Share Market Highlights 29 Sep 2023: Sensex gains 320 pts; Nifty ends above 19,600; Hindalco climbs 5%, IT stocks drag

Benchmark Sensex rose by 320 points while Nifty closed above the 19,600 mark on Friday after value-buying in metal, financial and energy stocks aided by positive trends in the US and European markets.

The 30-share BSE Sensex climbed 320.09 points or 0.49 per cent to settle at 65,828.41. During the day, it jumped 643.33 points or 0.98 per cent to 66,151.65.

The Nifty advanced 114.75 points or 0.59 per cent to end at 19,638.30. Read more.

The rupee appreciated 14 paise to settle at 83.05 (provisional) against the US dollar on Friday, boosted by a firm trend in equity markets and a sharp correction in the greenback against major rivals overseas.

However, selling pressure from foreign equity investors and rising crude oil prices in international markets weighed on the domestic unit, forex traders said.

The rupee opened strong at 83.13 against the US dollar and moved in the range of 83.03 to 83.13. It finally settled at 83.05 (provisional), registering a gain of 14 paise from its previous close. Read more.

Granules India has allotted 3,25,960 equity shares in consequent to exercise of stock options under ESOS 2009. The stock is up by 3.86% on the NSE, at ₹355.05.

Plaza Wires IPO has been subscribed 3.59 times as of 3:30 pm on the opening day, September 29, 2023. The NII portion has been subscribed 3.03 times, and retail 21.26 times. The issue closes on October 5.

Valiant Laboratories IPO has been subscribed 1.57 times as of 3:30 pm on September 29, 2023. The QIB portion has been subscribed 0.05 times, NII portion 0.98 times and retail 2.69 times. The issue closes on October 3.

NIBE ltd informed the exchange that its subsidiary, Nibe Defence and Aerospace Ltd. raised an amount of ₹24.74 crore by issuing 8,99,550 equity shares by way of preferential issue on private placement basis.

Ajmera Realty & Infra India Ltd (ARIIL) has secured two residential projects, one each in Mumbai and Bengaluru, estimated to be ₹470 crore.

The stock surges by 6.48% on the NSE, trading at ₹382.

The board of Khadim India has approved scheme of arrangement between the company and KSR Footwear Limited. Khadim stock rises by 3.76% on the NSE, trading at ₹319.10.

Prabhudas Lilladher has today initiated coverage on Hindustan Aeronautics with a ‘BUY’ rating and a target price set at INR 2,266, derived from a weighted average of prices using the Discounted Cash Flow (DCF) and Price-to-Earnings (PE) multiple methods. With an impressive order book of INR 818 billion and a five-year pipeline of approximately INR 2 trillion, HAL is well-positioned for future growth. HAL’s scale and operating leverage will lead to improved profitability.

Major gainers: Hindalco (5.49%); NTPC (3.40%); Dr Reddy (2.98%); Divi’s Lab (2.81%); Tata Motors (2.77%)

Major losers: Adani Enterprises (-2.45%); LTI Mindtree (-0.87%); Tech Mahindra (-0.50%); HCL Tech (-0.43%); Power Grid (-0.42%)

Transworld Holdings, the promoter of Shreyas Shipping has made a counter-offer at ₹400 a share as part of the delisting process.

As per SEBI Delisting Regulations, the counter-offer price provided by THL is above the book value at ₹373.48 the company as on June-end.

Read more.

Stocks advanced on BSE at 3 pm on September 29 were 2,340 against 1,245 stocks that declined; 160 stocks remain unchanged. Total stocks traded were 3,745. The number of stocks that recorded a 52-week high was 181, and those that hit a 52-week low was 34.

Orient Cement Ltd has commissioned 1st phase of Waste Heat Recovery System (WHRS) at its Chittapur Integrated Cement Plant to utilise the waste heat available from the pyroprocessing system.

The stock rises by 1.70% on the NSE, trading at ₹179.10.

“India’s inclusion in the JP Morgan Government Bond Index-Emerging Markets (GBI-EM) sets stage for higher foreign flows into Indian bonds across sovereign and sub-sovereign issuances as well as good quality private corporate paper. The shadow following of the JP Morgan EM Bond Index would mean much higher demand for India’s debt paper beyond the obvious gains of USD 23 billion through index inclusion. We see this move as a big positive as it may allow diversification of the source of funding and add more GSEC buyers, thereby improving the supply-demand dynamics and indirectly lower the cost of capital in the medium term. The lower cost of capital will support businesses in their growth and also improve valuations over time. We remain constructive on equity markets and suggest adding to equity exposure on any significant correction.”

“The upcoming RBI October Monetary Policy review is coming at the backdrop of inflationary concerns across the globe that might force central banks to maintain disinflationary stances well into 2024. Further inflation adjusted real yields that have risen to their highest level since 2009 is providing headwinds across the globe thereby increasing cost of borrowings.

RBI is expected to maintain pause in October policy. Overnight rates are ruling about an average of 15bp above Repo rate for a reasonable time owing to tight liquidity conditions. This can be construed as having a similar impact to a 25bp hike in REPO rate. Further, RBI will retain the stance of withdrawal of accommodation as CPI is unlikely to come below 5% during the rest of FY24”.

Jet Airways (India) stock surges by 4.99% on the NSE, trading at ₹55.80. This follows Jalan Kalrock Consortium completes capital infusion to revive the company.

Lupin Ltd has received EIR report from USFDA for its Nagpur Unit-1 manufacturing facility that manufactures oral solid dosage forms.

The stock rises by 4.30% on the NSE, trading at ₹1,181.80.

Gradiente Infotainment Limited has secured a geographic information system (GIS) project from VUV International Limited. The execution of this project is currently underway at Gradiente’s Chennai Facility, which accommodates over 80 seats per shift and engages over 150 outsourced employees. This is integral to Gradiente’s expansion and diversification plan within the IT Division, with a projected investment of ₹10 crore in the IT & ITES business.

However, shares were down by 4.87 per cent to ₹4.88 at 2 pm on the BSE

Eimco Elecon (India) has received work order from Inderdeep Constuction Company worth ₹60.87 crore. The stock surges by 4.39% on the BSE, trading at ₹920.

The Federal Bank has received an intimation from RBI that it has accorded its approval to International Finance Corporation (IFC) for acquiring aggregate holding of up to 9.70% of the paid-up share capital or voting rights of the Bank.

