Share Market Highlights 04 Oct 2023: Sensex slides 286 pts; Nifty near 19,450; Axis Bank, SBI, NTPC among top losers

The rupee depreciated 3 paise to settle at 83.23 (provisional) against the US dollar on Wednesday, as a muted trend in domestic equities and sustained foreign fund outflows weighed on investor sentiments.

Forex traders said the strength of the American currency in the overseas market further dented investor sentiments.

At the interbank foreign exchange market, the local unit opened at 83.22 against the US dollar and moved in a range of 83.27 to 83.19. Read more.

Plaza Wires IPO has been subscribed 55.27 times as of 3:51 pm on October 4, 2023. The QIB portion has been subscribed 2.29 times, NII 115.72 times and retail 213.24 times. The issue closes tomorrow.

Indian shares fell to a more than one-month low on Wednesday on broad-based selling, as fears over higher interest rates for a longer period continued to hamper global equities.

The NSE Nifty 50 index settled 0.47% lower at 19,436.10, while the S&P BSE Sensex lost 0.44% to 65,226.04. Both benchmarks closed at levels that were the lowest since September 1.

Eleven of the 13 major sectoral indexes logged losses, with index heavyweight banks falling 0.98%. Public-sector banks and realty lost 2.83% and 1.73%, respectively.

The more domestically focussed small- and mid-caps underperformed the blue-chips, losing between 1.25% and 1.5%. Read more.

India hosts the ICC Men’s Cricket World Cup 2023, starting on October 5 with the first match set to take place between England and New Zealand at Narendra Modi Stadium, Ahmedabad.

Onset of the World Cup season will likely impact the country’s stock market. Noting that the quadrennial event is spread across ten cities, a report by Way2Wealth Brokers Pvt Ltd. stressed that sectors like travel, tourism, hotels, food, and beverages will be the major beneficiaries.

Here are some of the stocks that are likely to benefit this World Cup season.

Infosys Ltd informed the exchange that the company received communication for collection of penalty from Mauritius Revenue Authority (penalty - MUR 5,000 imposed for late submission of annual TDS statement for assessment year 2023-2024). The stock traded at ₹1,449.50, up by 1.08% on the NSE.

Vardhman Textiles Ltd has allotted 32,250 Equity shares of face value ₹2 each to the eligible employees of the Company who have exercised their stock options.

The stock declined by 2.84% on the NSE, and traded at ₹365.45.

W.e.f Tuesday, October 10, 2023, Mirae Asset Emerging Bluechip Fund will now accept SIPs up to Rs 25,000/- per PAN per month. The AMC has notified this change via Notice cum Addendum NO. 49/2023 on October 3, 2023. Existing and new investors can now opt to register a new SIP up to Rs 25,000/- irrespective of their earlier installment amounts. The previous maximum limit was capped at Rs 2,500/- (since Nov 2020).

TCPL Packaging Ltd has further acquired 38,600 shares of its subsidiary company, Creative Offset Printers Pvt. Ltd, from one of the promoters of COPPL at a consideration of ₹1.85 crore. The stock is up by 0.39% on the NSE, trading at ₹2,133.

Lloyds Metals And Energy Limited informed the exchange that its DRI production increased by 22% y-o-y and Iron Ore production by 280% y-o-y. The stock is up by 0.45% on the NSE, trading at ₹552.40.

Strides Pharma Science Ltd’s stepdown wholly-owned subsidiary, Strides Pharma Global Pte. Limited, Singapore, has received USFDA approval for Efavirenz (600mg), Emtricitabine (200mg), Tenofovir Disproxil Fumurate (300mg), (EET) tablets. The stock is up 1.82% on the NSE, trading at ₹505.15.

20 Microns Ltd has been in discussion with Sievert Baustoffe Auslandsbeteiligungen GmbH, a German company, for formation of Joint Venture Company in India, which will undertake production of construction chemicals and building material related products. The company has received term sheet in relation to the said joint venture.

20 Microns stock rose by 4.18% on the NSE, trading at ₹145.95.

Samvardhana Motherson International Ltd is to acquire 100% of Yachiyo’s Indian subsidiary Yachiyo India Manufacturing Pvt Ltd (YIM) as against indirect 81% acquisition under the earlier announcement. “This change of structure will not have any impact on the consideration and timelines,” the company said in its regulatory filing.

The stock declined by 3.29% on the NSE, trading at ₹92.60.

Kotak Mahindra Asset Management Company has collected over Rs 3,600 crore through the new fund offer of multi asset allocation fund. The NFO, which closed on September 14, registered the highest ever collection made by the fund house in an NFO, with over 1 lakh applications. The fund was made available for continuous sale and repurchase from Tuesday.

Nilesh Shah, Managing Director, KM AMC said the response for the Multi Asset Allocation NFO demonstrates the faith that investors have put in Kotak Mutual Fund.

The new fund will invest in equity and equity-related securities, Debt and Money Market Instruments, Commodity ETFs and Exchange Traded Commodity Derivatives. It aims to address the need of investors for a complete asset allocation solution that provides them access and convenience to various asset classes through a single investment vehicle.

The Plaza Wires IPO has been subscribed 48.08 times as of 3:03 pm on October 4. The QIB portion has been subscribed 1.97 times, NII 97.63 times and retail 190.20 times. The issue closes tomorrow.

Major gainers at 3 pm

Adani Enterprises (3.24%); Nestle India (2.92%); Hindustan Unilever (1.60%); Eicher Motors (1.48%); HDFC Bank(1.06%)

Major losers:

Axis Bank (-3.91%); NTPC (-2.78%); IndusInd (-2.50%); SBI (-2.50%); Ultratech Cement (-2.36%)

A total of 1,202 stocks advanced on the BSE at 3 pm on October 4, against 2,444 stocks that declined; 130 stocks remain unchanged. A total of 3,776 stocks were traded. The number of stocks that recorded a 52-week high was 200, and those that hit a 52-week low was 39.

Reliance Brands Ltd (RBL), through its wholly-owned subsidiary in the UK (RBUK), has signed a definitive agreement to enter a joint venture with UK-based Superdry PLC. The joint venture entity will acquire Superdry’s intellectual property assets for the India, Sri Lanka, and Bangladesh territories.

Reliance stock is down by 0.25% on the NSE, trading at ₹2,312.35.

Fitch Ratings expects resilient economic growth in India and a more favourable operating environment to contain potential deterioration in asset performance in Indian ABS, despite global economic headwinds.

We do not expect material deterioration in performance after total delinquencies in our rated transactions rose slightly starting mid-2022, from historical lows in December 2021, reflecting a normalisation in delinquencies. All Fitch-rated Indian ABS transactions have sequential repayment structures, which result in rapid deleveraging, creating additional credit buffers for the rated notes, unless the asset performance deteriorates significantly.

Archean Chemical Industries has received a certificate of incorporation for NEUN INFRA Pvt Ltd., a wholly-owned subsidiary, from the Ministry of Corporate Affairs. The stock is down 0.95% on the BSE, and is trading at ₹603.45.

Nodwin Gaming International Pte Ltd (Nodwin Singapore), a wholly-owned subsidiary of Nodwin Gaming Pvt Ltd, has entered into a Share Sale & Termination Agreement with Nazara Technologies FZ LLC (Nazara Dubai), wholly-owned subsidiary of the company, and Publishme Global FZ LLC (PublishMe), subsidiary of Nazara Dubai and Mr. Ozgur Ozalp, founder shareholder of PublishMe, for the purpose of acquisition of 100 per cent stake of Publishme.

The Nazara stock declined by 1.10 per cent on the NSE, trading at ₹824.95.

In its latest report ‘India Real Estate Q3 2023’, Knight Frank India has said eight leading residential markets in India continued to show strong growth momentum. During Q3 2023 (July–September 2023), sales surged to 82,612 residential units, recording a growth of 12 per cent YoY. In volume terms, Q3 2023 recorded a six-year high in quarterly sales volumes.

31 Indian corporates raised ₹26,300 crore# through main board IPOs in the first half of 2023-24, 26 per cent lower than the ₹35,456 crore mobilised by 14 IPOs in the same period in 2022-23, according to primedatabase.com, a database on the primary capital market. However, excluding the mega LIC IPO, which took place last year, IPO mobilisation increased by a huge 76 per cent from last year.

According to Pranav Haldea, Managing Director, PRIME Database Group, overall public equity fundraising increased by 69 per cent to ₹73,747 crore from ₹43,694 crore in the first half of 2022-23.

Deepak Nitrite Ltd has got board approval for incorporation of a wholly-owned subsidiary and investment of up to ₹5 crore in the equity capital of the proposed company, from time to time, in one or more tranches.

