Stock Market Today: Nifty, Sensex End Lower Tracking Global Rout; ICICI Bank, Infosys Drag

The Indian rupee closed flat at 83.97 against the US dollar. It closed at 83.97 on Tuesday.

Source: Bloomberg

Indian benchmark indices took a breather from a record rally to close lower on Wednesday as sentiment was hit after a rout in global stocks.

The NSE Nifty 50 ended 0.3% or 81.1 points lower at 25,198.70, while the BSE Sensex declined 0.25% or 202.80 points to close at 82,352.64.

Intraday, the Nifty fell as much as 0.78% to 25,083.80 and Sensex plunged as much as 0.87% to hit a low of 81,833.69.

Shares of ICICI Bank Ltd., Infosys Ltd. and Larsen & Toubro Ltd. contributed the most to the losses in the Nifty.

Reliance Industries Ltd., Hindustan Unilever Ltd., Asian Paints Ltd. and HDFC Banks Ltd. advanced the most.

Most sectoral indices ended lower, with Nifty Pharma being the top gainer. Nifty PSU Bank fell the most.

Broader markets ended on a mixed note. The BSE Midcap settled 0.15% lower, and Smallcap indices ended 0.26% higher.

On BSE, 15 sectors ended lower, and five higher out of 20. The BSE Health care logged the most gains, while the BSE Metal declined the most.

Market breadth was evenly split between buyers and sellers. Around 2,019 stocks fell, 1,932 stocks rose, and 96 remained unchanged on BSE.

• Nifty snapped its longest ever streak after settling flat on Tuesday

• Nifty ends 0.57% or 144.75 points lower at 25135.10

• Sensex ends 0.21% or 171.32 points lower at 82384.12

• Intraday, Nifty fell as much as 0.78% to 25,083.80 and Sensex declined as much as 0.87% to hit a low of 81,833.69

• Broader indices were mixed; Nifty Midcap 100 ended 0.1% lower while Nifty Smallcap 250 outperformed and closed 0.32% up.

• Most sectoral indices ended lower; Nifty Pharma was the top gainer and Nifty PSU Bank fell the most

• Asian Paints and Grasim Industries were top Nifty gainers

• Wipro and Coal India were top losers among Nifty stocks

• Biosecure act may be introduced in Senate in US next week

• Can rerate valautions for Indian CDMO companies if approved

• Act would restrict US federal agencies from procuring equipment and services from certain “biotechnology companies of concern”, primarily some large Chinese pharma companies.

• CDMO companies including Syngene and Neuland Labs hit their lifetime highs

• Shares of Biocon and Granules were the top performing stocks in the index.

• Introduces Mirabegron extended-release tablets in United States

• Mirabegron is a medication used to treat overactive bladder

Source: Exchange filing

• Shilpa Medicare Ltd. submitted New Drug Application to the US Food and Drug Administration for Oxylanthanum Carbonate.

Alert: Oxylanthanum Carbonate is used for treatment of hyperphosphatemia with chronic kidney disease

Source: Exchange filing

• CCI approved Rane Holdings Ltd.'s acquisition of balance 51% stake in joint venture Rane NSK Steering Systems.

Source: Exchange filing

• Star Health & Allied Insurance Co. is expecting a 18% growth this financial year 2024-25.

• Retail health market share is at 31%.

• Profitable growth has been cornerstone for Star Health & Allied Insurance Co.

• This year is well poised for profits to improved led by best in class expense ratio

• Star Health & Allied Insurance Company is targeting 100 basis points improvement in combined ratio this year

• First quarter and Q2 generally has higher claims ratio

• The insurance company is not worried about composite license impacting our business

Source: Star Health & Allied Insurance managing director & CEO Anand Roy

• Rites Ltd. tied up with NBCC (India) Ltd. for consultancy works.

Source: Exchange filing

• India is likely to to see $1.7 trillion investments in infra till 2030

• Government's $24 billion spend on PLIs over next 5 years to boost local manufacturing

• Cement players to double capacity over 2016-2028

• In the country, 20 million homes to be built in next 4 years under govt rural housing scheme

• Players have reduced 1/4th of debt since pre-2020

• Optimal demand mix, highest from rural housing and infrastructure

• SpiceJet to hold investor roadshows in Mumbai, Singapore and Hong Kong to generate interest for QIP

• CMD, Ajay Singh, likely to dilute 10% stake, SpiceJet likely to raise Rs 3,000 crore

• ICICI Securities, JM Financials and DAM Capitals appointed as merchant bankers for stake sale

Source: People In The Know

Traders sent India's benchmark indices sliding, tracking global cues on Wednesday, to end the record winning streak as information technology and financial stocks weighed.