The stock rises by 1.16% on the NSE, trading at ₹147.70.

Zydus Lifesciences has received permission from CDSCO, India, to initiate the Phase I clinical study of its PCSK9 inhibitor. The stock gains by 2.90% on the NSE, trading at ₹620.20.

The Advertising Standards Council of India (ASCI) has announced the appointment of Saugata Gupta, the Managing Director and Chief Executive Officer of Marico Limited, as the new Chairman of the ASCI Board of Governors.

MIC Electronics is in receipt of order worth over ₹1 crore from Vijayawada Division of South - Central Railway Zone for Replacement of IP Based Integrated Passenger Information System at Tenali Station (TEL).

MIC Electronics stock rises by 2.75% on the BSE, trading at ₹25.39.

Newgen Software Technologies Ltd has executed an agreement for the development, implementation, management and maintenance of end‐to‐end digital lending solution, worth over ₹29 crore.

The stock is up by 2.69% on the NSE, trading at ₹908.20.

The board of Indian Oil Corporation has approved formation of joint venture companies for setting up Compressed Biogas (CBG) projects. IOC stock rises by 1.08% on the NSE, trading at ₹90.95.

Mangal Credit and Fincorp informed the exchange about the opening of new brand in lending segment near Rupali Cinema, Panvel, Maharashtra. The stock rises by 3.04% on the BSE, trading at ₹95.

The board of Hindustan Zinc have decided that considering the scale, nature, and potential opportunities for various business verticals, the Company should undertake a comprehensive review of its corporate structure for unlocking potential value.

The stock surges by 4.75% on the NSE, trading at ₹312.10.

As per SEBI Delisting Regulations, the counter-offer price provided by THL is above the book value at Rs 373.48 of the company as on June 30.

In accordance with the revised SEBI norms, promoters or acquirers have the option to reject the discovered price or present a counter offer.

NovaaOne Capital, a SEBI-registered Merchant Banker, is acting as the Manager to the Offer to Transworld Holdings on the delisting process. JSA Advocates & Solicitors are acting as legal advisors in connection with the Offer.

Plaza Wires IPO has been subscribed 2.10 times as of 1:03 pm on the opening day, September 29, 2023. The NII portion has been subscribed 1.65 times, and retail 12.66 times. The issue closes on October 5.

Valiant Laboratories IPO has been subscribed 1.18 times as of 1 PM on September 29, 2023. The QIB portion has been subscribed 0.05 times, NII portion 0.57 times and retail 2.09 times. The issue closes on October 3.

Sobha (5.99%)

Mahindra Lifespace Developers (4.02%)

Oberoi Realty (2.29%)

Godrej Properties (1.65%)

DLF (1.64%)

DroneAcharya Aerial Innovations Limited, India’s first Listed Drone Company, is pleased to announce its latest milestone in the ever-evolving world of unmanned aerial systems. The company has been awarded a lucrative US$1.26 million (INR 10.5 Crore) contract to provide comprehensive drone sales, service, and software development solutions to Qatar’s thriving Oil and Gas sector. The order has been placed by Triconix Industrial Solutions QFZ LLC, a certified IMS (Integrated Management System) company, based in Qatar, for an end user in the Oil and Gas sector.

With this strategic collaboration, DroneAcharya is set to revolutionize how the Oil and Gas industry operates in the region by harnessing the power of cutting-edge drone technology.

Zodiac Clothing Company (19.44%)

Puravankara (11.41%)

Antony Waste Handling Cell (8.88%)

Aurobindo Pharma (6.13%)

Sobha (5.72%)

The stock has witnessed a decent rally with a strong uptrend maintained and recently after peaking out near 280 zone has slightly slipped with profit booking and has taken support near the significant 50EMA level with 254 forming a good base where it has consolidated quite well and is well poised for further rise with signs of positive bias witnessed. The RSI is well placed currently cooling off from near the overbought zone and has indicated a trend reversal to signal a buy. We suggest to buy and accumulate the stock for an upside target of 295 keeping the stop loss of 248.

Index Inclusion would completely change in the demand supply dynamics in the Indian bond market. Although ETF and Index related inflows will start from June 2024, active investors will likely front run the passive flows. FPI’s own less than 2% of total outstanding Indian bonds. This exposure could move higher to 3.5%-4% by the end of FY25.

The central government has front loaded the supply of G-sec in the first half of the year and the gross and net borrowing in the H2 FY24 will be Rs. 6.6 trillion and Rs. 3.8 trillion respectively in the H2 FY24. To recall, the net Gsec supply was Rs. 5.5 trillion in the H2FY23. The combined demand of Banks, insurance, pensions, provident funds and FPIs to be higher than total supply in the next six months. FPI demand will also be favorable for the bond demand supply balance in FY25.

Despite the expected positive impact of the index inclusion, Indian bond yields have moved higher after the actual announcement. The negative impact was mainly coming from the elevated crude oil prices and rising US treasury yields. At the time of writing this report, the 10 year US treasury yield is holding around 4.5%.

Indian bonds will continue to take cues from US treasury yields. However, we expect the correlation between the two to remain low. In the current month, the 10 year UST has moved up almost 40 basis points, while the Indian 10 year bond yield has moved up only 3 basis points. Similarly over the last three months, the 10 year UST has risen by 68 basis points, while the 10 year Indian bond has moved up by only 9 basis points.

CJ Darcl Logistics Limited, a diversified logistics company, has filed its Draft Red Herring Prospectus with market regulator Securities and Exchange Board of India (“SEBI”).

The offer comprises of fresh issue of Equity Shares aggregating up to ₹ 340 crore and offer for sale up to 5,431,071 equity share by Selling Shareholders.

The company proposes to utilise net proceeds from fresh issue towards –Repayment/ prepayment, in full or in part, of certain outstanding borrowings availed by Company; Funding capital expenditure requirements of Company towards purchase of EVs; and General corporate purposes.

CJ Darcl Logistics Limited has over 36 years of operational experience since inception and provide differentiated logistics solution with its pan-India presence, integrated service offerings, market intelligence and know-how, focuses on improving service through technology, and large network of business partners.

In 2017 CJ Logistics, a diversified logistics company, headquartered in South Korea, acquired 50% stake in Darcl Logistics Limited.

