Investors expect a 50-basis point interest rate hike by the U.S. Federal Reserve at its policy meeting this week. A steep interest rate hike might push the economy into recession as inflation continues to remain a priority for central bankers.
Rupee likely to slip as U.S. data stokes higher rates worry
The Indian rupee was expected to weaken at the open on Monday as the U.S. dollar and Treasury yields ticked higher as U.S. data late last week affirmed the need for higher interest rates.
The rupee is seen around 82.45 per dollar in early trades, against its previous close of 82.27.
The currency was quite volatile last week, swiftly going from trading near 81.30 per dollar to 82.50 – despite several positive factors – due to likely equity position adjustments. (Reuters)
Droneacharya Aerial Innovations: Bidding opens for these investors on 12 Dec ahead of SME IPO. Check latest GMP
The high-end ecosystem of Drone solutions provider, Droneacharya Aerial Innovations is set to launch its initial public offering (IPO) on December 13 in the SME category. That being said, anchor investors will be allowed to bid for the company on Monday. The company plans to raise nearly ₹34 crore through the public offer. In the grey market, the company was trading at a premium of ₹65 per equity share.
Droneacharya’s IPO is a purely fresh issue of 62.90 lakh equity shares at a price band of ₹52 per share and ₹54 per share. At the upper price band, the IPO has valued around ₹33.97 crore. The issue will close on December 15. Meanwhile, anchor investors will be able to bid on December 12 for the IPO.
On Monday, the IPO’s GMP price was at ₹65 per equity share which suggests a possible listing of ₹119 per share ( ₹65 per equity share plus an upper price band of ₹54 per equity share) as of now. (Read More)
Sensex preopens in red; Uniparts to debut at the bourses today
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Reliance Securities Stock in Focus for Today: Engineers India
STOCK IN FOCUS
Engineers India (CMP 80)
Considering its asset-light business model, strong clientele base, foray into newer segments and healthy execution track record, we have our BUY rating on ENGR, with a SOTP-based Target Price of Rs100
EQUITY INDICES
Intraday Picks
DRREDDY (PREVIOUS CLOSE: 4,407) BUY
For today’s trade, long position can be initiated in the range of Rs4,406-
4,380 for the target of Rs4,530 with a strict stop loss of Rs4,330.
TITAN (PREVIOUS CLOSE: 2,615) BUY
For today’s trade, long position can be initiated in the range of Rs2,605-
2,585 for the target of Rs2,705 with a strict stop loss of Rs2,545.
BHARTIARTL (PREVIOUS CLOSE: 835) BUY
For today’s trade, long position can be initiated in the range of Rs831-
827 for the target of Rs852 with a strict stop loss of Rs821.
V-Guard to acquire Sunflame Enterprises for ₹660 crore in all-cash deal
Electricals and home appliances player V-Guard Industries on Friday said it will acquire Sunflame Enterprises for ₹660 crore in an all-cash deal.
The acquisition of the Delhi-based Sunflame will help V-Guard scale up its kitchen appliances business while also unlocking synergy benefits.
“We have entered into a definitive agreement to acquire 100 per cent stake of Sunflame Enterprises for ₹660 crore in an all cash deal,” the Kochi-based company said in a statement.
Sunflame is a debt-free company and has around ₹50 crore cash in-hand which does not include in the deal — implying the promoter of the selling company will take out that money before the deal is concluded. It had a topline of ₹350 crore in FY22. (PTI)
Marico to acquire Vietnamese personal care brands ‘Purité de Prôvence’, ‘Ôliv’ in ₹172 crore deal
Marico on Friday said it will acquire Vietnam-based Beauty X Corporation, which owns female personal care brands Purité de Prôvence’ and ‘Ôliv’, in an all-cash deal for 493 Billion Vietnamese Dong (about ₹172 crore).
The move will help the homegrown FMCG major to expand its presence in Vietnam.
