The US services sector showed growth in November and business orders at US factories in October also rose more than expected. The reports make the Fed’s fight against inflation more difficult. Back in India, 2nd day of RBI’s MPC meeting will be in focus.
Adani Enterprises shines in today’s trading; jumps 2%
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US risks stoking inflation if carbon-linked tariffs hit China, says MBMG
China’s steel and aluminium exports are under attack once again, as the US and European Union weigh new tariffs linked to carbon emissions.
The idea from President Joe Biden’s administration would probably have the biggest impact on the aluminium market, particularly in the EU, which has relied on Chinese smelters to plug gaps in output following Russia’s invasion of Ukraine. That dependency highlights the inflationary risks of any measures that would shrink supply or add costs based on climate goals. (Read More)
Rupee drops to 1-month low, falls below 50-day moving avg
The Indian rupee extended its opening decline against the dollar on Tuesday, to slip to its lowest level in over a month and below a key level.
The rupee was at 82.30 to the U.S. dollar by 9.30 a.m. IST, down from 81.79 in the previous session. The local unit opened at 81.9350 before swiftly falling below the 50-day moving average of 81.98 and the psychological level of 82.
There was probably another round of stop losses triggered once USD/INR moved about 82, a trader said, recalling a possible dividend dollar outflow of a mining company. However, they added “it was difficult to be sure”.
“It could be that the news is chasing the price action.”
The trader requested anonymity as they are not allowed to speak to the media. (Reuters)
Kotak Securities outlook on Commodities – Gold and Crude
Gold & Crude by Ravindra Rao, CMT, EPAT, VP-head commodity Research, Kotak Securities Ltd:
Gold: COMEX Gold trades mildly higher today recovering from the lows of $1778/oz hit in yesterday’s session. After solid gains posted in the previous week, gold gave away a part of gains on Monday as the US Dollar and bond yields recovered amid some encouraging US data prints. The US Dollar recovered from a five-month low as US factory orders and ISM services PMI rose above expectations. With better-than-expected data prints, the Federal Reserve gets more room for extended interest rate hikes that is not good for non-yielding assets like bullion. On the price front, COMEX gold has not sustained above the 252 DMA resistance near $1804. Additionally, $1825 would act as the next hurdle. So, till the said resistances hold, we expect a range-bound move in gold between $1773 to $1820.
Crude: NYMEX WTI crude oil trades 1% higher in today’s early session after a sharp drop in the previous session. Recovery in the US dollar after better-than-expected US data prints has pressurized commodity prices, including oil. Crude oil fell 3.89% in the previous session, once again failing to sustain above the $81.50 resistance level. Apart from dollar, crude will take cues from China’s COVID situation that has been haunting oil markets as well as the Russian oil cap that kicked off on Monday. With EU embargo and the price cap on Russian oil, along with China’s COVID situation, the price might witness wild moves from one direction to another. On the price front, WTI crude oil has once again failed to sustain above $81.50/bbl and fell deep towards $76.77/bbl. The trend seems to be consolidative with immediate support near $76/bbl followed by strong support near $73.60/bbl. There would be resistance near $81.50/bbl on closing.
Vedanta’s high dividend payout to continue, says Edelweiss, raises target price
Brokerage and research firm Edelweiss interacted with Vedanta (VEDL) to get an update on its ongoing expansion plans, parent’s deleveraging target and more. The highlights of which were – FY24 is the year of commissioning of the ongoing expansion in zinc, aluminium, alumina, coal; high dividend pay-out to continue in FY24 & FY25; focus on curbing carbon emissions at the forefront.
“Vedanta’s low cost status in zinc and efforts to reduce its aluminium CoP below $1,500/t on a sustainable-basis (likely by FY26) will be a long-term positive. The expectation of reopening of China (demand to improve) will help base metal prices to sustain higher, providing a cushion to our financial numbers,” the note stated. (Read More)
Hindalco leads the downward spiral in Metal index as the stock sheds more than 1.5%
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Oil Resumes Advance as China’s Covid Pivot Aids Demand Outlook
Oil rose after a two-day drop on more signs China is moving away from its strict Covid Zero policy, and as investors assessed the implications for global flows from the price cap imposed on Russian crude.