In September 2017, the company was rechristened CJ Darcl Logistics Ltd. It has an owned fleet of 990 vehicles as of March 31, 2023

The Offer for Sale comprises of – up to 369,000 Equity Shares by Krishan Kumar Agarwal, up to 203,502 Equity Shares by Roshan Lal Agarwal, up to 230,897 Equity Shares by Narender Kumar Agarwal (promoters); up to 5,78,000 Equity Shares by Vineet Agarwal, up to 529,279 Equity Shares by Sushma Agarwal, Up to 447,489 Equity Shares by Puneet Agarwal, Up to 446,285 Equity Shares by Samiha Agarwal, up to 425,129 Equity Shares by Nitesh Agarwal, Up to 336,535 Equity Shares by Darshan Kumar & Sons (HUF) and up to 289,574 Equity Shares by Tek Chand Agarwal (HUF) (Other Selling Shareholders ).

The Equity Shares that will be offered through the Red Herring Prospectus are proposed to be listed on the BSE and National Stock Exchange of India.

ICICI Securities Limited, Axis Capital Limited & Mirae Asset Capital Markets (India) Private Limited are the Book Running Lead Managers to the issue.

Bank of India (BOI) has joined hands with the Warehousing Development and Regulatory Authority (WDRA) to promote e-NWR (electronic Negotiable Warehouse Receipts) financing. The MoU was signed by T K Manoj Kumar, Chairman of WDRA and Rajneesh Karnatak, MD & CEO, Bank of India, in the presence of senior executives of WDRA and Bank of India.

The MoU is aimed at promoting awareness about the benefits of e-NWR financing and sensitizing farmers on how to avoid distress sales. By embracing e-NWR, farmers can be empowered to create a more sustainable and prosperous agricultural economy. This will prevent the sale of produce at throwaway prices since the farmers could wait for the right time to sell their produce at good prices, besides receiving financial assistance from BOI through e-NWR.

Bajaj Allianz Life Insurance, one of India’s leading private life insurers, and South Indian Bank, a leading Indian private sector bank, announced their strategic partnership, today. The two signed a corporate agency arrangement in Kochi. Through this strategic partnership South Indian Bank’s customers can now fulfill their long-term life goals by investing in Bajaj Allianz Life Insurance’s value-packed products across the bank’s 942 branches in the country.

MBL has done better than peers post covid, being a pure footwear retailer specializing in mid to premium segment. Profit to bounce back post FY24 - MBL reported 18.6% growth in PBT from operations during FY19-23. We estimate 4.7% growth in FY24, but 17% CAGR in subsequent years.

Prabhudas Lilladher has initiated coverage on Metro Brands (METROBRA IN) with ‘Accumulate’ rating and DCF based TP of Rs1231 (48.7x FY26E). MBL has created a pure retailing model in footwear with 766 stores across segments, price points and geographies with brands like Metro, Mochi, Walkaway, Crocs and Fitflop.

Ganesha Ecosphere has signed a binding term sheet with Manjushree Technopack Ltd assenting aggregate investment of ₹15 Crore by MTL in Ganesha Ecopet Private Limited & Ganesha Ecotech Private Limited, for 1% stake in each of the wholly owned subsidiaries of the Company, at consolidate valuation of ₹1500 Crore.

Sterling and Wilson Renewable Energy Limited’s shares were up by 3.73 per cent after the company announced winning a contract worth ₹1,535 crore for the engineering, procurement, and construction (EPC) project of 300 MWac by NTPC Renewable Energy Limited (NTPC REL) at Khavda RE Power Park in the Rann of Kutch, Gujarat.

This marks SWRE’s third order from NTPC REL, bringing their total orders from the client to approximately ₹5,850 crore, inclusive of Operation and Maintenance (O&M) and taxes.

Navin Fluorine International stock tumbles down by 13.10% on the NSE, trading at ₹3,786.85 after the company’s MD Radhesh R. Welling resigned from the position.

The wholly-owned subsidiary of Ganesha Ecosphere Ltd has entered into a collaboration agreement with Manjushree Technopack Ltd to co-develop, co-market and supply of integrated end-to-end recycled plastic packaging solutions.

The stock rises by 2.68% on the NSE, trading at ₹973.75.

TVS Motor Company has announced the third edition of TVS MotoSoul, its flagship motorcycling festival, set to take place between December 8 and 9, 2023, in Goa.

The stock inches up by 0.40% on the NSE, trading at ₹1,529.95.

Major gainers: NTPC (3.88%); Hindalco (3.57%); Dr Reddy (3.27%); Sun Pharma (2.78%); Tata Motors (2.64%)

Major losers: Adani Enterprises (-1.63%); LTI Mindtree (-1.37%); Infosys (-0.55%); Power Grid (-0.30%); Tech Mahindra (-0.25%)

Stocks advanced on BSE at 12 noon on September 29 were 2,227 against 1,194 stocks that declined; 170 stocks remain unchanged. Total stocks traded were 3,591. The number of stocks that recorded a 52-week high was 154, and those that hit a 52-week low was 27.

Capital Small Finance Bank has filed its Draft Red Herring Prospectus (“DRHP”) for IPO with Securities and Exchange Board of India.

The Bank plans to raise funds via Initial Public Offering through issue of equity share of face value ₹ 10 each comprising of fresh issue of equity shares aggregating up to Rs. 450 crores (“The Fresh Issue”) and an offer for sale of up to 2,412,685 equity shares..

The Offer for Sale up to 2,412,685 equity shares comprises of up to 836,728 equity shares by Oman India Joint Investment Fund II; up to 337,396 equity shares by PI Ventures LLP; up to 604,614 equity shares by Amicus Capital Private Equity I LLP; up to 70,178 equity shares by Amicus Capital Partners India Fund I and up to 563,769 equity shares by certain Other Selling Shareholders.

Bank proposes to utilize the Net Proceeds from the Fresh Issue towards augmenting Bank’s Tier – I capital base to meet Bank’s future capital requirements. Further, the proceeds from the Fresh Issue will also be used towards meeting the expenses in relation to the Offer.

Nuvama Wealth Management Limited (Formerly known as Edelweiss Securities Limited), DAM Capital Advisors Limited and Equirus Capital Private Limited are the Book Running Lead Managers of the issue.

The Equity Shares that will be offered through the Red Herring Prospectus are proposed to be listed on the Stock Exchanges being BSE Limited and National Stock Exchange of India Limited.

