Investors wait for the future course of action from the Fed as it is scheduled to meet next week and is expected to raise its benchmark interest rate by a half-percentage point. Inflation continues to remain on its radar which has made traders nervous
IT index tumbles 1.5% with all the stocks in red
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India’s Snapdeal to shelve $152 million IPO amid tech stocks rout
SoftBank-backed Indian e-commerce firm Snapdeal has decided to pull the plug on its $152 million IPO, the company told Reuters, making it the latest casualty of a meltdown in tech stocks that has soured investor sentiment.
Snapdeal filed its initial public offering (IPO) regulatory papers for approval in December 2021, a year that saw many stock market debuts and record fund raising by Indian startups. But many are delaying IPOs amid a stock market rout that has raised concerns over frothy tech valuations.
Snapdeal, which competes with larger rivals Amazon and Walmart’s Flipkart in India’s booming e-commerce space, filed a request this week with the country’s market regulator SEBI to withdraw its IPO prospectus, said one source with direct knowledge of the matter. (Reuters)
Google Ad Manager outage costs big websites ad sales
A Google service relied upon by many large websites to sell and display ads was down for about three hours Thursday, denying major news publishers revenue during the crucial holiday period, two sources familiar with the matter said.
“The issue with Google Ad Manager has been resolved and ad serving has now been restored for the affected users,” Google said in a tweet on Thursday evening. “We apologize for the inconvenience.”
News websites such as the New York Times, Washington Post, Wall Street Journal and Los Angeles Times were being affected by the issue, one of the sources said. (Reuters)
IndusInd Bank shines in early trade with a jump of around 2%
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Rupee gains 19 paise to 82.19 against US dollar in early trade
The rupee appreciated 19 paise to 82.19 against the US dollar in early trade on Friday on broad dollar weakness and a firm trend in domestic equities.
Forex traders said sustained foreign fund outflows weighed on investor sentiments and restricted the appreciation bias.
At the interbank foreign exchange, the domestic unit opened at 82.30 against the dollar, then gained further ground to touch 82.19, registering a rise of 19 paise over its previous close.
On Thursday, the rupee settled 9 paise higher at 82.38 against the US dollar. (PTI)
Sushmita Shukla appointed First Vice President, Chief Operating Officer of Federal Reserve Bank of New York
Sushmita Shukla, an Indian-origin veteran of the insurance industry, has been appointed as First Vice President and Chief Operating Officer at the Federal Reserve Bank of New York, making her the second-ranking officer at the prominent institution.
The appointment was approved by the Board of Governors of the Federal Reserve System, the New York Fed said in a statement Thursday.
Shukla, 54, has been appointed by the Board of Directors of the Federal Reserve Bank of New York as First Vice President and Chief Operating Officer, effective March 2023. (PTI)
PSU Bank index continues to remain strong, jumps 1.5% in early trading
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Geojit Financial Services on today’s market: Price action in PSU banking stocks indicate interested buying in this segment
Dr V K Vijayakumar, chief investment strategist at Geojit Financial Services: Equity markets will be looking forward to next week’s crucial meeting of the Fed. Since the ECB and Bank of England meetings also are due next week it would be important to know the leading central banks’ view on the emerging economic scenario and their policy response. A decisive turn in the market is likely to happen only after that. In India, the market is now responding to clear trends in sectors. The better-than-expected credit growth in the economy, now running at 17.2% as per the latest RBI data, is driving the rally in the Bank Nifty. Price action in PSU banking stocks indicates interested buying in this segment whose valuations are, even after the recent run-up, attractive.
HCL Tech tumbles 5% in early trading and drags the IT index into red
Shares of HCL Tech today slumped 5% to ₹1044 on BSE after its management indicated FY23 growth to be at the lower end of the 13.5% to 14.5% band. It was the biggest loser among the 30 Sensex stocks. In comparison, Sensex was flat.
Chief executive officer C Vijayakumar at company’s investor day said: “In October, we had increased our guidance from 13.5 to 14.5. we had certain assumptions which helped us to devise 16-17% services growth. we had assumed certain furloughs. But we are seeing a bit higher. BFSI is the segment which is little bit impacted by furloughs followed by tech companies,” he said. (Read More)
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Paytm Shares Jump in Mumbai as Board to Consider Buyback
Shares of One 97 Communications Ltd. surged in Mumbai, with the operator of India’s largest digital payments provider set to explore a buyback.
