Investors are hopeful that Fed will lower its hawkish stances and will go easy on future interest rate hikes. Still, an increase of 75 basis points is on cards but with a hint that officials are open to dialling back the pace of increases.
Fusion Microfinance IPO: Latest GMP ahead of subscription opening tomorrow
The initial public offering (IPO) of microlender Fusion Microfinance, backed by global private equity major Warburg Pincus, will open for public subscription tomorrow i.e., November 2, 2022 and will conclude on Friday, November 4, 2022.
Fusion Microfinance IPO comprises fresh issuance of equity shares worth ₹600 crore and an offer of sale (OFS) of 13,695,466 equity shares by promoters and existing shareholders. (Read More)
Tata Steel sheds at open following their quarterly report; drop 2%
Sensex crosses 61,000 at open and gain 300 points, while Nifty goes above 18,100
Birlasoft stock in focus as IT share trades ex-dividend today. Do you own?
Birlasoft shares are one of the dividend paying stocks in November 2022. The board of directors of the IT company has fixed 2nd November 2022 as record date for payment of dividend payment on ex-date basis. This means, the IT stock will trade ex-dividend today i.e. on 1st November 2022. The board of directors of the company has already declared interim dividend of ₹1.50 per equity share for the financial year 2022-23.
Birlasoft Ltd said, “We wish to inform you that the Board of Directors of the Company, at its meeting concluded today, inter alia, has approved Interim Dividend of Rs. 1.50/- per equity share (i.e. 75%) of face value of Rs. 2/- each, for the financial year 2022-23, to be paid to the members of the Company within 30 days from the declaration by the Board, as per the provisions of Companies Act, 2013, and the Rules made thereunder.” (Read More)
DCX Systems IPO: GMP, subscription status on day 2 of the issue
The Initial Public Offering (IPO) of DCX Systems, manufacturer of cables and wire harness assemblies, received 2.11 times subscription on the first day of the offer on Monday. The three-day initial public offering (IPO) of DCX Systems opened for public subscription on Monday, October 31, 2022, and will conclude on Wednesday, November 2, 2022.
The price band has been fixed at ₹197 to ₹207 per share. The has raised ₹225 crore from anchor investors days ahead of its initial share sale. DCX Systems IPO consists of a fresh issue aggregating up to ₹400 crore and an offer for sale of up to ₹100 crore. (Read More)
Sensex is flat at preopen session with Bharti Airtel, L&T, Tata Steel being in focus in today’s session
Reserve Bank to roll out first pilot of digital rupee today
The Reserve Bank of India will roll out the digital rupee for the wholesale segment on 1 November as part of its first pilot test programme to review and improve the currency’s functionality. The central bank will launch a similar test for the retail segment in closed user-groups of customers and merchants within a month, RBI said on Monday. (Read More)
Geojit Financial Services on today’s market: DIIs are likely to sell at higher levels and many retail investors might be tempted to book some profits.
Dr V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services: “An interesting trend in the market is that FIIs and DIIs have reversed their roles: FIIs have turned buyers and DIIs have turned sellers in recent days. Yesterday’s FII buy figure of ₹4178 crore is their largest buy figure in recent months. The implication of this role reversal by FIIs is that this has triggered short covering in stocks like the HDFC twins where FIIs are major holders. This trend can take the market up further. Recent good Q2 results of large-caps like Maruti, L&T and Bharti Airtel can give fundamental support to the rally. Since Nifty is only 3% away from its all-time high, a charge to record highs cannot be ruled out. But DIIs are likely to sell at higher levels and many retail investors might be tempted to book some profits.
Globally markets are looking forward to the Fed commentary after its meeting on November 1st and 2nd. A 75 bp hike in rates is already discounted by the market. If the Fed indicates moderation in rate hikes, going forward, markets would positively respond to that.”
Reliance Securities Stock in Focus today: Ultratech Cement
STOCK IN FOCUS
UltraTech Cement (CMP 6,715)
We have our BUY rating, with a 12-month Target Price of Rs7,220.
VOLTAS (PREVIOUS CLOSE: 876) BUY
For today’s trade, long position can be initiated in the range of Rs871- 867 for the target of Rs910 with a strict stop loss of Rs854.
BAJAJFINSV (PREVIOUS CLOSE: 1,688) BUY
For today’s trade, long position can be initiated in the range of Rs1,676- 1,668 for the target of Rs1,730 with a strict stop loss of Rs1,650.