Tamilnad Mercantile Bank Limited informed the exchange about the opening of new branch at Viralimalai, Pudukottai District. The stock inches up by 0.65% on the NSE, trading at ₹544.

NLC India Limited’s shares were up by 3.54 per cent as the company formalised a power purchase agreement (PPA) with Grid Corporation of Odisha Ltd (Gridco) for the supply of 800 MW from its proposed Neyveli Talabira Super Critical Thermal Power Station (NTTPP) in Odisha. This agreement encompasses 400MW for stage-1 and 400 MW for stage-2.

Read more.

Rating: Unrated | TP: NA

AGM Highlights

• Strong focus on TCAS and TMS; high-growth electronics segment.
• The company continues to have a debt-equity ratio of <0.1x.
• Only Indian company in the market to have high powered Pure Lead Thin Plate (PLT) battery.

Key Takeaways

HBL Power continues to focus on indigenous development of its products, with no foreign collaboration.

The company aims to improve its technology and some of the R&D work in progress is expected to show the benefits from FY27F.

HBL Power continues to have a healthy working capital and debt-equity ratio of <0.1x.

In the industry batteries segment, demand for Ni-Cd batteries remains strong.

The company will focus on improving productivity and reducing costs as Ni-Cd batteries will co-exist with Pb (lead) batteries.

4G-5G towers still use lead-acid batteries.

Prices of Ni-Cd batteries have fallen over the past few months, and their sales are expected to rise in volume terms.

HBL Power also manufactures lithium-ion batteries on a small scale and so far, the company has incurred a capex of Rs700m while it is looking to incur another Rs700m in the next two years.

The company has supplied to the defence sector for meeting the needs of its naval and underwater bases.

HBL Power has been awarded a contract by NSTL/ DRDO to develop prototype modules for lithium-ion batteries for submarine application.

However, there is demand emerging from Indian Air Force.

The demand from them will be met in the next few years.

HBL Power prefers to stay away from capital-intensive products like electric vehicles or EVs due to intense competition.

The company also makes PLT batteries, which are likely to be exported for meeting the needs of Russian helicopters.

Indian Railways’ track length is expected to increase by 30,000km over the next few years, which will provide a good opportunity for the TCAS (Kavach) system to be implemented.

Management said the implementation of Train Management System (TMS) is in progress in the Sealdah division of Eastern Railways.

Also, type testing and field trial of the Electronic Interlocking System is also likely.

The company makes in-house advanced software but does not sell them.

The advanced software system is being utilized in TMS currently.

Demand for TMS master control system is expected to increase from FY24F.

However, the business will garner a low revenue of ~Rs2bn.

The company aims to supply and install Kavach system in 23 Vande Bharat trains.

So far, 20 Kavach systems have been delivered, and eight have been installed in four Vande Bharat trains.

HBL Power expects strong demand for its electronic fuses by FY24F, with 100% in-house technology, for use in grenades and other ammunition and artillery.

Grenades made by HBL Power have been approved by the Ministry of Home Affairs.

HBL Power is the only Indian supplier of electronic fuses, and it can also supply to companies making the rest of the grenade.

The approval of the Indian Army to use the company’s products in its grenades is awaited in FY24F.

The company is making efforts to ramp up capacity and increase sales by FY25F.

Torpedo batteries by HBL Power are the only ones which are approved for use in Varunastra.

Management said the cost of these batteries is ~Rs30mn.

The battery, motor and homing head unit constitutes ~60-65% of the cost of a torpedo.

The company has made a bid for Tonbo Imaging and the technical evaluation is going on currently.

The Jalan Kalrock Consortium (JKC), the prospective new owners of Jet Airways, has injected an additional Rs 100 crore in the airline, reinforcing their commitment to its revival. This brings JKC’s total equity investment to the court-approved Rs 350 crore, solidifying their takeover of the iconic airline.

Accenture reported c/c revenue growth of 4% in 4QFY23, at the mid-point of 2-6% revenue growth rate. The growth was entirely driven by managed services. FY2024E revenue growth guidance of 2-5% is the second lowest among the beginning of year guidance in the past 16 years. Bookings declined due to pressure in small deals and lower large deals. The read-through for Indian IT is negative where discretionary spending remains weak. Cost take-outs are the dominant source of demand. Infosys, TCS, HCLT and LTIM are better positioned to address demand among Tier-1. Infosys is attractive followed by HCLT.

Dhaniya (coriander) November contracts increased by ₹22 to ₹7,024 a quintal. Jeera (coriander) futures November futures surged by ₹680 to ₹61,000 a quintal. Turmeric December futures gained ₹292 at ₹14,220.

Ashok Leyland has bagged an order for 1,282 fully built buses from Gujarat State Road Transport Corporation (GSRTC). The stock rises by 1.55% on the NSE, trading at ₹176.80.

Sterling and Wilson Renewable Energy Ltd bagged order for the EPC project of 300 MWac of NTPC Renewable Energy Limited (NTPC REL) at Khavda RE Power Park, Rann of Kutch, Gujarat. The total Contract Price, including O&M for 3 years, would be ₹1,535 crore.

The stock rises by 1.92% on the NSE, trading at ₹355.

Gold ruled at six-month lows below $1,865 an ounce on Friday in Asia. The yellow metal is set to decline for the second straight month on a strong dollar and surging Treasury yields. The trade expects the US Fed Reserve to extend its restrictive monetary policy. The US economy has maintained a fair pace of growth in the second quarter and the US labour market too mirrored the trend. At 11 a.m. IST, gold was quoted at $1,865.20 an ounce. Silver ruled at $22.95 an ounce.

Major gainers: AIIL (19.99%); Fairchem (7.53%); Electrosteel Castings (7.44%); Emami (6.59%); Eris (6.52%)

Major losers: Navin Flourine (-13.89%); MCX (-7.74%); KIOCL (-4.50%); Tata Investment (-4.13%); Finolex Cables (-3.76%)

Larsen and Toubro Ltd.’s shares were up by 0.19 per cent after the company’s division, L&T Construction, secured a contract from the Mumbai Metropolitan Region Development Authority (MMRDA) for the construction of an Underground Road tunnel project in Mumbai.

Read more.

Bank Nifty opened today’s session with a gap-up at 44,445 versus Thursday’s close of 44,301. The index moved up further post-open and is now at 44,580, up 0.6 per cent.