The stock has declined by 2.13% on the NSE, and is trading at ₹2,074.25.

Niraj Cement Structurals informed the exchange that Niraj Jandu JV has received work order from National Highway & Infrastructure Development Corporation Limited (NHIDCL) in the state of Manipur, worth ₹292.44 crore.

The board of Karma Energy Ltd has approved complete closure of activities of its Wind farm site at Anantpur District, Andhra Pradesh, and permanently cease the power generation operations at the said undertaking with effect from close of business hours of October 5, 2023 in view of the wind electric generators having worked much beyond its operating life.

Plaza Wires IPO has been subscribed 43.93 times as of 1:30 pm on October 4, 2023. The QIB portion has been subscribed 0.97 times, NII 89.37 times and retail 177.45 times. The issue closes tomorrow.

Stocks fell on Wednesday as an ongoing rout in global bond markets saw U.S. bond yields reach 16-year highs, challenging equity valuations and souring appetite for risk assets as investors bet interest rates will remain persistently high.

At 1.45 pm, the benchmark BSE Sensex fell 578.86 points, or 0.88%, to 64,933.24, while the broader NSE index lost 172.75 points, or 0.88%, to 19,356, after mixed cues from September sales dragged auto stocks down, while information technology (IT) stocks, pharma, Realty, Oil & Gas, consumer durables and PSU Bank stocks fell on worries of a prolonged high interest rate regime in the U.S.

The Indian rupee weakened 0.06% versus the U.S. dollar, and quoted at 83.26 per dollar, tracking Asian peers.

European stocks tumbled as much as 0.6% before clawing back some ground, with indexes in France and Germany both posting losses. The moves came after Asian shares sank to 11-month lows.

The pain was set to spread to Wall Street, where S&P 500 futures traded down 0.5%.

Alembic Pharmaceuticals Limited informed the exchange that due to flash floods in river Teesta because of cloud burst, water entered the manufacturing facility at Namthang, South Sikkim, and hence manufacturing operations stand disrupted w.e.f. 4 th October, 2023.

The stock is down by 1.23% on the NSE, trading at ₹781.05.

Centrum Capital Ltd informed the exchange that a new step down subsidiary named Centrum Finverse Ltd has been incorporated as a wholly owned subsidiary of Centrum Financial Services Ltd (a wholly owned subsidiary of the Company).

The stock is down by 1.27% on the NSE, trading at ₹23.40.

Pasupati Acrylon Ltd informed the exchange that manufacturing operations at Acrylic Fiber Plant of the company have resumed. The stock falls by 6.05% on the NSE, trading at ₹38.05.

Softtech Engineers (20%)

Apollo Micro Systems (9.97%)

Diamond Power Infrastructure (9.89%)

Sasken Technologies (8.38%)

MPS (6.91%)

Fineotex Chemical has received accreditation by National Accreditation Board for Testing and Calibration Laboratories (NABL) for the laboratory situated at Sasmira Institute, Worli, Mumbai.

The stock declines by 1.43% on the NSE, trading at ₹312.95.

The credit exposure of banks to Non-Banking Financial Companies (NBFCs) stood at Rs 13.8 lakh crore in August 2023, indicating a 25.8% year-on-year (y-o-y) growth. This expansion is indicative of the robust progress observed in NBFCs during the post-pandemic period. Furthermore, the proportion of NBFC exposure in relation to aggregate credit has risen from 8.8% in August 2022 to 9.3% in August 2023. On a month-on-month (m-o-m) basis, the amount rose by 0.6%.

Meanwhile, the Mutual Fund (MF) debt exposure to NBFCs, including Commercial Papers (CPs) and Corporate Debt, witnessed an increase of 35.8% to 1.77 lakh crore in August 2023 with CPs remaining above the one lakh crore threshold last seen in August 2019. Based on discussions with market participants, the trend is likely to continue. Large NBFCs focused on the capital market, while mid-sized and smaller NBFCs continued their reliance on the banking system as their primary source of funding. However, given the general credit risk aversion of MFs, the exposure to NBFCs, particularly those rated below the highest levels, is not expected to witness significant growth. Consequently, the aggregate dependence of mid-sized NBFCs on the banking sector for funding is likely to remain high while larger NBFCs will continue to move towards the capital markets.

Highlighting the relative size of their exposure to NBFCs, MFs’ debt exposure to NBFCs touched 12.8% as a percentage of “Banks’ advances to NBFCs” in August 2023 from 11.8% in August 2022 and 13.1% in July 2023.. -- CareEdge report

Superdry plc is has signed an intellectual property joint venture agreement with Reliance Brands Holding UK Ltd (RBUK), and agreements for the sale of Superdry’s intellectual property assets, including the SUPERDRY brand and related trademarks in India, Sri Lanka, and Bangladesh to the joint venture vehicle. RBUK and Superdry will own 76% and 24% of the joint venture vehicle respectively.

UK branded clothing company Superdry plc has signed an intellectual property joint venture agreement with Reliance Brands Holding UK (RBUK) for the sale of the UK firm’s IP assets in India, Sri Lanka, and Bangladesh to the JV for 40 million pounds.

Reliance Brands Holding will own 76 per cent in the JV while Superdry will hold 24 per cent, a release on the latter’s website said. Superdry said it expects to get cash proceeds of $30.4 million pounds from the sale, net of fees and taxes.

Reliance Retail Ventures is the holding company of RRBUK through its subsidiary Reliance Brands which is Superdry’s exclusive franchise partner in India since 2012.

Post the transaction, Reliance Brands will be in charge of the brand operations in the South Asian countries and will continue to build its partnership with Superdry.

Karnataka Bank has launched three variants of savings accounts under the corporate salary category -- ‘KBL Sal Ultimate’, ‘KBL Sal Delite’, and ‘KBL Sal Pride’.

TIMKEN INDIA: Rs 92.01cr NSE Block Trade; for ~300506 shares, at Rs 3061.75

IndusInd has introduced a new moible banking app - INDIE The stock declines by 2.50% on the NSE, trading at ₹1,399.50.

Tata Power (-3.16%)

NTPC (-2.30%)

Coal India (-1.32%)

Goodluck India Ltd. unveiled plans to tap into the Defence and Aerospace sectors through its wholly-owned subsidiary — Goodluck Defence and Aerospace Private Limited.

The company has also disclosed intentions to issue up to 5 lakh warrants, on a preferential basis to the promoter category, at an exercise price of ₹600 per underlying equity share with a face value of ₹2 each

US 30 year treasury yield breaches 5% for the first time since 2007, as yesterday’s bond sell has continued overnight. Bond markets on Asia also were under pressure, with Japan’s 10 year government bonds breaching 0.8% for the first time since 2011.

Bond volatility can continue to spook equity markets, as yields spike and losses mount for bond investors

Edelweiss Financial Services Limited has announced Public Issue of Secured Redeemable Non-Convertible Debentures (NCDs) for an amount up to ₹200 crore.

The stock rises by 6.11% on the NSE, trading at ₹66.85.

Bank Nifty opened today’s session lower at 44,108 versus Tuesday’s close of 44,399. After marking a low of 43,885, the index is currently trading around 44,000.

The bearish bias is substantiated by the breadth of the index – the advances/ declines ratio stands at 2/10. Read more

Kaushik Mehta, Founder & CEO of RUloans Distribution - 04th Oct 2023

“The forthcoming monetary policy meeting unfolds against a backdrop of cautious optimism. We anticipate the RBI will maintain rate stability, offering promising prospects for borrowers, particularly those contemplating home loans. This stability fosters confident financial planning, reducing uncertainties about interest rates and hasty refinancing decisions. The trajectory of the home loan market in the forthcoming year hinges on economic dynamics and consumer sentiment. If rate stability persists and the economy maintains its positive momentum, we may witness a surge in home loan applications, especially towards year-end, further fueled by the festive season. Diligent monitoring of economic indicators and central bank actions remains vital for both borrowers and lenders.

Leading reg-tech company TSS Consultancy, which has built TrackWizz for fighting financial crimes, has announced the appointment of John Mathew as Advisor, who comes with 36 years of rich experience holding various senior-level positions at the HDFC Group.

Prior to joining TSS, John was a member of the start-up team at HDFC Asset Management. He has been on many governmental and industry committees relating to AML and headed the HDFC Group conglomerate on AML Principal Officers. John has led many initiatives within the industry, such as setting up the first unified digital KYC model, conceptualised and facilitated the launch of the MF Central aggregator platform, and liaising with regulatory bodies and committees on AML/CFT standards and compliance.