The NSE Nifty 50 and the S&P BSE Sensex slipped as much as 0.78% and 0.87%, respectively, during the day. This comes a day after Nifty posted a 14-day winning streak, the highest since the index's formal launch in 1996.

As of 12:15 p.m., the 50-stock blue-chip index was 145 points, or 0.57% lower at 25,133, and the 30-stock Sensex was down 384 points, or 0.46%, at 82,172.

Notably, scrips of oil marketing companies Hindustan Petroleum Corp., Bharat Petroleum Corp., and Indian Oil Corp. gained after the international benchmark Brent crude oil price tumbled to a nine-month low, slipping below the $75 per barrel mark.

A direct fall below 25,070 could usher in downsides aiming for 24,440 as the first downside objective, with 24,800 offering to slow down proceedings, according to Anand James, chief market strategist, Geojit Financial Services Ltd.

"Retention of 25,200 will, however, keep upside hopes alive, but will continue to insist on an hour’s close above 25,280 to play the 25,365-800 trajectory."

India's bull run is only past the halfway mark, but a mix of fundamental and technical factors have Asia's third-largest market poised for a temporary correction, according to Morgan Stanley analysts.

The buy-on-dips strategy that has been working well in this bull run may play out this time too, said V K Vijayakumar, chief investment strategist, Geojit Financial Services Ltd. Retail investors waiting for a correction are likely to jump in on dips, he said. "In the present stage of the market where there is no valuation comfort in the broader market, quality large-caps offer safety to long-term investors."

Asian stocks plunged on Wednesday tracking the overnight rout in the US markets, led by weak economic data and easing oil prices on weak global demand. The benchmarks in Japan and Taiwan fell over 4% while the MSCI Asia Pacific index, excluding Japan, declined by 1.91% to 684.95 through midday on Wednesday.

The first week of August saw global stocks plummet as traders unwound their carry-trade bets on the Japanese yen after it rose against the US dollar.

Shares of Reliance Industries Ltd., Asian Paints Ltd., Hindustan Unilever Ltd., HDFC Bank Ltd., and Grasim Ltd. cushioned the loss in the Nifty 50.

While those of Infosys Ltd., Larsen & Toubro Ltd., Tata Consultancy Services Ltd., Axis Bank Ltd., and ICICI Bank Ltd. weighed the index.

On NSE, 11 of the 12 sectors slipped, with Nifty IT and PSU Banks falling the most during the session. The Nifty Pharma was the only sector on the rise on Wednesday.

Broader markets were mixed against the benchmark indices. The BSE Midcap was down 0.41%, while Smallcap was trading 0.18% higher.

On BSE, 18 of the 20 sectors declined, with BSE IT and Metal leading the fall.

Market breadth was skewed in the favour of the sellers. Around 1,726 stocks rose, 2,082 stocks declined, and 125 stocks remained unchanged on the BSE.

ABB-free@home offers wireless home automation solutions

Source: Exchange Filing

Gets in-principle nod to explore various options of unlocking value at arm Advanta by raising funds

Source: Exchange Filing

[12:32, 9/4/2024] +91 73043 50790:

Canada-based arm invests $8 million in biotechnology company eGenesis

Source: Exchange Filing

Signs technology licensing pact with China-based Sanco Connecting

Source: Exchange Filing

Shares of oil marketing companies Hindustan Petroleum Corp., Bharat Petroleum Corp and Indian Oil Corp. advanced on Wednesday as international benchmark Brent crude hit a nine-month low and slipped below the $75 per barrel-mark.

• In pact with Onix Renewable for green and renewable energy

• To provide steel structures for solar projects by Onix Renewable

Source: Exchange Filing

• Lists at Rs 390 on NSE vs issue price of Rs 334

• Lists at a premium of 16.77% on NSE

• Lists at Rs 391.3 on BSE vs issue price of Rs 334

• Lists at a premium of 17.16% on BSE

Shares of Gautam Singhania's consumer lifestyle business, Raymond Lifestyle Ltd., will be listed on the stock exchange on Sept. 5. The flagship company has also initiated demerger of the real estate business.

