind Ltd,” a company statement said.

Inox Wind has used these funds to repay GFL the advances (net off wind capacity expected to be commissioned) it had received for setting up wind power capacity, it added. (PTI)

Stocks to Watch: Axis Bank, L&T, 5Paisa Capital, PTC India, Ircon International, Bank of Maharashtra, Macrotech Developers, Triveni Engineering, Inox Wind, and BigBloc Construction

NSE continues to list Gujarat Narmada Valley Fertilizers & Chemicals, Punjab National Bank, and Indiabulls Housing Finance stocks on the list of banned securities under the F&O segment for Thursday trading as they have crossed 95% of the market-wide position limit. (Read More)

Oil gives up the year’s gains, closing at 2022 low

The price of oil fell to its lowest level this year on Wednesday, forfeiting all of the gains since Russia’s invasion of Ukraine exacerbated the worst global energy supply crisis in decades.

The world’s most actively traded commodity surged to nearly $140 a barrel in March, close to an all-time record, following the launch of what Moscow called a “special operation” in Ukraine that has raged ever since.

The market has been steadily declining in the latter months of the year as economists brace for weakened worldwide growth in part due to high energy costs. Wednesday’s losses were driven by bigger-than-expected increases in U.S. fuel stocks. (Read More)

India seeks preferential treatment from global fertiliser suppliers; says will not tolerate cartelisation

With fertiliser subsidy expected to rise sharply to USD 27 billion this fiscal on high global rates, the government on Wednesday asked global suppliers to give preferential treatment to a big market like India and asserted that it will not tolerate price cartelisation.

India is a major importer of fertilisers as well as raw materials. It imports about 9 million tonnes of urea to meet domestic demand. Significant quantities of DAP (di-ammonium phosphate) and MoP (muriate of potash) are also imported.

Addressing a conference organised by the Fertilisers Association of India (FAI), Chemicals and Fertilisers Minister Mansukh Mandaviya said the government has taken various reforms and increased subsidy to ensure farmers get soil nutrients at an affordable price. (PTI)

Bitcoin below $17,000, other crypto prices today also plunge

Cryptocurrency prices today slipped with the world’s largest and most popular digital token Bitcoin trading more than a per cent lower at $16,830. The biggest token is down by three-quarters from its record high of $69,000.

On the other hand, Ether, the coin linked to the ethereum blockchain and the second largest cryptocurrency, also fell by over 2% to $1,228. Meanwhile, dogecoin price today was trading more than 4% lower at $0.09 whereas Shiba Inu was down by over 2% at $0.000009. (Read More)

Uniparts India IPO: Latest GMP as all eyes on shares listing after allotment

The shares of the company are expected to list on the stock exchanges BSE and NSE next week on Monday, December 12, 2022. As per market observers, Uniparts India shares are available at a premium (GMP) of ₹55 in the grey market today.

The Initial Public Offer (IPO) of engineering systems and solutions provider Uniparts India was subscribed 25.32 times on the last day of subscription on Friday, December 2, 2022. (Read More)

BharatPe  slaps case against ex-MD’s wife

BharatPe has filed a case against its former managing director Ashneer Grover’s wife and former head of controls Madhuri Jain under Section 420, a person aware of the matter said.

The development comes months after Grover, along with his wife, were ousted by the BharatPe board over misappropriation of funds.

Section 420 of the Indian Penal Code (IPC) deals with the offence of cheating and dishonestly inducing the delivery of property. The maximum punishment for the offence is imprisonment for up to seven years and a fine. (Read More)

Vedantu hands pink slips to 385 employees reducing its workforce by 11.6%

Vedantu Innovation Pvt. Ltd has laid off employees for the third time this year, reducing its workforce by 11.6% as the edtech firm prioritizes profitability over growth. The decision comes as funding for edtech companies dries up, and they face increasing pressure from investors to turn profitable.

The Tiger Global-backed firm laid off 385 employees on Wednesday. Bengaluru-based Vedantu is offering severance pay and placement opportunities to the affected employees, said a person aware of the development, adding that post-layoffs, the company’s workforce stands at over 3,300. (Read More)

Bank of Maharashtra raises ₹348 crore from bonds

State-owned Bank of Maharashtra (BoM) on Wednesday said it has raised ₹348 crore from bonds to fund business growth.

The lender raised funds through private placement of Basel-III compliant tier II bonds, BoM said in a regulatory filing.

The paper of face value ₹1 crore each carries a coupon rate of 8 per cent, it added.

The bonds will be listed on the Wholesale Debt Market segment of the BSE. (PTI)

Rupee gains 3 paise to 82.47 against US dollar

The rupee pared initial losses and settled marginally higher at 82.47 against the US dollar on Wednesday after the Reserve Bank of India (RBI) hiked the repo rate by 35 basis points.

Easing crude oil prices also supported the domestic unit, forex traders said.

At the interbank foreign exchange market, the local unit opened at 82.74 and touched an intra-day high of 82.40 and a low of 82.75 against the greenback.

It finally settled at 82.47, registering a rise of 3 paise over its previous close of 82.50.

“In line with expectation, the RBI raised rates by another 35 bps. It lowered its FY23 GDP forecast to 6.8 per cent from 7 per cent,” said Gaurang Somaiya, Forex & Bullion Analyst, Motilal Oswal Financial Services. (PTI)

Triveni Engineering promoter to sell 7% stake

The promoter of Triveni Engineering Industries Ltd Dhruv Sawhney will pare his stake in the company through a secondary placement. This will comprise 17 million shares or a 7.03% stake in the company at ₹280-285 apiece, a discount of 3.04-4.75% to the ₹293.95 closing price of the stock on NSE on Wednesday.

The size of the placement aggregates ₹476 crore at the bottom end of the price range and ₹484.5 crore at the top end. After the sale, the promoter stake will drop to 61.23% from 68.26% . The trade date for sale is 8 December while the settlement date is 12 December. (Read More)

Axis Bank to raise funds via Tier II bonds worth ₹12,000 cr

Private lender Axis Bank on Wednesday announced it will raise funds by Tier II bonds aggregating to a total of ₹12,000 crore. The offer comprises of a base issue of up to 1,000 Bonds aggregating to ₹1,000 crores with a green shoe option to retain oversubscription of up to 11,000 Bonds aggregating to ₹11,000 crores, said Axis Bank in its regulatory filing. (Read More)

Slump in tech stocks helps send Wall Street to another loss

Wall Street ended a wobbly day of trading with more losses Wednesday, as a slide in technology companies helped pull stocks lower and Treasury yields fell broadly.

The S&P 500 slipped 0.2%, its fifth straight loss. The Nasdaq composite, which is heavily weighted with tech stocks, fell 0.5%, while the Dow Jones Industrial Average finished just barely in the green.

Economic updates later this week could give investors more insight into inflation’s path ahead and how the Fed will continue fighting high prices.

A growing number of analysts expect the U.S. economy to slip into a recession in 2023 but are unsure of its potential severity and duration. (AP)