Major gainers on the NSE at noon

Adani Enterprises (2.92%); Nestle India (1.38%); Eicher Motors (1.02%); HDFC Bank (0.96%); Hindustan Unilever (0.68%)

Major losers:

Axis Bank (-3.81%); IndusInd (-2.75%); SBI (-2.71%); Ultratech (-2.45%); Apollo Hospitals (-2.37%)

Stocks advanced on BSE at 12 noon on October 4, 2023, were 1,307 against 2,161 stocks that declined; 164 stocks remain unchanged. Total stocks traded were 3,632. The number of stocks that recorded a 52-week high was 179, and those that hit a 52-week low was 29.

Indian shares fell sharply on Wednesday after mixed cues from September sales dragged auto stocks down, while information technology (IT) stocks fell on worries of a prolonged high interest rate regime in the U.S.

At noon, the benchmark BSE Sensex fell 569.58 points, or 0.87%, to 64,942.52, while the broader NSE index lost 168.85 points, or 0.86%, to 19,359.90 dragged lower by worries of a prolonged high interest rate regime in the U.S.

All the sectoral indices are trading in red, lead by auto stocks shed 1.38%, extending their slide for a second session in a row after sales of entry-level vehicles, as well as tractors, showed weakness.

Small- and mid-caps stocks lost over 1%, each.

Currently, out of the 108 securities triggering price bands on the NSE, 74 have reached the upper band, 25 have reached the lower band, and 9 have reached both. Among the 91 stocks hitting 52-week highs and lows, 75 have achieved 52-week highs, while 16 have reached 52-week lows.

While returns may be very important, it cannot be the sole criterion while choosing an investment vehicle to park one’s hard-earned money; one has to look beyond the obvious... Read more

Maximus International Limited, through its step-down subsidiary Quantum Lubricants E.A. Ltd, announced the appointment of an exclusive distributor for their premier range of lubricants and other allied products across Uganda, Tanzania, and Rwanda.

The stock declines by 0.62% on the BSE, trading at ₹16.07.

The rupee depreciated 4 paise to 83.24 against the US dollar in early trade on Wednesday, as the strength of the American currency and a weak trend in domestic equities exerted pressure on the local unit.

Plaza Wires IPO has been subscribed 34.56 times as of 11:06 am on October 4, 2023. The QIB portion has been subscribed 0.43 times, NII 66.99 times and retail 146.10 times. The issue closes tomorrow.

Tata Consultancy Services (TCS) has announced a multi-year partnership with British retail giant Asda to support its digital transformation and to implement a new organisation-wide IT operating model, following its divestiture from Walmart.

TCS stock is down by 0.76% on the NSE, trading at ₹3,487.20.

Major gainers on the BSE at 11am:

AWL (6%); Edelwesis (5.86%); MRPL (5.78%); Navneet Education (4.84%); Suzlon (4.73%)

Major losers:

Max Health (-3.95%); M&M Financial (-3.84%); IDFC(-2.52%); Lodha (-3.50%); LT Finance (-3.33%)

Nifty 50 (19,415) began today’s session with a gap-down following bearish cues from the Asian market. The benchmark index is down 0.6 per cent so far.

Among the Asian majors, Nikkei 225 (30,700), ASX 200 (6,880), Hang Seng (17,100) and KOSPI (2,410) are down between 0.8 and 2.2 per cent. Read more

At 11 am, the benchmark BSE Sensex fell 379.80 points, or 0.58%, to 65,132.30, while the broader NSE index lost 112.40 points, or 0.58%, to 19,416.35 dragged lower by worries of a prolonged high interest rate regime in the U.S.

The Indian rupee weakened 0.04% versus the U.S. dollar, and quoted at 83.25 per dollar tracking Asian peers lower on concerns about elevated U.S. yields.

Among individual stocks, Sasken Technologies experienced a substantial surge of 11.21% on the NSE, with shares trading at ₹1,189. This significant jump followed the company’s announcement of collaboration with Qualcomm Technologies, Inc., a renowned player in wireless technologies, through the Qualcomm IoT Accelerator Program.

Similarly, MPS Ltd saw a notable rise of 8.57% on the NSE, with shares trading at ₹1,690.75.

Furthermore, Updater Services made its debut on the NSE at ₹285 and on the BSE at ₹299.90, slightly below its IPO issue price of ₹300. The stock currently trades ₹293.05, down 2.23 per cent.

VST Tillers Tractors and HTC Investments have formed a joint venture VST ZETOR Pvt Ltd, which will initially launch three tractors, VST ZETOR 4211, VST ZETOR 4511, and VST ZETOR 5011 in the 40-50 HP range.

The VST Tillers stock has slipped by 0.28% on the NSE, trading at ₹3,680.80.

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Goodluck India Ltd plans to capitalise on opportunities in the Defence and Aerospace sectors, through its wholly-owned subsidiary, Goodluck Defence and Aerospace Pvt Ltd. The stock has slipped 0.55 per cent on the NSE, and is trading at ₹619.

Updater Services post-listing view by Shivani Nyati, Head of Wealth, Swastika Investmart Ltd.

Updater Services Ltd. made its debut on the stock markets by listing at Rs 285 per share, 5% lower than its IPO price of Rs 300.

Overall, the listing of Updater Services is disappointing for investors. However, the company’s high IPO price, mixed financial performance, and associated risks likely contributed to the negative response in the market. Additionally, current market sentiments could also be a contributing factor to such a listing.

Investors who received allotments in the IPO should consider all these related risks and exit their position after this listing.

RMC Switchgears Limited : Company has fixed Friday, 13” October, 2023 as the “RECORD DATE”. for the purpose of ascertaining the eligibility of shareholders entitled for issue of Bonus Equity Shares of the Company in the ratio of 1:2

Veerhealth Care limited : Company has received order for the third quarter of the financial year from M/s. Vision lmpex Limited, Uganda, East Africa for Fresh Up Red Gel Toothpaste amounting to Rs. 136 Lakhs.

Thomas Cook India Limited : CRISIL Ratings has upgraded its ratings on the bank loan facilities and debt instruments of Thomas Cook India Limited (TCIL) to ‘CRISIL AA-/Stable/CRISIL A1+’ from ‘CRISIL A+/Stable/CRISIL A1

Sofcom Systems Limited : Board meeting to be held on 07 Oct 2023 to Consider Business Expansion and Acquisition of ongoing Business , To discuss fund raising options for future business activities

Avenue Supermarts Limited : The retailer’s standalone revenue for Q2 FY24 was up 18.5% year-on-year at Rs 12,307.72 crore. The total number of stores as of September stood at 336.

Manbro Industries Limited : Board approved Fund raising of an amount not exceeding Rs. 6,00,00,000/-, through a Rights issue to the eligible equity shareholders of the Company as on Record date (to be notified subsequently within due course)

Best Agrolife Limited : Board informed that the search operation u/s 132 was conducted by income-’tax Department at the Company’s Corporate office and Factories and got concluded on September 30.2023. The Company operations have fully started with out Adverse impact

Varroc Engineering Limited : Company’s material subsidiary viz. Varroc Polymers Limited(“VPL”) has entered into Power Purchase Agreement with AMP Energy C&I Six Private Limited and AMP Energy C&I Five Private Limited (hereinafter referred to as “SPVs”) respectively, for establishing Renewable Power Plants in Karnataka and Tamil Nadu having captive capacity of 30 MWp and 21 MWp respectively, under Captive Power Scheme and further in process of acquiring 1% and 3 % stake in the said SPVs respectively

VST Tillers Tractors and HTC Investments have formed a joint venture VST ZETOR Private Limited, which will be initially launching three tractors, VST ZETOR 4211, VST ZETOR 4511, and VST ZETOR 5011 in the 40-50 HP range.

VST Tillers stock slides down by 0.28% on the NSE, trading at ₹3,680.80.

Titagarh Rail Systems stock rises by 2.77% on the NSE, trading at ₹791.25, post securing order from Gujarat Metro Rail Corporation Limited (GMRC).

Sasken Technologies stock surges by 10.91% on the NSE, trading at ₹1,187, after the company announced collaboration with Qualcomm Technologies, Inc., a pioneer in wireless technologies, through the Qualcomm IoT Accelerator Program.

EaseMyTrip and the Government of Uttarakhand have entered into an MoU to elevate the State’s standing as a global tourism hotspot under a deal size worth over ₹250 crore.

EaseMyTrip stock is up by 0.36% on the NSE, trading at ₹42.10.

HDFC Bank reported that its gross advances aggregated to approximately ₹23,54,500 crore as of September 30, 2023, a growth of around 57.7% over ₹14,93,300 crore as of September 30, 2022.