• Quant Multi-Asset Fund saw NAV increase of 3.23% on September 3

• NAV increase higher than any other Multi-Asset Fund on the day

• NAV increase on the back of stellar listing of Premier Energies

• Quant Multi-Asset Fund has 3.67% weightage on Premier Energies

• Premier Energies listed at a premium of 120% on exchanges on Tuesday

Source: AMFI

General Insurance Corp of India's shares fell to the lowest level in over two weeks as the government is offloading 6.78% of equity at Rs 395 apiece. The offer opened for non-retail investors on Wednesday.

Most defence companies' stock rose in early trade on Wednesday after the government approved 10 capital acquisition proposals amounting to Rs 1,44,716 crore spread across the Army and Coast Guard.

Benchmark equity indices came off their record rally and fell tracking their global peers on US recession fears after the release of country's PMI data.

At pre-open, Nifty 50 was at 25135.10 down 0.57% or 144.75 points and Sensex was 0.85% or 703.62 points lower at 81851.82.

"Looking ahead, 25200 is poised to act as a key support for the benchmark, while a solid support zone is expected within the 25100-25000 range," said  Sameet Chavan, head of research at Angel One. "On the higher end of the spectrum, 25350-25400 is anticipated to act as intermediate resistance, followed by the sturdy hurdle of 25500 in the comparable period."

Shares of Asian Paints Ltd., Sun Pharmaceutical Industries Ltd., Bharat Petroleum Corp. Ltd., and Nestle India Ltd. limited the losses in Nifty.

While those of Infosys Ltd., Larsen & Toubro Ltd., ICICI Bank Ltd., Tata Consultancy Services Ltd., and Oil & Natural Gas Corp. Ltd. dragged the index.

All sectoral indices were lower at open with IT being the worst hit.

At pre-open, Nifty 50 was at 25135.10 down 0.57% or 144.75 points and Sensex was 0.85% or 703.62 points lower at 81851.82.

• The yield on the 10-year bond opened flat at 6.86%.

• It closed at 6.87% on Tuesday.

Source: Bloomberg

Rupee strengthened by 2 paise to open 83.95 against the US dollar.

It closed at 83.97 on Tuesday.

Source: Bloomberg

• Upgrades to equalweight at Rs 452 target with 2% upside

• Group restructuring removes GSPL's holding company discount

• Gujarat State Petronet holds 54.17% stake in Gujarat Gas

• Restructuring allows GSPL to unlock historical holding company discount of 45% in Gujarat Gas

• Lower EPS by 48% and 59% to factor in PNGRB tariff cut

• Bull case price target for GSPL Rs 692 per share

• Maintains 'buy'; target Rs 8,257 with 13% upside

• Bajaj Finance to hold 88.7% in Bajaj Housing which contributes 8% to market cap

• Earnings growth of 22-25% expected being 12-13% of consol earnings and 16-18% of consol Net Worth

• Valued at 3.3 times FY25E PBV and 2.9x FY26E PBV pre-issue

• Basis a 30% discount, BAF trades at 5.4 times / 4.3 times FY25/26E standalone Net Worth

• Upgrades PI Industries to Equal-weight with revised target of Rs 4,300/share; downside 6%

• Strong volume growth and new product traction in PI

• Downgrades Aarti to Under weight; downside 9%

• Pricing pressures in Aarti Industries may limit earnings

• Rated Over weight to Deepak nitrite; upside potential 13%

• Revised target price of Deepak nitrite reflects upside risk with clarity on new investments

• Sets IPO price band at Rs 228-240/share

• Bid for issue to open on September 9 & close on September 11

Source: Company Statement

Arm Dalmia Cement in pact to acquire 26% stake in Truere Surya for Rs 44.8 crore

Source: Exchange Filing

• Starts commercial production of cable at Karnataka facility

• To expand cable manufacturing capacity in Karnataka facility to 4.6 lakh kms/year

• To expand capacity in Karnataka facility with additional investment of around Rs 450 crore

Source: Exchange Filing

• Merger of Encore Software Services with Sonata Software North America completed

• Encore Software Services is an arm of Sonata Software North America

• Sonata Software North America is an arm of company

Source: Exchange Filing

• There are many sources of correction for this strong bull market

• This does not mean that the bull market is over,

• Thinks India is only past the halfway mark

• But a correction will test money in the market

• Valuation, on its own, is never a reason for stocks to correct

• But elevated valuations become a catalyst when other fundamental and sentiment events unfold.