PIDILITIND (PREVIOUS CLOSE: 2,584) BUY
For today’s trade, long position can be initiated in the range of Rs2,572- 2,560 for the target of Rs2,645 with a strict stop loss of Rs2,540.
Bikaji Foods IPO: What GMP signals ahead of subscription opening date
The public issue worth ₹881.22 crore is going to hit primary markets on 3rd November and it will remain open for subscription till 7th November 2022. The promoters of the company has fixed Bikaji Foods IPO price band at ₹285 to ₹300 per equity share and one lot of the IP will comprise 50 company shares. Ahead of subscription opening, shares of Bikaji Foods International Limited are available for trade in grey market. According to market observers, shares of Bikaji Foods are available at a premium of ₹81 per share.
As per the market observers, Bikaji Foods IPO GMP (grey market premium) today is ₹81, which is praiseworthy as there are still two full days left for opening of the public issue. They said that such a high premium in grey market can be attributed to the bullish sentiments on Dalal Street as the secondary market has been closing higher for last three successive days. However, they maintained that Dalal Street sentiments are interlinked with the grey market and primary market. (Read More)
INDIA BONDS-Bond yields seen inching down tracking oil; focus on cenbank meets
Indian government bond yields are expected to trend marginally lower in early trading on Tuesday, tracking a further pullback in oil prices that could ease inflationary pressures.
Major focus, however, will remain on central bank meetings scheduled later this week.
The benchmark Indian 10-year government bond yield is likely to be in a 7.42%-7.47% band, a trader with a private bank said. The yield had ended at 7.4454% on Monday.
“We may see some recovery in yields tracking oil prices,” the trader said, adding that major moves are unlikely until the U.S. and Indian central bank meetings are through. (Reuters)
Musk floats paid Twitter verification, fires board
Billionaire Elon Musk is already floating major changes for Twitter — and faces major hurdles as he begins his first week as owner of the social-media platform.
Twitter’s new owner fired the company’s board of directors and made himself the board’s sole member, according to a company filing Monday with the Securities and Exchange Commission. Musk later said on Twitter that the new board setup is “temporary,” but he didn’t provide any details.
He’s also testing the waters on asking users to pay for verification. A venture capitalist working with Musk tweeted a poll asking how much users would be willing to pay for the blue check mark that Twitter has historically used to verify higher-profile accounts so other users know it’s really them.
Musk, whose account is verified, replied, “Interesting.” (AP)
Rupee likely to open flat; focus on yuan, Fed meeting
The Indian rupee is tipped to open little changed to the dollar on Tuesday amid more losses in the Chinese yuan and as traders await the outcome of the U.S. Federal Reserve’s policy meeting.
The rupee is expected at open around 82.76-82.82, compared with 82.7800 in the previous session. The local unit witnesses a late selloff on Monday, when it dropped from above 82.50 to near 82.80 in the last hour.
After a relatively quiet few sessions, the USD/INR pair is once again “looking to reassert” its upside momentum, a trader at a Mumbai-based bank said.
The rupee will open flat, but we reckon it will likely weaken later in the session, another trader said. They mentioned the potential for dollar outflows, most likely in the afternoon session.
The Chinese yuan’s weakest fixing since 2008 seems to have soured sentiment for most Asian currencies. The offshore Chinese yuan added to its previous day’s near 1% decline. (Reuters)
Stocks to Watch: Airtel, Axis Bank, Tata Steel, L&T, Supreme Ind, Adani Power, Capri Global, TCI Express, Shriram Properties, Glenmark Pharma
Adani Ports, Tech Mahindra, UPL, Cholamandalam Investment, LIC Housing Finance, JK Tyre, and Sun Pharma will be in focus as they declare their September quarter earnings today. (Read More)
Google pauses Play Store billing in India after CCI ruling
Android maker Google has paused its plans to enforce the Google Play billing system on Indian developers from October 31. The company announced the plan through an update to its help page today. The move comes less than a week after the Competition Commission of India (CCI) imposed two back-to-back fines on the company for flouting competition norms in the country.