Its deposits aggregated to approximately ₹21,73,000 crore as of September 30, 2023, a growth of around 29.9% over ₹16,73,400 crore as of September 30, 2022.

The stock inches up by 0.48% on the NSE, trading at ₹1,515.25.

The Finance Ministry has sought proposals from Central Ministries and Departments for the first Supplementary Demands for Grants (SDG). The expectation is that the Oil Ministry could place a demand for funds to provide for LPG subsidy, while the Department of Fertilisers is also expected to pitch for additional money.

RVNL stock is up by 0.23% on the NSE, trading at ₹172.90, after the company emerged as the lowest bidder for the project by Himachal Pradesh State Electricity Board Limited, worth ₹444.26 crore.

The Competition Commission of India (CCI) has approved the proposed acquisition of 100% shareholding of Lanco Amarkantak Power Limited (LAPL) by PFC Projects, REC Limited, SJVN Limited and Damodar Valley Corporation (DVC).

LAPL is an unlisted public limited company engaged in power generation in India.

Larsen & Toubro’s Power business arm has secured order from West Bengal Power Development Corporation Ltd to set up wet Flue Gas Desulphurization (FGD) systems for its Thermal Power Plant at Sagardighi in the state of West Bengal.

The stock declines by 1.03% on the NSE, trading at ₹3,041.50.

Major gainers on the NSE at 9:30 am:

Nestle India (2.69%); Hindustan Unilever (0.60%); Adani Enterprises (0.55%); Asian Paints (0.31%); Dr Reddy (0.13%)

Major losers:

NTPC (-3.48%); M&M (-2.09%); Maruti (-1.88%); Power Grid (-1.75%) ; IndusInd (-1.70%)

Elara Capital : India’s alcobev segment has seen cooling off in glass, paper and packaging prices, but Extra Neutral Alcohol (ENA) prices have risen in the past two months due to high grain prices. The cooling off in barley prices YoY will continue to have a positive impact on gross margin of beer companies. Within spirits, volume growth of the popular and regular segment is likely to remain subdued while the P&A segment may continue to show growth momentum, led by premiumization.

Alcobev volume may see a strong uptick in H2FY24, due to the festival season and the Cricket World Cup.

Symbol: UDS

Series: Equity “B Group”

BSE Code: 543996

ISIN: INE851I01011

Face Value: Rs 10/-

Issued Price: Rs 300/- per share

Zinc prices will likely rule stable during the current quarter to December despite having declined last quarter following poor Chinese consumption.

The London Metal Exchange (LME) zinc spot price declined to $2,500 a tonne from an average of about $3,100 a tonne in the previous three quarters on worries over shortages of zinc refining capacity, the Australian Office of Chief Economist (AOCE) said its resources and energy quarterly.

“Global and domestic risks have increased from the August policy. Rising crude oil prices and dollar are having an impact on the depreciating INR. With major developed market central banks seem to be setting up for a long pause at elevated policy rates, the Reserve Bank of India (RBI) has very little space to sound dovish. The RBI will maintain policy rate at 6.5% while aiming to keep liquidity tight.”

Crude oil futures traded marginally lower on Wednesday morning as the market continued to assess the outlook ahead of the meeting of the ministers from Organization of the Petroleum Exporting Countries (OPEC) and its allies, commonly known as OPEC+, scheduled later in the day. At 9.16 am on Wednesday, December Brent oil futures were at $90.85, down by 0.08 per cent; and November crude oil futures on WTI (West Texas Intermediate) were at $89.19, down by 0.04 per cent. October crude oil futures were trading at ₹7428 on Multi Commodity Exchange (MCX) in the initial trading hour of Wednesday morning against the previous close of ₹7448, down by 0.27 per cent; and November futures were trading at ₹7298 as against the previous close of ₹7317, down by 0.26 per cent.

Eco Recycling Limited, a company dedicated to environmental stewardship and responsible e-waste management, has launched its “Recycling on Wheels Smart-ER” initiative. The project was inaugurated by Union Minister Dr. Jitendra Singh.

Stabilization of Japanese Yen: The Japanese yen stabilized near the level of 149 yen per US dollar.

Unexpected Surge: In the previous session, the Japanese yen experienced an unexpected surge, with its value appreciating significantly. This sudden movement raised concerns that authorities might have intervened in the currency markets to support the yen.

Yen’s Fluctuations: The yen initially jumped as much as 1.7% to reach 147.3 yen per US dollar but later retraced most of those gains.

US Jobs Data Impact: The yen’s movement was influenced by stronger-than-expected US jobs data, which reinforced expectations that the Federal Reserve would maintain higher interest rates for an extended period.

Government Monitoring: Finance Minister Shunichi Suzuki expressed caution and stated that he was closely monitoring currency movements. This suggests that Japanese authorities are paying attention to the yen’s exchange rate.

Intervention History: In the past, Japanese authorities intervened in the currency markets to prevent excessive yen appreciation. The last time such intervention occurred was in 1998 when the yen had weakened to 145.9 against the US dollar.

Yen Weakening in 2023: The Japanese yen has experienced significant weakening throughout the year, in contrast to other major central banks that have pursued tightening monetary policies.

Trent Ltd informed the exchange that Booker India Limited, a subsidiary of the company, has acquired approximately 4.95% of the equity share capital of its subsidiary, Fiora Online Limited from a shareholder.

Indian benchmark indices started the day on a weak note on Wednesday due to fresh economic data causing concerns about U.S. interest rates. This sentiment weighed on Asian shares.

At 9:17 am, the BSE Sensex, consisting of 30 shares, dropped 414.94 points to reach 65,097.16, while the NSE Nifty fell 124.80 points to reach 19,403.95.

Among the gainers in the Nifty pack were Nestle India, Adani Enterprises, Hindustan Uniliver, Adani Ports, and BPCL, while Maruti, Ultratech Cement, Tata Steel, Apollo Hospitals, and Grasim were among the laggards.

The decline in Wall Street equities followed data that unexpectedly showed a rise in job openings in August, indicating a persistently tight labor market and raising the possibility of a prolonged period of high interest rates. Asian stocks also hit an 11-month low.

On the previous day, the Nifty 50 had closed lower, with auto stocks being dragged down by mixed sales data for September.

Analysts noted that sentiment remained subdued in global markets due to concerns about interest rates, and they expected weakness in domestic equities to persist.

Foreign institutional investors have been net sellers for the last ten sessions, selling shares worth Rs 2,034 crore on Tuesday, while domestic institutional investors bought shares worth Rs 1,361 crore.

AU Small Finance Bank has reported a 30 per cent year-on-year (YoY) increase in total deposits and 24 per cent YoY increase in gross advances in the second quarter ended September 30, 2023.

As at September-end 2023, the Bank’s total deposits stood at Rs 75,743 crore (Rs 58,335 crore as at September-end 2022), per provisional information uploaded on the exchanges.

Low cost current account, savings account (CASA) deposits declined to 33.9 per cent as at September-end 2023 from 42.3 per cent as at September-end 2022. CASA deposits increased by 4 per cent YoY to Rs 25,666 crore (Rs 24,674 crore).

The Bank said its average Cost of Funds (COF) for Q2 (July-September) FY24 increased by 12 basis points (bps) quarter-on-quarter (QoQ) to 6.70 per cent as against 6.58 per cent in Q1 (April-June)FY24.

As at September-end 2023, the Bank’s gross advances stood at Rs 65,029 crore (Rs 52,452 crore as at September-end 2022). per its exchange filing.

“Bank Securitized loan portfolio of ₹2,922 crore in Q2FY24 to diversify funding profile and optimise cost. The total securitised/assigned book stands at ₹6,591 crore as against ₹4,374 crore as on 30th June 2023,” AU SFB said.

Despite higher competitive intensity for deposit mobilisation, the Bank grew its overall deposits by 9 per cent sequentially (QoQ) and 30 per cent YoY with CASA deposits growing by 6 per cent QoQ, according to th bank’s management commentary.

“Credit demand remains resilient with disbursement sustaining across products and the Bank continued to see an uptick in disbursement yields on a QoQ basis. Asset quality continues to follow the seasonal trend and remains within the range,” it added.

Hero MotoCorp set to commence deliveries of its first co-developed premium motorcycle Harley-Davidson X440 on October 15, the first day of the Navratri.

Gross tax revenues surged 95 per cent YoY in August (versus 2 per cent YoY in July) led by sharp spikes in personal/ corporate taxes. Adjusting for fluctuations, GTR rose 12 per cent YoY with direct taxes growing 18 per cent YoY (five-month high). GST growth moderated in September to 10.2 per cent YoY (10.8 per cent in August). Rural spending accelerated 17 per cent YoY in August.