Two fundamental events to keep an eye are:

• A potential growth slowdown as for the first time since COVID-19

• State-level profligacy causes the mix of state-level spending to shift adversely towards redistribution with concomitant risks to inflation

Two technical risks to monitor are:

• Possibility that the retail bid on equities shifts to the primary market as equity issuances surge

• Even though India remains poorly correlated to global markets, such correlations can change quickly if there is a sharp sell-off outside India, especially in the US.

• U.S. Dollar Index at 101.7

• U.S. 10-year bond yield at 3.83%

• Brent crude 0.62% lower at $73.29 per barrel

• Nymex crude 0.74% higher at $69.82 per barrel

• GIFT Nifty was 0.30% lower at 25,171.00 as of 07:51 a.m.

• Bitcoin was down 2.65% at $56,671.09

• Nifty September futures up by 0.02% to 25,354.55 at a premium of 74.7 points.

• Nifty September futures open interest up by 7.23%.

• Nifty Bank September futures up by 0.38% to 51,834.1 at a premium of 145 points.

• Nifty Bank September futures open interest up by 0.06%.

• Nifty Options Sept. 5 Expiry: Maximum call open interest at 26,000 and maximum put open interest at 25,000.

• Bank Nifty Options Sept. 4 Expiry: Maximum call open interest at 53,000 and maximum put open interest at 51,000.

• Securities in ban period: Aditya Birla Fashion And Retail, Balrampur Chini Mills, Hindustan Copper.

• Ex/Record Dividend: Hikal, Parag Milk Foods.

• Ex/Record Buyback: Transport Corporation Of India.

• Ex Dividend: MAS Financial Services, Prince Pipes and Fittings.

• AU Small Finance Bank: Westbridge AIF I sold 108.95 lakh shares (1.46%) at Rs 676.06 apiece.

• Signature Global: DKL Broking & Infra Llp sold 23 lakh shares (1.63%) at Rs 1444.27 apiece and Credible Nivesh Limited sold 17 lakh shares (1.2%) at Rs 1432.2 apiece.

• Exicom Tele Systems: Rare Enterprise sold 15.85 lakh shares (1.31%) at Rs 348.6 apiece.

• Orient Cement: Parth Infin Brokers Pvt Ltd bought 13.47 lakh shares (0.65%) at Rs 307.15 apiece.

• Goldiam International: Rashesh Bhansali sold 10 lakh shares (0.91%) at Rs 340 apiece.

• Rama Steel Tubes: SKSE Securities Ltd bought 141.12 lakh shares (0.9%) at Rs 10.51 apiece.

• Matrimony.Com: NK Securities Research Private Limited bought 1.12 lakh shares (0.5%) at Rs 820.68 apiece.

• Cyient DLM: Citigroup Global Markets Mauritius Pvt Ltd bought 2.59 lakh shares (0.32%), while Morgan Stanley Asia (Singapore) Pte. - Odi sold 2.59 lakh shares (0.32%) at Rs 732.35 apiece.

• KPI Green Energy: Citigroup Global Markets Mauritius Pvt Ltd bought 1.57 lakh shares (0.26%), while Morgan Stanley Asia (Singapore) Pte. - Odi sold 1.57 lakh shares (0.26%) at Rs 886.6 apiece.

• RBL Bank: Citigroup Global Markets Mauritius Pvt Ltd bought 9.28 lakh shares (0.15%), while Morgan Stanley Asia (Singapore) Pte. - Odi sold 9.28 lakh shares (0.15%) at Rs 227.79 apiece.

• Sula Vineyards: Citigroup Global Markets Mauritius Pvt Ltd bought 2.28 lakh shares (0.27%), while Morgan Stanley Asia (Singapore) Pte. - Odi sold 2.28 lakh shares (0.27%) at Rs 487.9 apiece.