On October 25, the CCI ended a more than a year-long investigation into Google, concluding that its decision to impose the Play Billing system on developers is anti-competitive. The competition regulator asked Google to allow third-party payments on its platform, and fined the company ₹936 crore for abusing its dominance in the market. (Read More)
Multibagger stock to consider stock split, bonus share after 900% YTD return
Alstone Textiles (India) shares are one of the multibagger stocks that the Indian stock market has produced in 2022. The small-cap textile stock is in news these days for hitting the upper circuit on a regular basis. The board of directors of the company has announced to consider a stock split in a 10:1 ratio. The small-cap company board has also announced to consider the issuance of bonus shares. The final decision in regard to the stock split and bonus share issue will be taken in the upcoming board meeting scheduled on 10th November 2022. (Read More)
Cryptocurrency prices today: Bitcoin, ether gain, dogecoin rallies over 9%, Shiba Inu up 6%
In cryptocurrencies, the world’s largest and most popular digital token Bitcoin’s price today was trading almost flat at $20,478. After surging to an all-time high of almost $69,000 in November last year, Bitcoin’s price has been trading in a narrow range of around $20,000 since June this year.
On the other hand, Ether, the coin linked to the ethereum blockchain and the second largest cryptocurrency, also surged by nearly a per cent to $1,580. Meanwhile, dogecoin price today was trading more than 9% higher at $0.12 whereas Shiba Inu was also about 6% up to $0.000012. Dogecoin has gained 100% this past week, far exceeding the advances of the world’s two largest tokens, Bitcoin and Ethereum. (Read More)
China’s Oct factory activity shrinks as COVID curbs hit output, demand – Caixin PMI
China’s factory activity weakened in October as protracted COVID-19 restrictions disrupted production and subdued demand, a private-sector survey showed on Tuesday, suggesting a weaker economic recovery in the fourth quarter.
The Caixin/S&P Global manufacturing purchasing managers’ index (PMI) stood at 49.2 in October, up from 48.1 in September and slightly above analysts’ expectations for 49.0. But the figure was still below the 50-point mark that separates growth from contraction on a monthly basis.
In line with China’s official PMI, which unexpectedly fell into contraction last month, waning factory activity weighed on the fragile recovery of the world’s second-biggest economy amid a deepening property crisis and weakening demand. (Reuters)
Credit Suisse Is Not For Sale, Chairman Says
Any bargain hunters hoping to snap up Credit Suisse Group AG now that the lender’s revamp has pushed its stock down yet again may find themselves getting short shrift in Zurich.
“We are going to thrive again, so we don’t have any takeover discussions,” Credit Suisse Chairman Axel Lehmann said in an interview with Bloomberg Television in Hong Kong on Monday. “We want to stay independent.”
With its share price slumping by more than half this year, the 166-year-old institution has been vulnerable to rumors of takeover bids and concerns over its stability. Lehmann said the 4 billion Swiss franc ($4 billion) capital increase would make the lender “rock solid,” helping it to carry out a vital restructuring that radically downsizes the loss-making investment bank and shrinks its trading operations. (Bloomberg)
Airlines brace for impact as supply chain issues emerge as carriers may face shortage of parts, engines, aircraft
The winter schedule for airlines in India started on 30 October, with companies bracing for the impact of supply chain issues due to a a shortage of parts, engines and planes.
“For any industry, capacity deployment is a key parameter for its fixed cost absorption. Supply chain issues for aircraft, leading to their non-availability for flying, will lead to under absorption of capacity, impacting the earnings, given we are in the midst of the winter/festive travel season,” said Suprio Banerjee, vice president and sector head at ICRA.
There are visible challenges that Indian airlines are facing due to supply chain issues. For IndiGo, the largest airline in the country with a 58% market share, over 35 aircraft, or more than 12% of its fleet, have been grounded for at least seven days, a data analysis by Mint from Flightradar24 showed. The problem is not limited to IndiGo and is more severe for airlines such as GoFirst, which has around 8% market share and have a fleet size of 59 aircraft. (Read More)
India’s gold demand dips as inflation hits rural buyers
India’s gold consumption in the months of October to December could fall by around a quarter from a year ago as inflation depresses rural demand, the World Gold Council (WGC) said on Tuesday.
The lower purchases in the world’s second-biggest gold consumer could weigh on prices, which are trading near their lowest level in more than two years.
Falling demand for gold imports could also help to narrow India’s trade deficit and support the rupee.