The promoters of leading packaging firm Polyplex Corp. will sell a 24.3 per cent stake to Dubai-based AGP Holdco Ltd. for Rs 1,188.9 crore

The deal amount has been revised from Rs 1,379.47 crore announced in May.

As per the terms of the deal, AGP Holdo will have the right to appoint one director to the board of Polyplex. The director will also be a member of identified board committees. The investor will have similar director appointment rights on the boards of the identified subsidiaries of Polyplex, according to an exchange filing on Tuesday.

IT sector revenue growth may turn out to be modest in September quarter due to lower discretionary tech spends and delay in execution of deals, said Nuvama Institutional Equities. However, demand stays solid and expected to record a strong deal flows yet again. This should translate to a strong recovery in H2FY24, it said.

Citi on M&M Fin: Maintain Buy, target price at Rs 355

Jefferies on Bajaj Finance: Maintain Buy, target price at Rs 8830

MS on Bajaj Finance: Maintain OW, target Rs 10300

MOSL on RBL Bank: Maintain Neutral, target Rs 240

Jefferies on HDFC Bank: Maintain Buy, target at Rs 2030

Citi on Bajaj Fin: Maintain Neutral, target Rs 7800

Citi on D Mart: Maintain Sell, target Rs 3060

HSBC on Alkem Labs: Maintain Hold, target:Rs 3910

MS on M&M Fin: Maintain EW, target Rs 300

Kotak on SAIL: Maintain Sell, target Rs 50

The number of housing units registered in Mumbai in last month rose 24 per cent YoY (down 2 per cent MoM) to 10,694 units. The overall value of units registered increased 54 per cent YoY/39 per cent MoM to Rs 18,800 crore. YTD CY23 value of units registered, at Rs 1.4 lakh crore, was up 18 per cent YoY. Meanwhile, registrations in Maharashtra, as a whole, were up 11 per cent YoY (down 5 per cent MoM).

Exicom Tele-Systems Limited

Vibhor Steel Tubes Limited

Azad Engineering Limited

Saraswati Saree Depot Limited

Capital Small Finance Bank Limited

Juniper Hotels Limited

Agilius Diagostics Limited

Road project awards by the NHAI in September were sluggish with the award of just one project spanning 25 km. During the month, 154 km of roads were constructed (versus 179km in August and 214km in September 2022). Year to FY24, NHAI’s road awards at 195km are down 86 per cent YoY, whereas road construction at 1,417km is up 3 per cent YoY, said Nuvama Institutional Equities. In FY23, road awards aggregated 6,310 km across 179 projects and construction totalled 4,882 km, it said

Suman Chowdhury, Chief Economist and Head-Research, Acuité Ratings & Research on Q1 FY24 BoP.

“Crude oil prices always had an adverse impact on India’s external position and it is unlikely to be different this time around. The spurt in crude prices by over USD 15 pb in Jul-Sep’23 will be reflected in higher merchandise trade and current account deficit in Q2 and the subsequent quarters. Accordingly, we have revised our forecast of CAD to 1.9% of GDP in FY24.

Higher interest rates in US and other developed economies along with risk of higher domestic inflation will also keep the capital flows volatile in the near term although it may get partly offset by the news of India’s inclusion in J P Morgan EM bond index from Jun’24. These developments have already been reflected in the movement of the INR that hit a new low of 83.3 to the dollar and has a significant likelihood of touching 84.0 in the near term.

Nevertheless, we don’t expect any sustained pressure on India’s external metrics, given the lack of strength in the global economy and the country’s robust forex reserves.”

MGL has cut CNG price by Rs 3/kg (4 per cent) to pass on lower cost as well as normalise margins. Nuvama Research believes, this should trigger volume growth of 7–8 per cent for the rest of FY24

Aditya Gore, Head- International Coverage and Research, Nuvama Fixed Income advisory

· 10Y benchmark (7.18 GS 2033) yield opened the day higher at 7.24% tracking a sharp rise in US treasury yields overnight. The day saw yields falling to 7.21% early in the afternoon but saw mild profit booking in late trade. The 10y point closed at 7.23% vs 7.22% previous.

· SDL auction results: 10Y SDL cut-off came at 7.54%, 12Y SDL at 7.58%, 15Y SDL at 7.51%, 21Y SDL at 7.49%. Total amount of INR 225bn was accepted against the notified amount of INR 225bn.

· Crude oil prices were trading around USD 90/barrel during the opening hours tracking moves higher in the USD and treasury yields overnight and were ranged through the day.

· Rupee opened the day lower at 83.21 tracking the stronger USD overnight and was ranged between 83.17 to 83.24 through the day.

PSU bond yields end the day worse.

· In non-SLR segment, bond yields traded 3-5 bps higher today.

· 5Y quality corporate names were quoted around 7.71% handle and the 10Y traded around 7.60% handle respectively in the PSU segment. 5-10s curve was inverted at 11bps in PSU and 7bps in non-PSU segment.

· Primary pipeline continues to build up with multiple issuances between 2Y and 5Y maturity bucket (kindly refer the annexure for further details).

· In money market, AAA 3M CP closed flat at 7.10%.

Yug Decor Ltd

Bonus issue 15:100

Previous day Closing Price – Rs. 98.56

Ex Bonus 05 October 2023 (Tomorrow)

Rising bond yields and the bullish momentum in the U.S. dollar are affecting commodity prices, but investment bank Robert Minter suggests that investors should hold copper, gold, and silver in their portfolios due to emerging global economic trends. Minter believes that investors underestimate the growing supply imbalance, impacting the global economy and keeping inflation elevated. He believes that the Federal Reserve will not be able to bring inflation back to its 2% target, and gold remains an attractive asset as inflation keeps real interest rates low. The supply of critical LME metals, such as nickel, lead, zinc, aluminium, and copper, is still near their lowest levels in decades. Minter also believes that U.S. government environmental policies, such as President Joe Biden’s declaration and the Grand Canyon National Monument, are exacerbating supply issues. He recommends central banks continue to buy gold to diversify their holdings and protect their purchasing power.

The Securities and Exchange Board of India, on Tuesday, introduced a centralised mechanism to report the demise of an investor. This would be undertaken through the KYC registration agencies. In accordance with a SEBI circular, an intermediary who receives notification of an investor’s death from a nominee, joint account holder, or even a family member is required to obtain and verify the investor.

Stocks of crude oil in the US dropped by 4.21 million barrels in the week that ended September 29th, 2023, following a 1.586 million barrels increase in the previous week, data from the API’s Weekly Statistical Bulletin showed. It marked the sixth weekly draw in US Crude Oil Inventories in the last eight weeks.

Currencies

# The Bloomberg Dollar Spot Index rose 0.2%

# The euro was little changed at $1.0471

# The British pound was little changed at $1.2078

# The Japanese yen rose 0.7% to 148.77 per dollar

Cryptocurrencies

#Bitcoin fell 2% to $27,278

# Ether fell 0.9% to $1,650.68

Bonds

# The yield on 10-year Treasuries advanced 12 basis points to 4.80%

# Germany’s 10-year yield advanced five basis points to 2.97%

# Britain’s 10-year yield advanced three basis points to 4.60%

Commodities

# West Texas Intermediate crude rose 0.8% to $89.56 a barrel

# Gold futures fell 0.4% to $1,840.10 an ounce

# China has week-long holiday

# New Zealand rate decision, Wednesday

# Eurozone services and composite PMIs, Wednesday

# ECB President Christine Lagarde gives welcome address at conference, Wednesday

# US ISM services index, Wednesday

# France industrial production, Thursday

# BOE Deputy Governor Ben Broadbent, Riksbank First Deputy Governor Anna Breman participate at panel discussion, Thursday

# San Francisco Fed President Mary Daly speaks at the Economic Club of New York, Thursday

# Germany factory orders, Friday

# September US nonfarm payrolls, Friday

Stocks sank while Treasury yields hit new multi-year highs after jobs data bolstered the case for the Federal Reserve to keep interest rates elevated. Dow posts worst day since March: With Tuesday’s losses, the Dow went into the red for the year, off by 0.4%. The broader S&P 500 is still up 10% for 2023.. Data showed U.S. job openings unexpectedly increased in August, fueling worries about a tight labor market ahead of Friday’s key U.S. monthly jobs report.