• Tourism Finance Corp: Connecor Investment Enterprise Limited . sold 11 lakh shares (1.18%), while Legends Global Opportunities (Singapore) Pte. Ltd. bought 11 lakh shares (1.18%) at Rs 178.4 apiece.

• Medi Assist Health Services: Aditya Birla Sun Life Mutual Fund bought 13.11 lakh shares (1.86%), while Bessemer India Capital Holdings Ii Limited sold 94.9 lakh shares (13.49%) at Rs 611.7 apiece. Goldman Sachs Funds - Goldman Sachs India Equity Portfolio bought 11.55 lakh shares (1.64%) and HDFC Mutual Fund bought 31.06 lakh shares (4.41%) at Rs 611.7 apiece. ICICI Prudential Mutual Fund bought 8.2 lakh shares (1.16%) at Rs 611.7 apiece and Novo Holdings A/s Sold 5 lakh shares (0.71%) at Rs 611.7.

• Mediolanum Best Brands: Mediolanum India Opportunities bought 0.79 lakh shares (0.11%), Smallcap World Fund Inc bought 20.59 lakh shares (2.92%), and Societe Generale bought 1.63 lakh shares (0.23%) at Rs 611.7 apiece. On the other hand, Sundaram Mutual Fund bought 1.63 lakh shares (0.23%) at Rs 611.7 apiece.

ECOS (India) Mobility & Hospitality: Shares of the company will be listed on National Stock Exchange and BSE on Sept. 4. The public issue was subscribed to 64.26 times, with QIB portion subscribed 136.85 times), NII portion 71.23 times and retail portion 19.79 times.

• Gala Precision Engineering: The IPO has been subscribed 52.21 times on the second day. The bids were led by non-institutional investors (132.93 times), employee reserved (117.89 times), retail investors (44.21 times) and institutional investors (5.06 times).

• Baazar Style Retail: The public issue was subscribed 40.66 times on day three. The bids were led by institutional investors (81.83 times), non-institutional investors (59.43 times), employee reserved (35.36 times) and retail investors (9.12 times).

• Cupid: The company is looking to expand B2C pie substantially moving forward. It is on a target to reach 1 lakh touch points by the end of 2024. The company is also planning to partner with Blinkit and Zepto for better e-commerce presence. It also plans to launch almond hair oil in four SKUs among other products this month.

• Sarda Energy and Minerals: The amalgamation of SKS Power generation with Sarda Energy and Minerals was completed with effect from Sept. 3. The company also added that with effect from Sept. 1, the authorised share capital increased to Rs 2,555 crore.

• Route Mobile: The company received an order from the Office of Assistant Commissioner of State Tax Maharashtra for GST demand amounting to Rs 5.34 crore. This includes GST of Rs 3.22 crore along with interest of Rs 1.79 crore and a penalty of Rs 32.3 lakh pertaining to input on IPO/QIP expenses.

• GIC: The government will sell up to 6.8% stake via offer for sale between Sept. 4 and Sept. 5. The government will sell a 3.4% stake via a base offer, with an oversubscription offer for 3.4%. The floor price has been set at Rs 395 per share.

• Zydus Lifesciences: The company has provided clarification regarding the warning letter received from the US FDA. The letter points out concerns with the injectable manufacturing facility in Jarod, Gujarat. It is currently addressing these concerns and taking necessary corrective and preventive measures as requested by the US FDA.

• Torrent Power: The company has entered into a fresh MoU with the Department of Water Resources, Government of Maharashtra, for the establishment of pumped storage projects with a total capacity of 5,600 MW instead of 5,700 MW.

• Yatra Online: The company is to acquire Globe Travels for Rs 128 crore.

• MOIL: In August, the company achieved its highest-ever production of 1.24 lakh tonnes. For the first five months of the current financial year, it produced 7.24 lakh tonnes, a 7% increase compared to last year. The company sold 5.92 lakh tonnes during this period, which is similar to last year despite tough market conditions and fluctuating international prices. Revenue from operations grew by about 11% from April to August 2024.

• AU Small Finance Bank: The bank has submitted an application to the Reserve Bank of India to seek approval for voluntary transition from a small finance bank to a universal bank.

• Cipla: M. K. Hamied has resigned from the position of vice chairman and non-executive director of the company with effect from the close of business hours on Oct. 29 due to age and health.