Substantiating the bullish bias, the advances/ declines ratio stands at 11/1. Bandhan Bank and Bank of Baroda are the top gainers, up 2.6 and 1.6 per cent, respectively. Axis Bank, down 0.2 per cent, is the top loser.

While both public and private sector banks are doing well, PSU banks seem to be performing better. Thus, Nifty PSU Bank is up 1.4 per cent, whereas Nifty Private Bank is up 0.7 per cent.

Adani Total Gas hit 52 week low today of ₹611.05. It is now trading ₹613.45, down by 1.4 per cent for the day. The stock is down a massive 85 per cent from its 52 week high of ₹4000

The New India Assurance Company had received 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 ₹2,379.13 crore. The stock slides down by 0.96% on the NSE, trading at ₹139.25.

The equity benchmark indices rebounded in early trade on Friday after a nearly 1 per cent decline on the previous day, amid positive trends in the global markets.

The 30-share BSE Sensex climbed 235.61 points to 65,743.93 in early trade. The Nifty advanced 76.7 points to 19,600.25.

Among the Sensex firms, NTPC, Tata Motors, JSW Steel, Tata Steel, State Bank of India, Larsen & Toubro, Reliance Industries Ltd, Sun Pharma, Bharti Airtel and ITC were the biggest gainers.

Infosys, Wipro, Asian Paints, HCL Technologies, Tata Consultancy Services and Axis Bank were among the laggards.

Nifty 50 and Sensex are attempting to bounce after a sharp fall on Thursday. Both the indices are up about 0.4 per cent each. Sensex is trading at 65,740, while Nifty is at 19,600.

Nifty managing to hold above 19,500 is a sign of relief. However, the index has to rise past 19,800 decisively in order to ease the downside pressure. Only in that case, the danger of any further fall will get reduced and the possibility of the Nifty rising back to 20,000 levels will come in to the picture. We will have to wait and watch the price action today.

Accenture [ACN US; Not Rated] reported 4% cc YoY growth in 4QFY23, at the mid-point of its 2-6% guidance. This was the sixth straight quarter of revenue deceleration for ACN. Its 1QFY24 guidance (-2% to +2% YoY cc revenue growth) suggests there is no imminent trend reversal either. Its full year guidance of 2-5% does imply some pick-up in the back-half of the fiscal. However, net of in-organic contribution ( 2ppt), growth would be a modest 1-3% through 2Q-4QFY24 (JMFe) in spite of a favourable comp in 2H.

Management has not built any improvement in discretionary spend through FY24. In fact, they believe concerns around macro – which has impacted shorter term discretionary spend thus far - is percolating down even to larger deals. Given ACN’s full year guidance is a first peek into potential growth trajectory for FY25, we see its underwhelming guidance as an incremental negative for the sector. We continue to believe that the unwinding of excess IT spend (Sliding back to “old normal”, 01 Aug 2023) could keep incremental revenue growth muted through FY24. If ACN’s commentary is anything to go by, FY25 growth expectations could be at risk as well.

12 Oct 2023 HCL Tech

12 Oct 2023 HDFC AMC

12 Oct 2023 Infosys

18 Oct 2023 Bajaj Auto

18 Oct 2023 LTI Mindtree

18 Oct 2023 Persistent

18 Oct 2023 Wipro

19 Oct 2023 Coforge

19 Oct 2023 Mphasis

19 Oct 2023 Nestle India

19 Oct 2023 Ultratech Cement

19 Oct 2023 UTI AMC

20 Oct 2023 JSW Steel

21 Oct 2023 ICICI Bank

25 Oct 2023 Jubilant Food

25 Oct 2023 Tech Mahindra

26 Oct 2023 Asian Paints

27 Oct 2023 Dr Reddy

30 Oct 2023 P& G Hygiene & Health

31 Oct 2023 Amara Raja

02 Nov 2023 Gujarat Gas

09 Nov 2023 ABB

09 Nov 2023 Bosch Ltd

NLC India stock rises by 3.59% on the NSE, trading at ₹132.70 after the company had entered long term PPA with GRIDCO for another 400 MW, Phase II (1 x 800 MW) Coal based Thermal Power Project which is presently under planning stage at Jharsuguda and Sambalpur Districts, Odisha.

Godrej Agrovet stock inches up by 0.55% on the NSE, trading at ₹477, after the company’s board approved grant of 2,153 Stock Options to eligible employee of the company under Godrej Agrovet Limited - Employees Stock Grant Scheme, 2018.

Rating: ACCUMULATE | CMP: Rs5,486 | TP: Rs5,418

Company to raise fund not exceeding Rs10bn, through Equity Shares and/or equity linked instruments. APR’s focus towards value added products and strong traction in domestic market and long term positive view on exports will drive strong topline and profitability in the long run. The stock is trading at PE of 35.8x/28.8x FY24/25E. We have Accumulate rating on stock with TP of Rs5,418, valuing Conductors/Cables/Speciality Oil segment at 25x/32x/12x Sep25E.

The rupee rose 9 paise to 83.10 against the US dollar in early trade on Friday amid a retreating dollar versus major rivals and positive cues from the equity markets.

Massive selling of equities by foreign investors and an upward trend in crude oil prices, however, capped the rise of the domestic currency, forex dealers said.

The Indian unit opened strong at 83.13 against the US dollar and touched the highest level of 83.09. It later traded at 83.10 against the greenback, registering a gain of 9 paise from its previous close.

On Thursday, the rupee settled 3 paise higher at 83.19.

Nifty outlook:

The green shoots of Wednesday, managed to bring about only a higher opening that attracted rejection trades on approach to our bounce back objective of 19780. The steepness of the turn lower has brought in 19420 and 19050 into the picture but with only low prospects for a collapse to 18600. Meanwhile, the bounce back in the closing minutes has kindled some revival hopes, but will pursue longs only while above 19590.

Derivative outlook:

Nifty weekly contract has highest open interest at 19700 for Calls and 19500 for Puts while monthly contracts have highest open interest at 20000 for Calls and 19500 for Puts. Highest new OI addition was seen at 19700 for Calls and 18000 for Puts in weekly and at 19700 for Calls and 19800 for Puts in monthly contracts. FIIs decreased their future index long position holdings by 51.10%, decreased future index shorts by 9.32% and decreased index options by 46.90% in Call longs, 43.31% in Call short, 55.26% in Put longs and 58.95% in Put shorts

L&T’s heavy civil infrastructure business vertical has won a mega order from Mumbai Metropolitan Region Development Authority (MMRDA), for the design and construction of an Underground Road tunnel Project between Orange gate, Eastern Free Way to Marine Drive Coastal Road at Mumbai.