West Texas Intermediate climbed toward $78 a barrel following a roller-coaster session on Monday, when a broad shift away from risk assets saw prices close down 3.8% after earlier gains. The city of Beijing will scrap Covid testing requirements at public venues following similar moves in other centers, bolstering the outlook for demand in the world’s largest crude importer. (Reuters)
IT index drags with a drop of 1% in early trading, all stocks in red
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RPT-India’s sugar output set to drop 7%, could crimp exports
India’s sugar output is likely to fall 7% this year as erratic weather conditions have cut cane yields, which could dampen exports from the world’s biggest producer of the sweetener, farmers, millers and traders said.
Lower sugar exports from India, also the world’s second biggest exporter, could lift global prices and allow rivals Brazil and Thailand to increase their shipments.
“The crop was just looking like last year but when we started harvesting we realised that yields were very low,” said Pradip Jagtap, a farmer from the Solapur district of the western state of Maharashtra, India’s No.1 sugar-producing state.
This year, Jagtap could gather 530 tonnes of cane from his nine-acre plot, down from the previous year’s 750 tonnes. (Reuters)
SBI Life shines in an otherwise depressing start to the day; gains 2%
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Kalpataru Power to consider fundraising proposal via NCDs issuance this week
Kalpataru Power Transmission to consider the fundraising proposal later in the current week. The company’s executive committee is scheduled to meet on December 8 to consider the proposal. The leading EPC company is looking to raise funds through the issuance of Non-Convertible Debentures on a private placement basis. Kalpataru shares will be in focus this week. (Read More)
Indices open in red as Sensex is down 250 points and Nifty 75 points
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Dharmaj Crop Guard IPO: Check GMP as all eyes on shares listing after allotment
The finalisation of the basis of share allotment of Dharmaj Crop Guard IPO is done and if allotted, then the credit of shares to demat account of bidders will be done on Wednesday, December 7. Now, all eyes are on the company’s stock market debut which is expected to happen this week.
As per market observers, Dharmaj Crop Guard shares are available at a premium (GMP) of ₹52 in the grey market today. The shares of the company are expected to list on the stock exchanges BSE and NSE later this week on Thursday, December 8, 2022. (Read More)
INDIA BONDS-Bond yields seen tad higher tracking U.S. peers, MPC decision key
Indian government bond yields are expected to open marginally higher on Tuesday, tracking an overnight rise in U.S. yields, while the broad market awaits the domestic monetary policy decision due on Wednesday.
The benchmark 10-year yield is likely to move in a 7.20%-7.25% band, a trader with a private bank said. The yield ended at 7.2254% on Monday.
We have seen resistance with 7.20% acting as the bottom. With some upmove in U.S. yields, there should be some selling today, the trader added.
U.S. Treasury prices fell on Monday as strong data on the services and manufacturing sectors, after a solid non-farm payrolls report, reinforced expectations of the U.S. Federal Reserve continuing to raise interest rates in 2023. (Reuters)
Sensex comes under pressure in the preopen session as it sheds 500 points; HDFC, Adani Green, Tata Motors in focus
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Geojit Financial Services on today’s market: Buy on dips strategy has worked well this year and investors can continue with the strategy
Dr V K Vijayakumar, chief investment strategist at Geojit Financial Services: Two trends stand out in the current economic scenario. The US economy continues to be strong as reflected by the jobs data, labour market conditions and ISM services. But these positive numbers are viewed by the market with concern since this strong scenario might persuade the Fed to continue to be hawkish. The Indian macros indicate steady improvement with buoyant tax collections, impressive credit growth and declining crude. Partly the market resilience in India comes from retail optimism and DII investment. This is likely to continue despite the elevated valuations. Buy on dips strategy has worked well this year and investors can continue with the strategy.
TVS Motor Company promoter entity sells 25.6 lakh shares for ₹262 cr
A promoter entity of TVS Motor Company on Monday offloaded 25.69 lakh shares of the company for ₹262 crore through an open market transaction.