• NHPC: The company signed a MoU with the Maharashtra Department of Water Resources. The agreement includes setting up pumped storage projects and renewable energy projects with a total capacity of 7,350 MW at locations including Kengadi (1,550 MW), Savitri (2,250 MW), Kalu (1,150 MW), and Jalond (2,400 MW).

• Ashiana Housing: The company announced that by Sept. 1, 168 out of 280 units in Phase 4 of its project in Gurugram had been booked. These units, which cover 282,365 square feet, have a total sale value of Rs 403.5 crore. Phase 4 of the project includes a total saleable area of 495,000 square feet with 3 BHK units and is located in Sector 93, Gurugram, Haryana.

• Adani Enterprises: Adani Global Pte. Ltd., Singapore, which is a step-down subsidiary of the company, has set up a new wholly-owned subsidiary in Shanghai, China, to carry out the business of providing supply chain solutions and project management services.

• GlaxoSmithKline Pharmaceuticals: The company has received an income tax order from the Income Tax Department for issuing an income tax refund of Rs 222.23 crore.

• UPL: The company received a notice that its step-down subsidiary, Advanta Seeds Holdings UK, has acquired a company called Advanta Holdings (Thailand) Limited. Advanta Thailand will be a step-down subsidiary under the Advanta Seed structure, which is part of Advanta Enterprises Limited, India. The company owns an 86.67% stake in Advanta Enterprises Limited.

• Texmaco Rail: Texmaco has completed the acquisition of Jindal Rail Infrastructure Limited, strengthening its position in the wagons market and expanding its capabilities and product range. The final cash payment for the acquisition was Rs 614 crores, at a valuation of 8.1 times the financial year 2024 EV/Ebitda.

• Mangalore Chemicals & Fertilizers: BSE sent a letter to the company stating that it has returned the merger scheme with some observations from SEBI. The company is evaluating the next steps to be taken in respect of this letter.

• VST Industries: BSE and NSE have granted in principle approval for the issuance and proposed allotment of 15 crore equity shares as bonus shares. The bonus shares will be issued in a 10:1 ratio.

• GR Infraprojects: The company has signed a share purchase agreement with REC Power Development and Consultancy to acquire "Tumkur-II REZ Power Transmission" at Rs 6.72 crore, making it a wholly-owned subsidiary of the company. Additionally, the company has been selected as the bidder for a new project involving the establishment of a 400/220 kV pooling station and related infrastructure in Tumkur, Karnataka. As part of the project requirements, the company must purchase shares of Tumkur-II REZ Power Transmission.

The GIFT Nifty was trading 0.34%, or 86 points lower at 25,160.00 as of 06:35 a.m.

Markets in Asia-Pacific region slumped on Wednesday morning, mirroring similar moves on Wall Street a day before, as weak US economic data stoked recession fears.

The Nikkei 225 was trading 1,399.23 points, or 3.62% lower at 37,287.08, and the S&P ASX 200 was trading 162.20 points, or 2.00% down at 7,941.00 as of 06:30 a.m.

Wall Street traders pulled back from risk after a rally that had brought the S&P 500 near its all-time highs. The equity benchmark experienced its steepest decline since the Aug. 5 market crash. A key index of chipmakers dropped 5%, driven by a sharp fall in Nvidia Corp.

On Tuesday, the S&P 500 and Nasdaq composite ended 2.12% and 3.26% lower, respectively. The Dow Jones Industrial Average settled 1.51% down.

The November contract of brent crude was trading 0.31% lower at $73.52 as of 06:33 a.m. The Bloomberg spot gold was trading 0.03% down at $2,492.26.

The Indian benchmark indices closed mixed on Tuesday as the NSE Nifty 50 ended flat and at an all-time high, while the S&P BSE Sensex snapped its 10-session gaining streak.

Nifty saw a marginal increase of 1.15 points to close at 25,279.85, and the Sensex was 4.4 points or 0.01%, down at 82,555.44.

Overseas investors remained net buyers of Indian equities for the third consecutive session on Monday. Foreign portfolio investors mopped up stocks worth Rs 1,735.5 crore and domestic institutional investors turned net buyers after one day of selling and bought equities worth Rs 356.4 crore, according to provisional data from the National Stock Exchange.

The Indian currency weakened by 5 paise to close at 83.97 against the US dollar.

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