The stock inches up by 0.89% on the NSE, trading at ₹3,036.90.The stock inches up by 0.89% on the NSE, trading at ₹3,036.90.

“On a monthly expiry yesterday, key benchmark indices declined sharply, with Nifty closing 1.10% lower, and Sensex down over 600 points. On the daily chart, the Nifty has formed a long bearish candle, indicating that the weak sentiment is likely to continue in the near future. For short-term traders, key support zones are 19400 and 19250, while 19600 and 19800 could be key resistance zones for the bulls. At 19250, the index has support of 100 days SMA. For Bank Nifty, 44750 would be the crucial resistance level. As long as it trades below the level, the weak sentiment is likely to continue and may slip further to 44100-43800 levels. Conversely, a new uptrend is possible only after the breakout of 44750, and it may rise to 45000-45200. The Nifty IT index collapsed to 31800 levels, and the next support exists only at 31400, which is a support of 50 days SMA.”

Emami stock rises by 2.74% on the NSE trading at ₹526.75 after the company announced its foray into juice category with ‘AloFrut’ through strategic investment in Axiom Ayurveda Pvt Ltd (“Axiom”) and its subsidiaries/associates by acquiring 26% equity stake for an undisclosed amount.

Abu Dhabi-based IHC in pact to dispose of investment in Adani Green and Adani Energy. IHC holds more than a percent each in the two Adani group companies - Adani Green Energy (1.26 per cent) and Adani Energy Solutions (1.41 per cent). It bought the stakes in September last year.

Air India today announced its partnership with celebrated fashion designer Manish Malhotra to design new uniforms for over 10,000 Air India employees on the frontline, including cabin crew, cockpit crew, ground and security staff.

This is a further step in the manifestation of Air India’s new global brand identity as part of its ongoing modernisation programme. Air India expects to commence rolling out the new look for its uniformed employees by the end of 2023.

Scheduled commercial banks’ (SCBs) non-food credit growth declined to 15.0 per cent year-on-year (y-o-y) in August 2023 as compared with 16.0 per cent a year ago due to deceleration in credit demand from industry and personal loans. According to RBI’s data on sectoral deployment of bank credit, credit to industry registered a lower growth of 6.1 per cent y-o-y in August 2023 as compared with 11.4 per cent in August 2022.

Multi Commodity Exchange of India (MCX) on Friday said the country’s markets regulator has asked the company to put on hold the proposed go-live of its new commodity derivatives platform planned for next week.

The Securities and Exchange Board of India (SEBI) will discuss the commodity platform in its technical advisory committee meeting to be held shortly, MCX said in a statement.

The exchange will continue to conduct mock tests on the platform till it gets further directions from SEBI, it added.

Kudremukh Iron Ore Company suspends its operations at the Mangalore pellet plant due to the non-availability of iron-ore fines and other maintenance activities.

Major gainers: NTPC (3.61%); Hindalco (2.70%); UPL (1.71%); Coal India (1.33%); ONGC (1.20%)

Major losers: Infosys (-1.17%); Asian Paints (-0.91%); Wipro (-0.65%); HCL Tech (-0.62%); Axis Bank (-0.59%)

Taking cues from global trends, the Indian benchmark indices, Sensex and Nifty, opened on a positive note this Friday. At 9:17 a.m., the BSE Sensex rose by 179.96 points to reach 65,688.28, while the NSE Nifty advanced by 69.85 points, reaching 19,593.40. Among the Nifty components, Hindalco, NTPC, Tata Steel, UPL, and L&T were among the top gainers, while TechMahindra, PowerGrid, Infosys, TCS, and Asian Paints lagged behind.

INDIAVIX, known as the fear indicator, rose 6.30 per cent during the September month series, increasing from 12.06 to 12.82 levels, giving major discomfort to the bulls.

According to Ashwin Ramani, Derivatives Analyst, SAMCO Securities, said: “the Foreign Portfolio Investors’ Long Short ratio rose from 50.50 per cent on August 31 to 66.38 per cent on September 13 before falling to 30.53 per cent on the last day of September expiry, indicating that FPIs now hold more short positions relative to long positions in Index Futures. The Put-Call Ratio, a sentiment indicator, too, moved up from 0.70 on August 31 to 1.54 on September 12 before strong call writing at higher levels took the ratio down to 0.70 on September 28.”

On the Options front in the October monthly expiry, the 19,500 Strike put option has the highest open interest with 52,02,000 contracts, followed by the 19,000 Strike put option with 34,46,150 contracts. While on the call side, the 20,000 call has the highest open interest with 23,14,100 contracts, followed by the 20,500 Call strike with 20,27,100 contracts, he added.

Siddhartha Khemka, Head - Retail Research, Motilal Oswal Financial Services, said, going ahead, the weakness in the market is likely to extend till the worry over the elevated oil prices and higher interest rates remains, posing a risk to the earnings growth trajectory.

Greenlam Industries has informed the exchange about the commencement of commercial production of laminate sheets/boards at Naidupeta, Andhra Pradesh.

Scrabble Entertainment DMCC, a step down wholly owned subsidiary of UFO Moviez India Ltd, has acquired balance 51% of the share capital of its Associate, Scrabble Audio Visual Equipment Trading LLC – Dubai, U.A.E. from an existing shareholder.

AVRO India Limited has announced onboarding Bollywood actor Sonu Sood as its brand association.

Godrej Properties has acquired a 109-acre land parcel in Nagpur, on which the company plans to plot residential units with an estimated saleable area of 2.2 million square feet.

Read more.

Omaxe Limited : Company informed that continuation of earlier acquired project and does not have any new or significant impact on the Company or its business operations. regarding Rail Land Development Authority” (RLDA) vide its RFP Notice No. RLDA/RFP/CD-20/CRD09 of 2022 dated 28.03.2022 invited bids for leasing of Railway Land for Development and Redevelopment of Railway Colony at Railway Colony No. 13, Civil Lines, Near Fountain Chowk, Ludhiana.