According to the bulk deal data available with the BSE, Srinivasan Trust sold 25,69,726 shares, amounting to a 0.54% stake in the company.
The shares were disposed of at an average price of ₹1,020.03 per scrip, taking the transaction value to ₹262 crore.
As of quarter ended September, Srinivasan Trust held a 0.54% stake in the company, shareholding data showed with the exchange.
Shares of TVS Motor Company closed 3.01 per cent lower at ₹1,017.75 per piece on BSE. (PTI)
Reliance Securities Stock in Focus for Today: BEML
STOCK IN FOCUS:
BEML (CMP 1,561) – We expect its EBITDA margin at 6-6.5% over FY22-FY24E. Considering strong opportunities across segments, healthy earnings growth and margin expansion, we have BUY rating on the stock with Target Price of Rs2,000.
Intraday Picks
HINDUNILVR (PREVIOUS CLOSE: 2,620) BUY
For today’s trade, long position can be initiated in the range of Rs2,615-
2,600 for the target of Rs2,695 with a strict stop loss of Rs2,570.
PIDILITIND (PREVIOUS CLOSE: 2,734) BUY
For today’s trade, long position can be initiated in the range of Rs2,722-
2,702 for the target of Rs2,815 with a strict stop loss of Rs2,670.
PIIND (PREVIOUS CLOSE: 3,473) SELL
For today’s trade, short position can be initiated in the range of Rs3,490-
3,510 for the target of Rs3,370 with a strict stop loss of Rs3,570.
Elon Musk’s Neuralink faces federal probe, employee backlash over animal tests
Elon Musk’s Neuralink, a medical device company, is under federal investigation for potential animal-welfare violations amid internal staff complaints that its animal testing is being rushed, causing needless suffering and deaths, according to documents reviewed by Reuters and sources familiar with the investigation and company operations.
Neuralink Corp is developing a brain implant it hopes will help paralyzed people walk again and cure other neurological ailments. (Read More)
Stocks to Watch: HDFC, JSW Energy, PTC India, Adani Green, Tata Motors, Vodafone Idea, Bharti Airtel, Mannapuram Finance, Sun Pharma, Hatsun Agro
NSE lists Delta Corp, Gujarat Narmada Valley Fertilizers & Chemicals, and Indiabulls Housing Finance stocks on the list of banned securities under the F&O segment for Tuesday trading as they have crossed 95% of the market-wide position limit. (Read More)
Bitcoin, dogecoin fall while Shiba Inu, Litecoin gain. Check cryptocurrency prices today
In cryptocurrencies, the world’s largest and most popular digital token Bitcoin’s price today was trading more than a per cent lower at $17,040. 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, as it was down over a per cent in the last 24 hours to $893 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 fell by over 2% to $1,266. Meanwhile, dogecoin price today was trading more than 2% lower at $0.10 whereas Shiba Inu was up marginally by 0.5% at $0.000009. (Read More)
HC stays order involving penalty of ₹10 lakhs on Sun Pharma
The Delhi HC in its order has stayed its earlier order of November that had imposed a fine of ₹10 lakhs on Sun Pharmaceutical Industries for allegedly concealing facts in a trademark matter. According to the order the stay has been granted till 27 March 2023, which is when the matter will be taken up for hearing by the high court.
On 22 November, the Delhi High Court in its order levied a penalty of ₹10 lakhs on Sun Pharmaceutical Industries for concealing facts in order to obtain an ex-parte injunction order in its trademark matter with DWD Pharmaceuticals. This order was immediately challenged by Sun Pharma for seeking a stay. (Read More)
Biocon Biologics appoints Shreehas Tambe as MD, CEO
Biocon Biologics (BBL), a subsidiary of Biocon, has announced that Shreehas Tambe has been appointed as its managing director and CEO with effect from Monday.
Tambe, formerly deputy CEO of Biocon Biologics, will lead BBL in realising its goal of being a global biosimilars leader, a release said. Tambe takes over from Arun Chandavarkar, who will continue to serve as a non-executive, non-independent director on the board of Biocon Biologics. (ANI)
Manappuram Fin to release succession plan next quarter
Manappuram Finance, which is preparing the contours of succession planning, will announce the names of potential candidates in the next quarter, said managing director and chief executive officer V. P. Nandakumar.