The S&P 500 fell 1.4% to a four-month low while the Nasdaq 100 index dropped 1.8% after job openings unexpectedly increased in August. A House vote oustering Speaker Kevin McCarthy could further fuel uncertainty tomorrow. Wall Street’s fear gauge, the CBOE Volatility Index or VIX, rose above 20 intraday — a key level signaling increased skittishness in the market — the highest such reading since May. The ICE BofA MOVE Index, which tracks expected bond volatility, also approached May peaks.

Shares of Amazon.com and Microsoft dropped after Reuters reported British media regulator Ofcom will push for an antitrust investigation into the companies’ dominance of the UK cloud computing market.

Investors are getting ready for U.S. companies in the coming weeks to begin reporting on the last quarter, with some hoping the results could provide some positive news again for the market.

Markets tumbled across the board after the number of available positions rose to 9.61 million from less than 9 million in July, according to the Bureau of Labor Statistics’ Job Openings and Labor Turnover Survey, or JOLTS. The report drove swaps traders to increase wagers on the Federal Reserve raising rates in December to better than a 50-50 odds.

Investors have yet to fully embrace the Fed’s higher-for-longer narrative and are instead following “fickle market momentum,” according to Luke Templeman, an analyst at Deutsche Bank. “Small catalysts are causing an outsized number to attempt to preempt market moves.”

“The dominant market theme, therefore, is one that many developed-market investors have not had to deal with since the ‘08-’09 crisis: volatility,” he added.

The next datapoint for the labor market will be a monthly payrolls print on Friday where traders will looking for any signs of cooling.

“Unless, the NFP report comes in lower than expected, Wall Street will likely start to fully price in at least one more Fed rate hike before the end of the year

Yields on the US 10- and 30-year traded to the highest level since 2007, with the longer-term bond reaching above 4.9%. Wall Street has been speculating that rates on longer dated bonds will hit 5%. The climb in yields was also stoking anxiety in the credit market where at least two issuers called off sales Tuesday. The average rate on a 30-year fixed mortgage neared 8%.

Seasonal weakness is “pretty normal” for the market in September and October, according to Chris Zaccarelli, chief investment officer at Independent Advisor Alliance. However, he noted that ongoing concerns about higher interest rates could mean more downside is ahead for stocks.

“The threat to equities is more along the interest rate side. We really need to get through this bond sell-off, and find some type of equilibrium in the bond market, before we think stocks will be able to find a bottom,” he said

Volume on U.S. exchanges was 11.16 billion shares, compared with the 10.57 billion average for the full session over the last 20 trading days.

What drove markets

Climbing U.S. bond yields remain the prime focus of traders, with the selloff in stocks pushing the Dow into negative territory for the year.

*Stocks were starting the week and fourth quarter on a volatile note as the 10-year Treasury yield, the global benchmark, rose above 4.8% to its highest level since Aug. 13, 2007. The 30-year rate was at its highest in 16 years, too, jumping above 4.9%. *

“Stocks and bonds are taking it on the chin again with deteriorating liquidity conditions and stronger-than-expected economic data weighing,” according to José Torres, senior economist at Interactive Brokers.

Now investors have a new shot of strong data to handle. Job openings in August rose to 9.6 million from a revised 8.9 million in July. That tops forecasts of 8.8 million openings in August.

The newest numbers “underpinned the narrative that the labor market remained solid. Job seekers able to negotiate higher wages are a challenge for the Federal Reserve trying to address inflation with its benchmark rate.

What’s hovering over the market is the uncertainty as to how high we can expect rates to go. The other question is how high Treasury yields go. It is the speed at which these rates have risen that have jolted the market.

Higher implied borrowing costs, especially when rising quickly, tend to be a drag on equities, particularly since smaller or debt-laden companies may struggle to raise financing. Moreover, rising yields lower the present value of future corporate earnings, weighing on stock-market valuations.

What could be sinking in is the realization that interest rates and yields really are going to stay higher for longer.

“The strength of the headline is impressive and certainly bodes well for the ongoing strength in the US labor market,“ Ian Lyngen, head of US rates strategy at BMO Capital Markets, wrote. While the JOLTs numbers are from August, “investors are nonetheless interpreting this as yet further confirmation that the US economy can withstand higher real borrowing costs.”

A handful of Republicans in the U.S. House of Representatives on Tuesday ousted Republican Speaker Kevin McCarthy, as party infighting plunged Congress into further chaos just days after it narrowly averted a government shutdown.

The 216-to-210 vote marked the first time in history that the House removed its leader, with eight Republicans voting with 208 Democrats to remove McCarthy.

The rebellion was led by Representative Matt Gaetz, a far-right Republican from Florida and McCarthy antagonist who accused the party leader of not doing enough to cut federal spending or to stand up to Democratic President Joe Biden.

Republicans control the chamber by a narrow 221-212 majority, meaning they can afford to lose no more than five votes if Democrats unite in opposition.

McCarthy’s ouster as speaker essentially brings legislative activity in the House to a halt, with another government shutdown deadline looming Nov. 17 if Congress does not extend funding.

The White House said it hoped the House would move swiftly to choose a replacement speaker, a position second in line to the presidency after the vice president.

Wall Street strategists are warning about the impact that elevated interest rates have on equities, with Goldman Sachs Group Inc., Morgan Stanley and JPMorgan Chase & Co. saying there’s a risk of further stock-market declines.

On Tuesday, Atlanta Fed President Raphael Bostic said there was no urgent need to change course soon. “I am not in a hurry to raise, but I am not in a hurry to reduce either,” Bostic said at a panel discussion. He forecast a single rate cut for 2024, toward the end of the year. Bostic’s comments follow other recent comments from Fed officials showing a willingness to keep interest rates higher for longer.

Comments from other Fed policymakers were more hawkish, with Cleveland Fed president Loretta Mester saying on Monday that one more rate hike was likely needed and Governor Michelle Bowman urging multiple increases.

Traders are seeing a roughly 30% chance of the Fed adding another 25 basis point hike at its coming meeting, according to the CME FedWatch tool.

More labor market data is coming this week. The September ADP private-sector employment report is released Wednesday, followed on Thursday by weekly initial unemployment claims. Then, Friday sees the all-important nonfarm payrolls report for September — and investors can gauge how that fits into the next chapter for interest rates.

The stronger-than-expected JOLTS data Tuesday could be a “harbinger” of a stronger-than-expected jobs report. That’s the key data release this week. The market is keenly focused on the broader labor landscape.

West Texas Intermediate crude recovered from an early drop to head back toward $90 a barrel while the dollar index reached a 10-month high. The rally in the greenback drove the yen to its weakest level in a year as the Japanese currency touched 150 per dollar before reversing.

European stock markets closed lower Tuesday as investors digested gloomy economic data from the region.

European utilities were 2.5% lower in early afternoon trade, with the prospect for higher for longer interest rates weighing on the debt-heavy sector.

Drugmaker AstraZeneca will pay $425 million to settle U.S. lawsuits which alleged its heartburn drugs Nexium and Prilosec caused kidney disease, the company said Tuesday.

In Asia-Pacific markets overnight, Hong Kong stocks fell about 3%, leading wider losses in the region. Hong Kong’s Hang Seng index traded 3.12% lower after coming back from a National Day holiday on Monday.

Companies in focus

•Cormick & Co. Inc.’s shares fell 8.5% after its third-quarter earnings. While profits met expectations, the spice and flavor market came up short in sales.

•Shares of electric-vehicle startup VinFast Auto Ltd. fell 4.8% to $9.33 Tuesday, taking the stock well below the $22 listing price when the company made its Nasdaq debut just seven weeks ago.

•Krispy Kreme Inc.’s stock ended up 0.6% to $12.51 on Tuesday after the company said it’s exploring its strategic options for Insomnia Cookies, including a potential all-cash sale.

Another crushing selloff in U.S. Treasuries, one of the biggest falls in world stocks this year, suspected currency market intervention from Japan and political turmoil in Washington as House of Representatives speaker Kevin McCarthy was booted from his job.

It’s safe to say Tuesday was a volatile day across world markets. It’s probably also safe to say Asian markets will open on the defensive and investors will be running for cover on Wednesday.

The trouble is, with the apparently safest asset on the planet at the epicenter of the storm, there doesn’t appear to be anywhere obvious to take shelter.

The heavy selling across the U.S. government bond curve accelerated on Tuesday after strong U.S. jobs data, pushing the 10-year yield up to a new 16-year high of 4.80%. It is up almost 25 basis points in barely 48 hours.

The 2s/10s yield curve inversion is now only 35 basis points, the smallest this year, and the inflation-adjusted 10-year ‘real’ yield is up at 2.45%, the highest since 2008.

‘Bond King’ Bill Gross, formerly of PIMCO fame, tweeted that a 30-year mortgage rate of 7.7% “shuts down” the U.S. housing market. Fears are growing that something somewhere in the investment universe will soon break, such is the blistering rise in bond yields.