Higher inflation is likely to curb rural demand, which was starting to recover from disruption caused by last year’s COVID-19-led lockdowns, Somasundaram PR, regional chief executive officer of WGC’s Indian operations, told Reuters. (Reuters)
Rupee slumps 34 paise to 82.81 against US dollar
The rupee pared its initial gains and settled 34 paise lower at 82.81 against the US dollar on Monday, tracking the strength of the American currency in the overseas market.
At the interbank foreign exchange market, the local unit opened at 82.35 and witnessed a high of 82.32 and a low of 82.82.
It finally settled at 82.81 against the American currency, registering a fall of 34 paise over its last close of 82.47.
The Indian rupee depreciated on Monday amid strength in the US dollar. However, positive domestic equities and weak crude oil prices cushioned the downside, said Anuj Choudhary – Research Analyst at Sharekhan by BNP Paribas (PTI)
Tata Steel Q2 results: Consolidated PAT dips 87% to ₹1,514 cr, misses estimate
Homegrown steel major Tata Steel on Monday reported a consolidated profit after tax (PAT) of ₹1,514 crore for the quarter ended September 2022 on the back of higher costs and weak operational performance amid a global economic slowdown. The PAT was lower by 87% compared to a profit of ₹11,918 crore recorded during the same quarter last year.
On a sequential basis, the PAT witnessed a decline of 80% from ₹7,764.96 crore achieved during the April – June quarter. (Read More)
Airtel net profit surges 86%, Arpu at industry high of ₹190
Bharti Airtel Ltd’s fiscal second-quarter profit rose 86% from a year earlier on subscriber additions and higher revenue per user. But the company’s earnings still missed analysts’ estimates, prompting the company to call for another round of industry-wide tariff increases.
Net profit rose to ₹2,145 crore for the September quarter from ₹1,134 crore in the year-ago period. Profit rose 33% sequentially from ₹1,607 crore in the June quarter.
Revenue, however, beat analysts’ estimates, rising over 22% to ₹34,526 crore, boosted by 4G customer additions. Sequentially, revenue rose 5.2% from ₹32,804 crore. (Read More)
Sebi bans Mehul Choksi from capital market for 10 yrs; slaps ₹5 cr fine
Sebi on Monday barred fugitive businessman Mehul Choksi from the securities markets for 10 years and imposed a fine of ₹5 crore on him for indulging in fraudulent trading in the shares of Gitanjali Gems Ltd.
He has been directed to pay the penalty within 45 days, as per the Securities and Exchange Board of India (Sebi) order.
Choksi, who was the chairman and managing director as well as part of promoter group of Gitanjali Gems, is the maternal uncle of Nirav Modi. Both of whom are facing charges of defrauding state-owned Punjab National Bank (PNB) of more than ₹14,000 crore. (Read More)
Bain Capital to sell $410 million Axis Bank stake
Bain Capital will sell a 1.24% stake in private lender Axis Bank Ltd through a block trade on Tuesday, which is expected to fetch the private equity investor $410 million, according to the deal terms seen by Mint.
Bain Capital holds a 4.24% stake in Axis Bank as of 30 September through three entities – BC Asia Investments VII, BC Asia Investments III and Integral Investments South Asia IV.
As per the deal terms, BC Asia Investments VII will sell a 1.24% stake at a floor price of ₹888 per share, a 2% discount to the closing price of ₹906 per share on Monday on NSE. (Read More)
Wall Street ends strong month on weaker note; focus on Fed meeting
U.S. stocks lost ground on Monday, with the major indexes closing out a strong month of gains on a weaker foot, as investor focus turned to the Federal Reserve’s policy meeting this week.
The central bank is widely expected to raise interest rates by 75 basis points on Wednesday at the conclusion of its two-day policy meeting, but investors will look for any signals the Fed may be considering a deceleration in interest rate hikes in the future.
The Dow Jones Industrial Average fell 128.85 points, or 0.39%, to 32,732.95, the S&P 500 lost 29.08 points, or 0.75%, to 3,871.98 and the Nasdaq Composite dropped 114.31 points, or 1.03%, to 10,988.15.
For the month, the Dow jumped 13.95%, the S&P climbed 7.99% and the Nasdaq advanced 3.9%.
Apple Inc lost 1.54% after a Reuters report said production of its iPhones could slump by as much as 30% next month due to tightening COVID-19 curbs in China.
Megacap growth names such as Amazon.com and Google-owner Alphabet which have been under pressure in the rising rate environment, were also lower, down 0.94% and 1.85%, respectively. (Reuters)
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