The company, which operates Paytm, on Thursday said its board is scheduled to meet on Dec. 13 to consider the proposal to repurchase fully paid-up equity shares. The stock climbed as much as 7%, the most in a week.
“The management believes that given the Company’s prevailing liquidity/ financial position, a buyback may be beneficial for our shareholders,” it wrote in an exchange filing. (Bloomberg)
Indices open in green with Sensex gaining 100 and Nifty adding 30 points
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China Factory-Gate Prices Remain in Deflation on Weak Demand
China’s factory-gate prices contracted again in November while consumer inflation eased as disruptions from Covid outbreaks and restrictions hurt manufacturing activity and reduced demand.
The producer price index fell 1.3% in November from a year earlier after declining by the same magnitude in October, the National Bureau of Statistics said Friday. Economists surveyed by Bloomberg had expected a 1.5% drop in prices.
Consumer inflation eased to 1.6% from 2.1% in October, in line with economists’ projections. Core inflation, which excludes volatile food and energy prices, was unchanged at 0.6%. (Bloomberg)
Sensex flat at the preopen session; Paytm, PTC India, HGS, HUL in focus
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Uniparts India IPO’s shares listing next week. Latest GMP
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. 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 ₹45 in the grey market today.
Uniparts India IPO of up to 1,44,81,942 equity shares had a price range of ₹548-577 a share. Since the IPO was entirely an Offer for Sale (OFS), the company will not receive any proceeds from the public issue. (Read More)
Reliance Securities Stock in Focus for Today: IndiGo
STOCK IN FOCUS
IndiGo (INDIGO) (CMP 2,019): We have a positive stance on Indigo considering the strong market share position, undisputed leadership, best cost structure, potential in the fastest-growing aviation sector and lower crude prices bringing early turnaround, we reiterate our BUY rating on INDIGO with a revised Target Price of Rs2,350, valuing the stock at an unrevised EV/EBITDAR multiple of 7.5x FY24E.
Intraday Picks
AMBUJACEM (PREVIOUS CLOSE: 588) BUY
For today’s trade, long position can be initiated in the range of Rs586-
582 for the target of Rs603 with a strict stop loss of Rs574.
DIVISLAB (PREVIOUS CLOSE: 3,287) SELL
For today’s trade, short position can be initiated in the range of Rs3,310-
3,325 for the target of Rs3,210 with a strict stop loss of Rs3,350.
PIDILITIND (PREVIOUS CLOSE: 2,762) SELL
For today’s trade, short position can be initiated in the range of Rs2,773-
2,788 for the target of Rs2,710 with a strict stop loss of Rs2,807.
Chemicals sector outlook brightens as risks recede
India’s speciality chemicals sector appears upbeat about its prospects, as companies aim to expand capacity to capitalize on growth opportunities after a period of sluggish earnings growth because of rising input costs.
Global uncertainties may still be cause for concern for the sector, but analysts have not yet seen any evidence of weakened demand and management commentaries are consistent with this view.
The capital spending plans of these companies suggest they are positioning themselves to tap robust growth opportunities.
The chemical industry continues to be attractive despite global uncertainties, analysts at HDFC Securities said. They believe that Indian companies could see new opportunities, including collaborations with technologically advanced global firms. (Read More)
Cryptocurrency prices today surge: Bitcoin, ether gain over 2%. Check latest rates
In cryptocurrencies, the world’s largest and most popular digital token Bitcoin trading more than 2% higher at $17,230. The biggest token is down by three-quarters from its record high of $69,000. The global cryptocurrency market cap today remained below the $1 trillion mark, even as it was up over 2% in the last 24 hours to $896 billion, as per the data by CoinGecko.
On the other hand, Ether, the coin linked to the ethereum blockchain and the second largest cryptocurrency, also gained by over 3% to $1,281. Meanwhile, dogecoin price today was trading more than a per cent higher at $0.09 whereas Shiba Inu was up at $0.000009. (Read More)
India inflation likely softened to nine-month low in November: Reuters poll
India consumer price inflation likely cooled to a nine-month low of 6.40% in November mainly due to a moderation in food prices, according to a Reuters poll of economists.
Inflation has stayed above the upper end of the Reserve Bank of India’s 2%-6% tolerance band all year and this has triggered 225 basis points of interest rate rises to the repo rate so far, taking it to 6.25%.