Tata Communications: U.S.-based Kaleyra expects its $100 million acquisition by the Tata Group company to be completed by Oct. 5

B-Right Realestate Limited : Jaliyan Developers a step-down subsidiary of B-Right Realestate Limited (“The Company”) is developing a Slum Rehabiliation (SRA) project at Kurar Village, Malad East. The Firm has entered into definitive agreement for acquisition of additional land / development rights of adjoining projects. Now, the total layout of the project comes to approx. 13500 sq. mtrs or 3.50 acres. The SRA project entails rehabilitation of about 850 slum houses with population of approx. 4000 people. The project now translates into development potential of 1.50 million sq. ft with saleable area of 1 million sq. ft. The Gross Development Value of the project will be approx. Rs. 1000 crore. The project is expected to start in next 1 year and will be completed in next 7 years.

Godrej Agrovet Limited : The company entered into a strategic partnership agreement with Sime Darby Plantation Berhad to secure supplies of oil palm seeds and later set up a state-of-the-art seed production unit in India

Pidilite Industries: Subsidiary Pidilite Ventures acquired up to a 20% stake in toymaker Imagimake Play Solutions for Rs 20 crore

Sun Pharmaceuticals: The drugmaker signed a letter of intent for acquiring the remaining 25% stake in the Mexican subsidiary Sun Pharma de México, S.A. de C.V.

Raj Oil Mills Limited : Company has launched a new product of Sesame Oil in the brand name of “TILYUKT” which will cater mass market across India. Th e main target customers are Tier -1, Tier-II and lier-Ill cities. This will help to achieve the Top line and Bottom Line of the Company

Navin Fluorine: Radhesh Welling resigned as MD with effect from Dec. 15, citing personal reasons. Vishal Mafatlal will steer the operations of the company while the board approves the appointment of Sudhir Deo as an additional director.

Kajaria Ceramics Limited :Board informed that the modernisation of the manufacturing facility of the Company at Gailpur (Rajasthan) for ceramic tiles has been completed and commenced the commercial production w.e.f. September 28, 2023.Consequent upon the said modernisation, the annual production capacity of the said manufacturing facility for ceramic tiles has also been increased to 31.32 MSM from 29.40 MSM.

Despite positive global cues, domestic markets will likely open flat on Friday. Holiday mood to keep activity low said analysts.

Gift Nifty at 19640 signals a positive opening, as Nifty October futures closed at 19,524.

INDIAVIX, known as the fear indicator, rose 6.30 per cent during the September month series, increasing from 12.06 to 12.82 levels, giving major discomfort to the bulls. Read more

Trading holiday in the currency segment of the exchanges on Friday has been revoked.

The Exchange notified that September 29 will be a trading day and shall remain operational as per normal market timings.

Tamilnad Mercantile Bank, Happiest Minds, Adani Green, Adani Energy Solutions, Saregama, Cholamandalam Investment, Godrej Properties, Welspun, Alphalogic Techies, YES Bank, Uno Minda, Bajaj Finserv, Dr Reddy’s Lab, NLC India, Emami, ICRA, Godrej Agrovet, Prism Johnson, NLC India, SBI Life

Rating agency ICRA has announced that it has applied for an ESG Rating Provider (ERP) license under its wholly-owned subsidiary, ICRA ESG Ratings Ltd.

ICRA ESG Ratings Ltd (proposed a change of name from Pragati Development Consulting Services Ltd, subject to the approval of the statutory authority) proposes to provide ESG Ratings and scores, under the SEBI’s Credit Rating Agencies Regulations, amended and notified in July 2023, according to a statement.

The India Meteorological Department (IMD) has said a cyclonic circulation lies over Myanmar and adjoining East-Central Bay of Bengal, which is expected to deepen into a low-pressure area, the last of the 2023 monsoon, over East-Central and adjoining North-East Bay of Bengal by Friday. Thereafter, it is likely to concentrate into being ‘well-marked,’ usually the first stage of intensification, during the weekend and move towards North Odisha and adjoining West Bengal coasts.

Leading music label Saregama on Thursday said it is acquiring a majority stake in digital entertainment start-up Pocket Aces in an all-cash deal. The company said it will acquire 51.8 per cent share for about Rs 174 crore. It added that it will acquire another 41 per cent stake in the next 15 months “at pre-agreed multiples.”

Emami Limited has picked up 26 per cent stake in Axiom Ayurveda and its subisidiaries. This marks the FMCG company’s foray in the juice category under the brand, AloFrut. The company did not reveal the commercials of the investment.

We believe AB Capital is poised to double profits in the next 3 years, capitalising on wider network and higher cross-sells. NBFC can gain from MSME lending opportunity as it expands branches, leverages low CoF and shifts to lower ticket loans.

Post-merger entity Shriram Finance is a multi-product play having synergistic growth spurt at disposal. Its stronger AUM growth of 4 per cent qoq/18.6 per cent yoy in Q1-FY24 surprised many. In our view, the growth momentum could likely continue through the year aided by: residual benefits of value growth in used CV/PV financing (50/19 per cent of AUM); firm replacement demand for used Pvs; phased roll-out of MSME Loans (10 per cent of AUM) in vehicle financing branches; distribution of Gold Loans (3 per cent of AUM) taken to substantial number of vehicle financing branches, and sustained momentum in Personal Loans (4 per cent of AUM).

BSE has said that effective from September 29, the equity shares of ARCL Organics Ltd are listed and admitted to dealings on the Exchange in the list of ‘‘T’‘ Group Securities

TVS Supply Chain Solutions has entered into a definitive agreement for sale of 4.5 per cent equity stake in TVS Industrial and Logistics Parks Private Limited, an associate company of the Company. . The completion of the transaction is subject to certain consents and other formalities. Lingotto Opportunity Fund LLP (LOF will buy the stake for Rs 51.30 crore.

Our channel checks suggest that pan-India average cement prices increased to Rs379/bag (+Rs7/bag MoM) in Sept-23. The uptick was mainly because of the sharp rise in prices in East (+Rs45-50/bag). South witnessed a dip in prices, mainly in Tamil Nadu and Kerala, in Sep-23. Average prices in Q2FY24 have likely remained flat QoQ (up 1% YoY). Industry volumes have likely declined in low teens MoM in Sept-23, owing to heavy rains and a rise in prices. However, we expect the industry to register low double-digit YoY volume growth in Q2FY24. Industry participants are attempting for price hike of Rs70-80/bag (in South and Maharashtra) and Rs5-20/bag in other regions in Oct-23. The absorption of the same will be a key monitorable and may drive consensus earnings upgrade.