But where can investors turn?

Gold? It fell only 0.2% on Tuesday but the fact it failed to rise at all in such a febrile ‘risk-off’ environment is telling. Gold is at a seven-month low and has fallen seven days in a row, its longest losing streak since 2018.

The Swiss franc? It weakened against the mighty dollar.

The Japanese yen? Yes, it rallied on Tuesday but only thanks to suspected intervention from Japanese authorities after briefly slipping below 150.00 per dollar.

Japanese stocks had already slumped to a four-month low before the yen’s sudden burst of strength. The Nikkei - and stocks across Asia - will likely fall further on Wednesday.

In this climate, the regional data and policy calendar is of much less significance. Purchasing managers index reports from Japan, Australia and South Korea will be released, and the Reserve Bank of New Zealand announces its latest interest rate decision on Wednesday.

Cogni (-0.68%)

Infy (-1.05%)

Wit (-0.41%)

IciciBk (-1.96%)

HdfcBk (-0.69%)

DrRdy (-0.59%)

TatSt: +0.00%

Axis: +0.64%

SBI: +0.28%

RIGD (-0.54%)

INDA (-0.59%) (IShares MSCI INDIA ETF)

INDY (-0.40%) (IShares MSCI INDIA 50 ETF)

EPI (-0.30%) (Wisdom Tree India Earning)

PIN (-0.89%) (Invesco India Etf)

Sensex: 65,512 (-316) (-0.48%)

Nifty: 19,529 (-110) (-0.56%)

BankNifty: 44,399 (-186) (-0.42%)

NiftyIT: 31,717 (-67) (-0.21%)

MIDCAP: 40,609: +72: +0.18%

Dow: 33,002 (-431) (-1.29%)

S&P: 4,229 (-59) (-1.37%)

Nas: 13,059 (-248) (-1.87%)

Brazil: 113,419 (-1,638) (-1.42%)

Ftse: 7,470 (-41) (-0.54%)

Dax: 15,085 (-162) (-1.06%)

Cac: 6,997 (-71) (-1.01%)

MOEX: 3,144: +12: +0.37%

WTI Oil: $89.23: +0.46%

Brnt: $91.12: +0.45%

Natural Gas: 2.95: +3.84%

Gold: $1842 (-6) (-0.31%)

Silver: $21.38 (-0.21%)

Copper: $362 (-2) (-0.56%)

Cotton: $87.43 (-0.36%)

Copper (LME): $8,053 (-218) (-2.63%)

Alluminum (LME): $2,321 (-26) (-1.11%)

Zinc (LME): $2,601 (-49) (-1.85%)

Tin (LME): $23,496 (-448) (-1.87%)

Eur-$: 1.0471

GBP-$: 1.2078

Jpy-$: 148.77 (-0.7%)

Re: 83.205: +0.20%

USD-RUB: 99.8551: +0.58%

US10yr: 4.80%

GIND10YR: 7.210 (-0.39%)

$ Index: 107.077: +0.16%

US Vix: 19.78: +12.32%

India Vix: 11.78: +2.88%

BalticDry: 1,737: +36: +2.12%

FIIs -2,034 (9,714-11,748)

DIIs +1,361 (9,223-7,862)

Listing of Equity Shares of Updater Services Limited (IPO)

66702688 Equity shares of Rs. 10/-….Issue Price Rs. 300/-

Listing of Equity Shares of Digikore Studios Limited (SME IPO)

6332800 Equity shares of Rs. 10/-….Issue Price Rs. 171/-…Mkt Lot : 800

Listing of Equity Shares of Mangalam Alloys Limited (SME IPO)

24685927 Equity shares of Rs. 10/-….Issue Price Rs. 80/-…Mkt Lot : 1600

Digicore: 65..IPO Px: 171..expected listng 236 (+38%)

Updater: nil..IPO Px: 300.

Mangalam Alloys: nil..IPO Px: 80

Goyal Salt: 24… IPO Px: 38

Inspire Films: 18.. IPO Px: 59

Shares of Chennai-based Updater Services will be listed today.

Bajaj Finance Limited has said that customer franchise as of September 2023 stood at 76.56 MM as compared to 62.91 MM as of 30 September 2022. In Q2 FY24, the customer franchise increased by 3.58 MM. New loans booked during Q2 FY24 grew by 26% to 8.53 MM as compared to 6.76 MM in Q2 FY23; and Assets under management (AUM) grew by 33 per cent to approximately ₹290,200 crore as of 30 September 2023 as compared to ₹ 218,366 crore as of 30 September 2022. AUM in Q2 FY24 grew by approximately ₹ 20,100 crore.

The shareholders of Muthoot Finance Limited in the Annual General Meeting have via Special Resolution increased the borrowing powers of the Board of Directors of the Company to ₹100,000 crore.

Life Insurance Corporation of India has received an order from the Income Tax Authority, demanding a penalty of Rs 84.02 crore. The Corporation has received notice for the assessment years 2012-13, 2018-19 & 2019-20.

Bajaj Allianz General Insurance Company Limited, an unlisted material subsidiary of Bajaj Finserv Ltd, has received a Show Cause Cum Demand Notice from the Directorate General of GST Intelligence, Pune Zonal Unit, under Section 73(1) of the Central Goods and Services Tax Act, 2017, alleging a tax demand of Rs. 1,010.06 crore.

The Board of Directors of Raymond Limited has approved to invest an amount up to Rs. 301 Crore in one or more tranches in Ten X Realty Limited, a step down wholly owned subsidiary of the Company. Out of the said investment, the company will invest up to Rs 125 crore in the form of Redeemable Preference Shares which would be subject to such terms as may be finally decided and agreed. Balance amount of Rs. 176 Crore will be invested by providing Inter Corporate Deposit (ICD) to TXRL.

Indiabulls Housing Finance

RPM International Inc. (Pre market) (Sector-Chemicals)

Acuity Brands, Inc. (Pre market) (Sector- Electrical Equipments)

ACCEDERE

General

ACEMEN

Quarterly Results;General

CRESSAN

Preferential Issue of shares;General

GVFILM

General

KARMAENG

General

MFSINTRCRP

Quarterly Results;General

SAYAJIHOTL

Dividend on Preference Shares;A.G.M

Buzzing stocks: Maruti Suzuki, LIC, Lemon Tree, Senco gold, Adani Enterprises, Bajaj Finance, Bajaj Finserv, Muthoot Finance, Shri Dinesh Mills, Archean Chemicals, Thomas Cook, Varroc Engineering, Pidilite, D-Mart, ICICI Bank, Raymond, Sasken Tech

Chicago soybean futures rose on Wednesday as the U.S. dollar eased from 11-month highs, but prices remained near their lowest since 2021 amid signs of a better-than-expected U.S. harvest and rapid planting of crops in Brazil.

Corn prices also gained but wheat fell.

FUNDAMENTALS

* Most-active Chicago Board of Trade (CBOT) soybean futures were up 0.5% at $12.79 a bushel by 0054 GMT. CBOT corn rose 0.3% to $4.88-3/4 a bushel and wheat was down 0.2% at $5.67-1/2 a bushel.

* Soybeans have fallen around 9% in the last five weeks and slipped to $12.57 on Tuesday, equalling the 18-month low seen in June.

* Helping push soybeans lower has been a stronger U.S. dollar, which makes dollar-priced beans more expensive for buyers with other currencies and can reduce demand.

* The U.S. harvest is well underway, adding supply to the market, and government data this week showed a slight improvement in bean condition ratings.

* Commodity broker StoneX raised its forecast for the average U.S. soybean yield to 50.4 bushels an acre from 50.1 an acre, estimating U.S. production at 4.175 billion bushels.

* While private sales of 265,000 metric tons of U.S. soybeans to China suggested there are buyers in the market, basis values for soybeans shipped by barge to the U.S. Gulf Coast and loaded for export were steady to lower on Tuesday.

* Meanwhile, a report on Monday showed farmers in Brazil, the world’s biggest soybean producer, were planting new crops at the fastest pace on record.

* Brazil is forecast to produce a record soybean crop this year.

* European Union soybean imports so far in the 2023/24 season that started in July were 2.85 million metric tons by Oct. 1, down 2% from a year earlier, data showed.

* Commodity funds were net sellers of Chicago soybeans, soymeal, corn, and soyoil futures and net buyers of wheat on Tuesday, traders said.

* Moving to wheat, the U.S. Department of Agriculture reported a Chinese purchase of 220,000 metric tons of U.S. soft red winter wheat -- the first by China of that class of wheat from the U.S. since July 2021.