With a 16% market share, Thrissur-based Manappuram Finance is the second-largest gold finance NBFC in the country after Muthoot Finance with assets under management of ₹19,190 crore and a gold loan customer base of 2.5 million. (Read More)
Buy or sell: Vaishali Parekh of Prabhudas Lilladher recommends 2 stocks to buy today
Vaishali Parekh of Prabhudas Lilladher has recommended two stocks to buy today which are Can Fin Homes and Jubilant Food.
Can Fin Homes: Buy CAN FIN HOMES, stop loss ₹555, target ₹580
Jubilant Food: Buy JUBLFOOD, stop loss ₹545, target ₹570 (Read More)
Uniparts India IPO: What does latest GMP suggest about listing?
After a successful public offer, Uniparts India may complete all the necessary procedures such as allotment of equity shares, refund if any, and credit of the shares offered in the IPO this week ahead of its listing. At the grey market, on Tuesday, Uniparts IPO’s GMP is unchanged at ₹60 per equity share. The nearly ₹836 crore initial public offering (IPO) closed last week with a robust appetite from institutional and high-net-worth investors. The IPO oversubscribed by 25.32 times.
Uniparts is likely to carry the allotment of equity shares on December 7, while initiation of refunds and credit of equity shares to the applicant’s Demat account will likely follow between December 8 to December 9. The company is expected to list next week on December 12. (Read More)
Adani Group open offer for NDTV ends with 31.79% subscription
NDTV shares settled 4.94% lower at ₹393.9 apiece as Adani Group’s open offer for the broadcaster ended Monday. The open offer garnered 31.79% or 53.28 lakh shares against the 1.67 crore size as of 4 pm on December 5. The share has fallen 12% over the past three sessions from a high of ₹447.70 to Monday’s closing of ₹393.9. (Read More)
Rupee falls 52 paise to close at 81.85 against US dollar on forex outflows, firm crude
The rupee pared its initial gains to settle down by 52 paise at a nearly two-week low of 81.85 against the US dollar on Monday weighed down by weak domestic markets, forex outflows and a rise in crude oil prices.
Forex traders said a weak dollar in the overseas market cushioned the downside for the local unit.
At the interbank foreign exchange market, the local unit opened at 81.26, but pared the gains and ended at 81.85, down 52 paise which is its biggest single-day loss in over six weeks.
During the day, the local unit witnessed an intraday high of 81.25 and a low of 81.87. On Friday, the rupee had settled down by 7 paise at 81.33 against the dollar. (PTI)
Trade ministry weighs cut in gold tariff to curb smuggling
The commerce ministry is discussing a reduction in import taxes on gold to rein in illegal shipments, according to people familiar with the matter.
The world’s second-largest consumer of the precious metal, almost all of which is purchased from abroad, has asked the finance ministry to consider reducing the tariff to about 10% from 12.5%, two of the people said, asking not to be identified as the deliberations are private. It’s as yet unclear if the recommendation will be accepted and a decision could be announced at or before the budget presentation due early next year, they added. (Read More)
Wall Street stocks slide as strong data suggests Fed has more to do
Stocks closed broadly lower on Wall Street and Treasury yields rose Monday after surprisingly strong economic reports highlighted the Federal Reserve’s difficult fight against inflation.
The S&P 500 fell 1.8%, its third straight drop. The slide more than offset the index’s gains last week. The Dow Jones Industrial Average dropped 1.4% and the tech-heavy Nasdaq composite slid 1.9%. Small-company stocks fell even more, sending the Russell 2000 index 2.8% lower.
The selling came as traders reacted to some better-than-expected economic snapshots. The services sector, which makes up the biggest part of the U.S. economy, showed surprising growth in November, according to the Institute for Supply Management. Reports on business orders at U.S. factories and orders for durable goods in October also rose more than expected.
The reports are positive for the broader economy, but they make the Fed’s fight against inflation more difficult because it likely means the central bank will have to keep raising interest rates in order to bring down inflation.
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