If the inflation forecast is correct, the decline would take it to where it was just before Russia invaded Ukraine in February, which sent global food and commodity prices soaring. (Reuters)
INDIA BONDS-Bond yields may rise ahead of weekly debt supply
Indian government bond yields are expected to open higher on Friday, ahead of a fresh supply of debt through the weekly auction.
The benchmark 10-year yield was likely to move in a 7.26%-7.31% band until the auction later in the day, a trader with a private bank said.
The yield ended higher for a fifth straight session to close at 7.2890% on Thursday.
This is the first auction since the central bank’s monetary policy decision earlier this week and will provide clarity on investors’ appetite at prevailing levels, the trader said.
New Delhi aims to raise 280 billion rupees ($3.40 billion) through the sale of bonds, including 110 billion rupees worth of benchmark paper. (Reuters)
Stocks to Watch: Paytm, HUL, Yes Bank, Sun Pharma, PTC India, Zee Learn, Hinduja Global Solutions, Ashok Leyland, Kalpataru Power, Lupin, IndusInd Bank
NSE continues to list Gujarat Narmada Valley Fertilizers & Chemicals and Indiabulls Housing Finance stocks on the list of banned securities under the F&O segment for Friday trading as they have crossed 95% of the market-wide position limit. (Read More)
Winemaker Sula Vineyards’ IPO launches on Monday. What GMP signals ahead of subscription opening
India’s largest winemaker Sula Vineyards is heading to the stock market and coming up with its initial public offer (IPO) next week on Monday, December 12, 2022. The issue, with a price band of ₹340-357 per share, will conclude on Wednesday, Decembe 14. At the upper end of the price band, the public issue is expected to fetch ₹960 crore.
Sula Vineyards IPO will be entirely an offer for sale (OFS) aggregating to 26,900,532 equity shares by the promoter, investors and other shareholders, which will include the sale of shares by Rajeev Suresh Samant, founder and CEO of Sula Vineyards as well as Belgian investment firms Verlinvest and Cofintra SA. (Read More)
HUL buys into 2 digital-first wellness startups for ₹334 cr
Packaged consumer goods maker Hindustan Unilever Ltd on Thursday picked up stakes in two digital-first health and wellness companies, entering the domestic market for health and wellness products that is expected to touch ₹30,000 crore over the next five years.
The company acquired stakes in Zywie Ventures Pvt. Ltd, the maker of OZiva brand of lifestyle protein products, hair and beauty supplements; and Nutritionalab Pvt. Ltd that sells products under the Wellbeing Nutrition brand. Mint first reported on 17 October that HUL is in advanced talks to invest in Nutritionalab.
HUL spent a total of ₹334 crore for the two deals. Existing leaderships of both companies will continue to manage their operations, while HUL will get representation on their boards. (Read More)
IndiGo to operate 168 weekly flights from Goa’s new international airport
No-frills carrier IndiGo said on Thursday it will operate 168 weekly flights to eight domestic destinations from the New Goa International Airport.
The second international airport in the state will be inaugurated by Prime Minister Narendra Modi on December 11.
The airport will commence commercial operations from January 5 next year.
The present airport at Dabolim in South Goa will remain active, and IndiGo will continue its existing operations there, the airline said in a release.
Twelve daily and a total of 168 weekly, new flights to and from the New Goa International Airport at Mopa in North Goa from January 5 will be IndiGo’s largest ever-new station launch and will immediately connect the new facility to eight cities across India, it said. (PTI)
Winter Session of Parliament: Govt says nine of 21 approved greenfield airports operationalised
The Ministry of Civil Aviation accorded ‘in-principal’ approval for the setting up of 21 greenfield airports of which 9 have been operationalised, Minister of State for Civil Aviation General VK Singh (Retd) on 8 December.