Its wholly owned subsidiary, Marico South-East Asia Corporation (MSEA) has entered into a definitive agreement to acquire 100 per cent of Beauty X Corporation, a firm which operates in the beauty and personal care space offering products such as shower gels, shampoos, conditioners, face wash and lotions among others.
“The transaction will expand Marico’s presence in the female personal care segment in Vietnam, with an offering of a range of premium and differentiated hair care and skin care products, while also realising various operational synergies,” the company said. (PTI)
Abans Holdings IPO opens today. GMP, price other details you should know
Subscription for the initial public offer (IPO) of Abans Holdings Ltd has opened today and it will remain open for bidders till 15th December 2022. The company promoters have fixed price band of the public issue at ₹256 to ₹270 per equity share. From this public offer, Abans Holdings aims to raise ₹345.60 crore out of which ₹243 crore is expected via OFS (offer for sale) route.
Meanwhile, grey market is also giving positive signals in regard to Abans Holdings IPO. As per the market observers, shares of Abans Holdings are available at a premium of ₹15 in grey market today, which means Abans Holdings IPO GMP (grey market premium) is ₹15 today. (Read More)
Stocks to Watch: Uniparts, Glenmark, SBI, Airtel, Marico, Hero MotoCorp, Vodafone Idea, Mahindra Holidays, V Guard, NTPC, PTC India
NSE lists Delta Corp, Bhel, Gujarat Narmada Valley Fertilizers & Chemicals, and Punjab National Bank stocks on the list of banned securities under the F&O segment for Monday trading as they have crossed 95% of the market-wide position limit. (Read More)
Glenmark’s drugs are adulterated: USFDA
The US Food and Drug Administration (USFDA) identified a number of failures at the Glenmark Pharmaceuticals’ Bardez-based facility in Goa, creating drug formulations, in a warning letter sent to Glenmark Pharmaceuticals Chairman and Managing Director Glenn Saldanha. The warning notice lists serious infractions of Current Good Manufacturing Practice (CGMP) rules for finished pharmaceuticals, according to the US Health Authority.
The USFDA conducted an inspection of the manufacturing plant from May 12 to 20. According to the agency, the company’s manufacturing, processing, packing or holding procedures, facilities or controls do not follow CGMP standards, and as a result, its drug products are adulterated. (Read More)
Vodafone Idea, ATC agree to extend ₹1,600 cr debentures date till Feb 28
Debt-ridden Vodafone Idea and its vendor ATC Telecom Infrastructure have agreed to extend the last date for subscription of ₹1,600 crore optionally convertible debentures to February 28, the telecom operator said in a regulatory filing.
Vodafone Idea’s proposal to issue ₹1,600 crore debentures to mobile tower vendor ATC Telecom Infrastructure has lapsed in the absence of any response from the government on the conversion of interest dues into equity.
“…the Company and ATC have mutually extended the last date for subscription of the OCDs to 28th February 2023 or such later date as may be mutually agreed, subject to fulfilment of certain conditions precedent,” Vodafone Idea (VIL) said in a filing. (PTI)
Yellen says US inflation will be much lower by end of 2023
U.S. Treasury Secretary Janet Yellen on Sunday forecast a substantial reduction in U.S. inflation in 2023, barring an unexpected shock. “I believe by the end of next year you will see much lower inflation if there’s not … an unanticipated shock,” she told CBS’ ’60 Minutes’ in an interview released Sunday.
Asked about the likelihood of recession, the former Federal Reserve chair said, “There’s a risk of a recession. But … it certainly isn’t, in my view, something that is necessary to bring inflation down.” (Read More)
Sula Vineyards IPO opens today: GMP, review, price, other details
The initial public offer (IPO) of Sula Vineyards is going to hit primary markets today. The public issue will remain open for bidding till 14th December 2022. India’s largest wine producer and seller aim to raise ₹960.35 crore from its public offer and it is completely OFS (offer for sale) in nature. the company has a fixed price band of the public issue at ₹340 to ₹357 apiece.