* However, wheat prices fell to a three-year low of $5.40 a bushel on Friday with the market flush with cheap exports from Russia.

* Ukraine on Tuesday said it hopes to speed up exports of grain and other farm products under a wartime deal that will shift some border checks from its busy frontier with Poland to the Lithuanian port of Klaipeda.

* Two more vessels are heading towards the Ukrainian Black Sea port of Odesa, a Ukrainian lawmaker said.

* The EU’s soft wheat exports since the start of the 2023/24 season in July reached 7.39 million metric tons by Oct. 1, down 24% from a year earlier, data showed.

* Morocco is expected to buy 2.5 million tonnes, or half of its soft wheat needs, from France this season ending June 2024, the Maghreb region head at French wheat professionals group Intercereales said. - Reuters

Gold prices were flat on Wednesday near seven-month lows hit in the previous session, as a surge in U.S. dollar and bond yields buoyed by strong jobs data meant that there was room for a further monetary policy tightening.

FUNDAMENTALS

* Spot gold was flat at $1,823.59 per ounce by 0117 GMT, while U.S. gold futures eased 0.1% to $1,839.20 per ounce.

* Prices fell for a seventh consecutive session on Tuesday to touch their lowest levels since March, as the U.S. dollar strengthened on data showing U.S. job openings unexpectedly increased in August.

* Spot silver was down 0.1% to $21.14 per ounce, having slipped to its lowest since mid-March in the last session.

* Platinum slid 0.8% to $864.93 to touch its lowest in a year. Palladium dropped 1.2% to $1,174.70 and hovered near 5-year lows hit on Tuesday. - Reuters

Oil rose in early Asian trade on Wednesday, supported by tightening global crude supply ahead of a panel meeting of OPEC+ ministers.

Brent crude oil futures rose 6 cents to $90.98 a barrel by 0004 GMT, while U.S. West Texas Intermediate crude (WTI), rose 11 cents to $89.34 per barrel.

The Organization of the Petroleum Exporting Countries and allies, or OPEC+, is expected to keep output policy unchanged when it meets on Wednesday, after members Saudi Arabia and Russia extended output cuts to the end of the year. - Reuters

JSW Infrastructure debuted on the bourses on October 3, and gave a decent listing gain of 32 per cent at ₹157.3 against the IPO price of ₹119. There seems to have been some selling pressure initially, but later buyers rushed in to pick up the stock, which hit upper circuit at ₹157.3.

Our positive stance on Emami is by virtue of Management actions being undertaken for boosting its business prospects. With induction of professionals in the management, Emami has created a good bandwidth for strengthening its core and launching new initiatives. It has been building its portfolio of small D2C and regional brands, wherein it gets the ball rolling with a financial investment, albeit with strategic focus.

We recently interacted with FSN E-commerce Ventures (team Nykaa). Key takeaways from the interaction: Nykaa’s run rate of 4-5 million customer additions annually in BPC (on a cumulative base of 18 million) remains on track; ad income dip (as percentage of revenue) is attributed to teething issues with the new ad tech stack; recovery could be a quarter away; Fashion’s soft Q1 performance (12 per cent YoY) was an aberration and growth has been trending upwards; and fashion business is over its peak investment phase.

Motilal Oswal Asset Management Company believes that investors should consider exposure to Nifty 500 index as it covers 90 per cent of market capitalisation against the most popular Nifty index which covers 51 per cent of the market-cap.

The rupee (INR) lost 0.2 per cent on Tuesday to end at 83.20 versus the dollar (USD). But over the past week, the exchange rate of USD-INR has largely remained stable, despite the greenback strengthening further and foreign fund outflows... Read more

Anil Agarwal-led Vedanta Ltd’s (VEDL’s) decision to demerge businesses into six different entities will add value to investors only if the group finds strategic investors for reducing debt by selling assets partially or fully.

Axis Bank, one of the largest private sector lenders, may tap the market to raise funds through a qualified institutional placement (QIP) in the coming weeks, said two people familiar with the matter.

Abu Dhabi-based International Holding Company’s stake in Adani Enterprises has crossed 5 per cent, exchange filing data showed.

Through its arm Green Viality RSC Ltd, IHC acquired 6.4 lakh shares in the open market today taking its stake in the Adani Group flagship to 5.04 per cent from 4.98 per cent before.

Amid the rise in adoption of ultra high-speed services in the country, as many as 31 million additional users in India are expected to upgrade to 5G phones in 2023, said a report on Tuesday. The current base of 5G handset users in India is expected to be around 100 million driven by two players — Bharti Airtel and Reliance Jio — that launched 5G services in October last year.

The total sales of CNG (compressed natural gas)-powered cars in the country are expected to surpass half a million in FY24 given the current strong sales momentum.

Over the past several months, CNG-powered cars have been witnessing a strong demand as an increasing number of car buyers are now choosing vehicles powered by alternative fuels. Now, CNG as a fuel with its wide availability and accessibility has gained a lot of acceptance.

The year 2023 has seen a sharp increase in sell-downs by promoters (majority shareholders) compared to the previous years. The selling by promoters largely reflects strategic compulsions. Domestic investors have absorbed the bulk of the sell-downs. Here are the 4 charts that give you more insights.

The agrochemical industry faced a double whammy this kharif season. Due to the delayed and erratic spread of monsoon, the demand was impacted in crops such as cotton, soyabean as farmers chose to apply less inputs on weather uncertainty during the cropping season.

Credit quality of Indian companies continued to strengthen in the first half of the current financial year as they maintained the strong performance of FY22 and FY23, according to rating agencies.

Maruti Suzuki to file objections before the Dispute Resolution Panel; no impact on financials due to this draft order, says Maruti

Tata Technologies, a subsidiary of Tata Motors (TML), has reserved a portion of its initial public offering for its employees and TML shareholders, following a board resolution to this effect on September 6.

The portion reserved for employees will constitute up to 0.5 per cent of the post-offer paid-up equity share capital, while that reserved for TML shareholders will constitute up to 10 per cent of the offer, the company said in an addendum filed with the market regulator on Tuesday. These shares will be available for allocation on a proportionate basis.

Here are the intraday supports and resistances for widely traded stocks such as Reliance Industries, ITC, ONGC, Infosys, HDFC Bank, TCS and SBI

The near-term outlook is bullish for KPR Mill. The stock price has been moving up gradually over the last week. On Tuesday, the stock had risen over 3 per cent. The 21-day moving average (MA) at around ₹750 has been giving good support over the last few days. It is likely to limit the downside in the coming days as well.

On Wednesday, Asian stocks experienced significant declines in response to yet another display of robust U.S. economic data, which pushed Treasury yields to new highs. Concurrently, a sharp increase in the yen led traders to speculate that Japanese authorities had intervened in the market.

Japanese equities initiated the day on a lower note, extending the previous day’s losses observed on Wall Street. During this period, the dollar briefly surged above 150 yen, reflecting the rapid ascent of U.S. Treasury yields.

In the early trading hours, the benchmark Nikkei 225 index registered a 1.61% decline, equivalent to a drop of 504.23 points, trading at 30,733.71. Simultaneously, the broader Topix index slipped by 1.61%, or 26.62 points, reaching 2,238.85.

Meanwhile, South Korea’s Kospi index experienced a sharp decline of 2.09%, currently trading at 2,413.99. The Hang Seng Index in Hong Kong displayed a 0.37% weaker performance at 17,266, and Australia’s S&P/ASX 100 dropped by 0.71% to trade at 5,798.90.

The S&P 500 index concluded Tuesday at its lowest level since June 1, driven by economic data reinforcing concerns that the Federal Reserve may need to maintain higher interest rates.

In a parallel development, the Dow turned negative for the year, marking its first dip since June and closing at its lowest point since May 31. Likewise, the Nasdaq also recorded its lowest closing value since May 31.

Recent data revealed an unexpected increase in U.S. job openings for August, intensifying concerns regarding a tightening labour market just ahead of the critical U.S. monthly jobs report scheduled for Friday.

Investor attention remains fixed on benchmark Treasury yields, which reached their highest levels in 16 years on Tuesday.

Specifically, the Dow Jones Industrial Average experienced a decline of 430.97 points, equaling a 1.29% drop to reach 33,002.38, while the S&P 500 saw a loss of 58.94 points, corresponding to a 1.37% decline, ending the day at 4,229.45. The Nasdaq Composite faced a drop of 248.31 points, resulting in a 1.87% decrease, settling at 13,059.47.

Furthermore, Wall Street’s “fear gauge,” the CBOE volatility index, reached its highest closing level since May 24.