In a written reply to the Lok Sabha, Singh said these airports include Mopa in Goa; Navi Mumbai, Shirdi and Sindhudurg in Maharashtra; Kalaburagi, Vijayapura, Hassan and Shivamogga in Karnataka; Dabra (Gwalior) in Madhya Pradesh; Kushinagar and Noida (Jewar) in Uttar Pradesh; Dholera and Hirasar in Gujarat; Karaikal in Puducherry; Dagadarthi, Bhogapuram and Oravakal (Kurnool) in Andhra Pradesh; Durgapur in West Bengal; Pakyong in Sikkim; Kannur in Kerala and Donyi Polo; Itanagar in Arunachal Pradesh. (Read More)
BSNL 4G to be upgraded to 5G in 5-7 months; to be rolled out across 1.35 lakh towers: Vaishnaw
State-owned BSNL’s 4G technology will be upgraded to 5G in 5-7 months and rolled out across 1.35 lakh telecom towers the company has in the country, Union telecom and railway minister Ashwini Vaishnaw said on Thursday.
While speaking at a CII event, the minister said the government has plans to increase the telecom technology development fund from ₹500 crore per annum to ₹4,000 crore to encourage indigenous innovation.
In response to a question on BSNL’s role in the telecom sector by Kotak Bank CEO Uday Kotak, Vaishnaw said BSNL will become a very strong stabilising factor in the telecom space. (PTI)
Paytm board to consider share buyback on December 13
Digital financial services firm Paytm on Thursday said its board will meet on December 13 to consider a proposal for share buyback keeping in mind the company’s liquidity position which may be beneficial for its shareholders.
Paytm has a liquidity of ₹9,182 crore, as per its last earnings report.
The liquidity of a company is measured by its ability to convert assets into cash.
“The meeting of the board of directors of the company is scheduled to be held on Tuesday, December 13, 2022, to consider a proposal for buyback of the fully paid-up equity shares of the company,” Paytm said in a BSE filing. (PTI)
Rebuilding the Air India brand is hard, says IATA
New Air India has strong promoters and stakeholders, but it’s a long way from competing with airlines like Etihad and Emirates, International Air Transport Association director general Willie Walsh said.
“I think it is a very strong development for Air India. The combined entity of Air India and Vistara and particularly with Singapore Airlines taking 25.1% stake in the combined entity has to be seen as a positive development,” Walsh said in an interview. But he cautioned that the recently privatized national carrier has a long way to go to rebuild its brand, which he said has been diminished over the last 25 years, losing significant domestic market to other carriers. (Read More)
Rupee rises 9 paise to 82.38 against US dollar on Thursday
The rupee consolidated in a narrow range and settled 9 paise higher at 82.38 against the US dollar on Thursday, supported by positive domestic equities.
At the interbank foreign exchange market, the local unit opened at 82.34 and touched an intra-day high of 82.26 and a low of 82.47 against the greenback.
It finally settled at 82.38, registering a rise of 9 paise over its previous close of 82.47.
“Rupee consolidated in a narrow range even after 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)
BharatPe sues former MD Ashneer Grover for fraud
Fintech unicorn BharatPe has accused its ousted managing director Ashneer Grover, and his family of embezzling company funds to pay for personal expenses, including rent, plane tickets, and skincare products, as well as funnelling money to fake vendors and recruitment services.
Fintech unicorn accuses Grover and his family of embezzling company funds to pay for personal expenses, including rent, plane tickets, and skincare products (Read More)
India’s inflation likely eased further to 6.36% in November
India’s retail inflation rate likely eased further to a nine-month low of 6.36% in November, down from 6.77% in October, according to the median prediction of a Mint poll ahead of the scheduled data release on Monday.
The drop was likely driven by a moderation in prices of food, particularly vegetables, and a decline in imported inflation. It is likely that the string of high inflation rates peaked at 7.41% in September. (Read More)
Stocks rise on Wall Street on Thursday, but remain lower for the week
Technology companies helped lift stocks Thursday, ending a five-day losing streak for the S&P 500, though the major indexes remain on pace for a weekly loss.
The S&P 500 rose 0.8%, while the tech-heavy Nasdaq composite closed 1.1% higher. The Dow Jones Industrial Average added 0.5%.
Major indexes are all in the red for the week and have been swinging between big monthly gains and losses throughout the year. Investors’ worries about inflation, rising interest rates and recession risks have made for a volatile market. That has also left Wall Street focused on data points on the economy, especially those regarding inflation.
The S&P 500 rose 29.59 points to 3,963.51. The Nasdaq gained 123.45 points to 11,082, and the Dow rose 183.56 points to 33,781.48.
Tech stocks powered much of the rally, along with healthcare companies and retailers. Chipmaker Nvidia climbed 6.5%, Pfizer rose 3.1% and Nike gained 2.8%. (AP)
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