Meanwhile ahead of the Sula Vineyards IPO subscription opening date, grey market is dropping positive signals in regard to the public offer. According to market observers, shares of Sula Vineyards Ltd are available at a premium of ₹34 in the grey market today. (Read More)
Air India nears historic order to buy 500 aircraft worth billions: Report
Air India is close to placing landmark orders for as many as 500 jetliners worth tens of billions of dollars from both Airbus and Boeing as it carves out an ambitious renaissance under the Tata Group conglomerate, industry sources said on Sunday.
The orders include as many as 400 narrow-body jets and 100 or more wide-bodies, including dozens of Airbus A350s and Boeing 787s and 777s, they said, speaking on condition of anonymity as finishing touches are placed on the mammoth deal in coming days. (Read More)
Uniparts IPO listing date today. Experts predict positive debut of shares
Uniparts IPO listing date has been fixed on 12th December 2022 i.e. shares of Uniparts India Limited — an engineered systems and solutions company — are going to hit secondary markets today in a special pre-open session. As per the information available on the BSE website, the equity shares of Uniparts India Limited shall be listed and admitted to dealings on BSE and NSE in the list of ‘B’ group of securities.
According to stock market experts, Uniparts IPO listing price can be around ₹620 in the bear case whereas in the bull case, it may debut at around ₹635 apiece levels. They said that the stock looks good from all perspectives but the only negative for the public issue is its 100 per cent OFS in nature. So, big investors may not jump at the stock immediately after listing of stocks. However, they said that long-term investors can hold the stock after a positive listing as it may go up to ₹750 apiece levels in the short to medium term. (Read More)
Myntra onboards 1.3 lakh first-time shoppers from non-metros on Day 1 of sale
Fashion e-tailor Myntra on Sunday said it recorded 1.3 lakh firsttime shoppers from non-metros on the first day of its flagship End of Reason Sale (EORS). Customers from Jaipur, Lucknow and Patna placing the most orders in terms of value, said the company.
“The opening day of the event saw 130k first-time shoppers coming from non-metros. Over half of the overall shoppers from the initial day of the fashion event were women,” said Myntra in a statement. (Read More)
Worries over likely global slowdown weigh on IT companies
IT sector stocks extended their losses on Friday, with the S&P BSE Information Technology index correcting 5.72% since its highs on 1 December, prompting analysts to warn that a potential slowdown in business on global recession fears is leading to the correction.
The fears were accentuated by HCL Technologies expecting growth to be at lower end of its guidance. Rising interest rates are already weighing on sentiments as the impact on rate-sensitive sectors like mortgage, capital markets in the BFSI (Banking and Financial Services) vertical, discretionary retail, and pockets of manufacturing verticals can impact Indian IT companies. Furloughs are also likely to weigh on growth for the sector in Q3FY23, said analysts at Nomura Research. (Read More)
US STOCKS-Wall Street ends lower on Friday as investors digest economic data
Wall Street ended lower on Friday as investors assessed economic data and awaited a potential 50-basis point interest rate hike by the U.S. Federal Reserve at its policy meeting next week, while apparel company Lululemon slumped following a disappointing profit forecast.
“Today’s data shows that inflation is coming down, but it’s lingering and is stickier than most assume,” said Anthony Saglimbene, chief market strategist at Ameriprise Financial in Troy, Michigan.
However, in December, consumer sentiment improved, while inflation expectations eased to a 15-month low, a University of Michigan survey showed.
The S&P 500 declined 0.73% to end the session at 3,934.38 points.
The Nasdaq declined 0.70% to 11,004.62 points, while Dow Jones Industrial Average declined 0.90% to 33,476.46 points.
Of the 11 S&P 500 sector indexes, 10 declined, led lower by energy, down 2.33%, followed by a 1.28% loss in health care. (Reuters)
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