Abu Dhabi’s International Holding Company (IHC) said it has signed a definitive agreement to sell its holdings in two Adani Group companies — Adani Green Energy and Adani Transmission (now renamed Adani Energy Solutions) — as an overall portfolio rebalancing strategy. The asset holding company said it has signed the agreement with a buyer, but did not disclose its identity.

The USFDA conducted a Good Manufacturing Practices Inspection of Piramal Pharma Limited’s Bethlehem facility from September 18 to September 27. On conclusion of the inspection, a Form-483 was issued with two observations. Both observations relate to system improvement only, and none are related to data integrity. The Company is preparing a detailed response to said observations, which will be submitted to the US FDA within stipulated timelines, it said in a notice to the stock exchanges

Welspun India informed the exchanges that the Registrar of Companies, Ahmedabad, has approved change of company name from “Welspun India Limited” to “Welspun Living Limited” w.e.f September 27.

Cholamandalam Investment and Finance Company Limited has launched qualified institutions placement of equity shares of face value ₹2 each and compulsorily convertible debentures of face value of ₹ 100,000 each. The board of directors will meet on October 4 to inter alia consider and approve the issue price. The floor price has been fixed as ₹1200.51 a share.

Veteran entrepreneur and Happiest Minds Technologies Executive Chairman Ashok Soota has sold 1.11 per cent stake in the IT company, the company said in a statement on Thursday. “This transaction was primarily done to fund the capital requirements of SKAN, the not-for-profit medical research firm floated by him and enhance the share capital of Happiest Health,” Soota said.

29/09/2023: South Korea @ Market Holiday

29/09/2023 To 08/10/2023: China @ Market Holiday

29/09/2023: Taiwan @ Market Holiday

02/10/2023: India and Hong Kong @ Market Holiday

07:00 CHINA Manufacturing PMI (Expected: 50.2 versus Previous: 49.7)

07:00 CHINA Non-Manufacturing PMI (Expected: 51.5 versus Previous: 51.0)

Economic Calendar - 01.10.2023

TENT India September Auto Sales

07:15 CHINA Caixin Manufacturing PMI (Expected: 51.1 versus Previous: 51.0)

07:15 CHINA Caixin Services PMI (Expected: 52.0 versus Previous: 51.8)

Carnival Corporation (Pre market) (Sector- Tourism)

The development comes a week after the Thoothukudi-based Bank was in the news for wrong credit of ₹,9000 crore into a taxi driver’s account

Calendar year 2023 has seen a sharp increase in sell-downs by promoters and PE/VC investors compared to the previous years.

Promoters have offloaded almost ₹87,000 crore (~$10 billion) of equities this year, the highest in the past six years and 2.2x that in the previous year, a report by Kotak Institutional Equities observed. Adani Group promoters sold ₹37,000 crore, accounting for almost 40 per cent of overall promoter selling this year.

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

The short-term outlook is bearish for the stock of Ashok Leyland. The stock fell over 2 per cent on Thursday, breaking below the key support at ₹176. This level of ₹176 will now act as a good support-turned-resistance and will cap the upside. Read more

Gold prices on Friday braced for their biggest monthly fall since February, hovering around levels at over six-month lows on the prospects of higher-for-longer U.S. interest rates ahead of a widely watched U.S. inflation print due later in the day.

FUNDAMENTALS

* Spot gold was up 0.1% at $1,866.41 per ounce by 0020 GMT, set for a nearly 4% decline this month and its second consecutive quarterly drop. U.S. gold futures rose 0.3% to $1,883.50.

* Spot silver firmed 0.2% to $22.65 per ounce - Reuters

Oil prices fell in early trade on Friday after a recent rally, as profit-taking and expectations of supply increases by Russia and Saudi Arabia outweighed forecasts of positive demand from China during its Golden Week holiday.

Brent November futures which expire on Friday were down 21 cents to $95.17 per barrel. Brent December futures lost 10 cents to trade at $93.00 per barrel at 0055 GMT. U.S. West Texas Intermediate crude (WTI) fell 8 cents to $91.63 per barrel.

Oil prices had eased about 1% on Thursday, as traders took profits after prices soared to 10-month highs, and some worried that high interest rates may weigh on oil demand. - Reuters

Asian shares traded cautiously on Friday despite crude oil prices dipped following a recent rally. Profit-taking and the anticipation of supply increases from Russia and Saudi Arabia overshadowed expectations of robust demand from China during its Golden Week holiday.

The Japanese Nikkei 225 experienced a slight decline, dropping by 0.26% or 82.58 points to close at 31,789.94, while the Topix also saw a modest decrease of 0.49%, or 11.50 points, ending the day at 2,334.01. In contrast, the Kospi managed to eke out a marginal gain of 0.085%, adding 2.10 points to reach 2,465.07. Meanwhile, the S&P/ASX 100 exhibited some positive momentum, rising by 0.24% or 14.30 points to settle at 5,919.50.

Earlier, the Dow Jones Industrial Average increased by 0.35%, or 116.07 points, reaching 33,666.34, while the S&P 500 gained 0.59%, or 25.19 points, closing at 4,299.70, and the Nasdaq Composite added 0.83%, or 108.43 points, to reach 13,201.28.

Furthermore, investors remained vigilant about developments in Washington, where the possibility of a government shutdown hung in the balance as U.S. lawmakers deliberated on potential solutions.

In the commodities market, spot gold experienced a 0.4% decline, reaching $1,866.58 per ounce, while U.S. gold futures fell 0.37% to $1,865.40 per ounce.

In a session marked by investors carefully analyzing the latest economic data and the temporary halt in the surge of Treasury yields before a crucial inflation report, Wall Street’s primary indices posted gains.

The stock market had been grappling with the implications of the Federal Reserve’s recent hawkish stance on long-term interest rates, prompting a pullback.

The Dow Jones Industrial Average advanced by 116.07 points, equivalent to a 0.35% increase, reaching 33,666.34. Meanwhile, the S&P 500 demonstrated strength with a 0.59% rise, or 25.19 points, closing at 4,299.70. The Nasdaq Composite outperformed, registering a gain of 108.43 points, or 0.83%, concluding at 13,201.28.

Additionally, investors kept a watchful eye on developments in Washington, where the fate of a government shutdown hung in the balance as U.S. lawmakers deliberated on potential resolutions.